Latest news with #Al-RajhiBank
Leaders
19-03-2025
- Business
- Leaders
Forbes Middle East Most Valuable Banks 2025: Saudi Arabia in the Lead
Forbes Middle East has revealed its list for 30 Most Valuable Banks 2025, featuring banks from seven Middle Eastern countries. Saudi Arabia dominates the list with 10 banks, representing a total market value of $269 billion. Al-Rajhi Bank maintains its position on the top of the Forbes list, with a market value of $105.6 billion, accounting for 17.6% of the total market value of the 30 banks. 30 Most Valuable Banks 2025 The Forbes Middle East 30 Most Valuable Banks 2025 list has shown an increase in the combined market value of MENA's most valuable banks by 3.4% to reach $600.8 billion as of January 31, 2025, compared to $581.1 billion on February 23, 2024. The 2025 list includes banks from seven countries, 26 of which are Gulf-based. Saudi banks represents third of the list with 10 banks, followed by the UAE with 7 banks and a market value of $153.4 billion. Qatar comes next with 6 banks having a market value of $76.7 billion, followed by 3 banks for Morocco and 2 banks for Kuwait, valued at $23.7 billion and $68.4 billion, respectively. Al-Rajhi Bank Al-Rajhi Bank maintains its position as the most valuable bank in the region, serving 18.5 million customers across 550 branches in Saudi Arabia, Jordan, Kuwait, and Malaysia, as of December 2024. It has a total market value of $105.6 billion. In 2024, the bank reported a significant growth, increasing its net income by 18.7% to hit $5.3 billion and expanding its total assets by 20.6% to $259.8 billion. Saudi National Bank (SNB) With a total market value of $54.7 billion, the SNB ranks second in the Forbes list. The bank operates 481 branches, 21 retail service centers, and 93 QuickPay remittance centers in Saudi Arabia, having overseas branches in Bahrain, the UAE, Qatar, and Singapore, in addition to subsidiaries in Pakistan and Türkiye. The SNB served 14.4 million customers and recorded total assets of $294.4 billion, as of December 2024. Furthermore, the bank expanded into Taiwan's Formosa market in July 2024, issuing a $500 million five-year FRN bond under its $5 billion Euro medium-term note program. Riyad Bank The Riyad Bank comes in the 9th place, with a total market value of $23.4 billion. It operates 333 branches in Saudi Arabia, a branch in London, an agency in Houston, and a representative office in Singapore. In 2024, Riyad Bank's net income surged by 15.9% to reach $2.5 billion. Meanwhile, its total assets increased by 16.42% to $120.1 billion. Alinma Bank In the 10th place comes Alinma Bank, with a market value of $19.9 billion. It was established in 2006 as a Shariah-compliant banking services provider. As of December 2024, Alinma Bank served 5.5 million customers across Saudi Arabia. In 2024, the bank's net income surged by 20.5% to $1.6 billion. Moreover, it entered into a $756 million Murabaha financing agreement with Bahri to partially fund the acquisition of 9 modern oil tankers. Saudi Awwal Bank (SAB) The Saudi Awwal Bank secures the 11th spot on the Forbes list, having a market value of $19.7 billion. It has a network of 103 branches and 4,062 employees in Saudi Arabia. In 2024, the bank's net profit increased by over 15% to hit $2.2 billion. In December 2024, Saudi Awwal Bank issued a $1.1 billion SAR-denominated additional tier 1 Sukuk. Bank Albilad With a total market value of $13.3 billion, Bank Albilad comes in the 16th place. It offers Shariah-compliant banking services through more than 107 branches across Saudi Arabia. Moreover, Bank Albilad owns Albilad Investment Company, Albilad Real Estate Company, Enjaz Payment Services Company, and Financial Solutions Company for Investment. In 2024, the bank's net profit jumped by 18.5% to hit $748.4 million. Arab National Bank (anb) The 18th place goes for the Arab National Bank, with 122 branches in Saudi Arabia, 58 remittance centers, and one branch in the UK. It has a total market value of $11.4 billion. In 2024, the anb's net profit grew by 22% to reach $1.3 billion. Furthermore, the Saudi Real Estate Refinance Company extended its refinancing agreement with the Arab National Bank with an additional $133.3 million in May 2024. BSF Banque Saudi Fransi (BSF) secures the 19th place with a market value of $10.7 billion. It serves around 1.3 million customers across Saudi Arabia, through 81 branches, 393 ATMs, and 27,816 terminals. In 2024, the BSF's assets were values at $78.1 billion. The bank raised a $750 million five-year Asian syndicated loan from 26 investors in November 2024. Moreover, it issued a $750 million sukuk in January 2025. Bank AlJazira Bank AlJazira ranks 24th, having a market value of $5.15 billion. It provides Shariah-compliant banking services across 73 branches and 38 Fawri remittance centers in Saudi Arabia. In 2024, the bank's net profit grew by 20.7% to hit $328.3 million. It also issued a $266.7 million SAR-denominated additional tier 1 Sukuk under its $1.3 billion capital issuance program in January 2025. The Saudi Investment Bank (SAIB) SAIB secures the 26th place on the Forbes list. It has a market value of $5.03 billion, serving over 927,000 customers across 51 branches in Saudi Arabia. The bank's total assets recorded a growth of 20.5% in 2024 to hit $41.8 billion. In 2024, SAIB Venture Studio launched its first product, the SAIB Travel App. Short link : Post Views: 63
Arab News
19-03-2025
- Business
- Arab News
Saudi Arabia dominates Forbes' 2025 list of MENA's most valuable banks
RIYADH: Saudi Arabia dominated Forbes' '30 Most Valuable Banks 2025' ranking, with 10 entries boasting a combined market value of $269 billion. According to the business-focused media outlet, financial institutions from the Kingdom made up nearly a third of the total $600.8 billion market capitalization of the listed banks. The UAE followed with seven facilities valued at $153.4 billion, while Qatar contributed six banks worth $76.7 billion. Morocco and Kuwait placed three and two banks on the list, with market values of $23.7 billion and $68.4 billion, respectively. The Middle East and North Africa region's banking sector remains resilient and is set for strong growth in 2025, driven by economic diversification, favorable financial conditions, and a projected 3.5 percent economic expansion fueled by infrastructure projects and rising non-oil activity, according to a recent report by Ernst & Young. In a statement announcing its latest rankings, Forbes said: 'This year's list features banks from seven countries, with 26 entries being Gulf-based. Saudi Arabia represents a third of the list with 10 entries, with an aggregate market value of $269 billion.' The media firm noted that the total market value of the 30 banks increased by 3.4 percent year over year, rising from $581.1 billion in February 2024 to $600.8 billion as of Jan. 31, 2025. Al-Rajhi Bank holds the top spot Al-Rajhi Bank retained its position as the region's most valuable bank, leading with a market capitalization of $105.6 billion — representing 17.6 percent of the total market value of the 30 banks. It was followed by Saudi National Bank at $54.7 billion, and the UAE's First Abu Dhabi Bank, valued at $43.7 billion. Beyond the top three, Qatar's QNB Group and Kuwait Finance House ranked fourth and fifth, with market values of $41.2 billion and $38.3 billion, respectively. They were followed by the UAE's Emirates NBD Group at $28.9 billion and Kuwait's National Bank of Kuwait at $27.1 billion. Other notable banks in the ranking include Abu Dhabi Commercial Bank and Riyad Bank. The list also features banks from Morocco and Oman. A resilient sector MENA's banking sector has shown stability over the past year, supported by higher interest rates and robust oil prices. According to a Fitch Ratings report published in 2024, the economic environment in the region has sustained liquidity levels, profitability, and strong capital buffers for most Gulf Cooperation Council banks. Forbes Middle East compiled the ranking based on reported market values of publicly listed banks across the Arab world as of Jan. 31, 2025. Subsidiaries of listed companies were excluded from the ranking, and currency exchange rates were taken as of the same date.
Asharq Al-Awsat
14-03-2025
- Business
- Asharq Al-Awsat
Positive Outlook for Saudi Stock Market Next Week
Saudi Arabia's Tadawul All Share Index (TASI) ended the second week of March with a slight decline for the third consecutive week, closing down 0.73% at 11,725.88 points, compared to the previous week's close of 11,811.11 points. In an analysis of the market performance during the week ending March 13, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst, told Asharq Al-Awsat that the market experienced a sharp decline not seen in years, coinciding with a drop in global markets, particularly in the US, where $2 trillion in value was wiped out in a single day. This accounted for roughly 60% of the total market value of the Saudi stock market. Al-Khalidi noted that the key player in the Saudi market is the banking sector, especially Al-Rajhi Bank's shares, which showed resilience and did not follow the downward trend. This was attributed to the strong profits reported by the banking sector in 2024. The primary factors contributing to the market's decline include global economic pressures, particularly US tariffs on most global economies, ongoing global uncertainty, and the Federal Reserve's tight monetary policies, he explained. These factors have significantly impacted liquidity flows into financial markets. Additionally, fluctuations in global oil prices, despite recent stability, have also played a role. This downturn has been accompanied by caution among sovereign wealth funds, investment institutions, and some portfolios in injecting new liquidity or altering their positions until there is more clarity in the financial markets, he went on to say. Moreover, Al-Khalidi said that the Saudi stock market has not accurately reflected the true strength and size of the Saudi economy, which has grown to SAR 4 trillion, up from SAR 600 billion in 2016, before the launch of Vision 2030. Additionally, the country's GDP has reached approximately $1.1 trillion. Looking ahead to the market's performance in the coming week, he noted that there are strong support levels at 11,550 points, followed by 11,450 points. These levels could help shift the market toward an upward trajectory and better reflect the robust growth of the Saudi economy. Al-Khalidi emphasized that the banking and energy sectors could play a leading role in driving the market higher, pushing the index beyond this week's closing levels. He also pointed out that some stocks are hitting new lows, presenting significant investment opportunities for those seeking safe havens with steady returns in the Saudi market.
Arab News
12-03-2025
- Business
- Arab News
Saudi banks see profit surge in Q4 as rate cuts boost margins: Fitch Ratings
RIYADH: Saudi banks recorded a net income of SR21.5 billion ($5.7 billion) in the fourth quarter of 2024, up from SR20 billion in the previous three-month period, according to Fitch Ratings. The improvement was primarily driven by interest rate cuts, which enhanced net margins, alongside strong lending growth expected to outpace Gulf peers in 2025. Fitch Ratings' outlook aligns with S&P Global's January projection that banks in the Kingdom will sustain stable profitability in 2025 as higher lending volumes offset lower margins while continuing to tap international capital markets for growth related to the country's Vision 2030. The agency estimated the average net interest margin for Saudi banks increased to 3.2 percent in the last quarter of 2024 from 3.1 percent in the first nine months of the year. The improvement followed a 12-basis-point reduction in banks' cost of funding to 3.2 percent after the central bank lowered interest rates by 50 basis points. Meanwhile, the yield on average earning assets remained stable at 6.3 percent. 'Banks with higher levels of retail financing benefited most,' Fitch said. Al-Rajhi Bank and Bank Aljazira posted quarter-on-quarter NIM increases of 20 basis points to 3.4 percent and 2.3 percent, respectively. Saudi National Bank's NIM also improved, rising to 3 percent in the fourth quarter from 2.7 percent in the previous one. Strong annual performance Banks in the Kingdom reported a combined net profit of SR80 billion in 2024, up from SR70 billion in 2023, with the sector's average return on equity climbing to 15 percent from 14 percent. The rise in earnings was supported by robust growth and a lower cost of risk, which dropped to 30 basis points from 40 basis points a year earlier, reflecting a healthy operating environment. Lending activity remained strong, expanding by SR87 billion in the last quarter of 2024. Al-Rajhi Bank led the growth with an increase of SR44 billion, evenly split between its retail and corporate segments. Annually, gross financing at Saudi banks grew by an average of 14 percent, up from 11 percent in 2023. Saudi Awwal Bank, the Saudi Investment Bank, and Bank Aljazira recorded above-average growth. Fitch forecasted financial institutes in the Kingdom to 'continue outpacing Gulf peers in 2025,' with sector financing projected to rise by 12 percent, supported by further rate cuts and improved liquidity. Deposit trends and liquidity management Customer deposits at Saudi banks declined by SR35 billion in the last quarter — the first quarterly drop since 2019. Fitch attributed this to seasonal factors and expects deposits to rebound in the first three months of this year, as in previous years. In January, deposits increased by SR40 billion, according to data from the Saudi Central Bank. SNB experienced the largest deposit outflow in the fourth quarter, with its balance declining by SR54 billion, including an SR30 billion drop in current and savings deposits. They accounted for 72 percent of SNB's total deposit base. To offset the decline, the bank utilized repo facilities and money market deposits, leading to an increase in its Fitch-calculated loans-to-deposits ratio to 115 percent by year-end, compared to a sector average of 105 percent. The bank's regulatory loans-to-deposits ratio remained at 84 percent. Stable external liabilities and asset quality Saudi banks' external liabilities remained steady at around SR0.4 trillion at the end of the fourth quarter, representing 11 percent of total sector funding. 'We expect Saudi banks to gradually increase their reliance on external funding, especially if corporate borrowers continue to demand foreign-currency financing, but net foreign assets will remain below 2 percent in 2025,' the agency said. The sector's impaired financing balance decreased by SR2 billion in the last three months of 2024, contributing to a decline in the impaired financing ratio to 1.4 percent from 1.7 percent at the end of 2023. Provision coverage of impaired financing remained strong at 114 percent by year-end, and Fitch expected Saudi banks' asset quality metrics to remain robust in 2025. Capital adequacy and sector outlook The sector's Common Equity Tier 1 ratio decreased by 80 basis points to 15.7 percent in 2024 due to growth and dividend distributions. However, the Tier 1 and total capital adequacy ratio declines were more moderate, at 30-40 basis points, as banks issued Additional Tier 1 and subordinated debt.
