Saudi Banking Sector Posts Highest Quarterly Profits in Its History

Investors monitor stock prices on the Saudi Tadawul screen. (Reuters)
Investors monitor stock prices on the Saudi Tadawul screen. (Reuters)
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Saudi Banking Sector Posts Highest Quarterly Profits in Its History

Investors monitor stock prices on the Saudi Tadawul screen. (Reuters)
Investors monitor stock prices on the Saudi Tadawul screen. (Reuters)

Saudi Arabia’s banking sector has achieved record-breaking quarterly earnings, reporting its highest-ever profits during the second quarter of 2025. According to financial disclosures, profits surged by 17.65% year-on-year, increasing by SAR 3.54 billion ($944 million) to reach SAR 22.98 billion ($6.13 billion), compared to SAR 19.54 billion ($5.21 billion) in the same period of 2024.

This exceptional performance was driven by all ten listed banks on the Saudi stock exchange, highlighting the continued strength and resilience of the Kingdom’s financial sector. The banks include the Saudi National Bank (SNB), Al Rajhi Bank, Riyad Bank, SAB (Saudi Awwal Bank), Banque Saudi Fransi, Arab National Bank, Alinma Bank, Bank Albilad, Saudi Investment Bank, and Bank AlJazira.

Al Rajhi Bank led the sector in both net profit and growth, posting earnings of SAR 6.15 billion riyals, an impressive 30.9% increase compared to the same quarter last year. Close behind was Saudi National Bank, which reported profits just over SAR 6.14 billion, marking a growth rate of 17.3%. Riyad Bank came third with SAR 2.59 billion in profits, reflecting an 11.1% increase.

In its Article IV consultation report published in June, the International Monetary Fund affirmed the Saudi banking sector’s resilience, citing its strong capitalization and profitability despite rising financing costs. Similarly, financial advisory firm Alvarez & Marsal noted the sector’s robust credit growth, cost-efficiency, and financial flexibility.

Hamad Al-Olayan, CEO of investment firm Villa Capital, emphasized that the Saudi banking sector’s performance merits deeper analysis.

He highlighted the sector’s consistent growth over the past 15 years, driven by capital increases, expanded lending, and strategic expansion.

Al-Olayan also noted that the sector has become the most attractive in the Saudi financial market for both local and international investors, dominating equity fund holdings due to its stable returns and strong fundamentals.

The banking sector has played a key role in maintaining the stability of the Saudi stock market index, especially as other sectors such as petrochemicals and cement, have struggled and dragged down overall market sentiment, he added.

Without the performance of Al Rajhi Bank’s stock, he said, the market index would likely be hovering between 9,300 and 9,500 points.

Looking ahead, Al-Olayan expects banks to lead the next phase of market growth, especially if interest rates begin to decline and economic clarity improves. He projected that the banking sector could drive the stock market index toward the 14,000-point mark.

He also stressed the sector’s vital role in financing projects across all scales, noting that many banks have already increased their capital and lending activity in response to growing demand.

Al-Olayan predicted that both Al Rajhi and SNB may announce capital increases and generous dividends by the end of the year, further boosting investor confidence.



China Lines Up Second LNG Terminal For Sanctioned Russian Cargoes

Chinese and Russian flags fly at an airport in Tianjin, China August 31, 2025. Sputnik/Vladimir Smirnov/Pool via REUTERS 
Chinese and Russian flags fly at an airport in Tianjin, China August 31, 2025. Sputnik/Vladimir Smirnov/Pool via REUTERS 
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China Lines Up Second LNG Terminal For Sanctioned Russian Cargoes

Chinese and Russian flags fly at an airport in Tianjin, China August 31, 2025. Sputnik/Vladimir Smirnov/Pool via REUTERS 
Chinese and Russian flags fly at an airport in Tianjin, China August 31, 2025. Sputnik/Vladimir Smirnov/Pool via REUTERS 

China is preparing a second import terminal to handle liquefied natural gas cargoes from Russia's sanctioned Arctic LNG 2 project, expanding a ‌route that so far relies on a single facility, three sources with knowledge of the matter said.

The newly built Longkou LNG terminal in eastern China's Shandong province, operated by state pipeline giant PipeChina, is being lined up to receive Arctic LNG 2 cargoes, the sources told Reuters.

The move would provide a lifeline to the $21 billion project, which is under heavy sanctions, and to Moscow, whose gas exports have been hit by Europe's decision to halt purchases and ⁠whose oil sector faces pressure from Ukrainian attacks.

A second import terminal would allow China to take larger volumes of sanctioned Russian LNG, while giving Arctic LNG 2 - designed to produce 19.8 million metric tons a year - another export outlet.

China, the only known buyer of sanctioned Arctic LNG 2 cargoes, has so far received shipments through PipeChina's Beihai terminal in Guangxi. That facility took the project's first delivery to an offtaker in August 2025 aboard the Arctic Mulan tanker.

Since then, Beihai has received 41 cargoes, or 2.6 million tons, of LNG from Arctic LNG 2 - many via two floating storage units in Russia - according to ship-tracking data and Kpler estimates. It ‌has also ⁠received three LNG cargoes from Russia's sanctioned Portovaya terminal.

China needs an additional terminal to absorb more sanctioned cargoes, one of the sources said. All declined to be named as they were not authorized to speak to media.

The world's largest LNG importer, China bought 7.57 million tons from Russia last year, according to Chinese customs data.

Longkou is seen as a logical choice because, like Beihai, it is operated by PipeChina ⁠and is closer to the Koryak floating storage unit in Russia's Far East, where Arctic LNG 2 cargoes are stored and reloaded, the sources said.

An industry executive said Longkou has completed its mechanical build phase and should be ready before October, in time for peak winter ⁠demand.

Under its completed first phase, the Longkou terminal in the coastal city of Yantai has an annual receiving capacity of 5 million tons, compared with 6 million tons at Beihai.

PipeChina's Dalian LNG terminal in northeastern China is also being discussed as ⁠a potential future receiving point, a fourth source said.

Novatek has recently stepped up hiring in China, a separate source said.

Reuters reported last year that Novatek has cut cargo prices by 30% to 40% since August 2025 to attract Chinese buyers despite sanctions.

 


BofA Expects Fed to Hike Interest Rates 75 Basis Points in 2026

The Federal Reserve building in Washington. (Reuters)
The Federal Reserve building in Washington. (Reuters)
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BofA Expects Fed to Hike Interest Rates 75 Basis Points in 2026

The Federal Reserve building in Washington. (Reuters)
The Federal Reserve building in Washington. (Reuters)

Bank of America (BofA) expects the Federal Reserve to hike interest rates by 75 basis points in 2026, it said on Monday, citing resilient economic data and rising expectations of a hawkish Fed under new Chair Kevin Warsh.

BofA Global Research said in a note it expects the US central bank to raise rates in September, October, and December, compared with its prior forecast ⁠for no change this year, according to Reuters.

BofA's view is contrary to current 2026 outlooks of top Wall Street brokerages and comes after the Fed left its benchmark rate unchanged earlier this month, even as almost half of Fed policymakers indicated that they now expect rates to rise this year.

The policymakers' more hawkish outlook is accompanied by strength in the labor market and elevated inflation concerns.

“June Summary of Projections and ⁠Warsh's comments indicate that the Fed's reaction function is much more hawkish than we thought,” analysts at BofA said in a note.

In contrast to BofA's call, markets are pricing in 42 bps of hikes ⁠in 2026, according to London Stock Exchange Group (LSEG) data.

After three rate hikes this year, BofA analysts expect the central bank to keep interest rates on hold in ⁠2027.

“Inflation is likely to remain sticky, keeping the real policy rate from becoming overly restrictive,” they said.

Brokerages including BNP Paribas ⁠and Macquarie are also among the minority that expect the central bank to start hiking rates this year.


Yanbu Commercial Port Boosts Operational Efficiency by Serving 11 Vessels Simultaneously

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
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Yanbu Commercial Port Boosts Operational Efficiency by Serving 11 Vessels Simultaneously

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)

Saudi Arabia’s Yanbu Commercial Port achieved a new operational milestone by successfully serving 11 vessels simultaneously of various sizes and cargo capacities, reflecting the port's high level of operational readiness, reported the Saudi Press Agency on Monday.

The achievement underscores the efficiency of the port's operations and its ability to manage maritime and commercial traffic with a high degree of effectiveness.

It contributes to smoother import and export activities and supports the continuity of supply chains in accordance with the highest operational and logistical standards.

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system and reinforcing its position as a key logistics hub on the Red Sea coast.

It also supports economic growth and enhances the competitiveness of the maritime and commercial sectors.