Saudi Awwal Bank (1060) Q4 2025 earnings summary

Executive summary

• Achieved 15% year-over-year gross loan growth and 5% revenue growth in 2025, outpacing the market and maintaining strong asset quality.

• Maintained leading market positions in corporate, trade, and mortgage origination, with trade market share at 24% and mortgage origination at 13%.

• Delivered robust digital transformation, with over 90% of accounts opened digitally and a 4.7 App Store rating.

• Continued to support Vision 2030 giga-programmes and international flows into Saudi Arabia.

Financial highlights

• Net income for 2025 reached SAR 8.5bn, up 5% year-over-year; total revenue was SAR 14.7bn, also up 5%.

• Return on tangible equity (ROTE) was 14.5% after AT1 coupon, impacted by a SAR 1.2bn equity restatement.

• Cost efficiency ratio improved to 30.3%, with operating expenses up 4% year-over-year.

• Cost of risk remained low at 24bps for the year, with NPL ratio at 1.3%.

• CET1 capital ratio stood at 14.8%, and customer deposits grew 21% year-over-year to SAR 323.3bn.

Outlook and guidance

• 2026 guidance targets loan growth above 10%, NIM of 2.5–2.6%, cost efficiency ratio below 29.5%, and ROTE of 14–15%.

• Annual OPI growth expected at 6–10%, with cost of risk to remain between 25–35bps.

• Focus remains on further market share gains, digital leadership, and ESG initiatives.