Mr. Abdullah Bin Sulaiman Al Rajhi, Chairman of the Board of Directors at Al Rajhi Bank, announced that in 2018, the Bank had achieved a net profit of SAR 10,297 million, as opposed to SAR 9,121 million in 2017, making it an increase of 12.9 %.
The total operating income in 2018 had increased by 8.9% due to a rise in special commission and net investment income.
He added that 2018 financial results reported a growth in total assets, rounding up to SAR 365,004 million, i.e. a 6.4% increase, while total financing assets amounted to SAR 234,063 million, i.e. a 0.23% increase.
Mr. Al Rajhi stated that customer balances reached SAR 293,909 million, i.e. a 7.6% increase, while return on average assets and shareholders’ equity amounted to 2.91% and 19.74% respectively. In addition, earnings per share throughout the year stood at SAR 6.34
The Bank has announced the Board of Directors’ recommendation to increase capital to the Extraordinary General Assembly, going from SAR 16.25 billion to SAR 25 billion. The latter is a 53.8% upturn made possible through the granting of 7 free shares for each 13 owned shares through capitalization of SAR 8,750 million from the retained earnings account. The Ordinary General Assembly was recommended a distribution of cash dividends to the shareholders for the second half of the year 2018, amounting to SAR 3.6 billion with SAR 2.25 per share and 22.5% of the nominal value of the share. Thus, the net profits distributed to the Bank’s shareholders for the financial year ending December 31, 2018 are SAR 6,9 billion, or SAR 4.25 per share, the equivalent of 42.50% of the share’s nominal value, i.e. an expansion of 6.3% from the year ending 2017.
The Chairman of the Board of Directors continued his statement by expressing thanks to the valued customers for their loyalty and to the Bank’s staff for its commendable efforts in achieving these excellent results.
Al Rajhi Bank presented some of its most important achievements throughout the past year, with the launch of the Operations and Information Complex, in Al-Nakheel District in Riyadh. The latter extended on an area of more than 25 thousand square meters with building areas of about 70 thousand square meters. It comprises the three largest centers (Operations, Data and Cash Center) in the Kingdom.
The Chairman of the Board of Directors also stated that the Bank has successfully continued to achieve the goals of the employees’ strategy in line with that of the Bank for 2020. In 2018, Al Rajhi Academy had been launched, including the Banking Academy and the Academy of Leadership. The succession planning had also been applied along with the personal development preparation plans, in order for Saudi competencies to achieve a leadership model that continues to build young Saudi leaders through the launch of the fifth version of the Graduate Development Program. Al Rajhi Bank invested in the development of women's competencies as well, through the launch of the first version of the Graduate Development Program for Women.
In the corporate Banking sector, the president had explained that a number of products had been launched within the financing portfolio in corporate finance, trade finance, cash and liquidity management, and growth. The launch had been executed in a more structural way than in previous years as the cross selling continues to expand.
The Bank continuously proved its excellence in retail Banking as it introduced 14 new products with new mortgage features, which helped achieve a 28% growth in its real estate portfolio.
Al Rajhi Bank also maintained its digital leadership and brilliance status in this field by launching in 2018, for the first time in the Banking sector, new services and products including self-service machines with the largest network in the Kingdom owned by the Bank. These self-service machines enable the customers to issue checks automatically, update customer data by fingerprint, and increase markets through the "Blockchain" technique. The number of the Bank’s ATMs has also expanded to reach 5000 ATMs and exceeded 84000 POS devices.