22/04/2026 05:39 AST
Saudi Arabia's biggest lenders, including Saudi National Bank, Riyad Bank, and Al Rajhi Bank, reported solid first-quarter earnings, supported by steady lending growth and resilient operating income.
SNB, the Kingdom's largest lender, posted a net profit of SR6.42 billion ($1.71 billion) for the three months ending March 31, up 6.66 percent from a year earlier, according to a Tadawul filing.
The bank attributed this rise in profit to higher total operating income along with lower total operating expenses.
This comes as Fitch Ratings said in March that financial institutions in the Gulf Cooperation Council region face limited short-term credit risk from the Iran war, supported by strong financial buffers and sovereign backing.
In a Tadawul statement, SNB stated: "Total operating income increased by 0.4 percent reaching SR9.7 billion, in addition to a drop in the total operating expenses by 19.4 percent, driven by lower rent and premises-related expenses by 11 percent."
In the first quarter of 2026, the bank's total income from special commission of financing stood at SR11.37 billion, marking a year-on-year rise of 4.38 percent.
On a quarterly basis, SNB's net profit edged up by 0.6 percent, from SR6.38 billion in the final three months of 2025.
Riyad Bank reported a net profit of SR2.61 billion in the first quarter of 2026, marking an increase of 5.13 percent compared to the same period in the previous year.
The increase in profit was driven by higher operating income, which was supported by strong growth in trading income and net special commission income, even as other revenue streams experienced declines, the financial institution said in a filing.
Expenses decreased due to lower credit loss provisions and reduced operating costs, with net expected credit losses dropping by 23.94 percent. This was partially offset by higher investment impairments and increased staff expenses.
In the first quarter, Riyad Bank's total income from special commission of financing stood at SR5.99 billion, marking a year-on-year increase of 5.93 percent.
Al Rajhi Bank, the Kingdom's largest Islamic lender, posted the strongest growth among peers, with net profit rising 14.32 percent to SR6.75 billion.
In a Tadawul statement, the bank attributed the rise in net profit to an 18.4 percent increase in net financing and investment income, driven by higher overall returns on financing and investment.
The statement added that total operating income rose by 14.4 percent, driven by higher financing and investment income, banking service fees, and foreign exchange income, along with a reduction in depreciation expenses.
The robust performance of Saudi banks is in line with a January report by S&P Global, which projected continued strong lending growth in 2026, supported by financing demand tied to Vision 2030 projects.
The rating agency added that the steady momentum in lending among banks in the Kingdom will be fueled by high investments primarily in the Kingdom's real estate and utilities sectors, as well as the retail sector.
Arab News
Please wait...
