Al Rajhi Bank continues to strengthen conservative approach, NPL coverage ratio above 293%: Chairman

Abdullah bin Sulaiman Al-Rajhi, Chairman of the Board of Directors of Al Rajhi Bank

Abdullah bin Sulaiman Al-Rajhi, Chairman of the Board of Directors of Al Rajhi Bank, announced that the bank recorded a net income of SAR 4,258 million in the second quarter of 2022, up from SAR 3,605 million in the same quarter last year, an increase of 18%. Thus, the bank's net income for the first six months of this year will be SAR 8,392 million, up from SAR 6,940 million in the first half of 2021, a 21% increase.

Total operating income increased by 15% in the first six months of the current year compared to the first half of 2021 due to an increase in net financing and investment income, and banking services fees. The bank also continued to strengthen its conservative approach and set aside additional provisions, which reflected positively on the bank's financial strength, as the non-performing loans coverage ratio exceeded 293%.

Al Rajhi also stated that shareholders' equity increased by 26% to reach SAR 75 billion over the same period last year, total assets increased by 30% to SAR 710 billion, and net financing increased by 33% to SAR 520 billion over the same period last year.

The Chairman of the Board of Directors added, customers’ deposits increased by 24% to reach SAR 553 billion from the same period last year, and the return on assets and return on shareholders' equity reached 2.6% and 23.4%, respectively, and the earnings per share after zakat reached to SAR 2.08.

Mr. Abdullah Al Rajhi thanked the bank's valued customers, both retail and corporate, for their unwavering loyalty and trust in the bank's products and services, which are constantly evolving, particularly in the digital field, to achieve the "UNBANK THE BANK" strategy, which made their experience with the bank achieve the "Beyond Imagination”. He also thanked the bank's employees for their contributions to these results.

On the level of social responsibility, Al Rajhi stated that the bank will continue to implement its strategy of major sustainable projects with an impact in the education and health sectors, as the second quarter of 2022 witnessed the signing of an agreement for "Al Rajhi Bank Program for Educational Orphans Care" with the Ministry of Human Resources and Social Development. Under this agreement, the bank will cover tuition fees for the undergraduate stage at private universities for all orphans in the Kingdom who were not admitted to public universities, making this the largest social and educational initiative for this group near and dear to our hearts.

Al Rajhi noted that the bank won three awards at the Sakani Forum organized by the Ministry of Municipal, Rural Affairs, and Housing in the second quarter of 2022, including the Best Bank Award, Best Financial Entity in the Real Estate Sector Award, and Best Real Estate Advisor Award, which are the awards that confirm Al Rajhi Bank's effective contribution to achieving the Kingdom's Vision 2030 housing goals year after year.