'With a 15% Increase Over Q4 2009, Al Rajhi Bank Achieves Net Profit of SR 1,684 Million in Q1 2010
Mr. Abdullah Bin Sulaiman Al Rajhi, Managing Director and CEO of Al Rajhi Bank, announced that the Bank has achieved net profits of SR 1,684 million for Q1 2010, compared to net profits of SR 1,470 million in Q1 2009, representing an increase of 15%.
The Bank achieved this increase despite a fall of SR 110 million in investment income, due to the decrease in international "Murabaha" revenue.
Al Rajhi explained that the Bank's annual financial results for the period ending 31/3/2010 showed that the net financing income amounted to SR 2,203 million compared to SR 2,068 million in Q1 2009 (an increase of 7%), while the banking services revenue reached SR 397 million compared to SR 270 million (an increase of 47%) and total operating income reached SR 2,832 million compared to SR 2,750 million (an increase of 3%).
According to Al Rajhi, the Bank continued developing its investment and banking resources with a net financing income of SR 2,203 million (an increase of 10% compared to Q1 2009). The banking services revenue increased by 30% reaching SR 397 million, whilst the total operating income reached SR 2,832 million (3% increase).
Al Rajhi clarified that the shareholders' equity reached SR 28 billion compared to SR 26 billion (an increase of 9%). At the same time, total assets increased to SR 172 billion compared to SR 161 billion (an increase of 7%), while the financing assets of the bank increased to SR 117 billion (an increase of 6%). Customer deposits increased to SR 130 billion, compared SR 120 billion in Q1 2009 (an increase of 8%). The Bank achieved a return of 4% on average assets while the return on average shareholder's equity was 24% and profit per share of SR 1.12.
Al Rajhi added that these lucrative results, along with the increasing growth, reflect the Bank's solid performance and prove that the financial status is built on a strong foundation supported by capital sufficiency, correct regulatory systems and balanced investment policies. All these components reduced risks and enabled the Bank to preserve the credit classification given by the largest international rating organizations. The Bank obtained an A1 rating from Moody's and an A+ from Fitch, for having an advanced credit rating.
On behalf of the members of the Board of Directors, Abdullah Bin Sulaiman Al Rajhi concluded by thanking the loyal customers of the bank and its employees.