On 2026-07-21 15:37:40 (Saudi Time), Aljazira 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 ended 30 June 2026, Aljazira Bank's total operating income rose 8.578% YoY to SAR 2,368.2 million (vs. SAR 2,181.1 million), driven by higher net financing and investment income — supported by growth in financing, investments, and Shariah-compliant derivatives — as well as increased net gains on FVIS financial instruments and dividend income, partially offset by lower net fees from banking services and net exchange income. Net profit attributable to shareholders increased 14.103% YoY to SAR 847.9 million (vs. SAR 743.1 million), supported by the 8.578% rise in operating income and a 14.357% decline in net expected credit loss provisions to SAR 171.2 million (vs. SAR 199.9 million) due to lower provisioning requirements for commercial financing. These gains were partially offset by a 7.571% increase in total operating expenses to SAR 1,226.1 million (vs. SAR 1,139.8 million), driven by higher salaries and employee-related expenses, depreciation and amortisation, and rent and premises-related expenses, as well as a higher zakat charge during the period.

Quarter-on-Quarter Performance Drivers

QoQ, Aljazira Bank's net profit attributable to shareholders rose 9.333% to SAR 442.8 million (vs. SAR 405.0 million in the prior quarter), driven by a 5.528% increase in total operating income to SAR 1,215.9 million, primarily from higher net gains on FVIS financial instruments, net financing and investment income, and dividend income, partially offset by a decline in net fees from banking services. Total operating expenses rose 1.727% to SAR 618.3 million, reflecting increases in general and administrative expenses, salaries, and rent, while net impairment charges surged 30.107% to SAR 96.8 million due to higher provisioning requirements for commercial financing. The net profit improvement was further supported by a lower zakat charge during the quarter.

Other Items

Aljazira Bank's external auditor issued an Unmodified Conclusion with no additional comments, qualifications, or adverse opinions noted. No material risks such as going concern uncertainties or debt covenant breaches were flagged. For the six-month period ended 30 June 2026, total assets stood at SAR 181,184 million, up 14.829% from SAR 157,785 million a year earlier, while the loans and advances portfolio grew 16.643% to SAR 120,962 million and client deposits increased 16.278% to SAR 132,738 million. Investments reached SAR 40,964 million, up 8.964% YoY. Total shareholders' equity (excluding minority interest) rose 21.218% to SAR 23,400 million, which includes SAR 8.2 billion in Tier 1 Sukuk issued by the bank. Earnings per share for the current period were SAR 0.51 (vs. SAR 0.5 for the same period last year), calculated based on a weighted average of 1,276.21 million shares. Comparative period figures for investments, cash and balances with SAMA, other assets, and other reserves as of 30 June 2025 have been restated, and certain items have been reclassified to conform to current period presentation.

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