Arab National Bank (1080) investor relations material

Executive summary

• Achieved resilient financial performance in H1 2026, with net income growth supported by increased operating revenues and disciplined cost management, despite a challenging environment.

• Net income for the six months ended June 30, 2026, was SAR 2.78 billion, a 5.3% increase year-over-year.

• Total assets reached SAR 295.5 billion as of June 30, 2026, up from SAR 269.6 billion a year earlier, reflecting robust balance sheet growth.

• Maintained robust asset quality and strong capital position, with prudent risk management and a focus on quality over size in asset growth.

• Continued execution of strategic initiatives across core business lines, digital transformation, ESG, and operational efficiency.

Financial highlights

• Net income for Q2 2026 reached SAR 1.42 billion, up 6.5% year-over-year; operating income for H1 2026 was SAR 5.33 billion, up 4.8% year-over-year.

• Loans and advances stood at SAR 205.8 billion, up 10.4% year-over-year but down 3.6% sequentially; customer deposits at SAR 217.8 billion, up from SAR 201.7 billion year-over-year.

• Net interest margin stabilized at 3.28%, down 36 bps year-over-year but up 10 bps sequentially.

• Cost to income ratio improved to 32.93%, down 143 bps year-over-year.

• Total equity attributable to shareholders increased to SAR 43.2 billion from SAR 40.2 billion a year earlier.

Outlook and guidance

• FY 2026 guidance targets mid-to-high single-digit loan growth, NIM above 3%, cost to income ratio below 33%, and ROAE above 10% after Sukuk issuance.

• Cost of risk expected in the 40–50 bps range; total capital adequacy ratio to remain above 19%.

• The bank continues to monitor geopolitical risks and economic volatility, with ongoing stress-testing and credit exposure reviews.

• IFRS 18 implementation is underway, expected to impact financial statement presentation but not total profit or equity.

• An interim dividend of SAR 1.3 billion for H1 2026 was approved, to be distributed in August 2026.