Al Rajhi Bank’s profit slips to SAR 8.29 bln in H1 2023; Q2 at SAR 4.15 bln

Al Rajhi Bank reported a marginal decline in H1 2023 net profit to SAR 8.29 billion from SAR 8.39 billion in the year-ago period. 

The bank reported a 3.5% year-on-year (YoY) decline in operating income. This is primarily attributed to a drop in net financing and investment income. Al Rajhi Bank reported an increase in fees from banking services, foreign exchange (FX) income, and other operating income.

On the other hand, operating expenses declined, including impairment charges for financing, by 8.2% YoY, due to a decrease in other general and administrative expenses. However, the bank recorded an increase in salaries and employee-related benefits, and depreciation expenses. Impairment for credit losses dropped by 38% YoY from SAR 1.15 billion to SAR 719 million.

The second-quarter net profit declined 3% to SAR 4.15 billion from SAR 4.25 billion in Q2 2022, as operating income dropped by 4.5% YoY on lower net financing and investment income.

The net profit inched up 0.1% from SAR 4.14 billion in Q1 2023, backed by a 0.7% rise in operating income.

Total shareholders’ equity, no minority interest, increased to SAR 86.68 billion as of June 30, 2023, from SAR 75.41 billion a year earlier.

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