Bank Aljazira · TADAWUL:1020
Bank Aljazira — H1 2024 Earnings Presentation
25 slides from Bank Aljazira's earnings presentation, Aug 7, 2024
Slide 1: Bank AlJazira Earnings Presentation 1H 2024
Bank AlJazira Earnings Presentation 1H 2024
Slide 2: Continued growth of assets with gradually improving profitability and efficiency
Highlights Highlights Strategy & ESG Financials Guidance Appendix Continued growth of assets with gradually improving profitability and efficiency Macro Saudi Arabia’s favorable operating Non-oil Real GDP Growth SAIBOR 3M Avg (%) Banking Sector Loan Growth environment: Background robust non-oil GDP
Slide 3: Strategic Progress
Strategic Progress
Slide 4: We refreshed our strategy with a clear transformation agenda for each business segment
Refreshed Strategy Highlights Strategy & ESG Financials Guidance Appendix We refreshed our strategy with a clear transformation agenda for each business segment The Refreshed Strategy Business Lines Vision Where are we heading? Corporate Retail Segment and sector focused CIBG: Bank-of-choice for aff
Slide 5: Notable progress and accomplishments in the refreshed strategy were realized in 1H 2024
Progress on Strategic Initiatives Highlights Strategy & ESG Financials Guidance Appendix Notable progress and accomplishments in the refreshed strategy were realized in 1H 2024 Corporate Retail Initiatives Outcomes Initiatives Outcomes Focusing on SMEs: Growing assets profitably: Enhanced value prop
Slide 6: ESG Highlights
Spal Clin > BANK ALJAZIRA
Slide 7: BAJ is delivering impactful ESG initiatives across its operations
ESG Highlights Highlights Strategy & ESG Financials Guidance Appendix BAJ is delivering impactful ESG initiatives across its operations Environmental Paper Usage Water Consumption Energy Consumption CSR Projects Awards 2023 Reduced by digitalization Reduced by Reduced by Participated in KSA’s Nation
Slide 8: Financial Performance
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Slide 9: Balance sheet continues expanding by 7% YTD, driven by financing portfolio
Total Assets and Financing Highlights Strategy & ESG Financials Guidance Appendix Balance sheet continues expanding by 7% YTD, driven by financing portfolio Total Assets (SAR Bn) 2Q 2024 Total Assets Movement YTD (SAR Bn) 2Q 2024 +7% +7% 129.6 135.8 138.0 6.4 0.3 138.0 124.4 129.3 2.8 3.0 3.1 129.6
Slide 10: Optimizing investments by replacing maturities with fixed assets at favorable rates
Investments Highlights Strategy & ESG Financials Guidance Appendix Optimizing investments by replacing maturities with fixed assets at favorable rates Investments Movement YTD (SAR Bn) 2Q 2024 Investments (SAR Bn) 2Q 2024 +1% +1% 2.4 36.3 36.5 34.4 34.0 34.6 34.4 34.6 (1.3) 24.5 23.7 20.5 20.0 20.3
Slide 11: Liquidity position provides substantial buffers to accommodate future growth
Liabilities and Liquidity Highlights Strategy & ESG Financials Guidance Appendix Liquidity position provides substantial buffers to accommodate future growth Total Liabilities Movement YTD (SAR Bn) 2Q 2024 Loans to Customers' Deposit Ratios (%) 2Q 2024 +7% 87.6% 88.5% 85.9% 86.5% 81.4% 4.5 121.3 3.8
Slide 12: CASA share remains above 40% supported by the growth in savings accounts
Customers’ Deposits Highlights Strategy & ESG Financials Guidance Appendix CASA share remains above 40% supported by the growth in savings accounts Customers' Deposits (SAR Bn) 2Q 2024 Customers' Deposits Movement YTD (SAR Bn) 2Q 2024 +5% +5% 94.1 97.3 98.6 1.4 0.3 98.6 92.1 90.6 3.2 94.1 53.5 51.2
Slide 13: Boosted net income through top-line expansion
Net Income Highlights Strategy & ESG Financials Guidance Appendix Boosted net income through top-line expansion Net Income for the Period Movement YoY (SAR Mn) 1H 2024 Quarterly Net Income (SAR Mn) 2Q 2024 Management commentary +22% 318 Net income up 33% YoY, from higher operating income, partly o
Slide 14: Net F&I income growing 11% from earning assets expansion on broadly stable net margin
Net Financing and Investment Income and Margin Highlights Strategy & ESG Financials Guidance Appendix Net F&I income growing 11% from earning assets expansion on broadly stable net margin Net Financing & Investment Income Movement YoY (SAR Mn) 1H 2024 Quarterly Net Margin (%) 2Q 2024 6.06% 6.15% 5.5
Slide 15: Over 30% of operating income is represented by well-diversified non-funded income
Fee & Other Income Highlights Strategy & ESG Financials Guidance Appendix Over 30% of operating income is represented by well-diversified non-funded income Fee & Other Income Movement YoY (SAR Mn) 1H 2024 Net Fee Income From Banking Services Movement YoY (SAR Mn) 1H 2024 +16% +19% 39 16 3 542 49 20
Slide 16: Cost-to-income ratio improving YoY from positive jaws
Operating Expenses Highlights Strategy & ESG Financials Guidance Appendix Cost-to-income ratio improving YoY from positive jaws Operating Expenses (SAR Mn) 2Q 2024 Operating Expenses Movement YoY (SAR Mn) 1H 2024 +10% +7% 488 515 492 508 32 4 0 1,000 463 25 938 +5% +6% -4% +3% +5% +11% +5% +1% 2Q 23
Slide 17: Credit quality remains healthy with improving NPL ratio
Credit Quality Highlights Strategy & ESG Financials Guidance Appendix Credit quality remains healthy with improving NPL ratio Cost of Risk* (%) 1H 2024 NPL Ratio (%) 2Q 2024 NPL Coverage Ratio 2Q 2024 2.21% 1.91% 1.90% 0.30% 1.80% 1.78% 0.29% 0.28% 0.26% 1.84% 1.68% 1.66% 1.57% 1.52% 0.20% -9ppts YT
Slide 18: Returns are gradually improving, with capitalization stabilizing in 2Q 2024
Capitalization and Profitability Highlights Strategy & ESG Financials Guidance Appendix Returns are gradually improving, with capitalization stabilizing in 2Q 2024 Capital Adequacy Ratio (%) 2Q 2024 Risk Weighted Assets (SAR Bn) 2Q 2024 20.9% 20.2% 19.9% +10% 18.3% 18.2% 103.1 105.0 89.9 93.1 95.9 4
Slide 19: Diverse segment mix, with strong contributions from corporate and brokerage in 1H 2024
Segmental Performance Highlights Strategy & ESG Financials Guidance Appendix Diverse segment mix, with strong contributions from corporate and brokerage in 1H 2024 Total Assets Movement YTD (SAR Bn) 2Q 2024 Total Assets Composition (%) 2Q 2024 +7% Corporate 2.9% 0.2% 1.4 0.45 0.08 138.0 33.4% 2.8 3.
Slide 20: Guidance
Spal Clin > BANK ALJAZIRA
Slide 21: The updated guidance for NIM and T1 is influenced by the rate environment
Guidance Highlights Strategy & ESG Financials Guidance Appendix The updated guidance for NIM and T1 is influenced by the rate environment Guidance Metric FY 2023 Actual 1H 2024 Actual FY 2024 Guidance Drivers Financing growth +14% +8% YTD Mid-teens Anticipating sustained mid-teens growth predominant
Slide 22: Q&A
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Slide 23: Appendix
Spill lis BANK ALJAZIRA Appendix
Slide 24: Connect with us
Contacts Highlights Strategy & ESG Financials Guidance Appendix Connect with us IR Contacts Latest Reports Muhammad Majid Khan, Head of Investor Relations Board of Directors’ Report Sustainability Report Direct: +966 (12) 609 8997 Email: MMKhan@BankAljazira.com Abdulaziz Nahas, Senior Manager - Inve
Slide 25: Disclaimer
Disclaimer Highlights Strategy & ESG Financials Guidance Appendix Disclaimer Please note that this presentation includes information that is derived from the financial statements of Bank AlJazira. As of the date of this earnings call, these financial statements have not yet been published on our web