Saudi Awwal Bank SJSC Post 2Q26: Slight increase in estimates

Research evidence excerpt

Saudi Awwal Bank SJSC Post 2Q26: Slight increase in estimates

Global Research

29 July 2026ab

Saudi Awwal Bank SJSC Equities

Saudi ArabiaPost 2Q26: Slight increase in estimates

Banks, Ex-S&L

12-month rating Buy

Post 2Q26 we lift estimates c2% for better asset quality, retaining price target

SAB held its 2Q26 analyst call today, having previously reported 2Q26 net profit of 12m price target SR43.00

SAR2,331m which was up 10% YoY and 12% ahead of Visible Alpha consensus on a

low cost of risk and low zakat rate. All FY26 guidance was maintained, though SAB

Price (29 Jul 2026) SR32.98

flagged downside risks to loan growth and cost/income, but potential to beat guidance

on asset quality given recoveries and overlay releases. Overall we are lifting medium term RIC: 1060.SE BBG: SABB AB

earnings forecasts by an average of 2% driven primarily by better asset quality, leaving

Trading data and key metrics

our SAR43.0 price target unchanged given a lower CET1 level (though SAB plans

52-wk range SR37.88-30.00

optimisation measures for H2).

Market cap. SR67.8b/US$18.1b

Net profit 12% ahead of consensus on low cost of risk and tax rate Shares o/s 2,055m (ORD)

Free float 49%

Loans of SAR320bn were up 13% YoY and 2% ahead of consensus, with growth

balanced between corporate and retail. SAB maintained FY26 guidance of >10%, but Avg. daily volume ('000) 1,616

noted that as the market has slowed by more than the expected high single digit Avg. daily value (m) SR54

growth, its target was subject to profitable opportunities. Deposits of SAR342bn were Common s/h equity (12/26E) SR70.6b

up 15% YoY and in line. The NIM was flat QoQ at 2.53%, versus consensus 2.50%, with P/BV (12/26E) 1.0x

SAB noting that this could be the low point for the year and improve into H2 helped by Tier 1 ratio 17%