In 2018, Al Rajhi Bank managed to generate a total operating income of SAR 17.3 billion that was an increase of almost 9% of that achieved in 2017. In the same time, Al Rajhi Bank also managed to increase its net income to almost SAR 10.3 billion which was an increase by 4% of that achieved in 2017. In addition, the net income to the total operating income increased to reach almost 60%.
Furthermore, the total assets of Al Rajhi Bank increased by 6% compared to 2017 in which it reached SAR 365 billion. This increase was attributed to the increase of Due from Banks & Other Financial Institutions account which was almost SAR 11 billion in 2017 and reached almost SAR 31 billion in 2018. It is worth noting that the Customers’ Deposits also increased from SAR 273 billion in 2017 and reached SAR 294 billion in 2018. Additionally, the capital structure of Al Rajhi Bank is 13% Equity and 87% Liabilities in 2018.
Moreover, the cash ratio of Al Rajhi Bank decrease to 117%, while its total equity to total assets and total equity to total deposits also decreased to 13% and 17% respectively in 2018. It is worth mentioning that Al Rajhi Bank has lent 80% of its customers’ deposits which is a considerable decrease compared to 86% of that in 2017. This is due to the increase of the total customers’ deposits of around SAR 20 billion.
Lastly, Al-Rajhi Bank successfully managed to distribute dividends for the fifth consecutive year in which the total dividends to total deposits was still around 1%.
2. Financial Analysis of Al-Rajhi Bank - KSA
TARIQ AL-BASHA 2
Contents
EXECUTIVE SUMMARY................................................................................................................................................................................................... 3
SELECTED RATIOS ............................................................................................................................................................................................................. 4
HORIZONTAL ANALYSIS...................................................................................................................................................................................................... 5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (“BALANCE SHEET”) ....................................................................................................................... 5
CONSOLIDATED STATEMENT OF INCOME (“PROFIT & LOSS STATEMENT”) ........................................................................................................................ 6
VERTICAL ANALYSIS........................................................................................................................................................................................................... 7
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (“BALANCE SHEET”) ....................................................................................................................... 7
CONSOLIDATED STATEMENT OF INCOME (“PROFIT & LOSS STATEMENT”) ........................................................................................................................ 8
FINANCIAL STATEMENTS .................................................................................................................................................................................................... 9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (“BALANCE SHEET”) ....................................................................................................................... 9
CONSOLIDATED STATEMENT OF INCOME (“PROFIT & LOSS STATEMENT”) ...................................................................................................................... 10
3. Financial Analysis of Al-Rajhi Bank - KSA
TARIQ AL-BASHA 3
EXECUTIVE SUMMARY
In 2018, Al Rajhi Bank managed to generate a total operating income of SAR 17.3 billion that was an increase of almost 9% of that achieved in
2017. In the same time, Al Rajhi Bank also managed to increase its net income to almost SAR 10.3 billion which was an increase by 4% of that
achieved in 2017. In addition, the net income to the total operating income increased to reach almost 60%.
Furthermore, the total assets of Al Rajhi Bank increased by 6% compared to 2017 in which it reached SAR 365 billion. This increase was attributed
to the increase of Due from Banks & Other Financial Institutions account which was almost SAR 11 billion in 2017 and reached almost SAR 31 billion
in 2018. It is worth noting that the Customers’ Deposits also increased from SAR 273 billion in 2017 and reached SAR 294 billion in 2018. Additionally,
the capital structure of Al Rajhi Bank is 13% Equity and 87% Liabilities in 2018.
Moreover, the cash ratio of Al Rajhi Bank decrease to 117%, while its total equity to total assets and total equity to total deposits also decreased
to 13% and 17% respectively in 2018. It is worth mentioning that Al Rajhi Bank has lent 80% of its customers’ deposits which is a considerable
decrease compared to 86% of that in 2017. This is due to the increase of the total customers’ deposits of around SAR 20 billion.
Lastly, Al-Rajhi Bank successfully managed to distribute dividends for the fifth consecutive year in which the total dividends to total deposits was
still around 1%.