Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q4 2022 Earnings Presentation
26 slides from Saudi National Bank's earnings presentation, Feb 6, 2023
Slide 1: 4Q 2022 Earnings Presentation
4Q 2022 Earnings Presentation Saudi National Bank Riyadh | 06 February 2023 SNB | 4Q 2022 | Earnings Presentation
Slide 2: Disclaimer
Disclaimer The Saudi National Bank (SNB) prepared this presentation on a proprietary basis as general background information about the activities of SNB. The information contained herein is given in summary form and for discussion purposes only. Some of the information that is relied upon by SNB is
Slide 3: Pro-forma financial statements
Pro-forma financial statements The pro-forma financial information consists of the unaudited pro-forma condensed consolidated statement of financial position of NCB and Samba (together referred to as ‘‘the Group’ or “SNB”’) as at December 31, 2022 and comparative period, as if the merger has taken p
Slide 4: FY 2022 Performance Highlights
FY 2022 Performance Highlights Record net income from solid financing growth, margin expansion and lower operating and risk costs, whilst maintaining strong funding Balance sheet expansion… …from robust growth in financing… …as Wholesale financing grew… …and with continued Retail growth ROA momentum
Slide 5: FY 2022 Performance Highlights (Continued)
FY 2022 Performance Highlights (Continued) Synergy realization ahead of target | continued progress on delivering merger benefits Unlocking merger benefits… …with targeted cost synergies revised up for the second time to SAR 1.4bn Realized 1 Sources of Cost Synergies Cost Synergies Realized SAR Mill
Slide 6: 2023 Strategy, Outlook & Guidance
2023 Strategy, Outlook & Guidance KSA focused growth to reinforce SNB’s leading position as the National Champion SNB Strategy Macro-Economic Outlook1 Financial Guidance Retail financing Real GDP Growth +3.1% Financing Growth High single-digit Growing Market Corporate financing Share Retail and Corp
Slide 7: Balance Sheet Summary
Balance Sheet Summary 3% balance sheet expansion from financing and investments growth, funded mainly from interbank Total Assets (SARbn) Total Assets Movement YoY (SARbn) 964.4 945.5 914.1 87.6 +3% 81.4 83.8 536.2 914.1 15.7 47.7 2.4 945.5 497.6 545.3 (34.5) 242.6 252.2 258.3 92.6 88.5 58.1 -37% +6
Slide 8: Financing and Advances
Financing and Advances Robust financing growth in Retail and Wholesale Financing & Advances, Net (SARbn) Financing & Advances, Net Movement YoY (SARbn) 2022 Guidance +11%-13% 536.2 545.3 +10% 497.6 2.4 2.5 1.9 16.6 16.7 17.8 228.5 232.7 24.4 7.9 6.6 9.3 0.6 545.3 216.8 497.6 Retail Wholesale (1.0) S
Slide 9: Investments
Investments Investments up 6% from balanced growth across the portfolio Investments (SARbn) Investments Movement YoY (SARbn) 252.2 258.3 242.6 +6% 21.7 25.5 20.5 56.2 57.9 60.1 242.6 5.1 5.7 4.9 258.3 162.0 174.3 174.9 +3% +8% +24% 1 4Q 21 3Q 22 4Q 22 4Q 21 SGDS Other fixed income Funds & equity 4Q
Slide 10: Deposits
Deposits Healthy CASA ratio despite expected moderation from rising rate environment Customers' Deposits (SARbn) Customers' Deposits Movement YoY (SARbn) 588.6 596.9 568.3 -3% 21.5 21.9 23.5 Domestic International 111.6 137.1 116.6 SAR -18.9bn (-3%) SAR -1.4bn (-5%) 588.6 6.1 1.0 568.3 455.5 437.9 4
Slide 11: Income Statement Summary
Income Statement Summary Pro-forma net income after Zakat and Tax rose 26% YoY from higher NSCI, lower operating expenses and risk costs; +47% on a reported basis Net Income After Zakat and Income Tax Attributed to Equity Holders Movement YoY (SARmn) ROTE (%) 2022 Guidance 0 16%-17% 0 +47% 0 16.55%
Slide 12: NSCI & Margin
NSCI & Margin Pro-forma NSCI growth of 12% from margin expansion Net Special Commission Income Movement YoY (SARmn) +18% +12% 2,835 1,955 726 1,330 1,192 25,317 969 26,286 22,208 22,604 (933) Financing Mix & Yield (3,995) SAR +4,028mn +10% +44% +40% +62% +205% FY 21 SAMBA FV unwind FY 21 Retail Whol
Slide 13: Fee & Other Income
Fee & Other Income Pro-forma fee and other income decreased 6% YoY from lower investment-related income Fee and Other Income Movement YoY (SARmn) +11% -6% 1,100 7,116 321 168 6,717 6,717 6,028 (12) (68) (820) -6% +9% -4% -25% -14% FY 21 SAMBA Other FY 21 Banking FX Inv-related Other FY 22 FY 22 1Q 2
Slide 14: Operating Expenses
Operating Expenses Pro-forma 9% improvement in operating expenses driven by realized synergy savings and cost optimization efforts Operating Expenses Movement YoY (SARmn) +2% -9% 1,023 9,722 845 71 9,784 9,562 255 8,868 (689) (174) (340) (73) (696) -7% -12% +22% -21% FY 21 SAMBA Intangibles Integra-
Slide 15: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk Cost of Risk down 27bps reaching 0.33% on lower Corporate impairments Net Impairment Charge for Financing and Advances Movement YoY (SARmn) Cost of Risk (%)1 2022 Guidance 0 0 0.60% 0.3%-0.5% -57% 0.56% 0 418 0 0 0.33% 4,023 0.27% -43% 0 0 305 3,066 0 FY 2
Slide 16: Credit Quality
Credit Quality Stable NPL ratio YoY as financing growth matched NPL growth Credit Impaired Financing Movement YoY (SARbn) +10% 3.0 11.9 0.5 0.7 9.0 8.1 (0.4) +10% +63% +11% -46% NPLs Retail Corporate Int'l NPLs POCI Credit impaired financing 4Q 21 4Q 22 4Q 22 REPORTED REPORTED REPORTED, INCL. POCI N
Slide 17: Credit Quality (Continued)
Credit Quality (Continued) NPL coverage ratios remain healthy ECL Allowance by Stage (SARmn) Total Financing and Advances, Gross by Stage (SARbn) 11,017 11,271 11,408 544.5 553.8 506.0 8.7 9.1 8.4 25.2 18.4 21.9 5,836 6,150 6,372 479.2 513.9 519.5 2,816 3,073 3,214 2,364 2,049 1,822 4Q 21 3Q 22 4Q 2
Slide 18: Capitalization
Capitalization Modest decline in capital ratios mostly due to negative fair value of debt instruments through comprehensive income Total Capital (SARbn) Total Capital Movement YoY (SARbn) +4% +4% 127.8 129.0 132.6 5.4 5.4 5.2 12.2 15.5 15.5 18.4 3.3 127.8 0.7 132.6 111.9 (9.0) (8.7) 110.2 108.2 4Q 2
Slide 19: Liquidity
Liquidity Strong liquidity profile maintained Net Stable Funding Ratio (NSFR) (%) SAMA LTD Ratio (%) 1 120% 119% 116% 40 Regulatory 900.0 1 ceiling 800.0 35 1 30 700.0 1 82.6% 90% 634.9 653.6 634.2 77.3% 74.5% 600.0 1 25 500.0 1 20 400.0 1 15 300.0 1 10 200.0 1 5 100.0 1 0 0.0 1 4Q 21 3Q 22 4Q 22 4Q
Slide 20: Q&A 4Q 2022
Q&A 4Q 2022
Slide 21: Additional Information
Additional Information Write to Us Visit our website The Saudi National Bank Tower, Unit No. 778 alahli.com King Abdullah Financial District 3208, Al Aqeeq District, King Fahad Road Access SNB’s current and previous Investor Disclosures Riyadh, Kingdom Of Saudi Arabia, 13519 - 6676 SNB Corporate Rep
Slide 22: Appendix
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Slide 23: SNB Overview
SNB Overview SNB is Saudi Arabia's largest banking group with a well-diversified business model, leading client offering, and presence in 8 countries Our Presence Advanced Digital Capabilities Our Purpose Saudi National Bank Subsidiary Offices in Retail User Penetration To propel our nation Headquar
Slide 24: Leading, diversified franchise
Leading, diversified franchise SNB Market Position as of 3Q 2022 KSA Total Market SNB Market Share in SARbn SNB Market Share in % Rank KSA 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall banking SAR 3,329 bn 964 2,365 29.0% #1 (Assets) Wholesale banking SAR 1,153 bn 240 913 20.8% #1 (Performing
Slide 25: KSA Macroeconomic Overview (1)
KSA Macroeconomic Overview (1) Average Monthly Oil Prices (US$/bbl) Oil Demand Outlook (mmbd) Real GDP Growth (% Y/Y change) 140 102.0 101.7 101.8 20.0 120 101.5 15.0 15.4 100 83 101.0 10.0 8.7 80 100.5 76 100.5 5.0 5.4 60 100.0 99.8 0.0 40 99.4 99.5 20 99.5 -5.0 0 99.0 -10.0 Dec-12 Dec-14 Dec-16 De
Slide 26: KSA Macroeconomic Overview (2)
KSA Macroeconomic Overview (2) Bank Lending & Deposits (Y/Y % change) Bank Lending by Sector (M/M % change) Gross Mortgage Originations (SARbn) 20.0 4.0 16,000 200.0 3.0 14,000 150.0 15.0 2.0 12,000 14.1 10,000 100.0 1.0 10.0 0.3 8,000 9.1 0.0 -0.3 6,000 50.0 5.0 -1.0 4,000 0.0 -2.0 2,000 0.0 -3.0 0