Saudi-listed companies reported a 0.5% y-o-y fall in aggregate net income in 1Q 2025 to USD 36.2 bn, down from USD 36.4 bn, according to Kamco’s GCC Corporate Earnings Report (pdf). The dip was attributed to weaker performances across the energy, ins., and food & staples retailing sectors, which offset gains by the banking, real estate, and telecom sectors.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

The energy sector continues to make the largest contribution with a net income of USD 25.6 bn in 1Q 2025, down from USD 27.4 bn in the same quarter last year. The decline was led by Aramco, whose earnings dropped 7.2% y-o-y due to lower revenues and other incomes, as well as higher operating costs. In contrast, the National Shipping Company of Saudi Arabia (Bahri) saw a 17.6% y-o-y rise in net income to USD 142 mn, driven by higher contributions from equity-accounted investees, offsetting a 6.3% drop in revenue from its oil and chemical segments.

The banking sector made the second largest contribution, reporting a USD 5.9 bn net income in 1Q 2025, up 19.4% y-o-y. All listed banks reported growth, including Al Rajhi Bank, whose income rose 33.3% y-o-y to USD 1.6 bn, driven by a 25.7% increase in net financing and investment income. During the same period, Saudi National Bank posted a 19.4% y-o-y increase in net income to USD 1.6 bn, while Riyad Bank reported a 19.9% y-o-y rise to USD 662.5 mn, and Banque Saudi Fransi recorded a 16.3% y-o-y gain to USD 356.5 mn.

The telecommunications sector came in third, raking in a net income of USD 1.2 bn in 1Q 2025, up from USD 1.1 bn in the same period last year. The increase was driven by stc recording a net income rise of 11.0% y-o-y to USD 972.4 mn, and Mobily reporting a 20.2% y-o-y increase to USD 204.3 mn.

THE REGIONAL PICTURE-

GCC-listed companies saw aggregate earnings rise 2.0% y-o-y to USD 58.6 bn in 1Q 2025, driven by continued strength in banking, telecoms, and real estate, according to the GCC earnings report (pdf). Banking sector earnings hit USD 16 bn (+10% y-o-y) — a record high — led by strong growth in Saudi Arabia, Abu Dhabi, and Bahrain.

Telecoms were the breakout sector, with earnings up 45.3% y-o-y to USD 3.5 bn, thanks to Emirates Telecom, STC, and Zain Group. Real estate followed with a 55.5% y-o-y gain to USD 2.9 bn, bolstered by strong contributions from UAE and Saudi developers.

Still, the energy sector remained a drag, with earnings falling 5.7% y-o-y to USD 28.3 bn amid weaker oil prices and a 7.5% decline in Saudi Aramco’s earnings. Stripping out Aramco, GCC earnings rose 10.7%, underscoring the resilience of the region’s non-oil economy.

Tags: