Top Saudi Banks Trim 2026 Loan Growth Targets

Saudi Arabia's three largest lenders — Al Rajhi Bank, Saudi National Bank (SNB) and Riyad Bank — have lowered their loan growth targets for 2026, even as they posted stronger quarterly earnings backed by wider lending margins.

Al Rajhi Bank cut its 2026 financing growth guidance to low single-digit from low-to-mid single-digit. The bank reported first-half 2026 net income of SAR 13.8 billion, up 14% year-on-year, helped by an increase in the sector's net interest margin.

SNB trimmed its 2026 loan growth outlook to mid-single-digit from high-single-digit, and set a mid-single-digit target for net interest income growth. It also reported strong quarterly results, supported by sector net funded income growth of about 9%.

Riyad Bank lowered its loan growth guidance to mid- to high-single-digit from high-single-digit. Its second-quarter 2026 net income came in at SAR 2.65 billion, roughly 2% higher year-on-year and above earlier analyst estimates of SAR 2.4 billion. The bank also reduced its 2026 outlook for net special commission income to mid- to high-single-digit growth.

What it means for the sector

Across 10 listed Saudi banks, net loans reached SAR 3.25 trillion (about USD 865.2 billion) in the second quarter of 2026, up around 7% year-on-year. The sector's net interest margin held near 2.9–2.96%, up 5 basis points from a year earlier, while net funded income rose about 9% to roughly SAR 32.6 billion.

Overall sector loan growth eased to about 6.9% year-on-year — the second straight quarter of single-digit growth, with Al Rajhi and SNB among the slower performers. The trend suggests banks are prioritizing profitability and margins over rapid lending expansion. For residents and businesses, more measured loan growth may signal tighter conditions ahead, though healthy bank earnings point to continued stability in the Kingdom's financial system.

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