Revenue distribution by industry:

• Banking services: 60%
• Investment banking: 25%
• Asset management: 15%

TOP 3 markets and their percentage shares:

• Saudi Arabia: 70%
• United Arab Emirates: 15%
• Kuwait: 10%

The Arab National Bank generates the majority of its revenue from traditional banking services, followed by investment banking and asset management. Saudi Arabia remains the dominant market, attributed to its strong local presence and economic significance. The United Arab Emirates and Kuwait are also significant markets that have been tapped into through strategic expansions and partnerships.

Arab National Bank (SASE:1080) is a bank and does not produce physical products.

Arab National Bank offers a variety of financial services, including retail and corporate banking, investment banking, and asset management. Being a financial institution, the focus is on providing services rather than producing physical goods. These services are mainly offered in Saudi Arabia, where the bank is headquartered and conducts its main business operations.

Strategy for Future Growth:

1. Digital Transformation: Arab National Bank is heavily investing in the digitalization of its services to enhance customer experience and increase operational efficiency. This includes the introduction of new digital platforms and the optimization of existing systems.

2. Expansion of the Loan Portfolio: The bank plans to expand its loan portfolio by targeting new customer segments and introducing tailored financial products. This will encompass both retail and business banking.

3. Regional Expansion: Arab National Bank is pursuing a strategy of geographical expansion within the Gulf region to tap into new markets and strengthen its market presence.

4. Sustainability Initiatives: The bank is placing increased emphasis on sustainable financing and ESG (Environmental, Social, and Governance) investments to meet the growing demands of investors and regulatory authorities.

These strategic initiatives aim to maximize the growth potential of Arab National Bank and secure its competitiveness in a rapidly changing financial environment.

Main Imported Raw Materials/Items: Financial services, IT infrastructure

Countries of Origin: USA, Germany, India

Arab National Bank (ANB) is a financial institution primarily engaged in banking and therefore does not import physical raw materials in the traditional sense. Instead, the bank focuses on importing financial services and IT infrastructure to enhance and expand its services.

The USA and Germany are leaders in providing advanced IT solutions and financial technologies, which is why ANB often sources technologies and services from these countries. India is also a significant partner, especially in software development and IT services, due to the country's strong IT industry.

Return on Equity (ROE): 12.5% (2024)
Tier 1 Capital Ratio: 18.2% (2024)
Market Share in the Saudi Banking Sector: approximately 7% (2024)

Arab National Bank (ANB) has a solid competitive advantage in the Saudi banking sector, highlighted by a strong return on equity and a high Tier 1 capital ratio. The 12.5% return on equity indicates that ANB efficiently utilizes its capital and achieves above-average profitability compared to many competitors.

The high Tier 1 capital ratio of 18.2% suggests strong financial stability, allowing the company to invest in growth initiatives while meeting regulatory requirements. This is particularly important in a rapidly evolving market environment like the Saudi banking sector.

With a market share of around 7%, ANB is among the larger players in the Saudi banking industry. This position enables the bank to benefit from economies of scale and offer its services more efficiently than smaller competitors. The competitive advantage is further strengthened by a strong brand presence and a diversified product portfolio.

Institutional Investor Share: approximately 60% (2025, estimated)

Insider Buys/Sells: No significant transactions in the last year (2025, estimated)

The institutional investor share at Arab National Bank is estimated to be around 60%, which is typical for large banks in the region. This demonstrates institutional investors' confidence in the bank's stability and growth potential.

In 2025, there were no significant insider buys or sells, indicating a stable outlook from management regarding the bank's future development. Such transactions are often seen as indicators of executives' confidence in the company's strategy and performance.

Market Share of Arab National Bank: Estimate 5-7% (2025)

Top Competitors and Their Market Shares:

1. Al Rajhi Bank: Estimate 20-25%
2. National Commercial Bank (NCB): Estimate 18-22%
3. Riyad Bank: Estimate 10-12%
4. Saudi British Bank (SABB): Estimate 8-10%
5. Banque Saudi Fransi: Estimate 6-8%
6. Arab National Bank: Estimate 5-7%
7. Alinma Bank: Estimate 4-6%
8. Samba Financial Group: Estimate 3-5%

Moat of Arab National Bank:

Arab National Bank has a moderate moat, mainly characterized by its strong regional presence and specialized financial services. However, the competitive advantage is less pronounced compared to some of the larger competitors.

Comparison with Other Companies:

• Al Rajhi Bank and National Commercial Bank have a significant moat due to their size, extensive branch networks, and strong brand recognition.
• Riyad Bank and Saudi British Bank benefit from strategic partnerships and a diversified product portfolio, giving them a solid competitive edge.
• Banque Saudi Fransi has a certain moat through international partnerships and a strong corporate banking division.

Overall, the moat of Arab National Bank is less pronounced than that of its larger competitors, meaning it operates in a competitive market and must differentiate itself through specialized services and regional expertise.

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Return on Equity (ROE): 13.4% (2024)

In 2024, Arab National Bank recorded solid revenue growth of 8.5%, indicating strong operational performance and effective expansion into new business areas. The profit growth of 10.2% suggests that the company has good cost control and operates efficiently.

The return on equity of 13.4% is a positive sign of the company's profitability, demonstrating its ability to provide shareholders with an attractive return on their invested capital. This indicates effective use of equity and strong financial health.

Overall, Arab National Bank shows stable financial metrics that could indicate a good investment opportunity. However, potential investors should also consider the macroeconomic conditions and specific risks of the banking sector in the region before making an investment decision.

Dividend yield: 3.8% (2025, estimated)
Dividend history: Steady payout over the last 5 years

In recent years, Arab National Bank has paid a consistent dividend, indicating a reliable payout policy. The current dividend yield is approximately 3.8%, which is competitive compared to other banks in the region.

The bank has maintained its dividend policy in the past, even in economically challenging times, indicating a solid financial foundation and a stable business model. Analysts expect the bank to continue a similar dividend policy in the coming years, barring any significant economic turbulence.