Mr. Suliman Azzabin, CEO of Al Rajhi Bank, announced that the bank achieved a net profit of SR 7,885 million in 2012 compared to the SR 7,378 million of the year 2011, which represent an increase of 7%. Mr. Suliman Azzabin clarified that the yearly financial results for the period ending 31/12/2012, compared to the yearly financial period ending 31/12/2011 showed that total operating income came up to SR 13,983 million in contrast to SR 12,502 million, an increase of 12%. The net finance income amounted to SR 9,501 million, while banking revenue totaled SR 3,086 million compared to the SR 2,298 million of 2011, pointing to an increase of 34%.
The CEO further explained that the bank continued to develop its investment and banking resources where total operating income for the 4th quarter reached SR 3,490 million in comparison to the SR 3,323 million of the same quarter for the previous financial year, an increase of 5%. Furthermore, the net income of financing and investment during the 4th quarter increased to SR 2,421 million from SR 2,271 of the same quarter for the previous financial year. This shows an increase of 7%. The banking services revenues rose 22% to achieve SR 738 million in the 4th quarter compared to the SR 605 million from the same period of the previous year; while the 4th quarter’s net profit amounted to SR 1,911 million.
Mr. Azzabin explained that shareholders’ equity reached SR 36 billion in comparison to SR 33 billion, pointing to a 9% increase. With regards to total assets, the Bank saw an increase of 21%, achieving SR 267 billion compared to the previous SR 221 billion. The value of the bank’s financing assets came up to SR 172 billion, which translates to a 23% increase. In addition, customer deposits reached SR 221 billion, a 24% increase from SR 178 billion. The bank also achieved a 3.23% return on average assets, while the return on average equity came up to 22.54%, with a SR 5.26 profit per share.
According to Azzabin, the bank maintained its excellence by continuing to operate efficiently. It received the credit rating of AA- from the international rating agency, Capital Intelligence, which is the highest to date. Further, it maintained its credit ratings of (A1, A+, A+), granted by the largest international rating organizations (Moody’s, S&S, Fitch) respectively.
Azzabin added that the bank would continue to provide outstanding financial results and returns to shareholders, and the highest level of services to its customers. In this endeavor, it utilizes a network of branches covering all parts of the Kingdom of Saudi Arabia, as well as Malaysia, Kuwait and the Kingdom of Jordan. With 467 branches across Saudi Arabia and 24 branches in Malaysia, one branch in Kuwait, and 3 branches in Jordan, the total number of branches the bank maintains are 495, in addition to this the bank also has a sophisticated network of around 3,297 ATMs.
The CEO indicated that despite the current challenges faced by the banking and financial sectors, the bank was able to maintain its profit leadership among the other Saudi banks. This helped stabilize the distribution of the bank’s lucrative and sustained dividends to shareholders. In its meeting held on 01/16/2013G, the Board of Directors recommended that the Ordinary General Assembly adopt the distribution of the SR 3,000 million in profit for the 2nd half of the financial year 2012 to shareholders at SR 2 per share after deductions payable to Zakat. Thus, the total distributed to shareholders amounted to SR 4,875 million at SR 3.25 a share added to the SR 1.25 per share of the 1st half of that same year. Profit distribution eligibility goes to shareholders registered in the bank’s record by the end of the trading day of the convening Ordinary General Assembly, the schedule of which will be announced later.
Mr. Azzabin concluded his statement by thanking, on behalf of the Board and management, the bank’s valued customers for their loyalty, and the employees for their considerable efforts in achieving these excellent results.