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1140

Governance: D

ALBILAD

Bank Albilad

24.38 SAR / Share

As of: May 28, 2026

11.9x P/E Ratio Trailing 12 Months

1.5x P/B Ratio Price to Book Value

1.8% Dividend Yield Annual Dividend / Share

36.57B SAR Market Cap Total Valuation

1.01 Beta Systematic Risk Index

49.3% Net Margin Net Profit / Revenue

The Story

Bank Albilad delivers robust Shariah-compliant financial performance, characterized by a solid net loan book of SAR 129.8B and a strong return on equity of 13.04% that comfortably exceeds its cost of equity.

Source: Q1 2026 (2026-04-30)

Value Creation +4.3% 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

1.8%

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

+6.1%

Payout Ratio Percent of net profits distributed as dividends

21.9%

Net Margin Net profit margin generated from total operational revenue

49.3%

ROE Return on Equity

13.0%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

11.9x

P/B Ratio Market capitalization compared to corporate book value

1.5x

NIM Operating multiple reflecting core operational leverage

2.7%

Cost to Income Asset pricing multiple relative to total topline revenue

45.0%

Growth Story

Bank Albilad's growth trajectory is anchored by its expanding financing activities, with net loans reaching SAR 129.8B. This expansion has fueled a robust Net Interest Income of SAR 4.8B on a trailing twelve-month basis. The bank's growth is supported by a sustainable growth rate of 6.11%, driven by a healthy return on equity of 13.04% and a retention rate of approximately 78.12%, reflecting a payout ratio of 21.88%. This high retention of earnings allows the bank to organically fund its balance sheet expansion. Furthermore, segment data reveals that the bank is successfully diversifying its operations, with retail banking and corporate banking serving as dual engines of growth, while treasury and investment banking segments provide complementary fee and commission income streams.

Profitability Dynamics

The profitability narrative of Bank Albilad is defined by disciplined cost management and strong spread preservation. The bank maintains a Net Interest Margin of 2.69%, reflecting its ability to price Islamic financing assets effectively in a volatile rate environment. Operational efficiency is highlighted by a cost-to-income ratio of 45.04%, demonstrating solid operational leverage as the bank expands its digital footprint and branch network. This efficiency translates into a strong return on equity of 13.04%, which significantly outperforms its estimated cost of equity of 8.74%, derived from a beta of 1.0114. This positive spread between return on equity and the cost of equity underscores the bank's capacity for sustainable economic value creation.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.01

Cost of Equity Minimum required rate of return demanded by shareholders

8.7%

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

—

CASA Ratio Demand deposit balances as a percentage of total reserves

—

ECL Coverage Credit loss provisioning coverage relative to gross lending assets

1.9%

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

Bank Albilad maintains a conservative risk profile, characterized by strong capital buffers and proactive provisioning. The bank's capital adequacy is exceptionally robust, with a Total Capital Adequacy Ratio of 20.66% and a CET1 ratio of 14.33%, both comfortably exceeding regulatory minimums. This capital base was further bolstered by the issuance of a USD 500M Additional Tier 1 Sukuk in January 2026, following a USD 650M AT1 issuance in May 2025. On the credit front, the bank reports an NPL ratio of 1.19% with a strong NPL coverage ratio of 141.74% and an ECL coverage of 1.90%. To mitigate emerging risks from a deteriorating geopolitical environment in early 2026, management proactively applied expert credit judgment to recognize overlays against its financing portfolio, ensuring the bank remains resilient against potential macroeconomic shocks.

Governance Disclosures

Rating: D

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

Significance: 4/10 Info Asymmetry

Transactions with Group-Managed Mutual Funds

The Group holds investments in its own managed mutual funds amounting to SAR 430,474 thousand as of March 31, 2026, compared to SAR 401,430 thousand as of March 31, 2025. Deposits from these funds were SAR 200 thousand as of March 31, 2026.

Mitigating Factors: Transactions are conducted in the ordinary course of activities and subject to regulatory limits.

Significance: 5/10 Info Asymmetry

Correction of Accounting Error for Tier 1 Sukuk Investments

The Bank corrected an accounting error by reclassifying Tier 1 Sukuk investments of SAR 3,544 million as of March 31, 2025, from amortized cost to fair value through other comprehensive income (FVOCI). The Bank noted that these are equity instruments from the issuer's perspective and did not meet the amortized cost criteria under IFRS 9 on initial recognition.

Mitigating Factors: The impact of the reclassification on the interim consolidated statement of financial position, statement of income, comprehensive income, and changes in equity for the comparative period was disclosed as immaterial.

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In-Depth Analysis