Al Rajhi Bank’s financing portfolio grows, NPL coverage hits 175%, says 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 today that Al Rajhi Bank has achieved its highest quarterly profits since its founding, with a net income reaching 4,405 million riyals for the first quarter of 2024. This represents an increase of 6.3% from the 4,145 million riyals recorded in the same period last year. The bank's total operating income for the quarter was approximately 7,229 million riyals, bolstered by a growth of over 10% in net financing and investment income compared to 2023.

Al Rajhi detailed that the bank’s financial health continues to strengthen, as evidenced by an increase in shareholders' equity, excluding tier 1 sukuk, to 90 billion riyals from 83 billion riyals last year, marking a rise of 8.2%. Total assets climbed to 836 billion riyals, up by approximately 7.8%, while customer deposits grew by about 8.6%, reaching 604 billion riyals. The bank also reported a return on assets and shareholders' equity of 2.1% and 19.3% respectively, with earnings per share reaching 1.05 riyals. He noted that the significant growth in the financing portfolio, complemented by an enhanced coverage ratio for non-performing loans by 175%.

On this occasion, Mr. Al Rajhi expressed his gratitude to the bank’s customers for their ongoing trust and utilization of its services and programs, which are continually tailored to meet their needs. He also commentated the dedicated efforts of the bank’s male and female staff, whose commitment has been crucial in achieving these results.

Highlighting the bank’s achievements in the first quarter of 2024, Mr. Al Rajhi mentioned the successful issuance of sustainable senior unsecured sukuks by one billion US dollars for the second consecutive year under its international sukuk program. Additionally, the bank's Emkan finance company issued the largest sukuk offering in the finance companies’ sector, with a January issuance that received high demand from individual and institutional investors, totaling more than 2.2 billion riyals.

Abdullah Al-Rajhi also underscored the bank's ongoing commitment to societal roles, noting the continuation of sponsoring kidney transplant operations, with 66 successful procedures this year, and the Al Rajhi Bank's educational program for orphans, now in its third year. Over 200 students are actively participating in the program across 27 private Saudi universities, pursuing over 35 different specializations including medicine, engineering, and cybersecurity.

Al-Rajhi added that During Ramadan, the bank initiated several community projects, launching two donation campaigns through the Ihsan and Joud Housing platforms and a campaign to distribute Iftar meals, involving over 120 volunteers who contributed a total of 600 volunteer hours.

Concluding his statement, Abdullah bin Sulaiman Al Rajhi reiterated the bank’s dedication to its leading role in supporting Vision 2030's goals, reflecting its integral role in the national economy. The bank has seen marked increases in financing for medium and small enterprises by 24.3%, real estate financing for citizens by 6.2%, and digital banking usage across corporate and individual sectors. Furthermore, the bank continues to enhance gender diversity, with women now representing 30% of the total workforce.