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Investing.com -- Saudi National Bank reported a net income of SAR6,137 million for the second quarter of 2025, marking a 2% increase quarter-over-quarter and a 17% rise year-over-year.
The bank’s quarterly performance exceeded analyst expectations, coming in 9% above Jefferies estimates and 7% above consensus forecasts. The strong results were primarily driven by better-than-expected performance in impairments, which showed a net positive charge in the second quarter.
For the first half of 2025, SNB’s pretax income represented slightly over 52% of full-year consensus estimates.
The bank’s pre-provision operating profit reached SAR6,742 million in Q2, showing a 2% decline from the previous quarter but a 9% improvement compared to the same period last year. This figure aligned with both Jefferies estimates and broader market consensus.
SNB recorded year-to-date loan growth of 9%, outpacing Al Rajhi’s 7%. However, SNB’s net interest income trends were weaker than Al Rajhi’s due to higher funding costs. SNB demonstrated stronger deposit gathering capabilities than Al Rajhi, contributing to a 4 percentage point quarterly decline in SNB’s loan-to-deposit ratio, compared to a 0.6 percentage point increase for Al Rajhi.
The bank’s net interest margin is positioned to benefit from lower Federal Reserve rates, although Al Rajhi shows better sensitivity to rate changes. SNB also reported robust growth in non-interest revenue during the second quarter, while maintaining control over operational efficiencies.
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