Big banks edge higher + Nadec squeezed by feed, shipping costs

The Kingdom’s big banks moved in the same direction this quarter — up, but not by much. Riyad Bank, BSF, ANB, and Albilad each grew net income between 2% and 6.5%, with rising funding and operating costs keeping a lid on stronger lending and investment income. Nadec, meanwhile, saw its bottom line almost halved under feed and shipping cost pressure.

Riyad Bank posts modest growth

Riyad Bank recorded a 2% y-o-y increase in net income to SAR 2.7 bn in 2Q 2026, it said in a disclosure. The bank’s total income from financing grew 2.9% y-o-y to SAR 6 bn, while total investment income climbed 27.8% y-o-y to SAR 940.8 mn.

The drivers: Gains from loans, advances, and investments were the main drivers, alongside stronger trading and dividend income. Working against that were softer fee and commission income, weaker exchange income, and lower gains on the disposal of non-trading investments. Higher operating expenses — led by depreciation and investment impairment charges — also weighed.

The half-year read: 1H net income rose 3.5% y-o-y to SAR 5.26 bn, buoyed by a 4.4% lift in financing income to SAR 11.99 bn and a 22.8% increase in investment income to SAR 1.76 bn.

In the works: The bank rolled out a SAR 10 bn AT1 sukuk program last week, giving it a standing facility to issue perpetual shariah-compliant capital instruments as needed to support its capital base and liquidity management.

ANB’s loan book carries it higher

Arab National Bank (ANB) posted a 6.5% y-o-y increase in net income to SAR 1.4 bn in 2Q 2026, as a growing financing portfolio lifted core income, according to a Tadawul filing. Total financing income grew 3.6% y-o-y to SAR 3.2 bn, while total investment income dipped 4.3% to SAR 743 mn.

What lifted the books: Core lending income was the engine, with net special commission income from financing up 8.3% y-o-y. Gains on financial instruments and stronger foreign-exchange income added to the total, and a lighter charge for expected credit losses gave the bottom line further room.

One line to watch is provisioning: ANB’s credit-loss charge fell 16.7% y-o-y, which it attributes to improving portfolio credit quality. But the charge rose 33.3% q-o-q as the loan book grew, a trend worth keeping an eye on, particularly as the financing portfolio keeps expanding.

The half-year read: First-half net income rose 5.4% y-o-y to SAR 2.8 bn, buoyed by a 6.3% lift in financing income to SAR 6.3 bn and a 13.7% increase in investment income to SAR 1.6 bn, with the same portfolio growth carrying the period.

Dividends: The bank’s board approved SAR 1.3 bn in dividends for 1H 2026 at SAR 0.065 per share, with payment due on Tuesday, 4 August.

BSF climbs

Banque Saudi Fransi (BSF) saw a 6% y-o-y increase in net income to SAR 1.5 bn in 2Q 2026, as stronger lending and investment income outpaced rising costs, it said in a Tadawul disclosure. Higher net special commission income led the way, alongside stronger trading and dividend income, though softer fee income and rising costs kept a lid on the gain. Total financing income grew 3.7% y-o-y to SAR 3.78 bn, while total investment income rose 17.4% to SAR 801 mn.

The pattern holds over six months. Net income rose 4.6% y-o-y to SAR 2.87 bn, on financing income of SAR 7.47 bn (up 3.8%) and investment income of SAR 1.54 bn (up 16.4%) — the same lending-and-investment strength that carried the quarter.

Dividends: The bank will distribute SAR 1.4 bn in dividends for 1Q 2026, equivalent to SAR 0.57 per share by Tuesday, 11 August.

Bank Albilad is also up

Bank Albilad’s net income rose 3.4% y-o-y to SAR 791.6 mn in 2Q 2026, as stronger core lending and investment income outpaced rising funding costs, it said in a Tadawul disclosure. Total financing income grew 9.3% y-o-y to SAR 2 bn, while total investment income jumped 41.4% to SAR 597.7 mn.

Behind the numbers: Growth in lending and investment income carried the quarter. But the gain was tempered by higher funding costs, with the return paid on deposits and liabilities rising faster than asset income, alongside softer fee income and weaker FVSI and exchange gains.

For 1H, net income grew 4.2% y-o-y to SAR 1.5 bn, with financing income up 8.6% y-o-y to SAR 3.9 bn and a 29.2% increase in investment income to SAR 1.1 bn.

Nadec margins squeezed by feed and shipping costs

The National Agriculture Development Company (Nadec) saw its bottom line shrink 44% y-o-y to SAR 64.6 mn in 2Q, despite a 5.5% y-o-y increase in revenue to SAR 876.4 mn, it said in a Tadawul filing. And that’s with a SAR 32.8 mn non-recurring gain — from reversing impairment on old receivables collected during the quarter — flattering the bottom line.

Blame Hormuz-ramped costs: Rising feed and shipping costs plus surcharges tied to regional maritime disruptions increased cost of sales by SAR 45 mn in the quarter, pushing it up 9.2% as a share of revenue. A wider share of losses from Nadec’s Al Raie livestock joint venture and lower treasury income added to the drag.

But thank a shifting revenue mix: Revenue growth came from protein (up 99.2% y-o-y) and agriculture (up 41%), which offset a 3.7% decline in the core dairy and food processing business. Nadec frames this as a deliberate tilt toward higher-value segments.

The 1H picture tells a similar story: First-half net income also fell 27.6% to SAR 158.3 mn on revenue of SAR 1.79 bn, down 2.6%.