Saudi National Bank (1180.SE): Key Takeaways from 3Q26 Results Call

Citi hosted SNB's 3Q26 earnings call with senior management. Management said the 3Q26 NIM compression to 2.93% from 3.02% in 2Q26 was expected, reflecting a deliberate shift towards balancing volume and value growth and higher funding costs as liabilities reprice faster than assets; some near-term pressure is likely, but asset and lending repricing should help restore margins towards current levels by 1H27, with NIM sensitivity around minus 2 to minus 3bps per 25bp hike. The roughly SAR3bn OCI loss was attributed to the September spike in global yields, and active duration management, balance-sheet hedges and tactical economic hedges meant the drawdown was materially lower than in the 2022 hiking cycle, with a meaningful recovery after the subsequent bond rally. Cost discipline remains a focus with scope to beat FY26 cost/income guidance, and sequential OpEx fell for a second consecutive quarter. The only guidance change was CoR, upgraded to 5-15bps from 10-20bps, while financing growt