On 2026-07-21 08:49:00 (Saudi Time), Saudi Awwal 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, Saudi Awwal Bank's total operations profit (income) declined marginally by 0.899% YoY to SAR 7,275 million (from SAR 7,341 million), primarily due to a decrease in net fee and commission income, lower exchange income from reduced foreign exchange trade volumes, and lower other operating income, partially offset by a 1% increase in net special commission income driven by growth in average loan portfolio balances. Net profit attributable to shareholders rose 3.636% YoY to SAR 4,417 million (from SAR 4,262 million), mainly driven by a significant SAR 186 million (51.955%) decrease in net provisions for expected credit losses — attributable to high recoveries and lower off-balance-sheet charges — and a lower income tax charge due to refunds on qualifying government sukuk and bond investments, partially offset by a 3.076% increase in operating expenses reflecting higher depreciation and amortization from software capitalization and a marginal rise in staff costs, as well as a decline in the share of earnings from an associate due to fewer transactions and lower equity capital market and securities services activities.

Quarter-on-Quarter Performance Drivers

QoQ net profit attributable to shareholders rose 11.744% to SAR 2,331 million, primarily driven by a sharp decline in net provision for expected credit losses (down SAR 161 million or 97%, to SAR 5 million) due to lower impairment charges for loans and advances and impairment reversals on off-balance-sheet exposures, alongside a lower income tax charge from refunds on qualifying government sukuk and bond investments. Total operating income also improved (+1.411% QoQ to SAR 3,663 million), supported by higher net fee and commission income, net special commission income, and FVSI income, though partially offset by lower FVOCI debt instrument income. Operating expenses were marginally higher (+0.817% QoQ to SAR 1,110 million) due to increased depreciation and amortization from software capitalization, while a decrease in the share of earnings of an associate — reflecting fewer transactions and lower equity capital market activity — partially weighed on results.

Other Items

Saudi Awwal Bank's external auditor issued an unmodified conclusion with no additional comments in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. No material risks such as going concern uncertainties or debt covenant breaches were flagged. For the six-month period, total assets grew 9.447% YoY to SAR 474,474 million, while the loans and advances portfolio expanded 13.305% YoY to SAR 320,207 million. Client deposits increased 15.203% YoY to SAR 342,157 million, and total shareholders' equity (after deducting minority equity) rose 6.895% YoY to SAR 80,878 million. Earnings per share for the six-month period stood at SAR 1.96 (versus SAR 1.95 in the prior year period), calculated based on 2,055 million weighted average shares outstanding after adjusting net income for Tier 1 Sukuk costs. Total comprehensive income attributable to shareholders declined 28.219% YoY to SAR 4,169 million (from SAR 5,808 million). Certain prior period figures were reclassified to align with current period presentation, including a reclassification of approximately SAR 80.2 million from fee income to special commission relating to management fees; additionally, the bank restated previous period balances following a restatement during the year ended 2025 relating to Investments, Retained Earnings, and Other Reserves in the interim condensed consolidated financial statements.

Original announcement:

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.