Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q2 2025 Earnings Presentation
54 slides from Saudi National Bank's earnings presentation, August 2025
Slide 1: 2Q 2025 Investor Presentation
2Q 2025 Investor Presentation August 2025
Slide 2: Table of Contents
Table of Contents SNB Profile 01 Operating Environment 02 Strategy 2025-2027 03 Financial Highlights 04 Our goal is to propel the nation’s progress towards Vision Debt Profile Update 05 2030 and beyond by spearheading technological Financial Results Details 06 innovation, encouraging progressive thi
Slide 3: SNB Profile
SNB Profile O1 SNB
Slide 4: SNB Overview
SNB Overview SNB is Saudi Arabia’s largest banking group with a well-diversified business model, leading client offering, and presence in 9 countries Our Purpose: Robust credit standing Subsidiary Subsidiary Offices in TFKB (Turkey) Samba Bank (Pakistan) Shanghai & Seoul Ratings LT ST Outlook 3,037 E
Slide 5: SNB in KSA and GCC Context
SNB in KSA and GCC Context SNB is a leading bank in KSA and the GCC region SNB Rank SNB Rank Top 5 Banks in GCC by Rank in KSA in GCC Assets (SARbn) (¥bn) Financing (¥bn) (SARbn) Assets #1 #3 Peer 1 1,395 Peer 1 991 Peer 2 1,372 Peer 4 742 Financing #2 #3 SNB 1,201 SNB 715 Peer 3 1,109 Peer 2 580 De
Slide 6: SNB market position as of 2Q 2025
SNB market position as of 2Q 2025 Leading, diversified franchise KSA Total Market SNB Market Share in ¥bn SNB Market Share in % Rank KSA Overall Banking (Assets) ¥ 4,518Bn 1,201 3,317 27% #1 Wholesale Banking (Domestic Financing) ¥ 1,766Bn 348 1,418 20% #1 Retail Banking (Domestic Financing) ¥ 1,256
Slide 7: Operating Environment
Operating Environment 02 SNB
Slide 8: Supportive KSA macro-economic environment
Operating Environment Supportive KSA macro-economic environment Average Monthly Oil Prices (US$/bbl) Oil Demand Outlook (mmbd) Real GDP Growth (% Y/Y change) 140 107.0 106.4 +20.0 120 106.0 104.6 +15.0 105.1 105.0 104.5 100 103.5 +10.0 103.8 103.8 +5.1 104.0 103.0 80 69.8 +5.0 +4.6 103.0 102.7 +4.3
Slide 9: Strong and stable banking sector
Operating Environment Strong and stable banking sector Overall Banking Industry Lending Overall Banking Industry Lending by Average Monthly Value of Gross Mortgage & Deposits (Y/Y % change) Sector (M/M % change) Origination by All Banks (¥bn) 20.0 4.0 14,000 200.0 3.0 12,000 15.8 150.0 15.0 10,000 2
Slide 10: Strategy 2025-2027
Strategy 2025-2027 03 SNB
Slide 11: SNB Strategy 2025-2027
SNB Strategy 2025-2027 SNB’s comprehensive strategy prioritizes sustainable growth in the Kingdom and embraces a customer-centric approach, while championing innovation Key Pillars Themes Target emerging segments with Market Share and focus on improving returns and fee Grow Financing Drive CASA Enha
Slide 12: 2027 financial targets
SNB Strategy 2025-2027 2027 financial targets Area Metrics1 2024F Baseline 2027 Targets Key Targets Financing Growth CAGR 2024-27 ¥ 654bn Low teens Growth CASA Growth CAGR 2024-27 ¥ 419bn Low teens Growth NSCI Growth CAGR 2024-27 ¥ 27.7bn Low double digit Banking Fee Income Growth CAGR 2024-27 ¥ 4.6
Slide 13: 2Q 2025 marked positive progress across our strategic KPIs
2Q 2025 Key Highlights 2Q 2025 marked positive progress across our strategic KPIs Market share and value creation Grow Financing market share Drive CASA acquisition SNB Capital leadership CASA Growth, CAGR 2024-27 AUM market Total financing market share Wholesale financing market share Retail financ
Slide 14: Positive momentum on each of the strategic themes
2Q 2025 Key Highlights …with positive momentum gained on each of the strategic themes Market share and Operational Customer Innovation Key pillars Talent magnet value creation excellence centricity Recalibrated risk appetite Credit approval Set up after sales Launched new digital Introduced a strate
Slide 15: Financial Highlights
Financial Highlights 04 SNB
Slide 16: 1H 2025 Highlights
1H 2025 Highlights Strong progress against our strategy — delivering growth, innovation and operational excellence Growth Across Core Banking Metrics Disciplined Cost and Capital Management Financing ¥ 715bn Wholesale (+20%) +9% YTD CASA +¥ 81bn +19% YTD Opex growth +2% YoY Group CIR 26.6% Retail (-
Slide 17: 2Q 2025 Financial Performance Highlights
2Q 2025 Financial Performance Highlights SNB delivered record net income, supported by strong balance sheet growth, robust core revenue, continued cost discipline and solid credit quality Strong financing growth from Wholesale financing and Mortgage expansion with a decreasing NPL ratio2 Retail Mort
Slide 18: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 9% YTD mainly from financing growth, supported by a 14% increase in domestic customers’ deposits Total Assets (¥bn) Total Assets Movement YTD (¥bn) +9% +9% 1,171.1 1,201.0 58.2 3.1 1,201.0 1,104.2 88 91 23.2 94 1,104.2 15.8 (3.5) 706 715 654 +3% 292 3
Slide 19: Income Statement Summary
Income Statement Summary 18% YoY Net income growth driven by revenue uplift, cost discipline and better risk costs, reflecting strong asset quality Net Income Attributed To Equity Holders Movement YoY (¥mn) Net Income (¥mn) +18% +17% +18% 6,022 6,137 669 983 12,212 12,159 5,231 1 10,270 10,337 521 (
Slide 20: Segmental Highlights
Segmental Highlights Solid net income contribution from Wholesale, slightly offset by Capital Markets Total Assets Movement YTD (¥bn) Total Liabilities Movement YTD (¥bn) Total Assets Composition (%) +9% +10% Capital Markets 85 6 3 1,201 59 3 3 1,003 2.5% 1,104 3 28 Wholesale 911 Int'l 58.7% 2.9% Re
Slide 21: Outlook & Guidance
Outlook & Guidance Updating 2025 guidance, including the upgrade of full-year profitability outlook Macro-Economic FY 2024 FY 20252 SNB Financial Guidance FY 2024 Baseline 1H 2025 FY 2025 Guidance Status Outlook1 ¥ 715bn Real GDP Growth +2.0% +4.6% Financing Growth ¥ 654bn Low double digit +9% YTD U
Slide 22: Debt profile update
Debt profile update 0 5 SNB
Slide 23: Continued growth and diversification in funding profile
Term Loans, Sukuk and Debt Securities Continued growth and diversification in funding profile Debt Securities, CDs, AT1, Tier 2 and Term Loan Balances (¥bn) 1H 2025 key highlights 137.6 ▪ Expanded SNB’s global funding reach across key markets by strategically timing multi- currency issuances (USD, C
Slide 24: Sustainable finance
Sustainable finance SNB continues to develop its sustainable financing capabilities Continuing to lead and innovate in the sustainable financing space within KSA Term funding portfolio by type Eligible Green and Social loan Portfolio Sustainability Employment 92% Generation 34% $1,771mn Green $3,241
Slide 25: Capital position
Capital position SNB enjoys one of the highest Capital Ratios among regional peers CET 1 and Tier 1 capital ratios CET1 Tier 1 20.6% 20.9% 20.7% 20.2% 19.3% 19.6% 19.1% 19.2% 19.4% 19.2% 18.5% 17.9% 16.9% 17.0% 16.9% 16.4% 15.5% 17.3% 16.0% 16.5% 15.5% 15.1% 15.2% 14.8% 14.7% 14.8% 14.3% 13.2% 13.4%
Slide 26: External Ratings Update
Credit Ratings External Ratings Update Rating Agency Saudi Arabia SNB Ratings SNB Outlook Quotes A Long-term A- “The stable outlook reflects our expectation that SNB will A maintain a solid capitalization while keeping risks S&P A-1 Stable Outlook: Positive Short-term A-2 associated with lending gro
Slide 27: Financial Results Details
Financial Results Details 06
Slide 28: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 9% mainly from financing growth and investments supported by an 14% increase in customers’ deposits Total Assets (¥bn) ¥ (mn) 2Q 2025 4Q 2024 Δ 1Q 2025 Δ +9% Cash & interbank 80,143 63,208 +27% 66,105 +21% 1,124.6 1,171.1 1,201.0 Investments 315,460 2
Slide 29: Financing & Advances
Financing & Advances A 20% increase in Wholesale financing fueled total financing growth YTD; Retail was tempered by offsets in HNW and SRC sale Financing & Advances, Net (¥bn) Financing & Advances, Net Movement YTD (¥bn) 2025 Guidance Low double-digit +9% +9% 706.4 714.8 7.9 0.5 2.4 714.8 637.2 655
Slide 30: Investments
Investments Investments increased by 8% YTD, supported by growth in SGDS, Other fixed income and Funds & equity Investments, Net (¥bn) Investments, Net Movement YTD (¥bn) +8% +8% 310.3 315.5 7.6 3.5 315.5 286.7 290.5 292.5 12.1 29 29 292.5 25 23 26 (0.3) 87 94 94 100 94 162 160 180 187 192 QoQ +1% +
Slide 31: Customers' Deposits
Customers' Deposits Customers’ deposits grew 14% YTD, primarily driven by domestic CASA inflows; this contributed to an improved CASA ratio of 75.9% Customers' Deposits (¥bn) Customers' Deposits Movement YTD (¥bn) +14% +14% 632.7 634.2 626.4 658.7 80.9 2.7 658.7 579.8 26 32 31 26 132 31 134 133 154
Slide 32: Income Statement Highlights
Income Statement Highlights Net income growth driven by revenue uplift, cost discipline and low impairments reflecting strong asset quality ¥ (mn) 2Q 2025 2Q 2024 Δ 1H 2025 1H 2024 Δ Net Income (¥mn) NSCI 7,087 7,052 +0% 14,341 13,964 +3% +17% Fee & other income 2,420 1,864 +30% 4,781 3,892 +23% 6,0
Slide 33: NSCI & Margin
NSCI & Margin 3% YoY NSCI growth from asset expansion… 2025 Guidance Net Special Commission Income Movement YoY (¥bn) Low-to-mid single digit Net Special Commission Income growth Composition, YTD (%) +3% +4% Capital Markets 0.7 Wholesale 1.7% 14.0 13.5 0.4 0.3 14.0 0.3 14.3 36.8% Int'l 0.5 (0.9) 2.5
Slide 34: NSCI & Margin
NSCI & Margin …and declining NSCI Margin YoY Net Special Commission Margin Movement YoY (%) 1 Average Earning Assets (¥bn) +11% 982.7 -21bps 886.7 33 29 280 3.13% 255 0.07% 2.91% 320 0.02% 275 -0.11% -0.04% 328 351 -0.15% 1H 24 1H 25 Retail financing Corporate financing Investments & Placements Int'
Slide 35: NSCI & Margin
NSCI & Margin 2Q 2025 Margin was pressured primarily by higher CoF 1 1 Group NSCI Margin QTR (%) Group, excl Int'l, NSCI Margin QTR (%) 3.08% 3.05% 3.07% 2.92% 3.05% 2.89% 2.98% 2.94% 2.83% 2.79% 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 Group Commission Yield & Funding Cost QTR (%
Slide 36: Fee & Other Income
Fee & Other Income Fee and Other Income growth accelerated, driven by FX, investment income, trade finance and International, partly offset by lower brokerage income Fee & Other Income (¥mn) Fee and Other Income Movement YoY (¥mn) +30% +23% 2,330 2,361 2,420 +19% 2,084 537 4,781 1,864 959 3,892 264
Slide 37: Operating Expenses
Operating Expenses Domestic Operating expenses held steady; both Group and Domestic CIR improved further 1 Operating Expenses (¥mn) Total Operating Expenses, Excl Intangibles Amortization Movement YoY (¥mn) 1 +1% +2% 2,543 2,664 2,548 2,522 2,560 +0% 772 5,081 5,000 4,293 15 136 4,310 768 859 887 79
Slide 38: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk Cost of Risk came in at -4bps, supported by recovery efforts with meaningful inflows from fully provisioned and legacy exposures across both Retail and Wholesale Impairment Charge for Financing and Advances Losses Movement Impairment Charge for Financing a
Slide 39: Credit Quality: NPL Ratio decreasing to 0.81%
Credit Quality Asset quality improved with the NPL Ratio decreasing to 0.81%... Credit Impaired Financing Movement YTD (¥bn) NPL Ratio (%) -24% 2.3 8.1 7.7 1.13% 1.16% 5.8 1.11% 0.91% 1 (1.0) 0.81% (0.8) (0.1) 1.08% 1.09% 1.13% 0.89% 0.78% -45% -16% -21% NPLs Retail Wholesale Int'l NPLs POCI balance
Slide 40: Credit Quality: healthy stage-wise coverage
Credit Quality …with healthy stage-wise coverage ECL Allowance by Stage (¥bn) Total Financing & Advances, Gross by Stage (¥bn) 11.2 11.2 +9% 10.4 9.4 8.6 713.4 721.2 645.5 663.5 662.2 7 6 5 5 8 8 7 19 23 7 27 27 18 6 5 4 4 687 692 611 629 636 1 1 1 3 2 2 2 2 QoQ -0% -7% -9% -9% QoQ +3% -0% +8% +1% 2
Slide 41: Capitalization
Capitalization Capitalization remains strong, supported by solid net income generation and AT1 & T2 issuances, despite robust financing growth and dividends in 1H 2025 Total Eligible Capital (¥bn) Total Eligible Capital Movement YTD (¥bn) 157.9 166.5 +6% 150.2 157.1 146.2 9 4 4 6 6 20 20 18 12.2 1.3
Slide 42: Liquidity
Liquidity Liquidity is strong and stable Stable Funding (¥bn/%) SAMA Loan-to-Deposit Ratio (%) 109.4% 106.6% 106.6% 120.0% 110.4% 112.4% 1,000 761.9 100.0% 695.0 707.3 693.3 730.9 90.0% 800 80.0% 600 84.0% 79.2% 60.0% 78.8% 82.5% 400 40.0% 79.8% 200 20.0% QoQ +2% -2% +5% +4% 0 0.0% 2Q 24 3Q 24 4Q 24
Slide 43: Segmental Review
Segmental Review 0 7 SNB
Slide 44: Domestic (Group, Excl. Int'l)
Domestic (Group, Excl. Int’l) 19% net income before zakat growth YoY on solid revenue and low impairments ¥ (mn) 2Q 2025 2Q 2024 Δ 2Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 1,165,793 1,056,595 +10% 1,165,793 1,072,079 +9% +19% Financing and advances, net 695,276
Slide 45: Retail
Retail 2% net income before zakat growth YoY on higher Fee & other income and low impairments ¥ (mn) 2Q 2025 2Q 2024 Δ 2Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 431,140 420,854 +2% 431,140 428,303 +1% +2% Financing and advances, net 343,192 333,692 +3% 343,192 3
Slide 46: Wholesale
Wholesale 40% net income before zakat growth YoY supported by operating income growth and low impairments ¥ (mn) 2Q 2025 2Q 2024 Δ 2Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 705,139 614,809 +15% 705,139 620,429 +14% +40% Financing and advances, net 348,175 283,51
Slide 47: Capital Markets
Capital Markets Net income before zakat decreased 16% YoY impacted by lower market activity ¥ (mn) 2Q 2025 2Q 2024 Δ 2Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 29,514 20,931 41% 29,514 23,348 26% -16% Financing and advances, net 3,910 2,953 32% 3,910 3,450 13% 1,
Slide 48: International
International 6% net income before zakat contraction impacted by NSCI and Impairments, despite strong Fee & other income growth ¥ (mn) 2Q 2025 2Q 2024 Δ 2Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 35,205 31,517 +12% 35,205 32,075 +10% Financing and advances, net 1
Slide 49: Appendix
Appendix 08 SNB
Slide 50: SNB History
SNB History SNB was founded as NCB in 1953 and then formed through the merger with Samba Financial Group in 2021 Largest Initial Public Offering (IPO) A Beginning In 2014, NCB went public with its benchmark ¥ 22.5bn In 1953, the National Commercial Bank (NCB) was IPO that was the largest the region
Slide 51: Hyperinflation
Hyperinflation Hyperinflationary adjustments came at ¥ 191mn for 1H 2025 Classification of Turkey as a hyperinflationary economy Resulting in hyperinflation adjustments impacting Group net income1 ▪ During 2022, the Turkish economy was identified to be hyperinflationary based Hyperinflation Adjustme
Slide 52: SNB Financial Ratio Definitions
Definitions SNB Financial Ratio Definitions Net Special Commission Income Margin Annualized Net Special Commission Income excluding FV adjustment / Average commission earning assets (NSCI Margin; also known as NIM) Cost to Income Ratio (CIR) Total Operating Expense excluding Amortization of Intangib
Slide 53: Additional Information
Additional Information Write to Us Email Us The Saudi National Bank Tower, Unit No. 778 ir@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 Investor Disclosure
Slide 54: 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