BSF Reports Preliminary Net Income of SAR 2.87 Billion for H1 2026, Up 5% Year-on-Year
20/Jul/2026
• Total assets SAR 328.0bn, up 9% YoY, mainly driven by increased lending and investments
• Loans and advances up 7% YoY to SAR 224.2bn, supported by higher volumes in both commercial and consumer lending
• Customer deposits SAR 204.6bn, up 12% YoY primarily from increase in interest-bearing deposits.
• Net income for 1H 2026 SAR 2,868mn, up 5% YoY on higher net interest income
• Operating income SAR 5,557mn in 1H 2026, up 5% YoY, driven by a 6% increase in net interest income while non-interest income was broadly stable
• Net interest margin declined 7bps YoY to 3.04% in 1H 2026, while improving by 4bps QoQ
• Cost-to-income ratio at 33.2% for 1H 2026, a 52bps increase YoY
• Cost of risk for 1H 2026 at 0.44%, a 6bps reduction YoY
• Return on equity at 12.1%, a 42bps decrease YoY
• Capitalization remained strong, while liquidity levels were healthy
Loans and advances increase 7%, customer deposits 12%, and cost of risk improves to 0.44%
Riyadh, Kingdom of Saudi Arabia – 20 July 2026: BSF announced a net profit of SAR 2,868 million for the first half of 2026, representing a 5% year-on-year increase, reflecting the continued acceleration in the execution of the BSF 2030 strategy. The result was supported by a 6% increase in net special commission income, partially offset by higher operating expenses.
Net profit also increased by 8% compared to the previous quarter, driven by 5% revenue growth, alongside relatively stable operating expenses, partially offset by a 9% increase in expected credit loss provisions.
This performance was driven by growth in operating income, with total operating income increasing by 5% year-on-year to SAR 5,557 million during the first half of 2026. Net special commission income increased by 6% to SAR 4,560 million, supported by an 8% increase in average yield-earning assets, despite a 7-basis-point decline in the net special commission margin. Meanwhile, non-special commission income remained broadly stable year-on-year at SAR 997 million, as lower banking service fees and foreign exchange income were offset by higher trading income, dividend income, and investment gains.
From an operational efficiency perspective, operating expenses increased by 6% year-on-year to SAR 1,848 million during the first half of 2026, primarily driven by higher employee costs, general and administrative expenses, and depreciation charges. As a result, the cost-to-income ratio increased by 52 basis points year-on-year to 33.2% during the first half of 2026.
On the risk management front, expected credit loss provisions remained stable at SAR 513 million, reflecting the Bank’s continued disciplined approach to risk management alongside 7% growth in loans and advances, which contributed to a 6-basis-point improvement in the cost of risk to 0.44% during the first half of 2026.
Furthermore, total assets stood at SAR 327,983 million as of 30 June 2026, representing an increase of 6% compared to 31 December 2025. Loans and advances also increased by 4% since the beginning of the year to SAR 224,241 million, driven by lending growth across both the corporate and retail banking segments, while asset quality remained broadly stable throughout the period. In addition, the investment portfolio expanded by 8% since the beginning of the year to SAR 74,208 million.
Customer deposits increased by 5% since the beginning of the year to SAR 204,588 million, supported by balanced contributions from both non-interest-bearing and interest-bearing deposits. Meanwhile, debt securities and term borrowings declined by 8% since the beginning of the year, reflecting planned maturities, while Additional Tier 1 sukuk remained unchanged from the beginning of the year.
Commenting on the results, Mr. Bader AlSalloom, Chief Executive Officer of BSF, said:
“BSF delivered a solid performance in the first half of 2026, reflecting the resilience of our business model, disciplined execution and prudent risk management.
Building on the momentum of BSF 2030, we continue to strengthen our core businesses by expanding our Wholesale Banking and Retail Banking, deepening our Treasury & Investments capabilities and growing BSF Capital.
Together with our focus on increasing fee-based income and improving efficiency through technology and automation, these priorities will support sustainable long-term value creation for our shareholders and customers.”
During the second quarter, BSF continued to advance key initiatives under BSF 2030, with a focus on digital transformation, customer experience, business growth and operational efficiency
As part of BSF’s commitment to innovation and digital transformation, The Bank continued to strengthen its digital capabilities, simplify processes and enhance customer experience through technology and automation, including AI-enabled solutions to automate selected internal processes. As part of its branch transformation programme, the Kingdom Tower branch in Riyadh achieved LEED Gold certification under LEED v4 ID+C: Retail. Following the period, the Bank also commenced operations at a new flagship branch in Riyadh, offering advanced digital and self-service capabilities ahead of its planned official opening in September.
The Bank also strengthened its presence across various sectors of the economy by expanding collaboration with its partners and developing banking solutions that address evolving market needs. These efforts reflect the effective execution of its strategy and the achievement of its objectives in line with the planned roadmap, while further strengthening existing partnerships to deliver greater value to customers and broaden the range of solutions and services offered.
BSF continued to support micro, small and medium enterprises through financing and banking solutions aligned with the sector’s role in the Kingdom’s economic development and Vision 2030.
During the second quarter, BSF activated the Athar Social Responsibility Portfolio in collaboration with the Social Development Bank. The initiative attracted more than 200 applications, with seven participants selected for a three-day growth bootcamp designed to strengthen their business models and support their next stage of development.
BSF remains focused on executing BSF 2030, enhancing customer experience and supporting sustainable economic growth in the Kingdom.
• Loans and advances up 7% YoY to SAR 224.2bn, supported by higher volumes in both commercial and consumer lending
• Customer deposits SAR 204.6bn, up 12% YoY primarily from increase in interest-bearing deposits.
• Net income for 1H 2026 SAR 2,868mn, up 5% YoY on higher net interest income
• Operating income SAR 5,557mn in 1H 2026, up 5% YoY, driven by a 6% increase in net interest income while non-interest income was broadly stable
• Net interest margin declined 7bps YoY to 3.04% in 1H 2026, while improving by 4bps QoQ
• Cost-to-income ratio at 33.2% for 1H 2026, a 52bps increase YoY
• Cost of risk for 1H 2026 at 0.44%, a 6bps reduction YoY
• Return on equity at 12.1%, a 42bps decrease YoY
• Capitalization remained strong, while liquidity levels were healthy
Loans and advances increase 7%, customer deposits 12%, and cost of risk improves to 0.44%
Riyadh, Kingdom of Saudi Arabia – 20 July 2026: BSF announced a net profit of SAR 2,868 million for the first half of 2026, representing a 5% year-on-year increase, reflecting the continued acceleration in the execution of the BSF 2030 strategy. The result was supported by a 6% increase in net special commission income, partially offset by higher operating expenses.
Net profit also increased by 8% compared to the previous quarter, driven by 5% revenue growth, alongside relatively stable operating expenses, partially offset by a 9% increase in expected credit loss provisions.
This performance was driven by growth in operating income, with total operating income increasing by 5% year-on-year to SAR 5,557 million during the first half of 2026. Net special commission income increased by 6% to SAR 4,560 million, supported by an 8% increase in average yield-earning assets, despite a 7-basis-point decline in the net special commission margin. Meanwhile, non-special commission income remained broadly stable year-on-year at SAR 997 million, as lower banking service fees and foreign exchange income were offset by higher trading income, dividend income, and investment gains.
From an operational efficiency perspective, operating expenses increased by 6% year-on-year to SAR 1,848 million during the first half of 2026, primarily driven by higher employee costs, general and administrative expenses, and depreciation charges. As a result, the cost-to-income ratio increased by 52 basis points year-on-year to 33.2% during the first half of 2026.
On the risk management front, expected credit loss provisions remained stable at SAR 513 million, reflecting the Bank’s continued disciplined approach to risk management alongside 7% growth in loans and advances, which contributed to a 6-basis-point improvement in the cost of risk to 0.44% during the first half of 2026.
Furthermore, total assets stood at SAR 327,983 million as of 30 June 2026, representing an increase of 6% compared to 31 December 2025. Loans and advances also increased by 4% since the beginning of the year to SAR 224,241 million, driven by lending growth across both the corporate and retail banking segments, while asset quality remained broadly stable throughout the period. In addition, the investment portfolio expanded by 8% since the beginning of the year to SAR 74,208 million.
Customer deposits increased by 5% since the beginning of the year to SAR 204,588 million, supported by balanced contributions from both non-interest-bearing and interest-bearing deposits. Meanwhile, debt securities and term borrowings declined by 8% since the beginning of the year, reflecting planned maturities, while Additional Tier 1 sukuk remained unchanged from the beginning of the year.
Commenting on the results, Mr. Bader AlSalloom, Chief Executive Officer of BSF, said:
“BSF delivered a solid performance in the first half of 2026, reflecting the resilience of our business model, disciplined execution and prudent risk management.
Building on the momentum of BSF 2030, we continue to strengthen our core businesses by expanding our Wholesale Banking and Retail Banking, deepening our Treasury & Investments capabilities and growing BSF Capital.
Together with our focus on increasing fee-based income and improving efficiency through technology and automation, these priorities will support sustainable long-term value creation for our shareholders and customers.”
During the second quarter, BSF continued to advance key initiatives under BSF 2030, with a focus on digital transformation, customer experience, business growth and operational efficiency
As part of BSF’s commitment to innovation and digital transformation, The Bank continued to strengthen its digital capabilities, simplify processes and enhance customer experience through technology and automation, including AI-enabled solutions to automate selected internal processes. As part of its branch transformation programme, the Kingdom Tower branch in Riyadh achieved LEED Gold certification under LEED v4 ID+C: Retail. Following the period, the Bank also commenced operations at a new flagship branch in Riyadh, offering advanced digital and self-service capabilities ahead of its planned official opening in September.
The Bank also strengthened its presence across various sectors of the economy by expanding collaboration with its partners and developing banking solutions that address evolving market needs. These efforts reflect the effective execution of its strategy and the achievement of its objectives in line with the planned roadmap, while further strengthening existing partnerships to deliver greater value to customers and broaden the range of solutions and services offered.
BSF continued to support micro, small and medium enterprises through financing and banking solutions aligned with the sector’s role in the Kingdom’s economic development and Vision 2030.
During the second quarter, BSF activated the Athar Social Responsibility Portfolio in collaboration with the Social Development Bank. The initiative attracted more than 200 applications, with seven participants selected for a three-day growth bootcamp designed to strengthen their business models and support their next stage of development.
BSF remains focused on executing BSF 2030, enhancing customer experience and supporting sustainable economic growth in the Kingdom.
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