Riyad Bank reports a 19% increase in its profit for the first quarter of 2025, reaching $663 million, due to higher income and lower costs
Riyad Bank has announced a 19.9% increase in net profit for the first quarter of 2025, reaching $662.6 million (SAR 2.5 billion). This growth was driven by higher income from operations and lower operating costs.
First-Quarter Performance
Riyad Bank’s total income in the first quarter grew by 10.2% compared to last year, reaching $1.2 billion (SAR 4.5 billion). This was mainly due to higher earnings from special commissions, fees, trading, and exchange income. However, this growth was partly offset by losses from selling non-trading investments and a drop in dividend income.
Income from financing commissions increased by 9% to $789.8 million (SAR 2.9 billion), while income from investment commissions decreased by 4.6% to $85.1 million (SAR 319 million).
The bank’s overall income, including all gains and losses, rose by 23.6% to $715 million (SAR 2.7 billion) in the first quarter.
Operating expenses before losses increased by 2.5% to $367.5 million (SAR 1.4 billion). But compared to the previous quarter, expenses dropped by 2%.
The bank reported a 17.1% decrease in provisions for credit losses and other losses, falling to $96.4 million (SAR 361.7 million). This drop was mainly due to fewer charges for credit losses and higher reversals of previous impairment charges.
In comparison to the last quarter, operating expenses fell by 3.2%, driven by lower impairment charges, reduced administrative costs, and higher reversals of investment losses. However, this was partly offset by higher employee-related costs, rent, other operating expenses, and depreciation.
Riyad Bank’s total assets grew by 14.9% to $124 billion (SAR 465.3 billion) by the end of March 2025, and its investments increased by 14% to $18.5 million (SAR 69.3 million).
$533 Million Sukuk Offering
In February, Riyad Bank raised $533 million (SAR 2 billion) through a Sukuk offering to strengthen its capital. This offering was part of a larger $2.7 billion (SAR 10 billion) Sukuk program and was only available to institutional and qualified clients. The funds will be used to support the bank’s capital and for general banking needs.
Published: 22th April 2025
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