Saudi banks post mixed 3Q as provisions catch up with Al Rajhi, SNB, and others

Aljazira Bank leans on investment income to offset costs

Bank Aljazira’s bottom line pushed higher in 3Q 2026, carried by a surge in investment income and a lighter provisioning load. The lender reported net income of SAR 471.6 mn, up 17.9% y-o-y, according to its Tadawul disclosure. Total financing income grew 10.7% y-o-y to SAR 1.9 bn, while total investment income rose 10.1% to SAR 546.9 mn.

What lifted the books? Net income from the investment book nearly doubled, jumping 88.4% y-o-y to SAR 194.4 mn in the quarter and pulling combined net special commission income up around 20%. Core financing held steadier, with net financing commission income up 8.9% to SAR 661.7 mn as asset yields outpaced a milder 6% rise in funding costs.

The pattern held over nine months: Net income rose 15.4% y-o-y to SAR 1.3 bn in 9M 2026, supported by a 10.0% rise in financing income to SAR 5.4 bn and a 14.9% climb in investment income to SAR 1.6 bn.

Provisions eased: Aljazira trimmed its credit-loss charge over the period. The 9M net provision for expected credit losses fell 6.5% to SAR 237.3 mn, which the bank tied to lower provisioning on commercial financing, though the quarterly charge ticked up 22.4% on heavier provisioning for investments and interbank exposures.

Al Rajhi’s funding edge widens margins as bottom line climbs

Al Rajhi Bank turned its funding advantage into wider margins in 3Q, lifting net income while its balance sheet barely grew. The bank’s net income was up 11.7% y-o-y to SAR 7.1 bn, it said in a Tadawul filing. Total income from financing rose 8.1% y-o-y to SAR 12.7 bn, even as investment income fell 6.8% to SAR 2.3 bn.

Where the margin came from: Net financing income grew 20.3% against that 8.1% rise in gross financing income, as the bank’s income from financing and investment rose while the gross return it paid to fund itself declined — a lever rooted in its large base of low-cost deposits. Investment income ran softer, with gross investment commission income down 6.8% to SAR 2.3 bn, though the financing book more than covered the gap. The bank put combined net financing and investment income growth at 18.1% for the quarter.

The margin gains came on a book that hardly moved. Total assets edged up 1.8% y-o-y in 9M to SAR 1.1 tn, with the financing portfolio up 2.5% to SAR 774.9 bn and clients’ deposits up just 0.9% to SAR 700.3 bn. Shareholders’ equity rose 12.5% to SAR 154.5 bn.

Al Rajhi leaned harder on provisioning. The net charge for expected credit losses jumped 49.5% y-o-y to SAR 852 mn in the quarter and 39.5% to SAR 2.36 bn across the nine months, which the bank tied to a higher gross charge alongside a rise in recoveries on written-off financing.

9M told a similar story: Net income rose 13.3% y-o-y to SAR 20.9 bn in 9M 2026, underpinned by a 9.2% increase in financing income to SAR 37.1 bn. Investment income eased 2.6% y-o-y to SAR 6.9 bn.

ANB’s net income almost flat

Arab National Bank’s (ANB) bottom line barely moved in 3Q, held in check by a sharp rise in provisions even as its core income lines strengthened. ANB posted a net income of SAR 1.4 bn in 3Q 2026, up 1.7% y-o-y, according to a Tadawul filing. Total income from financing saw a 4.5% y-o-y gain to SAR 3.3 bn, while total investment income rose 22% to SAR 882 mn.

What capped the quarter: Operating performance held up, with total operating income up 7.4% to SAR 2.6 bn, but a steep rise in credit provisions absorbed much of the gain. The net charge for expected credit losses jumped to SAR 140 mn in the quarter from just SAR 19 mn a year earlier — an unusually low base that exaggerates the swing. Across the 9M period, the charge was broadly flat, up 3.2% to SAR 455 mn, which the bank tied to the non-recurrence of prior-year impairment reversals rather than any deterioration in asset quality.

The book kept growing: Lending expanded in the first nine months of the year, with the financing portfolio up 9.3% y-o-y to SAR 209.2 bn and total assets up 7.9% to SAR 302.5 bn. Clients’ deposits rose a slower 3.2% to SAR 217.5 bn, and shareholders’ equity climbed 15.1% to SAR 54.2 bn, lifted in part by additional Tier 1 sukuk raised during the year.

The nine-month read: Net income rose 4.1% y-o-y to SAR 4.1 bn in 9M 2026, driven by a 5% lift in total financing income to SAR 9.6 bn and a 16.6% increase in total investment income to SAR 2.5 bn.

Higher costs and provisions leave SNB’s 3Q net income flat

The Saudi National Bank’s 3Q bottom line held roughly flat as rising costs and a normalizing provision charge caught up with it. SNB reported net income of SAR 6.5 bn, down 0.3% y-o-y, it said in a Tadawul filing. Total financing income inched up 2.6% y-o-y to SAR 12.3 bn, while total investment income was soft, falling 3.9% to SAR 3.7 bn.

The 9M picture is stronger: Across the period, net income grew 4.6% y-o-y to SAR 19.5 bn, which the bank credited to higher operating income and impairment charges that all but disappeared — down 97.2% y-o-y to SAR 3 mn for 9M. Total financing income grew 2.7% y-o-y to SAR 35.4 bn, while investment income eased a slight 0.8% to SAR 10.8 bn.

That charge is coming back, though: The near-zero 9M impairment figure reflects earlier-quarter provision reversals that offset a SAR 323 mn charge booked in 3Q alone, which rose 39.8% y-o-y. That charge, together with a 9% jump in operating expenses to SAR 2.7 bn, is what held quarterly net income flat even as the 9M result grew.

Still the biggest book: SNB remains the Kingdom’s largest bank by assets, which reached SAR 1.3 tn at end-September, up 4.6% y-o-y. The financing portfolio rose 4.6% to SAR 758.1 bn and clients’ deposits 4.7% to SAR 669.9 bn, with shareholders’ equity up 6.5% to SAR 209.3 bn.

Financing carries Riyad Bank’s 3Q

Riyad Bank’s financing margin carried its bottom line in 3Q 2026, offsetting a collapse in investment income. The lender posted a net income of SAR 2.9 bn, up 6.6% y-o-y, according to its Tadawul disclosure. Net income from financing jumped 14.8% y-o-y to SAR 3.4 bn, even as net investment income fell 69% to SAR 64 mn.

Where the margin came from: The spread did it. Total financing income actually slipped 2.4% y-o-y over the quarter, so the double-digit rise in net financing income came entirely from funding costs falling faster than asset yields. The wider spread lifted operating income 7.6% to SAR 5.1 bn, enough to absorb a 25% y-o-y rise in the provision charge to SAR 420 mn. The investment book dragged the other way, with total investment income down 4% to SAR 3.7 bn.

On a 9M basis, net income rose 4.6% y-o-y to SAR 8.1 bn, driven by a 2% lift in financing income to SAR 18.1 bn and a 24.6% increase in investment income to SAR 2.7 bn.

The state of the book: Total assets reached SAR 545.3 bn at end-September, up 7.3% y-o-y, with the financing portfolio up 4.6% to SAR 385.4 bn and clients’ deposits up a slower 1.2% to SAR 329.4 bn. Shareholders’ equity rose 8.4% to SAR 66.8 bn.

Alinma’s bottom line stalls

Alinma Bank grew its balance sheet at one of the fastest clips among Saudi lenders this quarter, but the expansion did not reach the bottom line. Alinma Bank’s net income slipped 0.2% y-o-y to SAR 1.6 bn in 3Q 2026, as a jump in provisions offset solid income growth, according to a Tadawul filing. The bank’s total financing income grew 4.9% y-o-y to SAR 4.06 bn, while total investment income rose 3.4% to SAR 645.9 mn, both on higher lending and investment volumes.

What held it flat: Operating income rose 5.3% to SAR 3.12 bn, but a jump in provisions and softer non-core income offset the gain. The net charge for expected credit losses rose 56% y-o-y to SAR 400 mn in the quarter, which the bank tied to growth in its financing and investment portfolio rather than any deterioration in credit. Lower fee income and weaker gains on financial instruments added to the drag.

A book racing ahead: The financing portfolio expanded 12% y-o-y to SAR 252.7 bn by 9M-end and total assets 11.1% to SAR 341.4 bn — among the strongest rates in the sector — with clients’ deposits up 7.4% to SAR 251.9 bn and shareholders’ equity up 10.5% to SAR 52.5 bn.

Over the nine months, net income rose 4.0% y-o-y to SAR 4.86 bn on financing income of SAR 11.85 bn (up 6.9%) and investment income of SAR 1.86 bn (up 4.5%).