Saudi lenders post solid first-quarter gains

The sector’s heavyweights beat expectations in 1Q, and the smaller names held their own. Every major Tadawul-listed lender grew its bottom line y-o-y in the first quarter, with Al Rajhi and Saudi National Bank (SNB) both coming in ahead of analyst estimates. A quick run-through:

#1- Al Rajhi Bank saw net income climb 14.3% y-o-y to SAR 6.8 bn, edging past the SAR 6.6 bn consensus from Bloomberg-polled analysts. Operating income did most of the heavy lifting, up 14.4% on stronger financing and investment income, banking fees, and FX gains — enough to more than offset an 18.2% jump in expenses and a 20.2% rise in impairment charges. Financing income rose 12.2% y-o-y to SAR 12.3 bn, while investment income held roughly flat at SAR 2.2 bn.

Dividend watch: Al Rajhi will pay out SAR 7 bn for 2H 2025 at SAR 1.75 per share, per a separate disclosure (pdf). Distribution kicks off Thursday, 30 April.

#2- Saudi National Bank posted a 6.7% y-o-y rise in net income to SAR 6.4 bn, also ahead of the Bloomberg estimate of SAR 6.2 bn. Total operating expenses dropped 19.4%, while operating income barely moved (up 0.4%). Financing income rose 4.4% y-o-y to SAR 11.4 bn, while investment income slipped 1.1% to SAR 3.4 bn.

#3- Riyad Bank logged a 5.1% y-o-y increase in net income to SAR 2.6 bn. Stronger trading and special commission income, a narrower loss on non-trading investments, and lower impairment charges on credit and financial assets did the work. Financing income was up 5.9% y-o-y to SAR 6 bn, while investment income jumped 17.4% to SAR 815.3 mn.

#4- Arab National Bank’s net income grew 4.2% y-o-y to SAR 1.4 bn. Gains across special commissions, dividends, and trading — plus better valuations on non-trading instruments and a smaller ECL provision — drove the uplift. Financing revenues rose 6.9% y-o-y to SAR 3.1 bn, while investment income surged 35.5% to SAR 867 mn.

#5- Banque Saudi Fransi delivered a 3.2% y-o-y rise in net income to SAR 1.3 bn. Operating income ticked up 2.7%, partially offset by a 1.9% rise in expenses. Financing income grew 3.9% y-o-y to SAR 3.7 bn, and investment income rose 15.4% to SAR 742 mn.

#6- Bank AlJazira rounded out the group with 12.2% y-o-y growth in net income to SAR 405 mn. A 7% uptick in operating income — helped by financing and investment yields, fair value gains, and dividends — offset a 2% rise in expenses and softer fee and FX income. Financing income was up 8.8% y-o-y to SAR 1.7 bn, while investment income rose 7.5% to SAR 534.2 mn.

ALSO FROM EARNINGS LAND- Aldrees Petroleum and Transport Services Co. posted an 8.9% y-o-y increase in net income to SAR 110.1 mn in 1Q 2026, it said in a Tadawul disclosure. Growth was driven by stronger petrol and transport divisions, higher deposits, and improved returns from joint ventures and sukuk. Revenue also gained 17.2% y-o-y to SAR 6.8 bn thanks to a service station network expansion and a larger truck fleet.