Al Rajhi Bank, Saudi Arabia’s second-biggest lender, has reported a 3% decline in net profit to SAR 16.62 billion for 2023, compared to SAR 17.15 billion the previous year.
Net financing and investment income fell by 4.1%, as a result of “lower net financing and investment income, and fees from banking services”, the bank said in a regulatory filing on Riyadh’s Tadawul exchange on Wednesday.
Total provisions were 25% lower at SAR1.5 billion and net profit for the last quarter of 2023 declined 5% to SAR 4.17 billion from SAR 4.40 billion in the same period the year before.
In contrast, Â depreciation and amortisation expenses, along with salaries and employee-related benefits, increased. The Q4 bottom line also grew by 0.4% from SAR 4.15 billion in Q3 2023.
Total operating expenses including impairment charges for financing fell 4.8% year-on-year, due to a drop in net impairment charges for financing as well as general and administrative expenses.
The bank’s earnings per share was SAR3.95 versus SAR4.24 in 2022. Shareholders’ equity, with no minority interest and after excluding sukuk, stood at SAR 90.25 billion by the end of the year, compared to SAR 83.72 billion in December 2022.
