Saudi Banks’ Q2 Profit Rises 12.5% to $6.63 Bn

Saudi Arabia's banking sector continues its robust performance, with the 10 publicly listed banks achieving a combined net profit of $6.63 billion in the second quarter of 2026. This figure represents a significant 12.5% year-on-year increase, amounting to an additional $738 million compared to the same period in 2025.

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Saudi banks delivered record results and a strong performance in the second quarter, supported by domestic economic activity.

The impressive results were fueled by a combination of factors, including increased financing and investment income and enhanced operating revenues across the sector. Al Rajhi Bank once again led the pack as the most profitable lender, reporting a net profit of 7.01 billion riyals, a 14% rise from the previous year. Its performance was bolstered by a 13.3% growth in total operating income, driven by expansions in net financing and investment income, banking service fees, and foreign exchange income.

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The results reflected the strength of the local economy despite the geopolitical crisis in the region, continued growth in financing and credit, improved operating efficiency and stronger asset quality.

Saudi National Bank secured the second position with a net profit of 6.61 billion riyals, up 7.64% from Q2 2025. The bank cited an 11.3% increase in total operating income, primarily due to higher net financing and investment income and stronger net foreign exchange income, as key drivers for its growth. Riyad Bank followed in third place, posting a profit of nearly 2.65 billion riyals, a modest 2.02% increase, attributed to higher net income, total operating income, net special commission income, and dividend income.

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The main drivers included continued growth in retail and corporate financing portfolios, supported by Vision 2030 projects, and higher special commission income as interest rates remained at levels that supported profit margins.

Financial and economic experts attribute the strong performance to sustained domestic economic activity, despite regional geopolitical challenges. Factors such as continued growth in retail and corporate financing, supported by Vision 2030 projects, and favorable interest rates contributing to profit margins, played a crucial role. Banks also benefited from rising non-financing revenues, including fees, banking services, and wealth management. Furthermore, a relative decline in the cost of risk, improving credit portfolio quality, stable default rates, and strong capital positions have enhanced the banks' capacity for sustainable growth.

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Banks also benefited from rising non-financing revenue, particularly from fees, banking services and wealth management.