aljazira bank (1020) Q3 2025 earnings summary

Executive summary

• Net income grew 20% year-over-year to 1,143 million SAR for the first nine months of 2025, with Q3 net income up 5% sequentially to 400 million SAR.

• Operating income rose 17% year-over-year, driven by higher net financing and investment income and increased fee and other income.

• Assets and customer deposits increased 12% YoY, reflecting strong customer trust and franchise strength.

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

• Consolidated financial statements for the nine months ended 30 September 2025 were prepared in accordance with IFRS and reviewed by independent auditors, with no material misstatements found.

Financial highlights

• Net income for the nine months reached 1,143 million SAR, up 20% year-over-year; Q3 net income was 400 million SAR, up 20% year-over-year and 5% quarter-over-quarter.

• Total operating income for the nine months was 3,279 million SAR, up 17% year-over-year.

• Net financing and investment income increased 17% year-over-year; fee and other income rose 15%.

• Operating expenses increased 11% YoY, mainly due to higher G&A and staff costs; impairments up 39% YoY, driven by commercial exposures.

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

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.

• Saudi economic outlook remains positive, with real GDP expected to grow 4.0% in 2025 and 2026.