Mr. Abdullah bin Sulaiman Al-Rajhi, the Managing Director (MD) and the Chief Executive Officer (CEO) of Al-Rajhi Bank, declared that the bank achieved a net profit for 2010 amounted to 6,771 Million Saudi Riyals (US$1805.6 million) compared to 6,767 Million Riyals in 2009. He explained that Al-Rajhi annual financial results for the period ended 31/12/2010 as compared to the annual financial results ending 31/12/2009 showed that the total operating income amounted 11,661 Million Riyals compared to 11,505 Million Riyals in 2009, with an increase of 1.4%, while the net financing income was 8,861 Million Riyals in 2010 compared to 8,390 Million Riyals in 2009, with an increase of 5.6%, and the revenues of banking services fees were 1,634 Million Riyals compared to 1,427 Million Riyals in 2009, with an increase of 14.5%.
The net profit of the bank before the provisions was 8,680 Million Riyals compared with SR 8,528 Million Riyals for the previous fiscal year, with an increase of 2%. Mr. Al-Rajhi added that in support of the bank’s conservative policy, Al-Rajhi has set aside a provision of more than 1,909 Million riyals, with an increase of 8.4% from the previous fiscal year, which was positively reflected on the strength of the bank’s financial position in 2010 and the percentage of coverage of non-performing loans reached 136%.
According to the MD & CEO of the Bank, the bank has continued to develop its investment and banking resources with a total operating income for the fourth quarter of 2,864 Million Saudi Riyals compared to 2,750 Million Riyals for the same quarter of the previous fiscal year, with an increase of 4.2%, while the net financing income was 2,149 Million Riyals versus 2,086 Million Riyals in 2009, with an increase of 3%. The revenues of banking services fees were 415 Million Riyals in 2010 compared to 280 Million Riyals in 2009, with an increase of 48.2%, while the net profit for the fourth quarter of 2010 was 1,668 Million Riyals compared to 1,470 Million Riyals for the same period of 2009 showing an increase of 14%.
Al-Rajhi added that the equity increased to 30 Billion Saudi Riyals, compared with 29 Billion Riyals in 2009, with an increase of 5.5%, and the total assets rose to 185 Billion Riyals, compared to 171 Billion Riyals in 2009, with an increase of 8%, while the value of the financing assets of the bank was 120 Billion Riyals in 2010, with an increase of 7%. The customer deposits amounted 143 Billion Riyals compared with 123 Billion Riyals in 2009, with an increase of 16%. The Bank achieved a return on average assets of 4%, a return on average equity of 23%, and a profit per share of 4.51 Riyals.
The Board of Directors recommended in its meeting held on 19 January 2011 to the Ordinary General Assembly the adoption of dividend payments of 2,250 Million Riyals as dividends to the shareholders for the second half of the fiscal year 2010 by 1.5 Riyals per share after the deduction of Zakat. Thus, the total profit distributed by the bank to the shareholders is SR 4,500 Million Riyals during the fiscal year 2010 by 3 Riyals per share, considering that the bank has a dividend for the first half of fiscal year 2010 by 1.50 Riyals per share. The eligibility of the dividends will be to the shareholders registered at the bank by the end of the trading day of the Ordinary General Assembly which will be held during the first quarter of this year, God willing.
