Bank Performance and Risks in Saudi Awwal Bank (SAB)

Abstract

This study compares the performance and risk management techniques of four major Saudi banks: Saudi Awwal Bank (SAB), Al Rajhi Bank, Al Ahli Bank, and Banque Saudi Fransi. The research evaluates each bank's strengths, limitations, and stability using financial indicators like ROA, NIM, Cost-to-Income Ratio, capital sufficiency, and non-performing loan ratios. SAB prioritizes stability with excellent capital sufficiency and low non-performing loans, but its profitability measures imply room for improvement. Al Rajhi Bank leads in profitability with better ROA and operational efficiency, while Al Ahli Bank manages interest income well with higher NIM but struggles with capital sufficiency. Despite a large capital buffer, Banque Saudi Fransi has reduced profitability and more credit risk, indicating a need for better risk management. The study found that risk management, operational efficiency, and strategic capital usage are essential for banking sector financial stability and profitability. The insights offered can help banks improve performance and meet Saudi Arabia's Vision 2030 economic goals. This analysis shows how banking methods affect financial outcomes and emphasizes the need to balance risk and profitability in a competitive market.