In a robust financial performance, Al Rajhi Bank has reported a net profit of $2.42 billion (SAR 9.10 billion) for the first half of 2024, marking a 9.74% increase from the same period last year. The bank’s earnings per share (EPS) rose to SAR 2.16, up from SAR 1.97 in H1-23. Alongside these impressive results, the bank’s board has approved cash dividends valued at SAR 5 billion, representing 12.50% of the share capital, to be distributed to shareholders in August 2024.
Al Rajhi Bank’s financial results for the first half of 2024 reflect its strong operational performance and strategic initiatives. The bank’s net profit surged by 9.74% year-on-year, reaching SAR 9.10 billion. This growth was driven by a combination of increased revenue and effective cost management. The bank’s total assets grew by 10.59% to SAR 866.96 billion, while investments climbed by 26.94% to SAR 153.02 billion.
The bank’s client deposits also saw a significant increase, rising by 9.09% to SAR 622.57 billion. This growth in deposits underscores the trust and confidence that clients have in Al Rajhi Bank’s financial stability and services. The bank’s ability to attract and retain deposits is a testament to its strong market position and customer-centric approach.
In the second quarter of 2024, Al Rajhi Bank’s net profits reached SAR 4.69 billion, marking an annual surge of 13.20% from SAR 4.15 billion in Q2-23. On a quarterly basis, the Q2-24 net profits increased by 6.65% from SAR 4.40 billion in Q1-24. These results highlight the bank’s consistent performance and ability to generate sustainable growth.
Dividend Approval and Distribution
In light of its strong financial performance, Al Rajhi Bank’s board has recommended cash dividends after Zakat valued at SAR 5 billion for the first half of 2024. This represents 12.50% of the share capital, with a dividend of SAR 1.25 per share for 4 billion eligible shares. The eligibility and distribution dates for the dividends are set for August 12 and August 26, 2024, respectively.
The approval of these dividends reflects the bank’s commitment to delivering value to its shareholders. By distributing a significant portion of its profits, Al Rajhi Bank aims to reward its investors and maintain their confidence in the bank’s financial health. The dividends also underscore the bank’s strong capital position and ability to generate consistent returns for its shareholders.
The bank’s dividend policy is aligned with its long-term strategy of balancing growth and shareholder returns. By maintaining a prudent approach to capital management, Al Rajhi Bank ensures that it can continue to invest in growth opportunities while providing attractive returns to its shareholders.
Future Outlook
Looking ahead, Al Rajhi Bank is well-positioned to sustain its growth momentum and capitalize on new opportunities. The bank’s strong financial performance in the first half of 2024 provides a solid foundation for future growth. With a robust balance sheet, growing client deposits, and strategic investments, Al Rajhi Bank is poised to navigate the evolving economic landscape and deliver value to its stakeholders.
The bank’s focus on innovation and digital transformation will be key drivers of its future success. By leveraging technology to enhance its products and services, Al Rajhi Bank aims to meet the changing needs of its customers and stay ahead of the competition. The bank’s commitment to customer-centricity and operational excellence will continue to underpin its growth strategy.
In conclusion, Al Rajhi Bank’s impressive financial results for the first half of 2024 highlight its strong market position and effective management. The approval of substantial dividends further demonstrates the bank’s commitment to delivering value to its shareholders. As the bank continues to execute its strategic initiatives, it is well-positioned to achieve sustainable growth and maintain its leadership in the financial sector.
