aljazira bank (1020) Q4 2024 earnings summary

Executive summary

• Net income rose 21% YoY to SAR 1,231 million for FY 2024, driven by strong growth in operating income, financing activities, and improved efficiency.

• Total assets increased 15% YoY to SAR 148.9 billion, with financing up 20% and customer deposits up 15%.

• Strategic transformation initiatives advanced, focusing on digitalization, innovation, and customer-centric offerings across corporate and retail segments.

• Operational efficiency improved, with cost-to-income ratio down to 56.0%.

Financial highlights

• Operating income grew 13% YoY to SAR 3,779 million; fee and other income up 19% YoY.

• Net financing and investment income up 11% YoY.

• Customer deposits reached SAR 108.2bn (+15% YoY), with CASA share rising to 44.4%.

• EPS for FY 2024 was SAR 1.01, up 17% YoY.

• Net income for Q4 2024 was SAR 280 million, stable YoY but down 16% sequentially due to one-off losses and expenses.

Outlook and guidance

• Double-digit asset growth expected in 2025, with financing growth in the lower teens.

• Net margin targeted to expand by 5-10bps; cost-to-income ratio to fall below 55%.

• Cost of risk expected at 0.35-0.40%; Tier 1 ratio targeted above 16%.

• ROAE after zakat and tax targeted above 8%.

• Saudi GDP growth expected to accelerate from 1.4% in 2024 to 3.3% in 2025, with non-oil GDP rising to 4.4%.