Al Rahji Bank's net profit jumps 13%, beating analysts' estimates
The rise is attributed to higher total operating income and service fees
Al Rahji Bank, Saudi Arabia's largest lender by market value, reported a 13 per cent annual rise in net profit for 2019, attributed to higher income and fees from banking services.
Full-year net profit rose to 10.3 billion riyals (Dh9.9bn), beating the highest estimate of 10.2bn riyals of analysts polled by Bloomberg.
Annual total operating income climbed 8.9 per cent to 17.3bn riyals last year, the bank said in a filing to the Tadawul stock exchange, where its shares are traded, on Monday.
Net income for special commissions and investments rose 10 per cent to 13.2bn riyals, and full-year earnings per share stood at 6.34 riyals for 2018.
There was a decrease in net exchange income and other operating income, and total operating expenses rose by 3.5 per cent year-on-year due to an increase in general and other administrative expenses and currency depreciation, the bank said.
The bank said salaries and employee-related benefits and expenses over the period decreased.
Total assets increased 6.4 per cent last year to 365bn riyals.
GCC banks are expected to perform better this year than last, as liquidity improves on a stronger economic environment and rebound in oil prices after a three-year slump.
Updated: February 4, 2019 12:21 PM