National Commercial Bank is one of the most prominent financial institutions in the Kingdom of Saudi Arabia, a well-established name in the banking sector since its founding in 1953 in Jeddah. Although it changed its name to Saudi National Bank after merging with Samba Bank in 2021, the 'National Commercial Bank' still holds significant sentimental value among investors and followers of the Saudi financial market. The bank is among the largest components of the main market index (TASI) and plays a major role in Saudi stock trading, benefiting from a broad customer base and a diverse business model that includes retail and corporate banking, Islamic and conventional financing, investment services, and treasury.
In light of recent economic developments in the Kingdom, National Commercial Bank emerges as a strategic partner in financing major national projects and a key supporter of Vision 2030. The bank is characterized by its strong financial position, with the latest financial data indicating growth in profits and revenues amid an evolving competitive environment and strict regulatory oversight by the relevant authorities. In this comprehensive article, we explore everything of interest to investors and stakeholders regarding National Commercial Bank: from its history, structure, and financial performance to its position in the Saudi banking sector, analyzing the latest results and developments, and answering the most common questions about it.
Historical Overview of National Commercial Bank and Its Development
National Commercial Bank was established in 1953 in Jeddah to be the first national commercial bank in the Kingdom of Saudi Arabia. It began its journey as a trusted provider of traditional banking services for individuals and businesses, gradually expanding to cover most regions of the Kingdom with a vast network of branches and ATMs distributed across all cities and governorates.
The bank has witnessed pivotal transformation milestones, including capital increases and an expanded customer base, making it the largest bank in Saudi Arabia in terms of deposits and number of branches before merging with Samba Bank. In 2021, this merger formed a new entity named 'Saudi National Bank', combining the rich experience of National Commercial Bank with Samba Bank's leadership in international investment services.
Today, National Commercial Bank (now Saudi National Bank) stands at the forefront of the local banking sector, relying on a long legacy of trust, innovation, and strong relationships with both the government and private sectors.
Ownership Structure and Management: Government Role and Institutional Independence
The ownership of National Commercial Bank is characterized by strategic uniqueness; the Saudi government, through the Public Investment Fund, holds more than 50% of its capital. This government role reflects the national importance of the bank and provides it with institutional support during various economic times while maintaining the independence of its executive management in making operational and investment decisions.
The bank's board of directors comprises a selection of banking and management expertise, overseeing the implementation of policies that enhance governance, risk management, and achieve growth and expansion objectives. Following the merger with Samba, the bank underwent an administrative restructuring that included merging departments and unifying work systems, focusing on developing national competencies and benefiting from global best practices in banking operations.
This combination of government support and professional management provides the bank with significant flexibility in facing economic challenges and expanding national initiatives such as Vision 2030 projects.
Business and Services Sector: Diversity Between Individuals, Corporates, and Investments
National Commercial Bank operates across several key sectors, including:
- Retail Banking: Offering current and savings accounts, personal and real estate financing, banking cards, and savings and investment products. The bank places great importance on digital transformation in this sector through mobile and online banking applications and the development of electronic payment services.
- Corporate and Institutional Banking: The bank is a key partner for both public and private sectors in financing major projects, providing cash management solutions, diverse financing products, and treasury and investment services, in addition to international trade financing.
- Islamic and Conventional Services: The bank offers a wide range of Sharia-compliant products alongside traditional banking services, allowing it to reach a broad customer segment.
- Investment and Treasury: The bank provides asset management, financial brokerage, corporate financing, risk management, along with Sukuk, bonds, and other investment products.
This diversity allows National Commercial Bank to achieve revenue balance and reduce risks associated with reliance on a single sector.
Digital Transformation and Innovation: National Commercial Bank's Strategy for Future Leadership
National Commercial Bank places great importance on digital transformation and banking service innovation, recognizing the increasing role of technology in the financial sector and changing customer behavior. The bank launched the 'Sahla' online banking platform and digital loyalty programs, along with advanced applications for individuals that allow account opening and financing management without the need to visit branches.
The bank has also partnered with FinTech companies to provide innovative payment and financing solutions and participates in open banking projects to facilitate integration with third-party applications. These initiatives aim to enhance customer experience, improve operational efficiency, and increase market share, especially among youth and digital customers.
Amid rising competition in the Saudi market, the bank is keen to continue developing its digital platforms and adopting the latest artificial intelligence and data analysis technologies to improve service quality and customize products.
Financial Performance Analysis: Growth and Revenues in Light of 2024-2025 Results
The financial results of National Commercial Bank in 2024 and 2025 showed strong performance reflecting the success of its strategy and expansion plans. The bank's share price reached approximately 35 Saudi Riyals, while its market capitalization exceeded 190 billion Riyals, placing it among the largest listed companies in the Saudi market.
In terms of profitability, the bank achieved a net profit of approximately 5 billion Riyals in the fourth quarter of 2024, with an annual growth exceeding 20% compared to the previous year. Operating revenues in the same quarter were around 13.5 billion Riyals, supported by increased interest income and the expansion of digital services.
On an annual basis, the bank recorded consolidated profits ranging between 17 and 18 billion Riyals for 2024, with annual revenue growth exceeding 20%, and a price-to-earnings (P/E) ratio between 13 and 15 times. The annual dividend yield is approximately 4-5%, reflecting a balanced and attractive dividend distribution policy for investors.
Analysis of the Saudi Banking Sector and National Commercial Bank's Position Within It
National Commercial Bank belongs to the banking sector in the Saudi financial market (Tadawul), which is a fundamental pillar of the national economy in terms of financing and investment. The sector is characterized by relative stability, strict regulatory oversight from the Saudi Central Bank and the Capital Market Authority, and high capital adequacy and liquidity standards.
National Commercial Bank is one of the largest weighted components in the main market index and holds a leading position in terms of assets, market share, and number of customers. It contributes to financing major development projects related to Vision 2030, such as NEOM, Qiddiya, and the Red Sea, with a focus on supporting small and medium enterprises.
In recent years, the Saudi banking sector has witnessed significant growth in net interest income due to rising interest rates, alongside an accelerated pace of digital transformation and increased competition with the entry of FinTech companies. National Commercial Bank continues to strengthen its position by diversifying its products, focusing on innovation, and achieving high profitability rates compared to sector averages.
Market Competition: Who Are National Commercial Bank's Main Competitors?
National Commercial Bank faces strong competition from several leading banks in the Saudi market, including:
- Al Rajhi Bank: The largest Islamic bank in the world and a major competitor in the local market in terms of assets and profitability.
- Saudi British Bank (SABB): Specializes in corporate financing and international banking services, supported by the Public Investment Fund.
- Riyad Bank: A large government bank with extensive activities in retail banking and financing national projects.
- Alinma Bank: A fully Islamic bank focusing on digital services and financing solutions for youth.
- Bank Al-Jazira and Bank Al-Bilad: Medium-sized banks distinguished by offering specialized products in Islamic financing and modern banking technologies.
The competition reflects on digital expansion programs, cost reduction, and product development, while National Commercial Bank remains in a leading position due to its size, service diversity, and strong financial position.
Impact of Samba Merger: How Has National Commercial Bank's Position Changed?
The merger of National Commercial Bank with Samba Bank in 2021 was a significant strategic step that reshaped the structure of the banking sector in Saudi Arabia. The merger unified assets, expanded the branch and customer network, and increased capital, enhancing the bank's ability to finance major projects and provide comprehensive banking services.
The merger also impacted the reduction of operational costs through the unification of systems and departments, achieving economies of scale, alongside enhancing the product portfolio between Islamic and conventional banking services. The bank benefited from Samba's international expertise in investment services, increasing National Commercial Bank's competitiveness locally and regionally.
Today, National Commercial Bank (Saudi National Bank) holds a leading position in the sector, bolstered by a massive capital base and a higher ability to withstand economic fluctuations.
Risk Management and Governance: How Does the Bank Maintain Its Financial Strength?
National Commercial Bank places great importance on risk management and corporate governance, reflected in capital adequacy ratios exceeding 18% and non-performing loan (NPL) ratios among the lowest in the sector (less than 1.5%).
The bank follows strict policies in diversifying its credit portfolio, avoiding concentration in a single sector, and applies the latest international accounting standards (IFRS 9) in asset evaluation and provisions. It also commits to providing regular financial disclosures and adhering to the transparency requirements imposed by the Capital Market Authority.
These policies enhance investor and depositor confidence, providing the bank with greater flexibility in distributing dividends and facing potential financial crises, while maintaining strong credit ratings from international rating agencies.
Dividend Distribution Policy: Attractive Returns for Shareholders
National Commercial Bank maintains a regular and attractive cash dividend distribution policy, with dividend yields in recent years ranging between 4% and 5% of the share price, with a payout ratio of 30% to 40% of annual net profits.
At the end of 2024, a cash dividend of 1.6 Riyals per share was announced, reflecting management's confidence in the sustainability of profitability and revenue growth. The distribution policy is based on annual performance results, while maintaining a portion of profits as reserve capital to support future expansion and investment plans.
This policy is one of the attractive factors for a wide range of investors seeking stable periodic returns in the Saudi financial market.
Recent Developments and News: Continuous Growth and New Initiatives
National Commercial Bank witnessed a series of positive developments during 2024 and 2025, including:
- Announcing strong financial results for the third and fourth quarters of 2024, with profit and revenue growth exceeding analysts' expectations.
- Launching new digital products and updating banking applications for individuals and businesses.
- Signing strategic partnerships with ministries and government institutions to finance housing and infrastructure projects.
- Entering into initiatives to finance small and medium enterprises and guarantee programs, alongside offering affordable mortgage financing products.
- Strengthening the management structure with new appointments in senior positions and renewing growth strategies.
- Maintaining strong credit ratings and a stable outlook from international rating agencies.
These developments reflect the dynamism of National Commercial Bank and its ability to keep pace with rapid changes in the Saudi financial market.
Risk Analysis: What Are the Main Challenges Facing National Commercial Bank?
Despite its financial strength and institutional stability, National Commercial Bank faces several risks that investors should monitor, including:
- Global Economic Fluctuations: A decline in oil prices or a global recession may affect the government's and companies' ability to invest and borrow, impacting bank profits.
- Regulatory Policy Changes: The imposition of new taxes or amendments to capital and liquidity requirements may affect the bank's operational costs.
- Digital Competition: The rising entry of FinTech companies and banking innovations may pressure traditional banks to provide faster and cheaper services.
- Loan Concentration: Despite portfolio diversification, the bank's exposure to certain vital sectors such as real estate and energy requires careful risk management.
National Commercial Bank benefits from its conservative policies, state support, and diverse operations to mitigate the impact of these risks, but it continues to monitor the economic and regulatory environment closely.
Regional and International Expansion: Growth Prospects Beyond Borders
With the completion of the Samba merger and leveraging its expertise in international markets, National Commercial Bank has begun to take steps toward regional and international expansion. Reports from 2024 indicated the bank's plans to increase its stake in a regional bank or establish financing entities outside the Kingdom.
This direction aims to diversify income sources, capitalize on growth opportunities in neighboring markets, and transfer expertise between branches. It also contributes to enhancing the bank's position as a regional financial institution with significant influence, especially with a stable financial position and a massive capital base.
International expansion remains a strategic step requiring careful risk and opportunity assessment, focusing on enhancing operational efficiency and benefiting from regional partnerships.
National Commercial Bank's Role in Vision 2030 Projects
National Commercial Bank plays a pivotal role in supporting the Kingdom's Vision 2030 projects by financing major government initiatives such as NEOM, Qiddiya, the Red Sea, and housing and infrastructure initiatives.
The bank participates in financing developmental projects, providing financing solutions for small and medium enterprises, and launching support programs for innovation and entrepreneurship. It collaborates with ministries and government agencies to provide banking and financing products aligned with sustainable development goals.
This role enhances the bank's position as a strategic partner for the government, achieving sustainable growth in profits and revenues, alongside contributing to diversifying the national economy and supporting employment and innovation.
Conclusion
In conclusion, National Commercial Bank (now Saudi National Bank) is a fundamental pillar of the Saudi banking sector and one of the cornerstones of the national economy. Thanks to its rich legacy, financial strength, and strategies in digital transformation and innovation, the bank has maintained a leading position among Saudi banks and continues to grow in an evolving competitive environment. Balanced risk management policies, investment in human resources and modern technologies, and support for major national projects are all factors that enhance the bank's ability to achieve stable financial results and distribute attractive returns to shareholders.
Despite these positives, it remains essential for every investor or market follower to recognize the risks associated with economic fluctuations, technological competition, and changes in regulatory policies. Therefore, it is always emphasized to consult a licensed financial advisor before making any investment decisions related to National Commercial Bank shares or other banking sector stocks. The SIGMIX platform provides you with advanced analytical tools and updated information to help you make investment decisions based on objective and transparent criteria. Do not hesitate to seek assistance from certified experts to achieve your financial goals safely and clearly.
Frequently Asked Questions
National Commercial Bank has a very strong financial base, possessing the largest deposit and loan base among Saudi banks, and is one of the highest banks in terms of capital adequacy and liquidity. The bank maintains low non-performing loan ratios and regularly distributes attractive dividends. Compared to its competitors like Al Rajhi, SABB, and Riyad Bank, National Commercial Bank excels in the diversity of its sectors and customer base, with high lending capabilities and the ability to finance large projects. This gives it high flexibility in facing economic fluctuations and supporting its expansion plans.
Rising interest rates generally lead to an increase in net interest income for National Commercial Bank, as loan returns rise faster than deposit costs. However, if interest rates rise significantly, the bank's financing costs may also increase, putting pressure on profit margins. In recent years, the bank has benefited from the global interest rate hike, but any future changes in monetary policies should be monitored closely for their impact on profits.
National Commercial Bank follows a regular cash dividend distribution policy ranging between 30% and 40% of annual net profits, achieving an annual dividend yield between 4% and 5% of the share price. This policy aims to achieve a balance between rewarding shareholders and strengthening reserve capital to support future growth. The distribution ratio may change based on the bank's results and management policy each year.
The merger with Samba in 2021 resulted in the formation of the largest banking entity in Saudi Arabia in terms of assets. The merger enhanced the bank's ability to finance major projects, diversify its portfolio, and provide broader banking and investment services. It also led to cost savings and improved operational efficiency, helping the bank achieve strong financial results and a competitive position in the local and regional banking sector.
The main risks include: global economic fluctuations (especially oil prices), changes in regulatory or tax policies, increased competition from FinTech companies, and the potential concentration of loans in certain sectors. The bank relies on conservative policies for risk diversification, strong government support, and advanced regulatory systems to mitigate the effects of these challenges, but it remains exposed to changes in the local and global economic environment.
National Commercial Bank invests heavily in developing digital platforms, having launched advanced banking applications, electronic platforms like 'Sahla', and providing fully electronic account opening and financing management services. It has also partnered with FinTech companies and is working on adopting artificial intelligence and data analysis to enhance customer experience and offer innovative products. This digital approach enhances the bank's competitiveness in the market and attracts new customer segments.
National Commercial Bank directly participates in financing national Vision 2030 projects, such as NEOM, Qiddiya, and the Red Sea, providing financing solutions for small and medium enterprises and support programs for innovation and entrepreneurship. It collaborates with government agencies on housing and infrastructure projects, enhancing its contribution to achieving sustainable development and diversifying the national economy.
Yes, reports from 2024 indicate that National Commercial Bank plans for regional and international expansion, either by increasing its stake in regional banks or establishing external financing entities. This direction aims to diversify revenue sources, capitalize on growth opportunities in neighboring markets, and enhance international expertise. However, expansion is approached cautiously and based on thorough feasibility studies to minimize risks and maximize returns.
National Commercial Bank's shares enjoy high liquidity and are among the largest listed on the TASI index, making them preferred by institutional and individual investors. Additionally, the bank's strong financial position, stable profit growth, attractive dividend distributions, and government support all enhance the stock's status as a leading choice in the Saudi financial market.
National Commercial Bank relies on strict policies for assessing customer creditworthiness and diversifying its financing portfolio across various sectors. It adheres to international capital standards (Basel III) and maintains high capital adequacy ratios, applying advanced systems to monitor non-performing loans and keeping sufficient provisions against any fluctuations. All of this contributes to reducing risks and enhancing the bank's financial sustainability.