Saudi Al Rajhi Bank reports 24% rise in Q1 profit

DUBAI, April 27 (Reuters) – Al Rajhi Financial institution (1120.SE), Saudi Arabia’s second-biggest lender, reported a virtually 24% rise in quarterly earnings, fuelled by a soar in internet financing for purchasers, and better funding revenue and charges from banking providers.

The financial institution reported a internet revenue of 4.1 billion riyals ($1.09 billion) for first quarter ended March 31, up 3.34 billion riyals in the identical interval a yr earlier.

The consequence was consistent with a median forecast of 4.056 billion riyals made by analysts in Refintiv Eikon information.
Saudi Arabia’s banking sector is benefiting from increased rates of interest, as a hike by U.S. Federal Reserve is often adopted by the Saudi central financial institution as a result of Saudi riyal’s peg to the U.S. greenback.

S&P World Scores calculates for each 100 foundation level improve in charges, Saudi banks’ internet revenue is prone to

rise 13% and return on fairness an extra 1.5 share factors, based mostly on information from the nation’s 10 listed banks.

Mortgage demand from private-sector companies continues to be sturdy in Saudi Arabia, because the financial system rebounds from the pandemic amid increased oil costs, analysts say.

The Worldwide Financial Fund earlier this month upgraded prime oil exporter Saudi Arabia’s financial development outlook to 7.6% in 2022, citing increased oil output and costs, from 3.2% in 2021. Its earlier forecast was 4.8%.

($1 = 3.7508 riyals)

Reporting by Saeed Azhar, Modifying by Louise Heavens

Our Requirements: The Thomson Reuters Belief Ideas.