- Al Rajhi Bank‘s second-quarter profit rose to 6.15 billion riyals, a 31% increase from the previous year, surpassing the estimated 5.76 billion riyals.
- Operating income reached 9.60 billion riyals, up 26% year-over-year, exceeding the predicted 9.28 billion riyals.
- Impairments totaled 600 million riyals, marking a 32% increase from the previous year, and were slightly below the estimated 625.8 million riyals.
- Pretax profit of 6.86 billion riyals matched a 31% year-over-year rise, beating the forecasted 6.6 billion riyals.
- Total assets grew by 20% to 1.04 trillion riyals, surpassing the estimate of 970.13 billion riyals.
- Investments and net loans both saw a 19% increase, with investments at 181.45 billion riyals and net loans slightly exceeding estimates at 741.72 billion riyals.
- Total deposits rose 3.1% year-over-year to 641.99 billion riyals, slightly below the expectation of 656.42 billion riyals.
- Operating expenses climbed to 2.14 billion riyals, a 9.6% increase compared to the previous year, aligning closely with the estimate of 2.13 billion riyals.
- Net financing and investment income increased by 24.7% due to higher gross financing and investment returns.
- The rise in depreciation, salaries, and administrative expenses contributed to the overall expense increase.
- The net provision for expected credit losses surged due to a 63.6% increase in gross charges and a 108% rise in recoveries from written-off financing.
- Market sentiment indicates analyst ratings with 10 ‘buys’, 11 ‘holds’, and no ‘sells’.
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A look at Al Rajhi Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Al Rajhi Bank, a leading banking institution in Saudi Arabia, is positioned for a stable long-term outlook as indicated by its Smart Karma Smart Scores. With a balanced score of 3 in Value, Dividend, Growth, and Resilience, the bank demonstrates a solid foundation across key financial factors. Additionally, boasting a Momentum score of 4, Al Rajhi Bank shows strong potential for continued positive performance and growth in the future.
Al Rajhi Bank provides a range of banking services, including credit cards, insurance, car finance, loans, online and phone banking, and current accounts to its customers in Saudi Arabia. With its overall Smart Scores reflecting a positive outlook, investors may find Al Rajhi Bank to be a promising long-term investment opportunity within the financial sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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