Saudi’s Al Rajhi Bank third-quarter profit dips year-on-year as impairments soar

Saudi Arabia’s Al Rajhi Bank reported 2.66 billion riyals ($709.28 million) in net profit for the third-quarter, a 2.957% drop year-on-year as impairments soared.

The Shariah-compliant bank said in a bourse filing on Sunday (Oct 25) that credit impairment charges rose by 39.9% from 332 million riyals for January through September last year to 465 million riyals this year.

Its net income also dropped as operating expenses increased by 13.5% due to salaries and employee-related benefits, said the Islamic bank.

For this year, Al Rajhi’s July through September performance was better by 9.113% than the second-quarter when it posted 2.436 billion riyals in net profit.

The bank attributed its quarter-on-quarter rise to an increase in net income, mainly from net financing and investment income, net exchange income, and fees from banking services.

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