The Saudi Investment Bank (1030) Q4 2025 earnings summary

Executive summary

• Achieved strong growth in FY 2025 with net income up 24% YoY to SAR 2,431 million, driven by top-line growth, a one-off land sale gain, and lower operating expenses.

• Loans grew 13% YoY, deposits rose 17% YoY, and ROE increased by 202 bps to 14.8%.

• Maintained high credit quality with NPL ratio at 0.95% and cost of risk at 0.33%.

• Recognized for innovation, digital transformation, and sustainability, with multiple awards and new product launches.

Financial highlights

• Net income reached SAR 2,431 million (+24% YoY), supported by a SAR 535 million one-off land sale gain.

• Operating income grew 15% YoY; operating expenses decreased 1% YoY.

• Net interest margin contracted by 41 bps YoY to 2.26% due to lower asset yields and deposit mix shift.

• Fee and other income surged 97% YoY, excluding one-off gain up 14% YoY.

• Cost to income ratio improved to 40.5% (underlying), reported at 35.9% due to the land sale gain.

Outlook and guidance

• 2026 guidance targets mid to high single-digit loan growth, NIM of 2.10%-2.25%, CIR below 40.5%, and ROE above 12.75%.

• Focus on disciplined, profitability-driven growth in corporate and private banking.

• Continued emphasis on cost control, selective lending, and stable credit quality.