| The research investigates the role of asset utilization and labor productivity in the financial performance of Saudi banks, mainly in the case of large bank mergers within the Vision 2030 framework. It analyzes the financial performance, based on the size of the bank, using the panel regression model. The data, collected from the major banks covering 2016 to 2024, showcase direct effects, interactions, and moderation aspects. According to the finding of the study, higher staff productivity, measured in terms of profit per employee, leads to a significant increase in profitability, particularly in the case of ROA, ROE, and NPM. Moreover, the positive effect of labor efficiency is further intensified by sound asset management practices. The interaction model has proved the relationship between labor efficiency and asset utilization that results in overall profitability. Also, the moderation analysis shows that the beneficial effect of worker productivity becomes less intense as the bank size increases because larger banks usually have lower profitability ratios. The conclusion drawn from this research could be of great help to the bank management, the legislators, and the regulators, involved in the integration of fiscal policy and the performance of the financial sector, under the Vision 2030 economic framework. |