Al-Rajhi Bank (1120.SE): 2Q26 conference call takeaways

研报英文原文证据摘录

Al-Rajhi Bank (1120.SE): 2Q26 conference call takeaways

Equity Research

28 July 2026 | 7:14PM GST

Management hosted a conference call post 2Q26 Results. Kazim Andac

+971(4)214-9958 |

kazim.andac@gs.com

We think the share price reaction to the earnings call is likely to be negative. Goldman Sachs International

Management downgraded its loan growth and CoR guidance for the year, which Ashwath P T, CFA

+971(4)376-3439 | ashwath.pt@gs.com

we think is likely to impact earnings growth. While a key driver of the loan Goldman Sachs International

growth downgrade to low single digit is the securitization of retail loans Gokul Vinayak L

(SAR8bn ytd), which management reiterated has been NIM accretive, we think +1(332)245-7976Goldman Sachs India| gokul.l@gs.comSPL

the higher funding costs due to adverse mix impact partially offset this.

Moreover, while the bank elected to proactively update its ECL model, which

drove the uptick in CoR guidance, as opposed to any stress in the loan book, we

view this as an additional headwind to earnings growth. Overall, we think this is

likely to lead to low- to mid-single-digit downgrades to consensus earnings

estimates, all else equal.

Key takeaways below:

n NIM stood at 3.50% in 1H26, up 36bps yoy. Management attributed the yoy

expansion to retail and corporate repricing initiatives and cost-of-funds

optimization. Sequentially, NPM declined modestly versus 1Q26 due to seasonal

CASA outflows and higher funding costs.

o FY26 guidance: Management maintained its FY26 NPM expansion

guidance of +30bps to +40bps yoy despite a more uncertain rate

backdrop. Management continues to see further opportunities through

asset repricing, SME growth and funding optimization.

n Fee income increased 17% yoy during 1H26. Management attributed the