\n\tRIYADH: Saudi Arabia\u2019s largest lenders, including Saudi National Bank, Al Rajhi Bank and Riyad Bank, reported higher first-half earnings in 2026, driven by robust lending growth, resilient operating income and improving liquidity, bourse filings showed.<\/p>\n
\n\tSNB, the Kingdom\u2019s largest bank, posted a net profit of SR13.02 billion ($3.47 billion)<\/a> in the first half of 2026, up 7.15 percent from the same period a year earlier.<\/p>\n \n\tAl Rajhi Bank reported the highest first-half profit among Saudi lenders at SR13.76 billion, marking a 14.15 percent year-on-year increase, while Riyad Bank posted net income of SR5.26 billion<\/a>, up 3.54 percent.<\/p>\n \n\tAlinma Bank also reported strong results, with first-half net profit rising 6.24 percent year-on-year to SR3.27 billion.<\/p>\n \n\tSaudi banks have continued to benefit from strong credit demand <\/a>as the Kingdom\u2019s economic diversification drives lending across sectors including housing, infrastructure, tourism and corporate investment.<\/p>\n \n\tAccording to the Saudi Central Bank,<\/a> total bank credit to the private sector reached a record SR3.2 trillion in May, up 16.2 percent year on year, underscoring the sustained expansion in financing activity that has supported earnings growth.<\/p>\n \n\tCommenting on this robust profitability among Saudi banks, Tony Hallside, CEO of STP Partners, told Arab News that banks in the Kingdom are increasingly demonstrating that sustainable profitability is built on more than interest rate cycles.<\/p>\n \n\t\u201cThe strong earnings reported across the sector reflect a combination of robust credit demand, particularly from projects linked to Vision 2030, improving liquidity conditions, disciplined risk management and continued investment in digital capabilities,\u201d said Hallside.<\/p>\n \n\tEarlier this month, Bank Albilad reported a net profit of SR1.53 billion in the first half of this year, marking a 7 percent year-on-year increase, while Arab National Bank posted a net income of SR2.8 billion during the same period, up 5 percent.<\/p>\n \n\tKapil Chadda, partner at Arthur D. Little, told Arab News: \u201cOne element that has contributed to the robust turnaround for the Saudi banks from the end of last year, when they were feeling the stress of exuberant growth, was in their liquidity buffers.\u201d<\/p>\n \n\tHe added: \u201cThis has eased with the slowdown of growth and thus allowing banks to hold greater liquidity and thus manage their balance sheets better.\u201d<\/p>\n \n\tFactors driving profitability<\/p>\n \n\tSaudi banks\u2019 first-half profitability continued to benefit from resilient operating income growth. Key drivers across institutions included higher net financing and investment income, gains from investments and trading, increased banking service fees, and stronger foreign exchange earnings.<\/p>\n \n\tSNB attributed its profit rise to a 5.8 percent year-on-year increase in total operating income, which reached SR20.2 billion. This was supported by 7.4 percent growth in net special commission income, a 3 percent rise in total investment gains, 2.9 percent higher fees from banking services, and a strong 20.8 percent jump in net exchange income.<\/p>\n