Record Quarterly Profit for Al-Rajhi Bank

Al Rajhi Bank announced that it made a net profit of SR3.79 billion in Q3-2021, up 42.74% from SR2.66 billion in the same period last year and 5.24% from SR3.61 billion, in the Q2 of this year.

Al-Rajhi Bank’s profits in Q3-2021 were the highest in the bank’s history, but they came close to meeting the average expectations of four local research firms, which were SR3.78 billion, while falling short of Riyad Capital’s expectations of SR4.11 billion.

Except in Q4-2018, when an agreement was signed with the General Authority for Zakat and Income to settle zakat claims for the previous fiscal years, until the end of the fiscal Year 2017, provided that the settlement includes the fiscal Year 2018, the bank has not made losses in 75 quarters, or since the beginning of Q1-2003.

Al-Rajhi Bank obtained a definitive settlement at that time in exchange for a payment of SR5.405 billion, resulting in a change in shareholders’ equity equal to the settlement amount.

Meanwhile, the bank’s total operational profit in Q3-2021 was SR6.58 billion, the largest in the bank’s history.

The bank also earned SR5.22 billion in net income from investments and financing, which is the largest in its history.

The bank ascribed the increase in earnings in the third quarter of this year to a 27.7% increase in total operating income, owing to increases in net finance and investment income, banking services fees, foreign currency conversion income, and income from other operations.

The bank’s share price fell 2.53 % to SR138.4 after the results were announced, compared to the close of SR142 on Thursday, October 21, 2021, and the price at which the share closed in the last session was the highest closing since February 25, 2006, and the bank had achieved gains. It was 92.9% from the beginning of the year to the end of last Thursday.