The National Bank of Saudi Arabia (NBS), the largest financial institution in the Kingdom of Saudi Arabia, announced a significant step reflecting its strong financial position and operational stability, as its Board of Directors recommended the distribution of substantial cash dividends to shareholders for the second half of the 2025 fiscal year. This recommendation reinforces investor confidence in the bank's performance and its ability to achieve sustainable returns.
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the bank revealed that the total amount recommended for distribution is SAR 6.9 billion . This amount will be distributed across 6 billion shares eligible for dividends, meaning that the dividend per share will be SAR 1.15 after deducting zakat. This represents a distribution rate of 11.5% of the share's nominal value, which is a positive indicator of the bank's commitment to providing added value to its shareholders.
General context and importance of the decision
The National Commercial Bank (NCB) holds a leading position in the banking sector, not only locally but also regionally, especially after its historic merger with Samba Financial Group, which resulted in a giant banking entity. The recommendation to distribute dividends comes in light of the bank's strong financial performance, which aligns with the Kingdom's economic growth under Vision 2030, aimed at diversifying the economy and strengthening the role of the financial sector.
Expected impact on the market and the economy
This announcement is expected to have a multifaceted positive impact. Domestically, the decision enhances the attractiveness of the bank's shares on the Saudi Stock Exchange (Tadawul) and underscores the strength of the Saudi banking sector as a whole, a cornerstone of the national economy. Furthermore, injecting such a large amount of liquidity into the hands of shareholders will stimulate investment and spending, positively impacting the economic cycle. Regionally and internationally, this announcement reinforces the bank's reputation as a reliable and stable financial player, attracting further foreign investment to the Saudi market and strengthening the Kingdom's position as a leading financial center in the Middle East.
Eligibility and distribution details
The bank clarified that dividend entitlement will be for shareholders registered in the bank's records at the Securities Depository Center Company (Edaa) at the close of trading on the day of the bank's General Assembly meeting, the date of which will be announced later. The dividend distribution start date will also be announced later, after obtaining the necessary approvals. It is worth noting that this recommendation has received the approval of the Saudi Central Bank (SAMA), confirming its compliance with regulatory requirements and ensuring the soundness of the bank's financial procedures.
