Saudi Awwal Bank (1060) Q3 2025 earnings summary

Executive summary

• Net income for the nine months ended 30 September 2025 rose 8% year-over-year to SAR 6.41 billion, driven by higher operating income and lower impairments, with revenue up 5% to SAR 11.0 billion.

• Total assets increased to SAR 445.4 billion, and gross loans grew 16% YoY and 13% YTD to SAR 299.7 billion, outpacing sector averages.

• Strategy remains on track, with strong positioning in Vision 2030 giga-programmes and market leadership in off-balance sheet trade assets (25% share).

• Maintained robust asset quality (NPL ratio 1.4%), low cost of risk (21bps YTD), and healthy capital/liquidity metrics.

• The interim financial information received an unqualified review from independent auditors.

Financial highlights

• Net income after zakat and tax for 9M25 was SAR 6.41 billion, up from SAR 5.94 billion in 9M24; total operating income SAR 11.0 billion, up 5%.

• Gross loans grew 13% YTD and 16% YoY to SAR 299.7 billion; customer deposits up 18% YTD and 14% YoY to SAR 315.1 billion.

• Return on tangible equity (ROTE) at 15.1% post-AT1 coupon, in line with medium-term targets.

• Cost efficiency ratio improved to 29.8% YTD, ahead of guidance and lower than 2024.

• Non-funds income YTD at SAR 2.4 billion, with fee income of SAR 1.2 billion from trade, capital markets, and loan origination.

Outlook and guidance

• On track to deliver medium-term targets: ROTE 15-16%, cost efficiency ratio below 30.5%, and loan growth in mid-teens.

• Modeling three rate cuts, with NIMs expected to be resilient in 4Q25 due to temporary cost-of-funds benefit.

• Annualized cost-of-risk for 9M25 was 21bps, below full-year guidance, indicating continued resilience in asset quality.

• The bank continues to monitor economic developments and adjust risk appetites and credit policies as needed.

• New accounting standards effective from 2025 had no significant impact; further standards are being assessed for future periods.