Riyad Capital Reiterates Saudi National Bank's Buy Rating After Q2 Earnings

04:58 AM EDT, 07/23/2026 (MT Newswires) -- Riyad Capital maintained its investment view on Saudi National Bank (SASE:1180) after the Tadawul-listed lender published its second-quarter results. "Operating income increased by +11% Y/Y and +10% Q/Q to SAR 10.6 bln, in line with our estimate SAR 10.5 bln, driven mainly by stronger [net special commission income] and higher non-funded income, particularly from FX, Investment-related income and International. This was partially offset by softer trade finance (likely reflecting geopolitical disruptions) and weaker capital markets activity," according to a Wednesday note. The bank's net income also climbed 8% year over year to 6.61 billion Saudi riyals, against the research firm's forecast of 6.34 billion riyals. Analysts noted that increased operating income, robust credit quality and sustained cost control supported the sequential performance. "The quarter reinforces our constructive view on SNB, with resilient profitability supported by a +17 [basis point] Q/Q expansion in [net interest margin] to 3.02%, continued cost discipline, and solid asset quality ([non-performing loans ratio excluding POCI] at 0.67%). Coupled with a stronger funding profile and resilient earnings mix, we believe SNB remains well positioned to sustain healthy profitability. We therefore maintain our Buy rating and target price [of 51 riyals]," Riyad Capital wrote.