business portfolio review

corporate banking group

The corporate banking sector of Saudi Arabia recorded significant growth in 2025, driven by the sustained momentum of economic diversification efforts of Vision 2030, and a strong demand for corporate credit. Large-scale giga-projects, increased public-private partnerships, and strong non-oil private sector growth continued to stimulate borrowing for project finance, working capital, and trade-related facilities. Banks benefited from rising demand for treasury services, cash management, payroll, trade finance, and capital markets-related solutions alongside traditional lending. Beyond the growing demand for corporate credit, key trends included accelerated digital transformation and AI adoption, a focus on sustainable/ESG financing, and a rise in SME financing opportunities, all supported by SAMA’s regulatory framework aimed at enhancing financial inclusion and sector resilience. Overall, KSA’s corporate banking sector in 2025 reflected a structurally transforming economy, with credit growth increasingly aligned with the Kingdom’s diversified, non-oil economic activity.

Against this favourable backdrop, alrajhi bank’s Corporate Banking Group (CBG) further reinforced its position as one of the Kingdom’s leading corporate banks, capturing a 14.5% share of the corporate banking market and ranking third in Saudi Arabia by corporate loan portfolio.

A segmented approach to better serve customers

Following the launch of our overarching ‘harmonize the group’ strategy in 2024, CBG classified corporate clients into four distinct, needs-based segments: Corporate and Investment Banking; Micro, Small and Medium Enterprises; Government and Enterprises; and Private Banking. To serve these segments, the collective portfolio of corporate banking products and services spread across the alrajhi group was brought under the Business-to-Business (B2B) strategic pillar.

For Corporate and Investment Banking clients, CBG offered a broader set of products and services beyond the core corporate banking solution, in order to become the ‘House Bank’ of Large Corporates, a key strategic objective under the B2B pillar. By leveraging group synergies, CBG offered trade finance and treasury products to facilitate foreign trade and commerce, corporate insurance products from Al Rajhi Takaful, investment banking, asset management and brokerage from Al Rajhi Capital, and exclusive Private Banking services for HNWI customers, alongside payments, payroll, and accounting solutions tailored to meet evolving business needs. For 2025, CBG successfully recorded a notable 43.4% YoY growth in foreign exchange (FX) business, with a 23.9% increase in trade fee income during the year.

Growing Small and Medium Enterprises (SMEs) is also a key strategic imperative that falls under the B2B pillar. CBG follows a more focused approach to servicing the Kingdom’s growing Micro and SME sector, with product portfolios tailored to meet distinct business needs. Group synergies continued to be leveraged in 2025 to provide the growing segment with comprehensive, bundled banking and financial solutions through end-to-end digitised customer journeys, faster credit processing and reduced turnaround times. More details on these initiatives can be found on our dedicated MSME Business section on page 64 of this Report.

CBG continued its collaboration with Al Rajhi Capital to expand its Investment Banking offering and establish advisory services, including Mergers and Acquisitions (M&A), Advisory and Underwriting services, Access to Equity/Debt Capital Market (ECM/DCM) and more, as part of developing the Investment Banking business, yet another strategic imperative falling under the B2B pillar. The investment banking businesses continued to enhance non-yield income, with revenue from investment banking activities growing by a remarkable 220% at the close of the year from the 2023 baseline.

Overall, CBG recorded a strong performance in 2025; Our corporate portfolio increased 24% YoY to surpass X 271 Bn., on the back of SME lending growing significantly by 50.4% during the reporting period. SME now represents 22% of alrajhi’s total non-retail book, and nearly 8% of the bank’s financing book. Total number of borrowing customers increased by 28% YoY. Corporate operating income increased by 24% to reach X 9.7 Bn.

At the close of the year, the corporate portfolio maintained strong asset quality with a non-performing loan (NPL) ratio of 1.37%, and a net credit loss (NCL) of 0.19%, reflecting strong recoveries and reversals made during 2025. The MSB portfolio recorded an NPL ratio of 5.04% in 2025, remaining broadly in line with industry benchmarks for SME banking in KSA, while NCL stood at 1.39%, underscoring a controlled credit performance within the higher-risk segment.

Driving Vision 2030 outcomes through corporate banking solutions

During the reporting period, CBG continued to engage with major public and private sector corporations to provide best-in-class financial solutions across the Kingdom’s priority growth sectors such as tourism and culture, entertainment, sports, education, and energy, supporting the delivery of Vision 2030’s Vision Realisation Programmes (VRPs). CBG also supported the expanding construction sector in KSA, with special focus on large-scale contractors and multinational companies involved in construction and infrastructure projects ranging from housing to smart cities.

In 2025, CBG deepened its engagement with Saudi Arabia’s non-profit sector, reinforcing alrajhi bank’s role as a trusted financial partner aligned with the Kingdom’s social development agenda under Vision 2030. To support the sector’s continued growth, CBG signed an MoU with the National Centre for Non-Profit Sector Development to strengthen collaboration, advance digital solutions, enhance governance, and broaden tailored banking offerings for non-profit organisations, which were incorporated under the B2B pillar in 2024. Customer experience was further improved through the removal of approval requirements for endowment (awqaf) account openings, and by reducing approval timelines for account openings for non-profit associations and foundations from five days to one.

Strengthening the private banking value proposition

In 2025, CBG expanded its Private Banking offering through a balanced focus on bespoke financing, wealth transition solutions, and exclusive lifestyle privileges for affluent and HNWI clients. CBG introduced financing against demand and structured deposits, enhanced overdraft limits from X 2 Mn. to X 10 Mn., and launched the ‘Wealth Leap’ initiative to support clients’ needs post IPOs. Private Banking also strengthened its lifestyle proposition during the reporting period through exclusive partnerships and experiences, including premium benefits and discounts with Zain, Al Hilal Club, Rolls-Royce, Bentley, Lamborghini and flynas, alongside curated retail, dining, travel, and bespoke gifting arrangements for Black Card and Private Banking clients. These enhancements reinforced a holistic value proposition that integrates wealth solutions with exclusive lifestyle access.

Strategic digital transformation

Digitalisation initiatives during the reporting period under the B2B pillar focused on streamlining journeys, expanding digital product access, and improving client experience. Key developments during the year included the launch of a fully digital Letter of Guarantee (LG) journey with instant mobile issuance, the introduction of a new eCommerce marketplace, automated Buyer Finance, and Saudi Arabia’s first fully digital B2B Buy Now, Pay Later (BNPL) solution. Clients were also introduced to the digital bid bonding process, with 50% of bid bonds processed via mobile and e-business channels during 2025. Digital access for MSMEs was further enhanced through upgrades to sector-specific financing solutions. More than 80 targeted digital enhancements were delivered to improve customer experience, supported by new partnerships with leading technology start-ups. More statistics on the digital transformation of the B2B offering can be found in the digitalisation and automation on page 187 of this report.

Active client engagement

Client engagement remained a key growth driver for CBG during the year in review. In 2025, CBG continued to strengthen the bank’s 360-degree client coverage model, adopting a holistic, relationship-led approach to understanding corporate client needs. Active engagement through client calls and visits enhanced insight into customer requirements and market sentiment, enabling more proactive and targeted solutions. Leveraging the group’s digital and data capabilities, CBG delivered relevant product recommendations and expanded cross-sell opportunities, supported by robust performance monitoring and reporting.

As part of the ‘One Stop Shop’ initiative, the number of CBG Business Solution Offices (Corporate Desks) within Retail branches stood at 138 by year-end. These efforts contributed to a market-leading Corporate Banking Net Promoter Score (NPS) of 71, reflecting strong client loyalty and satisfaction.