Riyad Bank (1010) Q4 2024 earnings summary

Executive summary

• Achieved record performance in 2024, with net income up 16% to SAR 9.32 billion, driven by strong growth in Corporate and SME segments and robust asset quality.

• Loans and advances grew 17% year-over-year, with total assets up 16% to SAR 450.4 billion and customer deposits rising 20% to SAR 306.4 billion.

• Maintained a healthy financial position with a 0.98% NPL ratio, 167% NPL coverage, and total capital adequacy ratio of 18.9%.

• Advanced digital transformation, including full migration to a new app and launch of a comprehensive sustainability strategy.

• Strategic focus on asset growth, cross-sell, operational efficiency, and brand equity enhancement.

Financial highlights

• Net income reached SAR 9.32 billion, up 16% year-over-year, with fee and other income up 27% and net special commission income up 4%.

• Loans and advances grew to SAR 325.4 billion, with SME loans under "Kafala" up 29%.

• Cost-to-income ratio improved to 30.6%, a 70 bps year-over-year improvement.

• NPL ratio decreased to 0.98%, with cost of credit risk at 0.53%.

• Total assets increased to SAR 450.4 billion, and customer deposits to SAR 306.4 billion.

Outlook and guidance

• FY 2025 guidance targets low double-digit loan growth, mid single-digit net special commission income growth, and ROE above 17%.

• Cost-to-income ratio targeted below 30.5%, with an internal aim for 29%.

• Cost of risk expected to moderate to 30–40 bps, and Tier 1 capital ratio to remain above 16%.

• Continued strong credit demand anticipated from corporate and SME segments, with retail growth led by mortgages.