AL RAJHI BANKING AND INVESTMENT CORPORATION
(A SAUDI JOINT STOCK COMPANY)
INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
As of and for the three-month period ended 31 March 2024
CONTENTS OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Auditors' Report
Interim Condensed Consolidated Statement of Financial Position Interim Condensed Consolidated Statement of Income
Interim Condensed Consolidated Statement of Comprehensive Income
Interim Condensed Consolidated Statement of Changes in Shareholders' Equity Interim Condensed Consolidated Statement of Cash Flows
Notes to the Interim Condensed Consolidated Financial Information
- General
- Basis of preparation
- Impact of changes in accounting policies due to adoption of new standards
- Cash and balances with Central Banks
- Due from banks and other financial institutions, net
- Investments, net
- Shariah compliant derivatives
- Financing, net
- Due to banks and other financial institutions
- Customers' deposits
- Sukuk issued
- Equity Sukuk
- Earnings per share
- Commitments and contingencies
- Other reserves
- Cash and cash equivalents
- Operating segments
- Fair values of financial assets and liabilities
- Dividends
- Capital adequacy
- IBOR Transition (Profit Rate Benchmark Reforms)
- Related party transactions
- Comparative Figures
- Approval of the Board of Directors
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20-22
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29
AL RAJHI BANKING AND INVESTMENT CORPORATION (A SAUDI JOINT STOCK COMPANY)
Interim Condensed Consolidated Statement of Financial Position
(SAR'000)
31 March | 31 December | 31 March | ||
As at | Note | 2024 | 2023 | 2023 |
(Unaudited) | (Audited) | (Unaudited) | ||
Assets | ||||
Cash and balances with Central Banks | 4 | 43,171,472 | 41,767,641 | 45,624,860 |
Due from banks and other financial institutions, net | 5 | 8,913,463 | 9,506,673 | 13,009,960 |
Investments, net | 6 | 142,071,746 | 133,375,565 | 113,925,737 |
Positive fair value of Shariah compliant derivatives | 7 | 1,089,958 | 877,676 | 839,892 |
Financing, net | 8 | 608,989,943 | 594,204,806 | 577,010,771 |
Other assets, net | 14,841,995 | 11,716,865 | 10,415,878 | |
Investment in associate | 967,907 | 923,046 | 811,017 | |
Investment properties, net | 1,365,649 | 1,362,658 | 1,359,335 | |
Property, equipment, and right of use assets, net | 13,056,990 | 12,852,774 | 11,525,696 | |
Goodwill and other intangibles, net | 1,522,860 | 1,510,568 | 1,272,565 | |
Total assets | 835,991,983 | 808,098,272 | 775,795,711 | |
Liabilities and equity | ||||
Liabilities | ||||
Due to banks and other financial institutions | 9 | 82,835,542 | 97,246,889 | 88,085,785 |
Customers' deposits | 10 | 603,978,150 | 573,100,607 | 556,196,749 |
Negative fair value of Shariah compliant derivatives | 7 | 1,021,677 | 793,541 | 748,455 |
Sukuk issued | 11 | 8,090,714 | 3,789,117 | - |
Other liabilities | 31,794,199 | 26,408,687 | 31,537,404 | |
Total liabilities | 727,720,282 | 701,338,841 | 676,568,393 | |
Equity | ||||
Share capital | 40,000,000 | 40,000,000 | 40,000,000 | |
Statutory reserve | 33,442,996 | 33,442,996 | 29,287,706 | |
Other reserves | 15 | (441,833) | (96,606) | (371,055) |
Retained earnings | 16,502,147 | 16,913,041 | 13,810,667 | |
Equity attributable to shareholders of the Bank | 89,503,310 | 90,259,431 | 82,727,318 | |
Equity sukuk | 12 | 18,768,391 | 16,500,000 | 16,500,000 |
Total equity | 108,271,701 | 106,759,431 | 99,227,318 | |
Total liabilities and equity | 835,991,983 | 808,098,272 | 775,795,711 |
The accompanying notes from 1 to 24 form an integral part of these interim condensed consolidated
financial information.
Authorized Board Member | Chief Executive Officer | Chief Financial Officer |
1
AL RAJHI BANKING AND INVESTMENT CORPORATION (A SAUDI JOINT STOCK COMPANY)
Interim Condensed Consolidated Statement of Income (Unaudited)
(SAR'000)
For the three-month period ended | |||
31 March | |||
Note | 2024 | 2023 | |
Income | |||
Gross financing and investment income | 10,802,601 | 8,767,895 | |
Gross financing and investment return | (5,155,730) | (3,642,637) | |
Net financing and investment income | 5,646,871 | 5,125,258 | |
Fee from banking services, income | 2,470,243 | 2,343,960 | |
Fee from banking services, expenses | (1,431,718) | (1,134,012) | |
Fee from banking services, net | 1,038,525 | 1,209,948 | |
Exchange income, net | 294,708 | 297,913 | |
Other operating income, net | 249,010 | 147,503 | |
Total operating income | 7,229,114 | 6,780,622 | |
Expenses | |||
Salaries and employees' related benefits | 898,842 | 872,108 | |
Depreciation and amortization | 450,082 | 362,851 | |
Other general and administrative expenses | 544,822 | 565,177 | |
Total operating expenses before credit impairment charge | 1,893,746 | 1,800,136 | |
Impairment charge for financing and other financial assets, net | 8 | 421,209 | 358,780 |
Total operating expenses | 2,314,955 | 2,158,916 | |
Net income for the period before Zakat | 4,914,159 | 4,621,706 | |
Zakat Expense | (509,401) | (476,532) | |
Net income for the period | 4,404,758 | 4,145,174 | |
Basic and diluted earnings per share (SAR) | 13 | 1.05 | 0.99 |
The accompanying notes from 1 to 24 form an integral part of this interim condensed consolidated financial
information.
Authorized Board Member | Chief Executive Officer | Chief Financial Officer |
2
AL RAJHI BANKING AND INVESTMENT CORPORATION (A SAUDI JOINT STOCK COMPANY)
Interim Condensed Consolidated Statement of Comprehensive Income (Unaudited)
(SAR'000)
For the three-month
ended 31 March
20242023
Net income for the period | 4,404,758 | 4,145,174 |
Other comprehensive income:
Items that will not be reclassified to the interim condensed consolidated statement of income in subsequent periods:
- Net change in fair value of FVOCI equity investments
- Share in FVOCI from associate
(7,124) | (4,098) |
4,851 | (14,125) |
Items that may be reclassified to the interim condensed consolidated statement of income in subsequent periods:
- Exchange difference on translating foreign operations | (24,602) | (6,549) |
- Net change in fair value of FVOCI sukuk and structured products
investments | (220,224) | 14,809 |
- Cash flow hedge effective portion of change in the fair value | (71,496) | 69,429 |
- Fair Value hedge | 10,478 | - |
- Employee share plan reserve | (37,110) | - |
Total other comprehensive (loss) / income | (345,227) | 59,466 |
Total comprehensive income for the period | 4,059,531 | 4,204,640 |
The accompanying notes from 1 to 24 form an integral part of these interim condensed consolidated financial information.
Authorized Board Member | Chief Executive Officer | Chief Financial Officer |
3
AL RAJHI BANKING AND INVESTMENT CORPORATION (A SAUDI JOINT STOCK COMPANY)
Interim Condensed Consolidated Statement of Changes in Shareholders' Equity (Unaudited)
(SAR'000)
Statutory | Retained | Proposed | Total equity | ||||||||
Share capital | Other reserves | attributable to | |||||||||
For the three-month period ended 31 March 2024 | gross | Sukuk | Total equity | ||||||||
reserve | earnings | shareholders of | |||||||||
dividends | |||||||||||
Note | the Bank | ||||||||||
Balance at 31 December 2023 | 40,000,000 | 33,442,996 | (96,606) | 16,913,041 | - | 90,259,431 | 16,500,000 | 106,759,431 | |||
Net income for the period | - | - | - | 4,404,758 | - | 4,404,758 | - | 4,404,758 | |||
Net change in fair value of FVOCI equity investments | - | - | (7,124) | - | - | (7,124) | - | (7,124) | |||
Share in FVOCI from associate | - | - | 4,851 | - | - | 4,851 | - | 4,851 | |||
Exchange difference on translation of foreign operations | - | - | (24,602) | - | - | (24,602) | - | (24,602) | |||
Net change in fair value of FVOCI sukuk and structured products | |||||||||||
investments | - | - | (220,224) | - | - | (220,224) | - | (220,224) | |||
Cash flow hedge Effective portion of change in the fair value | - | - | (71,496) | - | - | (71,496) | - | (71,496) | |||
Fair value hedge | - | - | 10,478 | - | - | 10,478 | - | 10,478 | |||
Employee share plan reserve | - | - | (37,110) | - | - | (37,110) | - | (37,110) | |||
Total other comprehensive loss recognized in shareholders' equity | - | - | (345,227) | - | - | (345,227) | - | (345,227) | |||
Total comprehensive income for the period | - | - | (345,227) | 4,404,758 | - | 4,059,531 | - | 4,059,531 | |||
Equity Sukuk issued | 12 | - | - | - | - | - | - | 2,268,391 | 2,268,391 | ||
Equity Sukuk costs | - | - | - | (215,652) | - | (215,652) | - | (215,652) | |||
Dividend for annual year 2023 | 19 | - | - | - | (4,600,000) | - | (4,600,000) | - | (4,600,000) | ||
Balance at 31 March 2024 | 40,000,000 | 33,442,996 | (441,833) | 16,502,147 | - | 89,503,310 | 18,768,391 | 108,271,701 | |||
For the three-month period ended 31 March 2023 | |||||||||||
Balance at 31 December 2022 | 40,000,000 | 29,287,706 | (427,569) | 9,864,898 | 5,000,000 | 83,725,035 | 16,500,000 | 100,225,035 | |||
Net income for the period | - | - | - | 4,145,174 | - | 4,145,174 | - | 4,145,174 | |||
Net change in fair value of FVOCI equity investments | - | - | (4,098) | - | - | (4,098) | - | (4,098) | |||
Share in FVOCI from associate | - | - | (14,125) | - | - | (14,125) | - | (14,125) | |||
Exchange difference on translation of foreign operations | - | - | (6,549) | - | - | (6,549) | - | (6,549) | |||
Net change in fair value of FVOCI Sukuk and Structured products | |||||||||||
investments | - | - | 14,809 | - | - | 14,809 | - | 14,809 | |||
Cash flow hedge Effective portion of change in the fair value | - | - | 69,429 | - | - | 69,429 | - | 69,429 | |||
Total other comprehensive income recognized in shareholders' equity | - | - | 59,466 | - | - | 59,466 | - | 59,466 | |||
Total comprehensive income for the period | - | - | 59,466 | 4,145,174 | - | 4,204,640 | - | 4,204,640 | |||
Disposal of FVOCI equity insturments | - | - | (2,952) | 2,952 | - | - | - | - | |||
Equity Sukuk costs | - | - | - | (202,357) | - | (202,357) | - | (202,357) | |||
Dividend for annual year 2022 | 19 | - | - | - | - | (5,000,000) | (5,000,000) | - | (5,000,000) | ||
Balance at 31 March 2023 | 40,000,000 | 29,287,706 | (371,055) | 13,810,667 | - | 82,727,318 | 16,500,000 | 99,227,318 | |||
The accompanying notes from 1 to 24 form an integral part of these interim condensed consolidated financial information | |||||||||||
Authorized Board Member | Chief | Executive Officer | Chief Financial Officer |
4
AL RAJHI BANKING AND INVESTMENT CORPORATION (A SAUDI JOINT STOCK COMPANY)
Interim Condensed Consolidated Statement of Cash Flows (Unaudited)
(SAR'000)
For the three-month period ended 31 March | Note | 2024 | 2023 |
Cash Flows from operating activities | |||
Net income before Zakat | 4,914,159 | 4,621,706 | |
Adjustments to reconcile net income before zakat to net cash from | |||
operating activities: | |||
(Gain) / loss on investments held at fair value through statement of income (FVIS) | (39,073) | 41,736 | |
Depreciation on property, equipment and right of use assets | 386,941 | 317,609 | |
Depreciation on investment properties | 5,441 | 5,523 | |
Amortization of other intangibles | 57,700 | 39,719 | |
Gain on sale of property and equipment, net | (5,524) | (1,969) | |
Impairment charge for financing and other financial assets, net | 8 | 421,209 | 358,780 |
Share in profit of an associate | (40,010) | (3,182) | |
Dividend income | (34,988) | (27,228) | |
Accretion/amortisation relating to Sukuk investments, net | (38,976) | (7,671) | |
Profit charge against lease obligations | 6,733 | 10,825 | |
Fair value adjustment for Shariah compliant derivatives | 15,854 | (56,699) | |
Rental income from investment properties | (27,735) | (26,709) | |
Employee share plan reserve | (37,110) | - | |
(Increase) / decrease in operating assets | |||
Statutory deposit with SAMA and other central banks | (854,933) | (399,681) | |
Due from banks and other financial institutions | 756,962 | 6,574,789 | |
Financing | (15,206,346) | (9,031,437) | |
FVIS investments, net | (594,385) | (39,781) | |
Other assets, net | (3,149,732) | (1,910,550) | |
Increase / (decrease) in operating liabilities | |||
Due to banks and other financial institutions | (14,411,347) | 17,246,668 | |
Customers' deposits | 30,877,543 | (8,727,939) | |
Other liabilities | 1,185,354 | 1,499,299 | |
Profit payment against lease obligations | (6,733) | (10,825) | |
Net cash generated from operating activities before Zakat | 4,181,004 | 10,472,983 | |
Zakat paid | (864,843) | - | |
Net cash generated from operating activities | 3,316,161 | 10,472,983 |
The accompanying notes from 1 to 24 form an integral part of these interim condensed consolidated
financial information.
Authorized Board Member | Chief Executive Officer | Chief Financial Officer |
5
AL RAJHI BANKING AND INVESTMENT CORPORATION (A SAUDI JOINT STOCK COMPANY)
Interim Condensed Consolidated Statement of Cash Flows (Unaudited)
(SAR'000)
For the three-month period ended 31 March | Note | 2024 | 2023 |
Cash flows from investing activities | |||
Purchase of property and equipment | (562,032) | (494,154) | |
Proceeds from disposal of property and equipment | 5,745 | 3,096 | |
Other intangibles assets | (69,992) | (97,737) | |
Purchase of FVOCI investments | (2,513,235) | (2,114,878) | |
Proceeds from disposal of FVOCI investments | 11,550 | ||
Proceeds from maturities of investments recorded at amortized cost | 582,267 | 1,702,608 | |
Purchase of investments held at amortised cost | (6,373,949) | (12,172,488) | |
Purchase of investment properties | (5,023) | - | |
Dividend income | 34,988 | 27,228 | |
Rental income from investment properties | 27,735 | 26,709 | |
Net cash used in investing activities | (8,873,496) | (13,108,066) | |
Cash flows from financing activities | |||
Equity Sukuk costs | (215,652) | (202,357) | |
Equity Sukuk issuance | 12 | 2,268,391 | - |
Payments against lease obligation | (84,351) | (61,057) | |
Sukuk issued | 11 | 4,301,597 | - |
Net cash generated from / (used in) financing activities | 6,269,985 | (263,414) | |
Net increase / (decrease) in cash and cash equivalents | 712,650 | (2,898,497) | |
Cash and cash equivalents at the beginning of the period | 16 | 12,435,642 | 26,199,150 |
Cash and cash equivalents at end of the period | 16 | 13,148,292 | 23,300,653 |
Financing and investment income received during the period | 11,127,877 | 8,857,187 | |
Financing and investment return paid during the period | (4,662,309) | (2,991,677) | |
Supplemental Non-cash transactions: | |||
ROU assets | 29,347 | 11,496 | |
Lease Liability | 39,952 | 15,044 | |
Net change in fair value of FVOCI investments | (227,348) | 10,711 |
The accompanying notes from 1 to 24 form an integral part of these interim condensed consolidated
financial information.
Authorized Board Member | Chief Executive Officer | Chief Financial Officer |
6
AL RAJHI BANKING AND INVESTMENT CORPORATION (A SAUDI JOINT STOCK COMPANY)
Notes to the Interim Condensed Consolidated Financial Information(Unaudited)
(SAR'000)
-General
Al Rajhi Banking and Investment Corporation, a Saudi Joint Stock Company, (the "Bank"), was formed and licensed pursuant to Royal Decree No. M/59 dated 3 Dhul Qadah 1407H (corresponding to 29 June 1987) and in accordance with Article 6 of the Council of Ministers' Resolution No. 245, dated 26 Shawal 1407H (corresponding to 23 June 1987).
The Bank operates under Commercial Registration No. 1010000096 and its Head Office is located at the following address:
Al Rajhi Bank
8467 King Fahd Road - Al Muruj Dist. Unit No 1
Riyadh 12263 - 2743 Kingdom of Saudi Arabia
The objectives of the Bank are to carry out banking and investment activities in accordance with its Articles of Association and By-laws, the Banking Control Law and the Council of Ministers Resolution referred to above. The Bank is engaged in banking and investment activities for its own account and on behalf of others inside and outside the Kingdom of Saudi A rabia ("KSA") through of 534 branch (Dec 31, 2023: 545 branch and Mar 31, 2023: 538 branch) and subsidiaries. The Bank has established certain subsidiary companies (together with the Bank hereinafter referred to as the "Group") in which it owns all or the majority of their shares.
Shari'a Authority
As a commitment from the Bank for its activities to be in compliance with Islamic Shari'a legislations, since its inception, the Bank has established a Shari'a Authority to ascertain that the Bank's activities are subject to its approval and control. The Shari'a Authority has reviewed the Bank's activities and issued the required decisions thereon.
The Bank is regulated by the Saudi Central Bank (SAMA).
(a) | Subsidiaries | ||||||
Name of subsidiary | Functional | Shareholding | |||||
Currency | 2024 | 2023 | |||||
Al Rajhi Capital Company - KSA | SAR | 100% | 100% A Saudi Closed Joint Stock Company | ||||
authorized by the Capital Market Authority to | |||||||
carry on securities business in the activities of | |||||||
Dealing/brokerage, | Managing | assets, | |||||
Advising, Arranging, and Custody. | |||||||
Management | and Development for | SAR | 100% | 100% A limited liability company registered in | |||
Human Resources Company - KSA | Kingdom of Saudi Arabia to provide | ||||||
recruitment services. | |||||||
Al Rajhi Bank - Kuwait | KWD | 100% | 100% A foreign branch registered with the Central | ||||
Bank of Kuwait. | |||||||
Al Rajhi Bank - Jordan | JOD | 100% | 100% A foreign branch operating in Hashemite | ||||
Kingdom of Jordan, providing all financial, | |||||||
banking, and investments services and | |||||||
importing and trading in precious metals and |
stones in accordance with Islamic Sharia'a rules and under the applicable banking law.
7
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Disclaimer
Al Rajhi Banking & Investment Corporation SJSC published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 13:59:03 UTC.