aljazira bank (1020) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months of 2024 was SAR 951 million, up 28% year-over-year, with Q3 net income at SAR 333 million, reflecting robust business momentum and improved efficiency.

• Total assets reached SAR 145.2 billion as of 30 September 2024, up 12% year-over-year, with net financing portfolio at SAR 92.7 billion (+15% YTD).

• Strategic transformation and digitalization initiatives, including new digital platforms and product innovation, supported growth across all segments.

• Share capital increased to SAR 10.25 billion following a bonus share issue in Q2 2024.

• Maintained a CASA deposit share above 40%, supporting stable funding.

Financial highlights

• Net income for 9M 2024 was SAR 951 million, up 28% YoY; quarterly net income reached SAR 333 million.

• Operating income grew 15% YoY to SAR 2,812 million, with net financing & investment income up 10% and fee & other income up 28%, including a SAR 60 million one-off gain.

• Operating expenses increased 9% YoY, mainly from higher salaries, G&A, and digital transformation investments.

• Cost-to-income ratio improved to 55.4% for 9M 2024, down from 58.2% in FY 2023.

• Customer deposits stood at SAR 103.3 billion, up 10% YoY, led by savings and time deposits.

Outlook and guidance

• Guidance for FY 2024 remains unchanged: mid-teens financing growth, net margin maintained, cost of risk at 0.30–0.35%, cost-to-income below 56%, Tier 1 ratio 16.0–16.5%.

• Expecting NIM expansion towards year-end, supported by anticipated rate cuts and solid retained earnings.

• Management is monitoring regulatory changes, including the new Companies Law and Basel IV, with compliance expected within two years.

• Continued focus on digital innovation and customer-centric solutions positions the bank for sustainable growth.