managing director and chief executive officer’s review

In 2024, alrajhi bank commenced the implementation of its “harmonize the group” strategy, bringing together an ecosystem of banking and financial solutions to service both retail and corporate customers, while elevating the benchmark for customer experience.

The year 2024 stands as a testament to alrajhi bank’s excellence across multiple domains, adding a distinguished chapter to our seven-decade legacy of success. As we witness the bank’s continued growth, we are filled with renewed pride in its pioneering spirit and its profound impact on our nation’s development. Our contributions to the Kingdom’s economic revitalisation continue to yield results, with each passing day revealing new achievements that affirm our direction and purpose. This sustained progress, visible in our nation's comprehensive development, reinforces our conviction to remain steadfast on our path to excellence.

The Saudi economy has demonstrated remarkable resilience and adaptability in the face of global economic uncertainties stemming from international tensions and volatility in energy and commodity markets. Our nation has successfully navigated external challenges, achieving robust growth across diverse sectors. The Kingdom’s bold steps towards economic diversification, coupled with energy transition initiatives and reduced oil dependency, has yielded impressive results. This transformation is particularly evident in the non-oil GDP growth, projected to reach 4-5% in coming years, driven by major projects and Saudi Vision 2030 targets.

The Saudi banking sector, a cornerstone of our national economy, has been instrumental in maintaining economic and financial stability, and enhancing and keeping pace with the strong GDP growth. Operating within comprehensive regulatory and supervisory frameworks aligned with international best practices, the sector ensures confidence and transparency, ensuring continuous alignment with national economic requirements and the Vision 2030 National Investment Strategy. In 2024, the banking sector delivered a robust performance, fuelled by major projects, with financing growth reaching 14.4%, and deposits rising by 8.9%. This steady deposit expansion enabled the sector to maintain healthy liquidity ratios, positioning it well to meet the anticipated increase in financing demand in 2025. As the world's largest Islamic bank and a key player in the Saudi banking landscape, alrajhi bank continues to be a driving force in the Kingdom’s financial and investment ecosystem.

During 2024, alrajhi bank, with steadfast support from its Board of Directors, achieved exceptional results across all KPIs in various business verticals, further solidifying its market leadership. Notable achievements include: 19% increase in net income after Zakat, 10% growth in customer deposits, 21% expansion in total assets, significant growth in digital transactions, 29.6% growth in SME portfolio, 31.8% growth in corporate financing, 13.8% increase in mortgage portfolio, maintaining the largest market share in mortgage at 41.1%, maintaining market leadership in retail financing at 41.2%, enhanced market share in demand deposits at 28.6%, and the 41% market share dominance in POS terminals. These achievements underscore alrajhi bank’s sustained leadership in retail banking while demonstrating remarkable growth in the corporate banking and the MSME sectors. The bank’s expansion in fee-based products and services has driven revenue and profit growth. As a result of outstanding performance throughout the year, alrajhi bank maintained the highest customer satisfaction Net Promoter Score (NPS) in the Kingdom.

In 2024, alrajhi bank commenced the implementation of its “harmonize the group” strategy, bringing together an ecosystem of banking and financial solutions to service both retail and corporate customers, while elevating the benchmark for customer experience. This strategy integrates all banking products, services, and solutions into a seamless digital financial ecosystem, enhanced by advanced data management and artificial intelligence technologies. By ensuring accessibility, speed, and flexibility for all customer segments, the Bank is unlocking new growth opportunities, driving cross-selling, boosting banking fee income, and enhancing operational efficiency—ultimately generating additional value and revenue. Simultaneously, leveraging the Kingdom's largest personal banking customer base, alrajhi bank is actively expanding its market share in the corporate banking sector through strategic collaboration between various business units and subsidiaries. Additionally, in alignment with the release of the second version of the Open Banking framework by the Saudi Central Bank (SAMA), alrajhi bank forged strategic partnerships with several fintech companies, established “neotek” for digital financial solutions, and acquired a 65% stake in “Drahim”, a fintech start-up specialising in financial management and automated investment. These initiatives are pivotal in advancing the financial ecosystem and promoting digital financial inclusion for retail and corporate customers, supporting the economic aspirations of Saudi Vision 2030. As a testament to these efforts, the Bank received prestigious global awards, including the Best Digital Bank award from MEED and the Data and AI Excellence Award from the Finnovex Summit.

Internationally, alrajhi bank Malaysia experienced a remarkable breakthrough in 2024, becoming the third-largest foreign Islamic bank in terms of assets, with a 77% surge in net profits, 8% growth in financing, and a 26% increase in Sukuk holdings. In Kuwait, despite economic headwinds stemming from the global slowdown and reduced oil production, alrajhi bank Kuwait achieved robust growth, reinforcing its financing and investment portfolio in collaboration with its Saudi counterpart. Meanwhile, alrajhi bank Jordan recorded an impressive 23% rise in net income compared to 2023, driven by strong returns, fee-based revenues, and effective operational costs management.

On the subsidiary front, alrajhi bank’s subsidiaries demonstrated strong performance indicators throughout 2024. Al Rajhi Capital retained its top position in terms of trading value on the Tadawul securities market and advanced to second place in assets under management (AUM), recording an impressive 62% growth and a 43% increase in total active clients. Emkan, the leading digital financial solutions provider, further strengthened its market position by expanding its footprint in consumer financing and in the SME sector. This was achieved through the introduction of innovative products such as POS financing, the “Buy Now, Pay Later” service, and SME credit cards, alongside enhancements to its technical infrastructure and operational efficiencies. Meanwhile, Neoleap, alrajhi bank’s fintech arm, sustained its strong performance and market share growth by launching a diverse array of cutting-edge solutions and services tailored for both retail and corporate customers. Among its key innovations was a digital wallet designed for the business sector, offering seamless services including financing, transfers, and card issuance. Ejada Systems, a regional leader in digital transformation, is preparing for its next phase of growth by planning a public offering of 20.25 million shares—representing 45% of its total equity—on the Saudi market, following the Capital Market Authority’s approval. The subscription value is expected to be announced during 2025. Overall, the expansion in cross-selling and development of value propositions for target sectors led to all subsidiaries achieving strong growth in market share and profits, as well as increasing income from subsidiaries as a percentage of total group income. The leading alrajhi bank branch network also contributed as an additional sales channel, providing a significant competitive advantage for all subsidiaries.

In alignment with Saudi Vision 2030, which envisions a future founded on economic, social, and environmental sustainability, alrajhi bank, as one of the Kingdom’s largest financial institutions and leading brands, with an extensive base of clients, shareholders, and employees, acknowledges its responsibility in driving sustainable progress. We are committed to upholding the highest Environmental, Social, and Governance (ESG) standards, fostering ethical business practices, and implementing globally recognised best practices in risk management and compliance. In this context, our efforts centre on embedding sustainability principles across all banking operations, ensuring that our objectives and strategies—such as "Bank of the Future" and "harmonize the group"—are closely aligned with Saudi Vision 2030, the Saudi Green Initiative (SGI), the Saudi Stock Exchange ESG Guidelines as well as UN SDGs. These initiatives, along with other key sustainability-driven efforts, are detailed in this report.

alrajhi bank embraces a comprehensive and forward-thinking approach to customer centricity, continuously striving to enhance the customer experience by offering personalised and exceptional banking services tailored to their needs and aspirations. The Bank prioritises effective, responsible communication and broadens customer touchpoints, actively gathering insights from both traditional and digital channels. This valuable feedback is leveraged to develop innovative solutions that address the evolving needs of diverse customer segments. To achieve this, the bank employs cutting-edge technologies, including data management and analytics systems, and artificial intelligence, while maintaining a strong presence across social media platforms. Additionally, the “Voice of the Customer” indicator is closely monitored to identify and proactively resolve potential concerns at their roots. These practices with their significant positive impact, underscore alrajhi bank’s unwavering commitment to continuous improvement.

alrajhi bank’s esteemed position, both locally and globally, reflects its core and most valuable asset—its human resources—a team that has played, and continues with dedication to play an integral role in driving the bank’s success. As such, alrajhi bank places significant emphasis on investing in the care, development, and growth of its human resources, ensuring a holistic enhancement of their professional experience. This begins by fostering a healthy, positive, and motivating work environment, developing their skills and capabilities through specialised training programs, and providing the necessary infrastructure and technological solutions for optimal performance and excellence. The bank also adopts best practices in performance management, evaluation, development, communication, benefits, and compensation. Within this framework, alrajhi Academy continues to implement talent development initiatives and workforce training across various functions and disciplines, along with graduate development programs. Moreover, the bank designs and executes development programs focused on cultivating the essential skills required at all job levels, ensuring alignment with the bank’s strategic objectives. Additionally, alrajhi bank launched the “Nomu” platform, fostering internal career mobility across our departments and subsidiaries. This platform aims to nurture our employees’ growth journey while enhancing their engagement and satisfaction within our institution.

As we reflect on 2024’s remarkable achievements and transformative progress, we look to 2025 and beyond with unwavering confidence and optimism. We remain committed to advancing in our journey of excellence and innovation, continuously developing pioneering solutions and services. Our “harmonize the group” strategy serves as a powerful springboard, propelling alrajhi bank confidently into the future. This strategic foundation enables us to adapt to evolving market dynamics, overcome challenges, and secure long-term success, further cementing our position as a leading force in banking services across local, regional, and international markets.

In conclusion, I extend my heartfelt gratitude to our Chairman and Board members for their steadfast support and guidance. My deepest appreciation goes to our esteemed clients, shareholders, and partners who have been instrumental in our success. I am particularly grateful to our dedicated colleagues at alrajhi bank—from our executive team to our staff across all departments, sectors, branches, and subsidiaries—whose unwavering commitment and sincere efforts continue to strengthen and sustain this distinguished financial and economic institution. With Allah’s blessing, we look forward to a new year filled with promise, growth, and prosperity for all.

May Allah grant success,

Waleed Abdullah Almogbel
Managing Director and CEO