Saudi Arabia's Al Rajhi Bank reported first-half 2026 net income of SAR 13.764 billion, up 14.2% year on year, as the kingdom's largest Islamic lender continued to translate balance sheet strength into sector-leading returns.

The bank said total assets grew 1.8% year on year to SAR 1.1 trillion, with return on equity of around 23% remaining the highest among major Saudi peers. Year-to-date balance sheet growth of 1.1% and financing portfolio growth of 1.2% point to a measured pace of expansion in the opening months of the year.

PROFIT GROWTH OUTPACES BALANCE SHEET

A 14.2% rise in net income against 1.8% growth in total assets shows that Al Rajhi's earnings improvement is being driven by margin, mix and efficiency rather than sheer balance sheet expansion. The gap between profit and asset growth is the most direct indicator of underlying returns on incremental deployment.

Delivering return on equity of around 23% at this scale is a distinctive outcome even by Gulf standards, and helps explain the bank's continued premium valuation. Sustaining ROE at that level typically requires a combination of strong core margins, disciplined cost management and constrained loan loss experience.

Year-to-date balance sheet growth of 1.1% and financing portfolio growth of 1.2% are broadly aligned, suggesting that funding and lending have expanded roughly in tandem so far this year. That symmetry helps keep liquidity and structural ratios stable through the first half.

REGULATORY RATIOS COMFORTABLE

The bank said its loan-to-deposit ratio remained below the regulatory cap set by the Saudi Central Bank, giving Al Rajhi headroom to grow financing further should demand warrant. Operating below the cap also provides a cushion against sudden shifts in deposit dynamics.

The result confirms Al Rajhi's position as one of the most profitable large banks in the wider Gulf region. Vision 2030-related activity continues to drive credit demand in Saudi Arabia, and Al Rajhi's scale in retail, mortgages and, increasingly, corporate finance leaves it well placed to participate.

The full second-quarter earnings release and supporting materials are available on Al Rajhi Bank's investor relations pages, alongside the bank's regulatory disclosures on the Saudi Exchange.

Reaching SAR 13.764 billion in first-half net income, an increase of 14.2% year on year, at a total asset base of SAR 1.1 trillion illustrates the scale at which Al Rajhi is generating returns in the current Saudi cycle. Delivering that on a market-leading return on equity of around 23% points to sustained pricing power, disciplined cost control and manageable credit quality across the retail and corporate books. Year-to-date balance sheet growth of 1.1% and financing portfolio growth of 1.2% show the bank is prioritising quality over pace, while keeping the loan-to-deposit ratio comfortably inside the regulatory cap set by the Saudi Central Bank.

With a 1.8% year-on-year increase in total assets to SAR 1.1 trillion, Al Rajhi has kept its balance sheet at systemic scale within the Saudi market while allowing profitability to lead growth. The combination reinforces the bank's positioning as a benchmark performer in the region as it moves into the second half of 2026.