Saudi Banking Giants Al Rajhi (1120) and SNB (1180) Post Soaring Q2 Profits, 'Comfortably' Beating Forecasts

-2.05%

-0.80%

ALRAJHI

1120.SA

95.60

-2.05%

SNB

1180.SA

37.20

-0.80%

Riyadh, Saudi Arabia – July 21, 2025 – Saudi Arabia's two largest lenders, Al Rajhi Bank(1120.SA) and The Saudi National Bank(1180.SA) (SNB), both reported significant double-digit growth in their second-quarter net profits, comfortably surpassing analyst expectations. The strong results, driven by higher operating income, sent shares of both banks up nearly 2% in early trading on the Saudi Exchange today.

Al Rajhi Bank announced a remarkable 31% year-on-year increase in its Q2 net profit, which reached SAR 6.15 billion ($1.64 billion). According to a report from Zawya citing LSEG data, this performance easily beat the analysts' mean estimate of SAR 5.69 billion.

In its official disclosure, the world's largest Islamic bank attributed the robust performance to a 25.7% rise in total operating income. This was primarily fueled by a 24.7% increase in net financing and investment income. However, the bank also increased its provisions for expected credit losses by 31.9% year-on-year to SAR 600 million. For the first half of 2025, Al Rajhi's net profit climbed 32.45% to SAR 12.06 billion.

Meanwhile, Saudi National Bank (SNB), the kingdom's biggest lender by assets, also posted strong results. As reported by Reuters, SNB announced a 17.3% jump in its second-quarter net profit to SAR 6.13 billion ($1.63 billion), also exceeding the SAR 5.6 billion riyals forecasted by analysts.

SNB's results were driven by a 6.6% increase in total operating income. A key factor in its profit growth was a significant decrease in impairment charges for expected credit losses. The bank's filing noted that these charges decreased by 243.6% compared to the same quarter last year, citing "strong credit quality and higher recoveries." For the first half of the year, SNB's net profit grew by 18.4% to SAR 12.16 billion.

In a separate bourse filing, SNB's board also announced a cash dividend for the first half of 2025. The bank will distribute a total of SAR 6 billion, corresponding to SAR 1.00 per share for its 6 billion eligible shares.

Al Rajhi Bank Financial Data

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Total Income From Special Commission of Financing	11,274	9,476	18.974	10,931	3.137
Total Income From Special Commission of Investment	2,373	1,762	34.676	2,240	5.937
Net Income From Special Commission of Financing	6,322	5,190	21.811	6,196	2.033
Net Income From Special Commission of Investment	983	667	47.376	901	9.1
Total Operations Profit (Loss)	9,603	7,637	25.743	9,200	4.38
Net Profit (Loss) before Zakat and Income Tax	6,860	5,226	31.266	6,587	4.144
Net Profit/(Loss)	6,151	4,698	30.928	5,906	4.148
Total Comprehensive Income	6,238	4,609	35.343	5,819	7.2
Total Operating Expenses Before Provisions for Credit and Other Losses	2,143	1,956	9.56	2,088	2.634
Total Provision of Expected Credit Losses And Other Losses (Reversing Entry), Net	600	455	31.868	525	14.285
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Income From Special Commission of Financing	22,205	18,688	18.819
Total Income From Special Commission of Investment	4,613	3,352	37.619
Net Income From Special Commission of Financing	12,518	10,249	22.138
Net Income From Special Commission of Investment	1,884	1,255	50.119
Total Operations Profit (Loss)	18,803	14,866	26.483
Net Profit (Loss) before Zakat and Income Tax	13,447	10,140	32.613
Net profit (Loss)	12,057	9,103	32.45
Total Comprehensive Income	12,057	8,668	39.097
Assets	1,038,988	866,960	19.842
Investments	181,449	153,026	18.573
Loans And Advances Portfolio (Financing And Investment)	741,715	621,891	19.267
Clients' deposits	641,987	622,572	3.118
Total Shareholders Equity (after Deducting Minority Equity)	133,930	116,396	15.064
Total Operating Expenses Before Provisions for Credit and Other Losses	4,231	3,850	9.896
Total Provision of Expected Credit Losses And Other Losses (Reversing Entry), Net	1,125	876	28.424
Profit (Loss) per Share	2.86	2.16
All figures are in (Millions) Saudi Arabia, Riyals

The Saudi National Bank Financial Data

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Total Income From Special Commission of Financing	11,573	11,130	3.98	10,899	6.184
Total Income From Special Commission of Investment	3,588	3,250	10.4	3,424	4.789
Net Income From Special Commission of Financing	6,734	6,902	-2.434	6,600	2.03
Net Income From Special Commission of Investment	353	150	135.333	654	-46.024
Total Operations Profit (Loss)	9,507	8,916	6.628	9,615	-1.123
Net Profit (Loss) before Zakat and Income Tax	6,865	5,729	19.828	6,719	2.172
Net Profit/(Loss)	6,137	5,231	17.319	6,022	1.909
Total Comprehensive Income	6,313	4,949	27.561	6,730	-6.196
Total Operating Expenses Before Provisions for Credit and Other Losses	2,765	2,748	0.618	2,727	1.393
Total Provision of Expected Credit Losses And Other Losses (Reversing Entry), Net	-173	120	-	34	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Income From Special Commission of Financing	22,472	21,751	3.314
Total Income From Special Commission of Investment	7,012	6,182	13.426
Net Income From Special Commission of Financing	13,334	13,525	-1.412
Net Income From Special Commission of Investment	1,007	439	129.384
Total Operations Profit (Loss)	19,122	17,856	7.09
Net Profit (Loss) before Zakat and Income Tax	13,584	11,426	18.886
Net profit (Loss)	12,159	10,270	18.393
Total Comprehensive Income	13,044	8,672	50.415
Assets	1,200,998	1,088,112	10.374
Investments	315,460	286,735	10.017
Loans And Advances Portfolio (Financing And Investment)	714,839	637,235	12.178
Clients' deposits	658,675	632,693	4.106
Total Shareholders Equity (after Deducting Minority Equity)	197,278	179,202	10.086
Total Operating Expenses Before Provisions for Credit and Other Losses	5,491	5,410	1.497
Total Provision of Expected Credit Losses And Other Losses (Reversing Entry), Net	-139	775	-
Profit (Loss) per Share	1.95	1.66
All figures are in (Millions) Saudi Arabia, Riyals

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