The Saudi Investment Bank (1030) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in FY 2024 with net income up 11% YoY to SAR 1,957mn, driven by robust business performance and lower risk costs.

• Loans grew 23% YoY to SAR 99.5bn, with corporate lending as the main driver.

• Customer deposits increased 13% YoY to SAR 94.0bn, mainly from interest-bearing deposits.

• ROE improved by 53 bps YoY to 13.1%, reflecting higher profitability.

Financial highlights

• Net income rose 11% YoY to SAR 1,957mn; operating income up 5% and impairment charges down 19%.

• Loans and advances up 23% YoY, driven by 25% growth in corporate lending and 18% in private banking.

• Deposits up 13% YoY, with corporate deposits up 41% and retail up 17%.

• Net interest margin (NIM) contracted 30 bps YoY to 2.68% due to higher cost of funds and deposit mix shift.

• Cost to income ratio (CIR) improved to 41.5%, down 26 bps YoY.

• NPL ratio decreased 46 bps YoY to 1.04%; NPL coverage ratio at 156.7%.

• Tier 1 ratio at 19.1%, down 0.3 ppt YoY; total regulatory capital up 18%.

Outlook and guidance

• 2025 guidance targets >15% loan growth, NIM of 2.45%-2.55%, CIR <41.5%, ROE >13.25%, and Tier 1 ratio >18.75%.

• Focus on cost control, income growth, and maintaining stable credit quality.