The Saudi Investment Bank (1030) Q2 2025 earnings summary

Executive summary

• Achieved 9% year-to-date loan growth and 7% deposit growth, with net income up 9% year-over-year to SAR 1,016 million for 1H 2025, driven by top-line growth and lower risk cost.

• Interim condensed consolidated financial statements for the six months ended June 30, 2025, were reviewed by independent auditors, with no material misstatements identified under IAS 34 as endorsed in Saudi Arabia.

• The Group operates 50 branches in Saudi Arabia, offering a full range of commercial, retail, and Shariah-compliant banking services.

• Strategy 2027 initiatives are ahead of plan, with significant digital and operational enhancements across core segments.

Financial highlights

• Loans reached SAR 108.4 billion (+9% YTD), deposits at SAR 100.2 billion (+7% YTD), and investments grew 6% to SAR 43.1 billion.

• Net income for the six months ended June 30, 2025, was SAR 1,015.8 million, up from SAR 928.8 million year-over-year.

• Operating income for the six-month period was SAR 2,120.2 million, up from SAR 2,017.7 million year-over-year.

• Net interest margin contracted by 39 bps YoY to 2.40% due to lower asset yields and deposit mix shift.

• Cost to income ratio improved to 41.0% (down 1.1 ppt YoY) as operating income outpaced expenses.

Outlook and guidance

• FY 2025 guidance revised: NIM now 2.30%-2.40% (down from 2.45%-2.55%), CIR <41.0% (down from <41.5%), Tier 1 ratio >18.0% (down from >18.75%), ROE guidance unchanged at >13.25%.

• Loan growth guidance remains >15%, cost of risk at 0.30%-0.35%.

• The Board approved an interim cash dividend of SAR 499 million (SAR 0.40 per share) for the second half of 2024, paid during the reporting period.