Mr. Abdullah bin Sulaiman Al Rajhi, the Chairman and CEO of Al Rajhi Bank, stated that the Bank achieved a net profit of SR 1,843 million in Q2 of 2011 compared to SR 1,700 million in Q1 of the same year, an increase of 8.41%. This was the result of the growth and diversity of the Bank’s investment and financial products, which allowed total operating income to reach SR 3,051 million , an increase of 4%, compared to SR 2,937 million for the previous quarter. There was also an increase in the net profit of loans (financing) that reached SR 2,174 million, while investment revenue went up 38% to SR 104 million. In addition, the revenue of banking services increased by almost 12.37%, which amounts to SR 545 million compared to SR485 million in the previous quarter.
In comparison to the same half of last year, net income increased to SR 3,543 million , a rise of 2.33%. The Bank also witnessed a total operating income increase of 3%, representing SR 5,987 million. Investment revenue increased by 102%, amounts to SR 179.4 million; while banking services revenue reached SR 1,030 million, an increase of 22%.
According to Al Rajhi, the Bank continued to develop its investment banking, with shareholders equity of SR 31 billion compared to SR 30 billion in the same period of the previous year, representing an increase of 4%. Total assets reached SR 215 billion , compared to SR 177 billionfor the previous quarter. ,an increase of 21%; while the Bank’s financial assets reached SR 128 billion, an increase of 8%. Customer deposits reached SR 166 billion compared to SR 137 billion, an increase of 21%. The Bank realized a return of 3.62% on average assets, while the return on shareholders equity was 23.43%. Profit per share came to SR 2.36 for the first half of the current year compared to SR 2.31 for the first half of last year.
Based on these encouraging results, the Bank’s Board of Directors decided to distribute SR 1,875 million to shareholders at SR1.25 per share to those registered in the Bank’s records on 18/07/2011G corresponding to 17/08/1432H.
Al Rajhi pointed out that the Bank succeeded in diversifying its revenue sources and in developing both the investment and banking sectors. Along with this, they increased their attention to customers and to meeting their needs through the Bank’s large branch network, 493 branches, and its sophisticated network of 2,920 ATMs.
Al Rajhi also reported that the Bank received the highest evaluation from the credit rating organization Capital Intelligence the previous year. It was granted a credit rating of AA-, which shows the efficiency of the Bank’s financing and investment assets.
On behalf of the Board members and the Bank’s Management, the Chairman and CEO concluded his speech by thanking the Bank’s customers for their loyalty, and the employees for their considerable efforts in achieving these excellent results.