Saudi Arabia’s banking sector continued to post record profits in the first nine months of 2026, driven by lending growth, strong credit demand and expanding economic activity. Combined net profit at the 10 banks listed on the Saudi main stock market rose 6.84% to SAR 73.58 billion ($19.62 billion), from SAR 68.87 billion ($18.37 billion) a year earlier, an increase of SAR 4.71 billion ($1.26 billion). The banks are Saudi National Bank, Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, Bank AlBilad, Saudi Investment Bank and Bank AlJazira. Al Rajhi Leads Profit Rankings Al Rajhi Bank reported the highest net profit for the nine-month period at SAR 20.87 billion, up 13.3% from approximately SAR 18.41 billion a year earlier. Saudi National Bank ranked second with SAR 19.48 billion, an increase of 4.57% from SAR 18.62 billion, followed by Riyad Bank with nearly SAR 8.13 billion, up 4.6% from SAR 7.77 billion. In the third quarter alone, combined profits at the 10 banks rose 4.8% to SAR 24.75 billion ($6.6 billion), compared with SAR 23.62 billion ($6.3 billion) in the same period of 2025, an increase of SAR 1.13 billion ($301 million). Al Rajhi Bank again led the sector with quarterly net profit of SAR 7.1 billion, up 11.73%. Saudi National Bank followed with SAR 6.45 billion, despite a marginal decline of 0.29%, while Riyad Bank ranked third with SAR 2.865 billion, up 6.6%. Lending Growth and Revenue Diversification Financial and economic expert Sulaiman Al-Humaid Al-Khaldi, a member of the Saudi Economic Association, told Asharq Al-Awsat that the nine-month results reflected the strength of Saudi banks and their ability to turn economic expansion into sustainable returns while financing investment and productive projects. He attributed the growth to increased lending, efficient management of funding costs, diversified revenue streams and tighter control of expenses and risks. Economic expansion and development projects were also creating opportunities for corporate lending and banking services, including payments and cash management, he added. Al-Khaldi said profit growth across all 10 listed banks indicated a broad improvement rather than gains concentrated in a few institutions. However, sustaining that performance would depend on the quality of earnings, growth in core operating revenue, adequate liquidity and capital levels, and effective management of nonperforming loans and provisions. He said the slowdown in quarterly profit growth to 4.8%, compared with 6.84% for the nine-month period, reflected uneven performance among lenders amid competition for deposits, funding costs and differences in asset utilization efficiency. Maintaining growth would require greater operational efficiency, sustainable revenue generation and lending expansion without compromising asset quality or risk management, he added. He also stressed that banking growth should translate into wider economic benefits through financing productive projects, supporting business expansion and creating jobs. Profits Could Approach SAR 100 Billion Al-Khaldi forecast that Saudi banks’ combined profits could approach SAR 100 billion by the end of 2026, compared with approximately SAR 90 billion in 2025, representing growth of more than 10%, provided momentum continues through the final quarter. Mohamed Hamdy Omar, CEO of G World for Studies, also told Asharq Al-Awsat that the nine-month results underscored the banking sector’s strength and its ability to benefit from Saudi Arabia’s expanding economy. He said higher lending volumes and stronger demand for credit from individuals and businesses had driven growth in net financing and investment income and expanded banks’ loan portfolios. Banks had benefited particularly from financing major projects linked to Saudi Vision 2030, including infrastructure, real estate development, energy and utilities, he added. Continued demand for mortgage and consumer financing had supported operating revenue, notably at Al Rajhi Bank, whose large retail market share and extensive deposit base provided a competitive advantage in managing funding costs. Omar said lending growth had also boosted non-financing income from banking fees, brokerage and wealth management, while larger asset and financing portfolios helped improve operational efficiency. Interest Rates and Asset Quality Looking ahead to the fourth quarter, Omar expected Saudi bank profits to continue rising, potentially reaching record levels for 2026 as credit demand remained strong and financing deals linked to government and capital projects accelerated before the end of the financial year. He said a shift toward lower interest rates could ease banks’ funding and deposit costs while encouraging private-sector borrowing and investment. However, the ability to manage profit margins and financing costs would remain crucial to future performance. Omar also highlighted asset quality and credit-loss provision coverage as factors supporting banks’ resilience against potential defaults and helping sustain profitability. Continued earnings growth, he underlined, reflected the sector’s expanding role in financing economic activity and development projects and supporting Saudi Arabia’s economic diversification goals.
