RIBL
Riyad Bank
As of: May 28, 2026
Company Profile
Riyad Bank ("The Bank") is a Saudi Joint Stock Company incorporated in the Kingdom of Saudi Arabia, formed in 1377H (1957G). The Bank operates through its 332 licensed branches in KSA, a branch in London, an agency in Houston, and a representative office in Singapore. The Group provides a full range of conventional and non-conventional banking and investment services (approved by an independent Shariah Board). Key subsidiaries include Riyad Capital (100% ownership, investment services and asset management), Ithra Al-Riyad Real Estate Company (100%), Esnad Al-Riyadh (100%), Curzon Street Properties Limited (100%), Riyad Financial Markets (100%), Jeel Digital Innovation Company (100%), and 1957 Ventures (100%). The Public Investment Fund (PIF) is a major shareholder holding 22% of the shareholding.
The Story
Riyad Bank is a premier Saudi financial institution balancing a dominant corporate lending franchise with a rapidly expanding Shariah-compliant asset base, delivering a solid 13.79% ROE and a 9.26% sustainable growth rate.
Source: Annual 2025 (2026-05-17)
Performance & Distributions
Market Pricing Multiples
Growth Story
Riyad Bank's growth engine is powered by its robust net loan book expansion to SAR 373.3B, representing a significant deployment of capital primarily into commercial and corporate sectors, which comprise SAR 274.3B of the total portfolio. This credit expansion has driven Net Special Commission Income to SAR 13.1B. A key driver of this growth is the bank's aggressive pivot toward non-conventional banking products, which now represent SAR 230.2B of the net loan book, led by Tawarooq at SAR 161.8B. To support this asset expansion, customer deposits grew to SAR 331.7B, although the bank's loan-to-deposit ratio of 112.54% indicates a reliance on wholesale funding and debt issuances to bridge the gap. This asset-led growth is backed by a sustainable growth rate of 9.26%, calculated from an ROE of 13.79% and a retention rate of nearly 50%, demonstrating the bank's capacity to internally fund its balance sheet expansion.
Profitability Dynamics
Riyad Bank's profitability is characterized by steady operational efficiency and strong capital returns, highlighted by an ROE of 13.79% which comfortably exceeds its estimated cost of equity of 8.83%. This positive spread demonstrates substantial economic value creation. The bank's Net Interest Margin stands at 2.52%, reflecting a disciplined pricing strategy on its SAR 373.3B loan book against rising funding costs, as special commission expenses rose to SAR 14.01B. Operational efficiency remains a core strength, with a cost-to-income ratio of 37.03% driven by disciplined administrative spending, which fell to SAR 1.47B in FY 2025 from SAR 1.59B in FY 2024. This positive operational leverage, combined with a healthy ROA of 2.00%, ensures that the bank translates its massive asset base into sustainable bottom-line returns.
Risk & Capital Structure
Risk Factors
Riyad Bank maintains a highly conservative risk profile, anchored by exceptional asset quality and robust capital buffers. The bank's non-performing loan ratio is exceptionally low at 0.79%, supported by an NPL coverage ratio of 150.07% and an ECL coverage of 0.68% on total loans. Capital adequacy remains a key pillar of strength, with a Total Capital Adequacy Ratio of 18.35% and a CET1 ratio of 13.56%, both comfortably exceeding regulatory minimums. This capital position was actively managed in FY 2025 through the redemption of USD 1.5B in Tier 2 Sukuk, offset by the issuance of USD 1.25B in new Tier 2 trust certificates and a SAR 2B Additional Tier 1 Sukuk. On the funding side, the bank's high loan-to-deposit ratio of 112.54% is mitigated by a stable deposit base where time deposits grew to SAR 173.8B, providing funding stability despite a high-interest-rate environment. Additionally, a prior-period restatement correcting the valuation of the bank's equity interest in SIMAH by SAR 451M reflects a commitment to rigorous financial reporting.
Governance Disclosures
We track 11 key governance and oversight matters for this company in our database.
Related-Party Transactions with Associates
The bank transacts with its associate companies, which include Ajil Financial Services Company (48.46% ownership) and Liva Insurance Company (19.9% ownership). As of December 31, 2025, loans and advances to associates were SAR 158.57 million, customer deposits were SAR 70.49 million, and irrevocable commitments and contingencies were SAR 258.96 million. Net fees from banking services with associates generated SAR 73.12 million in 2025.
Related-Party Transactions and Remuneration with Board of Directors and Senior Executives
The bank discloses transactions with its Board of Directors and Senior Executives. As of December 31, 2025, loans and advances to these individuals totaled SAR 750.80 million, and customer deposits from them were SAR 380.67 million. Irrevocable commitments and contingencies stood at SAR 2.22 billion. For the year 2025, executive remuneration and bonuses amounted to SAR 36.57 million, and directors' and committees' remuneration and expenses were SAR 327 thousand.
Research Report
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