Riyad Bank (1010) Q2 2026 earnings summary

Executive summary

• Entered H2 2026 with a strong balance sheet, disciplined risk management, and a well-diversified business model, maintaining resilience amid a dynamic regional environment.

• Achieved sustainable balance sheet growth and quality earnings expansion in 1H 2026, with resilient financial ratios and strong capital position.

• Strategic focus on supporting clients, sustainable growth, innovation, digital transformation, ESG integration, and executing the 2030 strategy.

• Interim condensed consolidated financial statements for the six months ended 30 June 2026 were reviewed by independent auditors with no material misstatements identified.

• The Group operates 332 branches in Saudi Arabia and has international presence in London, Houston, and Singapore, offering a full range of conventional and Islamic banking services.

Financial highlights

• Total assets reached SAR 534 billion as of June 30, 2026, up 3% YTD; net loans at SAR 378 billion (+1% YTD), customer deposits at SAR 348.3 billion (+5% YTD).

• Net income for 1H 2026 was SAR 5.3 billion, up 4% YoY; operating income at SAR 9.35 billion, up 4% YoY.

• Cost-to-income ratio improved to 29.2%, a 70 bps YoY improvement, with cost base up just 1.1%.

• Net special commission income grew 4% YoY to SAR 6.8 billion, with margin contraction to 2.81%.

• Fee and other income rose 2% YoY, supported by product expansion and cross-sell activities.

Outlook and guidance

• Loan and net special commission income guidance revised to mid-to-high single digit growth for the remainder of 2026.

• Cost-to-income ratio expected to remain below 30%; ROE guidance set above 15.75%.

• Tier 1 capital ratio guidance raised to above 17.5% following the SAR 10 billion AT1 Sukuk issuance.

• Medium-term ROE aspiration remains in the high teens.

• The Group is actively assessing the impact of IFRS 18, which will affect future financial statement presentation.