Mr. Abdullah bin Sulaiman Al Rajhi, Chairman of Al Rajhi Bank's Board of Directors, announced that the Bank achieved a profit of 8,126 SAR million in 2016, compared to the 7,130 SAR million of the previous year, with an increase of 14%.
During 2016, total operating income grew by 11% due to growth in banking service fees and net special commission income. Al Rajhi Bank continued strengthening its credit provisions in line with banks policy, and increased expense provisions by 13% compared to last year.
The Chairman added that the financial results of 2016 showed a shareholders' equity growth of 52 SAR billion with an increase of 11%. Also total assets grew by 340 SAR billion with an increase of 8%; while financing assets of the bank were 225SAR billion which is an increase of 7%.
Mr. Al Rajhi explained that deposits base increased to 273SAR billion, an increase of 6%, as well as rate of return on assets and shareholders' equity 2.5% and 16.5% respectively. Lastly the dividend yield during the year became 5 SAR.
The Chairman expressed his appreciation to the bank's customers for their continuous loyalty and trust and to the bank's staff for their considerable efforts in achieving such outstanding results.
Mr. Al Rajhi stated that during 2016, the bank executed several social responsibility programs including voluntary work. With more than 600 employees of various career levels participating in 42 programs including 19 voluntary programs that are over 1650 hours. The Chairman stressed that such dedication from the bank is aligned with the 2030 Saudi Vision, which included a goal to increase volunteering across all sectors, especially the non-profit sector.
During 2016, Al Rajhi Bank continued to provide high-level services to customers through its vast network of branches across the Kingdom – the largest in the region. 15 branches were added to its current network of 554 branches; two "Silah", self-servicing centers, were added making them now 15 centers; 354 ATM’s were also added increasing the machines to 4,475 – the largest ATM network in the kingdom. Moreover, 15,000 points of sale (POS), were installed and as of today, there are 62,000 POS systems across the Kingdom, an increase of 21% compared to 2015, bringing the Bank to the forefront in terms of POS machines installed across the Kingdom. Also in 2016, 31 remittance centers were opened, bringing the total number of remittance centers to 217 centers. Not to forget the relaunch of Al Rajhi Bank’s electronic channels (online banking and mobile app)and the opening of the banks e-branch – a first of its kind for the Bank and in the Kingdom.
Other new services provided by the bank last year include the launch of the Remittance Card which provides customers with more and better services, the self-service machines “ASRAA”, launched in over 100 locations across the Kingdom in airports and malls and a new service which allows customers to print ATM cards through fingerprint access.