Al Rajhi Bank’s net profit increased by 22.8% in the third quarter to $1.4 billion due to higher operating income
Saudi Arabia-based Al Rajhi Bank said Sunday its third-quarter net profit surged 22.8% year-on-year to $1.4 billion (SAR 4.4 billion), thanks to a rise in operating income, a bourse filing showed.
Al Rajhi Bank’s Q3 Earnings
In the third quarter of 2024, Al Rajhi Bank’s total operating income increased by 22.8% compared to the same time last year, reaching $2.2 billion (SAR 8.4 billion). This rise was due to higher income from financing, investment, banking fees, and exchange rates, according to a report shared on the Saudi Exchange.
The bank, based in Riyadh, reported that its income from special financing grew by 19.3% to $2.7 billion (SAR 10.2 billion). Additionally, income from special investments rose by 37.3% to $494.9 million (SAR 1.8 billion).
Total operating expenses also increased by 23.1% from last year. This was mainly because of higher costs for depreciation, salaries, and other administrative expenses.
For the first nine months of the year, Al Rajhi Bank reported a net profit of $3.7 billion (SAR 14.2 billion), a rise of 14.1% from last year. During this period, total operating income grew by 13.8% to $6.2 billion (SAR 23.3 billion).
Big Number
As of September 30, 2024, Al Rajhi Bank had total assets of $240.3 billion (SAR 902 billion), according to their report.
Dividends
In August, Al Rajhi Bank said it would pay a cash dividend of $1.3 billion (SAR 5 billion) for the first half of the year. After deducting Zakat, the dividends for each share were $0.33 (SAR 1.25).
Sukuk Offerings
In May, Al Rajhi Bank successfully sold $1 billion worth of sustainable sukuk, which are Islamic bonds, in US dollars. The offering included 5,000 sukuk, each worth $200,000. These sukuk will provide a return of 6.375% each year, which is lower than the earlier estimate of about 6.875%.
In March, the bank announced that it raised $1 billion by selling five-year sustainable sukuk, also in dollars, which will give a return of 5.047% each year.
Published: 28th October 2024
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