AlAhli Tadawul: Comprehensive Analysis of Performance and Financial Indicators

The National Commercial Bank was established in 1953 as the first officially recognized Saudi bank, paving the way for the development of the Kingdom’s banking sector. Over the decades, the bank expanded its services and geographic presence through a growing branch and ATM network and a broad client base. In 2021, the National Commercial Bank acquired Samba Financial Group in the largest banking merger in Saudi Arabia, marking a major turning point. The resulting entity became Saudi National Bank (SNB), now the largest bank in the Kingdom by assets, capital, and market value. This phase was characterized by comprehensive management restructuring, product development, digital strategy adoption, and expansion beyond Saudi borders. Today, SNB leads in providing banking services to individuals, corporates, and government entities, directly financing Vision 2030 projects such as NEOM and Qiddiya. The SNB stock (symbol: 1111 on Tadawul) is among the most traded and closely watched, thanks to the bank’s financial stability and sustainable growth in the Saudi financial landscape.

Saudi National Bank is a cornerstone of the banking and finance sector on Tadawul. With assets exceeding SAR 1.3 trillion and a robust balance sheet, the bank leads its Saudi peers. SNB finances most major projects and boasts a vast client base spanning individuals, corporates, and government. It plays a key role in managing liquidity in the Saudi market and supports financial stability through balanced lending policies. The bank is also highly adaptable to economic changes and swiftly complies with regulatory requirements set by the Saudi Central Bank (SAMA). SNB is a leader in digital banking, with its online platforms and mobile applications ranked among the most advanced in the Kingdom, helping it retain market share amid rising competition from both traditional and new banks.

Saudi National Bank demonstrated strong and stable financial performance in 2024-2025. According to financial reports, the bank achieved a net profit exceeding SAR 5.04 billion in Q1 2024, a marginal increase over the same period last year. This profit was driven by growth in financing and banking service revenues, along with effective control of operating expenses despite pressures from competition and rising costs. Total assets continued to grow, surpassing SAR 1.3 trillion, while the financing portfolio increased by 5-7% year-on-year, maintaining high loan quality with a non-performing loan ratio below 1.5%. Return on assets (ROA) reached about 1.5%, and return on equity (ROE) ranged between 12-13%, competitive ratios within the Saudi banking sector. The bank also maintained high liquidity exceeding SAR 200 billion, providing flexibility to face potential economic changes.

Saudi National Bank shares are traded on the Saudi Stock Exchange under the symbol 1111. By mid-2025, the stock price ranged between SAR 35 and 40, raising the bank’s market capitalization to between SAR 320 and 350 billion. This makes SNB the largest listed bank in the Saudi market, accounting for about 15% of the financial sector’s total market value on Tadawul. The stock price is influenced by several factors, including quarterly earnings, monetary policy, global interest rates, and local economic developments. The stock’s stability and investor confidence reflect SNB’s ability to deliver sustainable profits and attractive dividends, as well as its resilience to economic fluctuations. Analysts closely monitor the stock’s movement due to its direct impact on general market indices and its role as a benchmark for the Saudi banking sector.

The price-to-earnings ratio (P/E) is one of the most important financial metrics for evaluating Saudi National Bank’s stock. During 2024-2025, the P/E ratio remained in the 10-12x range, reflecting market confidence in the bank’s ability to achieve sustainable earnings growth. The ratio is calculated by dividing the share price by annual earnings per share; for example, if EPS is SAR 3 and the share price is SAR 36, the P/E is 12. This range is considered healthy for the banking sector and indicates that the market does not expect major volatility in the bank’s earnings in the near term. The P/E also demonstrates the bank’s continued attractiveness to investors compared to its peers, balancing growth and stable returns. It is important for observers to monitor changes in the P/E ratio with quarterly results or economic developments that may affect the bank’s profitability or stock price.

Saudi National Bank is known for its regular and transparent dividend policy, committing to distribute a significant portion of net profits to shareholders. In recent years, annual dividends have ranged between SAR 4 and 6 per share, often with stable quarterly payments, reflecting an annual yield of 5% to 7% based on the share price. The bank’s general assembly in 2024 approved dividends similar to previous years, reinforcing investor confidence in the sustainability of returns. Typically, 50% to 70% of annual net profit is distributed, with the remainder reserved to support the bank’s financial position and future expansion. This policy underscores the bank’s commitment to delivering sustainable value to shareholders while maintaining financial flexibility to navigate economic developments.

Saudi National Bank’s loan portfolio is among the largest and most significant in the Kingdom and the region. The value of loans and financing exceeded SAR 820 billion by the end of 2023, with moderate growth of 5-7% in 2024, driven by increased lending to large corporates and real estate financing. The bank places utmost importance on asset quality through strict risk management policies, resulting in a non-performing loan ratio below 1.5% at the end of 2024—one of the lowest in the sector. The bank also maintains high liquidity ratios, enabling it to absorb potential market shocks. SNB’s strategy focuses on expanding financing for major national projects while upholding high credit standards and collection monitoring, strengthening its financial position and ability to meet diverse client needs.

Saudi National Bank faces strong competition from several major banks in the Kingdom, notably Al Rajhi Bank (the world’s largest Islamic bank), Riyad Bank, Saudi British Bank (SABB), Arab National Bank, Banque Saudi Fransi, and Alinma Bank. Each competitor has unique strengths, such as a focus on Islamic finance, international banking services, or advanced digital solutions. Nevertheless, SNB maintains its lead thanks to the largest client base, diversified activities, and strong government backing. The bank leverages its advanced digital infrastructure, high financing capacity, and wide geographic reach. Meanwhile, some competitors focus on specialized sectors like real estate finance or cutting-edge digital offerings. This competition benefits clients and investors, driving innovation and service quality improvements across the sector.

Saudi National Bank’s performance is influenced by various economic and regulatory factors. Chief among them are interest rates, as any changes directly impact banking profit margins—affecting both funding costs and lending returns. In 2024, interest rates remained high, supporting the bank’s asset yields but posing cost challenges. The local economy, especially Vision 2030 projects, also affects loan demand and revenue growth. On the regulatory side, the Saudi Central Bank (SAMA) continues to enforce strict capital and liquidity standards, strengthening the sector’s resilience and limiting systemic risks. Additionally, global market variables—such as oil prices and international economic volatility—present both challenges and opportunities, requiring SNB to maintain strong risk management and strategic flexibility.

In recent years, Saudi National Bank has made significant strides in digital transformation and innovation. The bank has invested heavily in developing its digital platforms and banking applications, offering integrated services to individuals and businesses via online and mobile channels. These include account opening, money transfers, investment portfolio management, and digital financing. The bank has also introduced artificial intelligence technologies to enhance customer experience and expanded offerings such as digital loans and electronic payment services. These initiatives respond to evolving market demands and rising customer expectations for fast, secure digital services. Such investments have helped SNB maintain market share and attract new client segments, particularly among youth and tech-savvy customers.

During 2024 and 2025, Saudi National Bank witnessed several notable developments. In April 2024, the bank announced a net profit of SAR 5.04 billion for Q1, driven by increased financing revenues and customer services. In June 2024, the general assembly approved annual dividends similar to the previous year. The bank continued executing its digital transformation strategy, announcing new investments in digital banking services and expanding regional partnerships in the Gulf. The stock saw a notable rise in H1 2024, supported by investor confidence in sustained strong performance. Analyst reports indicated continued moderate profit growth in 2025, with expectations of benefiting from expansion into new sectors. These developments highlight SNB’s dynamism and its ability to adapt to market changes while maintaining its leadership position.

Saudi National Bank plays a pivotal role in supporting Vision 2030 by financing major national projects, developing infrastructure, and fostering innovation in the financial sector. The bank participates in funding projects such as NEOM, Qiddiya, and the Red Sea, in addition to supporting government initiatives for digital transformation and expanding the non-oil economy. SNB also supports SME financing programs and provides integrated banking solutions to promote sustainable economic growth. Through investments in fintech and digital service development, the bank contributes to achieving the vision’s goals of building a diverse and competitive economy. SNB’s importance is underscored by its role as a strategic partner to both government and private sectors, reinforcing its status as a backbone of the Saudi financial sector.

Financial analyses and reports indicate a positive outlook for Saudi National Bank in the Saudi financial market, with expectations of continued growth in profits and revenues through 2025. This outlook is based on several factors, including stable interest rates, ongoing government spending on major projects, and the bank’s expansion in digital services and regional partnerships. The bank is also expected to maintain high asset quality, strong liquidity, and capital ratios, enabling it to withstand potential economic volatility. SNB remains a focus for both local and international investors, thanks to its financial stability, attractive dividends, and ability to keep pace with technological and regulatory developments. Nevertheless, it is essential to monitor market developments and influencing factors and consult a licensed financial advisor before making any investment decisions regarding the stock or sector.