Al Ahli Stock: Performance of the Saudi National Bank in the Saudi Financial

Al Ahli stock represents the traded share of the Saudi National Bank (SNB) in the Saudi financial market. Established in 1953 as the first national banking institution, the bank has since evolved to become the largest commercial bank in the Kingdom and the third largest bank in the Middle East by assets. Al Ahli stock is listed under the symbol 1180 on the Tadawul index and is one of the most liquid and closely followed stocks in the market.

The history of the Saudi National Bank is filled with achievements, especially after its merger with Samba Financial Group in 2021, which enhanced its position and increased its asset size and customer base. The bank is distinguished by providing comprehensive banking services to individuals, corporations, and the government sector, with a special focus on financing major national projects that align with the Kingdom's Vision 2030. Al Ahli stock is a key driver of the Saudi market index, as any change in the stock's performance significantly reflects on major indicators such as 'TASI.'

During 2024 and 2025, Al Ahli stock maintained relative stability within a price range of 36-38 Saudi Riyals. The market capitalization of the Saudi National Bank at the end of 2025 was approximately 200 billion Riyals, placing it among the top companies listed after Aramco.

The price-to-earnings (P/E) ratio for Al Ahli stock ranged between 14 and 15 times, which is a medium to low level compared to regional and international banks. This ratio reflects the relative attractiveness of the stock in terms of financial valuation, especially with the bank achieving strong profits and an annual net profit ranging between 10 and 12 billion Riyals.

In terms of dividends, the bank continued its stable cash distribution policy, amounting to 1.5-2 Riyals per share, resulting in a dividend yield of approximately 4-5% of the market price. These figures reflect the strength of the capital base and confidence in the bank's liquidity and cash flows.

The Saudi National Bank was established by royal decree in 1953, making it the first national bank in the Kingdom. Over the following decades, the bank expanded to include a variety of services for individuals and corporations, achieving a leading position in the banking sector. Recent years have seen a major turning point with the merger of the National Commercial Bank with Samba Financial Group in 2021, resulting in the new entity being named the Saudi National Bank (SNB).

This merger doubled the size of assets and the customer base, leading to an increase in the stock's profitability and book value. Al Ahli stock continued to trade under the symbol 1180, retaining the history of the National Commercial Bank. This transformation has bolstered investor confidence and led to the stock's inclusion in most leading market indices. The merger is considered a successful model for restructuring the Saudi banking sector to support major national projects.

The Saudi National Bank offers a comprehensive range of banking services for individuals, such as current and savings accounts, real estate and consumer financing, credit cards, and digital services. It also provides specialized banking services for corporations, including financing major projects, import financing, and cash management.

The bank also plays a significant role in financing the government sector, through partnerships in national infrastructure projects and providing advanced financing solutions for government initiatives. In terms of investment, the bank offers brokerage services and investment funds, in addition to asset management products and treasury solutions. This diversity in services enhances the bank's stability and its ability to withstand economic changes, making Al Ahli stock more diversified and less exposed to risks from a single sector.

The management of the Saudi National Bank has followed a stable cash dividend policy in recent years, distributing between 1.5 and 2 Riyals per share annually. This policy reflects the bank's commitment to providing a continuous return to shareholders while allowing flexibility to retain part of the profits to enhance capital and support future expansion.

The dividend yield for Al Ahli stock ranged between 4% and 5% of the market price, which is relatively high in the Saudi banking sector. This policy attracts a wide range of investors seeking stability and sustainable income, especially in a changing economic environment. It is important to note that dividends are influenced by the board's policies, annual financial performance, and regulatory requirements.

The ownership of the Saudi National Bank is characterized by significant government control, with the Ministry of Finance holding an estimated 70% to 75% of the shares following the Samba merger. This is followed by official institutions such as the Saudi Arabian Monetary Authority (SAMA) and local and foreign investment funds within regulatory limits.

This structure enhances the bank's stability and its ability to execute large national projects, while also granting the stock high liquidity and significant weight within leading indices. Conversely, regulatory rules determine the foreign ownership percentage, ensuring that the primary control remains in the hands of Saudi investors. These factors play a role in reducing stock volatility and sustaining its long-term growth.

The Saudi banking sector is one of the main economic pillars, representing between 15% and 20% of the GDP. The Saudi National Bank occupies a leading position in terms of assets, geographical spread, and profitability. Key competitors include Al Rajhi Bank, Riyad Bank, SABB, and Arab National Bank.

Al Rajhi Bank is the primary traditional competitor, especially in Islamic financing, while Riyad Bank is distinguished by its relationships with government and large corporations. Al Ahli excels in terms of size and customer base, and is noted for supporting mega projects under Vision 2030. In recent years, competition has increased in the field of digital services and smart branches, but Al Ahli's size and technological investments give it a clear advantage in the market.

Al Ahli stock enjoys strong attention in the Saudi financial market and is characterized by high liquidity compared to most other bank stocks. Compared to Al Rajhi Bank, Al Ahli has a larger asset size in some years, with a good balance between financing for individuals and corporations.

In terms of financial indicators, Al Ahli stock has maintained a relatively low P/E ratio compared to some smaller banks, while its dividends have been among the highest in the sector. The stock's relative stability and ability to absorb economic shocks have been reflected in its performance during periods of economic volatility, such as rising interest rates or fluctuations in oil prices. This performance makes it an attractive option for a wide range of market participants.

Monetary policies and interest rates directly affect the profits of Saudi banks, including the Saudi National Bank. In 2023 and 2024, the Saudi Monetary Authority gradually raised interest rates to control inflation. This led to an increase in profit margins for Al Ahli Bank, as interest revenues from loans and deposits rose.

Higher interest rates contribute to enhancing bank profitability, but they may also lead to a decline in demand for loans in some sectors. Al Ahli Bank balances achieving strong profitability while maintaining the quality of its loan portfolio, with non-performing loans remaining below 4% of the total portfolio. This prudent management reflects the bank's ability to adapt to economic and regulatory changes.

The Saudi National Bank has invested heavily in digital transformation during 2024-2025, developing electronic banking platforms and mobile applications. Recent initiatives included the launch of an enhanced digital wallet, partnerships with FinTech companies, and the development of artificial intelligence solutions to improve customer experience.

These steps align with supporting the Kingdom's Vision 2030 for digital transformation and meet the aspirations of diverse customer segments. Technological investments have contributed to enhancing operational efficiency, expanding the customer base, and increasing user loyalty to digital services. These developments position Al Ahli Bank at the forefront of Saudi banks in terms of digital innovation.

In the second half of 2025, the Saudi National Bank completed a share buyback program worth 582 million Riyals, involving 16 million shares. This move aims to improve the stock's profitability indicators by reducing the number of outstanding shares and increasing returns for shareholders.

Additionally, the bank signed financing agreements with national companies, such as a 200 million Riyal deal with 'Shifa' to finance water and nutrition projects. These deals reflect the bank's role in supporting national development and providing comprehensive financing solutions for both large and small companies. The bank also benefits from the growth of government loans and support programs for small and medium enterprises, enhancing the diversity of its financing portfolio.

The Saudi National Bank has received high credit ratings from international agencies such as Fitch and Moody's, with ratings maintained at AA- or A-2 with a stable outlook. These ratings reflect the strength of the capital base, asset quality, and management efficiency.

The bank maintains a capital adequacy ratio (CAR) exceeding regulatory requirements, enhancing its ability to withstand financial shocks. Thanks to this stability and high rating, Al Ahli stock remains an attractive option for local and international investment institutions within regulatory limits.

Social responsibility and sustainability are part of the Saudi National Bank's strategy. In 2024-2025, the bank launched financing programs for affordable housing, clean energy projects, and initiatives to empower women and youth in the financial sector. A portion of the loan portfolio has been allocated to support green economy projects.

These initiatives align with global trends and support the bank's commitments to the community and the environment. This approach enhances the bank's image and increases the attractiveness of Al Ahli stock to investors who prefer companies with a positive impact on society.

To follow Al Ahli stock news and its financial performance, several reliable sources can be relied upon:
- The official website of the Saudi National Bank, which provides annual and quarterly financial reports and dividend announcements.
- The Saudi financial market platform (Tadawul), where daily trading data, financial reports, and official announcements are available.
- Economic news agencies and specialized sites such as 'Argaam' and 'Bloomberg'.
It is important to follow the bank's official disclosures and analyses from financial analysts to get a comprehensive picture of the stock's performance, noting that all data is subject to change based on market conditions.