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الاقتصادية
Bank Albilad profit growth slows amid higher deposit costs
Bank Albilad’s results for the second quarter of 2026 showed a net profit of 791.6 million riyals, a 3.4% increase compared to the previous year, marking the slowest growth rate in over six years. Despite a 15.3% rise in loans to reach 133.4 billion riyals, this did not translate into a significant increase in net financing income, which grew by only 8.5% and declined by 4.5% compared to the previous quarter. This was due to downward pressure on net income as a result of higher deposit costs and a decline in other revenues such as fees and gains. Although the loan-to-deposit ratio improved to 90.6%, the rising cost of deposits and its impact on the margin, along with increased provisions, contributed to the weak profit growth. Nevertheless, the bank was able to achieve earnings that exceeded expectations despite these challenges. However, sustainable growth depends on improving the deposit mix, expanding the financing margin, and increasing income from fees.
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