Al Rajhi Bank Q1 profit up 6% as operating income rises

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The net profit of Al Rajhi Bank, the second-largest lender by assets in Saudi Arabia, rose 6 percent year on year to SAR4.4 billion ($1.2 billion) in the first quarter of 2024, driven by higher operating income.

Total operating income increased 6.6 percent annually due to a rise in net financing and investment income. 

Total operating expenses, including impairment charges for financing, increased by 7.2 percent as depreciation expenses, salaries, and employee-related benefits rose. 

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In addition, the impairment charge for financing increased 17.3 percent year on year to SAR 421 million. However, fees from banking services and exchange income declined.

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Net profit increased by 5.6 percent quarter on quarter from SAR4.2 billion in the fourth quarter of 2024 as operating income rose 2.5 percent and operating expenses fell by 3.7 percent. 

Last month, the bank’s shareholders approved a dividend payout of SAR4.6 billion for the second half of 2023. The total dividend paid is SAR9.2 billion.