Saudi Investment Bank · TADAWUL:1030
Saudi Investment Bank — The Saudi Investment Bank — FY2024 Earnings Presentation
26 slides from Saudi Investment Bank's earnings presentation, Feb 13, 2025
Slide 1: Earnings Presentation FY 2024
Earnings Presentation FY 2024 13 February 2025
Slide 2: Contents
Contents FY 2024 Performance Highlights 3 Strategy 4 Financial Performance 9 2025 Guidance 21 Q&A 23 Appendix 24 The Saudi Investment Bank – FY 2024 Earnings Presentation P. 2
Slide 3: Growth momentum sustained in FY 2024 demonstrating solid progress
Growth momentum sustained in FY 2024 demonstrating solid progress Loans (SAR mn) Net Income (SAR mn) 1,957 Net Income grew by 11% YoY to 80.8 99.5 Robust balance sheet 1,508 1,762 57.8 68.9 1,062 SAR 1,957 mn, driven by strong expansion, driven by a 23% businesss performance. +23% YoY increase in lo
Slide 4: Strategy
Strategy The Saudi Investment Bank – FY 2024 Earnings Presentation P. 4
Slide 5: As part of Strategy 2027, we have set a strategic vision for each function
As part of Strategy 2027, we have set a strategic vision for each function Vision To be the trusted bank for our clients We build long term relationships with clients, create an unrivaled work environment for our people and deliver Mission consistent value for our shareholders Corporate Banking
Slide 6: Strategy 2027 is transforming the bank through 40+ initiatives across 9 businesses and functions
Strategy 2027 is transforming the bank through 40+ initiatives across 9 businesses and functions в Focus areas Consumer & Private Corporate Banking Public Institutions Banking Core 1 Strategic segmentation & Accelerate Increase penetration Build differentiated and grow DDA and fees segments differen
Slide 7: Strategy 2027 has achieved many milestones in FY 2024...
Strategy 2027 has achieved many milestones in FY 2024... Issued $750 M Tier-1 sustainable Sukuk SAIB issued its first USD denominated additional tier-1 sustainable Sukuk under its international Sukuk program joining its peers The offer was over-subscribed in a short span before listing on London
Slide 8: ...and has set ambitious goals to achieve in the coming year
…and has set ambitious goals to achieve in the coming year Consumer and Private Corporate Banking Banking Public Institutions Launch revamped account opening, trade Launch the new Mobile Banking App Launch revamped account opening journey process and enhanced operating model Enhance the valu
Slide 9: With our strategy, we aim to grow market share, increase fee income and improve efficiency
With our strategy, we aim to grow market share, increase fee income and improve efficiency to drive higher ROE Grow Market Share in Commercial Loans Grow Market Share in Retail Loans SAIB has already started to close the gap Commercial KSA Market Share towards KSA peers’ return on equity Retail KSA
Slide 10: Financial Performance
Financial Performance FY 2024 The Saudi Investment Bank – FY 2024 Earnings Presentation P. 10
Slide 11: SAIB is focused on delivering strong results across key performance indicators
SAIB is focused on delivering strong results across key performance indicators FY 2024 DRIVERS LOANS & ADVANCES SAR 99.5bn +23% YoY Strong growth in Corporate (+25%) and Private Banking (+18%) loans Balance Sheet DEPOSITS SAR 94.0bn +13% YoY Strong growth in IBDs (+17%) mainly from corporate and ret
Slide 12: Balance sheet momentum funded largely by deposits and interbank
Balance sheet momentum funded largely by deposits and interbank Total assets increased by 21% YoY as loans grew 23% and investments rose 25%, which were partially offset by decreased balances with SAMA (-10%) and a reduction in Loans & Advances (SARbn) Retail Corporate Other bank placements (-11%) T
Slide 13: Loan growth continues to gain momentum mainly driven by corporate lending
Loan growth continues to gain momentum mainly driven by corporate lending 23% YoY growth in loans driven by 25% increase in +6% Loans & Advances by Segment (%) corporate lending due to widespread growth across sectors and further expansion of private banking +5% +1% Total Loans QoQ lending. Active
Slide 14: Investments grew 25% YoY driven by acquisition of high-quality, fixed-rate debt securities
Investments grew 25% YoY driven by acquisition of high-quality, fixed-rate debt securities Increase in investments during FY 2024 mainly driven Investments, Gross by Type (%) Investments by Accounting Classification (%) by new securities purchased to lock-in benefits from high rate environment (mainl
Slide 15: Customer deposits increased 13% YoY mainly driven by IBDs
Customer deposits increased 13% YoY mainly driven by IBDs Deposits grew 13% during FY 2024, mainly due to increase in interest-bearing deposits Deposits by Segment (%) Q4 2024 saw a 4% decrease in deposits, driven by -4% Deposits QoQ time deposit repayments and balance sheet optimization. 15% Corp
Slide 16: 11% growth in FY 2024 earnings driven by increased operating income and lower risk cost
11% growth in FY 2024 earnings driven by increased operating income and lower risk cost Net income increased 11% YoY in FY 2024 driven by 5% growth in operating income, further aided by a 19% decrease in impairment charges Net Income Movement YoY (SARmn) Return of Equity increased 53 bps YoY to 13.1
Slide 17: NSCI grew 3% YoY as 15% growth in average earning assets was mostly offset by NIM contraction
NSCI grew 3% YoY as 15% growth in average earning assets was mostly offset by a 30bps NIM contraction NSCI grew 3% YoY as 15% growth in average earning NSCI Movement YoY (SARmn) NIM Movement YoY 2024 Guidance assets for FY 2024 and was mostly offset by NIM NIM: 2.70% - 2.75% contraction The YoY NIM
Slide 18: Growth in fee and other income of 17% driven by investment income and banking services fees
Growth in fee and other income of 17% driven by investment income and banking services fees Fee & other income increased 17% YoY in FY 2024, Fee & Other Income Movement YoY (SARmn) mainly driven by investment-related income and supported by growth of banking services fees Investment related income i
Slide 19: Operating expenses grew by 5% YoY
Operating expenses grew by 5% YoY Operating expenses increased 5% YoY in FY 2024 Operating Expenses Composition Operating Expenses (SARmn) driven by higher general & administrative and employee- related costs, while the rent and premises-related (%) - FY 24 expenses, as well as depreciation & amorti
Slide 20: Credit quality remained stable with NPL ratio at low levels
Credit quality remained stable with NPL ratio at low levels Total impairments of SAR 290 mn for FY 2024, Impairments (SARmn) Impairment for loans Cost of Risk decreasing 19% YoY from SAR 359 mn in FY 2023 2024 Guidance COR: 0.30% - 0.35% Cost of risk decreased 15 bps YoY to 0.32% in FY 2024 Non-perf
Slide 21: Solid liquidity, funding and capital position with adequate buffers
Solid liquidity, funding and capital position with adequate buffers LCR declined by 31.2 ppt during FY 2024 to 164.7%, Liquidity Ratios LCR NSFR Loans to Deposits Ratio SAMA LTD Headline LTD while NSFR decreased 4.4 ppt to 108.7% As of the end 2024, the SAMA regulatory LTD ratio 105.8% was comfortab
Slide 22: FY 2024 Results and 2025 Guidance
FY 2024 Results and 2025 Guidance The Saudi Investment Bank – FY 2024 Earnings Presentation P. 22
Slide 23: FY 2024 financial results provided a strong foundation for setting ambitious goals for the year ahead
FY 2024 financial results, which largely met expectations, provided a strong foundation for setting ambitious goals for the year ahead 2024 Actual 2024 Guidance 2025 Guidance 2025 Guidance Drivers Balance Sheet LOANS & ADVANCES +23% >20% > 15% Solid growth in Corporate and Private Banking loans YoY
Slide 24: Q&A
Q&A The Saudi Investment Bank – FY 2024 Earnings Presentation P. 24
Slide 25: Appendix
Appendix The Saudi Investment Bank – FY 2024 Earnings Presentation P. 25
Slide 26: SAIB Investor Relations
SAIB Investor Relations For more information, please visit www.saib.com.sa/en/investor-relations or contact SAIB Investor Relations at ir@saib.com.sa The Saudi Investment Bank – 3Q 2024 Earnings Presentation P. 26
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