Last Updated Date 27/10/2025 Argaam Report
AI Summary
Saudi banks recorded a 17% growth in their aggregate profits, reaching SAR 68.87 billion by the end of the first nine months of 2025, compared to SAR 58.7 billion during the same period last year.
This increase was supported by a decline in credit loss provisions, along with improved income from both financing and non-financing sources.
In addition, total financing provisions dropped by about 13% year-on-year (YoY), after Bank Albilad cut its provisions by 28%. Meanwhile, Saudi National Bank (SNB) reported provisions of SAR 93 million in 9M 2025, dropping 91% YoY compared to SAR 1 billion.
Non-financing income rose by 21%, boosted by higher banking service fees and foreign exchange transactions. Additionally, net commission income increased by around 8% YoY, supported by an improved loan portfolio.
| Item | 9m-2024 | 9m -2025 | Change |
|---|---|---|---|
| Net Income | 58,704.65 | 68,867.33 | 17.31 % |
The sector saw a collective increase in profits during 9M2025, compared to the year-earlier period, led by Al Rajhi Bank with better-than-expected profits of SAR 18.4 billion, up 30%.
Al Rajhi Bank’s share of total sector profits rose to about 27%, compared with 24% in the same period last year. This performance was driven by strong growth in both financing and non-financing income, as total income from financing and investments increased 20% YoY, supported by a 16% YoY expansion in the lending portfolio and an 8% YoY rise in investments. The bank also reported an 8% YoY increase in credit provisions, impacted by loan portfolio growth.
Saudi National Bank (SNB) achieved higher profits in 9M 2025, resulting from lower provisions that recorded SAR 93 million, compared to SAR 1 billion in 9M 2024. This was in addition to a 6% higher income from financing and investments, which was supported by a 13% increase in the investment portfolio.
Meanwhile, Bank AlJazira and Banque Saudi Fransi (BSF) continued to post solid profit growth of 20% YoY and 19% YoY, respectively, in 9M 2025.
Bank AlJazira’s higher profits were supported by growth in income from financing and investments, driven by a 16% YoY expansion in the loan portfolio, despite a 39% YoY rise in provisions. Profit growth at BSF was fueled by a 16% YoY increase in non-financing income and a 9% YoY drop in provisions, leading to a 12% YoY rise in operating income.
| Company | 9m-2024 | 9m -2025 | Change |
|---|---|---|---|
| Saudi Awwal Bank | 5,944.00 | 6,405.00 | 7.76 % |
| Banque Saudi Fransi | 3,427.27 | 4,094.00 | 19.45 % |
| Saudi Investment Bank | 1,446.64 | 1,534.20 | 6.05 % |
| Al Rajhi Bank | 14,206.37 | 18,417.00 | 29.64 % |
| Riyad Bank | 7,064.51 | 7,770.03 | 9.99 % |
| Arab National Bank | 3,709.53 | 3,970.00 | 7.02 % |
| The Saudi National Bank | 15,636.27 | 18,628.00 | 19.13 % |
| Alinma Bank | 4,302.76 | 4,673.30 | 8.61 % |
| Bank Aljazira | 950.71 | 1,143.20 | 20.25 % |
| Bank Albilad | 2,016.58 | 2,232.60 | 10.71 % |
| Total | 58,704.65 | 68,867.33 | 17.31 % |
In terms of balance sheets, Saudi banks continued to record strong asset growth, reaching SAR 4.62 trillion as of 9M 2025, expanding 13% YoY.
SNB held the largest share of total assets at 26%, followed by Al Rajhi Bank with a 23% share in 9M 2025. Al Rajhi’s assets rose 17% YoY, supported by an expansion in its financing and investment portfolios, while SNB’s assets grew 7% YoY.
The banking sector also continued to strengthen its lending activity, with total loans rising 14% to SAR 3.11 trillion, compared with SAR 2.72 trillion in the same period last year. Customer deposits grew 7% to reach SAR 2.93 trillion, up from SAR 2.73 trillion a year earlier.
| Company | 2024 - Q3 | 2025 - Q3 | Change |
|---|---|---|---|
| SAB | 1,883.00 | 2,144.00 | 13.86 % |
| BSF | 1,148.12 | 1,353.00 | 17.84 % |
| SAIB | 517.84 | 518.40 | 0.11 % |
| ALRAJHI | 5,103.43 | 6,360.00 | 24.62 % |
| RIBL | 2,654.09 | 2,687.40 | 1.26 % |
| ANB | 1,243.13 | 1,329.00 | 6.91 % |
| SNB | 5,366.10 | 6,469.00 | 20.55 % |
| ALINMA | 1,571.46 | 1,592.00 | 1.31 % |
| BJAZ | 332.72 | 400.10 | 20.25 % |
| ALBILAD | 702.69 | 766.50 | 9.08 % |
| Total | 20,522.58 | 23,619.40 | 15.09 % |
At the quarterly level, Saudi banks maintained their solid performance during Q3 2025, as the sector’s aggregate profit rose 15% to SAR 23.6 billion, compared to SAR 20.5 billion in the same period last year.
The improvement was supported by profit growth across all banks, led by Al Rajhi Bank, which recorded a 25% YoY rise, exceeding average market expectations by around 6% in Q3 2025.
This performance was mainly driven by a 27% increase in non-financing income, a 17% decline in credit provisions, and higher total income from financing and investments.
| Company | EPS (Riyal) | Close | Recurring P/E (TTM) |
|---|---|---|---|
| Saudi Awwal Bank | 4.15 | 32.08 | 7.62 |
| Riyad Bank | 3.34 | 26.86 | 8.04 |
| Saudi Investment Bank | 1.64 | 13.75 | 8.41 |
| Banque Saudi Fransi | 2.08 | 17.80 | 8.54 |
| Arab National Bank | 2.61 | 24.24 | 9.07 |
| The Saudi National Bank | 4.03 | 39.32 | 9.75 |
| Alinma Bank | 2.48 | 26.40 | 10.64 |
| Bank Aljazira | 1.11 | 12.70 | 11.43 |
| Bank Albilad | 2.02 | 29.26 | 14.52 |
| Al Rajhi Bank | 5.98 | 109.00 | 18.22 |
| P/E (TTM) | 11.74 |
| P/BV | 1.81 |
| Dividend Yield | 3.88 % |
| Sector Capitalization (M) | 1,054,747.76 |
| Market Cap. (M) | 3,372,035.30 |
| Return on Average Assets (TTM) | 2.00 % |
| Return on Average Equity (TTM) | 16.08 % |
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