Riyad Bank Q2 profit rises 8% as non-interest income offsets NII decline

Published 22/07/2025, 09:48
Riyad Bank Q2 profit rises 8% as non-interest income offsets NII decline

Investing.com -- Riyad Bank reported an 8% increase in net income for the second quarter of 2025, as strong non-interest income growth offset lower net interest income and reduced provisions.

The bank’s net interest income (NII) decreased by 2.5% quarter-on-quarter and increased by 3.3% year-on-year. Net interest margin (NIM) contracted by 19 basis points compared to the previous quarter and 38 basis points year-on-year due to higher interest expenses.

Non-interest income surged 47% compared to the same period last year, contributing to total operating income that was 3% above market expectations.

Loan impairments decreased 14% from the previous quarter but were 77% higher year-on-year, resulting in a cost of risk of 36 basis points.

The bank’s net loans grew 5% quarter-on-quarter, bringing year-to-date loan growth to 11%, while deposits increased by 4% compared to the previous quarter.

For the first half of 2025, Riyad Bank’s net interest income rose 5% year-on-year, aligning with its full-year 2025 guidance of mid-single-digit growth.

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