Arab National Bank SJSC

Arab National Bank maintains a conservative capital structure characterized by low leverage. The debt-to-equity ratio stands at 0.03, indicating minimal reliance on long-term debt relative to shareholder equity. Total equity is reported at 49.48 billion SAR, supporting total assets of 281.38 billion SAR. The balance sheet shows total liabilities of 231.90 billion SAR, consistent with standard banking deposit and liability structures. Despite the low debt ratio, the risk assessment flags medium liquidity risk, noting that net cash is negative after subtracting total debt. This suggests that while long-term solvency is strong, short-term liquidity management requires active monitoring of cash flows against immediate obligations.

Profitability metrics indicate solid returns on capital. Return on equity (ROE) is 10.45%, while return on assets (ROA) is 1.84%. These figures reflect the bank's ability to generate net income of 5.12 billion SAR from its asset base. The net income represents a significant portion of the total revenue of 8.10 billion SAR, implying a healthy net profit margin. Without specific cohort median data provided in the input, these returns are evaluated on their absolute strength, showing efficient capital utilization typical of established commercial banks in stable markets.

Revenue concentration and segment details are not explicitly broken down in the available data, limiting specific analysis of product or geographic mix. However, the classification as a commercial bank suggests revenue is primarily derived from lending activities, deposit-taking, and related financial services within the Saudi market. The absence of detailed segment data prevents a granular assessment of revenue drivers, but the overall revenue figure of 8.10 billion SAR provides a baseline for scale.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The current financial snapshot provides a single-period view of revenue and net income. Without multi-year or quarterly trend data, it is not possible to assess year-over-year growth rates or seasonal patterns. The current revenue of 8.10 billion SAR serves as the baseline for future performance evaluation.

Risk factors include medium liquidity risk and low dilution risk. The key flag regarding negative net cash after debt subtraction highlights a potential liquidity constraint that warrants attention. Dilution risk is assessed as low, supported by the fact that basic and diluted shares outstanding are identical at 1.985 billion shares, indicating no significant convertible securities or options currently impacting share count. The stability of the share count suggests a controlled capital structure with minimal near-term dilution pressure.

Recent events and market sentiment are reflected in analyst estimates. The mean price target is 24.82 SAR, with a median of 24.40 SAR, ranging from a low of 21.00 SAR to a high of 28.50 SAR. The mean recommendation is 2.67, indicating a moderate buy stance, with five buy ratings and two hold ratings. There are no strong buy ratings. Competitor context lists JPMorgan Chase, Bank of America, and Citigroup, though no specific comparative metrics are provided for these entities in the input data.

Net income surged 23.8% CAGR over four years, reaching SAR 5.1 billion in FY2026, demonstrating robust profitability growth.

Total assets grew at a 10.0% CAGR to SAR 281.4 billion, reflecting consistent balance sheet expansion and market presence.

Analysts project 17.1% upside to a mean price target of SAR 24.82, suggesting undervaluation relative to current market price.

Long-term debt dropped sharply to SAR 1.5 billion in FY2026, reducing leverage risks and strengthening the financial position.

Revenue growth slowed to just 2.2% year-over-year in FY2026, signaling potential stagnation in top-line expansion momentum.

Cash conversion ratio of 0.33 is well below the 1.15 industry median, indicating weaker cash generation relative to peers.

The bank faces medium liquidity risk, which could constrain operational flexibility or increase funding costs during market stress.

Return on assets of 1.84% remains modest compared to the 10.45% ROE, suggesting reliance on leverage for equity returns.

Free cash flow growth stalled at 0.2% year-over-year in FY2026, limiting capacity for dividends or reinvestment.

Revenue SAR 2.11B, +7,3% YoY; Net income +4,3% YoY.

• ▍Revenue SAR 2.11B, +7,3% YoY
• ▍Net income +4,3% YoY
• ▍Free cash flow +365,5% YoY
• ▍Net margin 64.3%

Revenue SAR 1.95B, −1,8% YoY; Net income −8,7% YoY.

• ▍Revenue SAR 1.95B, −1,8% YoY
• ▍Net income −8,7% YoY
• ▍Free cash flow −5,5% YoY
• ▍Net margin 58.9%

Revenue SAR 2.01B, −3,2% YoY; Net income +6,9% YoY.

• ▍Revenue SAR 2.01B, −3,2% YoY
• ▍Net income +6,9% YoY
• ▍Free cash flow +188,7% YoY
• ▍Net margin 66.2%

Revenue SAR 2.17B, +11,9% YoY; Net income +8,6% YoY.

• ▍Revenue SAR 2.17B, +11,9% YoY
• ▍Net income +8,6% YoY
• ▍Free cash flow +7,3% YoY
• ▍Net margin 61.5%

Revenue SAR 1.97B; Net margin 66.2%.

• ▍Revenue SAR 1.97B
• ▍Net margin 66.2%

Revenue SAR 1.98B; Net margin 63.4%.

• ▍Revenue SAR 1.98B
• ▍Net margin 63.4%

Revenue SAR 2.07B; Net margin 59.9%.

• ▍Revenue SAR 2.07B
• ▍Net margin 59.9%

Revenue SAR 1.94B; Net margin 63.4%.

• ▍Revenue SAR 1.94B
• ▍Net margin 63.4%

Revenue SAR 8.10B, +2,1% YoY; Net income +3,0% YoY.

• ▍Revenue SAR 8.10B, +2,1% YoY
• ▍Net income +3,0% YoY
• ▍Free cash flow +0,2% YoY
• ▍Net margin 63.2%

Revenue SAR 7.93B, +9,2% YoY; Net income +22,0% YoY.

• ▍Revenue SAR 7.93B, +9,2% YoY
• ▍Net income +22,0% YoY
• ▍Free cash flow +9,8% YoY
• ▍Net margin 62.6%

Revenue SAR 7.26B, +28,8% YoY; Net income +32,6% YoY.

• ▍Revenue SAR 7.26B, +28,8% YoY
• ▍Net income +32,6% YoY
• ▍Free cash flow +28,9% YoY
• ▍Net margin 56.1%

Revenue SAR 5.64B, +15,3% YoY; Net income +41,1% YoY.

• ▍Revenue SAR 5.64B, +15,3% YoY
• ▍Net income +41,1% YoY
• ▍Free cash flow +38,8% YoY
• ▍Net margin 54.5%