Riyadh, Saudi Arabia–Saudi Arabia’s second-largest bank by assets, Al Rajhi Bank has reported a net profit of 17.15 billion riyals ($4.57 billion) in 2022, up 16 percent from 14.75 billion riyals in 2021.
In a bourse filing, the bank attributed the rise in net profit to an increase in the total operating income by 11.12 percent caused by an increase in net financing and investment income, fees from banking services, exchange income and other operating income.
In contrast, the bank said the total operating expenses including impairment charges for financing increased by 1.95 percent due to an increase in salaries and employees’ related benefits, depreciation expense, and other general and administrative expenses. In addition, there was a decrease in impairment charge for financing from 2.3 billion riyals to 2 billion by 14.66 percent.
The bourse filing said loans and advances in 2022 stood at 568.34 billion riyals, up 25.5 percent over 2021, and deposits increased by10.3 percent to 564.93 billion riyals.
Sukuk
The bank issued its Saudi riyal-denominated Tier 1 Sukuk valued at SAR 6.5 billion ($1.7 billion) in January last year.
The return on the Sukuk offering is estimated at an annual fixed rate of 3.5 percent, payable quarterly from the issuance date to 23 January 2027.
