Al Rajhi Bank profits after Zakat in the year 2020

Mr. Abdullah bin Sulaiman Al Rajhi, Chairman of the Board of Directors of Al Rajhi Bank, announced that the bank achieved net profits after zakat for the year 2020, amounting to 10,596 million riyals, compared with profits of 10,159 million riyals for the previous year 2019 AD, with an increase of 4.3%.

Al Rajhi explained that the annual financial results for the period ending on 12/31/2020 AD compared to the annual financial period ending on 31/12/2019 showed that the total operating income amounted to 20,721 million riyals compared to 19,484 million riyals, marking an increase of 6.3%, while the net financing and investment income reached is 16,913 million riyals compared to 16,428 million riyals for the previous fiscal year, with an increase of 3%. Banking services revenues amounted to 2,660 million riyals compared to 1,987 million riyals in 2019, with an increase of 34%. Al Rajhi added that the bank, in support of its conservative financial policy and to avoid any potential effects of the Corona pandemic, has set aside financial allocations of more than 22% from the previous fiscal year, which reflected positively on the strength of the bank's financial position, as the coverage rate for non-performing loans reached more than 305%.

Al Rajhi stated that the bank continued to develop both investment and banking resources for the fourth quarter, as the total operating income amounted to 5,794 million riyals compared to 5,003 million riyals for the same quarter of the previous fiscal year, noting an increase of 15.8%; while the net financing and investment income reached 4,638 million riyals compared to 4,259 million riyals, with an increase of 9%. Banking services revenues amounted to 864 million riyals compared to 456 million riyals in 2019, nothing an increase of 89%, as a result of the increase in brokerage activities and trading in shares. The net profits after deducting Zakat for the fourth quarter amounted to 3,121 million riyals, compared to 2,318 million riyals for the same period last year 2019, with an increase of 35%.

Al Rajhi explained that shareholders' equity rose to 58 billion riyals against 51 billion riyals, with an increase of 13.5%, and total assets rose to 469 billion riyals compared to 384 billion riyals, noting an increase of 22.1%, while the bank's financing assets amounted to 316 billion riyals at an increase of 26.4%. Customers' assets amounted to 383 billion riyals, compared to 312 billion riyals, at an increase of 22.5%. The bank achieved a return on average in assets amounting to 2.6%, while the return on average in shareholders' equity was at 20%, and the profit per share reached 4.24 riyals.

Al Rajhi said that the bank maintained the credit rating granted by the largest international rating organizations, as it was rated A1 on Moody's and A- on Fitch rating scales. Al Rajhi reviewed some of the bank's most important achievements during the past year, as it successfully secured, formed, and distributed all technologies required to transform the bank into a business continuity model in the event of emergencies through the application of precautionary and preventive measures in all its buildings and branches, in an effort to protect its employees and customers and support government efforts in this field. The bank also contributed in all initiatives adopted by the government of the Custodian of the Two Holy Mosques to mitigate the damage to individuals and institutions, especially small and medium enterprises.

In terms of social responsibility, the past year witnessed the opening and operation of the Center of Excellence for Autism, to which the bank contributed 44 million riyals, and managed the delivery of 222 housing units to families in need, in the amount of 40 million riyals, which was completed through the Eskan platform, in addition to supporting the programs adopted by the Ministry of Health and Ministry of Human Resources and Social Development to eradicate the Corona pandemic, with an amount of 49,614 million riyals, distributed across three main initiatives.

Mr. Al Rajhi added that the bank continued to implement initiatives in line with the Kingdom's Vision 2030, as women’s employment rate increased and now makes up 16% of the bank’s staff, small and medium enterprises received more support resulting in the growth of the sector’s financing portfolio by 49%, and the expansion of real estate financing continued to achieve a higher rate of local home owners, resulting in the real estate financing portfolio increasing by 92%.

In terms of social responsibility and volunteering, the bank exceeded its target during the year 2020, as the number of male and female volunteers reached a total of 10,954 volunteers and 50,890 volunteer hours over the course of five years (2016-2020), while larger goals were set for the next five years.

The Chairman of the Board of Directors thanked customers for their ongoing trust in the bank’s products and services and for their positive interactivity with the digital banking developments included in the strategy of the "Bank of the Future", adopted and remarkably implemented by the bank. Mr. Al Rajhi also thanked employees for their continuous efforts in attaining these results.