Saudi Arabia's Bank Albilad is targeting 20 per cent earnings growth in 2015 and double-digit profit increases in coming years as it expands lending in both the retail and corporate sectors, its chief executive told Reuters.

The smallest bank in the kingdom by assets plans to expand retail lending through a larger branch network, set to increase by 15 this year from 116 at the end of 2014.

It is also looking to capitalise on credit demand from companies on the back of significant spending on development projects by the government.

In turn these trends should help stimulate the wider economy.

"We have a very well-defined strategy for our growth," Khaled Al-Jasser said in an interview on the sidelines of a finance conference.

"We have been growing double digits and we will do our best to keep these double digits in the years to come.

"We have been averaging (profit growth) roughly in the twenties. If we reach 20 per cent this year, it will be fine," he said when asked about the outlook for 2015.

The bank, established in 2004, reported an 18.5 per cent jump in net profit in 2014 to SR864 million ($230.4 million).

However, its earnings in the first quarter only rose 0.2 per cent year on year as higher revenue was offset by increased costs.

For the bank sector as a whole, lending to the private sector grew 11.9 per cent in 2014 to SR1.204 trillion, according to central bank data, while the kingdom's government has said it will continue to allocate funds for infrastructure and other projects despite the fall in oil prices.

As well as its retail and corporate lending focus, the bank will seek to increase its sharia-compliant offerings from its investment banking arm Albilad Capital.

Its assets under management had grown to SR10 billion from SR2 billion three years ago, a growth rate which would moderate this year as it was no longer coming from a small base, according to Ayham Al-Yousef, Al Bilad Capital chief executive.

Among its current advisory work were two mergers and acquisitions inside Saudi, one in retail and the other in manufacturing, as well as separate mandates for sukuk issues from a utility and a manufacturing firm.

Asked if Bank Albilad was considering any sukuk sales, Jasser said it could issue in future but had no current plans. - Reuters