How Lending Momentum Boosted Saudi Banks’ Q1 Profit Growth
RIYADH — Saudi Arabia’s biggest lenders have kicked off 2026 with solid earnings, driven by steady loan growth and resilient operating income.
Saudi National Bank, the Kingdom’s largest lender, reported a net profit of SR6.42 billion ($1.71 billion) for the first quarter, up 6.66% from a year earlier. The bank credited higher operating income and a 19.4% drop in total expenses.
Riyad Bank followed with a 5.13% profit increase to SR2.61 billion, helped by strong trading income and lower credit loss provisions.
Al Rajhi Bank, the country’s largest Islamic lender, posted the strongest growth—a 14.32% jump to SR6.75 billion. The bank said net financing and investment income rose 18.4%.
According to S&P Global, lending momentum is expected to continue through 2026, fueled by demand tied to Vision 2030 projects, particularly in real estate, utilities, and retail. Fitch Ratings also noted that Gulf banks face limited short-term credit risk from the Iran war, thanks to strong financial buffers and government backing.
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