Saudi First Bank (SAB) announced strong financial results for the fiscal year ending December 31, 2023, recording a net profit of SAR 7.5 billion. This represents a significant increase of 46% compared to the SAR 5.1 billion profit recorded in 2022. This outstanding performance reflects the strength of the bank's strategy and its ability to adapt to economic changes, capitalizing on the positive economic environment in the Kingdom of Saudi Arabia.
According to the bank's official statement published on the Saudi Stock Exchange (Tadawul) website, this significant profit growth is primarily attributed to a rise in total operating income. This increase was driven by higher net special commission income, growth in banking service fees, and increased foreign exchange income. However, these gains were partially offset by a rise in total operating expenses, reflecting the bank's ongoing investments in developing its technological infrastructure and expanding its digital services to enhance the customer experience.
General context and historical background
This achievement comes at a significant turning point for Saudi First Bank. The bank, in its current form, is the product of the largest merger in the Saudi financial sector, which took place in 2021 between the Saudi British Bank (SABB) and Alawwal Bank. This merger resulted in the creation of a banking giant that ranks third among the largest banks in the Kingdom in terms of assets. In early 2023, the bank completed its transformation by officially rebranding as “Saudi First Bank” (SAB), a move aimed at solidifying its new identity and strengthening its position in the local market.
The importance of the event and its expected impact
Domestically, these results are a strong indicator of the resilience of the Saudi banking sector and its ability to finance the mega-projects associated with Saudi Vision 2030. The profit growth of a bank the size of Alawwal Bank also reinforces confidence in the national economy and encourages increased investment and business activity. Regionally, this performance strengthens Alawwal Bank's position as a key player in the Gulf financial landscape and enhances its competitiveness with major regional banks. Internationally, these positive figures contribute to attracting the attention of foreign investors to the Saudi Stock Exchange (Tadawul) and highlight the promising opportunities offered by one of the largest economies in the G20, thus supporting the Kingdom's goals of becoming a global financial center.
