Riyad Bank (1010) Q4 2024 earnings summary

Executive summary

• Achieved record performance in 2024, with net income up 16% year-over-year and loan growth of 17%, driven by strong Corporate and SME segments and robust asset quality.

• Strategic focus on accelerating asset growth, cross-sell activities, operational efficiency, and digital transformation, including a next-gen mobile app and SME digital platform.

• Completed full migration to a new digital app, launched a comprehensive sustainability strategy, and enhanced brand equity.

• Introduced a new Wholesale Banking structure to enhance synergies between Corporate and Treasury and drive integrated product offerings.

• Maintained a healthy and resilient financial position, with a 0.98% NPL ratio, 167% NPL coverage, and strong capitalization (CAR 18.9%).

Financial highlights

• Net income reached SAR 9,322 million, up 16% year-over-year, driven by 4% growth in net special commission income and 27% increase in fee and other income.

• Loans and advances grew 17% year-over-year to SAR 325.4 billion; customer deposits rose 20% to SAR 306.4 billion.

• Cost-to-income ratio improved to 30.6% (down 70 bps year-over-year), reflecting ongoing efficiency gains.

• NPL ratio improved to 0.98% (down from 1.24%); NPL coverage at 167%.

• Total assets increased 16% year-over-year to SAR 450.4 billion; capital adequacy ratio at 18.9%, CET1 at 14.1%.

Outlook and guidance

• Targeting low double-digit loan growth, mid-single digit net special commission income growth, and cost-to-income ratio below 30.5% for 2025.

• ROE guidance above 17% for 2025; cost of risk expected to normalize to 30–40 bps.

• Continued strong credit demand anticipated from corporate and SME segments, with retail asset growth led by mortgages.

• Funding and liquidity challenges anticipated to persist into 2025-2026.