Mohammed Al-Ghamdi

Tuesday 21 July 2026 11:52 | 2 minutes read

The net profit of Saudi First Bank rose 9.6% year-on-year in the second quarter of this year to SAR 2.33 billion, compared to SAR 2.12 billion in the same quarter last year.

The bank explained in a statement on 'Tadawul' today, Tuesday, that the rise was supported by growth in net special commission income, a decline in net expected credit loss provisions, and a decrease in income tax provisions. However, these factors were partially offset by a decline in total operating income, a decrease in the bank's share of profit from an associate company, and an increase in total operating expenses.

The decline in total operating income is mainly due to a decrease in foreign exchange income (due to lower volume of foreign exchange trading), a decrease in gains from financial instruments measured at fair value through other comprehensive income, as well as a decline in fee and commission income and other operating income. However, this was partially offset by an increase in net special commission income and higher income from financial instruments measured at fair value through profit or loss.

Wed, 20 2026

The increase in operating expenses is mainly due to higher depreciation and amortization resulting from the recent capitalization of software costs, reflecting investment in enhancing digital capabilities. The decrease in the bank's share of profit from an associate company is mainly attributable to lower operating income due to a decline in business volume and reduced activity in capital and securities markets. Income tax provisions decreased due to a tax recovery related to investments in eligible sukuk and government bonds.

Net special commission income rose 3%, due to growth in the loan and interbank lending portfolio, but was partially offset by a decline in average yield due to lower interest rates, which mainly affected the variable-rate loan portfolio. In contrast, special commission expense increased 2%, reflecting a higher proportion of time deposits bearing special commissions, along with increased issuance of debt instruments and term loans, partially offset by a decrease in interbank borrowing.

Saudi First Bank, established in 1978, operates in all banking and financial activities. Its current market value is about SAR 67 billion. HSBC owns the largest stake of 31% of capital, while Al-Olayan Group holds 20.5%.

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