BSF reported 16% year-on-year growth in net income to SAR 1,338 million for 1Q 2025

23/Apr/2025

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Riyadh, 21 April 2025 - BSF reported 16% year-on-year growth in net income to SAR 1,338 million for 1Q 2025, driven by a 10% rise in net interest income and a 26% increase in non-interest income, partly offset by higher operating expenses. Net income improved by 20% quarter-on-quarter, driven by lower expenses and impairment charge along with marginal top line expansion.

Total operating income increased by 13% year-on-year to SAR 2,638 million for 1Q 2025. Net interest income rose by 10% to SAR 2,118 million, driven by an increase in average interest earning assets, partially offset by a 12-basis points margin contraction to 3.08%.

Non-interest income increased by 26% year-on-year to SAR 520 million, driven by higher investment-related gains and exchange income, along with improved net fee and commission and trading income.
Operating expenses increased 12% year-on-year to SAR 867 million in 1Q 2025 due to increased other operating and general and administrative expenses. Operating expenses, however, declined by 11% quarter-on-quarter from a decrease across all main cost categories, led by other operating and G&A expenses and depreciation. The cost to income ratio decreased by 31 basis points year-on-year to 32.8% for 1Q 2025 as revenue growth exceeded cost inflation.

The impairment charge amounted to SAR 280 million for 1Q 2025, a marginal increase of 1% year-on-year. In combination with healthy loan growth, this resulted in a 9bps year-on-year improvement in cost of risk to 0.51% for 1Q 2025.

Total assets as of 31 March 2025 amounted to SAR 302,988 million, an increase of 3% from 31 December 2024. Loans and advances rose 2% YTD to SAR 208,978 million, driven by both commercial and consumer lending growth. Credit quality remained robust, supported by improvements in both the NPL ratio and coverage levels.
The investment portfolio expanded by 2% YTD, & Customers’ deposits increased by 3% YTD to SAR 190,728 million, driven by interest-bearing deposits.

Commenting on the results, Bader AlSalloom, Chief Executive Officer of BSF, said:
“The first quarter of 2025 reflects BSF’s strong operating momentum and effective strategic execution, with net income rising 16% year-on-year. This performance highlights the success of our efforts to diversify revenue streams while maintaining disciplined cost control. Growth in both corporate and retail lending drove a 13% increase in loans and advances, while non-interest income rose by 26%, supported by continued strength in investment and fee-based activities. As we navigate an evolving economic landscape, our commitment to innovation and customer-focused growth remains steadfast.