Introduction to Banks in Saudi Arabia
The banking system of Saudi Arabia consists of the Saudi Arabia Monetary Authority (SAMA, it is Central Bank of Saudi Arabia), Retail Banks, Private Investment Programs, Specialized lending institutions, and the stock market. SAMA is the Central Bank of Saudi Arabia, and it was established to supervise banks and financial institutions, manage the Monetary Policy of the country, oversee the insurance system, and maintain soundness in the banking system. In Saudi Arabia, banking licenses is issued by the council of ministers upon recommendation from SAMA and Finance Minister. As a result, there are plenty of Saudi banks in major cities of Saudi Arabia, and they offer all the standard financial services which international banks provide.
The outlook of the Saudi Arabia banking system is stable, as announced by credit rating agency Moody’s in March 2018 due to the national economy returning to growth and government spending and strong margins underpin a stable outlook. There are around 24 banks in Saudi Arabia, of which 12 are local Saudi banks and 12 are branches of foreign banks. Saudi Riyal is the official currency of Saudi Arabia, and it is based in the US dollar, so it is affected by the up and down of American currency. Saudi banks work differently to Western banks; it opens at 8 AM and closed at 1 PM, but some banks reopen at 4:30 PM and Closed at 6:30 PM, and all banks are closed on Friday.
Top 10 Banks in Saudi Arabia
Given below are the top 10 banks in Saudi Arabia:
1. National Commercial Bank
National Commercial Bank (NCB) was founded in 1953, and today it is one of the most recognized financial brands in the region. Today NCB operates through a network of 401 branches in Saudi Arabia and serves around 3.3 million customers. NCB employs over 9,631 people out of that 92.1% are Saudis. Bank manages and operates over 3,661 ATMs and 12.806 points of sale machines. Net income reported by the bank of SAR 10,667 Million for 2018, which was SAR 9,802 Million in previous years. Bank assets reached SAR 453 billion during 2018 as compared to SAR 445 billion in previous years. Bank offers services like current, savings, time and other deposit accounts, auto leases, home financing, corporate loans, etc.
2. Al Rajhi Banking Corporation
It was founded in 1957, and it is one of the largest Islamic banks in the world with total assets of SAR 343 billion and paid-up capital of SAR 16.25 billion. Al Rajhi bank operates a thorough network of over 570 branches of which 152 dedicated ladies branches, more than 5,000 ATMs, and 84,000 POS terminals. Bank employs around 9,600 people in Saudi Arabia. Bank operates through four segments retail, corporate, treasury and investment services, and brokerage. In 2018 banks reported a net profit of SAR 10,297 Million which is 12.9% higher than compared the previous year. The total operating income of the bank also increased by 8.9% in 2018 as compared to 2017.
3. Samba Financial Group
Samba was founded in 1955 and it is one of the region’s largest and acclaimed financial services groups. It operates through consumer banking, corporate banking, treasury, and investment banking segments. It offers services like a current, time deposit, call and saving accounts, Credit Cards, retail investment products, individual and consumer loans. Bank reported a net profit of SAR 5,528.779 Million in 2018 which was SAR 5,025.065 Million during 2017. Bank operates through a network of 72 branches and 540 ATMs and 25 ladies centers. It also has its branch in London and Qatar.
4. Riyad Bank
Riyad Bank is one of the largest financial institutions in Saudi Arabia established in 1957 with paid-up capital of SAR 30 billion. Bank provides a comprehensive range of products and services to both retail and corporate customers, including small and medium-sized enterprises. Bank operates through a network of 340 branches of which 79 are ladies branches, More than 2,592 ATMs, and 32,000 POS. Bank reported a net income of SAR 4,716 Million for the year ended December 2018 which is 19.5% higher than 2017. Total assets as of December 2018 reached SAR 229,900 Million an increase of 6.3% as compared to the previous year 2017. Bank won the Best Retail Bank In Saudi Arabia 2018 Awards presented by Global Banking and Finance Review.
5. Banque Saudi Fransi
Banque Saudi Fransi (BSF) is a Saudi Arabian joint stock company established in 1977. BSF objective is to provide all types of commercial banking services to both domestic and international customers. Bank operates through the network of 83 branches and 18 ladies section branches, 556 ATMs and 18,025 POS and it employs around 3,000 people till 2017. BSF reported net income of SAR 3,307.054 Million during 2018 which was SAR 3,531.884 Million in 2017. Total assets with the BSF were SAR 190 billion in 2018. The Bank offers services like home and personal loans, saving accounts, current accounts, time deposits, and notice deposits, consumer loans, and overdrafts.
6. Saudi British Bank
The Saudi British Bank (SABB) was founded in January 1978 and is a subsidiary of the HSBC group. SABB provides a comprehensive range of banking products and services to both retail and corporate sectors which include current and savings account, corporate credit facility, Consumer and mortgage loans, trade finance, cash and payments management, etc. Bank reported operating income of SAR 7,377 Million during 2018 and the bank reported a net profit of SAR 4,929 Million in 2018. Total assets of SAR 174.6 billion in December 2018 decreased by 5.7% as compared to 2017.
7. Arab National Bank
Arab National Bank was established in 1979 and it offers a comprehensive range of commercial and investment banking services. Bank also provides specialized services in the fields of heavy equipment leasing and home finance. Bank operates through a network of 183 branches of which 44 are ladies section, a bank also has more than 1,250 ATMs, 15,500 POS terminals, and easy-to-use mobile banking applications. Arab National Bank net profit grew by 9.3% year-on-year to SAR 3.3 billion for the year 2018. It is among the 10 largest banks in the Middle East and ranked as ‘A’ from Standard and Poors.
8. Alawwal Bank
Alawwal Bank was founded in 1926 and provides trusted banking services and innovative financial solutions to the people and businesses of Saudi Arabia. Today bank operates through a network of 67 branches and 543 ATMs and it employs around 1,718 people. In 2018 banks reported a net profit of SAR 1,330 Million, and a total operating income of SAR 3,563 Million. Moody’s long-term rating to the bank is ‘A3’ and short-term rating is ‘P-2’. Bank provides services like terms loans, overdrafts, trade finance services, saving and deposit accounts, etc. In 2018 Alawwal Bank won the Best CEO in Retail Banking Awards at the Enterprise Agility Awards in Dubai.
9. Alinma Bank
Alinma Bank was founded in 2006 and it operates through retail banking, corporate banking, treasury and investment, and brokerage segments. Bank offers various retail services like current, savings, education, and investment accounts, cash management services, car, real estate, and education financing, etc. In the year 2018 bank reported a net income of SAR 3,798 Million which was SAR 3,493 in 2017, and net profit reported as SAR 2,517 Million which was SAR 2,011 Million in 2017. Alinma bank operates through a network of 80 branches in Saudi Arabia, and it employs around 2,658 people.
10. Saudi Investment Bank
Saudi Investment Bank was founded in June 1976 and started its business in March 1977. Bank offer services like traditional Wholesale, retail banking and commercial banking products. Bank offers services like Current, Salary, Murabaha accounts, provides loans, deposit, and other credits products for individual, Small and medium-sized businesses. In 2018 bank reported net income of SAR 1,458.718 Million which was SAR 1,410.798 Million during 2017, and bank employs 1,581 people and has 50 branches around Saudi Arabia. Total assets with the bank as of December 2018 is SAR 96 Billion.
This has been a guide to Banks in Saudi Arabia. Here we have discussed the 10 top most banks in Saudi Arabia with their financial structure. You may also look at the following articles to learn more –