Riyad Bank (1010) Q2 2024 earnings summary

Executive summary

• Net income for H1 2024 rose 10% year-over-year to SAR 4,410 million, driven by strong corporate and SME loan growth, digital transformation, and product innovation.

• Total assets reached SAR 405 billion as of 30 June 2024, up from SAR 389.2 billion a year earlier.

• Strategic focus on asset growth, cross-sell, operational efficiency, and digital initiatives, with leadership in MSMEs and green project financing.

• Maintained resilient financial position and improved customer experience through digital enhancements.

• Operating income for H1 2024 was SAR 8,085 million, a slight increase from SAR 7,989 million year-over-year.

Financial highlights

• Loans and advances grew 6% year-to-date, with net loans at SAR 291.1 billion and total assets at SAR 405 billion.

• Net income for H1 2024 was SAR 4,410 million, up 10% year-over-year; ROE/ROAE after Zakat at 16.1%.

• Net special commission income for H1 2024 was SAR 6,147 million, with margin at 3.39%.

• Fee and other income increased 8% year-over-year, led by banking services and card products.

• Cost-to-income ratio improved to 31.8% for H1 2024.

Outlook and guidance

• Loan growth guidance revised to low double digits, supported by a healthy pipeline.

• Cost of risk guidance improved to 55–65 bps; CET1 ratio expected between 14%-15%.

• Net special commission income margin expected to stabilize as funding costs normalize in H2.

• Cost-to-income ratio expected to remain below 32%.

• Interim dividends of SAR 2,396 million at SAR 0.80 per share declared for August 2024.