Riyadh, Saudi Arabia — Al Rajhi Bank reported a 30.9% rise in net profit for Q2 2025, reaching SAR 6.151 billion, up from SAR 4.698 billion in Q2 2024. Profit also increased by 4.15% from SAR 5.906 billion in Q1 2025. This growth was driven by strong operating income and higher recoveries, reflecting robust financial performance and growing investor confidence.

Al Rajhi Bank Q2 Profit: Operating Income Growth Supports Earnings

The Al Rajhi Bank Q2 profit surge stems from a 25.7% rise in total operating income. Stronger net financing and investment returns, higher service fees, foreign exchange gains, and other operating revenue fueled this.

Although operating expenses rose by 13.7%—mainly due to increased depreciation, staffing, and administrative costs—and provisions climbed from SAR 455 million to SAR 600 million, the bank still maintained healthy profitability.

H1 Profits Top SAR 12 Billion on Strong Q2 Performance

Because of the Q2 momentum, Al Rajhi’s net profit for the first half 2025 reached SAR 12.06 billion. This marks a 32.45% increase from SAR 9.10 billion in H1 2024. The performance confirms Al Rajhi’s steady growth within Saudi Arabia’s banking sector, supported by broader economic diversification and a rise in credit activity.

 

 

THE SAUDI STANDARD’S VIEW: Al Rajhi Bank’s Earnings Growth Reinforces Strength of Islamic Banking Model

Al Rajhi Bank’s 31% increase in Q2 2025 profit to SAR 6.15 billion, alongside H1 earnings topping SAR 12 billion, highlights the resilience of Saudi Arabia’s Islamic banking model during a financial and economic transition period.

  • A 25.7% jump in operating income underscores strong demand for Shariah-compliant loans, investment products, and digital banking. This confirms Al Rajhi’s pivotal role in the Kingdom’s retail and commercial banking landscape.
  • The bank expanded its net income despite rising costs and higher credit loss provisions. This points to effective risk controls and operational scale, even while investing in staff and infrastructure.
  • The Q2 results align with Vision 2030 goals. Al Rajhi supports financial inclusion, SME growth, and the Kingdom’s transition to a digitally driven economy.
  • Growing income from forex and fee-based services shows resilience beyond core lending. Al Rajhi is increasingly well-integrated into the global financial system.

These results strengthen Saudi Arabia’s reputation as home to a competitive, well-capitalized banking sector. As Vision 2030 accelerates, institutions like Al Rajhi Bank are well-positioned to create shareholder value while enabling national economic goals.

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