Al-Rajhi Bank achieved a net profit growth of 48% in the second quarter of 2021.
According to Arabiya Net, the bank said in a statement that the net profit amounted to 3.6 billion riyals, compared to 2.4 billion riyals during the same period last year.
The bank stated that the total commission income amounted to 5.24 billion riyals, compared to 4.82 billion riyals, during the same period last year, with a growth rate of 28.44%.
The net income increased as a result of the increase in total operating income by 31.8%, mainly due to the increase in net financing and investment income, income from banking services fees, income from foreign currency conversion and income from other operations.
On the other hand, total operating expenses increased by 10.6% as a result of an increase in other general and administrative expenses, salaries and employee benefits expenses, offset by a decrease in depreciation expense, in addition to an increase in the provision Credit losses ranged from 458 million riyals to 584 million riyals, at a rate of 27.5%, according to the bank’s statement.
During the first half, net profit rose by 44% to 6.9 billion riyals, compared to 4.816 billion riyals during the first half of last year.
The net income increased during that period as a result of an increase in total operating income by 25.7%, mainly due to the increase in net financing and investment income, income from banking services fees, and income from operations. This was offset by lower income from foreign currency exchange.
On the other hand, the total operating expenses increased by 3.1% as a result of an increase in the expenses of salaries and employee benefits and other general and administrative expenses, which was offset by a decrease in depreciation expense, in addition to an increase in the provision for losses Credit from 1,151 million riyals to 1,161 million riyals, at a rate of 0.9%.
Thamer Al-Saeed, chief investment officer at Mada'a Investment, said that the results of the banks' business came as a result of government support during the pandemic period, noting that without government support, the banks would have incurred 10 Almost billions of riyals, according to the statements of the Saudi Central Bank.
He explained that the results of the banks' business were due to a noticeable and tangible leap, especially in real estate financing, housing support, as well as individual borrowers.
He pointed out that the banking sector is divided into banks that rely on individual financing, such as Al-Rajhi Bank, which has a leap in the lending portfolio, and banks that rely on corporate lending and treasury products. Which resulted in less results.
