Saudi Arabia’s major banks report stronger first-half profits on lending growth

Saudi Arabia’s largest banks reported higher profits for the first half of 2026, supported by strong lending growth, resilient operating income and improved liquidity as economic diversification continues to drive demand for financing.

Saudi National Bank, the Kingdom’s largest lender, recorded net profit of SR13.02 billion ($3.47 billion), a 7.15% increase from the same period last year.

Al Rajhi Bank posted the highest profit among the major Saudi lenders, with net income rising 14.15% year on year to SR13.76 billion. Riyad Bank reported a 3.54% increase in first-half profit to SR5.26 billion, while Alinma Bank’s net profit climbed 6.24% to SR3.27 billion.

The results come as Saudi banks benefit from continued credit demand linked to housing, infrastructure, tourism and corporate investment projects connected to the Kingdom’s economic diversification programme.

Data from the Saudi Central Bank showed that total bank credit to the private sector reached a record SR3.2 trillion in May, up 16.2% from a year earlier.

Tony Hallside, chief executive of STP Partners, said the sector’s performance reflected strong credit demand, improving liquidity, disciplined risk management and continued investment in digital banking.

Bank Albilad also reported a 7% increase in first-half net profit to SR1.53 billion, while Arab National Bank posted net income of SR2.8 billion, up 5% year on year.

Banks benefited from higher net financing and investment income, stronger investment gains, banking service fees and foreign exchange earnings.

SNB said total operating income increased 5.8% to SR20.2 billion. Net special commission income rose 7.4%, investment gains increased 3%, banking service fees climbed 2.9% and net exchange income jumped 20.8%.

Al Rajhi Bank reported a 13.9% rise in total operating income, supported by financing and investment income, banking fees and foreign exchange earnings.

Riyad Bank’s performance was helped by higher net trading income, special commission income and dividend income, while Alinma Bank recorded a 6.6% increase in total operating income.

Kapil Chadda, a partner at Arthur D. Little, said stronger liquidity buffers had helped banks manage their balance sheets after a period of rapid growth.

The banks also announced dividend payments. SNB approved an 11.5% cash dividend, or SR1.15 per share, for the first half. Riyad Bank approved SR0.64 per share, while Alinma Bank announced a dividend of SR0.25 per share for the second quarter.

Analysts said continued investment in infrastructure, tourism, housing and private-sector development could support further growth across Saudi Arabia’s banking sector.