Banque Saudi Fransi (1050) Q1 2025 earnings summary

Executive summary

• Net income rose 16% year-over-year in Q1 2025 to SAR 1,338mn, driven by higher operating income, strong loan and deposit growth, and robust non-interest income.

• Total assets reached SAR 303.0bn, up 13% year-over-year, supported by growth in loans and investments.

• Maintained strong asset quality, capital, and liquidity positions, with improvements in NPL ratio and coverage.

• Strategic initiatives advanced, including digital app launches, technology upgrades, and transformation programs across business segments.

• CEO highlighted strong operating momentum, revenue diversification, and disciplined cost control.

Financial highlights

• Operating income increased 13% year-over-year to SAR 2,638.1mn, with net interest income up 10% and non-interest income up 26%.

• Loans and advances grew 13% year-over-year to SAR 209.0bn; customer deposits up 9% to SAR 190.7bn, led by interest-bearing deposits.

• Net interest margin declined by 12bps year-over-year to 3.08%, but improved sequentially.

• Cost-to-income ratio improved to 32.8% due to disciplined cost management.

• EPS increased to SAR 0.50, up 13% year-over-year.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: loan growth expected in the low teens, NIM targeted at 3.05%-3.15%, cost of risk at 50-60bps, and ROE of 11%-12%.

• Focus remains on technology modernization, cost optimization, fee income growth, and branch transformation.

• Saudi economic outlook remains constructive, supported by Vision 2030 and non-oil sector growth.