Strong growth in Bank Albilad's profits for 2025
Bank Albilad announced strong financial results for the fiscal year 2025, recording net profits of SAR 3 billion, a significant increase of 8.7% compared to SAR 2.8 billion in 2024. These positive results reflect the bank's growing operational performance and its ability to adapt to economic changes, supported by the growth of its financing and investment portfolios.
Financial performance details and growth drivers
According to the official statement issued by the bank and published on the Saudi Stock Exchange (Tadawul) platform, this increase in profits is mainly attributed to several positive factors, most notably:
- Net income growth: Increase in net income generated from investment and financing assets.
- Increased operating income: Growth in other operating income and net fee and commission income.
- Investment gains: Realizing net gains from investments listed at fair value, plus an increase in dividends received.
Conversely, the bank experienced a decline in foreign exchange gains. On the expenses side, total operating expenses increased by 10%, primarily due to higher general and administrative expenses, salaries and related costs, as well as an increase in net provisions for expected credit losses and depreciation and amortization expenses.
Performance in the context of the Saudi economy and Vision 2030
These results come at a time when the Saudi banking sector is experiencing strong growth, driven by the economic momentum generated by Saudi Vision 2030. Major projects and economic diversification programs are contributing to increased demand for financing and investment services for both individuals and corporations. Bank Albilad's performance is an indicator of the strength of the Kingdom's financial sector and its ability to finance ambitious development plans, within a stable regulatory environment overseen by the Saudi Central Bank (SAMA).
The importance of the results and their impact on the market
The growth in Bank Albilad's profits reflects investor and customer confidence in its expansion strategy and asset quality. These positive results are expected to strengthen the stock's position on the Saudi Stock Exchange (Tadawul) and may also positively impact financial analysts' assessments of the banking sector as a whole. The ability of major banks like Bank Albilad to achieve sustainable profit growth is a key pillar for supporting the stability of the local economy and attracting foreign investment.
Recommendation to distribute cash dividends to shareholders
To further enhance the return on shareholders' equity policy, the Board of Directors of Bank Albilad recommended the distribution of cash dividends to shareholders for the second half of the 2025 fiscal year. The distribution details are as follows:
- Total amount distributed: 825 million riyals.
- Number of shares due: 1.5 billion shares.
- Share amount: 0.55 riyals (after deducting zakat).
- Distribution ratio: 5.5% of the nominal value of the share.
The bank explained that the entitlement to profits will be for shareholders registered at the end of the day of the general assembly meeting, the date of which will be announced later, and the distribution date will also be determined at a later time.
