When Are Al Rajhi Bank Dividends Distributed in 2022? Detailed Mechanism and

Dividend distribution is the process by which companies listed on the Saudi Stock Market allocate a portion of their net profits to shareholders in the form of cash dividends or bonus shares. This process is governed by the Capital Market Authority regulations and company bylaws, requiring the board of directors to first recommend the distribution, which is then submitted to the general assembly of shareholders for approval. After approval, the entitlement and payment dates are set—these are the key dates shareholders must track to receive dividends. For banks like Al Rajhi Bank, there are additional prudential requirements, including allocating a portion of profits to statutory reserves and considering liquidity and solvency per central bank directives. All these measures aim to ensure fair distribution and protect the interests of all shareholders while maintaining the sustainability of the company or bank.

For the 2022 fiscal year, Al Rajhi Bank followed the standard Saudi market procedure for dividend distribution. Financial results are typically announced in the first quarter of the following year (i.e., 2023 in this case), and the board convenes the general assembly to approve the results and dividend recommendation. After shareholder approval, the entitlement date is set for those eligible to receive dividends, with the payment date usually following shortly after (within one to two weeks). According to market data, Al Rajhi Bank's 2022 dividends were actually paid in the second quarter of 2023. It is always advisable to consult the official Tadawul website and Al Rajhi Bank announcements to confirm final dates, as all details are published once approved by regulatory authorities.

Al Rajhi Bank is known for its consistent and attractive dividend policy, with the board allocating a significant portion of net profits for annual cash distributions. In recent years, the payout ratio has ranged between 30% and 70% of net profit, with a clear tendency to maintain stable distributions even during volatile economic periods. This approach boosts investor confidence, attracts new shareholders, and reinforces the bank’s image as a strong financial institution committed to shareholder interests. This policy is reflected in the share price performance and high trading volumes, positioning Al Rajhi as a preferred choice for investors seeking stable income and sustainable annual returns.

While the focus here is on 2022 dividends, it is useful to review the bank's financial indicators in subsequent years for a comprehensive performance picture. At the end of 2024, Al Rajhi Bank’s share price was around SAR 95, with a market capitalization of approximately SAR 1.2 trillion. The price-to-earnings ratio ranged from 12 to 15 times during 2024 and 2025, a balanced level compared to other Saudi banks. Total dividends in 2024 exceeded SAR 9 billion, with an average annual yield of 8-10% per share. In 2022, the board recommended a distribution of about SAR 1 per share at year-end, with total annual dividends reaching around SAR 3 per share (including quarterly payouts), making it one of the highest-yielding Saudi stocks at the time.

The entitlement date is when the final shareholder register is set for those eligible to receive dividends. If you hold Al Rajhi Bank shares through the end of the entitlement date, you will receive the due dividends even if you sell the shares the next day. The payment date is when the dividends are transferred to shareholders’ bank accounts. The gap between these dates is typically 7 to 14 business days. Investors are advised not to sell shares before the entitlement date if aiming to benefit from the distribution and to follow official bank announcements for precise dates each cycle.

Once the dividend distribution decision is approved by the general assembly, Al Rajhi Bank transfers cash dividends directly to registered shareholders’ bank accounts or investment portfolios. This is done electronically via SADAD or direct deposit, ensuring fast and efficient payment to all eligible recipients. If the shareholder holds an account with Al Rajhi Bank, the process is almost immediate. For those holding shares through other brokers, dividends are credited to the investment account linked to their trading portfolio. In rare cases, shareholders may need to contact the bank if dividends are delayed or if account details require updating.

When cash dividends are distributed, the share price theoretically drops on the trading day following the entitlement date by the amount of the declared dividend per share (known as the ex-dividend date). Despite this temporary drop, the share often rebounds if demand remains strong and further signs of robust financial performance emerge. In Al Rajhi Bank’s case, the share has maintained its appeal after each distribution, thanks to the bank’s continued strong results and attractive shareholder returns. This pattern reflects investor confidence in the sustainability of profits and regular distributions over the long term.

Al Rajhi Bank competes with several major Saudi banks, such as Saudi National Bank (SNB), Riyad Bank, Bank Albilad, Alinma Bank, and Saudi British Bank (SABB). While some of these banks also offer attractive dividends, Al Rajhi’s conservative and balanced approach between payouts and retained earnings has made its annual yield more stable. Whereas some competitors may increase distributions in certain years, Al Rajhi maintains a gradual approach in line with actual profit growth and capital adequacy needs. This strategy has earned it a strong reputation among investors seeking stable income and financial security.

Dividend distributions in Saudi Arabia are strictly regulated by the Capital Market Authority and the Saudi Central Bank. Regulations require a portion of profits to be transferred to statutory reserves and impose capital adequacy standards to ensure the bank’s ability to meet future obligations without undermining financial stability. Shareholder approval at the general assembly is also mandatory before any distribution is executed. These regulatory measures protect shareholders from unsound decisions and ensure the bank’s long-term sustainability, prompting banks like Al Rajhi to adopt prudent and balanced dividend policies.

Al Rajhi Bank continued to pay generous cash dividends in 2024 and 2025, with annual distributions reaching SAR 9-10 billion and annual yields between 8% and 10% per share. The bank also announced regular quarterly and semi-annual distributions, supported by strong profit growth, rising demand for Islamic financing, and digital transformation expansion. Al Rajhi Bank has also received high credit ratings from global agencies and launched sustainability and green finance initiatives. The continuation of these policies enhances the stock’s appeal to investors and reaffirms the bank’s commitment to delivering added value to its shareholders.

It is crucial for investors to pay attention to entitlement and payment dates when making buy or sell decisions. To receive dividends, you must hold the shares through the end of the entitlement date. Those who purchase shares after this date are not eligible for that cycle’s dividends. Conversely, selling shares after the entitlement date does not affect your right to receive the declared dividends, as your entitlement is recorded in the shareholder register according to market regulations. Investors are always advised to follow official bank and market announcements to avoid any confusion or loss of entitlement.

Dividends are a key component of long-term investment strategies in the Saudi market. They provide regular income for investors and help reduce overall share return volatility, partially offsetting any potential price declines. For Al Rajhi Bank, dividends are a central factor in attracting both individual and institutional investors seeking stability and security in returns. Dividends also enhance market confidence in the share and support the bank’s image as a responsible financial institution balancing growth and payouts.

Investors can follow all updates on Al Rajhi Bank dividends through several official sources, most notably: the official Al Rajhi Bank website (Investor Relations section), the Saudi Stock Exchange (Tadawul) website, and applications such as Tadawulaty and Mubasher. Leading financial news agencies like Argaam and Al Eqtisadiah also provide accurate coverage of dividend dates and amounts. It is always recommended to rely on these sources to avoid rumors or inaccurate information circulating in unofficial forums.