Al Rajhi Increases Net Income 11.7% to 7.11 Billion Riyals in Third Quarter

Al Rajhi Bank's net income in the third quarter of 2026 rose by 11.7% year-on-year to 7.11 billion riyals, driven by financing margin expansion despite limited balance sheet growth.

Net financing income grew 20.3%, while total financing income rose 8.1% to 12.7 billion riyals, whereas investment income declined 6.8% to 2.3 billion riyals. The bank stated that margin growth resulted from a lower cost of funding thanks to its low-cost deposit base.

Net expected credit loss provisions increased 49.5% to 852 million riyals in the quarter, compared to the same period last year. Over the first nine months, net income reached 20.9 billion riyals, up 13.3%, while assets reached 1.1 trillion riyals and deposits stood at 700.3 billion riyals.

The performance reflects the bank's ability to convert its large deposit base into higher margins, but the sharp rise in provisions remains under monitoring at a time when the financing portfolio grew by only 2.5% to 774.9 billion riyals.

What do these terms mean?

Net Financing Income: The difference between the returns the bank earns on financing and what it pays for the funds it uses for lending.

Credit Loss Provision: An amount set aside by the bank to cover loans that customers may be unable to repay.

Assets: Everything the bank owns, including cash, loans, investments, and other assets, showing the scale of its business.