The Saudi National Bank (1180) Q4 2025 earnings summary

Executive summary

• Achieved record net income of SAR 25 billion in 2025, up 18% year-over-year, exceeding guidance and driven by disciplined strategy execution, operational excellence, higher core revenue, and strong fee and other income growth.

• Strategic focus on sustainable value creation, customer-centricity, efficiency, innovation, and talent development drove performance.

• Structural improvements and new strategy cycle led to faster turnaround times, higher client satisfaction, robust credit quality, and record staff engagement.

• Financing grew 11% YoY, with strong contributions from wholesale and mortgage segments.

• Cost-to-income ratios reached record lows: group CIR at 23.1% and domestic CIR at 20.3%.

Financial highlights

• Total assets expanded 10% YoY to 1,210bn SAR, supported by 10% growth in domestic customer deposits.

• CASA deposits increased 11% YoY, with the CASA ratio at 73%.

• Net special commission income rose 5% YoY; fees and other income up 21%.

• Operating expenses reduced by 11% YoY, aided by cost optimization and a one-off provision reversal.

• Tier 1 capital adequacy ratio stood at 19.8%, with total CAR at 21.2%.

Outlook and guidance

• Targeting high single-digit financing growth and mid-single-digit NSCI growth in 2026.

• Group CIR expected below 25%, domestic CIR below 22.5%, aiming for further improvement to below 24% group-wide and below 20% domestically by 2027.

• Cost of risk expected to be modestly higher in 2026 and 2027, with upgraded risk range for 2027 between 20-30 bps.

• Return on tangible equity expected to remain between 16%-17% in 2026, with adjusted ROTE at 17–18% and re-expansion into 2027.

• Macro outlook anticipates 4.7% real GDP growth and 4% non-oil GDP growth for 2026.