Al Rajhi Bank achieves the highest net profit among Saudi banks with an increase of 9% compared to last year

17 January 2012

Mr. Abdullah Suleiman Al Rajhi, the Chief Executive Officer (CEO)& Managing Director (MD) of Al Rajhi Bank, announced that the Bank achieved a net profit of SR 7,378 million (9% increase compared to SR 6,771 million in 2010). Total operating income reached SR 12,502 million (7.2% increase compared to SR 11,661 million in 2010). Financing net income reached SR 9,070 million, while the revenues of banking services came to SR 2,298 million (41% increase compared to SR 1,634 million in 2010).

Al Rajhi stated that the Bank continued to develop both its investment and banking resources with the total operating income of the 4th quarter increasing by 16% (SR 3,323 million compared to SR 2,864 million in 4th quarter in 2010). The 4th quarter’s revenues for financing and investment increased by 3.4% (SR 2,294 million compared to SR 2,219 million in 4th quarter in 2010). The revenues of banking services increased by 46% (SR 605 million in the 4th quarter compared to SR 415 in 4thquarter of 2010). The net profits increased by 14% (SR 1,899 million compared to the SR 1,668 million in 4th quarter 2010). The CEO & MD added that shareholders’ equity increased by 8.3% to reach SR 33 billion (compared to SR 30 billion in 2010). Total assets are at SR 221 billion (an increase of 20% compared to SR 185 billion in 2010). The Bank’s financing assets also increased by 17% (SR 140 billion) and customers’ accounts went up 21% (SR 173 billion compared to SR 143 billion in 2010).The Bank achieved an increase of 3.6% in the revenue of assets’ rate while the revenue of shareholders’ equity rate increased by 23.4%. The profit per share increased to SR 4.92.

During the last year and with the Bank’s continued efficient performance in Credit Risk Management, the percentage of coverage ratio representing an increase of 9.5%, achieving 149% for this financial year (compared to 136% in 2010).

Mr. Suleiman Al Rajhi declared that the Bank maintained its distinguished operational effectiveness, obtaining a AA- credit classification from the international classification organization Capital Intelligence, which is a higher classification than last year. The Bank also maintained the credit classification given to it by the most prestigious international organizations (A1, A+, A+ Moody’s, S&P, Fitch).

The CEO & MD also stated that the Bank is determined to maintain its prominent financial results, to give its shareholders profitable revenues, and to offer an excellent service to its customers through the large branch network it owns all across KSA, Malaysia, Kuwait and Jordan. The Bank owns 470 branches in KSA, 23 branches in Malaysia, 1 branch in Kuwait and 2 branches in Jordan (a total of 496 branches). In addition, it has an advanced network in excess of 3,000 ATMs.

Al Rajhi stated that despite the challenges currently faced by the banking and financial sector, the Bank succeeded to maintain its leadership among the Saudi banks when it comes to profit results. This fact helped it to also maintain its consistency in terms of achieving considerable and constant profits to the bank shareholders. The Bank’s Board of Directors, in its ordinary General Assembly meeting dated 17/1/2012, recommended the distribution of SR 3,000 million as dividends to its shareholders for the second half of the financial year 2011. The dividends will be SR 2 per share after Zakat deductions. As a result, the total dividends during the financial year 2011 are SR 4,875 million (SR 3.25 per share considering SR 1.25 per share for the first half of the financial year 2011). All shareholders registered at the bank at the end of the trading day of the ordinary General Assembly meeting, which is intended to be held during the 1st quarter of the current year (Allah willing) will be entitled of the declared dividends. Mr. Suleiman Al Rajhi concluded his speech by extending his appreciation on behalf of the Board members to the Bank’s customers for their loyalty and to employees for their efforts in helping of achieving these results.

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