Coverage: weekly note · Information to 9 April 2026
TGB Premium Intelligence — Open Access
This report was originally available exclusively to TGB Premium subscribers. It is now part of our open research archive.
TGB Weekly Research Note · 9 April 2026
Major Saudi and UAE banks lifted 2025 earnings on corporate lending and faster fee growth, but at Emirates NBD a higher tax charge absorbed most of the pre-tax gain.
The desk view
Two major Saudi banks and two major UAE banks all reported higher 2025 profits. Al Rajhi Bank's net income after zakat rose 25.7% to SAR24.8 billion and the Saudi National Bank's (SNB) 18% to SAR25.0 billion. First Abu Dhabi Bank's (FAB) net profit rose 24% to AED21.11 billion, while Emirates NBD's profit rose 4% to AED24.0 billion on 10% higher pre-tax profit. Two forces did most of the work: strong loan growth, led by corporate and SME credit in Saudi Arabia and at Emirates NBD, and fee and other non-interest income growing faster than net interest income at every bank. The Saudi lenders kept more of their pre-tax gains: Al Rajhi Bank's zakat rose 26.2% against 25.8% growth in pre-zakat income, while Emirates NBD's tax charge rose 41% and FAB's taxes and non-controlling interests 43%, well ahead of pre-tax profit.
Saudi lenders: corporate credit and fees carried the year
Al Rajhi Bank reported net income after zakat of SAR24,792 million for 2025, up 25.7% and the highest in its history. Total operating income rose 22.0% to SAR39,094 million: net financing and investment income grew 20.1%, but fees and other income grew faster, by 28.2% to SAR9,248 million. Fees from banking services alone rose 25.1%, which the bank linked to management initiatives to improve fee income. The net financing and investment margin edged up to 3.16% from 3.13%.
Net financing grew 8.6% to SAR753 billion, with corporate financing up 24.1% on 51.0% growth in the SME book, while retail financing grew only 1.4% and mortgages 3.2%. On the balance sheet, net new credit went mainly to companies, though retail securitisation, discussed below, holds down the retail figure.
SNB's net income attributable to equity holders rose 18% to SAR25,013 million. Net special commission income grew 5% to SAR29,155 million, while fee and other income grew 21% to SAR10,039 million, driven by investment income, FX, trade finance and international business. Net financing rose 11% to SAR729.3 billion, led by wholesale financing, which grew 21% to SAR354 billion, and mortgages, up 8% to SAR195 billion. Net MSME financing rose 48% to SAR80 billion. SNB's net special commission margin fell 15bp to 2.87%, so its growth came from volumes and fees rather than pricing.
Al Rajhi Bank's chairman said the bank is investing in digital transformation, financial innovation and customer experience in line with Saudi Vision 2030, and SNB's stated ESG vision is to propel the nation towards Vision 2030 and beyond. Neither results document sizes lending tied directly to Vision 2030 projects; the measurable shift in both books is towards corporate, wholesale and SME credit.
UAE lenders: strong pre-tax growth, thinner after-tax gains
Emirates NBD posted a record AED29.8 billion profit before tax, up 10%, on total income up 12% to AED49.3 billion. Non-funded income rose 18% to AED13.8 billion, faster than the 10% rise in net interest income, and the bank attributed a substantial increase in fee income to new structured credit, commodity and investment products. Gross loans grew a record AED129 billion, or 24%, and lending in Saudi Arabia rose 48%. Corporate and institutional lending rose by AED100 billion, more than 40%. Impairment allowances rose to AED1.5 billion from AED0.1 billion. Yet the tax charge rose 41% to AED5.8 billion from AED4.1 billion, leaving profit after tax up only 4% at AED24.0 billion, a 6 percentage point gap with pre-tax growth. The bank cited falling rates and a higher tax charge as headwinds; its net interest margin fell 18bp to 3.46%.
FAB's net profit rose 24% to a record AED21.11 billion and profit before tax 27% to AED25.20 billion, a gap of 3 percentage points. Taxes and non-controlling interests rose 43% to AED4,090 million, and the bank said it had absorbed the corporate tax increase. FAB's stronger pre-tax growth reflects lower credit costs and its revenue mix: net impairment charges fell 17% to AED3.28 billion, and while net interest income rose only 4%, non-interest income jumped 36% to AED16.35 billion and supplied 45% of group revenue. FAB reclassified some hedge-related costs between the two lines in the fourth quarter, which affects that split. Fees and commissions grew 28%. Net loans grew 17% to AED616 billion, including 35% growth in the international book. FAB's net interest margin fell 9bp to 1.84%, which it attributed to lower benchmark rates.
Selected Gulf banks, 2025 results
| Bank | Net profit, 2025 | Change | Loan growth | Fee or non-interest income growth |
|---|---|---|---|---|
| Al Rajhi Bank | SAR24.8bn | +25.7% | +8.6% | +28.2% |
| Saudi National Bank | SAR25.0bn | +18% | +11% | +21% |
| Emirates NBD | AED24.0bn | +4% | +24% | +18% |
| First Abu Dhabi Bank | AED21.11bn | +24% | +17% | +36% |
Source: Al Rajhi Bank, 4Q 2025 Earnings Release, 27 January 2026; The Saudi National Bank (SNB), 4Q 2025 Investor Presentation, 28 February 2026; Emirates NBD, Emirates NBD delivered a record AED 29.8 billion profit before tax, up 10% (FY 2025 results press release), 26 January 2026; First Abu Dhabi Bank (FAB), Management Discussion & Analysis for the full year ended 31 December 2025, 28 January 2026.
Loan growth is net financing for the Saudi banks and FAB, and gross loans for Emirates NBD; fee measures are fees and other income (Saudi banks) and non-funded or non-interest income (UAE banks).
Fee diversification is real but uneven
On the banks' own figures, fees and other income made up 23.7% of Al Rajhi Bank's operating income in 2025. At SNB the share was 25.6%. At Emirates NBD non-funded income was 28.0% of total income, and at FAB non-interest income reached 45% of revenue. In each case the non-interest line grew faster than the interest line, which matters because margins narrowed at SNB, Emirates NBD and FAB.
The sources of fee growth differ, however. SNB's increase came partly from investment income and FX, and was partly offset by lower brokerage income, while FAB's 40% rise in FX and investment income sat alongside the 28% rise in fees and commissions. Treasury and investment gains tend to be more volatile than banking-service fees, so recurring non-interest income is likely to be lower than the headline ratios suggest.
Fee or non-interest income growth, 2025, %
Source: First Abu Dhabi Bank (FAB), Management Discussion & Analysis for the full year ended 31 December 2025, 28 January 2026; Al Rajhi Bank, 4Q 2025 Earnings Release, 27 January 2026; The Saudi National Bank (SNB), 4Q 2025 Investor Presentation, 28 February 2026; Emirates NBD, Emirates NBD delivered a record AED 29.8 billion profit before tax, up 10% (FY 2025 results press release), 26 January 2026.
Margins and funding set the pace for 2026
Guidance points to slower growth. SNB guides 2026 financing growth to high single digits, net special commission income growth to mid single digits and return on tangible equity to 16% to 17%, against 17.2% in 2025. Emirates NBD expects its net interest margin at 3.1% to 3.3% in 2026 and group loan growth in the mid-teens, and warned that, with continued tight liquidity in Saudi Arabia, growth may moderate.
At Al Rajhi Bank, customer deposits rose 1.9% in 2025 against 8.6% growth in net financing, while debt issued and term financing rose 113.2% to SAR79,867 million. The bank also securitised almost SAR14 billion of mortgages and consumer loans during the year. We would expect Saudi lenders to lean further on wholesale funding, securitisation and fee businesses that need less balance sheet if deposit growth stays weak.
What to watch
- 2026: SNB guidance of high-single-digit financing growth and return on tangible equity of 16% to 17%.
- 2026: Emirates NBD guidance of a 3.1% to 3.3% net interest margin and mid-teens loan growth.
Primary sources: Al Rajhi Bank, 4Q 2025 Earnings Release, 27 January 2026; The Saudi National Bank (SNB), 4Q 2025 Investor Presentation, 28 February 2026; Emirates NBD, Emirates NBD delivered a record AED 29.8 billion profit before tax, up 10% (FY 2025 results press release), 26 January 2026; First Abu Dhabi Bank (FAB), Management Discussion & Analysis for the full year ended 31 December 2025, 28 January 2026; Emirates NBD, Emirates NBD FY 2025 Results Announcement Analyst Call and Webcast (transcript), 28 January 2026.