Bank AlJazira Posts 21% Profit Rise in FY2024 on Broad-Based Income Growth

Bank AlJazira has reported full-year 2024 net income of SAR 1,231 million, a rise of 20.7% compared with the prior year, as the Saudi lender delivered broad-based growth across all major revenue categories. Operating income climbed 13% year on year to SAR 3,779 million, driven mainly by an 11% rise in net income from financing and investments, and a 19% expansion in fee and other income.

Higher rates cut both ways: financing and investment income rose 27%, but the cost of funds rose 37% and the bank's net margin eased to 1.99% from 2.04%. Net special commission income advanced 10.9% year on year, while fee income also grew.

FINANCING GROWTH

Financing grew 20.0% year on year to SAR 96.91 billion.

BALANCE SHEET GROWTH

Total assets rose 15% year on year to SAR 148.91 billion and customer deposits grew 15.0% to SAR 108.19 billion, according to the bank's results disclosure.

The breadth of the improvement spanned financing income, fees and balance-sheet growth, and the cost-to-income ratio improved 2.2 points to 56.0%, although return on average equity remained modest at 7.32%.