Bader AlSalloom: BSF Reports SAR 2,741 Million Net Profit in First Half of 2025, Up 20% YOY, Underscoring Sustainable Growth Trajectory

21/Jul/2025

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Financial Highlights:

Total assets SAR 301.5bn, up 4% Year-on-Year, driven by increased lending and investments
Loans and advances up 6% Year-on-Year to SAR 209.9bn from both Corporate and Retail
Customers’ deposits SAR 182.7bn, down 7% Year-on-Year due to decline in interest-bearing deposits
Net income for 1H 2025 SAR 2,741mn, up 20% Year-on-Year on higher operating income partly offset by rising expenses
Operating income SAR 5,317mn in 1H 2025, up 14% Year-on-Year, driven by 12% increase in net interest income and 23% non-interest income growth
Net interest margin at 3.11% in 1H 2025, up 3bps Year-on-Year
Cost-to-income ratio at 32.7% for 1H 2025, a 113bps improvement Year-on-Year
Cost of risk for 1H 2025 at 0.50%, a 10bps reduction Year-on-Year
Return on equity at 11.2%, increase of 36bps Year-on-Year
Capitalization remained healthy, while liquidity levels were stable

Riyadh, Kingdom of Saudi Arabia – 21 July 2025
Bader AlSalloom, Chief Executive Officer of BSF, announced that the Bank’s first half of 2025, BSF demonstrated robust financial performance with net income rising by 20% to SAR 2,741 million, Commenting on the results, AlSalloom:
“This accomplishment underscores our ability to effectively harness opportunities for growth while maintaining stringent cost management. Steady growth in both corporate and retail lending and a 23% rise in non-interest income have significantly strengthened our financial positioning. As We've also achieved a meaningful improvement in our cost-to-income ratio by 113 basis points. As we proceed through the final year of our strategic agenda, our focus remains sharply tuned to sustainable growth, fostering innovation, and delivering enhanced value to our stakeholders amidst a dynamic economic backdrop.”

AlSalloom also explained that the first half of 2025 showed a 20% year-on-year growth in net income to SAR 2,741 million, driven by a 12% rise in net interest income and a 23% increase in non-interest income, partly offset by higher operating expenses, Notably Net income improved by 5% quarter-on-quarter, driven by lower impairment charge along with marginal top line expansion, Total operating income also increased by 14% year-on-year to SAR 5,317 million for 1H 2025. Net interest income rose by 12% to SAR 4,314 million, driven by an increase in average interest earning assets and 3bps margin expansion to 3.11%, Non-interest income increased by 23% year-on-year to SAR 1,002 million, driven by higher investment-related gains and exchange income, along with improved net fee and commission income, Operating expenses increased 10% year-on-year to SAR 1,740 million in 1H 2025 due to increased other operating and general and administrative expenses, Operating expenses inched up marginally quarter-on-quarter as the decrease in general & administrative expenses was partly offset by an increase in depreciation. The cost to income ratio decreased by 113 basis points year-on-year to 32.7% for 1H 2025 as revenue growth exceeded cost inflation.
The impairment charge amounted to SAR 515 million for 1H 2025, a decrease of 6% year-on-year. In combination with healthy loan growth, this resulted in a 10bps year-on-year improvement in cost of risk to 0.50% for 1H 2025.Total assets as of 30 June 2025 amounted to SAR 301,490 million, an increase of 3% from 31 December 2024. Loans and advances rose 3% YTD to SAR 209,881 million, driven by both consumer and commercial lending growth. The NPL ratio increased marginally, while coverage levels remained robust. The investment portfolio expanded by 4% YTD to SAR 62,792 million & Customers’ deposits decreased by 1% YTD to SAR 182,690 million, due to a fall in interest-bearing deposits.

Alongside the record 2nd quarter and first half of 2025 record earnings, AlSalloom also noted the successful issuance of USD 650 million in Additional Tier 1 Sukuk during the second quarter, which attracted strong demand from regional and international investors with oversubscription exceeding 3.5x, further strengthening the Bank’s capital base and diversifying its funding sources.

He highlighted the Bank’s strategic partnerships and sponsorships such as Saudi Pro League (SPL) as a key enabler of its growth ambitions and brand reach. Noting that the partnerships have strengthened BSF’s presence across a broader customer base, enhanced brand visibility, and fostered deeper engagement with communities across the Kingdom. This initiative also aligns with Vision 2030’s objective of promoting a vibrant society and active lifestyle.
Beyond partnerships and sponsorships, the CEO emphasized the Bank’s continued advancement on ESG, including the launch of a due diligence toolkit to integrate environmental and social risk considerations into financing decisions.
He further underscored BSF’s commitment to corporate social responsibility, with new initiatives supporting financial education, technical skills development to Saudi youth, demonstrating the Bank’s efforts in empowering future generations, and contributing to the broader socioeconomic development of the Kingdom.
The CEO concluded by affirming BSF’s commitment to sustainable growth, supporting Saudi Vision 2030, and contributing to the national economy.