strategic direction

In 2025, alrajhi bank continued to strengthen its position as a leading financial institution in Saudi Arabia, delivering robust performance across its four strategic pillars: Business-to-Consumer (B2C), Business-to-Business (B2B), Support Businesses, and Digital & Data. Guided by its harmonize the group strategy, the bank focused on creating an integrated, customer-centric ecosystem, leveraging innovation, technology, and sustainability to drive long-term growth and value for all stakeholders.

Key highlights for the year include:

• B2C Growth: Delivered remarkable 340% growth in sales by expanding the bank’s retail customer base across Premium, Expat, Family, and Mass segments, with improved value propositions and cross-selling initiatives.
• B2B Leadership: Strengthened the bank’s position as the main bank for large corporates, accelerated investment banking revenue (270% growth), and expanded SME solutions portfolio (up 94.3% to X 59 Bn.).
• Operational Excellence: Centralised and standardised operations, increased automation to 62%, and cloud-enabled 92% of applications, enhancing agility, scalability, and cost efficiency.
• Digital and Data Innovation: Expanded digital capabilities group-wide, delivered customer-centric digital journeys, and leveraged real-time marketing to generate a significant 447% revenue increase.
• Stakeholder Engagement: Elevated customer satisfaction (NPS 82), sustained employee engagement (74%), invested in career development and training, and strengthened ESG leadership (MSCI rating improved to AA).

This demonstrates alrajhi bank’s continued commitment to delivering sustainable growth, digital innovation, and an integrated financial-services ecosystem aligned with Vision 2030. The bank’s ‘harmonize the group’ strategy remains anchored to a customer-centric approach and supports increased cross-sales with efficiency from support businesses; creating multiple growth opportunities.

Business-to-Consumer (B2C)

At the heart of alrajhi bank’s ‘harmonize the group’ Strategy is how best to connect each customer segment to the bank’s growing retail products and solutions. The B2C pillar is dedicated to integrating alrajhi bank’s comprehensive banking and financial services ecosystem to better serve its growing retail customer base. The bank’s Retail Banking Group continued to collaborate closely with business verticals and subsidiaries across the alrajhi group to meet the evolving requirements of existing as well as new emerging customer segments, with the aim to ‘Leverage the Customer Base via Cross-Sell’, one of the B2C pillar’s key strategic priorities. Through these partnerships, customers gain access to a wide range of complementary offerings, including microfinancing solutions from Emkan, digital payment wallets by Neoleap, wealth management and brokerage services through Al Rajhi Capital, and personal insurance solutions via Al Rajhi Takaful. Customers are also encouraged to take advantage of the bank’s market-leading mokafaa loyalty programme, which rewards engagement across the broader alrajhi ecosystem and has a broadening range of acceptance through Partners. A key indicator of cross-sell success is the multi-product adoption rate, which rose from 38.0% in 2023 to 44.6% by the end of 2025.

The Retail Banking Group continued to develop new ‘customer-focused value propositions’ and enhance existing ones for each profile, anchored in the core needs of retail customers: the need to transact, build savings for future needs, access credit (whether secured or unsecured), manage risk through appropriate insurance solutions, and build wealth through diversified investment options. By designing propositions around these needs and aligning them with its expanding suite of retail products and services, the bank aims to further deepen its customer relationships by offering products and services aligned to customers need as and when they need them.

Another core strategic priority falling under the B2C pillar is to ‘Enter New Segments’, enabling the bank to deepen its understanding of each segment and develop tailored value propositions that address their unique financial needs. The bank’s four main segments continue to be Premium, Expat, Family, and Mass Market. Each segment has been further refined to capture the diverse expectations within its demographic.

The Premium segment targets the increasing population of high-income earners, ensuring bespoke services that reflect their evolving financial requirements. The Expat segment, traditionally centred on blue-collar workers, has been broadened to include the rapidly expanding group of white-collar professionals drawn to Saudi Arabia through Vision 2030 initiatives. The Family segment focuses on the emerging financial needs of youth and young families, supporting their long-term aspirations. Meanwhile, the Mass Market segment aims to support the concept of financial health which moves beyond just providing access to basic banking solutions for the wider consumer base.

Progress against each strategic imperative continued to be measured relative to the FY 2023 baseline, and tracked through key performance metrics and communicated quarterly to shareholders and investors. At the close of 2025, all core metrics within the B2C pillar demonstrated increasing momentum and remained in line with strategic objectives.

Business-to-Business (B2B)

The second strategic pillar focuses on alrajhi bank’s corporate customer segments. A central objective within this pillar is to ‘Become the Main Bank for Large Corporates’. In recent years, alrajhi bank has strengthened its reputation as a trusted and sought-after partner in corporate banking by providing a comprehensive suite of services and financial solutions that address evolving market dynamics. Since the launch of the new strategy, the bank continues integrating its full ecosystem of products and services to deepen relationships within the B2B pillar, evolving from a provider of transactional and financing solutions to a long-term strategic partner.

alrajhi’s Corporate Banking Group offers a broadening range of corporate banking products and advisory services. These are complemented by B2B wealth management and brokerage solutions from Al Rajhi Capital, corporate and group insurance offerings from Al Rajhi Takaful, and exclusive Private Banking services for high-net-worth clients. The bank also leverages one of the region’s most expansive Financial Institutions (FI) networks to support cross-border payments and foreign exchange trading through the Treasury Group, in addition to offering robust Trade Finance products designed to facilitate foreign trade and commercial activity.

Progress toward this strategic objective is measured through growth in corporate banking market share in the Kingdom. By the end of FY 2025, market share increased by 2.2% from the baseline year, reaching 14.5%. alrajhi bank’s sustained commitment to enhancing its B2B value proposition for a wider range of clients has seen new propositions launched to support the growing SME segment as it continues to grow and mature adding economic value to the Saudi eco-system.

The second key objective under the B2B pillar is ‘Developing Investment Banking Business’. With Vision 2030 initiatives attracting substantial foreign capital into Saudi Arabia, alrajhi bank has identified a significant opportunity to position itself as the corporate banking partner of choice for international investors and to strengthen its role in the syndication of large-scale transactions. These efforts are supported by the bank’s robust Treasury capabilities, which manage funding requirements and deliver investment, income, and hedging solutions. Performance for this objective is measured through indexed revenue growth from investment banking activities, which accelerated momentum in growth last year and was 270% over the FY 2023 baseline by the end of FY 2025.

The third strategic imperative within the B2B pillar is to ‘Grow SME via Tailored Solutions’, encompassing micro, small, and medium enterprises. SMEs in KSA have shown a remarkable ~3X increase over the last 5 years. The SME sector is a central focus of Vision 2030, serving as a key driver of economic diversification, innovation, and job creation across the Kingdom. In alignment with this national priority, alrajhi bank has intensified its efforts in recent years to support the growth and sustainability of micro and SME businesses through a suite of targeted financial services and digital solutions.

Leveraging its 43.5% market share of physical Point-of-Sale (POS) terminals across Saudi Arabia, the bank offers POS financing solutions based on cash-flow generation, alongside a comprehensive portfolio of digital banking solutions that provide SMEs with rapid access to funding while helping them reduce operational costs. Complementing these offerings, the bank continues to strengthen its digitised value proposition by developing and integrating additional benefits such as access to B2B online Marketplaces and development of end to end digital solutions to reduce the administration burden for the segment.

One such digital solution is Qaema, a FinTech accounting solution designed to simplify financial management by allowing SMEs to conduct daily operations while maintaining compliance with accounting and regulatory requirements. The bank’s concentrated efforts to grow this business vertical saw its SME portfolio nearly double, growing 94.3% from X 30 Bn. in 2023 to X 59 Bn. in 2025, with consistently increasing market share and cross-sales penetration.

Support businesses

The third pillar encompasses the bank’s IT and support functions that serve the wider alrajhi group. The bank’s ‘harmonize the group’ strategy continued to capitalise on the modernised capabilities and technology investments made during its previous strategy cycle, and leverage them to maximise scalability and enhance operational efficiencies across the group.

The first strategic objective under this pillar 'Centralisation and Standardisation’, alongside the second objective of ‘Increasing Automation and Efficiency’, had a head start at the beginning of the strategy cycle. Multiple operational functions were consolidated under a single corporate entity rather than operating in silos, while workflows were streamlined, re-engineered, and automated. This consolidation delivered significant economies of scale, reduced cost-to-serve, and enhanced customer experience. The group’s shared-services company, Atmaal, now oversees centralised operations, staffing solutions, automation, and call-centre activities, driving operational efficiency and reducing overhead costs. In addition, Tawtheeq operates as a fully automated and scalable platform that delivers financial registration services to both alrajhi bank and external clients.

By the close of the reporting period, 53.5% of capabilities had been centralised and standardised, reflecting a 40% improvement over the baseline of 13.5%. Automation progress also remained strong, with 62% of processes automated—representing a 37% improvement over baseline levels.

Ejada Systems, a leading IT services and solutions provider, has played a pivotal role in accelerating the bank’s digital transformation, since its acquisition in 2022. Ejada has supported the bank’s IT and Digital teams in rapidly developing and deploying digital capabilities, enabling the bank to stay ahead of competition and respond effectively to emerging market needs. Alongside increased automation, the bank continued upgrading infrastructure and systems to become cloud-ready—an initiative aligned with the third strategic imperative under the Support Businesses pillar, ‘Increase Scale and Agility via Cloud’.

With cloud adoption now strongly supported in Saudi Arabia and most global cloud hyperscalers fully operational in the Kingdom, alrajhi bank’s early investment in cloud-enabled technologies has positioned it to fully leverage these advancements. By the end of the year, 92% of all applications were cloud-ready. In addition to improved scalability and agility, cloud adoption will further enhance business continuity by enabling advanced disaster recovery capabilities.

Digital and data

alrajhi bank recognises digital capabilities as a critical enabler of customer experience and group-wide integration. The fourth pillar of the harmonize the group strategy promotes the central role of digital innovation in modern banking and focuses on strengthening connectivity across the alrajhi ecosystem through enhanced digital and open-banking capabilities. The first two strategic objectives under this pillar, ‘Expand Digital Capabilities Group-wide’ and ‘Build Customer-centric Digital Journeys Group-wide’, are closely interlinked.

The bank continued to make significant progress in expanding its digital footprint during the reporting year, having digitised nearly all service and sales journeys across the organisation. Building on this success, the bank is now extending digital and data excellence across the wider group, leveraging its internal digital Centre of Excellence to deliver seamless, customer-centric experiences across all subsidiaries and business units. The bank has also commenced standardising customer journeys to enable familiarisation to customers across the ecosystem of the bank and its subsidiaries.

These integrated digital journeys enable customers to access holistic and bundled banking solutions tailored to their needs, with the bank orchestrating all necessary products and services through intuitive, end-to-end digital channels.

alrajhi bank’s FinTech investments also fall under this pillar. As Open Banking continues to redefine the financial landscape in Saudi Arabia, the bank’s ecosystem has been strengthened through key ventures including;

• Neoleap, alrajhi’s payments company;
• Neotek, a data-aggregation and Open Banking fintech
• Drahim, a Personal Finance Management (PFM) application.

With customers’ explicit and well-informed consent, aligned with KSA’s Open Banking regulations and robust security standards, data can be securely shared across alrajhi bank, its subsidiaries, and other financial institutions. This creates hyper-personalised digital experiences and seamless

interactions across multiple applications and platforms. alrajhi bank will continue investing in strategic FinTech opportunities and is fully prepared to capitalise on the expanding Open Banking environment in the Kingdom.

Progress in expanding digital capabilities is measured through the Digital-to-Manual ratio, which improved to 96:4 by the end of the year, compared to a baseline of 94:6. Advancement in customer-centric digital journeys is assessed through the number of group and Open Banking APIs, which increased by 244%, rising from 119 APIs in 2023 to 409 APIs at the end of the reporting period.

The third component of the Digital and Data pillar is ‘Group-wide Insights and Real-time Marketing’. With real-time event processing enabled by the bank’s upgraded digital core banking systems, alrajhi bank is able to monitor customer interactions as they occur and understand behavioural patterns across the customer journey. This capability allows the bank to respond instantly to customer actions, whether triggered by an event or anticipated by behavioural analytics, through data-driven marketing and personalised services.

Events can range from specific credit card transaction, purchase of a travel ticket, to a reminder of an upcoming facility expiry. Each event initiates a tailored, automated response selected from hundreds of pre-programmed real-time actions, such as SMS or push notifications, credit-limit increase offers, or curated loyalty rewards from partner merchants at the point of sale.

Through real-time event tracking, the bank can respond dynamically to customer actions, offering automated, personalised communications and marketing offers. This advanced capability not only enhances customer experience but has also generated significant value for the bank, contributing to a remarkable 447% increase in revenue from data-driven marketing by year-end.

Stakeholder engagement

Supporting the four strategic pillars are four additional strategic imperatives that underscores the bank’s commitment to its key stakeholders.

The first of these is to ‘Maintain Leadership in Customer Experience’, with progress measured through the Net Promoter Score (NPS), a globally recognised indicator of customer satisfaction and loyalty. alrajhi bank’s enduring reputation as a customer-centric institution stems from its continued focus on understanding its customers, anticipating their needs, and proactively delivering solutions that ensure a superior banking experience.

Customer-centricity has been a defining theme across all of alrajhi bank’s strategic cycles. The ‘harmonize the group’ strategy builds on the foundations of the previous strategy cycle where the bank focused on building products and infrastructure through a customer-first lens. It integrates new products, advanced technologies, expanded subsidiaries, and enhanced capabilities to deliver deeper, data-driven relationships and meet the full spectrum of customers’ financial needs. This holistic approach is further strengthened by the bank’s commitment to best-in-class sales and after-sales services, ensuring consistent care and engagement across all customer touchpoints. alrajhi bank maintained strong NPS scores since the start of its 2024-2026 strategy, moving from a baseline of 76 in FY 2023 to 82 at the close of FY 2025.

The second and third strategic imperatives are employee-centric, focused to ensure ‘alrajhi group is a Great Place to Work’ and ‘Build Successful Careers Across the Group’. As one of the most sought-after employers in the Kingdom, alrajhi bank continues to uphold its strong reputation for best-in-class talent attraction, development, and retention, particularly among Saudi Arabia’s top talent. The bank’s consistently strong employee engagement score of 74% reflects its commitment to fostering an environment where employees feel empowered, supported, and equipped to advance the bank’s ambitious goals while building fulfilling and rewarding careers. As well as providing on the job training, the bank continues to invest in its talent development to support capability enhancement in-line with the changing requirements of the financial sector. This is reflected with many vacancies being filled internally which increased promotions to existing staff.

Maintain leadership in customer experience

Net-Promoter-Score (NPS)

76%

FY 2023

+6%

82%

FY 2025

Ensure alrajhi group’s a great place to work

Employee Engagement

74%

FY 2023

+0%

74%

FY 2025

Build successful careers across alrajhi group

Training Days Total – Indexed

100

FY 2023

+305%

405

FY 2025

Leader in Financial Conduct and Sustainability

ESG rating

BBB

FY 2023

+2

AA

FY 2025

Career progression is further supported through opportunities across the bank’s subsidiaries and business verticals. Training remains a core enabler of this imperative, with substantial investments in knowledge transfer, capability building, and skills development. Total training delivered during the reporting period increased by 305% compared to the baseline year.

The fourth and final strategic imperative is to Be a Leader in Financial Conduct and Sustainability. alrajhi bank continues to operate with prudent management, responsible business practices, and strong regulatory compliance, underpinned by robust governance across all operations. As the world’s largest Islamic Bank, alrajhi builds on its long-standing reputation for leadership in financial conduct, while demonstrating that Shariah-led Islamic finance aligns naturally with contemporary ESG standards and the wider goals of sustainable finance.

alrajhi bank has been an early and proactive adopter of ESG principles in the Kingdom, integrating sustainability across business lines and aligning its overall strategy with four key sustainability priorities: Supporting Vision 2030 and KSA Net Zero, Creating a Digital Future, Conducting Responsible Business with Good Governance, and Fostering Stronger Community Ties.

As part of its commitment to addressing climate change, the bank developed a comprehensive Sustainable Finance Framework, led by the Sustainable Finance Working Group – an ESG Committee responsible for overseeing the bank’s ESG agenda. The Framework forms the basis for the bank’s sustainable financing instruments and is fully aligned with internationally recognised standards, including the Social Bond Principles (ICMA, 2021), Social Loan Principles (LMA/LSTA/APLMA, 2021), Green Bond Principles (ICMA, 2021), Green Loan Principles (LMA/LSTA/APLMA, 2021), and the Sustainability Bond Guidelines (ICMA, 2021). The Framework has been independently verified by S&P Global.

Through alrajhi bank’s sustainable financing initiatives, it continues to support progress toward the UN Sustainable Development Goals (UN SDGs), and channel investments into renewable energy, water and wastewater management, pollution prevention, clean transportation, green buildings, employment generation, affordable housing, and improved access to essential services. The bank also publishes an annual Allocation and Impact Report detailing the use of proceeds and the outcomes achieved through projects financed under the Framework.

The chosen performance indicator for this strategic imperative is the bank’s ESG rating, assessed by external ESG rating agencies based on public disclosures. alrajhi bank has been successful in consistently improving its ESG rating from a baseline of BBB 2023 to A in 2024, becoming the first bank in Saudi Arabia to achieve AA during 2025.

The bank remains committed to partnering with stakeholders, peers, and key regulators, including SAMA, the Saudi Stock Exchange, and the Ministry of Economy and Planning, in order to advance ESG standards in the Kingdom, covering ESG taxonomy, risk policies, data and metrics, and qualification criteria for sustainable financing.

Future outlook

alrajhi bank remains committed to executing the ‘harmonize the group’ strategy through 2024–2026. The ongoing successful execution of the strategy is reflected in the financial and non-financial achievements by the bank through the first two years of its implementation. During the final year of the strategy cycle, the bank will remain focused on building on the momentum and continue to expand its integrated financial-services ecosystem, drive digital innovation, enhance stakeholder value, and support Saudi Arabia’s Vision 2030 and sustainable development objectives.