Interim report
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Saudi Awwal Bank Interim Condensed Consolidated Financial Information for the Six-month period ended 30 June 2026
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Saudi Awwal Bank Interim Condensed Consolidated Financial Information Tables of Content Page number Primary financial statements 1. Interim condensed consolidated statement of financial position 2 2. Interim condensed consolidated statement of income 3 3. Interim condensed consolidated statement of comprehensive income 4 4. Interim condensed consolidated statement of changes in equity 5 5. Interim condensed consolidated statement of cash flows 6 Notes to the Interim Condensed Consolidated Financial Information 1. General, basis of preparationand basis of consolidation 7 2. Material accounting policies, estimates, assumptions, and impact of changes due to adoption of new standards 9 3. Cash and balances with Saudi Central Bank ("SAMA") 11 4. Due from banks and other financial institutions, net 11 5. Investments, net 12 6. Loans and advances, net 14 7. Investment in an associate 16 8. Goodwill and other intangibles, net 17 9. Derivatives 18 10. Customers’ deposits 22 11. Debt securities in issue and term loans 22 12. Commitments and contingencies 23 13. Additional Tier 1 Sukuk 24 14. Zakat and income tax 24 15. Basic and diluted earnings per share 25 16. Cash and cash equivalents 25 17. Operating segments 25 18. Financial risk management 27 19. Fair value of financial instruments 28 20. Capital adequacy 31 21. Dividends 31 22. Geopolitical impact on expected credit losses 31 23. Comparative figures 32 24. Board of Directors’ approval 32 Independent Auditors' Review Report on the Interim Condensed Consolidated Financial Information 1
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PricewaterhouseCoopers Public Accountants (Professional Limited Liability Company) - - www.pwc.com ERNST & YOUNG PROFESSIONAL SERVICES (PROFESSIONAL LLC) Paid-up capital ( 5,500,000) (Five million and five hundred thousand Saudi Riyal) Independent Auditors’ Review Report on the Interim Condensed Consolidated Financial Information To The shareholders of Saudi Awwal Bank (A Saudi Joint Stock Company) Introduction We have reviewed the accompanying interim condensed consolidated statement of financial position of Saudi Awwal Bank (the “Bank”) and its subsidiaries (collectively referred to as the “Group”) as at 30 June 2026, and the related interim condensed consolidated statements of income and comprehensive income for the three-month and six-month periods then ended, and the related interim condensed consolidated statements of changes in equity and cash flows for the six-month period then ended, and explanatory notes (collectively referred to as “the interim condensed consolidated financial information”). Management is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34, “Interim Financial Reporting (“IAS 34”) as endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, “ Review of Interim Financial Information Performed by the Independent Auditor of the Entity ” as endorsed in the Kingdom of Saudi Arabia. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34 as endorsed in the Kingdom of Saudi Arabia. PricewaterhouseCoopers Ernst & Young Professional Services Adel F. Alqahtani Certified Public Accountant License number: 614 13 Safar 1448H (27 July 2026) Ahmed Ibrahim Reda Certified Public Accountant License number: 356
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Saudi Awwal Bank Interim condensed consolidated statement of financial position All amounts are in thousands of Saudi Riyals unless otherwise stated 2 Notes As at 30 June 2026 (Unaudited) As at 31 December 2025 (Audited) As at 30 June 2025 (Restated)* ( Unaudited ) ASSETS Cash and balances with Saudi Central Bank ("SAMA") 3 23,320,019 23,840,096 18,464,339 Due from banks and other financial institutions, net 4 8,873,867 2,878,181 2,912,238 Investments, net 5, 23 99,821,765 107,641,898 108,976,327 Positive fair value derivatives, net 9 2,680,250 2,405,729 1,975,093 Loans and advances, net 6 320,207,243 298,626,505 282,603,818 Investment in an associate 7 297,260 399,507 347,808 Property, equipment and right of use assets, net 3,469,198 3,586,736 3,595,174 Goodwill and other intangibles , net 8 11,225,453 11,219,326 11,160,755 Other assets 4,578,885 3,856,506 3,481,593 Total assets 474,473,940 454,454,484 433,517,145 LIABILITIES AND EQUITY Liabilities Due to banks 22,292,784 25,700,960 39,115,332 Customers’ deposits 10 342,157,087 323,273,854 297,002,741 Negative fair value derivatives, net 9 2,349,560 2,273,572 1,939,828 Debt securities in issue and term loans 11 11,490,121 7,895,554 5,163,958 Other liabilities 15,306,508 15,972,005 14,634,258 Total liabilities 393,596,060 375,115,945 357,856,117 Equity Equity attributable to equity holders of the Bank Share capital 20,547,945 20,547,945 20,547,945 Share premium 8,524,882 8,524,882 8,524,882 Statutory reserve 20,547,945 20,547,945 20,547,945 Other reserves 23 (766,271) (354,432) (321,075) Retained earnings 23 19,636,879 17,685,699 15,958,831 Total equity attributable to equity holders of the Bank 68,491,380 66,952,039 65,258,528 Additional Tier 1 Sukuk 13 12,386,500 12,386,500 10,402,500 Total equity 80,877,880 79,338,539 75,661,028 Total liabilities and equity 474,473,940 454,454,484 433,517,145 *Refer to note 23 The accompanying notes 1 to 24 form an integral part of this interim condensed consolidated financial information. Lama Ghazzaoui Chief Financial Officer Tony Cripps Chief Executive Officer & Managing Director
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Saudi Awwal Bank Interim condensed consolidated statement of income For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 3 For the three-month ended For the six-month ended Notes 30 June 2026 (Unaudited) 30 June 2025 (Restated)* ( Unaudited ) 30 June 2026 (Unaudited) 30 June 2025 (Restated)* ( Unaudited ) Special commission income 23 5,645,031 5,515,537 11,129,882 10,853,741 Special commission expense (2,694,616) (2,649,233) (5,309,655) (5,087,574) Net special commission income 2,950,415 2,866,304 5,820,227 5,766,167 Fee and commission income 23 1,026,968 1,06 2 , 008 2,113,920 2,1 28 , 228 Fee and commission expense (714,399) (7 17 , 744 ) (1,582,557) (1,42 1 , 327 ) Net fee and commission income 312,569 3 44 , 264 531,363 706,901 Exchange income, net 259,357 317,057 515,043 602,377 Gain from FVSI financial instruments , net 147,354 126,337 244,244 214,438 Dividend income 6,238 5,050 12,803 8,022 Gain on FVOCI debt instruments, net 7,741 49,610 220,125 49,610 Gain on amortised cost investments, net - 2,021 - 2,021 Other operating income 23,954 35,219 32,182 40,906 Other operating expense (44,369) (24,552) (100,970) (49,372) Net o ther operating ( expenses ) / income (20,415) 10,667 (68,788) (8,466) Total operating income 3,663,259 3,721,310 7,275,017 7,341,070 Provision for expected credit losses, net 18 (a) (5,421) (216,177) (171,918) (357,843) Operating expenses Salaries and employee related expenses (591,815) (590,082) (1,186,491) (1,169,617) Rent and premises related expenses (19,590) (14,783) (40,731) (31,963) Depreciation and amorti sation (241,479) (215,495) (407,378) (361,187) General and administrative expenses (257,267) (253,468) (576,282) (582,008) Total operating expenses (1,110,151) (1,073,828) (2,210,882) (2,144,775) Income from operating activities 2,547,687 2,431,305 4,892,217 4,838,452 Share in earnings of an associate 7 2,463 47,936 68,625 89,313 Net income for the period before Zakat and income tax 2,550,150 2,479,241 4,960,842 4,927,765 Provision for income tax 14 (11,263) (167,567) (183,959) (295,430) Provision for Zakat 14 (207,812) (185,074) (359,647) (370,448) Net income for the period after Zakat and income tax 2,331,075 2,126,600 4,417,236 4,261,887 Basic and diluted earnings per share 15 1.02 0.97 1.96 1.95 *Refer to note 23 The accompanying notes 1 to 24 form an integral part of this interim condensed consolidated financial information. Lama Ghazzaoui Chief Financial Officer Tony Cripps Chief Executive Officer & Managing Director
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Saudi Awwal Bank Interim condensed consolidated statement of comprehensive income For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 4 For the three-month ended For the six-month ended 30 June 2026 ( Unaudited ) 30 June 2025 ( Unaudited ) 30 June 2026 ( Unaudited ) 30 June 2025 ( Unaudited ) Net income for the period after Zakat and income tax 2,331,075 2,126,600 4,417,236 4,261,887 Other comprehensive income / (loss) for the period Items that will not be reclassified to interim condensed consolidated statement of income in subsequent periods Net changes in fair value of FVOCI equity instruments 13,884 37,441 (6,103) 23,906 Re-measurement of defined benefit liability (930) (1,181) (930) (1,181) Items that will be reclassified to interim condensed consolidated statement of income in subsequent periods Debt instrument at FVOCI : Net changes in fair value 12,489 59,192 (69,921) 1,509,439 Transfer to interim condensed conso lidated statement of income, net 3,773 (14,483) (160,613) (14,483) Cash flow hedges : Net changes in fair value (4,402) 15,941 (10,443) 28,529 Total other comprehensive income / (loss) for the period 24,814 96,910 (248,010) 1,546,210 Total comprehensive income for the period 2,355,889 2,223,510 4,169,226 5,808,097 The accompanying notes 1 to 24 form an integral part of this interim condensed consolidated financial information. Lama Ghazzaoui Chief Financial Officer Tony Cripps Chief Executive Officer & Managing Director
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Saudi Awwal Bank Interim condensed consolidated statement of changes in equity For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 5 30 June 2026 (Unaudited) Attributable to equity holders of the Bank Additional Tier 1 Sukuk Total equity Note Share capital Share premium Statutory reserve Other reserves Retained earnings Proposed dividends Total Balance at the beginning of the period 20,547,945 8,524,882 20,547,945 (354,432) 17,685,699 - 66,952,039 12,386,500 79,338,539 Total comprehensive income / (loss) for the period Net income for the period after Zakat and income tax - - - - 4,417,236 - 4,417,236 - 4,417,236 Net changes in fair value of cash flow hedges - - - (10,443) - - (10,443) - (10,443) Net changes in fair value of FVOCI equity instruments - - - (6,103) - - (6,103) - (6,103) Net changes in fair value of FVOCI debt instruments - - - (69,921) - - (69,921) - (69,921) Re-measurement of defined benefit liability - - - (930) - - (930) - (930) Transfer to interim condensed consolidated statement of income, net - - - (160,613) - - (160,613) - (160,613) - - - (248,010) 4,417,236 - 4,169,226 - 4,169,226 Purchase of treasury shares - - - (196,431) - - (196,431) - (196,431) Employee share plan reserve net charge and shares vested - - - 32,602 - - 32,602 - 32,602 Additional Tier 1 Sukuk payments - - - - (392,705) - (392,705) - (392,705) Additional Tier 1 Sukuk issuance cost - - - - (3,615) - (3,615) - (3,615) 2025 final dividend, net of Zakat and income tax 21 - - - - (2,069,736) - (2,069,736) - (2,069,736) Balance at the end of the period 20,547,945 8,524,882 20,547,945 (766,271) 19,636,879 - 68,491,380 12,386,500 80,877,880 30 June 2025 (Restated)* (Unaudited) Attributable to equity holders of the Bank Additional Tier 1 Sukuk Total equity Note Share capital Share premium Statutory reserve Other reserves Retained earnings Proposed dividends Total Balance at the beginning of the period 20,547,945 8,524,882 20,547,945 (2,818,768) 11,464,384 2,054,795 60,321,183 7,965,000 68,286,183 Effect of restatement 23 - - - 918,484 242,086 - 1,160,570 - 1,160,570 Balance at the beginning of the period (restated) 20,547,945 8,524,882 20,547,945 (1,900,284) 11,706,470 2,054,795 61,481,753 7,965,000 69,446,753 Total comprehensive income / (loss) for the period Net income for the period after Zakat and income tax - - - - 4,261,887 - 4,261,887 - 4,261,887 Net changes in fair value of cash flow hedges - - - 28,529 - - 28,529 - 28,529 Net changes in fair value of FVOCI equity instruments - - - 23,906 - - 23,906 - 23,906 Net changes in fair value of FVOCI debt instruments - - - 1,509,439 - - 1,509,439 - 1,509,439 Re-measurement of defined benefit liability - - - (1,181) - - (1,181) - (1,181) Transfer to interim condensed consolidated statement of income, net - - - (14,483) - - (14,483) - (14,483) - - - 1,546,210 4,261,887 - 5,808,097 - 5,808,097 Employee share plan reserve net charge and shares vested - - - 32,999 - - 32,999 - 32,999 Additional Tier 1 Sukuk payments - - - - (259,439) - (259,439) - (259,439) Additional Tier 1 Sukuk issued - - - - - - - 2,437,500 2,437,500 Additional Tier 1 Sukuk issuance cost - - - - (12,584) - (12,584) - (12,584) 2024 final dividend, net of Zakat and income tax 21 - - - - 262,497 (2,054,795) (1,792,298) - (1,792,298) Balance at the end of the period 20,547,945 8,524,882 20,547,945 (321,075) 15,958,831 - 65,258,528 10,402,500 75,661,028 *Refer to note 23 The accompanying notes 1 to 24 form an integral part of this interim condensed consolidated financial information Lama Ghazzaoui Chief Financial Officer Tony Cripps Chief Executive Officer & Managing Director
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Saudi Awwal Bank Interim condensed consolidated statement of cash flows For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 6 Notes 30 June 2026 (Unaudited) 30 June 2025 (Restated)* (Unaudited) Net income for the period before Zakat and income tax 4,960,842 4,927,765 OPERATING ACTIVITIES Adjustments to reconcile net income before Zakat and income tax to net cash from operating activities: Amortisation of premium on investments not held as FVSI investments, net (112,389) (200,060) Depreciation and amortisation 407,378 361,187 Special commission expense on debt securities in issue and term loans 241,340 187,443 Special commission expense on lease liabilities 6,665 5,433 Gain on amortised investments, net - (2,021) Gain on FVOCI financial instruments (59,512) (35,127) Income transferred to interim condensed consolidated statement of income (160,613) (14,483) Share in earnings of an associate 7 (68,625) (89,313) Provision for expected credit losses, net 18 (a) 171,918 357,843 Employee share plan reserve 32,602 32,999 5,419,606 5,531,666 Change in operating assets: Statutory deposit with SAMA (633,264) (1,134,113) Due from banks and other financial institutions - 39,156 Investments held as FVSI (20,533) (368,421) Loans and advances (21,754,012) (23,586,751) Positive fair value derivatives (284,964) 684,644 Other assets (612,402) (299,982) Change in operating liabilities: Due to banks (3,408,176) (1,881,649) Customers’ deposits 18,883,233 29,992,082 Negative fair value derivatives 75,988 (606,376) Other liabilities (302,272) (589,813) (2,636,796) 7,780,443 Special commission paid on debt securities in issue and term loans (195,551) (201,544) Zakat and income tax paid (976,643) (991,655) Net cash (used in) / generated from operating activities (3,808,990) 6,587,244 INVESTING ACTIVITIES Proceeds from sale and maturity of investments not held as FVSI 11,393,497 1,754,627 Purchase of investments not held as FVSI (3,453,305) (9,019,490) Dividend received from an associate 170,872 204,855 Purchase of property, equipment and intangibles, net (295,967) (369,087) Net cash generated from / (used in) investing activities 7,815,097 (7,429,095) FINANCING ACTIVITIES Proceed from issuance of debt securities and term loans 4,639,073 - Repayment of debt securities in issue (1,090,295) - Payment of lease liabilities (57,437) (48,676) Dividends paid (2,062,230) (1,785,948) Purchase of treasury shares (196,431) - Additional Tier 1 Sukuk payments (392,705) (259,439) Additional Tier 1 Sukuk issuance - 2,437,500 Additional Tier 1 Sukuk issuance cost (3,615) (12,584) Net cash generated from financing activities 836,360 330,853 Net change in cash and cash equivalents 4,842,46 7 (510,998) Cash and cash equivalents at beginning of the period 16 9,527,251 5,491,697 Cash and cash equivalents at end of the period 16 14,369,718 4,980,699 Special commission income received 23 10,877,411 10,644,521 Special commission expense paid (4,930,547) (5,022,740) Supplemental non - cash information Net changes in fair value and transfers to interim condensed consolidated statement of income (248,010) 1,546,210 *Refer to note 23 The accompanying notes 1 to 24 form an integral part of this interim condensed consolidated financial information. Lama Ghazzaoui Chief Financial Officer Tony Cripps Chief Executive Officer & Managing Director
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 7 1. General and basis of preparation Saudi Awwal Bank (‘SAB’) is a Saudi joint stock company incorporated in the Kingdom of Saudi Arabia and was established by a Royal Decree No. M/4 dated 12 Safar 1398H (21 January 1978). SAB formally commenced business on 26 Rajab 1398H (1 July 1978) by taking over of the operations of The British Bank of the Middle East in the Kingdom of Saudi Arabia. SAB operates under Commercial Registration No. 1010025779 and Unified No. 7000018668 dated 22 Dhul Qadah 1399H (13 October 1979) as a commercial bank through a network of 101 branches (31 December 2025: 100 branches) in the Kingdom of Saudi Arabia. The address of SAB’s head office is as follows: Saudi Awwal Bank 7383 King Fahad Branch Rd 2338 Al Yasmeen Dist. 13325 Riyadh Kingdom of Saudi Arabia The shareholders of the Saudi British Bank and Alawwal Bank (“AAB”) approved the merger of the two banks at Extraordinary General Meetings held on 15 May 2019 pursuant to Articles 191-193 of the Companies Law issued under Royal Decree No. M3 dated 28/1/1437H (corresponding to 10/11/2015G) (the "Companies Law"), and Article 49 (a) (1) of the Merger and Acquisitions Regulations issued by the Capital Markets Authority of the Kingdom of Saudi Arabia (the “CMA”). Subsequent to the above merger, the Group has changed its commercial name from "The Saudi British Bank" to "Saudi Awwal Bank" effective from 11 June 2023. The objectives of SAB are to provide a range of banking services. SAB also provides Shariah-compliant products, which are approved and supervised by an independent Shariah Committee established by SAB. The details of the Group's subsidiaries and associate are as follows: Name of subsidiaries / associate Ownership % Description 2026 2025 Arabian Real Estate Company Limited (“ARECO”) 100% 100% A limited liability company incorporated in the Kingdom of Saudi Arabia under the unified No. 7001750764 dated 12 Jumada I 1424H (12 July 2003). ARECO is engaged in real estate activities. SAB Markets Limited 100% 100% A limited liability company incorporated in the Cayman Islands under commercial registration No. 323083 dated 21 Shaban 1438H (17 May 2017). SAB Markets is engaged in derivatives trading and repo activities. Alawwal Invest Company (“SAB Invest”) 100% 100% A closed joint stock company incorporated in the Kingdom of Saudi Arabia under the unified No. 7001571335 dated 30 Thul-Hijjah 1428H (9 January 2008). Alawwal Invest was formed and licensed as a capital market institution in accordance with the CMA’s Resolution No. 1 39 2007. SAB Invest’s principal activity is to engage in security activities regulated by the CMA related to dealing, managing, arranging, advising, and taking custody of securities. Alawwal Real Estate Company (“AREC”) 100% 100% A limited liability company incorporated in the Kingdom of Saudi Arabia under the unified No. 7001711535 dated 21 Jumada I 1429H (26 May 2008). AREC is engaged in the real estate activities. X-Tech fund 100% 100% A private equity fund incorporated in the Kingdom of Saudi Arabia dated 12 Shawwal 1445H (21 April 2024) which is engaged in investing activities and managed by SAB Invest. HSBC Saudi Arabia (Associate) 49% 49% A closed joint stock company incorporated in the Kingdom of Saudi Arabia under the unified No. 7001507842 dated 27 Jumada II 1427H (23 July 2006). HSBC Saudi Arabia is an associate of the Group, formed and licensed as a capital market institution in accordance with the Resolution No. 37-05008 of the CMA dated 05 Thul-Hijjah 1426H corresponding to 05 January 2006. HSBC Saudi Arabia’s principal activity is to engage in securities activities regulated by the CMA related to dealing, managing, arranging, advising, and taking custody of securities.
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 8 1.1. Basis of preparation This interim condensed consolidated financial information of the Group as at and for the period ended 30 June 2026 has been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting” as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”). The interim condensed consolidated information does not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with Group’s annual consolidated financial statements as at 31 December 2025. SAB presents its interim condensed consolidated statement of financial position in the order of liquidity. This interim condensed consolidated financial information is expressed in Saudi Arabian Riyals ( SAR) and is rounded off to the nearest thousands, except where otherwise indicated. 1.2. Basis of consolidation This interim condensed consolidated financial information comprises the interim financial information of SAB and its subsidiaries, as mentioned in note 1 (collectively referred to as “the Group”). The financial information of the subsidiaries is prepared for the same reporting period as that of SAB, using consistent accounting policies. Subsidiaries are entities which are directly or indirectly controlled by SAB. SAB controls an entity (“the Investee”) over which it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are consolidated from the date on which control is transferred to SAB and cease to be consolidated from the date on which the control is transferred from SAB. Intra-group transactions and balances have been eliminated in preparing this interim condensed consolidated financial information. The Group acts as a Fund Manager to a number of investment funds. Determining whether the Group controls such an investment fund usually focuses on the assessment of the aggregate economic interests of the Group in the Fund (comprising any carried interests and expected management fees) and the investors' rights to remove the Fund Manager. As a result, the Group has concluded that it acts as an agent for the investors in all cases except as mentioned in note 1, and therefore has not consolidated these funds.
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 9 2. Material accounting policies, estimates, assumptions, and impact of changes due to adoption of new standards The accounting policies, estimates and assumptions used in the preparation of this interim condensed consolidated financial information is consistent with those used in the preparation of the annual consolidated financial statements for the year ended 31 December 2025 unless otherwise stated. New standards, interpretations and amendments adopted by the Group The following standards, interpretations or amendments are effective from the annual periods beginning on or after 1 January 2026 and are adopted by the Group, however, these do not have any significant impact on the interim condensed consolidated financial information for the period: Accounting Standards, interpretations, amendments Description Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments Under the amendments, certain financial assets including those with environmental, social governance (ESG) linked features could now meet the SPPI criterion, provided that their cash flows are not significantly different from an identical financial asset without such a feature. The IASB has amended IFRS 9 to clarify when a financial asset or a financial liability is recognised and derecognised and to provide an exception for certain financial liabilities settled using an electronic payment system. Annual improvements to IFRS – Volume 11 Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. New standards, interpretations and amendments issued but not yet effective The International Accounting Standard Board (IASB) has issued the following accounting standards and / or amendments, which will become effective from periods beginning on or after 1 January 2027. The Group has opted not to early adopt these pronouncements and is in the process of assessing the impact on the interim condensed consolidated financial information of the Group. Accounting Standards, interpretations, amendments Description Effective periods beginning on or after Amendments to IFRS 10 and IAS 28- Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Partial gain or loss recognition for transactions between an investor and its associate or joint venture only apply to the gain or loss resulting from the sale or contribution of assets that do not constitute a business as defined in IFRS 3 (Business Combinations) and the gain or loss resulting from the sale or contribution to an associate or a joint venture of assets that constitute a business as defined in IFRS 3 is recognised in full. Effective date deferred indefinitely IFRS 18 – Presentation and Disclosure in Financial Statements IFRS 18 ‘Presentation and Disclosure in Financial Statements’, as endorsed in Kingdom of Saudi Arabia (IFRS 18) will replace IAS 1 ‘Presentation of Financial Statements’’ as endorsed in the Kingdom of Saudi Arabia, for annual reporting periods beginning on or after 1 January 2027. Earlier application is permitted. The Bank has not early adopted IFRS 18 in preparing this interim condensed consolidated financial information. The Bank has established a formal IFRS 18 implementation programme overseen by senior management and the Audit Committee, supported by a cross-functional working group comprising representatives from Financial Reporting, Treasury, Credit Risk & Risk Management and Information Technology functions. The programme includes assessments of financial statement presentation, management reporting, data and systems requirements and reporting implications. The Bank is currently assessing the estimated impact that the initial application of IFRS 18 will have on its consolidated financial statements. Based on the assessment performed to date, the expected impacts pertain to the presentation, aggregation, disaggregation and disclosure of information within the consolidated financial statements.
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 10 Presentation of Statement of Income IFRS 18 requires entities to classify income and expenses into specified categories within the statement of income, namely operating, investing, financing, income taxes and discontinued operations. It also introduces mandatory subtotal including Operating Profit and Profit for the year Neither total profit for the period nor total equity is expected to change as a result of adopting IFRS 18. However, the Bank expects changes to the presentation and classification of certain income and expense items within the statement of income, including the introduction of IFRS-defined subtotals. Based on its preliminary assessment, the Bank has concluded that providing financing to customers and investing in financial assets as part of its banking activities constitute specified main business activities for the purposes of IFRS 18. Based on this, the Bank expects the following impacts on the interim condensed consolidated financial information: Financing income arising from customer financing assets, investment securities and treasury activities supporting the Bank's specified main business activities is expected to be presented within the operating category. Funding costs relating to customer deposits, debt securities issued and other financing liabilities that support the Bank's specified main business activities are expected to be presented within the operating category. Foreign exchange differences are expected to be classified in the same category as the underlying assets and liabilities giving rise to those differences. Based on the Bank's current assessment, the majority of foreign exchange differences arise from financing, treasury and investment activities that support the Bank's core banking operations and are therefore expected to be presented within operating performance. The Bank continues to assess whether any foreign exchange differences relate to activities that may require presentation outside the operating category under IFRS 18. Gains and losses arising from derivatives designated in hedging relationships are expected to be presented in the same category as the underlying hedged exposures. Based on the Bank's current assessment, the majority of derivatives are associated with customer financing, treasury and funding activities that support the Bank's core banking operations and are therefore expected to be presented within operating performance. The Bank continues to assess whether any derivatives relate to activities that may require presentation outside the operating category under IFRS 18. The share of profit or loss from associates and joint ventures accounted for using the equity method, if any, will be presented within the investing category and outside operating profit as required by IFRS 18. Certain expenses arising from liabilities or other obligations that are not directly linked to the Bank's specified main business activities, i.e. interest charge on lease liabilities and the interest cost of employee benefit obligations are currently being assessed and would be presented within the financing category in accordance with IFRS 18. In addition, IFRS 18 may require changes to certain line-item descriptions, subtotals and disclosures currently presented in the statement of income. The assessment remains subject to completion of the Bank's implementation activities and any future interpretative or regulatory developments. Management-defined Performance Measures IFRS 18 introduces new disclosure requirements for Management-defined Performance Measures ("MPMs"), which are subtotals of income and expenses used in public communications to communicate management's view of an aspect of the Bank's financial performance. Such measures will be required to be disclosed within a single note to the financial statements together with explanations of their purpose and reconciliations to the most directly comparable IFRS-defined totals or subtotals. The Bank is assessing whether measures communicated externally, net operating income before impairment provision or other performance metrics that meet the definition of Management-defined Performance Measures under IFRS 18 and may therefore require enhanced disclosures and reconciliations. Principles of Aggregation and Disaggregation IFRS 18 introduces enhanced requirements relating to the aggregation and disaggregation of information throughout the financial statements and accompanying notes. These requirements are intended to improve transparency by ensuring that material information is presented separately and dissimilar items are not obscured through aggregation. The Bank is currently assessing whether additional disaggregation may be required for other assets, other liabilities, other operating income, other general and administrative expenses, other operating expenses. The Bank also expects certain line-item descriptions currently used within the financial statements to be refined to enhance clarity and consistency with the objectives of IFRS 18.
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 11 Consequential Amendments IFRS 18 introduces consequential amendments to other IFRS, including IAS 7 Statement of Cash Flows, IAS 33 Earnings per Share and IAS 34 Interim Financial Reporting. The Bank is currently assessing the impact of these amendments, including potential changes to the presentation of operating cash flows and the classification of interest, dividends and other cash flow items. The Bank is also evaluating requirements relating to comparative information and retrospective application upon adoption of IFRS 18. The Bank's assessment remains ongoing and further refinements to the expected impact may arise as implementation activities progress, industry practice evolves and additional guidance from regulators and standard setters become available. 3. Cash and balances with SAMA 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Cash in hand 1,890,868 2,003,426 2,058,955 Statutory deposit 17,827,404 17,194,140 16,298,269 Placements with SAMA 3,600,000 4,511,000 - Other balances 1,747 131,530 107,115 Total 23,320,019 23,840,096 18,464,339 4. Due from banks and other financial institutions, net a) Due from banks and other financial institutions are classified as follows: 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Current accounts 4,251,612 2,881,295 2,814,629 Money market placements 4,625,491 - 98,284 Provision for expected credit losses (3,236) (3,114) (675) Total 8,873,867 2,878,181 2,912,238 b) Credit quality analysis The following table sets out information about the credit quality of due from banks and other financial institutions, net: 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Purchased credit Impaired Total 30 June 2026 (Unaudited) 8,872,115 1,655 97 - 8,873,867 31 December 2025 (Audited) 2,878,181 - - - 2,878,181 30 June 2025 (Unaudited) 2,912,238 - - - 2,912,238 c) Movement in provision for expected credit losses The following table shows reconciliations from the opening to the closing balance of the provision for expected credit losses against due from banks and other financial institutions: 30 June 2026 (Unaudited) 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Balance at 1 January 2026 3,114 - - 3,114 Transfer to lifetime ECL not credit impaired (100) 100 - - Transfer to lifetime ECL credit impaired (23) - 23 - Net change for the period (182) 226 78 122 Balance as at 30 June 2026 2,809 326 101 3,236
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 12 31 December 2025 (Audited) 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Balance at 1 January 2025 829 - - 829 Net change for the year 2,285 - - 2,285 Balance as at 31 December 2025 3,114 - - 3,114 30 June 2025 (Unaudited) 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Balance at 1 January 2025 829 - - 829 Net change for the period (154) - - (154) Balance as at 30 June 2025 675 - - 675 5. Investments, net Investment securities are classified as follows: Notes 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Restated) (Unaudited) FVOCI – Debt 57,435,898 63,540,042 61,595,393 FVOCI – Equity 23 1,645,402 1,647,137 1,552,135 FVSI – Debt 727,603 709,664 719,471 FVSI – Equity 23 978,353 975,759 894,087 Held at amortised cost 39,042,600 40,775,951 44,221,961 Provision for expected credit losses for investments held at amortised cost (8,091) (6,655) (6,720) Total 99,821,765 107,641,898 108,976,327 The following table sets out information about the credit quality of debt instruments measured at amortised cost and FVOCI. 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Purchased credit impaired Total 30 June 2026 (Unaudited) Debt instruments at amortised cost, net 39,034,509 - - - 39,034,509 Debt instruments at FVOCI 57,435,898 - - - 57,435,898 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Purchased credit impaired Total 31 December 2025 (Audited) Debt instruments at amortised cost, net 40,769,296 - - - 40,769,296 Debt instruments at FVOCI 63,540,042 - - - 63,540,042 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Purchased credit impaired Total 30 June 2025 (Unaudited) Debt instruments at amortised cost, net 44,215,241 - - - 44,215,241 Debt instruments at FVOCI 61,595,393 - - - 61,595,393
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 13 An analysis of changes in provision for ECL of debt instruments measured at amortised cost: 30 June 2026 (Unaudited) 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Balance at 1 January 2026 6,655 - - 6,655 Net re-measurement of loss allowance 1,436 - - 1,436 Balance as at 30 June 2026 8,091 - - 8,091 31 December 2025 (Audited) 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Balance at 1 January 2025 8,783 - - 8,783 Net re-measurement of loss allowance (2,128) - - (2,128) Balance as at 31 December 2025 6,655 - - 6,655 30 June 2025 (Unaudited) 12 month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Balance at 1 January 2025 8,783 - - 8,783 Net re-measurement of loss allowance (2,063) - - (2,063) Balance as at 30 June 2025 6,720 - - 6,720 Investments by type and composition of securities is as follows: 30 June 2026 (Unaudited) Domestic International Total Quoted Unquoted Total Fixed rate securities 72,964,522 9,713,281 82,677,803 80,390,716 2,287,087 82,677,803 Floating rate securities 14,520,207 - 14,520,207 12,270,209 2,249,998 14,520,207 Equities and mutual funds 2,260,951 362,804 2,623,755 1,167,242 1,456,513 2,623,755 Total 89,745,680 10,076,085 99,821,765 93,828,167 5,993,598 99,821,765 31 December 2025 (Audited) Domestic International Total Quoted Unquoted Total Fixed rate securities 78,889,484 9,720,264 88,609,748 85,882,974 2,726,774 88,609,748 Floating rate securities 16,409,254 - 16,409,254 13,879,580 2,529,674 16,409,254 Equities and mutual funds 2,235,917 386,979 2,622,896 1,179,572 1,443,324 2,622,896 Total 97,534,655 10,107,243 107,641,898 100,942,126 6,699,772 107,641,898 30 June 2025 (Unaudited) (Restated) Domestic International Total Quoted Unquoted Total Fixed rate securities 81,213,317 9,179,922 90,393,239 88,288,750 2,104,490 90,393,240 Floating rate securities 16,136,866 - 16,136,866 13,826,514 2,310,351 16,136,865 Equities and mutual funds 2,143,315 302,907 2,446,222 1,227,703 1,218,519 2,446,222 Total 99,493,498 9,482,829 108,976,327 103,342,967 5,633,360 108,976,327
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 14 Assets pledged Assets pledged as collateral with other financial institutions for security are as follows: 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Assets Related liabilities Assets Related liabilities Assets Related liabilities Debt securities 7,237,275 6,549,456 8,527,894 8,312,154 20,437,429 20,092,340 6. Loans and advances, net Loans and advances comprise of the following : 30 June 2026 (Unaudited) Corporate and institutional lending Retail lending Corporate & Institutional Banking MSME Home loan Personal loan Other retail lending Credit cards Total 12 month ECL 215,732,700 12,416,323 42,056,412 23,312,937 7,995,158 3,426,129 304,939,659 Lifetime ECL not credit impaired 10,833,588 304,031 2,011,501 746,773 411,886 179,741 14,487,520 Lifetime ECL credit impaired 3,172,136 430,134 667,781 157,124 2,916 67,681 4,497,772 Purchased or originated credit impaired 3,216,949 290,740 144 136,149 - 167 3,644,149 Total loans and advances, gross 232,955,373 13,441,228 44,735,838 24,352,983 8,409,960 3,673,718 327,569,100 Provision for expected credit losses (5,998,229) (249,960) (312,514) (517,311) (56,621) (227,222) (7,361,857) Balance as at 30 June 2026 226,957,144 13,191,268 44,423,324 23,835,672 8,353,339 3,446,496 320,207,243 Non-performing loans and advances 3,233,724 428,102 340,170 98,480 5,280 42,431 4,148,187 31 December 2025 (Audited) Corporate and institutional lending Retail lending Corporate & Institutional Banking MSME Home loan Personal loan Other retail lending Credit cards Total 12 month ECL 191,679,662 12,773,495 39,793,103 21,402,414 7,912,678 3,573,679 277,135,031 Lifetime ECL not credit impaired 16,636,095 645,829 2,018,364 928,403 81,322 185,231 20,495,244 Lifetime ECL credit impaired 3,321,656 432,888 588,062 144,126 1,957 64,175 4,552,864 Purchased or originated credit impaired 3,293,359 215,689 1,254 136,130 - 63 3,646,495 Total loans and advances, gross 214,930,772 14,067,901 42,400,783 22,611,073 7,995,957 3,823,148 305,829,634 Provision for expected credit losses (5,831,393) (245,803) (308,999) (533,702) (40,246) (242,986) (7,203,129) Balance as at 31 December 2025 209,099,379 13,822,098 42,091,784 22,077,371 7,955,711 3,580,162 298,626,505 Non-performing loans and advances 3,215,295 432,394 313,334 85,750 5,012 36,925 4,088,710
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 15 30 June 2025 (Unaudited) Corporate and institutional lending Retail lending Corporate & Institutional Banking MSME Home loan Personal loan Other retail lending Credit cards Total 12 month ECL 179,132,331 11,703,881 38,468,041 21,051,028 5,631,691 3,392,207 259,379,179 Lifetime ECL not credit impaired 17,734,737 608,916 1,580,950 630,662 979,701 131,646 21,666,612 Lifetime ECL credit impaired 3,340,331 407,342 558,831 156,879 13,869 64,140 4,541,392 Purchased or originated credit impaired 3,373,672 211,450 2,797 121,008 - 210 3,709,137 Total loans and advances, gross 203,581,071 12,931,589 40,610,619 21,959,577 6,625,261 3,588,203 289,296,320 Provision for expected credit losses (5,301,503) (280,833) (288,652) (533,850) (43,484) (244,180) (6,692,502) Balance as at 30 June 2025 198,279,568 12,650,756 40,321,967 21,425,727 6,581,777 3,344,023 282,603,818 Non-performing loans and advances 3,262,156 399,766 309,396 91,404 11,935 38,909 4,113,566 The comparative figures have been disaggregated to align with the current period’s presentation. Other retail lending, previously presented as a single category, has been separated into Home Loans, Personal Loan and Other retail lending. Similarly, corporate and institutional banking previously presented as a single category, have been further disaggregated into Micro, Small and Medium Enterprises (MSME) exposures. Lifetime ECL credit impaired includes non-performing loans and advances. It also includes exposures that are now performing but have yet to complete a period of 12 months of performance (‘the curing period’) to be eligible to be upgraded to a not-impaired category. The financial assets recorded in each stage have the following characteristics: 12 month ECL not credit impaired (stage 1): without significant increase in credit risk on which a 12-month allowance (or lower if the tenor of the facility is less than 12 months) for ECL is recognised; Lifetime ECL not credit impaired (stage 2): a significant increase in credit risk has been experienced since initial recognition on which a lifetime ECL is recognised; Lifetime ECL credit impaired (stage 3): objective evidence of impairment, and are therefore considered to be in default or otherwise credit impaired on which a lifetime ECL is recognised; and Purchased or originated credit impaired (‘POCI’): purchased or originated at a deep discount that reflects the expected lifetime credit losses at time of purchase or origination. A lifetime ECL is recognised if further credit losses are expected. POCI includes non-performing loans and advances acquired through the merger with Alawwal Bank (AAB) that were recorded at fair value as of acquisition date. The following table shows reconciliations from the opening to the closing balance of the provision for credit losses against loans and advances: 30 June 2026 (Unaudited) Non-credit impaired Credit impaired Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2026 875,645 2,721,389 2,275,943 1,330,152 7,203,129 Transfer to Stage 1 108,817 (97,001) (11,816) - - Transfer to Stage 2 (25,736) 68,831 (43,095) - - Transfer to Stage 3 (4,212) (287,008) 291,220 - - Net re-measurement of loss allowance 97,320 252,639 394,295 111,348 855,602 Write-offs - - (696,874) - (696,874) Balance as at 30 June 2026 1,051,834 2,658,850 2,209,673 1,441,500 7,361,857
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 16 31 December 2025 (Audited) Non-credit impaired Credit impaired Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2025 684,521 2,170,597 2,168,921 1,234,562 6,258,601 Transfer to Stage 1 56,338 (39,423) (16,915) - - Transfer to Stage 2 (22,064) 88,737 (66,673) - - Transfer to Stage 3 (4,736) (86,784) 91,520 - - Net re-measurement of loss allowance 161,586 588,262 557,487 95,590 1,402,925 Write-offs - - (458,397) - (458,397) Balance as at 31 December 2025 875,645 2,721,389 2,275,943 1,330,152 7,203,129 30 June 2025 (Unaudited) Non-credit impaired Credit impaired Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2025 684,521 2,170,597 2,168,921 1,234,562 6,258,601 Transfer to Stage 1 40,094 (29,454) (10,640) - - Transfer to Stage 2 (19,195) 50,357 (31,162) - - Transfer to Stage 3 (3,298) (183,534) 186,832 - - Net re-measurement of loss allowance 101,366 279,571 363,935 84,748 829,620 Write-offs - - (395,719) - (395,719) Balance as at 30 June 2025 803,488 2,287,537 2,282,167 1,319,310 6,692,502 7. Investment in an associate 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) HSBC Saudi Arabia Balance at beginning of the period / year 399,507 463,350 463,350 Share in earnings 68,625 141,012 89,313 Dividend received (170,872) (204,855) (204,855) Balance at end of the period / year 297,260 399,507 347,808 The associate’s financial statements: 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Total assets 944,250 1,213,653 1,077,790 Total liabilities 393,090 450,139 398,317 Total equity 551,160 763,514 679,473 Total income 344,925 760,985 450,859 Total expenses 192,909 465,092 283,071 Net income 152,016 295,893 167,788
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 17 8. Goodwill and other intangibles, net Intangibles are comprised of the following: 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Amounts arising from acquisitions: Goodwill 8,778,091 8,778,091 8,778,091 Other intangibles 1,106,895 1,188,863 1,270,831 Goodwill and other intangibles 9,884,986 9,966,954 10,048,922 Software 1,340,467 1,252,372 1,111,833 Total 11,225,453 11,219,326 11,160,755 Impairment testing of goodwill The goodwill acquired through business combination is reviewed annually for impairment. However, at each reporting period, an assessment is made for indicators of impairment. If indicators exist, an impairment test is required. The impairment test compares the estimated recoverable amount of the Group’s CGUs that carry goodwill, as determined through a Value-In-Use (VIU) model, with the carrying amount of net assets of each CGU. The goodwill has been allocated to the following cash-generating units: • Wealth & personal banking • Corporate and institutional banking • Treasury As at 30 June 2026, no impairment indicators were identified. Therefore, no impairment test was performed. The key assumptions, valuations and techniques used in assessing the impairment’s indicators are applied consistently as those at year end test at 31 December 2025.
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 18 9. Derivatives The table below sets out the positive and negative fair values of derivative financial instruments together with their notional amounts. The notional amounts, which provide an indication of the volumes of the transactions outstanding at the end of the period, do not necessarily reflect the amounts of future cash flows involved. These notional amounts, therefore, are neither indicative of the Group’s exposure to credit risk, which is generally limited to the positive fair value of the derivatives, nor to market risk. 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Positive fair Value Negative fair Value Notional Positive fair value Negative fair value Notional Positive fair value Negative fair value Notional Derivatives held for trading: Special commission rate swaps 1,567,986 (1,427,274) 122,956,124 1,561,418 (1,321,329) 128,634,808 1,548,674 (1,404,495) 115,344,699 Special commission rate options 204,257 (211,339) 7,640,377 204,190 (213,364) 8,091,300 204,389 (215,455) 8,410,554 Forward foreign exchange contracts 161,926 (125,730) 95,811,913 33,630 (31,728) 10,170,236 145,536 (120,259) 11,153,175 Currency swaps 270,466 (266,748) 29,696,385 182,904 (180,326) 28,849,453 18,580 (16,645) 7,354,659 Commodity swaps 245,998 (235,281) 1,171,148 414,213 (413,753) 364,232 43,840 (44,456) 291,997 Equity forward - (31,907) 326,360 - (5,435) 362,994 - (13,688) 354,911 Derivatives held as fair value hedges: Special commission rate swaps 229,348 (33,778) 19,553,750 3,271 (97,263) 4,378,750 5,371 (115,040) 4,378,750 Derivatives held as cash flow hedges: Special commission rate swaps 269 (17,043) 2,615,000 6,103 (7,921) 4,285,000 8,703 (9,748) 4,285,000 Currency swaps - (460) 1,500,000 - (2,453) 562,500 - (42) 562,500 Total 2,680,250 (2,349,560) 281,271,057 2,405,729 (2,273,572) 185,699,273 1,975,093 (1,939,828) 152,136,245 The following table sets out information about fair values netting: Fair values of netting arrangements 625,548 (402,181) 497,860 (346,354) 462,258 (230,011) Cash collateral, net (81,515) 1,219,005 (102,457) 740,395 (57,331) 648,263 Fair values after netting 544,033 816,824 395,403 394,041 404,927 418,252
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 19 The amounts relating to items designated as hedged items are as follows: Carrying amount Accumulated amount of fair value hedge adjustments on the hedge item included in the carrying amount of the hedge item Line item in the statement of financial position in which hedge item is included Change in value used for calculating hedge ineffectiveness Accumulated amount of fair value adjustments remaining in the statement of financial position for any hedge items that have ceased to be adjusted for hedging gains and lossesAssets Liabilities Assets Liabilities 30 June 2026 (Unaudited) Held as fair value hedges: Government Bonds/Sukuk 18,362,507 - - 80,340 Investment at FVOCI and Amortised cost (177,042) (63,133) Total 18,362,507 - - 80,340 (177,042) (63,133) 31 December 2025 (Audited) Held as fair value hedges: Government Bonds/Sukuk 4,129,637 - 96,702 - Investment at FVOCI and Amortised cost 118,802 (127,477) Total 4,129,637 - 96,702 - 118,802 (127,477) 30 June 2025 (Unaudited) Held as fair value hedges: Government Bonds/Sukuk 4,120,143 - 101,972 - Investment at FVOCI and Amortised cost 124,072 (151,786) Total 4,120,143 - 101,972 - 124,072 (151,786) The amounts relating to items designated as hedging instruments and hedge ineffectiveness are as follows: Positive fair value Negative fair value Notional amount Total Change in fair value used for calculating hedge ineffectiveness Changes in the value of the hedging instrument recognised in OCI Hedge ineffectiveness recognised in statement of income Amount reclassified from the hedge reserve to statement of income 30 June 2026 (Unaudited) Held as cash flow hedges: Special Commission rate swaps 269 (17,043) 2,615,000 (14,373) (14,373) - - Currency swaps - (460) 1,500,000 3,930 3,930 - - Total 269 (17,503) 4,115,000 (10,443) (10,443) - - 31 December 2025 (Audited) Held as cash flow hedges: Special Commission rate swaps 6,103 (7,921) 4,285,000 27,810 27,810 - - Currency swaps - (2,453) 562,500 (2,453) (2,453) - - Total 6,103 (10,374) 4,847,500 25,357 25,357 - - 30 June 2025 (Unaudited) Held as cash flow hedges: Special Commission rate swaps 8,704 (9,749) 4,285,000 56,651 56,651 - - Currency swaps - - - - - - - Total 8,704 (9,749) 4,285,000 56,651 56,651 - -
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 20 The amounts relating to items designated as hedged items are as follows: Line item in the statement of financial position in which hedge item is included Changes in value used for calculating hedge ineffectiveness Cash flow hedge reserve Balance remaining in cash flow hedge reserve for hedge relationships for which hedge accounting is no longer applied 30 June 2026 (Unaudited) Held as cash flow hedges: Government Bonds/Sukuk Investment at FVOCI / Amortised cost 10,443 (15,888) - Total 10,443 (15,888) - 31 December 2025 (Audited) Held as cash flow hedges: Government Bonds/Sukuk Investment at FVOCI / Amortised cost (25,357) (5,445) - Total (25,357) (5,445) - 30 June 2025 (Unaudited) Held as cash flow hedges: Government Bonds/Sukuk Investment at FVOCI / Amortised cost (53,374) (57,281) - Total (53,374) (57,281) - In the table below, the Group sets out the accumulated fair value adjustments arising from the corresponding continuing hedge relationships, irrespective of whether or not there has been a change in hedge designation during the year. Carrying Amount of Hedged Items Accumulated amount of fair value adjustments on the hedged items Assets Liabilities Assets Liabilities 30 June 2026 (Unaudited) Micro fair value hedges Fixed rate FVOCI debt instruments 14,836,505 - - 49,800 Fixed rate Held at amortised cost debt instruments 3,526,002 - - 30,540 Total 18,362,507 - - 80,340 31 December 2025 (Audited) Micro fair value hedges Fixed rate FVOCI debt instruments 4,128,746 - 96,652 - Fixed rate Held at amortised cost debt instruments 892 - 49 - Total 4,129,638 - 96,701 - 30 June 2025 (Unaudited) Micro fair value hedges Fixed rate FVOCI debt instruments 4,119,250 - 101,926 - Fixed rate Held at amortised cost debt instruments 893 - 46 - Total 4,120,143 - 101,972 -
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 21 The below table sets out the outcome of the Group’s hedging strategy, in particular, to changes in the fair value of the hedged items and hedging instruments in the current period and the comparative period, used as the basis for recognising ineffectiveness: 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Gains / (losses) attributable to hedged risk Hedge Ineffectiveness Gains / (losses) attributable to hedged risk Hedge Ineffectiveness Gains / (losses) attributable to hedged risk Hedge Ineffectiveness Hedged Items Hedging Instruments Hedged Items Hedging Instruments Hedged Items Hedging Instruments Hedged Items Hedging Instruments Micro fair value hedge relationship hedging assets Fixed rate FVOCI debt instruments Special commission rate swaps (146,452) 168,164 21,712 69,599 (55,983) 13,616 16,175 (12,976) 3,199 Fixed rate Held at amortised cost debt instruments Special commission rate swaps (30,590) 44,547 13,957 49,203 (49,477) (274) 14 - 14 Total (177,042) 212,711 35,669 118,802 (105,460) 13,342 16,189 (12,976) 3,213 The following table shows the maturity and interest rate risk profiles of the Group’s hedging instruments used in its cash flow hedges. As the Group applies one-to-one hedging ratios, the below table effectively shows the outcome of the cash flow hedges: Less than 1 month 1 to 3 months 3 to 12 months 1 to 5 years Over 5 years Total 30 June 2026 (Unaudited) Micro cash flow hedges Commission rate swaps Notional principal - 790,000 140,000 1,685,000 - 2,615,000 Average fixed rate - 5.00% 5.22% 4.62% - - Micro cash flow hedges Currency swaps - - - - - - Notional principal - - - 1,500,000 - 1,500,000 Average fixed rate - - - 3.70% - - Average USD/SAR rate - - - 3.75 - - 31 December 2025 (Audited) Micro cash flow hedges Commission rate swaps Notional principal - - - 4,285,000 - 4,285,000 Average fixed rate - - - 4.85% - - Micro cash flow hedges Currency swaps Notional principal - - - 562,500 - 562,500 Average fixed rate - - - 2.33% - - Average USD/SAR rate - - - 3.75 - - 30 June 2025 (Unaudited) Micro cash flow hedges Commission rate swaps Notional principal - - - 4,285,000 - 4,285,000 Average fixed rate - - - 4.49% - - Micro cash flow hedges Currency swaps Notional principal - - - - - - Average fixed rate - - - - - - Average USD/SAR rate - - - - - -
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 22 10. Customers’ deposits 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Demand 142,377,702 138,258,973 139,362,936 Time 194,944,294 179,981,969 152,891,830 Savings 2,988,478 3,288,144 2,835,580 Margin and others 1,846,613 1,744,768 1,912,395 Total 342,157,087 323,273,854 297,002,741 11. Debt securities in issue and term loans During the period ended 30 June 2026, SAB entered an arrangement of the syndicated borrowings (term loans) of USD 1 billion (equivalent to SAR3.75 billion) having maturity of three years and carry special commission expense rate of SOFR +0.75 bps payable quarterly. During the year ended 2025, SAB obtained the necessary approvals from SAMA for exercising its call option on its SAR5 billion Tier 2. The Sukuk was redeemed at face value (100% of issue price) at the end of 5 years from issuance. During 2025, SAB issued USD 1.25 billion (equivalent to SAR4.688 billion) Tier 2 Notes, under the Group’s Medium-Term Note Programme (the ‘International Programme’). The Notes are unsecured and due in 2035, with SAB having an option to repay the Tier 2 Notes after 5 years, subject to prior approval of SAMA and terms and conditions of the International Programme. The Notes carry special commission expense rate of 5.95% (fixed rate) payable semi-annually. In addition, SAB issued certificate of deposits (CDs) under its CDs programme and entered into an arrangement of bilateral borrowings. 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Debt securities in issue (Tier 2 Notes) 4,752,649 4,751,472 5,163,958 Certificate of deposits 2,038,223 2,201,495 - Term loans 4,699,249 942,587 - Total 11,490,121 7,895,554 5,163,958 Below is the movement of debt securities in issue (Tier 2 Notes): 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Balance at beginning of the period / year 4,751,472 5,178,059 5,178,059 Debt securities issued - 4,687,500 - Repayment of debt securities in issue - (5,000,000) - Other movements 1,177 (114,087) (14,101) Balance at the end of the period / year 4,752,649 4,751,472 5,163,958
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 23 12. Commitments and contingencies a) Legal proceedings There are no material outstanding legal matters against the Group. b) Credit related commitments and contingencies Credit related commitments and contingencies are as follows: 30 June 2026 (Unaudited) Stage 1 Stage 2 Stage 3 POCI Total Letters of credit 17,552,431 423,404 51,915 30,185 18,057,935 Letters of guarantee 145,255,604 1,028,688 2,019,698 761,655 149,065,645 Acceptances 3,160,408 76,767 - 2,254 3,239,429 Total 165,968,443 1,528,859 2,071,613 794,094 170,363,009 The Group’s total commitments to extend credit (non-firm commitments and irrevocable commitments) were SAR187,949 million for the period ended 30 June 2026. 31 December 2025 (Audited) Stage 1 Stage 2 Stage 3 POCI Total Letters of credit 17,069,977 831,764 30,401 54,123 17,986,265 Letters of guarantee 138,404,047 3,083,219 2,155,258 963,737 144,606,261 Acceptances 3,367,466 123,081 292 1,157 3,491,996 Total 158,841,490 4,038,064 2,185,951 1,019,017 166,084,522 The Group’s total commitments to extend credit were SAR192,218 million for the year ended 31 December 2025. 30 June 2025 (Unaudited) Stage 1 Stage 2 Stage 3 POCI Total Letters of credit 17,510,276 1,061,046 22,314 79,943 18,673,579 Letters of guarantee 129,260,776 3,791,080 2,229,047 1,115,200 136,396,103 Acceptances 4,730,902 245,030 632 - 4,976,564 Total 151,501,954 5,097,156 2,251,993 1,195,143 160,046,246 The Group’s total commitments to extend credit were SAR175,521 million for the period ended 30 June 2025. The following table shows reconciliations from the opening to the closing balance of the provision for expected credit losses on loan commitments and financial guarantee contracts: 30 June 2026 (Unaudited) Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2026 106,272 107,940 814,930 65,521 1,094,663 Transfer to stage 1 19,011 (19,011) - - - Transfer to stage 2 (167) 167 - - - Transfer to stage 3 (2) (1,166) 1,168 - - Net re-measurement of loss allowance 40,191 (4,269) (34,398) 654 2,178 Balance as at 30 June 2026 165,305 83,661 781,700 66,175 1,096,841 31 December 2025 (Audited) Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2025 74,421 308,898 685,107 69,496 1,137,922 Transfer to stage 1 13,605 (13,603) (2) - - Transfer to stage 2 (1,083) 1,083 - - - Transfer to stage 3 (137) (170,332) 170,469 - - Net re-measurement of loss allowance 19,466 (18,106) (40,644) (3,975) (43,259) Balance as at 31 December 2025 106,272 107,940 814,930 65,521 1,094,663
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 24 30 June 2025 (Unaudited) Stage 1 Stage 2 Stage 3 POCI Total Balance at 1 January 2025 74,421 308,898 685,107 69,496 1,137,922 Transfer to stage 1 4,229 (4,229) - - - Transfer to stage 2 (429) 429 - - - Transfer to stage 3 (63) (170,772) 170,835 - - Net re-measurement of loss allowance 28,221 2,565 (1,542) - 29,244 Balance as at 30 June 2025 106,379 136,891 854,400 69,496 1,167,166 13. Additional Tier 1 Sukuk The Group has issued Additional Tier 1 Capital Sukuk by way of private placement as follows: Issuance date Amount (in SAR billions) Issuance Currency Fixed / Floating Coupon rate Coupon payment frequency 31 October 2023 4 SAR Floating 3 months SAIBOR + 125 bps Quarterly 12 December 2024 3.65 SAR Fixed 6.07% Quarterly 12 December 2024 0.35 SAR Floating 3 months SAIBOR + 134 bps Quarterly 21 May 2025 2.44 USD Fixed 6.50% Semi-annually 24 July 2025 2.00 SAR Fixed 6.30% Quarterly The issuances were approved by the regulatory authorities and Board of Directors of the Group. These Sukuk are perpetual securities in respect of which there is no fixed redemption dates and represents an undivided ownership interest of the Sukukholders in the Sukuk assets. The applicable profit rate on the Sukuk is payable on each periodic distribution date, except in the event of a non-payment or non-payment election by the Group, whereby the Group may at its sole discretion (subject to certain terms and conditions) elect not to make any distributions. Such non-payment elections are not considered to be events of default. 14. Zakat and income tax The Zakat base computed in accordance with the formula specified in the Zakat Regulations is also subject to thresholds for minimum and maximum liability. In addition, SAB is subject to pay corporate income tax to reflect the portion of the shareholder base that is non-Saudi. Corporate income tax is calculated at a rate of 20%, applied to the share of taxable income of the non-Saudi shareholders. As of 30 June 2026, SAB has filed its Zakat and income tax return up to 2025. Income tax assessments from 2016 to 2018 have not been received by the Group. The assessment of Zakat and Income tax for 2019 up to 2023 are closed and settled. The assessment of 2024 are still under Zakat, Tax, and Customs Authority’s (ZATCA) review.
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 25 15. Basic and diluted earnings per share Basic and diluted earnings per share for the periods ended 30 June 2026 and 30 June 2025 are calculated by dividing the net income after Zakat and income tax (adjusted by profit paid on additional Tier 1 Sukuk), by the weighted average number of shares 2,054,794,522 (June 2025: 2,054,794,522) outstanding during the periods. For three month ended For six month ended 30 June 2026 (Unaudited) 30 June 2025 (Unaudited) 30 June 2026 (Unaudited) 30 June 2025 (Unaudited) Net income after Zakat and income tax 2,331,075 2,126,600 4,417,236 4,261,887 Additional Tier 1 Sukuk payments (235,257) (128,398) (392,705) (259,439) Net income after Zakat and income tax (adjusted by Additional Tier 1 Sukuk payments) 2,095,818 1,998,202 4,024,531 4,002,448 Weighted average number of ordinary shares* 2,054,795 2,054,795 2,054,795 2,054,795 Basic and diluted earnings per share 1.02 0.97 1.96 1.95 * The impact of treasury shares is immaterial 16. Cash and cash equivalents Cash and cash equivalents included in the interim condensed consolidated statement of cash flows comprise of the following: 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Unaudited) Cash and balances with SAMA excluding the statutory deposit (note 3) 5,492,615 6,645,956 2,166,070 Due from banks and other financial institutions with an original maturity of three month or less from date of the acquisition 8,877,103 2,881,295 2,814,629 Total 14,369,718 9,527,251 4,980,699 17. Operating segments The Group’s primary business is conducted in the Kingdom of Saudi Arabia. Transactions between the operating segments are on normal commercial terms and conditions. Segment assets and liabilities comprise operating assets and liabilities, being the majority of the balance. The Group’s reportable segments are as follows: Wealth & Personal Banking (WPB) – Wealth and Personal Banking offers a variety of wealth and consumer lending products. Having a mix of domestic and international customers, WPB aims to be the Bank of choice for wealth and internationally-minded customers. Corporate and Institutional Banking (CIB) – The Corporate and Institutional Banking provides tailored solutions to a wide range of customer segments including Global Corporates and Institutional Banking, Multinational Corporates, Large and Commercial Banking Corporates, and Small and Medium Enterprises. CIB offers a wide range of products that includes core banking, liquidity management, trade-finance and treasury services. Treasury – The Treasury business provides Corporate, Institutional, Wealth and Private banking clients with access to treasury and capital markets products across multiple asset classes, including foreign exchange, interest rate, and commodities hedging solutions. In addition, Treasury manages the liquidity and market risk of the Bank, including deployment of its commercial surplus through its investment portfolio. Capital Markets – The Capital Markets segment brings together the margin lending, brokerage, and asset management business and are managed by our wholly-owned subsidiary SAB Invest. Others – Includes activities of the Group’s investment in its associate, HSBC Saudi Arabia and equity investments. It also includes elimination of inter-group income and expense items.
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 26 Transactions between the operating segments are reported as per by the Group’s transfer pricing policy. The Group’s total assets and liabilities as at 30 June 2026 and 30 June 2025, its total operating income and expenses, and the results for the periods then ended, by operating segment, are as follows: 30 June 2026 (Unaudited) Wealth and Personal Banking Corporate and Institutional Banking Treasury Capital markets Others Total Total assets 88,424,756 244,451,785 136,270,794 2,875,571 2,451,034 474,473,940 Loans and advances, net 78,380,927 240,148,412 - 1,677,904 - 320,207,243 Investments, net - - 97,011,629 810,975 1,999,161 99,821,765 Investment in an associate - - - - 297,260 297,260 Total liabilities 94,971,289 199,482,556 98,931,644 212,907 (2,336) 393,596,060 External operating income / (expense) 1,461,274 4,884,157 758,927 185,237 (14,578) 7,275,017 Inter-segment operating income / (expense) 582,294 (884,717) 302,423 - - - Total operating income, of which: 2,043,568 3,999,440 1,061,350 185,237 (14,578) 7,275,017 Net special commission income 1,961,477 3,381,039 414,713 62,998 - 5,820,227 Net fees and commission income / (expense) (47,872) 475,693 (5,798) 109,340 - 531,363 (Provision) / reversal for expected credit losses, net (53,799) (121,603) 3,421 63 - (171,918) Total operating (expenses) / income (1,020,017) (886,428) (162,128) (141,356) (953) (2,210,882) Share in earnings of an associate - - - - 68,625 68,625 Net income for the period before Zakat and income tax 969,752 2,991,409 902,643 43,944 53,094 4,960,842 30 June 2025 (Restated) (Unaudited) Notes Wealth and Personal Banking Corporate and Institutional Banking Treasury Capital markets Others Total Total assets 80,063,975 215,008,784 133,293,803 2,794,596 2,355,987 433,517,145 Loans and advances, net 70,008,630 210,930,324 - 1,664,864 - 282,603,818 Investments, net 23 - - 106,457,057 684,168 1,835,102 108,976,327 Investment in an associate - - - - 347,808 347,808 Total liabilities 93,576,703 177,196,925 86,859,453 175,860 47,176 357,856,117 External operating income 1,449,944 5,005,965 628,301 204,932 51,928 7,341,070 Inter-segment operating income / (expense) 872,582 (1,069,705) 197,123 - - - Total operating income, of which: 2,322,526 3,936,260 825,424 204,932 51,928 7,341,070 Net special commission income 23 1,992,257 3,327,641 375,678 70,591 - 5,766,167 Net fees and commission income / (expense) 23 123,988 459,073 (4,157) 127,997 - 706,901 Provision for expected credit losses, net (136,673) (220,966) (149) (55) - (357,843) Total operating (expenses) / income (1,013,816) (862,981) (139,180) (137,145) 8,347 (2,144,775) Share in earnings of an associate - - - - 89,313 89,313 Net income for the period before Zakat and income tax 1,172,037 2,852,313 686,095 67,732 149,588 4,927,765
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 27 18. Financial risk management Credit risk The Group follows SAMA Rules on Credit Risk Management whereby the Board of Directors has ultimate responsibility for the effective management of risk and approves the risk appetite. The Board has constituted a Board Risk Committee (BRC) for ongoing monitoring, assessment and management of the risk environment and the effectiveness of the risk management framework. Day-to-day responsibility for risk management is delegated to senior managers with individual accountability for decision making. Credit risk is the risk of financial loss if a customer or counterparty fails to meet an obligation under a contract. Credit risk arises principally from direct lending, trade finance and leasing activities, but also from other products such as guarantees and derivatives. The Group continues to assess the impact of economic developments on specific customers, customer segments or portfolios. As credit conditions change, the Group takes mitigating actions, including the revision of risk appetites or limits and tenors, as appropriate. In addition, the Group continues to manage credit risk by monitoring credit exposures, limiting transactions with specific counterparties, and continually assessing the creditworthiness of counterparties. Credit approval authorities are delegated by the Board to the Managing Director together with the authority to sub-delegate them. The Credit Risk function is responsible for the key policies and processes for managing credit risk, which include formulating credit policies and risk rating frameworks, guiding the Group’s appetite for credit risk exposures, undertaking independent reviews and objective assessment of credit risk, and monitoring performance and management of portfolios. Concentrations of credit risk arise when a number of counterparties have comparable economic characteristics, or such counterparties are engaged in similar business activities, or operate in the same geographical areas or industry sectors so that their collective ability to meet contractual obligations is uniformly affected by changes in economic, political, or other conditions. The Group uses a number of controls and measures to minimize undue concentration of exposure in the portfolios. These include portfolio and counterparty limits, approval and review controls, and stress testing. Given the prevailing geopolitical situation, the Board, through its credit risk function, continued monitoring of the credit exposures through targeted customer and portfolio reviews to assess any potential implications. The assessment focused on closer tracking of limit utilization and drawdown behaviors of GCC exposures. These actions are supported by an ongoing review of downside scenarios and IFRS 9 sensitivities, with the objective of ensuring continued readiness and preserving portfolio resilience. Due to the volatile geopolitical uncertainties, the Bank has applied a judgment to maintain the previously established macroeconomic scenarios, to provide a more accurate representation of the current economic environment and associated credit risks. a. Provision for expected credit losses, net The following table shows the provision for expected credit losses for due from banks and other financial institutions, investments, loans and advances and off balance sheet exposures: Notes 30 June 2026 (Unaudited) 30 June 2025 (Unaudited) Net provision for expected credit losses: Due from banks and other financial institutions 4 (122) 154 Investments 3,648 (304) Loans and advances 6 (855,602) (829,620) Loan commitments and financial guarantees 12 (2,178) (29,244) Recoveries net of write-offs 682,336 501,171 Net charge for the period (171,918) (357,843)
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 28 b. Collateral The Group in the ordinary course of lending activities holds collaterals as security to mitigate credit risk in the loans and advances. These collaterals mostly include time, demand, and other cash deposits, financial guarantees, local and international equities, real estate and other fixed assets. The collateral is held mainly against commercial and consumer loans and are managed against relevant exposures at their net realizable values. For financial assets that are credit impaired at the reporting period, quantitative information about the collateral held as security is needed to the extent that such collateral mitigates credit risk. 19. Fair value of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or the most advantageous) market between market participants at the measurement date under current market conditions regardless of whether that price is directly observable or estimated using another valuation technique. Consequently, differences can arise between the carrying values and fair value estimates. Determination of fair value and fair value hierarchy: The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments: •Level 1: quoted prices in active markets for the same instrument (e.g, without modification or repacking); •Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; and •Level 3: valuation techniques for which any significant input is not based on observable market data. 30 June 2026 (Unaudited) Carrying value Fair value Level 1 Level 2 Level 3 Total Financial assets measured at fair value: Derivative financial instruments 2,680,250 - 2,680,250 - 2,680,250 Investments held as FVSI – Debt 727,603 - 727,603 - 727,603 Investments held as FVSI – Equity 978,353 523,813 454,540 - 978,353 Investments held as FVOCI – Debt 57,435,898 - 57,435,898 - 57,435,898 Investments held as FVOCI – Equity 1,645,402 202,420 - 1,442,982 1,645,402 Financial assets not measured at fair value: Due from banks and other financial institutions 8,873,867 - 8,873,867 - 8,873,867 Investments held at amortised cost 39,034,509 - 37,116,840 - 37,116,840 Loans and advances, net 320,207,243 - - 316,151,444 316,151,444 Financial liabilities measured at fair value: Derivative financial instruments 2,349,560 - 2,349,560 - 2,349,560 Financial liabilities not measured at fair value: Due to banks 22,292,784 - 22,292,784 - 22,292,784 Customers’ deposits 342,157,087 - 342,038,721 - 342,038,721 Debt securities in issue and term loans 11,490,121 - 11,490,121 - 11,490,121
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 29 31 December 2025 (Audited) Carrying value Fair value Level 1 Level 2 Level 3 Total Financial assets measured at fair value Derivative financial instruments 2,405,729 - 2,405,729 - 2,405,729 Investments held as FVSI – Debt 709,664 - 709,664 - 709,664 Investments held as FVSI – Equity 975,759 534,966 440,793 - 975,759 Investments held as FVOCI – Debt 63,540,042 - 63,540,042 - 63,540,042 Investments held as FVOCI – Equity 1,647,137 203,813 - 1,443,324 1,647,137 Financial assets not measured at fair value Due from banks and other financial institutions 2,878,181 - 2,878,181 - 2,878,181 Investments held at amortised cost 40,769,296 - 38,354,981 - 38,354,981 Loans and advances 298,626,505 - - 294,233,231 294,233,231 Financial liabilities measured at fair value Derivative financial instruments 2,273,572 - 2,273,572 - 2,273,572 Financial liabilities not measured at fair value Due to banks 25,700,960 - 25,700,960 - 25,700,960 Customers’ deposits 323,273,854 - 323,151,525 - 323,151,525 Debt securities in issue and term loans 7,895,554 - 7,895,554 - 7,895,554 The Group uses widely recognized valuation models for determining the fair value of common and simpler financial instruments. Observable prices or model inputs are usually available in the market for listed debt and equity securities, exchange-traded derivatives, and simple over-the-counter derivatives such as interest rate swaps. Availability of observable market prices and model inputs reduces the need for management judgment and estimation and also reduces the uncertainty associated with determining fair values. Availability of observable market prices and inputs varies depending on the products and markets and is prone to changes based on specific events and general conditions in the financial markets. The difference between the transaction price and the model value is commonly referred to as ‘day one profit or loss’. It is either amortised over the life of the transaction or deferred until the instrument’s fair value can be determined using market observable data or realized through disposal. Subsequent changes in fair value are recognized immediately in the interim condensed consolidated statement of income without reversal of deferred day one profits and losses. Valuation techniques include net present value and discounted cash flow models, and comparison with similar instruments for which market observable prices exist. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest rates, credit spreads and other premiums used in estimating discount rates, bond and equity prices and foreign currency exchange rates. Derivatives classified as Level 2 comprise Over the Counter (OTC) special commission rate swaps, currency swaps, special commission rate options, forward foreign exchange contracts, currency options and other derivative financial instruments. These derivatives are fair valued using the Group's proprietary valuation models that are based on discounted cash flow techniques. The data inputs to these models are based on observable market parameters relevant to the markets in which they are traded and are sourced from widely used market data service providers. FVOCI equity investments include investments in local listed shares carried at market price listed on the local stock exchange. FVOCI investments classified as Level 2 include bonds and sukuks for which market quotes are not available. These are fair valued using simple discounted cash flow techniques that use observable market data inputs for yield curves and credit spreads. FVOCI investments classified as Level 3 represents private equity investments and valued at their respective fair value. The movement in Level 3 financial instruments during the period relates to fair value and capital repayment movements only.
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 30 Fair values of listed investments are determined using mid marked prices. Fair values of unlisted investments are determined using valuation techniques that incorporate the prices and future earning streams of equivalent quoted securities. Loans and advances are classified as Level 3, the fair value of which is determined by discounting future cash flows using risk adjusted expected SAIBOR rates. The fair values of due from and due to banks which are carried at amortised cost, are not significantly different from the carrying values included in the interim condensed consolidated financial information, since these are short dated and the current market special commission rates for similar financial instruments are not significantly different from the contracted rates. The fair values of demand deposits are approximated by their carrying value. For deposits with longer-term maturities, fair values are estimated using discounted cash flows, applying current rates offered for deposits of similar remaining maturities. Debt securities in issue and term loans contain fixed instruments and floating rate instruments that re-price within a year (every 3 months) and accordingly, the fair value of this portfolio approximates the carrying value. The fair value of the remaining portfolio is not significantly different from its carrying value. There were no transfers between the levels of fair value hierarchies during the period. The values obtained from valuation models may be different from the transaction price of financial instruments on transaction date. Reconciliation of Level 3 fair values The following table shows reconciliation from the opening balances to the closing balances for Level 3 fair values for Investment held at FVOCI – equity. 30 June 2026 (Unaudited) 31 December 2025 (Audited) Opening balance 1,443,324 1,136,187 Net change in fair value (unrealized) (342) 307,137 Closing balance 1,442,982 1,443,324
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 31 20. Capital adequacy The Group's objectives when managing capital are to comply with the capital requirements set by SAMA to safeguard the Group's ability to continue as a going concern and to maintain a strong capital base. Capital adequacy and the use of regulatory capital are monitored regularly by management. SAMA requires holding a minimum level of regulatory capital and maintaining a ratio of total regulatory capital to the risk weighted assets at or above Basel prescribed minimum. The Group monitors the adequacy of its capital using the methodology and ratios established by SAMA. These ratios measure capital adequacy by comparing the Group’s eligible capital with its assets, commitments and contingencies, and notional amounts of derivatives at a weighted amount to reflect their relative risk. The following table summarises the Group's Pillar-1 Risk Weighted Assets, Tier 1 and Tier 2 capital and capital adequacy ratios: 30 June 2026 (Unaudited) 31 December 2025 (Audited) 30 June 2025 (Restated) (Unaudited) Risk Weighted Assets (RWA) Credit Risk RWA 385,531,215 359,687,719 341,615,984 Operational Risk RWA 16,390,131 14,221,244 14,221,244 Market Risk RWA 1,605,244 1,734,293 4,311,616 Total Pillar 1 RWA 403,526,590 375,643,256 360,148,844 Common Equity Tier 1 (CET1) Capital 57,265,927 55,732,713 54,097,773 Additional Tier I Capital (Note 13) 12,386,500 12,386,500 10,402,500 Core capital (Tier 1) 69,652,427 68,119,213 64,500,273 Supplementary capital (Tier 2) 5,926,321 5,695,047 5,931,237 Core and supplementary capital (Tier 1 and Tier 2) 75,578,748 73,814,260 70,431,510 Capital Adequacy Ratio % Common Equity Tier 1 Capital (CET1) 14.19% 14.84% 15.02% Core capital (Tier 1) 17.26% 18.13% 17.91% Core and supplementary capital (Tier 1 and Tier 2 ratios) 18.73% 19.65% 19.56% 21. Dividends During the period ended 30 June 2026, SAB paid a final dividend of SAR2,055 million (2025: SAR2,055 million) as approved by the Board of Directors, to the shareholders of the Group for the year 2025. This resulted in SAR1.00 per share for Saudi shareholders, net of Zakat (2025: SAR1.00). The income tax of the foreign shareholders was deducted from their share of the dividends. 22. Geopolitical impact on expected credit losses The Bank continues to operate under a volatile macroeconomic environment driven by sustained regional geopolitical uncertainties since March 2026. While a temporary ceasefire was reached in early April 2026 and formalized in June 2026, the situation continues to evolve and has had secondary impacts in several countries in the Middle East including the Kingdom of Saudi Arabia, causing disruption to some business and economic activities. This has brought about uncertainties in the economic environment and outlook. The Bank is closely monitoring the situation and potential implications for the financing portfolio. In considering Expected Credit Loss (ECL) estimates as at 30 June 2026, the Bank performed targeted assessments for its financing portfolio potentially exposed to supply chain disruption and higher logistics and insurance costs, incorporating both qualitative and quantitative indicators when evaluating for Significant Increase in Credit Risk (SICR). This has resulted in an overall increase in ECL in isolation of other factors. The Bank continues to closely monitor the macroeconomics variable and any possible impact on expected credit losses.
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Saudi Awwal Bank Notes to the Interim Condensed Consolidated Financial Information For the six-month period ended 30 June 2026 All amounts are in thousands of Saudi Riyals unless otherwise stated 32 The situation remains fluid, and management will continue to adopt a proactive approach towards monitoring and stress testing of its financing portfolio. 23. Comparative figures During the year ended 31 December 2025, the Bank corrected the valuation of its interest in an equity investment that is classified as investments at fair value through other comprehensive income (FVOCI) which was historically valued at net asset value instead of fair value. The impact of the change in valuation method from net asset value to fair value has resulted in an increase in carrying value of SAR918 million as of 1 January 2025. During the year ended 31 December 2025, Management has identified an equity investment held by the Bank that was not recorded in prior years. This has resulted in an understatement of investments at “fair value through statement of income (FVSI)” and the corresponding net gains. Upon identification, management classified this investment at FVSI in accordance with IFRS 9, at the amount of SAR242 million as of 1 January 2025. These adjustments are considered as a correction of errors as per IAS 8 (Accounting policies, Changes in Accounting Estimates and Errors) and are material to the interim condensed consolidated financial information and accordingly the interim condensed consolidated statement of financial position and interim condensed consolidated statement of changes in equity have been restated. The impact of these equity investments on the interim condensed consolidated statement of income and interim condensed consolidated statement of other comprehensive income for the period ended 30 June 2025 was insignificant and accordingly, comparatives have not been restated. Accordingly, the Bank has restated the impacted line items to correct the financial statement for prior period as follows: As previously presented Restatement Restated As at 30 June 2025 Interim condensed consolidated statement of financial position Investments, net 107,815,757 1,160,570 108,976,327 Interim condensed consolidated statement of financial position and interim condensed consolidated statement of changes in equity Retained earnings 15,716,745 242,086 15,958,831 Other reserves (1,239,559) 918,484 (321,075) Further, the Bank has reclassified corporate management fee previously recorded in fee and commission income to special commission income amounting to SAR80.2 million, net and SAR18.7 million, net for the six-months and three-months period ended 30 June 2025 respectively , in accordance with the requirement of IFRS 9 (Financial Instruments) in the interim condensed consolidated statement of income. Accordingly, the reclassification has been reflected in interim condensed consolidated statement of cashflows and note 17 to the Interim condensed consolidated financial information. 24. Board of Directors’ approval This interim condensed consolidated financial information was approved and authorised for issue by the Board of Directors of the Group on 6 Safar 1448H (Corresponding to 20 July 2026).