How Saudi Banks Reached $6.4bn in Record Quarterly Profits
RIYADH — Saudi Arabia’s banking sector started 2026 with its strongest first quarter on record, posting a combined net profit of $6.4 billion (SR23.95 billion) across ten listed lenders, up 7.6% from a year earlier.
Al Rajhi Bank led the pack with a 14.3% profit jump to SR6.75 billion, driven by higher financing and investment income. Saudi National Bank followed with SR6.42 billion, up 6.66%, while Riyad Bank posted SR2.61 billion, a 5.1% increase.
Analysts attribute the record performance to four key factors: elevated interest rates supporting margins, strong mortgage and corporate lending tied to Vision 2030 mega‑projects, improving asset quality with lower provisions, and robust government spending.
Economic analyst Mohamed Hamdy Omar noted that banks are benefiting from diversified revenue streams, including digital services and asset management fees, along with cost discipline. He expects the momentum to continue through 2026, supported by financing demand and capital expenditure, though potential rate cuts could gradually pressure margins.
The sector earned over SR95 billion in all of 2025, and profits could top SR100 billion this year.
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