ALRAJHI TAKAFUL reports profit decline of 51% to SR22.4 mln in Q2

The net profit after zakat and tax for Al-Jouf Agricultural Development Co. declined during the second quarter to SR22.4 million, compared to SR46 million in the same quarter of last year, at a rate of 51%.

This came after Wednesday’s announcement of the preliminary financial results for the period ending 30.06.2022 (6 Months).

The net profit after zakat and tax during the current period amounted to SR63 million, compared to SR114 million in the same period last year, down 45%.

Profits per share in the current period reached SR1.45, compared to SR2.5 in the same period last year.

The Net Profit before Zakat has decreased by SR 23,282 thousand (50.97%) primarily due to the increase in net claims incurred by SAR 8,533 thousand (2.02%) , policy acquisition costs by SAR 8,196 thousand (17.24%) , allowance for doubtful debts by SAR 7,823 thousand (386.13%) and other underwriting expenses by SAR 9,377 thousand (4,262 %).

The Net Profit before Zakat has decreased by SR 18,357 thousand (45.05%) primarily due to the increase in allowance for doubtful debts by SAR 23,394 thousand. This is partly offset by decrease in policy acquisition cost by SAR 14,504 thousand (20.65%).

The Net Profit before Zakat has decreased by SR 51,037 thousand (44.70%) primarily due to the the increase in net claims incurred by SAR 53,566 thousand (6.61%) and increase in policy acquisition costs by SAR 39,239 thousand (45.23%) . This is partly offset by increase in net contributions earned y SAR 23,041 thousand (2.03%), and decrease in general and administration expense by SAR 5,177 thousand (4.04%) respectively.