aljazira bank (1020) Q4 2025 earnings summary

Executive summary

• Net income rose 22% year-over-year to 1,506 million for FY 2025, with Q4 net income up 29% year-over-year to 362 million, reflecting robust growth across all business lines.

• Achieved record full-year operating income of 4,464 million, up 18%, driven by a 28% rise in fee and other income and a 14% increase in net financing and investment income.

• Maintained a well-diversified asset mix and resilient funding base, supporting continued investment in digital transformation and operational efficiency.

• Asset quality improved with NPL ratio declining to 1.03% and coverage strengthening to 186%.

• Met or exceeded FY 2025 guidance on key metrics, maintaining discipline and transparency.

Financial highlights

• Total assets grew 11% year-over-year to 165.9 billion, with net financing up 14% to 110.9 billion.

• Customer deposits increased 7% year-over-year to 115.4 billion, supported by higher time and savings deposits.

• Operating expenses rose 10% year-over-year, but cost-to-income ratio improved by 3.6 percentage points to 52.4%.

• EPS increased 23% year-over-year to 1.00; ROAE at 7.68%, ROAA at 0.96%.

• Shareholder equity grew 25% year-over-year to 21.8 billion, supported by Tier 1 Sukuk issuance.

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, efficiency improvement, and transformation aligned with Vision 2030.