aljazira bank (1020) Q4 2025 earnings summary

Executive summary

• Net income rose 22% year-over-year to 1,506 million, driven by broad-based business growth and improved revenue mix.

• Operating income increased 18% to 4,464 million, with fee and other income up 28% and financing/investment income up 14%.

• Operating expenses grew 10%, but at a slower pace than income, improving cost-to-income ratio by 3.6 points to 52.4%.

• Asset base expanded 11% to 165.9 billion, supported by 14% growth in net financing and 7% rise in customer deposits.

• Capital base strengthened by 25% through Tier 1 sukuk issuances.

Financial highlights

• Net income for FY 2025 rose 22% year-over-year to 1,506 million; operating income up 18%.

• Fee and other income represented 33% of total operating income and grew 28% year-over-year.

• Customer deposits reached 115.4 billion, up 7% year-over-year.

• Net financing grew to 110.9 billion, up 14% year-over-year.

• Non-performing loan ratio improved to 1.03%, coverage ratio at 186%.

Outlook and guidance

• Targeting high single-digit financing growth for 2026, with further cost optimization to achieve cost-to-income below 52%.

• Net margin guidance for 2026 set at 2.05–2.10%, reflecting easing competition for liquidity.

• Cost of risk expected at 35–40 bps; Tier 1 ratio to remain above 17%.

• Continued focus on profitable growth, digital transformation, and alignment with Vision 2030.