aljazira bank (1020) Q4 2024 earnings summary

Executive summary

• Net income for FY 2024 rose 21% YoY to SAR 1,231 million, supported by top-line expansion and improved efficiency; 4Q 2024 net income was stable YoY at SAR 280 million but down 16% sequentially due to non-recurring items.

• Achieved strong asset growth of 15% YoY, driven by a 20% increase in net financing and 15% growth in customer deposits.

• Strategic transformation initiatives advanced, including digitalization, new retail mobile app, CRM system, and expanded B2B offerings.

Financial highlights

• Total assets reached SAR 148.9bn (+15% YoY), with financing at SAR 96.9bn (+20% YoY).

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

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

• Cost-to-income ratio improved to 56.0% from 58.2% YoY.

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

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 to 3.3% in 2025, with non-oil GDP projected at 4.4%.