Al Rajhi Bank posts significant growth in financing portfolio; NPL coverage hits 165%: Chairman

Abdullah bin Sulaiman Al Rajhi, Chairman of the Board of Directors of Alrajhi bank

Mr. Abdullah bin Sulaiman Al Rajhi, Chairman of the Board of Directors of Alrajhi bank, announced today that Alrajhi bank has achieved its highest 9M profits since its establishment, with a net income reaching 14,206 million riyals for the first 9M of 2024, an increase of 14% from the 12,451 million riyals recorded in the same period last year. The bank's total operating income for the first 9M of 2024 amounted 23,305 million riyals, grew by 14% comparing to same period last year, driven by net financing and investment income growth.

Al Rajhi detailed that the bank’s financial health continues to strengthen, as demonstrated by an increase in shareholders' equity, excluding equity sukuk, to 95 billion riyals from 86 billion riyals last year, marking a rise of 11%. Total assets climbed to 903 billion riyals, up by 13%, while customer deposits grew by 10%, reaching 623 billion riyals. The bank also reported a return on assets and shareholders' equity of 2.2% and 20.5% respectively, with earnings per share reaching 3.38 riyals. Notably, the significant growth in the financing portfolio was complemented by an enhanced coverage ratio for non-performing loans around 165%.

In the third quarter of this year, Alrajhi bank achieved net profits of 5,103 million riyals, compared to 4,155 million riyals in the third quarter of last year, an increase of more than 23%.

Regarding the bank's policy in its strategic steps towards an integrated financial system, the Chairman of Al Rajhi Bank said, "Al Rajhi Bank's acquisition of 65% of the "Drahim" application, the financial platform for financial management and automated investment, as well as the "Neotek" company obtaining the Central Bank's license, aims to enhance its leadership in the financial sector, as well as support the fintech sector in a way that contributes to the development of financial technology solutions that meet the needs of the growing market, and enhances cooperation with government and private entities to drive innovation and development in the financial sector in a way that achieves the goals of developing the financial sector 2030."

On the international expansion level, the new main HQ building of Alrajhi Bank – Jordan was opened in the Jordanian capital, Amman, this step confirms the bank’s success in its strategy of continuous expansion and development. The head office represents a consolidation of the bank’s journey in Jordan, which began in 2011 with two branches and has now reached 13 branches distributed across various governorates.”

Abdullah Al Rajhi emphasized the bank's ongoing commitment to societal roles, the bank continued to support the kidney transplant operations program, with 77 successful procedures this year.

MR. Alrajhi added that The Quick Donation service has facilitated the process of donating to charities and community initiatives, making it easier, faster and more reliable, by supporting more than 1,700 non-profit associations with more than SAR 1.3 billion, the bank also contributes Effectively in managing 17 endowment funds, in order to achieve its financial sustainability.

Abdullah bin Sulaiman Al Rajhi concluded his statement by saying that the bank will continue to play its leading role and contribute effectively to achieving the goals of Saudi Vision 2030. He extended his thanks and appreciation to the bank’s customers for their continuous partnership and benefit from its various products and services, which we always strive to meet their needs.

He also thanked the bank’s employees for their efforts and continuous interaction, which contributed to the bank’s growth and the achievement of these rising numbers.