aljazira bank (1020) Q3 2025 earnings summary

Executive summary

• Net income for 9M 2025 rose 20% YoY to SAR 1,143 million, with operating income up 17% and broad-based growth across segments, supported by healthy margins and improved revenue mix.

• Total assets increased 12% YoY to SAR 163.4 billion as of 30 September 2025, with customer deposits up 12% and equity reaching SAR 21.6 billion.

• Transformation agenda advanced with digital-led efficiencies, enhanced customer experience, and long-term value creation.

• Issued SAR 2.875 billion in new Tier 1 Sukuk and completed a bonus share issue, increasing share capital to SAR 12.8 billion.

• Digital innovation included new product launches, Open Banking, and Google Pay integration.

Financial highlights

• Operating income for 9M 2025 rose to SAR 3,279 million, with net financing and investment income up 17% YoY to SAR 2,227 million.

• Customer deposits grew to SAR 115.3 billion, and total equity increased 23% YoY, aided by Tier 1 Sukuk issuances and retained earnings.

• Cost-to-income ratio improved to 52.7% for 9M 2025, down from 56.0% in FY 2024.

• EPS for 9M 2025 was SAR 0.79, up 19% YoY; ROAE at 7.81% and ROAA at 0.97%.

• Net financing reached SAR 107.8 billion, up 16% YoY, with commercial financing up 18% and consumer financing up 13%.

Outlook and guidance

• FY 2025 financing growth guidance remains in the low teens, with net margin guidance unchanged despite margin pressure.

• Cost of risk guidance upgraded to 0.30-0.35% on continued benign risk environment.

• Cost-to-income ratio expected to remain below 55%, and Tier 1 ratio targeted above 16%.

• ROAE guidance revised down to above 7.5% due to recent T1 Sukuk issuance.

• Management is assessing the impact of new IFRS standards, including IFRS 18 and IFRS 19.