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1080

Governance: D

ANB

Arab National Bank

21.20 SAR / Share

As of: May 28, 2026

8.2x P/E Ratio Trailing 12 Months

0.9x P/B Ratio Price to Book Value

6.1% Dividend Yield Annual Dividend / Share

42.40B SAR Market Cap Total Valuation

1.06 Beta Systematic Risk Index

51.9% Net Margin Net Profit / Revenue

The Story

Arab National Bank (ANB) delivers a balanced financial profile characterized by steady loan book expansion, robust capital adequacy, and a disciplined approach to risk management amidst regional geopolitical shifts.

Source: Q1 2026 (2026-05-20)

Value Creation +1.5% 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

6.1%

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

+3.1%

Payout Ratio Percent of net profits distributed as dividends

50.3%

Net Margin Net profit margin generated from total operational revenue

51.9%

ROE Return on Equity

10.5%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

8.2x

P/B Ratio Market capitalization compared to corporate book value

0.9x

NIM Operating multiple reflecting core operational leverage

2.9%

Cost to Income Asset pricing multiple relative to total topline revenue

39.5%

Growth Story

ANB's growth story resembles a carefully charted voyage, prioritizing structural stability over aggressive expansion. The bank's net special commission income reached SAR 8.3B over the trailing twelve months, supported by a net loan book of SAR 198.6B. This loan portfolio is heavily anchored in corporate banking, which accounts for SAR 146.7B of net loans, while retail banking contributes SAR 51.9B. Shariah-compliant financing remains a key growth driver, expanding to SAR 171.6B. Despite a physical footprint consolidation—reducing branches to 117 and remittance centers to 39—ANB maintains a sustainable growth rate of 3.13%, supported by an ROE of 10.50% and a retention rate that balances capital preservation with a 50.27% dividend payout ratio.

Profitability Dynamics

The bank's profitability story is driven by a finely tuned engine of cost efficiency and steady margins. ANB achieved a net interest margin of 2.90%, reflecting disciplined asset pricing in a volatile rate environment. Operational efficiency is highlighted by a cost-to-income ratio of 39.51%, demonstrating strong cost control even as the bank restructures its operations and divests non-core assets like its heavy equipment leasing subsidiary. With an ROE of 10.50% comfortably exceeding its cost of equity of 8.97%, ANB demonstrates positive economic value creation. This profitability is further supported by a return on assets of 1.82%, indicating solid asset productivity and positive operational leverage across its core corporate and retail segments.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.06

Cost of Equity Minimum required rate of return demanded by shareholders

9.0%

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

95.5%

CASA Ratio Demand deposit balances as a percentage of total reserves

47.9%

ECL Coverage Credit loss provisioning coverage relative to gross lending assets

1.7%

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

ANB's risk profile stands as a reinforced harbor wall, designed to withstand external economic and geopolitical turbulence. The bank maintains exceptional asset quality, evidenced by a low non-performing loan ratio of 0.94% and a robust NPL coverage ratio of 174.09%, backed by SAR 3.3B in ECL allowances. Capital adequacy is a major strength, with a total Capital Adequacy Ratio of 20.04% and a CET1 ratio of 16.51%, both comfortably exceeding regulatory minimums. Funding remains stable with customer deposits of SAR 208.0B, yielding a loan-to-deposit ratio of 95.49%. To further fortify its capital structure, ANB successfully issued SAR 4.96B in Tier I capital Sukuk and USD 750M in sustainable Tier I Sukuk, offsetting the redemption of its USD 750M Tier II Sukuk. While geopolitical volatility in the region presents ongoing macro risks, the bank's proactive stress-testing and granular credit reviews mitigate potential downside.

Governance Disclosures

Rating: D

We track 12 key governance and oversight matters for this company in our database.

Significance: 4/10 Tunneling

Loans and Advances to Associates

The Group has outstanding loans and advances to its associates amounting to SAR 2,242,839 thousand as of March 31, 2026, compared to SAR 2,220,941 thousand as of March 31, 2025.

Mitigating Factors: Related party transactions are governed by limits set by the Banking Control Law and regulations issued by SAMA.

Significance: 5/10 Asset Risk

Commitments and Contingencies with Non-Saudi Major Shareholder

The Group has outstanding commitments and contingencies with its Non-Saudi Major Shareholder and their Affiliates amounting to SAR 2,687,927 thousand as of March 31, 2026, compared to SAR 1,324,393 thousand as of March 31, 2025.

Mitigating Factors: Related party transactions are governed by limits set by the Banking Control Law and regulations issued by SAMA.

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In-Depth Analysis