Riyadh, Saudi Arabia – In a significant announcement today, Mr. Abdullah bin Sulaiman Al Rajhi, Chairman of the Board of Directors of Alrajhi Bank, revealed that the bank has achieved its highest semi-annual profits since its establishment. For the first half of 2024, Alrajhi Bank reported a net income of 9,103 million riyals, marking a 10% increase from the 8,295 million riyals recorded in the same period last year.
The bank’s total operating income for the first half of 2024 amounted to 14,866 million riyals, reflecting a 9% growth compared to the same period last year. This increase was driven by an impressive 11% growth in net financing and investment income.
Mr. Al Rajhi highlighted the bank’s strengthening financial health, with shareholders’ equity, excluding equity sukuk, rising by 8% to 94 billion riyals from 87 billion riyals last year. Total assets increased by 7%, reaching 867 billion riyals, while customer deposits grew by 9% to 623 billion riyals. The bank also reported a return on assets of 2% and a return on shareholders’ equity of 20%, with earnings per share reaching 2.16 riyals. Notably, the financing portfolio’s significant growth was complemented by an enhanced coverage ratio for non-performing loans, which stood at approximately 170%.
In the second quarter of 2024, Alrajhi Bank achieved net profits of 4,698 million riyals, compared to 4,150 million riyals in the second quarter of last year, representing an increase of more than 13%.
Mr. Al Rajhi also detailed the bank’s success in issuing its first sustainable additional capital sukuk denominated in US dollars, worth one billion dollars, during the second quarter of 2024. This issuance, which is sharia-compliant, marks Alrajhi Bank’s first tier 1 issuance in the global debt markets and follows its successful international issuances in 2023 and 2024. The sukuk received high demand from regional and international investors, enhancing the bank’s importance and position in global markets.
Emphasizing the bank’s ongoing commitment to societal roles, Mr. Al Rajhi noted that the bank continued to support the kidney transplant operations program, with 72 successful procedures this year. Additionally, Alrajhi Bank’s educational program for orphans, now in its third year, has over 214 students actively participating. The construction of the Al Rajhi Diabetes Center in Qassim is nearing completion and is expected to greatly benefit the region. The bank’s blood donation campaign has continued successfully, with over 4,000 donors participating. Furthermore, the “Quick Donation” service campaigns via the Alrajhi application for the “Ehsan” and “Joud Al-Iskan” platforms have raised more than 500 million riyals.
Mr. Abdullah bin Sulaiman Al Rajhi concluded by reaffirming the bank’s commitment to playing a leading role in achieving the goals of Vision 2030. Notable achievements include a 23% increase in financing for medium and small enterprises, a 6% increase in real estate financing for citizens, and increased digital banking usage in both corporate and individual sectors. Additionally, the bank continues to enhance gender diversity, with women now representing 30% of the total workforce.
Alrajhi Bank‘s record-breaking performance and strong commitment to community initiatives underscore its pivotal role in the financial and social landscape of Saudi Arabia.
