Al Rajhi Bank’s financing portfolio grows on high NPL coverage ratio: Chairman

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

Mr. 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 4,145 million in the first quarter of 2023, compared to SAR 4,134 million for the first quarter of the previous year. The total operating income the first quarter has reached SAR 6,781 million, supported by fees from banking services and exchange income.

Al Rajhi also added that the Bank’s financial results showed that total equity rose to SAR 99 billion, compared to SAR 78 billion in the previous year, with an increase of 27%. Meanwhile, total assets reached SAR 776 billion, with a rise of 18%, and customers' deposits also climbed 10% to reach SAR 556 billion. The rate of return on assets and shareholders' equity reached to 2.2% and 19.6%, respectively, and earnings per share during the period recorded SAR 0.99. The growth achieved in the Bank’s financing portfolio was supported by a high non-performing loans (NPLs) coverage ratio of 230%.

Al Rajhi expressed his gratitude and appreciation to the Bank’s customers for their consistent loyalty, trust and interaction with the developments achieved by the Bank during the period. He also thanked the Bank's employees for their outstanding efforts in achieving these results.

The Chairman of the Board of Directors added that the Bank witnessed many achievements during the first quarter of this year, as the Bank, according to Forbes magazine, ranked the first place as the largest market value in the Middle East, in addition to being awarded the “Sharjah Gulf Excellence Award” for the year 2022. Al Rajhi indicated that during the quarter, the Bank launched the new updated version of Al Rajhi Bank’s mobile application, which seeks to provide digital banking services in a flexible and modern way that meets the aspirations of its customers.

As for social responsibility, Al Rajhi said that the first quarter of 2023 witnessed qualitative participation of the Bank in supporting charitable work through the Jood platform, being the IPO Manager for the largest charitable IPO. This initiative aims to provide housing for families in-need through the Jood platform, which was launched by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz as well as his Royal Highness the Crown Prince Mohammed bin Salman. Al Rajhi Bank and its customers donated to this national campaign a total of SAR 100 million at an event held at the Bank’s headquarters in Ramadan.

The bank was also honored by His Royal Highness, the Governor of Riyadh, as one of the major donors to Ehsan platform.

Al Rajhi concluded his statement by emphasizing that the financial results, digital developments, and the participation in community service is an effective contribution of the Bank to support the Kingdom’s Vision 2030.