Al Rajhi Bank, the second largest bank in the Kingdom by assets, saw its net profit rise 14% in the second quarter of 2026 to about SAR 7.01 billion, compared to about SAR 6.15 billion in the same quarter of 2025.

Credit loss provisions rise 46.8% to SAR 881 million

The bank said in a statement on Tadawul on Tuesday that the profit increase in Q2 compared to the same quarter last year was due to a rise in net income resulting from a 13.3% increase in total operating income, mainly driven by higher net financing and investment income, banking service fees, and foreign currency exchange income, as well as a decrease in depreciation expense.

It added that this was offset by a decline in other operating income, while total operating expenses including credit loss provisions rose 19.4%, due to an increase in other general and administrative expenses and employee salaries and benefits, offset by a decrease in depreciation expense, in addition to an increase in credit loss provisions from SAR 600 million to SAR 881 million, up 46.8%.

The bank explained that the increase in net expected credit loss provisions by 46.8% to about SAR 881 million was due to a 36% rise in total additions, along with a 26.3% increase in recoveries from written-off financings compared to the same quarter last year.

In the same context, Al Rajhi Bank's profits rose to SAR 13.8 billion at the end of the first half of 2026, up 14.2% compared to profits of SAR 12.1 billion achieved during the same period in 2025.

The bank attributed this increase to a 16% rise in net income from financing and investment, mainly due to higher total income from financing and investment, in addition to a 13.9% increase in total operating income, primarily driven by higher net financing and investment income, banking service fees, and foreign currency exchange income.