The Saudi National Bank (1180) Q1 2025 earnings summary

Executive summary

• Achieved net income of SAR 6.022 billion in Q1 2025, up 19% year-over-year, driven by strong lending growth, fee income, and improved operating efficiency.

• Total assets reached SAR 1.171 trillion, growing 6% year-to-date and 9% year-over-year, supported by robust loan origination and diversified balance sheet.

• Financing portfolio grew 8% year-to-date and 13% year-over-year, surpassing SAR 700 billion, with a strategic focus on Vision 2030 sectors and digital innovation.

• CASA deposits increased by SAR 48 billion, with a CASA ratio of 74.5%.

• Maintained leadership in assets, net income, investment, and SME exposure.

Financial highlights

• Net special commission income rose to SAR 7.3 billion, up 5% year-over-year.

• Fee and other income grew 16% year-over-year, driven by trade finance, FX, and investment income.

• Cost-to-income ratio improved by 125 basis points year-over-year to 23.3% domestically and 26.2% overall.

• Operating expenses rose 3% year-over-year, but OpEx declined 1% sequentially; cost savings achieved through contract negotiations.

• Cost of risk dropped to 2 basis points, with NPL ratio improving to 0.91%.

Outlook and guidance

• On track or exceeding medium-term and full-year 2025 strategic targets; guidance to be revisited mid-year.

• Confident in Saudi economic resilience despite global volatility and potential lower oil prices.

• Return on tangible equity expected to moderate in coming quarters due to capital retention; ROTE guidance of 16–16.5%.

• Cost to income ratio expected to remain below 28% (domestic below 25.5%).

• Cost of risk guidance unchanged at 10–20bps.