Source Credit: Ashraq Al-Awsat
Five of the largest Saudi banks saw record-breaking profit growth in 2024, up over 12% from the year before. Strong financial results and effective market positioning propelled their combined earnings to almost $14 billion (SAR 53 billion). The banks at the forefront of this upsurge are Banque Saudi Fransi (BSF), Al Rajhi, National Commercial Bank (NCB), Alinma, and Saudi Investment Bank.
Alinma Bank Leads Growth, NCB Reports Highest Profits, Based on the Saudi stock market's financial disclosures:
- With a 21% increase in profits to SAR 5.8 billion ($1.54 billion), Alinma Bank had the greatest growth rate.
- Al Rajhi Bank reported SAR 19.7 billion ($5.2 billion), a 19% increase in profits.
- NCB recorded the most total profit of SAR 21.2 billion ($5.6 billion), although its growth rate was just 6%, the lowest in four years.
- The profits of Saudi Investment Bank increased by 11% to SAR 1.95 billion ($521.4 million).
- BSF's overall earnings reached SAR 4.5 billion ($1.2 billion), a 7.6% increase.
Dividend Distributions Reach $3.4 Billion
A total dividend payout of $3.4 billion (SAR 12.6 billion) was declared by three of the top banks: Al Rajhi, NCB, and Alinma.
- NCB announced SAR 6 billion ($1.6 billion) in dividends at a price of SAR 1 per share, for a total of SAR 11.4 billion ($3 billion) in 2024 payouts.
- Al Rajhi Bank announced the highest cash dividend per share at SAR 1.46, distributing SAR 5.84 billion ($1.56 billion) for the second half of the year. As a result, its dividends for 2024 totaled SAR 10.84 billion ($2.9 billion).
- For the fourth quarter, Alinma Bank paid out a dividend of SAR 746.1 million ($199 million) at a price of SAR 0.3 per share, for a total of SAR 2.73 billion ($728 million) for the year.
Expert Insights: Profits Surpass Market Expectations
Improved cost effectiveness, operational improvements, advantageous interest rates, and general market stability are cited by financial analysts as the reasons for these record earnings.
According to Saudi Economic Association member and financial markets analyst Dr. Suleiman Al-Humaid Al-Khalidi, Saudi banks exceeded forecasts in 2024 with outstanding financial outcomes. He underlined that this accomplishment demonstrates the resilience of the Saudi banking industry and its capacity for long-term expansion.
G-World CEO Mohammed Hamdi Omar emphasized that Saudi banks are in a strong position to fund the Vision 2030 mega-projects since they have profited from a historical trend of profit growth. Omar predicted a 10% increase in business financing in 2025 as Saudi banks back major infrastructure initiatives in line with Vision 2030. He also noted that Saudi Arabia's economic diversification and building boom would result in a 12% increase in banking sector financing activity in 2024.
