What was Al Rajhi Bank's net profit for H1 2026?

Net profit attributable to shareholders reached SAR 13,764 million, up 14.16% compared to H1 2025.

What drove Al Rajhi's profit growth in H1?

The growth was primarily driven by a 16% increase in net financing and investment income, along with higher banking service fees.

How did Al Rajhi's credit loss provisions change?

Expected credit loss provisions increased 34.4% to SAR 1,512 million, driven by higher gross charge-offs.

Did Al Rajhi provide guidance for the upcoming period?

The bank did not provide specific numerical guidance for future quarters.

Al Rajhi Bank H1 2026 Net Profit Rises 14.2% to SAR 13.8B

Al Rajhi Bank reported a net profit of SAR 13,764 million for the first half of 2026, up 14.16% YoY. Total operating income grew 13.88% to SAR 21,413 million, supported by a 16% rise in net financing and investment income.

Al Rajhi Bank (1120) announced its interim financial results for the six months ended June 30, 2026, posting a net profit attributable to shareholders of SAR 13,764 million, a 14.16% increase year-on-year. Total operating profit reached SAR 21,413 million, up 13.88%.

Key Financial Highlights

Metric	H1 2026	H1 2025	Change
Net Profit Attributable to Shareholders	SAR 13,764M	SAR 12,057M	+14.16%
Total Operating Profit	SAR 21,413M	SAR 18,803M	+13.88%
Net Financing and Investment Income	Not disclosed	-	+16% (growth)
Expected Credit Loss Provision	SAR 1,512M	SAR 1,125M	+34.4%

Key Highlights from the Statement

Financing income growth: Net financing and investment income rose 16% YoY, driven by higher gross financing and investment income.
Fee income increase: Growth in fees from banking services and exchange income.
Expense rise: Total operating expenses (including impairment) increased 18.8% YoY due to higher general and administrative expenses and employee costs.
Provision spike: Expected credit loss provision jumped 34.4% to SAR 1,512 million.

On a quarterly basis, Q2 net profit was SAR 7,012 million, up 3.85% from Q1.

Guidance

The bank did not provide specific numerical guidance for the upcoming period.

Impact on the Stock

Investors are likely to view the results positively given the strong earnings growth, but the sharp increase in provisions may raise concerns about asset quality. The stock's reaction will depend on market interpretation of credit trends.

What This Means for Investors

Al Rajhi's results show robust operational performance with core revenue growth, but the rising provisions signal a more cautious credit environment. Investors should monitor asset quality developments in coming quarters.