Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q3 2024 Earnings Presentation
20 slides from Saudi National Bank's earnings presentation, Nov 4, 2024
Slide 1: 3Q 2024 Earnings Presentation
3Q 2024 Earnings Presentation Saudi National Bank 4 November 2024
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: SNB Overview
SNB Overview Saudi Arabia’s Banking Champion and Financial Powerhouse SNB’s Growth Story continues, with a diversified business model and dominant market position Our Broad Client Base and Dominant Market Position for 2Q 2024 Our Diversified Balance Sheet & Strong Financial Performance Our Robust Cr
Slide 4: 2024 Strategy
2024 Strategy Our 2024 strategic priorities remain intact; Longer term strategy under development with the Board Strategic aspirations Number One Best Best Employer in Revenue & Profits Digital Bank in Customer Service of Choice Strategic priorities Value Capture Operational Innovation Customer Peop
Slide 5: SNB's tactical focus areas for growth and innovation
Current focus areas SNB’s tactical focus areas for growth and innovation Growth in Profitable Innovation and Efficiency Customer-Centric Value Focus on Segments Enhancement People Leverage V2030 and the Kingdom’s Digitization, operating model optimization Enhance customer experience, particularly Su
Slide 6: 3Q 2024 Performance Highlights
3Q 2024 Performance Highlights Net Income growth, fueled by strong financing momentum, robust asset quality, and higher fee income Strong financing growth from Wholesale financing and Retail financing, including Mortgage financing SAR bn 655.3 SAR bn 294.5 SAR bn 339.9 SAR bn 176.5 < < < < +9% YTD +
Slide 7: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 8% mainly from financing growth and investments, funded by customers’ deposits and other borrowed funds Total Assets (SARbn) Total Assets Movement YTD (SARbn) 1,124.6 +8% 1,037.1 1,088.1 88 93 84 52.2 7.7 1.0 1,124.6 22.9 1,037.1 3.8 637 655 602 269 2
Slide 8: Financing & Advances
Financing & Advances Strong growth in Wholesale and Retail mortgages Financing & Advances, Net (SARbn) Financing & Advances, Net Movement YTD (SARbn) 2024 Guidance Low double-digit 637.2 655.3 +9% 601.5 3 3 2 17 18 16 33 35 7.4 1.2 1.6 655.3 28 24.2 251 259 15.2 4.1 235 601.5 Retail: SAR Wholesale:
Slide 9: Investments
Investments Investments up 8% primarily in other fixed income and SGDS Investments, Net (SARbn) Investments, Net Movement YTD (SARbn) 286.7 290.5 +8% 269.1 25 25 1.5 22 14.0 290.5 100 87 7.4 89 269.1 (1.5) 158 162 178 +5% +17% +6% -21% 4Q 23 2Q 24 3Q 24 4Q 23 SGDS1 Other fixed Funds & equity Int'l 3
Slide 10: Customers' Deposits
Customers' Deposits Customers’ deposits increased by 7%, with term deposits surpassing CASA Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +7% 632.7 634.2 590.1 32 31 44.8 634.2 22 120 132 154 590.1 1.0 (0.3) (1.4) 448 469 449 +0% +36% -4% -8% 4Q 23 2Q 24 3Q 24 4Q 23 CASA Time
Slide 11: Income Statement Summary
Income Statement Summary Net income growth driven by higher operating revenue and partially offset by higher operating expenses including impairments Net Income Attributed To Equity Holders Movement YoY (SARmn) Net Income (SARmn) 5,231 5,366 5,010 +4% +7% 5,086 5,365 5,387 +3% 1,105 QoQ 1,276 15,724
Slide 12: NSCI & Margin
NSCI & Margin NSCI is up 3%, while the NSCI Margin declined as the increase in funding costs outpaced the rise in asset yields 1 Net Special Commission Income Movement YoY (SARbn) NSCI Margin QTR (%) +3% 3.10% 3.09% 3.08% 3.10% +7% 2.6 1.1 3.08% 20.2 3.07% 20.1 18.9 1.9 0.6 20.8 3.03% 2.99% 2.94% 1.
Slide 13: Fee & Other Income
Fee & Other Income Fee and other income experienced strong growth, driven by domestic banking service fees and investment-related income Fee & Other Income Movement YoY (SARmn) Fee & Other Income (SARmn) +7% 2,330 +25% 5,829 666 6,224 1,903 1,866 347 737 5,558 4,453 520 411 110 23 (77) 1,376 1,983 1
Slide 14: Operating Expenses
Operating Expenses Operating expenses higher by 7% YoY driven by employee-related costs, depreciation and general and administrative expenses 1 1 Total Operating Expenses, Excl Intangibles Amortization Movement YoY (SARmn) Operating Expenses (SARmn) +7% 2,557 2,545 2,664 +8% 370 451 351 7,196 1,076
Slide 15: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk Cost of Risk improved QoQ to reach 22bps 1 Impairment Charge For Financing And Advances Losses Movement Cost of Risk YTD (%) 2024 Guidance 15 to 25 bps YoY (SARmn) 0.43% +106% 0.42% +265% 0.27% 0.22% 121 1,039 1,034 0.16% 0.26% 0.22% 0.12% (5) 634 0.12% 0.
Slide 16: Credit Quality
Credit Quality Asset quality is stable and NPL ratio maintained close to 1.1% Credit Impaired Financing Movement YTD (SARbn) NPL Ratio (%) 1.37% 3.0 10.5 1.33% 1.21% +1% 1 1.12% 1.11% 1.13% 1.17% 0.6 1.09% 7.4 7.5 1.09% 1.08% (0.5) (0.0) 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 Group Group, excl. Int'l Coverag
Slide 17: Capitalization & Liquidity
Capitalization & Liquidity Capitalization remains healthy, and liquidity is strong and stable Capitalization Ratios (%) 2024 Guidance Total Eligible Capital Movement YTD (SARbn) T1 CAR: 18–19% 20.1% 20.0% +6% 19.3% 19.4% 15.6 3.9 150.2 19.1% 141.7 18.4% 19.4% 19.2% 18.6% 18.5% (10.8) (0.2) 17.3% 16.
Slide 18: Outlook & Guidance
Outlook & Guidance Offsetting guidance changes for COR and CIR leave ROTE expectations reaffirmed Macro-Economic Outlook1 FY 2024 Forecast2 SNB Financial Guidance FY 2023 Baseline 9M 2024 Actual FY 2024 Guidance Status SAR 602bn SAR 655bn Real GDP Growth +0.8% Financing Growth Low double-digit +10%
Slide 19: Q&A
Q&A 3Q 2024 SNB | 3Q 2024 | Earnings Presentation
Slide 20: Additional Information
Additional Information Write to Us The Saudi National Bank Tower, Unit No. 778 Email Us King Abdullah Financial District ir@alahli.com 3208, Al Aqeeq District, King Fahad Road Riyadh, Kingdom Of Saudi Arabia, 13519 - 6676 Visit our website alahli.com Access SNB’s current and previous Investor Disclo