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1180

Governance: A

SNB

The Saudi National Bank

39.40 SAR / Share

As of: May 28, 2026

9.3x P/E Ratio Trailing 12 Months

1.1x P/B Ratio Price to Book Value

2.5% Dividend Yield Annual Dividend / Share

236.40B SAR Market Cap Total Valuation

1.17 Beta Systematic Risk Index

64.8% Net Margin Net Profit / Revenue

The Story

A massive financial anchor for Saudi Arabia's economic landscape, combining a colossal SAR 732.7B loan book with robust capital buffers and a return on equity that comfortably exceeds its cost of equity.

Source: Q1 2026 (2026-05-05)

Value Creation +2.4% 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

2.5%

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

+12.2%

Payout Ratio Percent of net profits distributed as dividends

23.6%

Net Margin Net profit margin generated from total operational revenue

64.8%

ROE Return on Equity

11.8%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

9.3x

P/B Ratio Market capitalization compared to corporate book value

1.1x

NIM Operating multiple reflecting core operational leverage

2.4%

Cost to Income Asset pricing multiple relative to total topline revenue

26.4%

Growth Story

SNB's growth engine is powered by its massive net loan book of SAR 732.7B, which drives a robust Net Interest Income of SAR 29.4B TTM. This expansion is supported by a sustainable growth rate of 12.20%, driven by a strong return on equity of 11.85% and a disciplined retention strategy, as reflected in its 23.59% dividend payout ratio. While the bank continues to expand its domestic wholesale and retail financing footprints, it also manages international operations, including its Turkish subsidiary TFKB, which operates under hyperinflationary accounting adjustments. This diversified footprint ensures that SNB can capture high-yield credit demand while maintaining a steady, long-term growth trajectory aligned with the Kingdom's economic transformation.

Profitability Dynamics

SNB demonstrates exceptional operational efficiency, characterized by a cost-to-income ratio of 26.44%. This lean cost structure allows the bank to translate its net interest margin of 2.39% into a substantial TTM net income of SAR 25.4B. Profitability is highly sustainable, with an ROE of 11.85% comfortably outpacing its cost of equity of 9.45%, proving that the bank is actively creating economic value for its shareholders. This spread over the cost of capital, combined with a strong return on assets of 2.07%, highlights the bank's powerful operational leverage and its ability to extract high returns from its massive SAR 1228.5B asset base without compromising on efficiency.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.17

Cost of Equity Minimum required rate of return demanded by shareholders

9.5%

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

1.0%

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

SNB maintains a conservative risk profile, highlighted by a non-performing loan ratio of just 0.67% and a robust NPL coverage ratio of 136.74%. The bank's credit quality is further reinforced by an expected credit loss coverage of 1.01% and TTM provisions of SAR 425M. Capital adequacy is a major strength, with a Total Capital Adequacy Ratio of 21.90% and a CET1 ratio of 17.90%, both standing comfortably above regulatory minimums. This capital fortress was further bolstered in early fiscal 2026 by the issuance of SAR 3.75B in USD-denominated Tier 1 Notes and SAR 1.75B in SAR-denominated Tier 1 Sukuk. These buffers are crucial as the bank navigates heightened geopolitical uncertainties in the Middle East, which prompted management to proactively shift macroeconomic scenario weightings toward a more cautious downturn outlook, though the immediate financial impact remains immaterial.

Governance Disclosures

Rating: A

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

Significance: 4/10 Tunneling

Compensation of Directors and Key Management Personnel

During the period ended 31 March 2026, the total compensation paid to directors and key management personnel included short-term employee benefits of SAR 53,330 thousand, directors' remuneration of SAR 1,211 thousand, post-employment benefits of SAR 24 thousand, other long-term benefits of SAR 121,997 thousand, and share-based payments of SAR 26,599 thousand.

Mitigating Factors: These transactions are approved by the board of directors and management as part of the ordinary course of activities.

Significance: 5/10 Tunneling

Outstanding Financing and Balances with Directors and Key Management

The Group disclosed outstanding financing and advances to directors, key management personnel, and other companies of SAR 8,645,611 thousand as of 31 March 2026. Customers' deposits from these parties stood at SAR 4,934,418 thousand, and commitments and contingencies were SAR 394,132 thousand. Special commission income from these transactions was SAR 215,346 thousand and special commission expense was SAR 80,308 thousand.

Mitigating Factors: The related party transactions are governed by limits set by the Banking Control Law and regulations issued by SAMA and approved by the board of directors and management.

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In-Depth Analysis