CEO’s Message

The Bank delivered strong financial results and enhanced its client services and operational agility. With Environmental, Social, and Governance (ESG) principles fully integrated and subsidiaries thriving, BSF is well-positioned to drive long-term value creation, supporting Saudi Vision 2030 and deepening stakeholder trust.

From Transformation to Sustainable Growth

The year 2025 was a pivotal year for BSF, marking the conclusion of our five-year transformation strategy, providing the impetus for a new phase focused on sustainable growth, operational efficiency, and integrated value creation.

The year also represents a milestone in enhanced transparency and disclosures, as we issue our first Integrated Annual Report. This aptly reflects the Bank’s holistic approach to performance, where financial results, governance, and environmental and social impact are assessed in tandem.

Completing the Five-Year Strategy

The 2021–2025 strategy was designed to modernize BSF’s technology, simplify its structure, and improve capital productivity. These priorities enabled the Bank to become more agile, client-focused, and resilient. This resulted in BSF generating X 5.4 billion in net income, up 18% year-on-year, with operating income up 9% to X 10.5 billion.

Key outcomes included the implementation of a new Core Banking System (CBS), digital transformation (e.g. Omni, ICP platforms), and enhanced governance frameworks. The Board has endorsed BSF’s 2030 Strategy, which was launched in early 2026. Whilst transformation will continue, the focus will now shift toward unlocking growth across core and adjacent areas, with value creation and sustainability as guiding principles.

Operational Momentum: From Strategy to Delivery

Operational achievements from the five-year strategy cycle which contributed directly to performance in 2025:

• The new CBS has enabled faster development, with 12 new products launched and 13 more in the pipeline.
• Home loan growth accelerated, supported by technology-driven origination.
• The year was a retail-led year, with significant growth in credit card volumes and new account openings, following the full go-live of our Omni platform.
• The Integrated Corporate Portal (ICP) was launched in August, streamlining trade finance and liquidity services for corporate clients.
• The Bank’s 2024 rebranding initiative laid the foundation for a bold, unified market identity, culminating in renewed customer engagement and a refreshed value proposition across segments.
• BSF activated its Saudi Professional League sponsorship, raising brand visibility and supporting customer acquisition, particularly in retail and affluent segments.

Strengthening Financial Resilience and Market Reach

During the year, we maintained a prudent financing strategy, supported by a strong capital base and growing investor confidence amidst tightening liquidity and rising funding costs in the Kingdom of Saudi Arabia. A focused effort to diversify funding sources yielded positive results, with significant traction in Far East markets, an untapped region that has become a key area of investor interest in BSF's debt securities. This complements the Bank’s investors from across member countries of the Gulf Cooperation Council (GCC), Europe, the UK, and the USA, positioning BSF to manage market dynamics with agility.

Subsidiary Performance: JB and BSF Capital

During the year, JB deepened its Consumer and Leasing Finance portfolio, supported by digital-first distribution. Investments in a new back-end Core Banking System is underway to replace legacy infrastructure, enhancing automation, speed, and stability.

In 2025, BSF Capital advanced its wealth management transformation, emphasizing advisory-led services, data-driven client engagement, and global partnerships, such as the collaboration with BlackRock. Key initiatives during the year included the launch of real estate funds, and hospitality and creative industry funds. BSF Capital also participated in multiple strategic Initial Public Offerings (IPOs), sustaining its leadership position in Investment Banking. These milestones strengthened client solutions, market leadership, and the Kingdom’s economic diversification efforts.

ESG Integration: A Business Imperative

As we embrace integrated reporting, ESG has become a foundational lens that is deeply embedded across governance, business strategy, and organizational culture.

During the year, ESG performance metrics were embedded into management oversight frameworks, strengthening accountability and integration across the Bank. BSF also completed a materiality refresh, elevating climate change and environmental management as a standalone material topic. Progress on the social agenda was reflected in a Saudization rate of 93% and female participation of 25%, aligned with national priorities and BSF’s ESG KPIs and targets.

ATHAR: Impact at Scale

In 2025, BSF launched the ATHAR Program to centralize and scale community investment. Focus areas of ATHAR include Education & Financial Literacy, Heritage & Culture, Health & Wellbeing, and Environmental Stewardship. ATHAR reflects our belief that real growth must be inclusive and measurable.

Positioned for Purposeful Growth

As we look forward to our 2030 Strategy, we enter the next chapter with strong capital foundations and growing investor confidence. Sustainable growth will be the core priority for BSF, strongly supporting Saudi Vision 2030. This involves aligning performance with purpose, deepening ESG integration, and strengthening stakeholder relationships to create lasting value.

I extend my sincere appreciation to our employees for their dedication, to our customers for their continued loyalty, to our shareholders for their trust, and to our regulators for their steadfast support. Your partnership remains essential to our success.

Sincerely,

Bader AlSalloom

Chief Executive Officer
BSF