Banque Saudi Fransi (1050) Q4 2025 earnings summary

Executive summary

• Net income grew 18% year-over-year to SAR 5.35 billion, driven by higher operating income, positive jaws, and improved cost of risk.

• Operating income rose 9% year-over-year, with net interest income up 10% and non-interest income up 4%.

• Loans and customer deposits both grew 5% year-on-year, with consumer loans up 18% and commercial loans up 2%.

• Completed the 2021-2025 strategy cycle and will announce a new 2030 strategy, aiming for sustainable profitability and operational excellence.

• Asset quality remained strong, with a modest 4bps increase in NPL ratio to 0.97% and robust coverage.

Financial highlights

• Net income increased 18% year-on-year; operating income up 9% year-on-year.

• Net interest margin remained stable year-on-year at 3.04%.

• Cost-to-income ratio improved by 152bps to 33.8% for FY 2025.

• Cost of risk reduced by 13bps to 0.45% year-over-year.

• Return on equity increased by 39bps to 10.7% year-over-year.

Outlook and guidance

• 2026 guidance targets high single-digit loan growth, NIM around 3.00%, cost-to-income ratio below 33%, and cost of risk between 45-55bps.

• ROE (shareholder's equity) expected at 12-13%, with capital ratios to remain stable above 15%.

• Profitability to be supported by volume growth, margin resilience, and efficiency improvements.

• The bank will announce its new 2030 strategy in February 2026, aiming for sustainable profitability and operational excellence.

• Favorable economic prospects in Saudi Arabia, supported by Vision 2030 and non-oil sector expansion.