The Value Anchor | One Saudi Bank’s Q1 Corporate Lending Grew 8x Faster Than the Sector Overall — Al Rajhi Bank (1120) Up 24%
SNB 1180.SA | 0.00 | |
ALRAJHI 1120.SA | 0.00 | |
RIBL 1010.SA | 0.00 | |
BJAZ 1020.SA | 0.00 | |
ALBILAD 1140.SA | 0.00 |
Saudi Arabia's 10 listed banks collectively earned SAR 13.05 billion from their corporate banking businesses in the first quarter of 2026, up roughly 11% from SAR 11.71 billion a year earlier.
(The "corporate segment" refers to the part of each bank that lends to companies and large institutions — separate from retail customers and small businesses. It is typically one of the largest profit contributors for Saudi banks.)
The headline 11% looks strong on its own. But once the underlying figures are broken down, two different measures of profit moved at very different paces this quarter — and understanding the difference helps explain what actually drove the result.
Two profit metrics, two stories
When banks report their corporate-segment results, two related figures matter:
- Gross Operating Profit (GOP) — the income generated by the lending business before accounting for potentially bad loans. This is the closest measure of how much actual business activity took place during the quarter.
- Net Profit — what remains after the bank also accounts for credit risk: either setting aside money for loans that might default (called provisions), or releasing previously set-aside money back to profit (called a reversal).
In Q1 2026, the two figures moved quite differently:
| Q1 Snapshot (SAR mln) | Q1 2025 | Q1 2026 | Change |
|---|---|---|---|
| Gross Operating Profit | 15,414.9 | 15,885.7 | +3% |
| Credit Provisions / (Reversals) | 1,018.9 | (91.6) | — |
| Net Profit | 11,714.7 | 13,054.4 | +11% |
GOP rose 3%. Net profit rose 11%. The gap is explained by the line in the middle: a year ago, the sector added SAR 1.02 billion to its loan-loss reserves; this quarter, it released SAR 91.6 million back to profit instead.
The reversal was concentrated at one bank
Almost the entire sector-wide swing came from The Saudi National Bank(1180.SA) (SNB), which alone reversed more than SAR 1.08 billion in corporate-segment provisions during the quarter. Mechanically, this means SNB moved previously set-aside reserves back to its income statement, where they were recognized as profit for the quarter.
Operating income: six banks grew, four contracted
Setting aside the provisions movement and focusing only on core lending revenue, six of the 10 banks expanded their corporate operating income year-on-year, while four contracted.
Al Rajhi Bank(1120.SA) posted the strongest growth at +24%. Riyad Bank(1010.SA) followed at +15%, with Bank Aljazira(1020.SA) and Bank Albilad(1140.SA) each up 10%. Arab National Bank(1080.SA) added 8% and Alinma Bank(1150.SA) 3%.
On the other side, The Saudi Investment Bank(1030.SA) (SAIB) saw corporate operating income fall 14%, Banque Saudi Fransi(1050.SA) (BSF) declined 12%, The Saudi National Bank(1180.SA) dropped 9%, and Saudi Awwal Bank(1060.SA) (SAB) slipped 2%.
| Bank | Q1 2025 | Q1 2026 | YoY |
|---|---|---|---|
| The Saudi National Bank(1180.SA) | 4,258.7 | 3,886.4 | -9% |
| Riyad Bank(1010.SA) | 2,578.3 | 2,975.1 | +15% |
| Al Rajhi Bank(1120.SA) | 2,190.7 | 2,720.9 | +24% |
| Saudi Awwal Bank(1060.SA) | 1,980.9 | 1,941.1 | -2% |
| Banque Saudi Fransi(1050.SA) | 1,370.8 | 1,203.8 | -12% |
| Arab National Bank(1080.SA) | 1,054.0 | 1,139.4 | +8% |
| Alinma Bank(1150.SA) | 771.5 | 792.6 | +3% |
| Bank Albilad(1140.SA) | 449.0 | 492.9 | +10% |
| Bank Aljazira(1020.SA) | 333.2 | 367.2 | +10% |
| Saudi Investment Bank(1030.SA) | 427.7 | 366.3 | -14% |
| Total | 15,414.9 | 15,885.7 | +3% |
SNB still contributed roughly 24% of the sector's total corporate operating income — the largest single share among the 10 listed banks.
Net profit: where the reversal lifted the numbers
Once provisions are factored back in, seven of the 10 banks reported higher corporate-segment net profit year-on-year.
Riyad Bank delivered the largest absolute increase, adding SAR 544.2 million to its corporate net profit compared with a year earlier. SNB followed with a gain of SAR 406.5 million — a result that reflects its provision reversal alongside the rest of its corporate-segment activity. Al Rajhi Bank and Alinma Bank also posted higher corporate earnings.
Three banks moved in the opposite direction: SAIB declined 17%, SAB fell 11%, and BSF was down 8%.
| Bank | Q1 2025 | Q1 2026 | YoY |
|---|---|---|---|
| The Saudi National Bank(1180.SA) | 3,753.2 | 4,159.7 | +11% |
| Riyad Bank(1010.SA) | 1,897.7 | 2,441.9 | +29% |
| Al Rajhi Bank(1120.SA) | 1,765.3 | 2,119.5 | +20% |
| Saudi Awwal Bank(1060.SA) | 1,454.9 | 1,292.2 | -11% |
| Banque Saudi Fransi(1050.SA) | 924.0 | 853.8 | -8% |
| Arab National Bank(1080.SA) | 735.1 | 783.0 | +7% |
| Bank Albilad(1140.SA) | 370.7 | 557.9 | +51% |
| Alinma Bank(1150.SA) | 365.1 | 393.2 | +8% |
| Saudi Investment Bank(1030.SA) | 278.1 | 229.7 | -17% |
| Bank Aljazira(1020.SA) | 170.4 | 223.5 | +31% |
| Total | 11,714.7 | 13,054.4 | +11% |
Three banks own two-thirds of the profit pool
Corporate-segment profit remains highly concentrated among the largest banks. SNB alone delivered 32% of the sector's Q1 2026 corporate net earnings. Riyad Bank contributed 19% and Al Rajhi Bank 16% — meaning the top three banks together accounted for roughly two-thirds of the entire corporate-segment profit pool.
Reading the quarter
Two metrics tell complementary stories this quarter. Headline net profit rose 11%, reflecting both modest operating income growth and a release of previously booked credit provisions — the latter driven largely by SNB. Gross operating profit, which strips out provision effects, grew 3%. Investors looking at underlying lending momentum may find the GOP figure more directly comparable across quarters.
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