Al Rajhi gains over 1% after H1 2019 profit up 8%

Shares of banking heavyweight Al Rajhi rose over 1 percent after net profit for the first half 2019 rose 8.3 percent year-on-year (YoY).

By 10.35 am, the scrip was trading at SAR 68.90, up 1.3 percent. Nearly 945,781 shares, worth SAR 65 million, had been exchanged. 

The bank reported a net profit of SAR 5.2 billion in H1 2019, backed by higher operating income and lower benefits granted to employees.

However, Q2 2019 net profit missed analyst forecast. The bank’s net profit increased 4.3 percent YoY to SAR 2.6 billion as total operating income jumped 13.4 percent amid higher operating expenses. 

Brokerage firm Riyad Capital estimated Al Rajhi’s Q2 2019 net profit to rise 18 percent YoY to SAR 3.04 billion.

Earlier this month, the bank’s board of directors also recommended a 15 percent cash dividend for the first half of 2019, amounting to SAR 3.8 billion.