Saudi banks reported stronger third-quarter earnings, with six major lenders combining for SR19.83 billion in net profit. Their total earnings rose 5.3 percent year on year, equivalent to approximately $5.29 billion. The results highlight continued growth across the sector, although individual banks faced different cost pressures and lending conditions.
Higher financing income helped support the banks’ performance, even as some lenders dealt with rising expenses and credit provisions. Four institutions recorded annual profit growth, including Al Rajhi Bank, Bank AlJazira, Riyad Bank, and Arab National Bank. Meanwhile, Saudi National Bank and Alinma Bank reported slight declines in quarterly earnings.
The results emerged amid regional geopolitical tensions that have tested financial institutions across the Gulf. Nevertheless, the latest figures suggest that Saudi banks maintained overall profitability during the period. Their combined nine-month net profit also climbed 7.7 percent to SR58.79 billion.
Al Rajhi Bank recorded the highest quarterly profit among the six lenders, earning SR7.11 billion. This represented an 11.7 percent increase compared with the same period last year. Operating income rose 12.5 percent, supported by stronger financing and investment income alongside higher banking fees.
Saudi National Bank, commonly known as SNB, reported quarterly net profit of SR6.45 billion. Although operating income increased 2.2 percent to SR10.37 billion, profit slipped 0.3 percent annually. The bank attributed the decline mainly to higher operating expenses and increased charges for expected credit losses.
SNB’s expenses before provisions grew 9 percent, reflecting higher staff, administrative, and depreciation costs. Additionally, credit loss provisions reached SR323 million, compared with SR231 million a year earlier. Financial analyst Ahmed Chreim noted that investors should assess provisions alongside lending growth and borrower repayment performance.
Riyad Bank delivered a stronger result, increasing quarterly net profit by 6.6 percent to SR2.87 billion. Its operating income rose 7.6 percent, supported by trading activity, foreign exchange earnings, dividends, and net special commission income. However, lower fees and reduced gains from selling non-trading investments partly offset those improvements.
Alinma Bank recorded a marginal 0.2 percent decline in quarterly profit, bringing earnings to SR1.59 billion. The lender cited weaker fee and investment income, together with higher expected credit loss provisions. Despite the slight decrease, its results reflected a different combination of income sources and operating costs.
Arab National Bank increased net profit by 1.7 percent to SR1.35 billion. Higher income from special commissions, foreign exchange transactions, and trading supported the improvement. However, increased expenses and weaker fee and investment income limited the overall gains.
Bank AlJazira achieved the fastest annual profit growth among the six institutions, with earnings rising 17.9 percent to SR471.6 million. Operating income increased 10.4 percent, supported by financing and investment income, dividends, and foreign exchange earnings. A lower zakat charge also contributed, although operating expenses continued to rise.
The bank’s lending portfolio expanded 14.4 percent annually, reaching SR123.37 billion. This represented the fastest loan growth among the six lenders during the period. Overall, their combined loan portfolios reached approximately SR2.5 trillion at the end of September, marking annual growth of 5.4 percent.
The latest Saudi banks earnings figures point to continued profitability alongside differing performance across individual institutions. Going forward, investors will likely monitor financing income, operating expenses, loan growth, and credit quality. These factors will help determine whether lenders can sustain earnings growth while managing regional uncertainty and changing borrower conditions.
