Announcement |31/01/2024

Abdullah Al Rajhi: alrajhi bank Announces SAR 16,621 million Profits for 2023

Announcement | 31/01/2024

Abdullah Al Rajhi: alrajhi bank Announces SAR 16,621 million Profits for 2023

Under the stewardship of Mr. Abdullah bin Sulaiman Al Rajhi, Chairman of the Board of Directors, alrajhi bank has reported a successful financial year for 2023. The bank's net profits have reached 16,621 million riyals in 2023, with the fourth quarter alone contributing SAR 4,171 million.

Total operating income in 2023 reached SAR 27,531 million. This increase is primarily attributed to the growth in various sectors such as total financing investments income, exchange income, and other operating income.

Mr. Abdullah bin Sulaiman Al-Rajhi, elaborating on the financial results, highlighted that the shareholder's equity, excluding the Tier 1 Sukuk, rose to SAR 90 billion from last year’s SAR 84 billion, marking an increase of 7.9%. The bank also saw growth in its total assets, reaching SAR 808 billion, an increase of 6.1%. Customer deposits saw a rise of 1.4%, amounting to SAR 573 billion. Notably, the return on assets and shareholders' equity stood at 2.12% and 19.35% respectively for the year, and earnings per share were recorded at 3.95 riyals. The bank also maintained a robust coverage for non-performing financing, exceeding 200%.

Mr. Al Rajhi emphasized the bank's continuous growth across all levels and its successful achievement of strategic goals. This success is attributed to customer loyalty, investor confidence, and the dedication of the bank’s staff. He expressed his gratitude to the employees and subsidiaries, and to the Central Bank of Saudi Arabia for its unwavering support to the financial sector in the Kingdom.

Highlighting the bank's significant achievements in the past year, Mr. Al Rajhi mentioned several awards, including the Financial Institutions Leadership Awards in bank transfers, the Best Digital Bank award in trade finance products, and five awards in investor relations across the Kingdom and the Middle East. The bank also successfully launched the first sustainable sukuk denominated in US dollars, worth one billion dollars, as part of its international sukuk programme. Additionally, the bank has signed several purchase agreements for Mortgage portfolios with the Saudi Real Estate Refinancing Company (SRC), totaling SAR 11 billion.

Demonstrating its commitment to social responsibility, Alrajhi Bank sponsored 54 successful kidney transplant operations in the fourth quarter. The bank also launched a training initiative for branch employees in sign language, enhancing service inclusivity for customers with disabilities. Over 35 employees from 22 branches across 9 cities received this training.

In the third quarter, alrajhi bank hosted the “Instantly & Limitlessly" annual ceremony, showcasing the latest digital banking updates via the Al Rajhi Group’s applications. This event underscored the bank’s digital transformation, which now exceeds 95%, and the Al Rajhi Bank application has achieved a remarkable rating of 4.7.

Concluding his statement, Mr. Abdullah bin Sulaiman Al Rajhi reaffirmed the bank’s commitment to playing a pivotal role in realizing the Vision 2030 goals. The bank has made significant strides in various sectors, including an increase in financing for medium and small enterprises by 23%, a rise of 6% in real estate financing for citizens, and enhanced digital banking services in corporate and individual sectors. Furthermore, the bank has made notable progress in gender diversity, with women constituting 29% of its workforce.