Saudi National Bank (1180.SE): Two Years of Tarek at Helm: How Has the Bank Fared?

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Saudi National Bank (1180.SE): Two Years of Tarek at Helm: How Has the Bank Fared?

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25 Jun 2026 00:30:08 ET │ 34 pages

Saudi National Bank (1180.SE)

Two Years of Tarek at Helm: How Has the Bank Fared?

CITI'S TAKE

SNB’s stock price is up 22% LTM – best performing within our KSA banks

coverage - as investors saw early wins around the bank’s 3Yr (2025-27)

strategy (across a range of domains – incl. NIM management, volume & non- Buy

II growth, OpEx/LLP normalization). We sense momentum on some of these Short-Term View: Downside

catalysts (esp. revenue drivers) have started to slow – and could continue to

Price (23 Jun 26 15:00) SAR41.18remain muted in the M.T., limiting any sizable further ROE expansion for the

bank. Nonetheless, valuations (at 9.4x 1YrFwd PE) still remain reasonable. Target price SAR46.50

While we retain our Buy rating on SNB, we position Riyad Bk and BSF as our Expected share price

preferred plays in the Saudi banks space. 12.9% return

Expected dividend yield 5.3%Still a Work-in-Progress – Tarek joined SNB in mid-2024. 2025 saw a notable

improvement in the bank’s corporate lending momentum (+c.22% YoY vs. peer Expected total return 18.3%

avg.15%) and profit growth (17% vs. peer avg. 11%). However, our performance Market Cap SAR247,080M

heatmap analysis over 2024-25 reveals that while SNB outperformed peers on OpEx

and CoR metrics, it lagged on most other parameters. Note that while 2025 YoY ROE US$65,825M

improvement (+113 bps) was driven by better certain one-off gains, alongside NIMs

& stronger non-II efficiency – we expect some of these factors to retreat in 2026 YoY.

Same Strategy, New Goalposts - Tarek released SNB’s initial 2027 strategy in early