Al Rajhi Bank Record SR14,746mln Net Income, in 2021 -Abdullah Al Rajhi Announces

Al Rajhi Bank achieved a net income amounting to SR14,746 million in 2021, compared to a net income of SR10,596 million, in the previous Year 2020, an increase of 39%, Abdullah bin Sulaiman Al Rajhi, Chairman of the Board of Directors of Al Rajhi Bank, announced.

Al Rajhi explained that financial results for the period ending on 31/12/2021 compared to the period ending on 31/12/2020 showed that the total operating income amounted to SR25,716 million, compared to SR20,721 million, an increase of 24%. Meanwhile, the net financing and investment income amounted to SR20,392 million, compared to the previous year of SR16,913 million, an increase of 21%. Additionally, fees from banking services amounted to SR3,933 million, compared to SR2,660 million, an increase of 48%.

Al Rajhi added that the bank, through its prudent risk management, have increased the provisions against the financing portfolio by more than 23% compared to the previous year, which reflected positively on the strength of the bank’s financial position, as the non-performing loans coverage ratio reached to more than 306%.

Al Rajhi stated the bank continued to develop its investment and banking resources alike, as the total operating income for the 4th quarter amounted to SR6,855 million, compared to SR5,794 million, during the same quarter of the previous year, an increase of 18%.

The net financing and investment income amounted to SR5,355 million, comparing to SR4,638 million, an increase of 15%, and fees from banking services amounted to SR 1,114 million, an increase of 29% compared to SR 864 million in the 4th quarter of 2020 as a result of the rise in brokerage and payments activities.

The net income after zakat for the fourth quarter amounted to SR4,012 million, compared to SR3,121 million for the same period last year, an increase of 29%.

Al Rajhi explained that shareholders’ equity rose to SR67 billion, compared to SR58 billion last year, an increase of 16%. Moreover, total assets rose to SR624 billion, compared to SR469 billion last year, an increase of 33%.

The bank’s financing portfolio amounted to SR453 million, an increase of 43% compared to last year of SR316 billion.

Customer deposits amounted to SR512 billion, compared to SR383 billion last year, showing an increase of 34%.

The bank achieved a return on average assets of 2.7%, while the return on average shareholders’ equity was 23.9%, and earnings per share amounted to SR5.9.

Al Rajhi highlighted some of the bank’s most important achievements throughout the year, as the bank won 12 local and international awards in 2021, including 7 awards in the field of Housing and Real Estate Financing during the first and 3rd quarters, confirming the bank’s leadership in achieving the goals of Vision 2030, in the field of Housing.

In addition, four awards of excellence from Global Banking & Finance during the second quarter, and the first place award in Investor Relations as part of the Saudi Capital Market Awards.

In terms of social responsibility and volunteering, the bank exceeded the volunteer target during the Year 2021, as the number of male and female volunteers reached 3,663 and the number of volunteering hours reached 18,315.

2021 witnessed the launch of Al Rajhi Bank’s new identity under the name “Unbank the Bank” to go beyond being a bank focused on providing banking products to a financial ecosystem, led by its competent employees as financial advisors who design innovative and smart financial solutions.

The new identity will reflect the bank’s new strategy to become “unthinkable”, allowing it to build the best financial solutions and technologies for ambitious and innovative customers.