Riyad Bank (1010) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 rose 20% year-over-year to SAR 2,486 million, with EPS increasing to SAR 0.79 from SAR 0.66 and comprehensive income reaching SAR 2,683 million.

• Total assets reached SAR 465.3 billion, up 15% year-over-year, with loans and advances growing 20% and customer deposits up to SAR 304.1 billion.

• Return on average equity (ROAE) improved to 16.6% from 15.5% a year earlier.

Financial highlights

• Total operating income increased 10% year-over-year to SAR 4,504 million, with net special commission income rising to SAR 3,282 million and fee and other income up 18%.

• Cost to income ratio improved to 30.6%, down 2.3ppt year-over-year.

• Cost of credit risk declined to 0.40%, a 22bps improvement year-over-year.

• NPL ratio improved to 1.14%, with NPL coverage at 133%.

• Customer deposits increased to SAR 304.1 billion from SAR 270.9 billion year-over-year.

Outlook and guidance

• Loans expected to grow at low double-digit rates for FY 2025.

• Net special commission income projected to grow at mid single digits.

• Cost to income ratio targeted below 30.5%; ROE expected above 17%.

• Cost of credit risk guided at 30–40bps; Tier 1 capital ratio to remain above 16%.

• Final dividends of SAR 2,696 million (SAR 0.90 per share) for the second half of 2024 were approved, with distribution in April 2025.