Riyad Capital Sees Al Rajhi Bank Profit Rise in Q2 2026

Riyad Capital issued its Q2 2026 earnings forecasts for banks and companies under its coverage. The brokerage expects Al Rajhi Bank’s net profit to increase year over year, driven by higher lending income and lower provisions. Other forecasts covered Saudi lenders and select industrial firms, though Riyad Capital did not disclose specific numbers for all names.

The note comes ahead of the second-quarter reporting season in Saudi Arabia. Al Rajhi Bank, the kingdom’s largest listed lender, reported a 12% rise in net profit in Q1 2026. Riyad Capital’s estimate suggests continued momentum from core operations, analysts said. The bank’s shares have risen 8% this year, outperforming the Tadawul All Share Index.

Riyad Capital maintained its overweight rating on Al Rajhi, citing a stable net interest margin and solid asset quality. The brokerage also flagged potential upside from mortgage lending growth and government spending programs.