Major Saudi Banks Report SAR 23.1 Billion in Q1 2026 Profits, Led by Al Rajhi and SNB

Riyad Bank reported net profits of $697 million in the first quarter of 2026, marking stable growth driven by strong financing activities and investment returns, according to Asharq Al-Awsat. This performance aligns with a broader surge in Saudi banking sector earnings, as major players like Al Rajhi Bank and Saudi National Bank (SNB) also posted impressive results for the same period. Al Rajhi, one of the world's largest Islamic banks, saw its profits jump 14.3% to $1.8 billion, while SNB achieved $1.7 billion in net profits, equivalent to 6.42 billion Saudi riyals.

These results highlight the resilience of Saudi Arabia's banking industry amid economic diversification efforts under Vision 2030. Riyad Bank's steady profit increase reflects robust demand for financing in key sectors like real estate and infrastructure, as well as favorable returns from investment portfolios. Al Rajhi's standout 14.3% year-on-year growth underscores its dominance in Islamic banking, benefiting from expanded customer deposits and fee-based income, as reported by Asharq Al-Awsat. SNB, the kingdom's largest lender by assets, maintained its leadership with profits supported by higher operating income and controlled provisions for credit losses.

The collective strength of these banks contributes to an estimated SAR 23.1 billion in combined net profits across major listed Saudi banks for Q1 2026, representing a 3.9% year-on-year rise from SAR 22.3 billion in the prior year, according to analyst projections from Sahm Capital. This upward trajectory signals sustained momentum in the sector, with sequential improvements over Q4 2025 for several institutions, including Al Rajhi and Banque Saudi Fransi. Such earnings bolster investor confidence, as Saudi bank stocks have climbed 10.9% since March in anticipation of these figures.

For investors and the wider economy, these outcomes matter significantly. Saudi banks play a pivotal role in funding megaprojects like NEOM and the Red Sea development, channeling capital into non-oil growth areas. Strong profits enhance lending capacity, potentially lowering borrowing costs for businesses and consumers. Shareholders benefit directly, with dividends likely to remain attractive given the sector's profitability.

Looking ahead, more earnings reports are expected in the coming days, including detailed breakdowns from SNB and others, as noted by Argaam. Analysts anticipate continued expansion if interest rates stabilize and oil prices remain supportive. Regulatory oversight from the Saudi Central Bank will ensure prudent growth, while global economic headwinds could pose risks to international exposures. Overall, Q1 2026 sets a positive tone for the Saudi financial sector's full-year performance.