Banque Saudi Fransi (1050) Q1 2025 earnings summary

Executive summary

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

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

• Strategic execution advanced across wholesale, personal, private, and capital banking, with significant milestones in technology modernization and digital transformation.

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

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

Financial highlights

• Operating income rose 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; consumer loans up 16%, commercial loans up 12%.

• Customer deposits increased 9% year-over-year to SAR 190.7bn, led by a 15% rise in interest-bearing deposits.

• Net interest margin declined by 12bps year-over-year to 3.08%, but improved sequentially by 6bps.

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

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%.

• CET1 ratio remains well above 15%, supporting resilience and flexibility.

• Continued focus on technology, cost optimization, fee income growth, and branch transformation.

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

• Dividend of SAR 0.50 per share proposed for 2024, pending approval.