Five Saudi Banks Achieve Record Profits of $14 Billion in 2024

Photo of the Saudi capital, Riyadh (SPA)
Photo of the Saudi capital, Riyadh (SPA)
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Five Saudi Banks Achieve Record Profits of $14 Billion in 2024

Photo of the Saudi capital, Riyadh (SPA)
Photo of the Saudi capital, Riyadh (SPA)

Five Saudi banks reported record profit growth in 2024, an increase of approximately 12% compared to the previous year, with total earnings exceeding $14 billion (SAR53 billion). The banks include Al Rajhi, National Commercial Bank (NCB), Alinma, Saudi Investment Bank, and Banque Saudi Fransi (BSF).

According to financial disclosures in the Saudi stock market, Alinma Bank recorded the highest growth rate among the five, with profits surpassing SAR5.8 billion ($1.54 billion), marking a 21% increase from the previous year.

Al Rajhi Bank followed, achieving a 19% growth rate, with total profits reaching SAR19.7 billion ($5.2 billion).

Despite posting the highest overall profits—exceeding SAR21.2 billion ($5.6 billion)—NCB reported the lowest growth rate in its history over the past four years, at just 6%.

Saudi Investment Bank recorded an 11% profit increase, reaching SAR1.95 billion ($521.4 million), while BSF saw a 7.6% rise, with total earnings hitting SAR4.5 billion ($1.2 billion).

Three banks—Al Rajhi, NCB, and Alinma—announced total dividend distributions of $3.4 billion (SAR12.6 billion).

NCB declared dividends of SAR6 billion ($1.6 billion) at SAR1 per share, bringing its total distributions for 2024 to SAR11.4 billion ($3 billion).

Al Rajhi Bank announced the highest cash dividend per share at SAR1.46, distributing SAR5.84 billion ($1.56 billion) for the second half of the year, bringing its total 2024 dividends to SAR10.84 billion ($2.9 billion).

Meanwhile, Alinma Bank announced a dividend payout of SAR746.1 million ($199 million) at SAR0.3 per share for the fourth quarter, bringing its total distributions for the year to approximately SAR2.73 billion ($728 million).

Profits Exceed Expectations

Commenting on the financial performance of Saudi banks, Dr. Suleiman Al-Humaid Al-Khalidi, a financial markets analyst and member of the Saudi Economic Association, told Asharq Al-Awsat that 2024 saw a strong financial performance from Saudi banks. This contributed to record-breaking profits in both the fourth quarter and the entire fiscal year, along with generous dividend distributions to shareholders. These earnings surpassed all expectations from financial firms and expert institutions.

Al-Khalidi added that this robust banking performance reflects the strength of the Saudi banking sector and its ability to achieve sustainable growth, reinforcing confidence in the Saudi economy. He noted that the local banking sector ranks among the highest globally in terms of annual profitability and substantial shareholder dividends.

Mohammed Hamdi Omar, Chief Executive Officer of G-World, also said: “We must take a historical perspective when analyzing banking sector profits, considering that Saudi banks have achieved record earnings in recent quarters due to improved cost efficiency, operational enhancements, favorable interest rate environments, and overall market stability.”

In remarks to Asharq Al-Awsat, Omar predicted a 10% increase in corporate lending by Saudi banks in 2025, alongside a rise in banking alliances supporting large-scale projects tied to Vision 2030. He emphasized that local banks would be the primary source of financing for these mega-projects.

He also highlighted a 12% growth in banking sector financing activities in 2024, driven by construction efforts and economic diversification initiatives in Saudi Arabia. He added that Saudi banks are well-positioned to benefit significantly from favorable market conditions and strategic national initiatives, as well as upcoming major events such as Expo Riyadh 2030 and the 2034 FIFA World Cup. These developments position the sector for continuous growth while also addressing challenges related to liquidity, regulatory compliance, and competition with foreign banks increasingly entering the Saudi market.



Riyadh Real Estate Awaits Impact of Measures to Curb Price Surge

Residential and commercial properties in the Saudi capital Riyadh (Reuters)
Residential and commercial properties in the Saudi capital Riyadh (Reuters)
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Riyadh Real Estate Awaits Impact of Measures to Curb Price Surge

Residential and commercial properties in the Saudi capital Riyadh (Reuters)
Residential and commercial properties in the Saudi capital Riyadh (Reuters)

The Saudi real estate market is currently in a state of cautious anticipation, driven by unprecedented decisions and measures announced by Crown Prince Mohammed bin Salman.

These steps aim to increase the supply of properties and restore balance in the market to address the rising costs of land and rental prices.

Data from the market shows a stagnation in property purchases by citizens, as they await the impact of these measures, hoping they will bring stability to property prices in Riyadh and lower costs.

In March, the Crown Prince directed the implementation of a series of regulatory measures, including lifting restrictions on the development of over 81 square kilometers of land north of Riyadh.

This move is expected to deliver tens of thousands of affordable residential plots annually to citizens, following a significant rise in property prices in Riyadh.

According to Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail, these measures will add between 10,000 and 40,000 plots of land annually in the northern region of Riyadh, ensuring a better balance between supply and demand in the market.

The Crown Prince has already donated 1 billion riyals to the National Developmental Housing Foundation (Sakan), represented by Jood Eskan, to support home ownership for eligible families across Saudi Arabia.

The housing projects funded by this donation are to be completed within 12 months and executed by national companies.

The Crown Prince also ordered monthly progress reports to ensure that all residential units are delivered within one year.

Real estate market experts told Asharq Al-Awsat that current market data reveals a stagnation in property purchases by citizens, as they await the impact of recent policy changes and their potential to restore balance to the market.

Many real estate companies and agencies have observed a decline in sales activity, with property marketers facing difficulties in encouraging buyers who prefer to delay decisions until the effects of Crown Prince Mohammed bin Salman’s directives take shape.

Real estate expert and marketer Abdullah Al-Mousa told Asharq Al-Awsat that the current stagnation in property prices in Riyadh is a direct result of the Crown Prince’s initiatives to increase property supply, which aim to restore price equilibrium following the recent surge in real estate costs.

He views the decline as a positive step toward balancing supply and demand, contributing to a more sustainable and fair market for all stakeholders.

Al-Mousa anticipates that this stagnation will persist until all government directives are fully implemented in the coming months.

He noted that, with plans to increase the property supply, the market could experience gradual recovery in the long term, especially given Riyadh’s continued population and economic growth.

The expert highlighted that several factors may sustain the current stagnation, including high interest rates, which reduce citizens’ purchasing power, the oversupply of properties relative to demand, and global economic fluctuations that could affect investments.

However, he emphasized that Riyadh’s ongoing population growth, improving national economy, rising per capita income, large-scale infrastructure projects like the Riyadh Metro, and continued government support for housing programs are expected to drive the recovery of the real estate market.

Al-Mousa also predicted further improvement in the sector as policies are implemented and market conditions are monitored.