SNB and Alrajhi profits increase as lending grows

Two of Saudi Arabia’s largest listed banks reported higher profits in the first quarter of 2026, driven by increased lending despite the regional conflict.

Saudi National Bank, the country’s largest by assets, said net profit grew 7 percent annually to SAR6.4 billion ($1.7 billion) in the first quarter of 2026. 

Total operating income increased 0.4 percent year on year to SAR 9.7 billion, while the total operating expenses fell more than 19 percent.

Net earnings of Alrajhi, the kingdom’s second-largest lender and the biggest Islamic bank in the world, surged 14 percent to SAR6.8 billion in the quarter ended March 2026, compared to SAR 5.9 billion a year ago.

Total operating income rose more than 14 percent due to higher net financing and investment income, banking services fees and exchange income. However, total operating expenses, including impairment charges for financing, increased by over 18 percent.

SNB and Alrajhi’s assets rose 5 percent and 3 percent, respectively, to SAR1.2 trillion and SAR1.1 trillion.

Loans and advances for SNB and Alrajhi were up 4 percent each, while client deposits increased 6 percent and 3 percent, respectively.

The financial statements, released on the Saudi stock exchange on Tuesday, did not mention any impact from the Iran war.

Last week Fitch Ratings warned that Saudi Arabian banks’ asset quality, profitability and funding could come under pressure if the Iran war endures.

• Saudi banks vulnerable to fallout of prolonged war
• SNB and Alrajhi profits soar as Saudi companies borrow more
• Record profits for two of Saudi’s biggest banks

The rating agency, which covers 11 Saudi banks, describes an “adverse scenario” in which a protracted Iran war, weaker economic growth and muted business activity would cause banks to expand lending more slowly and for non-interest income to decline.

SNB shares closed 4 percent lower at SAR41.70 on Monday, up 10 percent year to date. Alrajhi’s shares finished 1.2 percent down at SAR107.10 but are up 11 percent so far this year.