Saudi Telecom Giant stc Group Prepares to Revolutionize Banking Sector with Shariah-Compliant Fintech Solutions
In a groundbreaking move, stc Group has secured official approval from the Saudi Central Bank for the soft launch of its new banking sector subsidiary, stc Bank. The subsidiary is set to offer Shariah-compliant fintech solutions, with a full rollout to all customers expected later this year. CEO Olayan Al-Wetaid made this announcement while unveiling the company’s first-quarter financial results.
Aligning with Vision 2030 Goals
stc Bank aims to provide banking services and financial solutions adhering to Islamic Shariah principles, prioritizing top-notch security and customer protection through advanced fintech. This initiative is in line with the ambitious objectives of Saudi Arabia’s Vision 2030 for a thriving diversified economy.
Strategic Moves in Telecommunications Sector
During the financial results announcement for the period ending March 31, Al-Wetaid highlighted stc Group’s strengthened position in the telecommunications sector. A strategic partnership with the Public Investment Fund has been instrumental in this growth.
Merger and Expansion Plans
In April, stc Group and the Public Investment Fund finalized agreements for PIF to acquire a majority stake in Tawal, valuing the company at SR21.94 billion ($5.8 billion). This move is part of a broader merger with Golden Lattice Investment Co., forming a new entity to lead the national telecommunications infrastructure.
DARE 2.0 Strategy in Action
stc’s DARE 2.0 strategy, focusing on unconventional growth paths and spearheading digital transformation in the region, has already shown promising results. The company witnessed a 35 percent increase in voice call volume during Ramadan, backed by cutting-edge digital voice technologies.
Global Collaborations and Innovation
Through strategic partnerships with tech giants like Huawei, Ericsson, and Samsung at the LEAP 2024 conference, stc Group is driving innovation and accelerating digital transformation across the region. Additionally, subsidiary Solutions has inked agreements with global players like Devoteam Group to explore IT investment opportunities worldwide.
Impressive Financial Performance
stc Group reported significant revenue growth in the first quarter of 2024, with revenues increasing by 7.76 percent compared to the previous quarter and 5.07 percent compared to the same period last year, totaling SR19.1 billion. The company also saw a rise in gross profit and robust earnings before interest, taxes, zakat, depreciation, and amortization.
Noteworthy Profit Surge
Net profit for the quarter surged by 44.50 percent compared to the previous quarter, reaching SR3.2 billion. This impressive financial performance underscores stc Group’s commitment to innovation, growth, and excellence in the telecommunications and banking sectors.