5,752 Million Riyals in profit for Al Rajhi Bank in the first half of the year 2019 before Zakat

31 July 2019

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Al Rajhi Bank Chairman of the Board of Directors, Mr. Abdullah bin Sulaiman Al Rajhi announced that the bank made profits in the second quarter of the current year 2019 before Zakat, that have reached 2,867 Million Riyal, as opposed to last year’s second quarter, which amounted to 2,569 Million Riyal, rounding up to an increase of 11.6%. The bank also made profits after Zakat in the second quarter of the current year 2019 that have reached 2,580 Million Riyal, as opposed to last year’s second quarter, which amounted to 2,474 Million Riyal, with an increase of 4.3%.

Thus, the total profit for the first six months of the current year before Zakat rounds up to 5,752 Million Riyal compared to 4,951 Million Riyal for the first half of 2018 with an increase of 16%. The total profit of the first 6 months of the current year after Zakat has reached 5,177 Million Riyal as opposed to 4,781 Million Riyal for the first half of the year 2018, with an increase that has reached 8.3%.

The total operating income for the first six months has increased by 12.7% as opposed to the first half of the year 2018, a result of a growth in the net financing and investment income by 14.5%.

He added that shareholders' equity reached 50 Billion Riyal at the end of the first six months. Total assets increased to 369 Billion Riyal by an increase of 6.3%, while total assets of the bank amounted to 238 Billion Riyal.

Mr. Al Rajhi clarified that customer balances reached 300 Billion Riyal as at the end of the first six months, while the average return of assets and shareholders’ equity amounted to 3.14% and 23.31% respectively, as earnings per share during the same period after Zakat stood at 2.07 Riyal.

The Chairman of the Board of Directors also mentioned that starting from the quarter ending on 30 June 2019, Zakat will be due at the end of each fiscal period and recognized in the income statement with the obligation to be presented in the consolidated balance sheet in accordance with International Financial Reporting Standards (IFRS) as well as other instructions and standards approved by the Saudi Organization for Certified Public Accountants (SOCPA).

The Chairman of the Board of Directors thanked the bank’s customers for their ongoing loyalty and trust in the bank’s employees, whose efforts helped the bank achieve these exceptional results, hinting at the bank’s continued excellence and leadership in many fields, and particularly in digital banking.

Al Rajhi pointed at the important and significant community partnership launched in this second quarter, during which Al Rajhi Bank offered the Jood Housing Platform 40 Million Riyal to support the purchase of 222 ready housing units for families in need, in cooperation with the Ministry of Housing.

Regarding Corporate Social Responsibility and volunteer work, Mr. Abdullah praised volunteering employees for their effort and continuous growing number. Volunteer hours, in the first half of the current year, have reached a total of 8815 hours with a total of 1763 volunteers including male and female employees, who participated in a variety of programs implemented in numerous regions and governorates around the Kingdom of Saudi Arabia.

It is important to mention that on 21/7/2019, Al Rajhi Bank announced the approval of the Board of Directors to recommend a cash dividend of 3,750 Million Riyal to the shareholders of the Bank for the first half of the current fiscal year 2019, thus one share amounts to 1.5 Riyal representing 15% of the nominal share price.

It was decided that the right of distribution of cash dividends to the shareholders would take place at the end of the first day of trading on 24/07/2019 and for shareholders registered with the Securities Depository Center (Edaa), it would take place at the end of the second day of trading following the due date, and the date of distribution taking place on 1/8/2019.

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