The Saudi National Bank (1180) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 reached SAR 12.2 billion, up 18% year-on-year, driven by strong balance sheet growth, robust lending, and cost discipline.

• Lending/financing grew 9% year-to-date to SAR 715 billion, led by 20% growth in wholesale; retail was flat due to HNW repayments and securitization.

• CASA deposits rose 19% year-to-date, with CASA mix nearing 76%.

• Fee income rose 23% year-on-year, now contributing 25% of operating income.

• Upgraded full-year profitability outlook, with ROTE guidance raised to 17–18.5%.

Financial highlights

• Operating income reached SAR 19.1 billion, up 7% year-on-year, supported by core revenue and non-funded income.

• Net special commission income for H1 2025 was SAR 14.3 billion, up from SAR 14.0 billion year-over-year.

• Net interest margin (NIM) declined 21 basis points year-on-year due to higher funding costs.

• Asset quality improved: NPL ratio declined to 0.81%, with cost of risk at -4 bps.

• Total assets grew 9% year-to-date to SAR 1.20 trillion, investment portfolio up 8% to over SAR 315 billion.

Outlook and guidance

• Upgraded 2025 guidance: ROTE now 17–18.5%, cost-to-income ratio below 27% (Group) and below 24% (Domestic), cost of risk 5–15 bps.

• Net special commission income growth guidance downgraded to low to mid-single digits for 2025.

• Financing growth and Tier 1 capital adequacy ratio guidance unchanged.

• Expect NIM to stabilize at Q2 levels, with potential upside from future rate cuts.

• Interim financials reviewed by independent auditors, with no material concerns raised.