Riyadh, Saudi Arabia – Arab National Bank’s net profit increased by 3.02% in 2025 to approximately SAR 5.12 billion. This compares with around SAR 4.97 billion in 2024, according to a statement published on Tadawul Saudi Arabia. The results reflect steady balance sheet expansion and broader income diversification. However, cost and provisioning pressures edged higher during the year.

The lender said the year-on-year improvement was mainly driven by higher net special commission income, alongside gains in fees and commissions, dividend income, and trading-related activities. Net foreign exchange gains and results from financial instruments measured at fair value through income also contributed positively. In addition, lower impairment provisions for other owned properties, combined with reduced general and administrative expenses and building-related costs, supported profitability.

However, these gains were partially offset by higher employee-related expenses, including salaries, as well as increased expected credit loss provisions and other provisions. Depreciation and amortization costs also rose, while net gains from the sale of non-trading investments declined. The bank further reported lower net income from other operations, which weighed on overall performance.

Balance Sheet Growth Supports Income Expansion

Arab National Bank explained that total special commission income rose by 5.55% during the year. This increase was underpinned by a 15.22% expansion in the net loans and advances portfolio and a 13.34% rise in net investments. The figures point to sustained credit demand and continued deployment of funds across lending and investment activities.

Total assets grew by 13% to reach SAR 281.38 billion. Net loans increased by 15% to more than SAR 195 billion. At the same time, customer deposits also expanded by around 15% to exceed SAR 209 billion. Together, these trends highlight the bank’s ability to grow its balance sheet while maintaining funding momentum.

On a quarterly basis, profitability was less even. Net profit declined by approximately 9% in the fourth quarter of the year, falling to SAR 1.146 billion. The bank did not provide forward-looking guidance. Nevertheless, the quarterly dip underscores the impact of higher costs and provisioning toward year-end.

Overall, the 2025 results show Arab National Bank balancing asset growth and income diversification against rising operating and credit-related expenses, a dynamic that remains central to investor assessment of Saudi banking performance.

THE SAUDI STANDARD’S VIEW: Arab National Bank’s Steady Profit Growth Reflects Banking Sector Resilience

Arab National Bank’s 3.02% rise in net profit in 2025 underscores the Saudi banking sector’s ability to sustain growth amid tighter cost and provisioning dynamics. The results, disclosed via Tadawul, align with the broader trajectory of Saudi financial reform. Balance sheet expansion, income diversification, and prudent risk management reinforce institutional strength under Vision 2030.

• Income diversification signals maturity

The increase in net profit was anchored by higher special commission income, alongside gains in fees, trading, and foreign exchange activities. This reflects the sector’s shift toward diversified revenue streams rather than reliance on single income lines. As a result, it strengthens earnings stability.

• Balance sheet expansion supports economic activity

A double-digit rise in loans, investments, and total assets highlights Arab National Bank’s role in supporting credit demand and capital deployment across the economy. Such growth reinforces banking institutions as core enablers of private-sector expansion and national development priorities.

• Cost pressures reflect scale and prudence, not weakness

Higher employee expenses and credit loss provisions demonstrate a banking model investing in human capital while maintaining conservative provisioning standards. This approach supports long-term resilience rather than short-term profit maximization.

• Funding momentum confirms depositor confidence

The parallel growth in customer deposits alongside loans illustrates strong market trust and effective liquidity management. These are critical foundations for sustained financial stability in Saudi Arabia.

• Quarterly volatility remains manageable

While fourth-quarter profit softened, the full-year outcome confirms that short-term cost and provisioning cycles have not undermined the bank’s structural performance, a pattern consistent with a maturing and well-regulated sector.

Looking ahead, Arab National Bank’s 2025 performance reinforces the strength and adaptability of Saudi Arabia’s banking system. As Vision 2030 advances, such results validate the Kingdom’s financial reforms. They anchor confidence, support growth, and position Saudi banks as resilient institutions capable of navigating global and domestic economic cycles with discipline and scale.

Related Reading