Mohammed Al-Ghamdi

Tuesday, July 21, 2026, 11:52 AM | 2 minutes read

Profits 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' on Tuesday that the increase was supported by growth in net special commission income, a decline in the net expected credit loss provision, and a decrease in income tax provision, but 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 was mainly due to a decrease in foreign exchange income (due to a decline in foreign exchange trading volume), a decrease in gains from financial instruments measured at fair value through other comprehensive income, a decrease in fee and commission income, and a decline in other operating income, but this was partially offset by an increase in net special commission income and an increase in income from financial instruments measured at fair value through profit or loss.

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The increase in operating expenses was mainly due to an increase in depreciation and amortization expenses resulting from the recent capitalization of software costs, reflecting investment in enhancing digital capabilities. The decrease in the bank's share of profit from the associate company was mainly due to a decline in its operating income as a result of a decrease in the volume of operations and lower activity in capital and securities markets. The income tax provision also decreased due to a tax refund related to investments in eligible sukuk and government bonds.

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

Saudi First Bank, founded 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 the capital, while Al-Olayan Group owns 20.5%.

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