Saudi Arabia’s Al Rajhi Bank has reported a 14.79% rise in its third-quarter profit to $1.16 billion (SAR 4.36 billion), driven by higher operating income, according to its interim financial results.
The figure is compared to $1.01 billion in the third quarter of 2021, the bourse filing showed. The rise in net income was backed by an increase in total operating income by 9.55% —fueled by higher financing and investment income, fees from banking services, and exchange income. The total operating expenses including impairment charges for financing grew by 0.14% due to increased salaries and employee-related benefits, and depreciation expenses. Meanwhile, there was a decrease in other general and administrative expenses as well as a decline of 17.51% in impairment charges for financing from $158 million to $130.3 million. In the first nine months of 2022, the bank's net profit rose 18.74% to $3.39 billion from $2.86 billion in the same period last year. In the second quarter of this year, the bank saw an 18% increase in its net profit to $1.13 billion from $959.77 million, backed by a rise in total operating income by 12.8%. Al Rajhi Bank ranked second on Forbes Middle East's Top 30 Banks In The Middle East 2022 list, and fifth on Forbes Middle East's Top 100 Listed Companies 2022 list.
Based on Forbes' data, Al Rajhi is the largest bank in the region in terms of profits and market cap.
Global ratings agency Fitch Ratings confirmed in Janaury 2022 the Saudi bank’s rating to A- with a stable outlook. The agency expected the bank to report strong financial performance in 2022, citing a post-pandemic recovery in the banking sector and strong support from Saudi authorities.
The bank, established as an exchange house in 1957 and converted to a bank in 1988, has a network of over 521 branches and 212 remittance centers across the kingdom. In January 2022, it acquired IT services provider the Ejada Systems Company to expand its digital banking services.
