Saudi Arabia’s Al Rajhi Bank’s profit for 2019 increased by 2.7 times on higher income and lower zakat expenses.
The bank’s profit reached 10.16 billion riyals ($2.71 billion) in 2019 from 3.77 billion riyals in 2018, the Shariah-compliant financial institution reported in a bourse filing on Tuesday (Feb 11).
Net income grew by 12.49% because of a rise in net special commission income, income fees from banking services, net exchange income, and other operating income.
Significantly, zakat expenses decreased by 81.7% due to a change in accounting policy for reporting zakat.
In the final quarter of 2018, Al Rajhi entered into a settlement of zakat claims with the government for periods up to and including 2017. The bank has reported zakat through the statement of income for the year ending 2019 and restated the year ending 2018. It previously reported zakat in the statement of changes in equity.
Al Rajhi’s total operating expenses increased by 13.6% due to a rise in general and other administrative expenses, and depreciation.
The bank also picked up a higher impairment charge for financing, from 1.53 billion riyals in 2018 to 1.77 billion riyals last year, an increase of 15.7%.
The bank’s assets increased by 5.51% to 384.09 billion riyals ($102.42 billion) in 2019.
Customer deposits reached 312.41 billion riyals, a growth of 6.29%.
($1 = 3.75 Saudi riyals)
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