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 core revenue, and cost discipline.

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

• CASA deposits grew 19% year-to-date, reaching SAR 81 billion and improving the CASA mix to nearly 76%.

• Asset quality improved with NPL ratio down to 0.81% and impairment coverage at 147%.

• Strategic initiatives in digital, operational efficiency, and talent development are progressing ahead of plan.

Financial highlights

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

• Fee and other income up 23% in H1 and 30% in Q2 year-on-year, now representing 25% of operating income.

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

• Cost-to-income ratio improved to 26.6% group-wide and 23.6% domestically.

• Total assets expanded 9% year-to-date to SAR 1.20 trillion.

Outlook and guidance

• Upgraded guidance for cost-to-income, cost of risk, and return on tangible equity, with ROTE now 16–17% and adjusted ROTE 17.5–18.5%.

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

• Full-year financing growth and Tier 1 CAR guidance remain unchanged at low double digits and 19%-20%, respectively.

• Cost of risk expected to normalize to 5-15 bps in 2025 and 20-30 bps over the medium term.

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