Riyad Bank (1010) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 and 1H 2025 results, with all key performance indicators ahead of or within target, and total assets up 9% year-to-date to SAR 491 billion.

• Net income for the six months ended 30 June 2025 rose 15% year-over-year to SAR 5.08 billion, with operating income up 12% to SAR 9.02 billion.

• Strategic initiatives in cross-selling, credit card expansion, and environmental financing contributed to business growth.

• Maintained a healthy and resilient financial position, with strong capitalization and comfortable liquidity.

• Strategic priorities include profitability, efficiency, customer choice, and digital innovation, with a new five-year plan in development.

Financial highlights

• Total assets reached SAR 491 billion (+9% YTD), net loans SAR 355 billion (+11% YTD), and customer deposits SAR 418 billion (+3.4% YTD).

• Operating income rose 12% year-on-year to SAR 9.02 billion; net income increased 15% to SAR 5.08 billion.

• Cost-to-income ratio improved to 30%, down 180 basis points year-on-year.

• Return on equity rose 90 basis points to 17%.

• NPL ratio decreased to 1.13% with NPL coverage at 135.4%.

Outlook and guidance

• Upgraded loan growth guidance to mid-teens, reflecting strong credit demand from corporate and SME segments.

• ROE expected above 17% and cost-to-income ratio targeted below 30.5%.

• Net special commission income expected to grow at a mid-single digit rate for the year.

• Cost of risk expected to normalize between 30–40 basis points; capital position remains strong.

• Interim dividends of SAR 2,543 million at SAR 0.85 per share declared in July 2025.