aljazira bank (1020) investor relations material

Executive summary

• Net income for 1H 2026 rose 14% YoY to SAR 847.9 million, driven by funded and unfunded revenues, with strong growth in commercial and consumer financing and high customer acquisition rates.

• Customer deposits increased 16% YoY to SAR 132.7 billion, reflecting greater brand recognition and market share gains.

• Operational transformation and digitalization initiatives improved efficiency, reduced technology costs, and enhanced customer experience.

• The bank maintained a strong capital position, with a total capital adequacy ratio of 19.19% as of 30 June 2026.

• Total assets increased to SAR 181.2 billion from SAR 157.8 billion a year earlier, driven by growth in financing and investments.

Financial highlights

• Net income for 1H 2026 reached SAR 847.9 million, up 14% YoY; quarterly net income for 2Q 2026 was SAR 443 million, up 16% YoY.

• Operating income for the six-month period reached SAR 2,368.2 million, up from SAR 2,181.1 million year-over-year.

• Net financing and investment income was SAR 1,660.5 million, compared to SAR 1,515.6 million in the prior year.

• EPS for 1H 2026 was SAR 0.51, up from SAR 0.50 YoY.

• Net impairment charge for financing and other financial assets was SAR 171.2 million, down from SAR 199.9 million YoY.

Outlook and guidance

• FY 2026 guidance targets low-teens digit financing growth, net margin of 2.05–2.10%, cost of risk at 35–40 bps, cost-to-income below 52%, and ROAE above 7.75%.

• The bank is actively assessing the impact of IFRS 18, which will affect presentation and disclosure in future financial statements.

• Management continues to monitor geopolitical risks and macroeconomic uncertainties, adjusting ECL scenario weightings to reflect a more cautious outlook.