Saudi banks continued to deliver solid financial results during the first half of 2026. Saudi banks showed resilience despite slower credit expansion across the Kingdom. Strong financing income and stable banking activity helped support earnings during the period.
Saudi National Bank and Alrajhi Bank both announced higher profits for the first six months of the year. Their latest results demonstrate the strength of the country’s banking sector despite changing market conditions.
Saudi National Bank reported a net profit of SAR12.2 billion during the first half of 2026. The result represented a slight increase compared with the same period last year. The bank remained the largest lender in Saudi Arabia by total assets.
Meanwhile, Alrajhi Bank posted net profits of SAR13.6 billion during the same period. Earnings increased by 13 percent compared with a year earlier. This performance marked the first time Alrajhi reported higher half-year profits than Saudi National Bank.
The bank credited its stronger performance to higher income from financing and investments. In addition, banking service fees and foreign exchange income supported overall earnings growth. These revenue sources helped offset slower lending activity across the market.
Although loan growth has moderated, financial institutions continue adapting to changing economic conditions. Analysts believe the banking sector remains well positioned for sustainable profitability.
Recent market trends indicate slower credit expansion across Saudi Arabia. Industry observers link part of this slowdown to reduced spending activity from major investment programs. Even so, banks continue maintaining healthy financial performance.
Lower funding costs have also improved profitability for many lenders. As financing expenses ease, banks gain additional flexibility to strengthen earnings. This trend has helped offset weaker loan growth during recent months.
Saudi banks continue benefiting from diversified income sources. Financing activities remain important, while investment income and banking services also contribute meaningful revenue. These balanced operations strengthen long-term financial stability.
Saudi National Bank currently manages assets valued at approximately $332 billion. This position keeps the lender at the top of the Saudi banking sector by asset size.
Alrajhi Bank also continues expanding its financial position. The bank now holds assets worth approximately $281 billion, reinforcing its status as one of the Kingdom’s leading financial institutions.
Investors have also responded positively to the sector’s stable performance. Since the beginning of the year, Saudi National Bank shares have recorded modest gains. Alrajhi Bank shares have also moved slightly higher during the same period.
Market analysts expect banking profitability to remain healthy throughout the rest of 2026. While lending growth may continue slowing, stronger operational efficiency and diversified revenue streams should support future earnings.
Banks also continue investing in digital services and customer experience improvements. These initiatives help strengthen competitiveness while creating additional opportunities for revenue growth.
Economic diversification efforts across Saudi Arabia continue supporting demand for financial services. Businesses and consumers still require banking products despite a more measured pace of borrowing.
Overall, Saudi banks have demonstrated resilience during a changing economic environment. Higher profits, strong balance sheets, and diversified income sources continue supporting confidence across the Kingdom’s banking sector. As market conditions evolve, leading lenders appear well prepared to maintain stable financial performance through the remainder of the year.
