Saudi banks’ credit provisions drop 27% in Q1 2026

Saudi-listed banks’ credit provisions recorded a drop of 27% to SAR 1.41 billion in the first quarter of 2026, compared to SAR 1.92 billion in the year-ago period, according to a survey by Argaam of the financial statements of Saudi banks listed on the main market (TASI).

Five banks reported a decline in credit provisions in Q1 2026, led by Alinma Bank, which recorded a 32% year-on-year (YoY) decrease to SAR 153.63 million. 

Arab National Bank (ANB) and Bank AlJazira followed with decreases of 29% and 28%, respectively.

Saudi National Bank (SNB) recorded a reversal of provisions at SAR 577.3 million in Q1 2026 compared to a provision of SAR 31.1 million a year earlier.

Meanwhile, provisions of four banks rose in Q1 2026, led by Bank Albilad with a 126% increase.

It was followed by Riyad Bank and Al Rajhi Bank, which recorded increases of 28% and 21%, respectively.

Credit provisions dropped 58% quarter-on-quarter (QoQ) to SAR 1.41 billion in Q1 2026, compared to SAR 3.35 billion.

Provisions declined across all banks except Bank Albilad, which saw a 4% QoQ increase in Q1 2026.

SNB recorded the largest overall decline in provisions, posting a provision reversal of SAR 577.3 million compared to a provision charge of SAR 960 million in Q4 2025.

The Saudi Investment Bank (SAIB) recorded the steepest decline at 64%, driven by higher recoveries and improvements in asset quality indicators.

Alinma Bank also posted a notable decline of 46%, attributed to its strategy of financing new, higher-quality credit assets, in addition to collecting recoveries from previously written-off accounts.

These developments directly supported the sector’s profit growth in Q1 2026, and they were particularly evident as several banks shifted from building new provisions to recording recoveries and reverse provisions, compared to the previous quarter.

The trend reflects improving default levels and generally more stable asset quality across most banks.