Saudi Awwal Bank (1060) Q1 2026 earnings summary

Executive summary

• Achieved 3% QoQ and 10% YoY loan growth in 1Q26, outpacing the sector and supporting Vision 2030 giga-programmes.

• Interim results for the three months ended 31 March 2026 show stable operating performance with total assets of SAR 459.7 billion, up from SAR 454.5 billion at year-end 2025.

• Maintained strong asset quality with a stable NPL ratio of 1.3% (excl. POCI) and low cost of risk, despite geopolitical uncertainty.

• Net income after Zakat and income tax was SAR 2,086 million, a slight decrease from SAR 2,135 million in Q1 2025.

• Strategic transformation since 2021 has nearly doubled annual revenue and improved key efficiency and return metrics.

Financial highlights

• Net income for 1Q26 reached SAR 2.1bn, including a significant ECL overlay for geopolitical risks.

• Total operating income for Q1 2026 was SAR 3,612 million, nearly flat compared to SAR 3,620 million in Q1 2025.

• Gross loans grew to SAR 314.7bn (+10% YoY), customer deposits to SAR 331.4bn (+14% YoY).

• Basic and diluted EPS was SAR 0.94, compared to SAR 0.98 in Q1 2025.

• Total equity rose to SAR 81.0 billion from SAR 79.3 billion at year-end 2025.

Outlook and guidance

• 2026 guidance maintained: 10% loan growth, NIM of 2.5–2.6%, cost efficiency ratio below 29.5%, ROTE of 14–15%.

• Asset quality expected to remain strong with cost of risk at 25–35bps; CET1 ratio to stay above 14%.

• Vigilant of geopolitical risks but see opportunities in the current climate; no immediate need to shift guidance.

• The bank is proactively monitoring the evolving geopolitical situation in the Middle East and its impact on credit risk.