On 2026-07-21 08:02:28 (Saudi Time), Al Rajhi Bank announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, Al Rajhi Bank's total operations profit increased 13.88% YoY to SAR 21,413 million, driven by a 16% rise in net financing and investment income stemming from higher gross financing and investment income, alongside growth in fees from banking services and exchange income, partially offset by a decline in other operating income. Net profit attributable to shareholders grew 14.157% YoY to SAR 13,764 million, supported by the strong operating income expansion. However, total operating expenses (including impairment charges) rose 18.8% YoY due to higher general and administrative expenses and salaries and employee-related benefits, while depreciation expense declined, and the net provision for expected credit losses increased 34.4% YoY from SAR 1,125 million to SAR 1,512 million, driven by a 27.5% rise in gross charge coupled with a 21.4% increase in recoveries from written-off financing.

Quarter-on-Quarter Performance Drivers

QoQ net profit attributable to shareholders rose 3.85% to SAR 7,012 million, driven by a 3.4% increase in total operating income, supported by growth in other operating income, fees from banking services, and exchange income net, partially offset by a decline in financing and investment income. Operating expenses including impairment charges increased 6.1% QoQ, with higher general and administrative expenses, while salaries and depreciation declined. The impairment charge for financing rose sharply by 39.7% from SAR 631 million to SAR 881 million, with gross charge up 31.7% and recoveries from written-off financing up 24.5% compared to the previous quarter.

Other Items

Al Rajhi Bank's external auditor issued an unmodified conclusion on the interim financial results for the six months ended June 30, 2026, with no additional comments noted in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. No accumulated losses were reported. Total assets stood at SAR 1,054,772 million, up 1.826% from SAR 1,035,852 million in the same period of the prior year, while total shareholders' equity (after deducting minority equity) grew 13.803% to SAR 1,54,17 million from SAR 133,930 million. The loans and advances portfolio reached SAR 762,096 million, up 2.747% YoY, and client deposits increased 3.561% to SAR 688,359 million. Investments declined 3.554% to SAR 174,999 million. Earnings per share for the current period were SAR 2.17, compared to SAR 1.91 in the same period of the prior year. Some comparative items have been reclassified.

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