Al Rajhi outperforms Arab banking giants in return on assets

First Bank’s analysis of return on average assets (ROAA) among the five largest Arab banks by total assets at end-June 2026 revealed a clear lead for Saudi Arabia’s Al Rajhi Bank, which topped the group in H1 2026 despite ranking fifth by asset size.

The result highlights the bank’s ability to generate superior returns relative to its asset base, outperforming institutions with substantially larger balance sheets.

Al Rajhi Bank’s leadership was underpinned by the highest net profit among the five banks, reaching approximately USD 3.67bn in H1 2026. This supported a ROAA of 2.63 per cent, placing it ahead of the four largest Arab banks by assets.

The performance is particularly notable given that Al Rajhi held the smallest asset base within the group, with total assets of approximately USD 280.73bn at end-June 2026.

The bank's ability to generate substantial earnings relative to its assets secured its leadership in profitability efficiency.

Saudi National Bank (SNB) ranked second with a ROAA of 2.12 per cent in H1 2026, supported by net profit of USD 3.47bn. Its total assets reached approximately USD 331.28bn at end-June, placing it fourth among Arab banks by asset size.

Emirates NBD followed in third place with a ROAA of 2.07 per cent, having recorded net profit of USD 3.50bn during the first six months of 2026. Its total assets stood at approximately USD 360.08bn at end-June, making it the third-largest Arab bank by assets.

The comparison between SNB and Emirates NBD reveals a notable distinction. Despite reporting slightly lower net profit, SNB achieved a higher ROAA, reflecting the influence of differences in their average asset bases on the returns generated.

First Abu Dhabi Bank (FAB) ranked fourth with a ROAA of 1.53 per cent in H1 2026, supported by net profit of USD 2.93bn. Its total assets reached approximately USD 383.57bn at end-June, securing second place among the largest Arab banks by assets.

Qatar National Bank (QNB) ranked fifth and last within the group by ROAA, recording a return of 1.25 per cent and net profit of USD 2.43bn in H1 2026.

This came despite QNB retaining its position as the largest Arab bank by assets, with a balance sheet of approximately USD 394.72bn at end-June 2026.

The findings reveal a striking contrast among the five largest Arab banks. Al Rajhi, despite having the smallest asset base, achieved the highest ROAA, outperforming QNB, the region’s largest bank by assets, by approximately 1.37 percentage points.

The divergence demonstrates that balance-sheet size alone does not determine profitability. Rather, the ability to generate earnings relative to average assets remains a defining measure of financial performance.

On this measure, Al Rajhi Bank established a clear lead among the five largest Arab banks in H1 2026, demonstrating that superior returns can be achieved without commanding the largest asset base.