Al Rajhi Banking and Investment : INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)

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

1. General
2. Basis of preparation
3. Impact of changes in accounting policies due to adoption of new standards
4. Cash and balances with Central Banks
5. Due from banks and other financial institutions, net
6. Investments, net
7. Shariah compliant derivatives
8. Financing, net
9. Due to banks and other financial institutions
10. Customers' deposits
11. Sukuk issued
12. Equity Sukuk
13. Earnings per share
14. Commitments and contingencies
15. Other reserves
16. Cash and cash equivalents
17. Operating segments
18. Fair values of financial assets and liabilities
19. Dividends
20. Capital adequacy
21. IBOR Transition (Profit Rate Benchmark Reforms)
22. Related party transactions
23. Comparative Figures
24. Approval of the Board of Directors

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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