Al Rajhi Banking and Investment (1120) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 rose 14.3% year-over-year to SAR 6.8 billion, with EPS at SAR 1.59, driven by strong net yield, fee income, and strategy execution amid a healthy economic environment.

• Total assets reached SAR 1.05 trillion, up 3% year-on-year, and total equity climbed to SAR 152.6 billion.

• Operating efficiency was maintained with a cost-to-income ratio of 23.3% and ROE at 22.9%.

• Corporate and SME financing grew strongly, while retail financing was stable or slightly declined.

• Strategy 'Harmonize the Group' focused on retail cross-sell, SME growth, investment banking, and digital transformation.

Financial highlights

• Operating income reached SAR 10.53 billion, up 14.4% year-on-year, with net yield income up 18.4% and fee income up 16.8%.

• Non-yield income rose 1% year-on-year; pre-provision profit increased 13.5% year-on-year.

• Cost-to-income ratio at 23.3%; expenses rose 17.7% year-on-year.

• NIM expanded to 3.54%, up 38 bps year-on-year, driven by asset repricing and improved deposit mix.

• ROE at 22.9%, ROA at 2.6%, and EPS at SAR 1.59, up 12.5% year-on-year.

Outlook and guidance

• NIM guidance upgraded to 30–40 bps expansion for 2026; Tier 1 capital guidance above 21%.

• Cost-to-income ratio targeted below 23.0%, ROE above 23.5%, and cost of risk expected between 0.30% and 0.40%.

• Interest rates expected to remain stable in 2026; focus on digital transformation and income diversification.

• Management continues to monitor geopolitical risks and will adjust provisioning as needed.