Al-Rajhi Bank regains SR535 mln of provisions for corporate ‎loans

Provisions for credit losses set aside by Al Rajhi Bank for non-performing loans during the first quarter of this year decreased to 358.8 million riyals, a rate of 38%, compared to provisions for the same quarter of the previous year, which were 578.3 million riyals, which supported profits by about 220 million riyals.

Provisions decreased during the first quarter of 2023, despite the increase in the provisions set aside by Al-Rajhi Bank for the individual sector at the end of the first quarter to 888.1 million riyals, by 160.3% compared to what was set aside in the first quarter of last year, which amounted to 341.2 million riyals.

According to the financial statements of Al-Rajhi Bank, which are published on the financial market website “Tadawul”, the bank recovered 534.8 million riyals of provisions for the corporate sector, during the quarter ending on March 31, 2023, compared to provisions amounting to 225.1 million riyals that were set aside in the same quarter of the previous year, while Allocations for the treasury sector decreased to 5.5 million riyals, by 34.3%, from provisions amounting to 5.5 million riyals in the first quarter of 2022.

On the other hand, the bank wrote off about 708.8 million riyals of non-performing loans during the first quarter of 2023, an increase of 2.5% over what was written off in the representative quarter of the previous year, which amounted to 691.8 million riyals.

Also, the combined balance of the provision for financing losses at Al-Rajhi Bank amounted to 8.08 billion riyals at the end of the first quarter of this year, and non-performing loans amounted to 3.5 billion riyals, bringing the percentage of coverage of non-performing loans to 231%.

On the other hand, the bank’s net loan portfolio increased to 577 billion riyals, at the end of the first quarter of this year, after it was 568.3 billion riyals at the end of last December, compared to 484.5 billion riyals recorded in the quarter ending on March 31, 2022. ,

It is noteworthy that Al-Rajhi Bank achieved 4.145 billion riyals in profits at the end of the first quarter of this year, a slight increase of 0.28% compared to the profits of the corresponding quarter of 2022, which were 4.134 billion riyals. According to the bank, the net income increased as a result of the decrease in total operating expenses, including the provision Credit losses by 8.01%. This is due to a decrease in other general and administrative expenses, offset by an increase in employee salaries and benefits and depreciation expenses, in addition to a decrease in the provision for credit losses from 578 million riyals to 359 million riyals, by 37.89%. ..

On the other hand, total operating income decreased by 2.53%, mainly due to a decrease in net financing and investment income and income from other operations. This was offset by an increase in net income from banking service fees and income from foreign currency exchange.