Riyad Bank (1010) Q3 2024 earnings summary

Executive summary

• Net income for 9M 2024 rose 16% YoY to SAR 7,065mn, supported by robust profitability and healthy financial position.

• Total assets increased to SAR 433.4bn as of 30 September 2024, up from SAR 377.0bn a year earlier.

• Strategic initiatives in digitalization, corporate banking, and new ventures contributed to business growth and enhanced customer experience.

• Operating income for the nine-month period reached SAR 12,629.9mn, up from SAR 11,966.7mn YoY.

• Maintained strong capital adequacy and comfortable liquidity, with all KPIs within or ahead of expectations.

Financial highlights

• Net special commission income for 9M 2024 was SAR 9,440.8mn, compared to SAR 9,272.3mn YoY.

• Loans and advances grew 12% YTD to SAR 305.4bn, with customer deposits up to SAR 293.6bn.

• Fee and other income increased 18% YoY, supported by banking services, FX, and investment-related income.

• Cost to income ratio improved to 30.7% for 9M 2024, reflecting enhanced efficiency.

• Earnings per share for the nine months increased to SAR 2.28 from SAR 1.95 YoY.

Outlook and guidance

• Loan growth guidance remains in low double digits, with NSCI margin expected to decline 10–20bps.

• Cost to income ratio targeted around 31%, and cost of credit risk expected at 55–65bps.

• ROAE after Zakat expected above 16%, with healthy capitalization and efficient capital management.

• Interim dividends of SAR 2,396mn (SAR 0.80/share) declared in August 2024; final 2023 dividends of SAR 2,246mn (SAR 0.75/share) distributed in April 2024.