Saudi Awwal Bank (SAB) has reported a net profit of SR2.1 billion for the first quarter of 2026, according to Lubna S. Olayan, chair of the board of directors. The bank's total operating income remained stable at SR3.6 billion ($960 million), reflecting the strength of its diversified business model and continued momentum across core operations.
Financial Performance Overview
Net profit after zakat and income tax stood at SR2.1 billion, a 2 percent decline year on year. This decrease is attributed to a prudent and forward-looking approach to risk management, which reinforces the bank's balance sheet strength and positions SAB to navigate uncertain market conditions driven by the geopolitical environment.
Key Business Segments
In retail banking, SAB achieved 2 percent quarter-on-quarter growth and 10 percent year-on-year growth, despite a moderating market. Corporate banking also recorded strong momentum, with a healthy pipeline driving 3 percent quarter-on-quarter growth. Fee income declined due to recent regulatory changes affecting consumer fees, partially offset by gains from the bank's investment portfolio.
Liquidity and Balance Sheet Strength
Olayan emphasized the bank's liquidity position as a key strength, with customer deposits increasing in line with strategic priorities, supporting continued lending growth and balance sheet expansion. SAB remains focused on preserving a fortress balance sheet underpinned by strong capital and disciplined risk management.
Sustainability and Recognition
SAB's commitment to sustainability was recognized with an upgrade in its MSCI ESG rating to 'AA,' reflecting progress in embedding ESG principles. The bank contributed SR24 million to community development programs across the Kingdom. It was named Best Bank for ESG in Saudi Arabia by Euromoney for the third consecutive year and Best Bank in Saudi Arabia 2025.
Future Outlook
SAB is well-positioned to deliver sustainable growth, supported by a strong capital base, robust liquidity, and a clear strategic roadmap aligned with Saudi Arabia's Vision 2030. The bank will continue focusing on disciplined execution, customer-centric innovation, and prudent risk management.
Olayan expressed gratitude to customers, employees, regulators, and strategic partner HSBC, as well as the Saudi Central Bank and Capital Market Authority, for their ongoing support.
