Saudi Equity Research - Arab National Bank (ARNB) 1Q25 - First Look Note
ARNB’s funded income grew 2.3% YOY to SAR 3,569 Mn in 1Q25 due to rise in advances and investment portfolio. Cost-to-income ratio remained steady at 31.6% in 1Q25 compared to 1Q24. Impairment expenses rose 26.5% YOY to SAR 205 Mn in 1Q25 in line with portfolio growth and impending macroeconomic environment.
Saudi Equity Research - Arab National Bank (ARNB) 4Q24 - First Look Note
The cost-to-income ratio improved from 37.8% in 4Q23 to 35.7% in 4Q24. The board of directors have decided to distribute cash dividends of SAR 0.65 per share for 2H24. Share of results of associates grew from negative SAR 17 Mn in 4Q23 to positive SAR 132 Mn in 4Q24.
Saudi Equity Research - Arab National Bank (ARNB) 3Q24 - First Look Note
Total assets rose 10.4% YOY and 2.6% QOQ to SAR 240.7 Bn in 3Q24 due to growth in advances and investments. Net Advances rose 11.4% YOY and 2.9% QOQ to SAR 166.3 Bn in 3Q24. Customer’s deposits expanded substantially 17.3% YOY and 3.0% QOQ to SAR 180.8 Bn in 3Q24.
Higher non-funded income and lower impairment drove profitability
ARNB’s funded income grew 15.7% YOY to SAR 3,554 Mn in 2Q24 attributable to healthy loan growth of 8.6% and an increase in net investments portfolio by 7.8% in 2Q24.
Strong loan growth and growth in core non-funded income supported profit
Arab National Bank (“ARNB”,” the Bank”) recorded a strong 39.3% YOY growth in net profit to SAR 986 Mn in 2Q23, slightly lower than our estimate of SAR 1,020 Mn.
