Saudi Banks: Minor EPS changes post Q1'26; SNB preferred

Research evidence excerpt

Saudi Banks: Minor EPS changes post Q1'26; SNB preferred

Saudi Arabia | Banks EquityMayResearch17, 2026

KEY STOCKS FEATURED INCLUDE:Saudi Banks: Minor EPS changes post Q1'26;

TICKER RATING PRICE TARGETSNB preferred

ALINMA AB BUY SAR29.00

We make minor changes to Saudi banks' EPS and PT post Q1'26. SNB (Buy) RJHI AB HOLD SAR69.50

remains favored Saudi stock although another quarter of lumpy delivery, while ARNB AB HOLD SAR22.50

core trends below 26-27 targets, is weighing on investor sentiment. Yet our BSF AB HOLD SAR21.25

preference stays pinned on its favorable positioning (mkt share, diversified b/ RIBL AB BUY SAR25.50

s, capital comfort) and attractive valuation (9.8x26E P/E, 6% DY, >30% potential

upside) in a sector currently marked by limited macro / regulatory visibility.

Key sector highlights. a) Liquidity conditions eased with 4%qoq system deposit growth, c2x loans KEY CHANGES INCLUDE:

pace; demand deposits grew faster (6%qoq in our coverage vs. 1%qoq in time) but their growth TICKER RATING PRICE TARGET

may not be sustainable as we see in SAMA indicators (Riyad, Alinma, BSF highlighted risk of

ALINMA AB BUY SAR29.00 (SAR28.75)

some demand deposits being transitory). b) Loan growth slowed as guided prev, current 8%yoy

Q1'26 pace halved yoy (Rajhi, SNB flat and under-performing smaller peers); SME strongest loan RJHI AB HOLD SAR69.50 (SAR68.67)

growth segment (7%qoq, 42%yoy; mix +3pp yoy to 11.4% across JEF coverage) where Rajhi led ARNB AB HOLD SAR22.50 (SAR22.25)

followed by SNB, BSF; Alinma led in personal / mortgage loans 10%qoq while SABB (3% qoq) in large RIBL AB BUY SAR25.50 (SAR26.50)

corps. c) QoQ NIM declined (except Rajhi) led by lagged impact of Q4'25 rate cuts on yields. SABB,

Riyad led decline.