Al Rajhi Banking and Investment (1120) Q3 2026 earnings summary

Executive summary

• 9M 2026 net income after Zakat rose 13.3% YoY to SAR 20.87bn, supported by operating income growth of 13.4%.

• Assets reached SAR 1,075.6bn, up 1.8% YoY; net financing grew 2.9% YTD, with liquidity and capital above regulatory requirements.

• Management said the three-year strategy was nearing completion, with most KPIs achieved or expected by year-end.

Financial highlights

• 9M operating income rose 13.4% to SAR 32.528bn; net financing and investment income increased 16.7% to SAR 25.33bn, while non-yield income grew 3.1% to SAR 7.20bn.

• 9M net income after Zakat was SAR 20.87bn, up 13.3% YoY; Q3 net income was SAR 7.106bn, up 11.7% YoY and 1.3% QoQ.

• 9M operating expenses increased 11.8% to SAR 7.208bn; pre-provision profit rose 14% to SAR 25.32bn.

• 9M fee income grew 14.9% and exchange income 12.2%; fee growth spanned cards, payments, trade, cash management, brokerage and investment banking.

Outlook and guidance

• FY 2026 financing growth guidance was revised to low single digits from low-to-mid single digits; NIM expansion guidance remained 30–40 bps.

• Cost-to-income guidance remained below 23% versus 22.2% actual; ROE guidance was above 23.5% versus 23.3% actual, and Tier 1 guidance above 21% versus 21.5% actual.

• Cost-of-risk guidance was revised to 0.35–0.45% from 0.30–0.40%; 9M actual was 0.41%.

• Q4 cost of funds was expected to rise versus Q3, potentially pressuring sequential NIM; full-year NIM was still expected to expand YoY.

• The next three-year strategy was being developed for presentation next year, subject to board approval in December.