Al Rajhi Bank’s net profit declines 7% to SAR 2.38 bln in Q1 2020

Al Rajhi Bank reported a net profit after Zakat and tax of SAR 2.38 billion for the first quarter of 2020, a 7% year-on-year (YoY) decrease, compared to SAR 2.56 billion in the same period last year.

The bank attributed the decline to higher operating expenses by 29% driven by increase in salaries and employee related benefits, depreciation, and other general and administrative expenses.

Higher impairment charge for financing amounting to SAR 693 million also contributed to the decline, despite increase in total operating income by 7%, on the back of rise in net special commission income, fees from banking services and exchange income, and lower other operating income.

When compared to previous quarter, net profit rose 9.1% due to lower total operating expenses by 10%, driven by a decrease in depreciation expenses and general and other administrative expenses.