Cost Discipline Supported Saudi National Bank's Q3 Net Income Beat, BofA Says

06:06 AM EDT, 10/22/2026 (MT Newswires) -- BofA Global Research noted that disciplined cost management and lower-than-anticipated provisions helped Saudi National Bank (SASE:1180) deliver a third-quarter net income beat. "3Q26 net income of SAR6,450mn was 2.1%/2.7% ahead of consensus/BofAe, despite declining 2% QoQ and remaining broadly flat YoY. The beat was supported by lower-than-expected provisions and good cost containment, which offset muted non-funded income. Pre-provision profit was broadly in line with expectations, at 0.1% below consensus but 0.7% above BofAe. We see the 3% QoQ reduction in operating expenses as supportive of our thesis that tighter cost control should aid in positive operating leverage. These themes support our forecast of 0.6ppt ROTE expansion in 2026-28 and EPS 1.4-5% higher than consensus in 2026-28," according to a third-quarter first take report published Wednesday. The research firm added that "resilient" net special commission income helped offset a drop in non-funded income, which was linked to subdued investment income and capital market activity. Net special commission income rose 10% year over year to 8.05 billion Saudi riyals, beating both consensus and BofA estimates, while non-funded income fell 18% on an annual basis, missing market forecasts. Against this backdrop, BofA maintained its buy rating on the stock, with a price objective of 49.80 riyals.