Al Rajhi Bank achieves SR 3.5 billion in profits during 1st half of this year
Al Rajhi Bank CEO, Mr. Abdullah Sulaiman Al Rajhi announced that the Bank posted a net profit of SR 3,503 million (US$934 million), compared to SR 3,344 million during the same period last year, representing a 5% increase. This growth is attributed to the increase in customer deposits and the diversification of the Bank's financing and investment strategy. Al Rajhi explained that the Bank is continuing with its conservative strategy by increasing its financial provisions by 55% compared to the same period last year.
Al Rajhi Bank CEO also explained that the financial results for the period June 30, 2009 showed that the net income from financing and investment operations reached SR 4,623 million, compared to SR 4,170 million, which represents an 11% increase from last year. Total operational revenues reached SR 5,641 million, compared to SR 5,201 million, representing an 8% increase. Al Rajhi indicated that the Bank was successful in diversifying its revenue base and developing the investment and banking sectors hand in hand with managing customer relationships and meeting their needs with quality products and servicess.
Al Rajhi added that the shareholder value increased to reach 27 billion, compared to 24 billion during the same period last year, an increase of 13%. Assets increased to SR 165 billion, compared to SR 150 billion, representing an increase of 10%. Customer deposits grew by 14%, increasing from SR 123 billion, compared to SR 108 billion. The Bank made a return on investment from assets at a rate of 4.25% whereas the return on shareholder value reached 26%. Profits per share reached SR 2.34 compared to SR 2.23 representing a 5% increase from last year.
Al Rajhi continued that these due to the fine financial results and as part of the Board's keen interest to distribute dividends. The Board of Directors agreed to distribute SR 1,875,000,000 at SR 1.25 per share after deduction of Zakat as half year dividends for 2009. Priority for profit distribution for registered shareholders will be end of day Sunday July 19, 2009 and the bank will begin depositing profits in shareholder accounts by Sunday July 26, 2009.