Al Rajhi Bank’s Q1 2024 profit grows 6% to SAR 4.4B

Al Rajhi Bank’s Q1 2024 net profit grew by 6% to SAR 4.40 billion, from SAR 4.14 billion in the prior-year period.

The profit growth was fueled by a 10.2% rise year-on-year (YoY) in net financing and investment income, thanks to better gross financing and investment income. However, gross financing and investment returns also went up.

The bank’s total operating income also grew by 6.6% YoY on higher net financing and investment income and other operating income. Other general and administrative (G&A) expenses declined.

On the other hand, total operating expenses including impairment charges for financing increased by 7.2% YoY due to higher depreciation expenses and salaries and employee benefits.

Sequentially, the first-quarter net earnings rose 5.6% from SAR 4.17 billion in Q4 2023 driven by a 1.8% increase quarter-on-quarter (QoQ) in net financing and investment income. The total operating income also grew by 2.5%. Operating expenses including impairment charges decreased by 3.7% QoQ on lower other G&A.

Shareholders’ equity, no minority interest and excluding sukuk, stood at SAR 91.77 billion by the end of March 2024, up from SAR 82.72 billion in the year-earlier period.

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