Al Rajhi Bank, one of the world's largest Islamic banks and a cornerstone of the Saudi financial sector, announced a significant leap in its 2025 financial results, with net profits rising by 25.7% to reach SAR 24.8 billion, compared to profits of SAR 19.7 billion in 2024. These record figures reflect the bank's strong operational performance and its ability to adapt to economic changes and capitalize on available growth opportunities.
According to the official statement published on the Saudi Stock Exchange (Tadawul) website, this significant growth in net income is primarily attributed to a notable 22% increase in total operating income. This rise resulted from strong performance across various business segments, including increased net financing and investment income, growth in banking service fee revenues, and improved income from other operations and foreign exchange transactions, demonstrating the bank's diversified revenue streams.
Conversely, the financial results demonstrated prudent cost management, with total operating expenses, including the provision for credit losses, increasing by 13.5%. This rise was driven by increased general and administrative expenses, depreciation, and employee salaries and benefits, reflecting the bank's expanding operations. The bank also strengthened its provisions for potential credit losses, which increased by 9.6% to SAR 2,320 million, compared to SAR 2,117 million in the previous year, demonstrating a proactive risk management policy.
Economic context and importance of results
These positive results come at a time when the Saudi economy is undergoing a structural transformation within the framework of "Saudi Vision 2030," which aims to diversify income sources and strengthen the role of the private sector. The banking sector, and Al Rajhi Bank in particular, plays a pivotal role in financing major projects and supporting small and medium-sized enterprises (SMEs), making it a reflection of the health of the national economy. The bank's profit growth in this manner strongly indicates increased economic activity, rising consumer and investor confidence, and the overall strength of the Saudi banking sector's financial soundness.
Recommendation to distribute cash dividends
As a culmination of these strong financial results, the Board of Directors of Al Rajhi Bank recommended the distribution of generous cash dividends to shareholders for the second half of 2025. The bank explained in its statement that the total amount recommended for distribution is 7 billion riyals, which will be distributed over 4 billion shares eligible for dividends.
The dividend per share is SAR 1.75 after deducting zakat, representing a distribution of 17.5% of the share's nominal value. The bank indicated that dividend entitlement will be for shareholders registered in the bank's records at the Securities Depository Center (Edaa) at the close of the second trading day following the date of the General Assembly meeting, which will be announced later. This recommendation received the approval of the Saudi Central Bank (SAMA), confirming the bank's strong financial position and its commitment to sound governance policies.
