Saudi Awwal Bank announces its Interim Financial Results for the Period Ending on 2026-03-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Total Income From Special Commission of Financing	4,350	4,209	3.349	4,500	-3.333
Total Income From Special Commission of Investment	1,135	1,129	0.531	1,204	-5.73
Net Income From Special Commission of Financing	2,662	2,712	-1.843	2,778	-4.175
Net Income From Special Commission of Investment	208	188	10.638	198	5.05
Total Operations Profit (Loss)	3,612	3,620	-0.22	3,734	-3.267
Net Profit (Loss) before Zakat and Income Tax	2,411	2,449	-1.551	2,320	3.922
Net Profit (Loss) Attributable to Shareholders of the Issuer	2,086	2,135	-2.295	2,047	1.905
Total Comprehensive Income Attributable to Shareholders of the Issuer	1,813	3,585	-49.428	1,517	19.512
Total Operating Expenses Before Provisions for Credit and Other Losses	1,101	1,071	2.801	1,191	-7.556
Total Provision of Expected Credit Losses And Other Losses (Reversing Entry), Net	166	142	16.901	264	-37.121
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Assets	459,740	426,872	7.699
Investments	99,551	104,703	-4.92
Loans And Advances Portfolio (Financing And Investment)	306,906	278,836	10.066
Clients' deposits	331,411	290,440	14.106
Total Shareholders Equity (after Deducting Minority Equity)	81,011	72,909	11.112
Profit (Loss) per Share	0.94	0.98
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in special commission income during the current quarter compared to the same quarter of the last year is	The gross special commission income was higher by 3%, primarily driven by volume growth in loan and interbank lending partly offset by lower average yield reflecting the lower rate environment mainly affecting the floating loan portfolio. However, net special commission income was lower marginally by 1%, as special commission expense grew reflecting the increase in proportion of special commission expense bearing term deposits partly offset by lower interbank borrowing costs.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The net profit was lower by 2%, primarily driven by an increase in total operating expenses together with an increase in net provision for expected credit losses which was driven by an elected increase in modelled expected credit losses, reflecting the increased uncertainty and volatility caused by the geopolitical situation. These factors were partly offset by an increase in the share in earnings of an associate.

Element List

Explanation

The reason of the increase (decrease) in special commission income during the current quarter compared to the same quarter of the last year is

The gross special commission income was higher by 3%, primarily driven by volume growth in loan and interbank lending partly offset by lower average yield reflecting the lower rate environment mainly affecting the floating loan portfolio. However, net special commission income was lower marginally by 1%, as special commission expense grew reflecting the increase in proportion of special commission expense bearing term deposits partly offset by lower interbank borrowing costs.

The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is

The net profit was lower by 2%, primarily driven by an increase in total operating expenses together with an increase in net provision for expected credit losses which was driven by an elected increase in modelled expected credit losses, reflecting the increased uncertainty and volatility caused by the geopolitical situation. These factors were partly offset by an increase in the share in earnings of an associate.

Total operating income was broadly unchanged as a decrease in net fee and commission income (following the introduction of new regulations affecting management lending and credit card fees), and lower net special commission income and exchange income was offset by gains on disposal of FVOCI debt instruments.

Operating expenses were higher due to an increase in depreciation and amortization expenses given recent higher software capitalization reflecting the investment in digital capability, an increase in salaries and employee related expenses partially offset by a decrease in general and administrative expenses.

An increase in the share in earnings of an associate is mainly attributed to lower operating expenses attributable to reversal in intergroup charges and decrease in non-staff costs of the associate.

The increase in expected credit losses is explained below.The reason of the increase (decrease) in the total net provision (reversing entry) of expected credit losses and other losses during the current quarter compared to the same quarter of the last year is Net provision for expected credit losses increased by SAR 25 million or 16.9%. Higher net provision charges on loans in the current quarter included an elected increase in modelled expected credit losses, reflecting the increased uncertainty and volatility caused by the geopolitical situation. In addition, there was a net increase in charges on off-balance sheet exposures. These factors were partly offset by higher recoveries net of write-offs.The reason of the increase (decrease) in special commission income during the current quarter compared to the previous quarter is The gross and net special commission income were lower by 4%, primarily driven by the lower rate environment affecting the floating loan portfolio partly offset by an increase in volume growth and a decrease in special commission expense reflecting the lower deposits and interbank borrowing cost.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter is The net profit was higher by 2%, primarily driven by a decrease in net provision for expected credit losses, a decrease in operating expenses and increase in the share in earnings of an associate partially offset by a decrease in total operating income and increase in provision for Income tax and zakat.

Total operating income decreased mainly due to decrease in net special commission income, net other operating expenses, net fee and commission income (attributable to lower brokerage fee during the current quarter), and exchange income partly offset by gain on disposal of FVOCI debt instruments.

Operating expenses were lower due to a decrease in salaries and employee related expenses (previous quarter included one off past service cost in indemnity charges) and a decrease in general and administrative expenses.

An increase in the share in earnings of an associate is mainly attributed to lower operating expenses attributable to reversal in intergroup charges and decrease in non-staff costs.

The decrease in expected credit losses is explained below.The reason of the increase (decrease) in the total net provision (reversing entry) of expected credit losses and other losses during the current quarter compared to the previous quarter is Net provision for expected credit losses decreased by SAR 97 million or 37%. This was driven by higher recoveries net of write-offs partly offset by higher charges on both the loan portfolio and off-balance sheet exposures.Statement of the type of external auditor's report Unmodified ConclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) NoneReclassification of Comparison Items Certain prior period figures have been reclassified to be aligned with the presentation in the current period including a reclassification from fee income to special commission around SAR 61.5 million relating to management fee.

The Bank has restated the previous period balances following the restatement during year ended 2025 relating to Investments, Retained earnings and Other reserves in the interim condensed consolidated financial statements.Additional Information Earnings per share for the period ended 31 March 2026 and 31 March 2025 are calculated by dividing the net income after Zakat and income tax attributable to equity holders of the Bank (adjusted for Tier 1 Sukuk costs) by 2,055 million weighted average number of shares outstanding during the period ended 31 March 2026 and 31 March 2025.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.