Al Rajhi Bank’s 9M 2024 profit up 14% to SAR 14.2B; Q3 at SAR 5.1B

Al Rajhi Bank reported a 14% increase in net profit to SAR 14.2 billion for the first nine months of 2024, compared to SAR 12.4 billion in the prior-year period.

Net financing and investment income increased by 13.9% year-on-year (YoY) on an increase in gross financing and investment income, which was offset by higher gross financing and investment return.

The bank reported a 13.8% increase in total operating income caused by an increase in net financing and investment income, other operating income, fees from banking services and exchange income.

In contrast, the total operating expenses including impairment charges for financing increased by 13.4% YoY due to an increase in depreciation expense and salaries and employee-related benefits, while there was a decrease in other general and administrative expenses. In addition, there was an increase in impairment charge for financing by 42.3% YoY.

The increase in the net provision for expected credit losses is attributed to higher gross charge by 22.9% YoY coupled with a rise in recoveries from written off financing by 3.7% compared to the same period of the last year.

The third-quarter net profit rose 23% to SAR 5.10 billion from SAR 4.15 billion in Q3 2023.

Sequentially, the Q3 bottom line grew by 8.6% from SAR 4.69 billion in Q2 2024.

Shareholders’ equity, with no minority interest and after excluding sukuk, stood at SAR 95.26 billion by the end of Sept. 30, 2024, compared to SAR 85.78 billion in the year-earlier period.

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