Saudi banks are expected to see a 14% y-o-y growth in aggregate net income in 2Q 2025, the highest in the GCC, according to a recent note from CI Capital seen by EnterpriseAM. Top banks on the list include Saudi Awwal Bank, Alinma Bank, Bank Aljazira , Riyad Bank (RIBL), and Banque Saudi Fransi .

Al Rajhi Bank is seen outpacing its local counterparts on a favourable Net Interest Margin (NIM) outlook. This will make the Saudi lender capable of “standing out as one of the only banks guiding for a NIM expansion” in CI Capital’s forecast for this year, the note said.

Our banking sector is also projected to lead in loan growth during the second quarter, with a 3.34% q-o-q increase in the kingdom, primarily fueled by a 3.53% q-o-q increase in corporate loans, the report noted.

This domination shows solid fundamentals and attractive valuations, the report noted while suggesting that “market challenges and risks are largely overplayed by the market”. Several macroeconomic indicators remain strong, including non-oil GDP growth, PMI readings, unemployment rates, and female involvement in the labor market.

REGIONALLY- UAE banks are coming in second place, with net income forecast to grow by 1.3% y-o-y in 2Q, while Kuwaiti lenders are projected to see their net incomes decline by 7.3% during the quarter.

ICYMI- The aggregate net income of the Kingdom’s top 10 listed banks grew by 6.3% q-o-q in 1Q 2025 to SAR 22.2 bn,supported by higher fee income and cost efficiency, global consulting firm Alvarez & Marsal’s said in its Saudi Arabia Banking Pulse 1Q report earlier this month. Net loans and advances for Saudi banks also grew by 5.4% q-o-q in 1Q, supported by an increase in corporate loans and deposits.

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