RIYADH: Saudi lenders Bank Albilad and Arab National Bank reported higher second-quarter profits as stronger financing income and operating revenue boosted earnings, latest bourse filings showed.
Bank Albilad posted a 3.4 percent year-on-year increase in second-quarter net profit attributable to shareholders to SR791.6 million ($210.6 million), while Arab National Bank reported a 6.5 percent rise to SR1.42 billion, according to interim financial statements for the period ended June 30.
The earnings come as Saudi banks continue to benefit from solid credit demand despite expectations of moderating profitability across the Gulf.
Earlier this month, S&P Global Ratings said it expects Gulf Cooperation Council banks’ profitability to edge lower in 2026 and 2027 because of higher credit costs and slower loan growth, although stable interest rates and stronger efficiency are expected to provide support.
In a bourse filing, Bank Albilad said: “Net income has increased due to the increase in total operating income by 5 percent, which is mainly due to the increase in net income from investing and financing assets, other operating income, and net gain on fair value through statement of income instruments.”
At Bank Albilad, total operating profit increased 4.7 percent to SR1.61 billion, supported by an 8.5 percent rise in net income from special commission financing to SR911.2 million. For the first half of the year, the lender’s net profit attributable to shareholders climbed 4.2 percent to SR1.53 billion.
Assets rose 15.2 percent to SR186.48 billion, financing assets increased 15.3 percent to SR133.42 billion, and clients’ deposits climbed 18.8 percent to SR147.19 billion.
Bank Albilad also reported higher costs. Total operating expenses before provisions rose 5.7 percent in the second quarter to SR674.8 million, while net provisions for expected credit losses and other losses increased 14.3 percent year on year to SR55.8 million.
Arab National Bank
Arab National Bank’s total operating profit increased 6.5 percent to SR2.74 billion, while net income from special commission financing grew 8.3 percent to SR1.72 billion.
For the first half, the lender’s net profit attributable to shareholders increased 5.4 percent to SR2.78 billion from SR2.64 billion a year earlier. Assets rose 9.6 percent to SR295.52 billion, investments grew 17.7 percent to SR64.70 billion, and loans and advances increased 10.4 percent to SR205.78 billion.
Net provisions for expected credit losses and other losses declined 25.4 percent in the first half to SR315 million, primarily due to improved portfolio credit quality, resilient asset quality and the bank’s provisioning approach. Shareholders’ equity increased 20.3 percent to SR52.44 billion.
