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1020

Governance: C

BJAZ

Bank Aljazira

11.40 SAR / Share

As of: May 28, 2026

9.4x P/E Ratio Trailing 12 Months

0.6x P/B Ratio Price to Book Value

4.4% Dividend Yield Annual Dividend / Share

14.55B SAR Market Cap Total Valuation

1.13 Beta Systematic Risk Index

34.2% Net Margin Net Profit / Revenue

The Story

Bank AlJazira is navigating a transition phase, balancing loan book expansion and capital restructuring against moderate profitability and elevated cost structures.

Source: Q1 2026 (2026-04-29)

Value Creation -2.5% Excess Return on Capital (Spread between ROIC/ROE and Cost of Capital)

Cash Flow Payback — Estimated years of operating cash flows required to cover Enterprise Value

Performance & Distributions

Dividend Yield Trailing annual dividends paid relative to share price

4.4%

Sustainable Growth Rate Rate at which company can grow internally using reinvested profits

+25.0%

Payout Ratio Percent of net profits distributed as dividends

41.2%

Net Margin Net profit margin generated from total operational revenue

34.2%

ROE Return on Equity

6.7%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

9.4x

P/B Ratio Market capitalization compared to corporate book value

0.6x

NIM Operating multiple reflecting core operational leverage

1.8%

Cost to Income Asset pricing multiple relative to total topline revenue

59.6%

Growth Story

Sowing Seeds in Shifting Soil: Bank AlJazira's net financing book expanded to SAR 114.3B as of March 31, 2026, driven by both commercial and consumer segments. This expansion supported a TTM Net Interest Income of SAR 3.1B. The bank's sustainable growth rate is calculated at 25.00%, supported by a retention rate of 58.82% and its capital optimization strategies, including the issuance of a SAR 1.46B additional Tier 1 sukuk in the first quarter of 2026.

Profitability Dynamics

Tuning a High-Resistance Engine: Bank AlJazira's profitability profile reflects structural headwinds, with a Net Interest Margin of 1.77% and a high Cost-to-Income ratio of 59.61%, indicating room for operational efficiency gains. The bank's Return on Equity stands at 6.74%, which remains below its estimated Cost of Equity of 9.26%, highlighting the challenge of generating economic value above its cost of capital. This is further reflected in a Return on Assets of 0.90%, as the bank works to improve operational leverage across its retail and corporate segments.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.13

Cost of Equity Minimum required rate of return demanded by shareholders

9.3%

Loan-to-Deposit Ratio (LDR) Ratio of customer loans relative to deposited reserves

92.2%

CASA Ratio Demand deposit balances as a percentage of total reserves

26.5%

ECL Coverage Credit loss provisioning coverage relative to gross lending assets

2.0%

Capital Adequacy Ratio (CAR) Risk-weighted asset coverage capital backing ratio

—

Non-Performing Loans (NPL) Ratio Percent of gross lending assets classified as non-performing

—

Risk Factors

Navigating Volatile Currents with a Heavy Anchor: Bank AlJazira maintains a stable risk profile with an NPL ratio of 1.32% and an NPL coverage ratio of 88.06%, backed by an ECL coverage of 2.03% and TTM provisions of SAR 325M. Funding stability is anchored by customer deposits of SAR 124.0B, yielding a comfortable Loan-to-Deposit Ratio of 92.18%. Capital adequacy remains robust, with a Total Capital Adequacy Ratio of 19.64% and a CET1 ratio of 11.31%, both well above regulatory minimums. However, the bank faces outstanding Zakat disputes of SAR 77.57M for 2019 and SAR 65.5M for 2021, alongside geopolitical uncertainties that have prompted a more cautious macroeconomic weighting in its expected credit loss models.

Governance Disclosures

Rating: C

We track 13 key governance and oversight matters for this company in our database.

Significance: 4/10 Info Asymmetry

Transactions and Insurance Agreements with Associate

The Group holds a 33.08% stake in AlJazira Takaful Ta'awuni Company and conducts insurance transactions with it. For the period ended March 31, 2026, the Group paid insurance premiums of SAR 20.52 million and received claims of SAR 6.26 million. Outstanding customer deposits from the associate stood at SAR 273.62 million, and the associate held SAR 194.00 million in Sukuk liabilities.

Mitigating Factors: The related party transactions are governed by the limits set by the Banking Control Law and regulations issued by Saudi Central Bank (SAMA).

Significance: 6/10 Info Asymmetry

Financing and Transactions with Directors, Key Management, and Major Shareholders

The Group has outstanding financing of SAR 2.26 billion to directors, key management personnel, other major shareholders, and their affiliates as of March 31, 2026. Additionally, the Group received customer deposits of SAR 161.80 million and had commitments of SAR 2.75 million with these parties. Income from these investments and financing was SAR 35.46 million for the period.

Mitigating Factors: The related party transactions are governed by the limits set by the Banking Control Law and regulations issued by Saudi Central Bank (SAMA).

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In-Depth Analysis