For the Fifth Year in a Row: Alrajhi Bank has Achieved the Highest Profits Among all Saudi Banks, by an Increase of 4% Compared to Last Year, and with a 6767 Million Riyals Profit

Jan 16, 2010, 14:14 ET from Rajhi Bank Saudi Arabia.

RIYADH, Saudi Arabia, January 16 /PRNewswire/ -- Mr. Abdullah Bin Sulaiman Al Rajhi, Managing Director and Chief Executive Officer of Al Rajhi Bank announced that the bank has achieved a net profit for 2009 amounted to 6,767 million riyals compared to 6,525 million riyals in 2008 with a rise of 4%.

Alrajhi explained that the bank annual financial results for the period ended 31/12/2009 as compared to the annual financial ended 31/12/2008 showed that the total operating income amounted to 11,505 million riyals compared to 10,575 million riyals, a rise of 9%, while net financing income and investments 9,354 million riyals compared to 8,494 million riyals in 2008, an increase of 10%, and net from banking services 1,973 million, compared to 1,724 million riyals in 2008, an increase of 14%, and net income before provision 8,528 million compared to SR 7,752 million for the year earlier with an increase of 10%. Alrajhi added that the bank in support of the conservative fiscal policy has been set aside financial provision by more than 1,761 million riyals, an increase of 43% from the previous fiscal year, which reflected positively on the strength of the financial position of the bank.

According to CEO of the bank that the bank has continued to develop its investment banking with a total operating income for the fourth quarter of 2,750 million riyals compared to SR 2,669 million for the corresponding quarter in the previous fiscal year, with an increase of 3%, while net financing income and investment 2,232 million riyals compared to 2,188 million riyals, an increase of 2%, and revenues of banking services 425 million, compared with 242 million riyals in 2008 and an increase of 76%, while the net profit for the fourth quarter of 1,470 million Riyals compared to 1,424 million Saudi Riyals for the same period of last year in 2008 and a rise of 3%.

Alrajhi pointed out that the bank equity raised to 29 billion riyals, compared to 27 billion riyals, an increase of 6.3%, and total assets raised to 171 billion Riyals compared to 163 billion riyals, an increase of 5%, while the financial assets of the bank is 149 billion with an increase of 6%. Customer deposits also hit 121 billion riyals, compared to 117 billion riyals with an increase of 3.4%. The bank has achieved a return as 4% on average assets, while return on average equity is 24%, and profit per share of 4.51 riyals versus 4.35 riyals a year earlier.

Alrajhi reported that the bank has maintained excellence efficient operation, where the percentage of cost of revenues 26% compared to 27% of the previous year, the lowest among the Saudi banks, the bank also maintained on the credit rating granted by the major international rating agencies, which got the A1 from Moody's and A + by Fitch.

Alrajhi added that the bank to continue to provide superior financial results and returns for shareholders and high quality services to its customers through the largest branch network covering all parts of the Kingdom of Saudi Arabia with a number of 456 bank branches in Saudi Arabia and 19 bank branches in Malaysia.

Alrajhi concluded his statement by emphasizing that despite the challenges faced by the banking and financial sector, but that the bank was able to maintain its lead in the fifth year in a row as the highest profits among all Saudi banks. As explained by Managing Director and Chief Executive Officer of the bank's shareholders that the support of the continuity in achieving these positive results and growth within a stable upward and outside the Kingdom, the bank will seek through in 2010, God willing, to run its new branches in both Kuwait and Jordan, which will enhance the bank to diversify sources of income and investments.

In conclusion, Managing Director and Chief Executive Officer of the bank would like to thank on behalf of all members of the Board of Directors and bank management all bank loyal customers and staff of the bank for their considerable efforts in achieving these excellent results.

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SOURCE Rajhi Bank Saudi Arabia.