Saudi Arabia’s three largest lenders delivered a strong start to 2026, with first-quarter earnings rising sharply across the board and underlining the resilience of the Kingdom’s banking sector. Saudi National Bank, Al Rajhi Bank, and Riyad Bank all recorded notable year-on-year profit growth, supported by steady lending expansion and operating efficiency gains that analysts attribute in large part to the financing demands created by Vision 2030 projects.
Al Rajhi Leads the Pack with 14% Profit Jump
Al Rajhi Bank, the Kingdom’s largest Islamic lender, posted the most impressive result among the group. Net profit for the first quarter reached SR6.75 billion, marking a year-on-year increase of 14.32 percent. The bank credited an 18.4 percent rise in net financing and investment income as the primary driver, alongside a 14.4 percent increase in total operating income buoyed by stronger banking service fees and foreign exchange earnings. A simultaneous reduction in depreciation expenses further contributed to the bottom-line improvement.
Saudi National Bank, the Kingdom’s largest lender overall, reported first-quarter net profit of SR6.42 billion, up 6.66 percent from the same period a year ago. Total operating income grew by 0.4 percent to SR9.7 billion, while total operating expenses fell by 19.4 percent, driven by lower rent and premises-related costs. Income from special commission financing stood at SR11.37 billion for the quarter, a year-on-year rise of 4.38 percent.
Riyad Bank Posts Steady Growth on Trading and Commission Income
Riyad Bank recorded a net profit of SR2.61 billion in the first three months of 2026, up 5.13 percent compared to the corresponding quarter last year. The bank pointed to strong growth in trading income and net special commission income as the main contributors to the higher result, even as some secondary revenue lines softened. On the cost side, net expected credit losses fell by 23.94 percent, partially offset by higher staff expenses. Total income from special commission financing reached SR5.99 billion, a 5.93 percent year-on-year increase.
Vision 2030 Investment Pipeline Fuels Lending Momentum
The solid first-quarter showing is broadly in line with projections issued by S&P Global in January, which forecast sustained strong lending growth throughout 2026. The ratings agency highlighted financing demand tied to Vision 2030 construction and infrastructure projects — particularly in the real estate, utilities, and retail sectors — as the structural engine behind Saudi banks’ continued earnings expansion.
Fitch Ratings echoed that confidence in a March report, stating that financial institutions across the Gulf Cooperation Council face limited short-term credit risk, thanks to strong capital buffers and robust sovereign backing. That assessment has helped Saudi lenders maintain investor confidence even as broader global financial conditions remain uncertain. For Saudi Arabia’s banking sector, the first quarter of 2026 marks yet another chapter in a run of earnings momentum that shows few signs of slowing.
