aljazira bank (1020) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 rose 20% year-over-year to SAR 361 million, driven by strong asset growth, margin expansion, and improved fee income.

• Total assets reached SAR 153.2 billion, up 13% YoY, with financing portfolio up 20% YoY.

• Strategic focus on segment growth, product expansion, digital transformation, and enhanced customer experience, including new digital platforms and product launches.

• ESG initiatives advanced, including significant green financing, resource optimization, and recognition for governance and workplace excellence.

• Total comprehensive income for the period was SAR 750 million, a significant increase from SAR 22 million in Q1 2024.

Financial highlights

• Operating income for Q1 2025 was SAR 1.08 billion, up 21% YoY, with net financing and investment income up 22% YoY to SAR 754 million.

• EPS for Q1 2025 was SAR 0.28, up 20% YoY.

• Cost-to-income ratio improved to 52.4% from 56.0% in FY 2024, as operating income outpaced expense growth.

• Customers' deposits reached SAR 109.6 billion, up 13% YoY.

• Net financing portfolio expanded to SAR 100.6 billion, up from SAR 84.1 billion a year earlier.

Outlook and guidance

• 2025 guidance unchanged: targeting lower teens financing growth, NIM expansion of 5-10bps, cost-to-income below 55%, cost of risk 0.35-0.40%, and ROAE above 8%.

• The bank continues to focus on expanding Shari'ah-compliant products and digital transformation, with strong regulatory capital ratios supporting future growth.

• Saudi GDP expected to grow 3.0% in 2025 and 3.7% in 2026, with non-oil GDP expanding 3.1% in 2025.