4 Days
Source:
الاقتصادية
Bank Albilad profits slow despite loan growth
Al Bilad Bank recorded a net profit of 791.6 million riyals in the second quarter of 2026, representing a 3.4% increase year-over-year, despite a slowdown in profit growth—the slowest in over six years. The profits exceeded analyst expectations, which had forecasted 776 million riyals, as the bank managed to offset margin pressures through growth in investment income and improved performance compared to the previous quarter. It is noted that growth in the loan portfolio did not translate into strong profits, as loans increased by 15.3% to 133.4 billion riyals, yet net financing income grew by only 8.5%, with a 4.5% decrease compared to the first quarter. The net return on the average loans declined from 2.94% to 2.77%. Additionally, rising costs—particularly deposit expenses which increased by 23.3%—restricted profitability growth, following an 18.8% annual increase in the bank’s deposits to 147.2 billion riyals. The loan-to-deposit ratio was reduced to 90.6%. Furthermore, other income sources fell by 6.3%, while credit loss provisions rose by 14%. Although profits beat expectations, sustainable growth hinges on improving the deposit mix, expanding the financing margin, and enhancing fee income.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)