SAIB: Key factors impacting Q2 2026 results

Logo of Saudi Investment Bank (SAIB)

The Saudi Investment Bank’s (SAIB) net special commission income (NSCI) edged down to SAR 899 million in Q2 2026 from SAR 905 million a year ago, according to its latest investor presentation.

Fee and other income rose 26% to SAR 207 million from SAR 164 million in Q2 2025.

Consequently, total operating income increased 3.4% to SAR 1.11 billion in Q2 2026 from SAR 1.07 billion in the year-earlier period.

NSCI and Fee & Other Income (SAR mln)

Net interest margin (NIM) declined by 22 basis points to 2.13% by the end of Q2 2026 from 2.35% a year ago, as the yield on commissions declined at a faster pace than the cost of funding.

Meanwhile, SAIB continued to improve its operating efficiency, with the cost-to-income ratio (CIR) declining to 39.5% in Q2 2026 from 41% in the year-earlier period.

The bank’s asset quality also improved, as the non-performing loan (NPL) ratio declined to 0.91% from 0.96% in Q2 2025.

This positively impacted the NPL coverage ratio, which rose to 201.8% in the quarter from 165.7% in the comparable quarter.

NPL Ratio and Coverage Ratio

Total assets rose 9.6% YoY to SAR 184 billion, mainly driven by an 8.2% increase in net loans and advances to SAR 117.3 billion, alongside an 8.9% increase in net investments to SAR 47.3 billion.

Assets (SAR bln)

Corporate customers accounted for the largest share of the loan portfolio at 90%, after loans to the segment grew 30% YoY to SAR 105.6 billion by the end of Q2 2026.

Loan Portfolio by Customer Type (SAR bln)

* Includes overdraft loans.

Other segments accounted for the largest share of the bank’s financing portfolio at 43%, or SAR 50.4 billion, followed by utilities and building & construction segments, each accounting for 13%, or SAR 15.2 billion.

The building & construction segment recorded the highest growth, rising about 55% YoY, or SAR 5.4 billion.

Meanwhile, the commerce segment declined 17% YoY to SAR 11.7 billion, accounting for 10% of the bank’s financing portfolio in Q2 2026.

Loan Portfolio by Segment (SAR bln)

* Includes private banking and government/semi-government loans.

The increase in net investments was driven by higher investments in banks and financial institutions, which recorded the highest YoY growth of 21%, or SAR 3.3 billion, to SAR 19 billion and accounting for 40% of the total investment portfolio.

Meanwhile, the government and quasi-government investments accounted for the largest share of the portfolio at 48%, or SAR 22.9 billion, after rising about 4% YoY.

Net Investments (SAR bln)

Customer deposits grew 21.3% YoY to SAR 121.6 billion, but declined 1.1% quarter-on-quarter (QoQ) in Q2 2026.

Liabilities (SAR bln)

Time deposits increased 36% YoY, or SAR 25.8 billion, to SAR 96.6 billion in Q2 2026, while demand deposits declined 18% YoY to SAR 22.8 billion.

Deposits by Type (SAR bln)

Time deposits continued to account for the largest share of SAIB’s total deposits, at 79% in the quarter ended June 30, 2026, versus 71% in Q2 2025.

By customer type, retail deposits accounted for the largest share at 76%, reaching SAR 92.4 billion, after rising 28% YoY, or SAR 20.1 billion.

Meanwhile, corporate deposits declined 15% YoY to SAR 10.9 billion in Q2 2026.

Deposits by Customer Type (SAR bln)