- Al Rajhi Bank‘s first-quarter profit reached 5.91 billion riyals, marking a 34% increase year-on-year, surpassing the estimate of 5.43 billion riyals.
- The bank’s operating income rose by 27% year-on-year, amounting to 9.20 billion riyals, exceeding the expected 8.85 billion riyals.
- Impairments were recorded at 525 million riyals, a 25% increase from the previous year, and below the projected 631.2 million riyals.
- Earnings per share stood at 1.41 riyals, compared to 1.05 riyals the previous year, beating the estimate of 1.39 riyals.
- Pretax profit was 6.59 billion riyals, a 34% rise year-on-year, and above the forecast of 6.39 billion riyals.
- Total assets grew by 22% year-on-year to reach 1.02 trillion riyals, well above the estimated 906.03 billion riyals.
- Investments increased by 25% year-on-year to 177.91 billion riyals.
- Net loans stood at 722.79 billion riyals, a 19% increase year-on-year, surpassing the 712.31 billion riyals estimate.
- Total deposits were 629.23 billion riyals, a 4.2% increase year-on-year, but fell short of the 647.22 billion riyals estimate.
- Operating expenses rose by 10% year-on-year to 2.09 billion riyals, matching the estimate.
- The bank reported an increase in gross financing and investment income, along with higher fees from banking services, other operating income, and exchange income.
- Total operating expenses, including impairment charges, increased by 12.9%, driven by higher depreciation, salaries, and general administrative expenses.
- There was a notable rise in net provision for expected credit losses, attributed to a 46.7% increase in gross charge and a 73.9% rise in recoveries from written-off financing.
- Analyst recommendations include 6 buys, 12 holds, and 1 sell.
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A look at Al Rajhi Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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
Based on the Smartkarma Smart Scores, Al Rajhi Bank shows a promising long-term outlook. With solid scores in key factors such as Value, Dividend, Growth, and Resilience all at 3, the bank demonstrates a balanced performance across fundamental aspects. Furthermore, its Momentum score of 5 indicates a strong upward trend in performance, suggesting a positive trajectory for the company in the future.
Al Rajhi Bank, a provider of banking services in Saudi Arabia, appears well-positioned for sustained growth and stability. The balanced scores across various criteria reflect a healthy overall outlook for the bank, with particular strength in its momentum. As Al Rajhi Bank continues to serve its customers with a range of financial services, its consistent performance across multiple metrics bodes well for its future prospects.
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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