Al Rajhi Bank chairman says NPL coverage ratio exceeded 305% by end of 2020

Abdullah Al-Rajhi, Chairman of Al Rajhi Bank

Al Rajhi Bank’s coverage ratio of non-performing loans (NPLs) exceeded 305% by the end of 2020, board chairman Abdullah bin Sulaiman Al-Rajhi said.

The bank reported an over 22% year-on-year (YoY) rise in the 2020 allocated provisions to support its precautionary financial policy and cushion against the potential impact of the COVID-19 pandemic, a move that reflected positively on its balance sheet, Al-Rajhi added.

The bank also maintained all initiatives under Vision 2030, where the Kingdom increased support for small and medium-sized enterprises (SMEs), growing its loan portfolio in this segment by 49%.

Moreover, the lender’s expansion in the home mortgage industry continued to increase the percentage of home ownership among citizens, the top official explained, underlining that the bank’s mortgage loan book surged 92%.

Al Rajhi Bank reported an annual net profit of SAR 10.596 billion for 2020, a rise of 4% compared to a net profit of SAR 10.158 billion a year earlier, Argaam reported