The Saudi Investment Bank (1030) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 reached SAR 503.3 million, up 14% YoY, driven by strong business performance and lower risk costs.

• Loans grew 5% YTD to SAR 104.1 billion, with deposits up 8% YTD to SAR 101.7 billion, reflecting robust balance sheet expansion.

• Maintained high credit quality with NPL ratio at 0.99% and NPL coverage at 161.9%.

• Cost discipline sustained, with cost-to-income ratio improving to 41.2%.

• Strategy 2027 progressing, with multiple transformation initiatives completed across business lines and support functions.

Financial highlights

• Total assets grew to SAR 163.8 billion as of March 31, 2025, up from SAR 136.4 billion a year earlier.

• Net income rose 14% YoY to SAR 503 million; operating income up 6% YoY; impairment charges down 25%.

• Loans and advances, net, increased to SAR 104.1 billion from SAR 84.6 billion year-over-year.

• Customers' deposits rose to SAR 101.7 billion, up from SAR 88.4 billion in Q1 2024.

• Basic and diluted EPS was SAR 0.39, compared to SAR 0.34 in Q1 2024.

Outlook and guidance

• FY 2025 guidance unchanged: loan growth >15%, NIM 2.45%-2.55%, CIR <41.5%, ROE >13.25%, COR 0.30%-0.35%, Tier 1 ratio >18.75%.

• The bank maintains a strong capital base, with a CET1 ratio of 13.72% and total capital adequacy ratio of 19.03% as of March 31, 2025.

• 1Q 2025 results in line with expectations and guidance.