Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets, reported a 2.5% decline in Q2 2023 net profit to 4.15 billion riyals ($1.11 billion), compared to SAR 4.25 billion in the same period last year.

The earnings were down as total operating income fell by 4.5% annually due to decreased net financing and investment income, fees from banking services and exchange income.

Total operating expenses, including impairment charges for financing, slipped by 8.4% due to a reduction in other general and administrative costs despite an increase in salaries and staff-related benefits, the bank said in a regulatory filing on Riyadh's Tadawul exchange on Monday.

Net profit for H1 2023 slipped 1.16% year-on-year to SAR 8.29 billion as total operating income declined by 3.5% year-on-year.

Al Rajhi Bank’s board also approved an 11.5% dividend payout at SAR 4.6 billion for the first half of 2023.         

(Editing by Brinda Darasha; brinda.darasha@lseg.com)