Trend Analysis

Trend analysis is a method of analysis to predict the future movement of the company on its
share price, or the gross and net profit, or the stock. It is based on past data about the
performance of chosen data given the overall trends of the market and particular indicators
within the market. We choose the movement of gross and net profit as the indicator to track
the performance of the companies.

Core Capital Ratio (%)

Risk-Weighted Capital Ratio (%)

2013

13.04

14.43

2014

13.832

20.167

2015

14.628

22.392

25
22.39
20.17

20

15

14.43
13.04

13.83

14.63
Core Capital Ratio
Risk-Weighted Capital Ratio

10

0
2013

2014

2015

We can see that the Core Capital Ratio in Al-Rajhi Bank increasing steadily based on
the graph above. Starting from 2013, the ratio is 13.04%. Moving along to the year of 2014, it
is increasing around 0.8% which is 13.832%. In 2015, it also increase around 0.8% to
14.628%. As the steadily increasing for the Core Capital Ratio, we might predicted that for
the next year, in 2016, the ratio will be increasing, also around 0.8%.

Gross Profit

Amount

Net Profit

Increased from

Amount
Increased from

(RM000)

2013 (RM000)

(RM000)

2013 (RM000)

2013

5,753

3,147

2014

10,002

4249

4,802

1655

2015

22,353

16600

11,759

8612

The above table shows the amount of the Gross and Net Profit during the period of 2013 to
2015. The amount of gross profit has increased from RM 5,753,000 in 2013 to RM
22,353,000. Further, the amount of net profit in RM 3,147,000 has also increased to RM
11,759,000 in 2015. It shows the rising trend.

25000
22353

20000
15000
10000
5000 5753
3147
0
2013

10002

11759

4802
2014

2015

Figure 1: Gross and Net Profit in RM000

Gross Profit
Net profit

2013
2014
2015

Gross Profit

Percentage Increased

Net Profit

Percentage Increased

(%)
100
173.86
188.55

from 2013 (%)

0
73.86
288.55

(%)
100
152.59
373.66

from 2013 (%)

0
52.59
273.88

600

273.66

500
400
300

288.55

Net Profit
Gross Profit

200
100
0 0
2013

52.59
73.86
2014

2015

The above table and graph show the Gross Profit and Net Profit in the term of percentage,
also during in 2013 to 2015. In 2013, because of we started using the year of 2013 as the
starting point in seeing the movement of trend in this bank. That is why it is stated as 0% in
2013. As we can see, it is increasing to 288.55% in 2015. However, for the Net Profit of AlRajhi Bank, for 0% in 2013, it has increased to 273.66% and it is as not much as the
increasing in Gross Profit.

Total Assets
Percentag
RM 000
e
6 754 636
100
7 270 933
107.64
7 315 392
108.30

2013
2014
2015

Percentage of Total Assets

110
108

107.64

108.3

106
104

Percentage

102
100 100
98
96
94
2013

2014

2015

We can see that, the Total Assets from 2013 (RM 6,754,636,000) was increasing by
7.64% into RM 7,270,933,000 in the year of 2014. It increased substantially. However, from
2014, it only increasing slightly by 8.3% compared to 2013, where the total asset is RM
7,315,392,000.