The National Commercial Bank is one of the leading financial institutions in the Kingdom of Saudi Arabia, holding a prominent position among the banks listed on the Saudi financial market (Tadawul). Following the merger of the National Commercial Bank with Samba Financial Group in 2021, it became the largest bank in the Kingdom in terms of assets and a pillar of the national economy. With increasing investor interest in the banking sector, the National Commercial Bank stands out as one of the most traded and influential stocks on the main market index, TASI. In this article, we present a comprehensive analysis of the National Commercial Bank, focusing on the latest financial data for the years 2024 and 2025, key operational indicators, its competitive position, and the banking sector in which it operates. We also discuss the bank's strategies, key developments, growth factors, and frequently asked questions from investors. This article aims to provide an educational and neutral perspective to help readers understand the nature of the National Commercial Bank's performance and its standing in the Saudi financial market.
Overview of the National Commercial Bank and Its Position in the Saudi Financial Market
The National Commercial Bank is a leading banking entity established after the merger of the National Commercial Bank and Samba Financial Group in 2021. This merger created the largest bank in the Kingdom in terms of assets and provided the National Commercial Bank with the widest customer base in the local banking sector. The bank is listed on the Saudi financial market (Tadawul) under the symbol 1180 and is classified within the banking and financial institutions sector. It offers comprehensive banking services to individuals and businesses, including financing, wealth management, investment services, and digital banking solutions. Thanks to its size and accumulated experience, the bank plays a pivotal role in supporting the national economy and financing major strategic projects within the framework of Vision 2030. Additionally, the bank significantly impacts the TASI index, being one of the largest listed companies in terms of market capitalization and trading liquidity.
Key Financial Data of the National Commercial Bank (2024-2025)
The latest available financial data for the years 2024-2025 indicates that the National Commercial Bank maintains a strong financial position and stable performance. By the end of 2025, the stock price is expected to be around 36 Saudi Riyals, while the market capitalization is approximately 350 billion Riyals. The bank's price-to-earnings (P/E) ratio ranges between 8.5 and 9, which is an acceptable range for Saudi banks. The cash dividend yield has reached 4-5% annually, with the bank announcing annual distributions averaging 0.40 Riyals per share. In the third quarter of 2024, the bank recorded a net profit of about 5.0 billion Riyals, with operating revenues between 10.5 and 11 billion Riyals, reflecting an annual revenue growth rate of 5-6% and a net profit growth of about 2%. These figures reflect the bank's stability and its ability to achieve good results despite economic challenges and market fluctuations.
Importance of the National Commercial Bank in the TASI Index and the Saudi Market
The National Commercial Bank is a fundamental pillar of the Saudi financial market index (TASI) and is considered one of the largest components by weight in the index. Due to its high market capitalization and significant liquidity in the bank's shares, the bank's performance often has a direct impact on the overall market index movement. Local and international investors closely monitor the results of the National Commercial Bank, as it is considered an indicator of the health of the banking sector and the Saudi economy in general. Additionally, the bank's inclusion in international emerging market indices such as the MSCI index has enhanced its attractiveness for foreign investments, especially after the merger which increased its asset base and strengthened its balance sheet. The National Commercial Bank continues to attract local and international capital, supported by government backing and balanced growth strategies.
Analysis of the Banking Sector in the Saudi Financial Market
The banking and financial institutions sector in Saudi Arabia is the largest in terms of market capitalization on Tadawul and plays a crucial role in supporting the national economy and financing government and private projects. The performance of Saudi banks, including the National Commercial Bank, depends on several influencing factors: oil prices that determine the level of liquidity in the economy, local and global interest rates, credit growth, and the development of digital services. In recent years, the policies of the Central Bank (SAMA) have contributed to enhancing financial stability through strict oversight of capital and liquidity. Technological advancements and digital transformation have also increased competition among banks, as they all offer advanced electronic services to meet customer needs. Despite challenges such as rising financing costs or fluctuations in oil prices, the Saudi banking sector has demonstrated significant resilience and the ability to achieve record profits in 2024.
Competition Between the National Commercial Bank and Other Major Banks
The National Commercial Bank faces strong competition from several other major banks in the Kingdom, including Al Rajhi Bank, Riyad Bank, Alinma Bank, Saudi French Bank, and Bank Al-Jazira. Each of these banks has its strengths, such as Al Rajhi Bank's specialization in Islamic services and Alinma Bank's superiority in digital solutions. Following the merger of NCB and Samba, the competitive strength of the National Commercial Bank has increased due to a larger customer base and greater assets. Competition is concentrated in major corporate financing sectors, retail banking, real estate financing, and investment services. Banks also compete to offer the best deposit rates, develop new products to attract new customers, and target large corporations and government projects. Despite the intense competition, the National Commercial Bank maintains its advanced position thanks to its massive balance sheet and strategic support for national projects.
Financial Results and Quarterly Performance Developments of the National Commercial Bank
In the third quarter of 2024, the National Commercial Bank recorded a net profit of approximately 5.0 billion Riyals, compared to 4.9 billion Riyals in the same period of the previous year, reflecting a growth rate of about 2%. Operating revenues ranged between 10.5 and 11 billion Riyals, driven by increased interest income and net fees and commissions. Annual revenue growth reached 5-6%, while profit growth was lower due to rising costs and loan provisions. This performance reflects the bank's stability and its ability to manage economic challenges, such as fluctuations in interest rates or global economic slowdowns. The bank also continued to distribute attractive cash dividends to shareholders, enhancing the stock's appeal among investors seeking stable income or profit stability.
The National Commercial Bank's Strategy in Digital Transformation and New Services
The National Commercial Bank focuses on digital transformation and the development of electronic banking services in line with Saudi market trends and Vision 2030. The bank has launched modern smartphone applications and developed electronic payment platforms and digital solutions for businesses and individuals. It has also invested in enhancing the infrastructure for digital payments and participated in instant transfer initiatives between banks. These investments in technology aim to enhance the customer experience, reduce operational costs, and increase internal operational efficiency. Additionally, the bank continues to develop new financial products, including investment accounts, mutual real estate funds, and Islamic bonds (Sukuk), to meet the diverse needs of its customer base.
The Role of the National Commercial Bank in Major Government Projects and Vision 2030
The National Commercial Bank is considered a key partner for the government in financing and implementing major projects under Vision 2030. The bank has participated in financing renewable energy projects, infrastructure development, and large real estate projects. It also provides Sharia-compliant financing solutions for national projects and supports small and medium-sized enterprises through specialized financing programs. This strategic role has enhanced the bank's position in the market and provided it with additional growth opportunities, especially with the expansion of government spending on developmental projects. The bank also contributes to initiatives that empower the private sector and develop local industries, positively reflecting on its business growth and diversifying its income sources.
Regulatory Policies and Credit Ratings Assessment of the National Commercial Bank
The National Commercial Bank is subject to oversight and regulation by the Saudi Capital Market Authority (CMA) and the Saudi Arabian Monetary Authority (SAMA). These entities ensure the application of the highest standards of governance, risk management, and financial transparency. In recent years, the bank has maintained high credit ratings from global agencies such as Fitch and Standard & Poor's, with its rating affirmed at AA/AA- in 2024. These ratings reflect the bank's strong financial position, liquidity levels, and the quality of its credit portfolio. Strict regulatory policies, along with substantial capital and adequate reserves, contribute to enhancing confidence in the National Commercial Bank among local and international investors.
Impact of Oil Prices and Monetary Policy on the Performance of the National Commercial Bank
Oil prices directly affect the performance of the National Commercial Bank, as they are the primary driver of liquidity in the Saudi economy. Rising oil prices increase government and corporate deposits, leading to higher investment and financing activity among banks. Conversely, falling prices may lead to reduced liquidity and increased financing costs. On the other hand, the monetary policy of the Saudi central bank plays an important role in determining local interest rates, which affects the bank's profit margins. Raising interest rates may increase the bank's income from loans, but it also raises the cost of deposits. The National Commercial Bank has the ability to adapt to these changes thanks to its diversified portfolio and strong government support.
Cash Dividend Yield and Dividend Distribution Policy
The National Commercial Bank has a cash dividend distribution policy that is among the highest among major Saudi banks. The cash dividend yield in recent years has been around 4-5% of the stock price, with regular annual distributions averaging 0.40 Riyals per share. This rate is considered attractive compared to the market average, especially for investors seeking stable and consistent income. The distribution policy depends on realized profits, capital needs, and the board of directors' annual directives. The bank strives to achieve a balance between rewarding shareholders and enhancing its capital base to support future expansion and growth. Therefore, the dividends of the National Commercial Bank remain a focal point of interest for investors in the market.
Key Risks Facing the National Commercial Bank
Despite its strong position, the National Commercial Bank faces several risks that may impact its future performance. Among the most significant risks are: credit risks due to some clients' defaults, interest rate volatility risks that may affect profit margins, market risks associated with fluctuations in asset prices, and liquidity risks arising from macroeconomic changes or oil price fluctuations. Additionally, regulatory changes or intense competition may pressure profit margins. The National Commercial Bank has advanced risk management policies, sufficient capital, and government support that significantly mitigate these risks compared to smaller banks.
Recent Developments and News of the National Commercial Bank (2024-2025)
The National Commercial Bank has witnessed several significant developments during 2024-2025, such as achieving strong quarterly results that exceeded analysts' expectations and continuing to distribute high dividends. The bank has also launched new digital services and participated in major government projects under Vision 2030. Its inclusion in the MSCI emerging markets index has enhanced foreign investment inflows and increased demand for the bank's shares. Additionally, the bank has maintained a strong credit rating and demonstrated resilience in facing market fluctuations. These combined developments affirm the National Commercial Bank's continued leadership position among Saudi banks, supported by a balanced growth strategy and ongoing government backing.
Conclusion
The National Commercial Bank is a model of an integrated banking institution in the Kingdom, combining financial strength, service diversity, and a growth strategy supported by Vision 2030. Recent financial data shows the bank's ability to achieve sustainable profits and attractive cash dividends, despite economic challenges and market fluctuations. Intense competition, digital transformation, and government financial policies represent key factors in the bank's future performance development. It is important to emphasize that all information contained in this article is for educational purposes only and does not constitute investment advice. Before making any investment or financial decision, it is always recommended to consult with a licensed financial advisor or visit the SIGMIX platform for additional analyses and detailed comparisons between Saudi stocks.
Frequently Asked Questions
The National Commercial Bank stands out due to its size as the largest bank in the Kingdom in terms of assets and customer base, as well as its ability to finance large projects in collaboration with the government. The bank offers a wide range of banking services for individuals and businesses and benefits from strong government support and a balanced growth strategy that enhances its stability and expansion capabilities compared to its competitors.
Oil prices directly impact the liquidity available in the Saudi economy, which reflects on the volume of deposits and financing at banks. Rising oil prices enhance the bank's ability to provide financing and increase profits, while a decline may lead to reduced liquidity and increased credit risks. However, the National Commercial Bank has strong risk management policies that help it adapt to these conditions.
The cash dividend yield of the National Commercial Bank in recent years has been around 4-5% annually of the stock price, with regular cash distributions to shareholders. This rate is among the highest among major Saudi banks and provides a stable income for investors, but it depends on the bank's results and the annual policy of the board of directors.
The stock of the National Commercial Bank is traded at a price-to-earnings ratio between 8.5 and 9, reflecting market confidence in its ability to achieve stable profits. The stock's performance is influenced by the bank's quarterly results, dividend distributions, and local and global economic developments, in addition to its position as one of the largest components in the TASI index.
The main risks facing the bank include credit risks due to defaults by some clients, interest rate volatility risks affecting profit margins, market risks from asset price fluctuations, and liquidity risks in the event of sudden economic changes. The bank has strong systems in place to manage these risks, with a large capital base and government support.
The National Commercial Bank plays a pivotal role in financing projects under Vision 2030, including infrastructure and renewable energy projects. The bank also contributes to empowering the private sector, supporting small and medium-sized enterprises, and providing Sharia-compliant financing solutions in line with national development goals.
The merger of NCB and Samba enhanced the National Commercial Bank's business size, increased its customer base, and expanded its branch network. The merger helped the bank achieve economies of scale, reduce some costs, and improve operational efficiency, positively reflecting on its financial results and competitive position in the Saudi market.
The National Commercial Bank focuses on developing digital banking services by launching modern banking applications, enhancing electronic payment platforms, and offering digital solutions for businesses and individuals. This strategy aims to enhance the customer experience, increase operational efficiency, and reduce costs in line with developments in the Saudi market.
Yes, the National Commercial Bank is affected by changes in global interest rates, as local monetary policy often follows U.S. policies. Raising interest rates increases the bank's income from loans but also raises the cost of deposits. The bank manages these impacts by diversifying income sources and adjusting lending levels.
The results of the National Commercial Bank can be followed through the official Tadawul website, quarterly financial reports published on the bank's website, and data from the Saudi Capital Market Authority. Additionally, stock analysis platforms like SIGMIX provide regular updates and detailed analyses of the bank's performance and key financial indicators.
The stock symbol of the National Commercial Bank on the Saudi financial market (Tadawul) is 1180, and investors can monitor the stock's movement and financial data through the official market website or approved trading applications.