Al Rajhi Banking and Investment (1120) Q2 2025 earnings summary

Executive summary

• Net income after zakat for 1H 2025 rose 32.5% year-over-year to SAR 12.1 billion, driven by strong growth in both yield and non-yield income streams.

• Total assets surpassed SAR 1.04 trillion as of June 30, 2025, up 19.8% year-over-year, reflecting robust expansion in financing and investments.

• Maintained industry-leading market share in retail banking, personal loans, mortgages, and digital banking in Saudi Arabia.

• Strategic initiatives included digital transformation, ESG progress, and expanding customer base, with a 95:5 digital to manual ratio and 34% female workforce.

• Independent auditors found no material misstatements in the interim financials.

Financial highlights

• Operating income for 1H 2025 reached SAR 18.8 billion, up 26.5% year-over-year, with non-yield income up 30.9%.

• Net financing and investment income for six months was SAR 14.4 billion, up from SAR 11.5 billion year-over-year.

• Net financing portfolio increased 19.3% year-over-year, driven by corporate and mortgage segments.

• Cost-to-income ratio improved to 22.5% in 1H 2025 from 25.9% in 1H 2024.

• Earnings per share for the period was SAR 2.86.

Outlook and guidance

• Positive economic outlook for Saudi Arabia, with GDP expected to grow 3.5% in 2025 and 3.9% in 2026.

• Continued focus on digitalization, ESG, and expanding into new business segments, aligned with Saudi Vision 2030.

• Targeting further growth in SME, investment banking, and corporate banking market share.

• Management expects continued growth in retail and corporate financing, supported by robust asset quality.