Preliminary Report: Arab National Bank Q2 2026 Results

Item

Current Period

Previous Corresponding Period

Change %

Total special commission income from financing

6,336

6,020

5.249

Total special commission income from investments

1,610

1,416

13.7

Net special commission income from financing

3,174

3,105

2.222

Net special commission income from investments

1,104

1,005

9.85

Total operating profit (loss)

5,331

5,086

4.817

Net profit (loss) before Zakat and tax

3,279

3,076

6.599

Net profit (loss) attributable to shareholders of the parent

2,782

2,640

5.378

Total comprehensive income attributable to shareholders of the parent

2,840

2,881

-1.423

Total assets

295,516

269,618

9.605

Investments

64,697

54,948

17.742

Loans and advances portfolio (financing and investment)

205,782

186,476

10.353

Customer deposits

217,751

201,723

7.945

Total shareholders' equity (excluding non-controlling interests)

52,436

43,591

20.29

Total operating expenses before provision for credit losses and other losses

1,755

1,602

9.55

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

315

422

-25.355

Earnings (loss) per share

1.28

1.3

All figures are in (million) Saudi Riyals

Item

Value

Percentage of Capital

Gains (losses) from change in fair value of investment properties

All figures are in (million) Saudi Riyals

Item

Explanation

Reason for the increase (decrease) in special commission income during the current quarter compared to the same quarter of the previous year:

Total special commission income rose by 2.06% due to a 10.35% increase in the net loans and advances portfolio and a 17.74% increase in net investments.

Reason for the increase (decrease) in net profit during the current quarter compared to the same quarter of the previous year:

Net income increased compared to the same quarter last year. This is primarily attributed to higher net gains/(losses) from financial instruments measured at fair value through profit or loss, net gains/(losses) from the sale of non-trading investments, net foreign exchange gains, other net operating income, and net special commission income, along with a decrease in the net provision for expected credit losses and other provisions.

This was offset by increased costs related to salaries and employee-related expenses, other general and administrative expenses, depreciation and amortization, and building-related expenses. Additionally, there was a decrease in dividend income, net trading income, and net fees and commissions.

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

The provision for expected credit losses decreased during the period, mainly due to the improved credit quality of the portfolio. The bank's resilient asset quality, effective provisioning approach, and the continued effectiveness of credit policies in line with IFRS 9 requirements collectively resulted in a decrease in the net total provision for expected credit losses and other losses.

Reason for the increase (decrease) in special commission income during the current quarter compared to the previous quarter:

The improvement in special commission expenses effectively mitigated the slight decrease of -0.50% in total special commission income.

Reason for the increase (decrease) in net profit during the current quarter compared to the previous quarter:

Net income increased compared to the previous quarter. This is mainly attributed to higher net gains/(losses) from financial instruments measured at fair value through profit or loss, net special commission income, net foreign exchange gains, and net fees and commissions, along with a decrease in depreciation and amortization and building-related expenses.

This was offset by increased costs related to the net provision for expected credit losses and other provisions, other general and administrative expenses, and salaries and employee-related expenses. Additionally, there was a decrease in net trading income, dividend income, other net operating income, and net gains/(losses) from the sale of non-trading investments.

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

The provision for expected credit losses increased during the period. This rise is primarily linked to portfolio growth and alignment with macroeconomic assumptions in accordance with the methodology of IFRS 9. This reflects a proactive approach that enhances the bank's financial position and stability, which cumulatively resulted in an increase in the net total provision for expected credit losses and other losses.

Reason for the increase (decrease) in special commission income during the current period compared to the same period of the previous year:

Total special commission income rose by 6.86% due to a 10.35% increase in the net loans and advances portfolio and a 17.74% increase in net investments.

Reason for the increase (decrease) in net profit during the current period compared to the same period of the previous year:

Net income increased compared to the same period last year. This is mainly attributed to higher net special commission income, net gains/(losses) from the sale of non-trading investments, net gains/(losses) from financial instruments measured at fair value through profit or loss, other net operating income, and net foreign exchange gains, along with a decrease in the net provision for expected credit losses and other provisions.

This was offset by increased costs related to salaries and employee-related expenses, other general and administrative expenses, depreciation and amortization, and building-related expenses. Additionally, there was a decrease in net fees and commissions, dividend income, and net trading income.

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

The provision for expected credit losses decreased during the period, mainly due to the improved credit quality of the portfolio. The bank's resilient asset quality, effective provisioning approach, and the continued effectiveness of credit policies in line with IFRS 9 requirements collectively resulted in a decrease in the net total provision for expected credit losses and other losses.

Auditor's report type:

Unmodified opinion.

Any observation in the auditor's report (emphasis of matter, qualification, note, disclaimer, or adverse opinion):

None.

Reclassification of some comparative figures:

Certain comparative period figures have been reclassified/revalued to conform to the current period's presentation, in accordance with the condensed consolidated interim financial statements.

Additional Information