05:31 AM EDT, 07/24/2026 (MT Newswires) -- FAB Securities affirmed its investment view on Al Rajhi Bank (SASE:1120) after the Saudi Arabian lender published its second-quarter earnings. "We maintain our rating to BUY on ALRAJHI with a target price of SAR 78.00. ALRAJHI delivered a strong earnings performance in 2Q26, supported by rise in both funded and non-funded income. Fee income grew 17.1% YOY in 1H26, supported by the continued implementation of the Bank's 'Harmonize the Group' strategy and initiatives to strengthen fee generation across cards, payments, bancassurance, and brokerage businesses. Meanwhile, exchange income increased by 21.4% YOY in 1H26, contributing to robust non-funded income growth," according to a Thursday first look note. For the three months ended June 30, Al Rajhi Bank's attributable net profit totaled 7.01 billion Saudi riyals, up 14% year on year and against the research firm's forecast of 6.88 billion riyals. "The growth is primarily driven by double-digit growth in net funded income and non-funded income, coupled with decline in zakat charges, partially offset by an increase in total operating expenses, higher impairments and higher share of profit to [non-controlling interest] holders," analysts wrote. Meanwhile, the lender's net operating income rose 13.3% on an annual basis to 10.88 billion riyals, versus FAB's estimate of 10.92 billion riyals.

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