Al Rajhi Bank profit climbs 11.7% to over 7 billion riyals

Summary

• Al Rajhi Bank posted third-quarter 2026 net profit above 7 billion riyals, up 11.7% year-on-year.
• Nine-month profit reached about 21 billion riyals, a 13.3% rise driven by financing and investment income.
• Credit-loss provisions jumped 49.5% in the quarter, rising faster than revenue across the period.

The latest

Net profit at Al Rajhi Bank, listed on Saudi Arabia's Tadawul exchange, exceeded 7 billion riyals in the third quarter of 2026, up 11.7% from 6.3 billion riyals a year earlier. The bank attributed the increase to a 12.5% rise in total operating income, led by net financing and investment income and banking service fees. Provisions for expected credit losses rose far faster than revenue.

Details

• The headline number: Third-quarter net profit came in above 7 billion riyals against 6.3 billion riyals in the same period of 2025, an increase of 11.7%, according to the bank's disclosure to the Saudi market. The figure places the quarter among the strongest reported by the lender this year.
• Revenue drivers: Total operating income rose 12.5% year-on-year to 11.12 billion riyals in the quarter. The bank said the gain was driven mainly by higher net financing and investment income alongside banking service fees, partly offset by a decline in other operating income and foreign-currency conversion.
• Financing income: Net special commission income from financing climbed 20.3% year-on-year to 7.66 billion riyals, the fastest-growing line in the quarterly results and the single largest contributor to the revenue increase reported by the bank.
• Investment income: Net special commission income from investments rose a more modest 3.2% to 955 million riyals, a sharply slower pace than the financing book and a fraction of its size in absolute terms.
• Provisions surge: Net provisions for expected credit losses and other losses rose 49.5% year-on-year to 852 million riyals in the quarter, compared with 570 million riyals a year earlier. The bank did not break down which portfolios drove the increase.
• Nine-month performance: For the first nine months of 2026, net profit rose 13.3% to about 21 billion riyals from 18.4 billion riyals a year earlier, supported by a 13.4% increase in total operating income to 32.53 billion riyals.
• Nine-month provisions: Over the same nine months, net provisions for expected credit losses and other losses rose 39.5% year-on-year to 2.36 billion riyals, up from 1.7 billion riyals in the corresponding period of 2025.
• Balance sheet: Total assets grew 1.8% by the end of September 2026 to 1.08 trillion riyals, from 1.06 trillion riyals a year earlier. The financing and investment portfolio rose 2.5% to 774.86 billion riyals.
• Deposits: Customer deposits increased 0.9% year-on-year to 700.28 billion riyals, the slowest growth among the bank's main balance-sheet lines and well below the pace of its financing portfolio.

Between the lines

The two sets of figures move at different speeds. Operating income is growing in the low teens, while provisions for expected credit losses are up 49.5% in the quarter and 39.5% over nine months. Deposit growth of 0.9% also trails the 2.5% expansion in the financing and investment book, a gap worth tracking in later quarters.

What's next

Watch the bank's full-year 2026 results and any board recommendation on dividends, along with whether the pace of credit-loss provisioning seen in the third quarter carries into the fourth.

Source: ⁦ontime+⁩