Saudi banks’ financial results are expected to reach record highs in 3Q 2025, with Tadawul-listed banks’ revenue projected to climb 4.6% y-o-y to SAR 21.5 bn, Asharq Business reported yesterday, citing data from Bloomberg. Lack of liquidity and expansion of non-oil activities underpinned the forecast.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Al Rajhi is expected to post SAR 5.8 bn in earnings, outperforming Saudi National Bank — the largest bank by assets — with SAR 5.5 bn, according to Bloomberg data. Al Rajhi is followed by Banque Saudi Fransi, which is expected to post a 12.8% increase in earnings. Bank Al Jazira is set to post an 11.1% income growth, followed by Saudi Awwal Bank (+7.3%), Arab National Bank (+5.6%), and Bank Albilad (+5%).

Banks falling behind: Riyad Bank’s results are forecast to decline 5.5% y-o-y to SAR 2.5 bn. The Saudi Investment Bank and Alinma Bank are also expected to see declines.

The expected strong banks’ financial results are attributed to providing financing at high income margins, despite the decline in the Saudi Arabian Interbank Offered Rate (Saibor) as interest rates decrease, Hesham Abou Jamee, advisor at Naif Al Rajhi Investment, told the regional news outlet. The high borrowing costs compared to Saibor indicate a liquidity crunch, prompting borrowers to accept higher costs, which will positively impact profits, he noted.

Another driver is the boom of the non-oil activities in the private sector, Value Capital CEO Ibrahim Alnwaibet said. He expects Al Rajhi Bank to see its net income jump 12.9% y-o-y, or SAR 659 mn, accounting for 69% of the total banking sector’s growth for the quarter.

Tags: