aljazira bank (1020) Q1 2026 earnings summary

Executive summary

• Net income rose 12% year-over-year and quarter-over-quarter to 405 million, driven by improved net margin, disciplined cost management, and lower cost growth despite business expansion.

• Consolidated financial results for Q1 2026 were prepared in accordance with IFRS, reviewed by independent auditors, and showed no material misstatements.

• Operations are fully Sharia-compliant, with a network of 73 branches and 24 money transfer centers in Saudi Arabia.

• Strategic initiatives advanced across retail, corporate, treasury, and technology segments, with digital transformation and AI integration accelerating.

• Strong capital position supported by a successful Tier 1 sukuk issuance of 1,464 million.

Financial highlights

• Net income reached 405 million in Q1 2026, up 12% YoY and 12% YTD.

• Total assets grew to 173.1 billion (+13% YoY), with customer deposits at 124 billion (+13% YoY, +7% YTD).

• Net financing grew 14% YoY and 3% YTD to 114.3 billion.

• Net margin improved to 2.10%, up 9 bps YoY and 9 bps YTD.

• Fee and other income contributed 29% of total revenues.

Outlook and guidance

• FY 2026 guidance targets high single-digit financing growth and net margin between 2.05% and 2.10%.

• Cost to income ratio expected to remain below 52%.

• ROAE after zakat and tax projected above 7.75%.

• Management reaffirmed commitment to full-year targets, focusing on digital transformation, operational efficiency, and sustainable growth.

• Management increased credit risk conservatism due to regional geopolitical uncertainty, but the impact on provisions was immaterial.