Al Rajhi Bank is pleased to present its annual Integrated Report for the financial year ended 31 December 2023, in accordance with the International Integrated Reporting <IR> Framework, now part of the International Financial Reporting Standards (IFRS) Foundation. The Report acts as the primary publication and balanced overview presented to the Bank’s shareholders, investors and other stakeholders of Al Rajhi Bank’s performance, operations and strategy – as far as it is prudent to disclose such information – for the year in review. This comprehensive integrated annual report is available online in HTML as well as in print and PDF versions.

Report boundary

The boundary for financial reporting in this document extends to cover Al Rajhi Bank, referred to as “the Bank“, and its subsidiaries, which, together with the Bank, are collectively referred to as the “Group“. Where applicable, other Group entities are referred to as “Group” or “Consolidated”.

The report reflects on:

• The value created against the trends that shaped the operating environment in the short, medium and long-term.
• The Governance, risk management and sustainability frameworks entrenched across the Group.
• The financial, operational, environmental and social reviews and results of the Group for the year.

Reporting period

This Report covers the 12-month period from 1 January to 31 December 2023, and is consistent with the Bank’s conventional annual reporting cycle for integrated financial and sustainability reporting. The Bank’s most recent integrated report covered the 12-month period that ended 31 December 2022. There are no restatements of information from previous reports and no major changes from previous reporting periods in the scope and aspect boundaries.

Compliance

Al Rajhi Bank Annual Report 2023 complies with all applicable laws, regulations and standards, and guidelines for voluntary disclosures. Additional details can be found in the chapter on Governance (pages 181 to 216) and in the Financial Statements and the Notes therein (pages 225 to 356).

The consolidated Environmental, Social and Governance (ESG) data has been prepared in accordance with the Saudi Exchange ESG Disclosure Guidelines (www.sseinitiative.org), and in reference to the GRI Sustainability Reporting Standards (www.globalreporting.org).

As organisations preparing an integrated report are not necessarily required to adopt the International <IR> Framework categorisation of capitals (as provided in the paragraphs 2.10 and 2.17-2.19 in the <IR> Framework), the Bank has categorised the capitals differently in its value creation model diagram to aptly describe its value creation process. The process of preparing this Report continues to strengthen and reinforce integrated thinking across the Bank.

The Consolidated Financial Statements presented in this report are in line with International Financial Reporting Standards (IFRS) as endorsed in the Kingdom of Saudi Arabia and other standards, and pronouncements issued by the Saudi Organisation for Certified Public Accountants (SOCPA). The Statements comply with the provisions of the Banking Control Law, the Regulations for Companies in the KSA, and the Bank’s Articles of Association.

Precautionary principle

Al Rajhi Bank is conscious of the wider impact of its operations, and always takes into consideration the financial, economic, social and environmental consequences of its actions when launching new ventures and initiatives. One particular area of interest to the Bank is the indirect results of the actions of businesses to whom the Bank lends. The Bank avoids or reduces any such negative impacts through its credit policies, screening for ESG criteria, post-disbursement supervision and risk management processes.

Although the Bank’s business model and nature of operations do not directly create a significant negative impact on the environment; every effort is made to reduce its own carbon footprint through initiatives such as solar energy usage, prudent energy and water consumption, waste management, and the elimination of paper usage across its operations.

Queries

Your comments on this Report are most welcome. Please email: IR@alrajhibank.com.sa to send in your feedback on the Bank’s Integrated Annual Report 2023.