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Al Rajhi Bank, the biggest retail lender in Saudi Arabia, reported a significant jump in net profit for the third quarter, as higher operating income offset impairment costs.
Net profit for the period reached 3.794 billion riyals ($1.01 billion), up by 43 percent year on year, the lender said in a statement to the Saudi Stock Exchange (Tadawul) on Sunday.
On a sequential quarterly basis, Q3 2021 net profit rose 5.2 percent.
The higher net profit came despite a 7.3 percent rise in total operating expenses due to an increase in depreciation expense, and salaries and employees’ related expenses.
In addition, impairment charges rose 27.7 percent to 594 million riyals from 465 million riyals.
A report by Fitch Ratings this month said the pressure on Saudi banks caused by the coronavirus pandemic has eased, as economic activity has gradually increased.
(Writing by Brinda Darasha; editing by Cleofe Maceda)
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