Saudi National Bank's Profits Grow 18% in 2025 Surpassing Expectations Thanks to Operational Activities

SadaNews - The profits of the Saudi National Bank, the largest bank in the Kingdom by assets, increased by 18% in 2025 to reach 25 billion riyals, significantly surpassing expectations, thanks to a combination of improved operational activities and reduced expenses.

The bank's operational activities, which recorded a total income of 39.2 billion riyals, were supported by the rise in net income from financing and investments, banking service fees, as well as foreign currency exchange income, alongside an increase in total investment income, according to a disclosure published on the Saudi stock market "Tadawul" today, Tuesday. Bloomberg's average estimates indicated a net profit of 23.69 billion riyals.

The bank's shares closed up by 3.4%, marking its highest pace since late September, ending the session at 44.6 riyals, the highest closing level recorded in just over 3 years.

Loan Growth Surpasses Deposits

The bank was listed on the stock market in 2014, with a market value at the time of listing of 90 billion riyals, compared to 258.8 billion riyals at the end of yesterday's session, while its capital increased from 20 billion riyals then to 60 billion riyals currently. The Public Investment Fund owns 37.2% of the bank.

This positive performance follows four years after "Al-Ahli" acquired "Samba Financial Group" in 2021 through a major merger that made it the largest bank in Saudi Arabia and the third largest bank in the Gulf in terms of asset size.

Customer deposits recorded a growth of 9.7% in 2025, the highest growth rate since the acquisition year, while the loan portfolio grew by 11.5%, and credit loss provisions amounted to 1.03 billion riyals during 2025, a slight increase of 1.5%.

Saudi banks are experiencing a liquidity squeeze with increased lending rates outpacing deposit growth amidst record financing operations for individuals and companies, especially projects linked to the Kingdom's Vision 2030, which has prompted banks to turn to external markets for liquidity.

Since the beginning of this year, the National Bank has issued Sukuk worth 1 billion dollars with an annual yield of 6.15%.

This issuance came after the bank sold debt instruments in US dollars worth 1.25 billion dollars last year at a yield of 6%, and also issued Sukuk denominated in Saudi riyals worth 1.73 billion riyals at a yield of 6%.