Al Rajhi Bank SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

SWOT analysis of Al Rajhi Bank analyses the brand/company with its strengths, weaknesses, opportunities & threats. In Al Rajhi Bank SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Al Rajhi Bank to benchmark its business & performance as compared to the competitors and industry. As of 2020, Al Rajhi Bank is one of the leading brands in the banking & financial services sector.

The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top Al Rajhi Bank competitors and includes Al Rajhi Bank target market, segmentation, positioning & Unique Selling Proposition (USP).

Al Rajhi Bank SWOT Analysis, Competitors, Segmentation, Target Market, Positioning, USP & Brand Analysis Table
Al Rajhi Bank Brand Analysis
Parent Company

Al Rajhi Bank

Category

Regional Banks

Sector

Banking & Financial Services

Tagline/ Slogan

Local vision, international expertise

USP

Saudi Arabia’s largest sharia-compliant banking group offering sharia-compliant products

Al Rajhi Bank STP
Al Rajhi Bank Segmentation

Retail banking, corporate banking, treasury banking and investment and brokerage services

Al Rajhi Bank Target Market

Individuals, Small, medium & large enterprise looking for diverse financial solutions

Al Rajhi Bank Positioning

Saudi Arabia’s largest sharia-compliant banking group, instrumental in bridging the gap between modern financial demands and intrinsic values

Al Rajhi Bank SWOT Analysis
Al Rajhi Bank Strengths

Below are the Strengths in the SWOT Analysis of Al Rajhi Bank:

1. It is one of the largest Islamic Bank of the World with total asset of USD 60 Billion
2. Al Rajhi is one of best-known family businesses with nearly 600 branches across the oil-rich kingdom, a sixth of which are dedicated to female customers in the gender-segregated society

3. The bank has also expanded into Malaysia, the world’s Islamic finance hub, as well as Kuwait and Jordan

4. It won the Asian banker of the year for Retail and Corporate Banking

5. It has the largest retail network and occupies nearly half of the retail sector’s profits and has over 7500 employees

6. The bank’s cheap cost of funds, which is a consequence of its large interest-free deposit base, has given it a place among the most attractive Saudi stocks

Al Rajhi Bank Weaknesses

Here are the weaknesses in the Al Rajhi Bank SWOT Analysis:

1. The bank had been accused of being involved in funding illegal activities by a US Senate committee, thrashing its reputation
2. Rapid credit growth exerted excessive pressure on Al Rajhi's capital position
3. Given the limited use of variable components in compensation, costs tend to be sticky and of low flexibility across the cycle

Al Rajhi Bank Opportunities

Following are the Opportunities in Al Rajhi Bank SWOT Analysis:

1. Strong net profit growth on the back of a surging economy, fuelled by high oil prices, which has boosted lending, deposits and deal activity

2. Bank sector lending to private companies in Saudi Arabia still grew at a rate of 15 percent year-on-year
3. Increased retail lending can be a key driver of the Al Rajhi's overall loan growth

4. International expansion likely to bolster revenues, the bank should try to expand its presence in overseas markets

Al Rajhi Bank Threats

The threats in the SWOT Analysis of Al Rajhi Bank are as mentioned:

1. In the past quarters, the competition has increased significantly from both Islamic and conventional players
2. If the bank's reputation were to be damaged on account of allegations made by US Senate, it can lower down its ratings

3. The lending environment in Saudi Arabia intensely competitive between a small number of local banks, and means that while banks will be able to book new assets, margins will be tight

Al Rajhi Bank Competition
Competitors

Below are the top 4 Al Rajhi Bank competitors:

1. The Saudi British Bank

2. Saudi Hollandi Bank

3. Riyad Bank

4. Arab National Bank


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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