Saudi National Bank Shares Jump on ‘Stellar’ Earnings Report – Here’s Why This Could Be Just the Beginning!

The Saudi National Bank (1180.SR) has sent a clear signal to investors: its financial health is booming. Shares surged 3.24% to 35 SAR this week, fueled by an earnings report that analysts are calling “stunning.” Let’s break down the numbers and why this could be the start of something big.

The Earnings Report: A Masterclass in Consistency

The bank’s Q1 2025 estimates are nothing short of impressive. Analysts project an EPS of 0.9 SAR, a 10% year-over-year jump from Q1 2024’s 0.82 SAR. Even more striking? The bank has consistently beaten EPS estimates in recent quarters. In Q4 2024, it blew past expectations by 8.43%, and in Q3 2024, it exceeded forecasts by 5.72%. This pattern suggests the bank isn’t just lucky—it’s executing flawlessly.

Revenue is also on track, with Q1 2025 projections hitting 9.23 billion SAR, a 3.22% rise from last year. For the full 2025 fiscal year, analysts see revenue climbing to 39.02 billion SAR, a 6.46% increase over 2024.

The Analysts Are Bullish—But What Do the Numbers Say?

Analysts aren’t holding back. The average price target is 46.18 SAR, with some daring to project as high as 53.50 SAR. That’s a potential 31.9% upside from current levels. Even the most cautious targets (35.00 SAR) align with the stock’s recent performance.

The bank’s 9.26% EPS growth rate for Q1 2025 blows past the S&P 500’s projected 7.05% for the same quarter. This isn’t just about keeping up—it’s about leading. And with a historical trend of outperforming estimates, there’s little reason to doubt the bank’s ability to hit these numbers.

The Bigger Picture: Saudi Arabia’s Economic Tailwind

The kingdom’s economy is firing on all cylinders. The OECD projects 3.8% GDP growth in 2025, while the Saudi stock market is 8% higher thanks to surging banking and healthcare sectors. This isn’t just luck—it’s a testament to Vision 2030’s success in diversifying the economy beyond oil.

For Saudi National Bank, this means more lending opportunities, stronger consumer demand, and a robust pipeline of corporate clients. With non-performing loans at a historic low of 1.5%, the bank is in a prime position to capitalize on this growth.

Risks? Sure, but They’re Manageable

No investment is risk-free. Geopolitical tensions and oil price swings could spook markets, but the bank’s 18% capital adequacy ratio (way above regulatory requirements) gives it a cushion. Plus, the kingdom’s push to digitize banking and expand SME lending bodes well for long-term stability.

Conclusion: A Can’t-Miss Opportunity—But Act Fast

The numbers don’t lie. Saudi National Bank is delivering on all fronts: earnings, revenue, and analyst confidence. With an average price target of 46.18 SAR and a stock price still below that mark, there’s room to run.

But here’s the kicker: the bank isn’t just a beneficiary of Saudi Arabia’s growth—it’s a driver of it. As the kingdom’s economy diversifies and its financial sector matures, this bank stands to gain disproportionately.

Final Verdict: Buy now. The fundamentals are too strong to ignore, and with a 31.9% upside potential, this could be one of the best calls you make in 2025. Just keep an eye on oil prices—they’re the wildcard here.

Disclosure: Always do your own research and consult a financial advisor before making investment decisions.