Overview of Banks in Saudi Arabia
As per Moody’s Investors Services, the banking system in Saudi Arabia is now stable. Moody has changed their rating from negative to stable due to the following reasons –
- They have noticed high-risk absorption buffers for the banks in Saudi Arabia.
- They have also seen how the funding pressures on the banks have been eased out.
- Finally, the credit profiles of the banking system have been improving, and Moody’s Investors Services is expecting the credit profiles to evolve to the next level within 12 to 18 months.
Plus, the banking system in Saudi Arabia has also been getting huge support from the Government, which will allow the Saudi economy to recover at the highest pace.
Table of contents
Structure of Banks in Saudi Arabia
There are a total of 24 banks in Saudi Arabia. Out of these 24, 12 are local banks, and the rest are the branches of foreign banks.
The Saudi Arabian Monetary Authority (SAMA) controls and regulates the whole banking system in Saudi Arabia. It is the central bank of Saudi. Therefore, it ensures the smoothness of operations and the stability of the exchange rate. At the same, it also issues Saudi Rial, which is the currency of Saudi Arabia.
Even if there are two types of banks, we can further sub-categorize them into another four – commercial banksCommercial BanksA commercial bank refers to a financial institution that provides various financial solutions to the individual customers or small business clients. It facilitates bank deposits, locker service, loans, checking accounts, and different financial products like savings accounts, bank overdrafts, and certificates of deposits.read more, real estate banks, industrial banks, and agricultural banks.
List of Top 10 Banks in Saudi Arabia
- National Commercial Bank
- Al Rajhi Bank
- Samba Financial Group
- Riyad Bank
- Banque Saudi Fransi
- Saudi British Bank
- Arab National Bank
- Alinma Bank
- Alawwal Bank
- Saudi Investment Bank
Let’s look at each one of them in detail in terms of total assets acquired as per relbanks.com–
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Source: Banks in Saudi Arabia (wallstreetmojo.com)
#1. National Commercial Bank
This is the largest financial institution in Saudi Arabia. In terms of total assets required, this is the biggest. In the year March 2017, it was found that the total assets acquired were SAR 448.717 billion. It was founded in 1953 and converted into a joint-stock company in the year 1997. Around 8035 employees work here. They serve around 5 million customers, and the customers’ deposits were SAR 313.646 billion at the end of March 2017.
#2. Al Rajhi Bank
This is one of the largest Islamic banks in Saudi Arabia. In terms of total assets, it is the second largest. At the end of March 2017, the bank had acquired around SAR 337.230 billion of total assets. Around 14,000 employees work here. Its head-quarter is situated in Riyadh. It has branches worldwide, in Malaysia, Kuwait, Jordan, etc. At the end of March 2017, the customers’ deposits were SAR 271.290 billion.
#3. Samba Financial Group
It was established in the year 1980. After the merger with United Saudi Bank in 1999, it has become one of the top banks in Saudi Arabia. At the end of March 2017, it had acquired around SAR 231.9 billion of total assets. This group has employed around 3500 people. Its head-quarter is located in Riyadh. The customer deposits at the end of March 2017 were SAR 170.4 billion.
#4. Riyad Bank
It was founded in 1957, and it is the oldest publicly held bank. In terms of total assets acquired, this is the fourth top bank. At the end of March 2017, the total assets acquired by the bank were SAR 216.323 billion. Around 6300 people work here. It has more than 340 branches and 2700 ATMs. The customer deposits of this bank at the end of March 2017 were SAR 154.187 billion. The head-quarter of this bank is located in Riyadh.
#5. Banque Saudi Fransi
It was established in the year 1977. Around 3000 employees are employed here. The head-quarter of Banque Saudi Fransi is located in Riyadh. This is the 5th largest bank in terms of total assets acquired. The total assets acquired by Banque Saudi Francis at the end of March 2017 were SAR 204.4 billion. At the same time, the customers’ deposits were SAR 158.5 billion. It provides retail, investment, and corporate banking.
#6. Saudi British Bank (SABB)
This is a joint-stock company and part of HSBC Holdings PLC. This bank stands at number six in terms of the total assets acquired. The total assets acquired by the Saudi British Bank at the end of March 2017 were SAR 182.5 billion. During the same time, the customers’ deposits were SAR 138.3 billion. The head-quarter of this bank is also situated in Riyadh. Around 3200 employees work here.
#7. Arab National Bank
It was established in the year 1979, around 38 years ago. Its head-quarter is also located in Riyadh. This is the 7th largest bank in Saudi Arabia in terms of the total assets acquired. The total assets acquired by the Arab National Bank at the end of March 2017 were SAR 168.427 billion. During the same time, the customers’ deposits were SAR 135.02 billion. It provides mainly retail and corporate banking. Around 4400 employees are employed here.
#8. Alinma Bank
Alinma bank is one of the top banks in Saudi Arabia. As it is an Islamic bank, it is fully Sharia-compliant, and it also offers the whole gamut of retail banking services. In terms of total assets acquired, this bank stands at 8th. The total assets acquired by Alinma bank at the end of March 2017 were SAR 105.256 billion. It has around 80 branches all across Saudi Arabia.
#9. Alawwal Bank
This bank is quite old; it was established in 1926, around 91 years ago. During that time, it was the only bank that existed in Alawwal bank and it acted as a central bank as well. In terms of total assets acquired, it stands at 9th. The total assets acquired by Alawwal bank were SAR 100.369 billion. During the same time, the customers’ deposits were SAR 80.297 billion. Its head-quarter is also located in Riyadh.
#10. Saudi Investment Bank
This bank was established in 1976, around 41 years ago. About 1600 employees work here. This bank is the 10th largest bank in Saudi Arabia in terms of total assets acquired. The total assets acquired by the Saudi Investment Bank were SAR 97.546 billion. The customers’ deposits at the same time were SAR 64.4 billion. It has around 50 branches all across Saudi Arabia, and it provides a whole gamut of wholesale and retail bankingRetail BankingRetail banking or personal banking refers to the financial services offered by the financial institutions exclusively to the individual clients. The consumer banking provides personal loan, savings account, debit cards, credit cards, locker, etc.read more products regarding investments.
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