aljazira bank (1020) investor relations material

Executive summary

• Net income for 1H 2026 rose 14% year-over-year to SAR 848 million, driven by growth in commercial and consumer financing, strong customer acquisition, and lower impairment charges.

• Total assets increased to SAR 181.2 billion, up 15% year-over-year, supported by growth in financing and investments.

• Customer deposits grew 16% year-over-year to SAR 132.7 billion, with CASA share rising to 44.6%.

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

• The bank reinforced its capital base with successful Tier 1 Sukuk issuances.

Financial highlights

• Net income for 1H 2026 reached SAR 848 million, up 14% YoY; quarterly net income for 2Q 2026 was SAR 443 million, up 16% YoY.

• Total assets grew to SAR 181.2 billion, with financing up 17% YoY and investments up 5% YTD.

• Net financing and investment income increased 10% YoY to SAR 1,661 million; fee and other income rose 6% YoY, now accounting for 30% of total revenues.

• Cost-to-income ratio improved to 51.8% in 1H 2026.

• EPS for 1H 2026 was SAR 0.51, up from SAR 0.50 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 assessing the impact of IFRS 18 and monitoring geopolitical and macroeconomic risks, adjusting ECL scenario weightings accordingly.

• Management reaffirmed full-year guidance for 2026, citing strong capital position and ongoing strategic execution.