Riyad Bank (1010) Q4 2025 earnings summary

Executive summary

• Net income rose 12% year-over-year to SAR 10.4 billion in 2025, with ROE increasing to 16.9% and return on assets at 2.14%.

• Total assets grew 15% year-over-year to SAR 519 billion, driven by a 17% rise in the loan book to SAR 373 billion.

• Board recommended a SAR 10 billion capital increase via bonus shares to strengthen core capital.

• Launched Strategy 2030, focusing on digital transformation, AI integration, sustainability, and customer-centric growth.

• Strategic focus on operational efficiency and digital innovation drove sustainable profitability.

Financial highlights

• Operating income increased 6% year-over-year to SAR 18.4 billion, supported by a 20% jump in fee and other income.

• Cost-to-income ratio improved to 29.6%, down 1 percentage point year-over-year, marking record efficiency.

• Customer deposits rose 8% year-over-year to SAR 332 billion; total liabilities up 16% to SAR 444 billion.

• Investments portfolio grew 13%, funded by customer deposits and debt securities.

• NPL ratio declined to 0.79% with coverage at 150%.

Outlook and guidance

• 2026 guidance targets high single-digit growth in loans and net special commission income, with cost-to-income ratio below 30% and ROE above 16%.

• Credit risk expected at 30-40 basis points, Tier 1 capital to stay above 15%.

• Strategy 2030 aspires to high-teens ROE by 2030, driven by digital, customer, and sustainability initiatives.