The Saudi National Bank (1180) investor relations material

Executive summary

• Net income for 1H 2026 rose 7% year-over-year to SAR 13.04 billion, with Q2 net income reaching a record SAR 6.6 billion and return on tangible equity at 16.9%.

• Total assets reached SAR 1.24 trillion, up 3% YTD, with a diversified financing portfolio and robust capital/liquidity positions.

• Operating income for H1 2026 exceeded SAR 20.23 billion, up 6% YoY, driven by growth in net special commission income and fee/other income.

• Strong deposit inflows, disciplined cost management, and digital/AI investments supported performance and operational excellence.

• The bank remains central to Vision 2030, focusing on innovation, SME/retail expansion, and operational excellence.

Financial highlights

• Net income for H1 2026: SAR 13.04 billion (+7% YoY); Q2 net income: SAR 6.6 billion (record high).

• Operating income for H1: SAR 20.23 billion (+6% YoY); net special commission income: SAR 15.4 billion (+7% YoY).

• Customer deposits grew by SAR 64 billion YoY to SAR 698.2 billion, outpacing financing growth and strengthening funding.

• Cost-to-income ratio at 25.6% (group), 23.1% (domestic), both improved YoY.

• Return on tangible equity at 16.9%; dividend payout ratio above 50% with SAR 1.15/share interim dividend.

Outlook and guidance

• Financing growth guidance revised down to mid-single digits, focusing on value-driven growth.

• Upgraded cost of risk guidance to 10–20 bps due to strong credit management and recoveries.

• Profitability ratios and return on tangible equity guidance unchanged at 16%-17% (adjusted: 17%-18%).

• Continued focus on cost optimization and maintaining robust capital adequacy.

• Scenario analysis indicates immaterial impact on credit losses from current macro/geopolitical risks.