Listed companies in the Kingdom saw their aggregate net income fall 16.2% y-o-y in 2Q 2025 to SAR 123.6 bn, compared to SAR 147.6 bn, according to Kamco Invest’s latest Tadawul Corporate Earnings Report (pdf). The decline was driven by weak performance in the energy, basic materials, and transportation sectors, which was partially offset by strong earnings from banking, real estate, and telecom.

The banking sector led the growth, contributing SAR 23 bn in net income during 2Q 2025, up 17.7% y-o-y. All banks had their quarterly results in the black, with Al Rajhi Bank yielding the highest net income at SAR 6.2 bn, up 30.9% y-o-y. Meanwhile, Saudi National Bank saw its net income increase 17.3% y-o-y to SAR 6.1 bn, Riyad Bank posted an 11.1% y-o-y increase in net income to SAR 2.6 bn, and Banque Saudi Fransi reported a 24.3% y-o-y jump in net income to SAR 1.4 bn.

The telecom sector came second with SAR 4.8 bn in net income during the period, marking a 17.6% y-o-y growth. The increase was mainly driven by STC posting a 15.7% y-o-y rise in net income to SAR 3.8 bn and Mobily logging a 25.5% y-o-y increase in net income to SAR 830 mn.

The utilities sector recorded strong performance in 2Q 2025, led by Saudi ElectricityCompany, which saw its net income increase 41.7% to SAR 3.1 bn. The gains were partially offset, however, by Acwa Power posting a 23.6% decline in net income to SAR 481.8 mn.

MEANWHILE- The energy sector trailed behind with a 19.9% y-o-y dip in net income to SAR 84.9 bn in 2Q 2025, compared to SAR 106.1 bn. Saudi Aramco pulled down the sector, as its net income slipped 19.3% y-o-y to SAR 85.6 bn during the quarter due to lower revenues from lower oil prices. Bahri ’s net income also dropped 44% y-o-y to USD SAR 407.5 mn.

1H zoom-in: During the first six months of the year, combined income from Saudi Arabia-listed companies slipped 8.6% y-o-y to SAR 259.9 bn. The drop primarily came on the back of a 13.5% y-o-y decline in the energy sector’s net income to SAR 180.8 bn, followed by the basic materials sector, whose aggregate net income shed 76.5% y-o-y to SAR 1.9 bn. While sectors like transportation, ins., and diversified financials also pulled down the aggregate income for the period, strong performance in sectors like banking, real estate, and telecom partially offset this decline.

THE REGIONAL PICTURE-

GCC earnings under pressure: Aggregate net income for GCC-listed firms fell 8.7% y-o-y to USD 56.7 bn in 2Q 2025, according to the GCC Corporate Earnings Report (pdf). Softer oil and petrochemical prices were the main drag, with lower Brent crude prices resulting in energy earnings falling 18% y-o-y to USD 25.5 bn. 1H 2025 earnings across the GCC slipped a milder 3.4% y-o-y to USD 115.4 bn.

The main offset came from banking, where net income hit a record USD 16.6 bn, up 10.3% y-o-y. Gains were broad-based across six of seven exchanges, lifted by higher net interest (+6.9%) and non-interest income (+25%), which outweighed a 42% rise in impairments.

Abu Dhabi outpaced Dubai in 2Q earnings: Abu Dhabi-listed companies posted an 18.3% y-o-y rise in net income to USD 10.3 bn in 2Q 2025, while Dubai-listed firms saw their bottom line fall 5.7% y-o-y to USD 6.5 bn. This makes Abu Dhabi the region’s best performer during the quarter in absolute terms.

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