Saudi Arabia’s Al-Rajhi Company for Cooperative Insurance posted a 41.15 per cent plunge in net profit before zakat for the first six months of the year compared to the same period last year.
The takaful company’s net profit for H1 hit 55.46 million riyals ($14.8 million) compared to 94.25 million riyals in H1 last year, it reported in a bourse filing on Tuesday.
The company said the fall is due to a decrease in net contributions earned by 62.04 million riyals.
The fall was partly offset by a 69.51 per cent decrease in allowance for doubtful debts, decrease in general and administrative expenses by 4.25 per cent and increase in investment income for both policyholders and shareholders, it said.
For the three months ending March 31, the company posted a 3.42 per cent drop in net profit before zakat compared to the same quarter last year.
Net profit for Q2 was 51.08 million riyals for the quarter, compared to 52.88 million riyals year-on-year.
Al-Rajhi Takaful said the Q2 profit drop is due mainly to the decrease in net contributions earned, by 5.56 per cent.
However, policyholder and shareholder investment income increased by 23.97 per cent and 65.36 per cent, respectively, said the company.
($1 = 3.75 Saudi riyals)
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