Al Rajhi Bank announced achieving a net profit of 3180 million Saudi Riyals for the first half of 2007 in comparison with 3531 million Saudi Riyals achieved in the previous year for the same time period, decreasing the net profit by 9.9%.
During the announcement, Mr. Abdullah Suleiman Al Rajhi, CEO, clarified that the noticeable decrease is a result of the continuous reduction in the revenue of activities of the Saudi stock market. At the same time, he reassured that the Bank had succeeded in developing its investment and banking resources.
The 15.1% increase in Return on Investments empowered the growth of Al Rajhi Bank as it reached a total of 3728 million Saudi Riyals comparing to 3239 million Saudi Riyals previously. In addition, the Retail Banking net income showed a 42.2% decrease reaching 786 million riyals in comparison with 1359 million riyals last year, while the total income for the first half of 2007 was 4514 million riyals, 1.8% less than the previous year which was 4598 million riyals.
The profit in the second quarter of 2007 alone amounted to 1610 million riyals, 9.4% less than the second quarter in 2006 where the income was 1776 million riyals within the same time frame. Meanwhile, the profit from the second quarter of 2007 increased 2.6% in comparison with the first quarter of the same year.
According to the financial statement, Al Rajhi declared that the entire shareholder's rights, net assets, and shareholder's balance increased to 22.4 billion riyals, 124.7 billion riyals, and 90.5 billion Riyals respectively, while asset returns increased by 5.5% and shareholder's revenue increased by 30%. Share's income was at 2.36 Saudi Riyals for the first quarter of 2007 compared to 2.62 Saudi Riyals previously. Al Rajhi Bank's continuous success demonstrates its strengths and sustains its financial position.
The CEO announced the Bank's decision to disburse 2025 million Riyals as profit on shareholders' revenues for the first half of the current year which is 1.50 riyals for each share after deducting Zakat fees in accordance with the decision agreed upon by the management.
The CEO added that the second quarter of 2007 continued to experience numerous developments for the Bank, as there are already 50 new branches up and running within the largest expansion plan witnessed by the banking sector, which plans to open 160 branches all over the Kingdom within 18 months only.
Alongside the colossal project, last month the Bank launched a new chain of retail branches under the name "Al Rajhi Link" which will be mini branches in prominent shopping centers offering all the same services.
Al Rajhi Bank won two new awards for its exceptional performance in financial retail services 2007 in the global "Asian Banker" magazine, as the Bank obtained an award for the best bank in retail banking in the Middle East, and best bank for the same in the Kingdom of Saudi Arabia.
.Al Rajhi Bank continues its efforts in developing its banking methods and services, such as Internet banking with the latest in technology and developing its human resources. The Bank has been recognized 3 times since the beginning of this year by universities and colleges for its efforts in training and allocating jobs for fresh graduates.