Saudi Awwal Bank (1060) investor relations material

Executive summary

• Net income for H1 2026 reached SAR 4.4 billion, up 4% year-over-year, with strong loan growth and resilient asset quality despite regional uncertainties.

• Loan growth was 13% year-over-year, balanced between corporate and retail, with corporate driven by large institutional clients and retail by mortgages.

• Fee income rebounded 40% quarter-on-quarter in Q2, supported by trade-related activities and efficiencies in credit card programs.

• Maintained prudent liquidity and increased loan loss coverage through overlays, with SAR 100 million reversed in Q2 as conditions improved.

• Strategy execution remains on track, with a leading position in Vision 2030 giga-programmes and robust asset quality, NPL ratio stable at 1.3%.

Financial highlights

• Net income for H1 2026 was SAR 4,417 million, up from SAR 4,262 million year-over-year; Q2 net income was SAR 2.3 billion, up 12% sequentially.

• Net special commission income for H1 2026 was SAR 5,820 million, up from SAR 5,766 million year-over-year; NIM stable at 2.53%.

• Gross loans grew 13% year-over-year to SAR 327.6 billion; customer deposits rose 15% year-over-year to SAR 342.2 billion.

• Cost efficiency ratio at 30.4% for H1 2026, slightly above plan; cost of risk at 11 bps, ahead of guidance.

• CET1 ratio at 14.2% as of 2Q26, with total capital adequacy ratio at 18.73%.

Outlook and guidance

• Loan growth guidance maintained at above 10%, with NIM expected between 2.5% and 2.6% for 2026.

• Cost efficiency guidance below 29.5%, with cost of risk guidance at 25–35 bps.

• CET1 ratio expected to remain above 14%, with ROTE guidance of 14.0–15.0%.

• Management remains vigilant of geopolitical risks and continues to stress test the financing portfolio.

• Overlay reversals and further capital optimization possible if conditions remain favorable.