Praises be to Allah, the Almighty, the Lord of the worlds, and Prayers and Peace be upon his Messenger Prophet Mohammed, and his Descendants and all his followers,
Dear Bank AlJazira Shareholders,Greetings….
On behalf of my honorable fellow members of the Board of Directors, it gives me great pleasure to present to you Bank AlJazira’s annual report, which sums up the development of the financial performance and operating activities of the bank for the year 2022.
The year 2022 was filled with challenges and difficult repercussions, which undoubtedly affected the inflation rate and contributed to a significant decline in global growth. In turn, by the grace of God Almighty and the vision of our wise leadership, the Saudi economy recorded a positive shift among all sectors during 2022, mainly in the financial sector, which led to achieving a growth rate of 8.7%, the highest among the world’s largest economies in the G20, according to the latest reports issued by the World Bank. Alongside this growth, Bank AlJazira continues to achieve its strategy towards growth and excellence in order to contribute effectively to advancing the economic development in the Kingdom and fulfilling the aspirations of the shareholders.
This report comprises a detailed overview of Bank AlJazira’s performance for the year 2022, where positive indicators continue to show in the Bank’s various main business operations. The great efforts made by the executive management and employees of Bank AlJazira, as well as the competencies and the capabilities of the Bank’s various departments alongside the leadership of the Bank’s business operations, helped achieve strong financial performance and sustainable returns on investments during 2022.
In terms of the Bank’s financial performance, net income at the end of the year increased by 10.24%. – After deducting Zakat and income tax – and within the same context, net financing increased to reach SAR 70.6 billion by the end of 2022, achieving an increase of 13%, and during the same period, the investment portfolio grew by 10.2% compared to the previous year. Earnings per share amounted to SAR 1.26 for the year 2022, total assets increased by 12.7% compared to the previous year, and total deposits reached SAR 86.0 billion, achieving an increase of SAR 7.7 billion by the end of 2022, amounting to 9.7%.
And within the framework of the Executive Management’s commitment to respond to the dynamic market trends, Bank AlJazira continued to enhance the role of governance through annual reviews of all internal policies, updating all the Bank’s governance regulations, as well as the work regulations of the Board and related committees and policies, in accordance with the principles of sound corporate governance. Bank AlJazira is always seeking to implement continuous improvements to the governance of operational activities, benefiting from the latest tools and technologies, including building a strong customer base in order to make a positive impact in support of Vision 2030, the Financial Sector Development Program (FSDP), and achieving digitalization through bold partnerships with numerous Fintech companies, which will lead to further growth in the volume of the bank’s business operations.
During the past year, Bank AlJazira continued to provide financial plans that enable its customers to save, invest and plan for their future, and the Bank looks forward to providing valuable and unique offers, enriching lives through financial well-being, focusing on the market and small and medium enterprises, supporting them with “Kafalah” programs, and to be a bank that focuses on individuals and combines the power of one bank, between AlJazira Capital and the Private Banking and Wealth Management Group.
And because success is based on the human capital, after the grace of the Almighty, which represents the real wealth of any successful institution, Bank AlJazira continued during 2022, within the framework of the “Tawteen Program” and based on the senior management’s confidence in national competencies, to work on increasing the Saudization rate, by offering the “Future Leaders” Program to attract the top Saudi talents and opening internship opportunities for university students. The number of training days reached 10,255 days in various fields during 2022, which contributed to increasing the Saudization rate to reach 95.77%, in addition to enhancing women’s participation in the workforce, as the percentage of females increased to 21.3% during the past year. In addition to that, Bank AlJazira launched a comprehensive transformation project for elevating the human capital’s culture in order to achieve the best work environment, and to provide the skills required to support the Bank’s strategy aimed at improving the self-services of the human capital system, enabling us to achieve the goal of efficiency of daily operations.
From this standpoint, I can only extend, on behalf of all Bank AlJazira employees and members of the Board of Directors, my gratitude and appreciation to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud – may God protect him – and to the visionary and patron of Vision 2030, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, for their support, concern and interest in all government and private sectors, which is reflected in our financial and economic position globally.
I would also like to extend my thanks and appreciation to the Ministry of Finance, the Saudi Central Bank, and all concerned authorities, for their unlimited support to the Saudi financial sector, which we have seen directly during the past years. Also, a special thanks to all the shareholders and distinguished customers of Bank AlJazira who gave us their trust, which reflected positively on the results of the bank’s business operations, and we promise them to continue to exert maximum efforts to be worthy of this precious trust in the years to come.
Last but not least, I would like to thank my esteemed colleagues and members of the Board of Directors for their expertise and advice, which undoubtedly contributed in strengthening Bank AlJazira’s position at the local and international levels, and to all my fellow employees – success partners – who tirelessly exerted the highest efforts to achieve the aspirations of all stakeholders.
Wishing our prestigious financial organization further development, growth and prosperity to achieve the best results during 2023 and beyond.
Regards,