Al Rajhi Banking and Investment (1120) Q3 2025 earnings summary

Executive summary

• Net income for the first nine months of 2025 rose to SAR 18.44 billion, up 30% year-over-year, driven by strong growth in operating and fee income, and robust strategy execution.

• Total assets surpassed SAR 1.06 trillion as of 30 September 2025, up 17.4% year-over-year, reflecting expansion in financing and investments.

• Operating income increased 23.1% year-over-year, supported by higher net yield and fee income.

• Strategic focus on digital transformation, SME, and investment banking, with notable gains in cross-selling and group harmonization.

• Customer base expanded to over 20 million, with a net promoter score of 85, reflecting high satisfaction.

Financial highlights

• Operating income for the nine months was SAR 28.7 billion, up from SAR 23.31 billion year-over-year.

• Net yield income rose 21.2% year-over-year; non-yield income increased 29.3%.

• Cost-to-income ratio improved to 22.5%, a market-leading level.

• NPL ratio remained low at 0.76%, with coverage at 151%.

• Total assets reached SAR 1.06 trillion, up 17.4% year-over-year.

Outlook and guidance

• FY 2025 guidance revised: financing growth expected in high single digits, cost-to-income ratio below 23%, ROE above 23%.

• NIM guidance revised to a range of -5 to +5 bps, reflecting liquidity premium pressures.

• Management highlights alignment with Saudi Vision 2030, especially in mortgage and SME financing.

• Interest rates expected to drop by end-2025; NIM outlook remains positive due to fixed-rate book.

• Loan book guidance unchanged, with focus on value over volume.