Saudi British Bank: Detailed Study of Performance and Competitiveness in

The Saudi British Bank was established in 1978 during a period of significant economic transformations in the Kingdom of Saudi Arabia, where the government began to enhance the financial infrastructure to support national development. The idea of establishing the bank arose from a partnership between the Saudi Credit and Savings Bank and the British Bank for Commerce (HSBC branch), which gave the new entity a strong presence combining local expertise and international support. From the outset, the bank has been keen to provide modern banking services that meet the needs of individuals and businesses, leveraging global expertise in the banking field.

The bank continued to grow at an accelerated pace, supported by expansions in its branch network, with branches spread across major cities such as Riyadh, Jeddah, Dammam, and Khobar, in addition to recently updated digital service centers. This geographical expansion enhanced the bank's ability to reach a broader customer base and helped it offer a diverse range of products, including current accounts, deposits, consumer financing, and investment products.

In 2019, the Saudi British Bank witnessed a significant turning point following its merger with Alawwal Bank (formerly Saudi Hollandi Bank), forming a massive banking entity under the name Saudi Awwal Bank (SAB). Despite the change in the commercial name, the historical brand 'Saudi British Bank' still retains significant value in the minds of clients and markets. This merger allowed the bank to benefit from a wider customer base, increase capital, and enhance operational efficiency, positioning it among the top five banks in the Kingdom.

The bank continued to update its strategies, especially in light of regional and global economic changes, relying on modern technology to develop products and improve customer experience while maintaining the highest standards of governance and regulatory compliance. These historical changes have strengthened the position of the Saudi British Bank as one of the pillars of the Saudi banking sector, with its ongoing commitment to providing innovative financial solutions that meet the aspirations of both the local and international markets.

The Saudi British Bank has a developed organizational management structure that enables it to respond quickly to market changes and meet customer requirements efficiently. The bank is currently led by CEO Tony Krebs, who has extensive international experience in the banking sector, particularly in managing strategic transformations and digital transformation. The bank's board of directors comprises a group of financial and economic leaders, combining local and global expertise, which positively reflects on the quality of decision-making and future policy formulation.

The bank's branch network is spread throughout the Kingdom, with over 100 branches distributed across major cities and vital regions, focusing on areas experiencing increased economic activity such as Riyadh, Jeddah, Dammam, and Medina. The bank's presence is not limited to traditional branches; it has also enhanced its digital presence by launching modern electronic platforms and advanced mobile applications that allow customers to manage their accounts, execute transfers, and pay bills easily and securely.

The Saudi British Bank offers a wide range of banking services, including current and savings accounts, fixed deposits, personal and mortgage loans, in addition to various credit cards and investment services. The bank places significant importance on developing corporate banking services, providing comprehensive financing solutions for small and medium-sized enterprises, as well as cash management services and international trade financing.

In terms of digital services, the bank has launched initiatives for digital transformation in recent years, including the launch of an electronic account opening service without the need to visit a branch and the development of advanced electronic payment systems that comply with global security standards. As a result of these efforts, the bank has received local and international awards in the field of digital innovation and service quality, enhancing its position as a leading bank in providing modern banking solutions that meet the aspirations of various customer segments and economic sectors.

The Saudi British Bank places great importance on strategic partnerships as a tool to enhance its position in the financial sector and support national development. Since its establishment, the bank has maintained close relationships with international financial institutions, most notably HSBC, which has enabled it to benefit from global innovation and transfer expertise to the Saudi market. Although HSBC's stake in the bank has recently decreased in favor of local shareholders, technical and commercial cooperation between the two sides remains, evident in the quality of services and operational standards of the bank.

In the context of Vision 2030, the Saudi British Bank has adopted a pivotal role in financing major national projects, particularly those related to infrastructure, housing, and renewable energy. The bank has entered into partnerships with government entities such as the Ministry of Housing and the Industrial Development Fund to support housing and logistics projects, in addition to collaborating with the General Investment Authority to attract foreign capital and facilitate the entry of global companies into the Saudi market.

In terms of innovation, the bank has participated in several initiatives with financial technology (FinTech) companies, such as developing digital systems, electronic payment solutions, and online banking platforms. The bank has also launched programs to support entrepreneurship and startups by providing innovative financing solutions and credit facilities tailored to the needs of this segment, aiming to enhance the local digital economy.

These strategic partnerships reflect the bank's commitment to actively contributing to achieving the objectives of the Vision, whether through financing large projects that create thousands of jobs or by supporting financial technologies and developing an attractive business environment for investment. This demonstrates the Saudi British Bank's recognition of the significant role that major financial institutions play in driving development and achieving the desired economic transformation in the Kingdom, in line with government policies and the aspirations of local and international investors.

The Saudi British Bank is keen to provide a comprehensive range of banking services that meet the needs of both individuals and businesses, focusing on innovation and product development to keep pace with market changes and customer expectations. For individuals, the bank offers a comprehensive package of current and savings accounts, term deposits, personal loans, and auto loans, along with various types of credit cards. The bank has also excelled in providing mortgage financing, with its real estate portfolio growing by 26% in 2024, reflecting the increasing demand for housing and the bank's role in financing home ownership projects.

For businesses, the bank offers specialized services including working capital financing, project financing, credit lines, and cash management services, as well as international trade financing solutions that support the growth of Saudi companies in global markets. In 2024, the corporate financing portfolio recorded a growth of 20%, indicating the trust that companies place in the bank and its ability to meet the needs of both large and small projects.

The bank also excels in providing Islamic banking services compliant with Sharia law, through Murabaha, Ijarah, and Mudarabah financing products, catering to customers seeking Sharia-compliant financing solutions. The bank continuously works on enhancing its digital services for individuals and businesses through electronic platforms and mobile applications that allow for the easy and secure execution of various banking operations.

Additionally, the bank offers investment services through asset management, financial brokerage, and investment funds, targeting individual and institutional investors. All these services reflect the bank's commitment to providing comprehensive and flexible solutions while leveraging the latest banking technologies and global digital trends, making it a preferred choice for many clients across various economic sectors.

The Saudi British Bank relies on an integrated business model that focuses on achieving a balance between sustainable growth, risk management, and providing added value to customers. This model distinguishes the bank's ability to expand financing without compromising asset quality or capital strength, as evidenced by the 2024 results where the bank recorded its highest net profits in history, with a growth of 15% compared to the previous year. The bank's strategy focuses on leveraging historical strengths, such as a broad customer base, international relationships, and the bank's reputation in local and global markets.

In the context of the competitive Saudi environment, the Saudi British Bank faces strong competition from major banks such as Al Rajhi, National Commercial Bank, Riyad Bank, and Alinma Bank. Nevertheless, the bank has managed to achieve 'leadership positions' in corporate financing and retail banking services, thanks to the flexibility of its products and innovative financing solutions that meet the needs of various sectors. The bank also benefits from adopting the latest digital technologies that enhance operational efficiency and reduce operational costs.

Management places great importance on risk management, especially in light of global interest rate fluctuations and the transformations of the Saudi economy, which is partially dependent on oil. The bank implements strict policies to monitor the quality of its credit portfolio, considering the requirements of the Saudi Arabian Monetary Authority and Basel III standards. The bank is also keen to achieve a balance between long-term investments and dividend distributions to shareholders, enhancing the attractiveness of the stock and ensuring sustainable growth.

Recent years have also seen a notable improvement in customer experience, as the bank has invested in trained customer service teams, developed digital communication channels, and loyalty programs. All these factors contribute to enhancing the bank's competitiveness, allowing it to maintain its position among the top five banks in the Saudi banking sector, with greater potential for future expansion amid national economic growth.

In 2024, the Saudi British Bank witnessed exceptional financial performance, continuing to achieve strong results across various profitability and growth indicators. The net profit for 2024 reached approximately 8.1 billion Saudi Riyals, marking the highest net profit level in the bank's history, with a 15% increase compared to 2023. This strong performance resulted from notable growth in the financing portfolio, with corporate financing rising by 20%, while consumer loans for individuals grew by 21%. The mortgage financing portfolio also saw a growth of 26%, reflecting the increasing demand for housing loans and the bank's role in supporting the real estate sector.

In terms of operating revenues, reports showed a significant increase in the bank's revenues from investment activities and banking services, contributing to the enhancement of net income. It is worth noting that all of the bank's core sectors (corporate, individual, and financial markets) recorded positive performance during the year, supported by conservative credit policies and effective risk management.

The bank is also keen to maintain stable cash dividend distribution levels, having announced at the beginning of 2025 a cash dividend of 1.00 Saudi Riyal per share for the profits of 2024, reflecting a moderate distribution policy that ensures shareholder satisfaction and capital sustainability.

This strong financial performance reflects the bank's ability to adapt to global and local economic changes, as well as highlighting the success of the new strategy adopted by the executive management in recent years. This financial model serves as a reference in the Saudi banking market, where the Saudi British Bank has become an example of institutions that combine rapid growth, high profitability, and commitment to the highest standards of financial governance.

The stock of the Saudi British Bank, listed on the Saudi Stock Exchange under the symbol 1060, is one of the leading stocks in the banking sector. The stock is characterized by high liquidity and broad interest from local and international investors, given the bank's stature and strong financial history. In 2024, the stock price fluctuated between 25 and 30 Saudi Riyals for most periods, with levels nearing its highest historical prices by the end of the year, supported by strong financial results and stable dividend distributions.

The approximate market capitalization of the bank was around 22.5 billion Riyals in 2024, based on a price of 30 Riyals per share and a number of shares close to 750 million. This valuation reflects the bank's position among the largest financial entities in the Kingdom. In terms of the price-to-earnings (P/E) ratio, it was about 2.8 times in 2024, based on a net profit of 8.1 billion Riyals and an earnings per share of approximately 10.8 Riyals, making the stock attractive in terms of valuation compared to the average P/E multiples in the Saudi banking sector, which typically range between 10 and 15.

The Saudi British Bank is keen to distribute annual cash dividends, with distributions per share amounting to 1.00 Riyal for the profits of 2024, equivalent to a dividend yield of between 3.3% and 4% depending on the stock price. The stock maintains a reliable record in dividend distribution, enhancing its attractiveness to investors seeking stable income. In terms of stock volatility, it experienced relative stability in 2024 compared to some other banks, despite facing some fluctuations with global interest rate movements.

It is worth noting that the financial indicators of the stock change continuously with market updates, and it is advisable to follow official Tadawul reports and the bank's quarterly reports for the latest data. The stock of the Saudi British Bank represents a prominent option in the portfolio of Saudi financial stocks and serves as a mirror of the performance of the local banking sector.

The Saudi banking sector is a cornerstone of the national economy, accounting for more than 60% of the market capitalization of the Saudi stock exchange and comprising several giant banks that have a significant impact on the financial landscape. In this context, the Saudi British Bank occupies a leading position among the top five banks in the Kingdom, alongside the National Commercial Bank (formerly Saudi National), Al Rajhi Bank, Riyad Bank, and Alinma Bank.

The competitiveness of Saudi banks is distributed according to the services provided and the strength of their presence in corporate and individual sectors. Al Rajhi Bank excels in Islamic financing, while the National Commercial Bank dominates the corporate sector and national projects, and Riyad Bank stands out in institutional financing and asset management. In contrast, the Saudi British Bank has achieved distinction in corporate financing and personal banking services while maintaining a broad customer base and a modern branch network.

The Saudi British Bank is distinguished by its rich heritage of cooperation with international banks, especially HSBC, which has allowed it to benefit from global experiences and transfer best practices to the local market. The bank also invests heavily in digital transformation and updating its technical infrastructure, enabling it to compete with emerging banks and financial technology (FinTech) companies.

In terms of strengths, the bank relies on a strong capital base, a balanced dividend distribution record, and high management expertise. As for weaknesses, the bank may be affected by fluctuations in global interest rates and its partial reliance on dollar financing, in addition to the common challenges facing the banking sector amid global economic changes. Nevertheless, the Saudi British Bank remains a key partner and a strong competitor in the Saudi banking sector, with promising future growth and development prospects.

Digital transformation is one of the most important axes of the Saudi British Bank's strategy in recent years, as the bank has invested heavily in updating its technical infrastructure and developing digital services to meet customer aspirations and keep pace with global changes in the financial sector. The bank has launched a range of innovative digital initiatives, including advanced mobile applications that allow customers to manage their accounts, execute transfers, and pay bills easily and securely.

Among the bank's notable achievements in this area is the development of a system for opening accounts electronically without the need to visit branches, a step that has contributed to speeding up subscription procedures and attracting new customer segments, especially youth and entrepreneurs. The online banking platforms have also been updated to provide more comprehensive and flexible services, such as managing investment portfolios, obtaining digital loans, and executing smart deposit and withdrawal operations.

The bank has entered into strategic partnerships with financial technology (FinTech) companies to enhance electronic payment solutions, cloud computing, and information security, leading to improved customer experience and ensuring the protection of their data. The bank has also invested in artificial intelligence programs to analyze customer data and provide personalized offers that suit their financial needs.

The Saudi British Bank has received local and international awards in recognition of its efforts in digital innovation and is now one of the leading banks in providing digital banking services in the Kingdom. This digital transformation contributes to enhancing the bank's competitiveness, reducing operational costs, and increasing operational efficiency, in line with the aspirations of Vision 2030 to transform the Saudi economy into an advanced digital economy.

The Saudi British Bank places utmost importance on sound governance and compliance with all local and international regulations and legislation, which is clearly reflected in the bank's policies and operational procedures. The bank is committed to applying the highest standards of transparency and disclosure in its financial and administrative reports, adhering to the guidelines of the Saudi Arabian Monetary Authority (SAMA) and Basel III standards regarding capital adequacy and risk management.

The governance framework at the bank includes an active board of directors comprising diverse expertise from the financial and legal sectors, in addition to specialized committees in audit, risk, compliance, and remuneration. These committees monitor the performance of the executive management and ensure the bank's adherence to risk policies and relevant regulations. The bank also ensures to provide periodic reports to regulatory authorities and undergoes external and internal audits to ensure the integrity of operations and the accuracy of financial data.

In 2023 and 2024, the bank met the requirements for electronic reporting and regulatory updates without any major violations, reflecting its ongoing commitment to quality and transparency. The bank also invests in training its employees on compliance policies, anti-money laundering, and counter-terrorism financing, aiming to protect customer interests and enhance trust in the banking system.

This strict approach to governance provides the Saudi British Bank with a significant competitive advantage, granting customers and investors confidence in the integrity of its operations and financial sustainability. It also helps the bank address the increasing regulatory challenges in the banking sector and ensure continued growth within a strong legal and financial framework.

The Saudi British Bank plays a fundamental role in supporting the Saudi national economy, especially in financing major projects of strategic importance to Vision 2030. The bank participates in financing infrastructure, housing, renewable energy, and industrial projects through partnerships with government entities and national development funds. These partnerships enable the bank to contribute effectively to achieving economic transformation and diversifying national income sources.

In recent years, the bank has launched specialized financing programs to support housing projects, in collaboration with the Ministry of Housing and the Real Estate Development Fund, aiming to increase the percentage of citizens owning homes. The bank has also participated in financing renewable energy projects, such as solar and wind power plants, which are among the new pillars for diversifying the Saudi economy and reducing dependence on oil.

On the corporate side, the bank provides integrated financing solutions for major projects in the industrial and logistics sectors, including credit lines, working capital financing, and cash management services. The bank applies precise criteria in evaluating and selecting projects, ensuring their alignment with national development goals and environmental and social sustainability standards.

The bank also contributes to supporting small and medium-sized enterprises through flexible financing programs and credit facilities, helping to create new job opportunities and enhance innovation in the local economy. These efforts affirm the Saudi British Bank's commitment to its national responsibility and its ongoing endeavor to be a key partner in the economic and social development journey of the Kingdom.

Recently, the Saudi British Bank has witnessed a series of positive developments that have strengthened its position in the Saudi financial market. At the forefront of these developments is the bank's announcement of achieving the highest net profit in its history during 2024, with net income reaching 8.1 billion Saudi Riyals, confirming the success of the new strategy adopted by the executive management led by Tony Krebs. This strong performance resulted from the growth of the financing portfolio for both companies and individuals, increased investment revenues, alongside effective cost and risk management.

In early 2025, the bank announced a cash dividend distribution of 1.00 Saudi Riyal per share for the profits of 2024, reflecting the bank's commitment to a stable dividend distribution policy that satisfies its shareholders and enhances their confidence. The same period also saw an expansion of the branch network and the opening of new centers to meet customer needs in vital areas, particularly in Jeddah and Khobar.

In terms of innovation, the bank continued to invest in developing digital services, having launched an advanced mobile application and a fully electronic account opening system, alongside partnerships with financial technology (FinTech) companies to enhance digital payment solutions and cloud services.

From a regulatory perspective, the bank continued to achieve the highest standards of compliance and transparency, without recording any major regulatory violations, fully adhering to the requirements of the Saudi Arabian Monetary Authority. The bank also demonstrated resilience in facing fluctuations in global interest rates and macroeconomic challenges, maintaining the quality of its assets and capital adequacy.

All these developments reflect the Saudi British Bank's ability to keep pace with economic and technological changes, enhancing its position as a leading bank in the Saudi market, with promising prospects for further growth and expansion in the future.

The growth prospects for the Saudi British Bank appear promising amid the ongoing economic expansion of the Kingdom of Saudi Arabia and the achievement of Vision 2030 objectives. With the government's focus on increasing spending on infrastructure, housing, and renewable energy, high demand for the financing solutions provided by the bank is expected to continue, especially with an emphasis on major national projects and small and medium-sized enterprises.

In terms of banking services, the bank aims to strengthen its market position through digital innovation and the development of banking products, such as digital loans, electronic wallets, and wealth management services, to meet the aspirations of the youth and professionals. The bank also intends to expand its offerings of investment products and advisory services, targeting local and international investors seeking opportunities in the Saudi market.

Conversely, the bank faces several challenges, notably global interest rate fluctuations that may affect financing costs and profit margins, in addition to increasing competition from major banks and financial technology (FinTech) companies. Regulatory changes and international legislation impose increasing requirements on risk management and compliance, necessitating continuous investments in technical infrastructure and training of human resources.

Despite these challenges, the Saudi British Bank possesses strong growth fundamentals due to its solid capital base, strong financial performance record, and a clear strategy focused on innovation and strategic partnerships. The bank is expected to continue building on its recent successes and expanding its presence in the market while continuing to support the national economy and contributing to achieving the desired economic transformation for the Kingdom.