Preliminary Report: Investment Bank’s Q2 2026 Results

Item

Current Period

Prior Period

Change%

Total special commission income from financing

3,660.2

3,533

3.6

Total special commission income from investments

1,239.2

1,142.8

8.435

Net special commission income from financing

1,143.5

1,450.3

-21.154

Net special commission income from investments

660.5

345.8

91.006

Total operating profit (loss)

2,162.6

2,120.2

1.999

Net profit (loss) before zakat and tax

1,221.7

1,181.1

3.437

Net profit (loss) attributable to equity holders of the issuer

1,050.7

1,015.8

3.435

Total comprehensive income attributable to equity holders of the issuer

1,069.3

1,183.1

-9.618

Assets

184,021

167,828

9.648

Investments

47,333

43,458

8.916

Loan and advances portfolio (financing and investments)

117,320

108,423

8.205

Customer deposits

121,559

100,236

21.272

Total equity (after deducting non-controlling interests)

17,672

16,336

8.178

Total operating expenses before provision for credit losses and other losses

855.2

869.3

-1.621

Total provision (reversal) for expected credit losses and other losses, net

128.1

125.7

1.909

Earnings (loss) per share

0.7

0.68

All figures in millions of Saudi riyals

Item

Value

Percentage of capital

Gains (losses) from fair value changes of investment properties

Accumulated losses

All figures in millions of Saudi riyals

Item

Explanation

The reason for the increase (decrease) in special commission income during the current quarter compared to the same quarter of the previous year is

Net special commission income decreased marginally by 0.7%, mainly due to an increase in total special commission expenses despite an increase in total special commission income.

The reason for the increase (decrease) in net profit during the current quarter compared to the same quarter of the previous year is

Net profit increased by 3.6% due to an increase in total operating income.

Total operating income increased by 3.4%, mainly due to an increase in unrealized fair value gains through the income statement, foreign currency exchange fees, gains on disposal of debt securities at fair value through other comprehensive income, and banking service fees, partially offset by a decrease in net special commission income.

Total operating expenses increased by 2.3%, mainly due to an increase in salaries and employee expenses, credit loss provisions and other losses, and rent and building expenses, partially offset by a decrease in other general and administrative expenses and depreciation and amortization.

The reason for the increase (decrease) in total provision (reversal) for expected credit losses and other losses, net during the current quarter compared to the same quarter of the previous year is

Net provision for expected credit losses and other losses increased by 9.5%, mainly due to growth in the financing portfolio.

The reason for the increase (decrease) in special commission income during the current quarter compared to the previous quarter is

Net special commission income decreased marginally by 0.7%, mainly due to an increase in total special commission expenses despite an increase in total special commission income.

The reason for the increase (decrease) in net profit during the current quarter compared to the previous quarter is

Net profit increased by 2.2% due to an increase in total operating income.

Total operating income increased by 4.7%, mainly due to an increase in unrealized fair value gains through the income statement, banking service fee income, gains on disposal of debt securities at fair value through other comprehensive income, and foreign currency exchange gains.

Total operating expenses increased by 8.9%, mainly due to an increase in other general and administrative expenses, credit loss provisions and other losses, and salaries and employee expenses, partially offset by a decrease in depreciation and amortization.

The reason for the increase (decrease) in total provision (reversal) for expected credit losses and other losses, net during the current quarter compared to the previous quarter is

Net provision for expected credit losses and other losses increased by 22.0%, mainly due to growth in the financing portfolio and a decrease in recovery amounts collected during the current quarter.

The reason for the increase (decrease) in special commission income during the current period compared to the same period of the previous year is

Net special commission income increased marginally by 0.4%, mainly due to an increase in total financing and investment returns.

The reason for the increase (decrease) in net profit during the current period compared to the same period of the previous year is

Net profit increased by 3.4% due to an increase in total operating income and a decrease in total operating expenses.

Total operating income increased by 2.0%, mainly due to an increase in unrealized fair value gains through the income statement, foreign currency exchange fees, net special commission income, banking service fee income, and other operating income, partially offset by a decrease in gains on disposal of debt securities at fair value through other comprehensive income.

Total operating expenses decreased by 1.2%, mainly due to a decrease in other general and administrative expenses and depreciation and amortization, partially offset by an increase in salaries and employee expenses, rent and building expenses, and credit loss provisions and other losses.

The reason for the increase (decrease) in total provision (reversal) for expected credit losses and other losses, net during the current period compared to the same period of the previous year is

Net provision for expected credit losses and other losses increased by 1.9%, mainly due to growth in the financing and investment portfolio.

Statement of the type of auditor’s report

Unmodified opinion

Any remark in the auditor’s report represented by an other matter paragraph, qualification, emphasis of matter, disclaimer of opinion, or adverse opinion as stated in the auditor’s report

None.

Reclassification of comparative figures

Certain prior period figures have been reclassified to conform to the current period presentation.

Additional information

Earnings per share for the six-month periods ended June 30, 2026 and 2025 were SAR 0.70 and 0.68, respectively, calculated by dividing adjusted net profit after the cost of first-tranche sukuk by 1.248 million shares and 1.247 million shares, respectively, representing issued and outstanding shares after accounting for the purchase of 1.7 million treasury shares.

The bank adjusted comparative period balances with respect to investments and other reserves.