Saudi Investment Bank · TADAWUL:1030
Saudi Investment Bank — The Saudi Investment Bank — 9M 2024 Earnings Presentation
26 slides from Saudi Investment Bank's earnings presentation, Nov 11, 2024
Slide 1: Earnings Presentation 9M 2024
Earnings Presentation 9M 2024 11 November 2024 The Saudi Investment Bank – 3Q 2024 Earnings Presentation P. 1
Slide 2: Contents
Contents 9M 2024 Performance Highlights 3 Strategy 4 Financial Performance 10 2024 Guidance 22 Q&A 24 Appendix 25 The Saudi Investment Bank – 3Q 2024 Earnings Presentation P. 2
Slide 3: Growth momentum sustained in 9M 2024 demonstrating solid progress
Growth momentum sustained in 9M 2024 demonstrating solid progress Loans Deposits Loan growth of 18% YTD driven by corporate segment, while deposits grew 18% +18% YTD +18% YTD YTD on higher time deposits The growth in operating income was underpinned by 17% YoY growth in assets, and SAR 94.9 bn SAR
Slide 4: Strategy
Strategy The Saudi Investment Bank – 3Q 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: Strategic priorities and initiative themes for each function
…which is translated into strategic priorities and initiative themes for each function Corporate Public Consumer Private Banking Institutions Banking Banking • Identify growing client segments; • Identify target public institution types • Review client segments in line with • Redesign all key client
Slide 7: Implementation of Strategy 2027 is in full swing
Implementation of Strategy 2027 is in full swing в Each function has progressed well on strategic projects Bank-wide transformation 1 Corporate Banking identified contracting business clients as a growing segment and launched dedicated 45+ strategic cross-functional projects team to target it initia
Slide 8: SAIB Venture Studio is operational and its first product, SAIB Travel App, has grown rapidly
SAIB Venture Studio is operational and its first product, SAIB Travel App, has grown rapidly since pilot launch SAIB Venture Studio.. SAIB Travel App has received top ratings on App Store and Google Play ... A start-up or venture factory 200,000+ 120,000+ supported by significant investment appetite
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 ROTE 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 9M 2024
Financial Performance 9M 2024 The Saudi Investment Bank – 3Q 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 9M 2024 DRIVERS LOANS & ADVANCES SAR 94.9bn +18% YTD Strong growth in Corporate (+19%) and Private Banking (+23%) loans Balance Sheet DEPOSITS SAR 98.1bn +18% YTD Strong growth in IBDs (+25%) 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 16% YTD as loans grew 18% and investments rose 25%, which were partially offset by decreased balances with SAMA (-13%) and a reduction in Loans & Advances (SARbn) Retail Corporate Other bank placements (-14%) 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 18% YTD growth in loans driven by 19% 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% YTD driven by acquisition of high-quality, fixed-rate debt securities
Investments grew 25% YTD driven by acquisition of high-quality, fixed-rate debt securities Increase in investments during 9M 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 18% YTD mainly driven by IBDs
Customer deposits increased 18% YTD mainly driven by IBDs Deposits grew 18% during 9M 2024, mainly due to increase in interest-bearing deposits Deposits by Segment (%) Corporate deposits increased by 48%, while Retail +3% Deposits QoQ deposits were up 23% YTD;. IBDs rose 25% YTD from large inflows
Slide 16: 10% growth in 9M 2024 earnings driven by increased operating income
10% growth in 9M 2024 earnings driven by increased operating income Net income increased 10% YoY in 9M 2024 driven by 4% growth in operating income, further aided by positive operating leverage from a modest 4% increase in operating Total Operating Income Movement YoY (SARmn) expenses and 16% decrea
Slide 17: NSCI grew 1% YoY as earning assets growth was offset by NIM contraction
NSCI grew 1% YoY as 15% growth in average earning assets was mostly offset by a 34bps NIM contraction NSCI grew 1% YoY as 15% growth in average earnings NIM NIM Asset yield CoF Average Earning Assets (SARbn) Consumer loans assets for 9M 2024 and was mostly offset by NIM 2.66% Corporate & other loa
Slide 18: Growth in fee and other income of 29%
Growth in fee and other income of 29% driven by investment income and banking services fees Fee & other income increased 29% YoY in 9M 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: Moderate growth in operating expenses
Moderate growth in operating expenses Operating expenses increased 4% YoY in 9M 2024, Operating Expenses Composition Operating Expenses (SARmn) mainly due to increases in general & administration and employee-related expenses (%) - 9M 24 Premises costs declined as a previously rented facility was ac
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 210 mn for 9M 2024, Impairments (SARmn) Impairment for loans Cost of Risk decreasing 16% YoY from SAR 248 mn in 9M 2023 Cost of risk decreased to 0.31% in 9M 2024 Non-performing loans ratio decreased by 9 bps YTD to
Slide 21: Solid liquidity, funding and capital position with adequate buffers
Solid liquidity, funding and capital position with adequate buffers LCR declined by 27.8 ppt during 9M 2024 to 168.0%, Liquidity Ratios LCR NSFR Loans to Deposits Ratio SAMA LTD Headline LTD while NSFR decreased 2.6 ppt to 110.5% As of 9M 2024, the SAMA regulatory LTD ratio was 97.0% 95.7% 95.1% 96.
Slide 22: 9M 2024 Results and 2024 Guidance
9M 2024 Results and 2024 Guidance The Saudi Investment Bank – 3Q 2024 Earnings Presentation P. 22
Slide 23: 9M 2024 financial performance mostly in line with expectations; FY guidance
9M 2024 financial performance mostly in line with expectations with only minor refinements to FY Guidance 2023 Actual 9M 2024 Actual 2024 GUIDANCE GUIDANCE REVISIONS Balance Sheet LOANS & ADVANCES +17% +18% > >20% 15.0% Revised upwards to >20% from high teens considering strong 18% YoY YoY YTD growt
Slide 24: Q&A
Q&A The Saudi Investment Bank – 3Q 2024 Earnings Presentation P. 24
Slide 25: Appendix
Appendix The Saudi Investment Bank – 3Q 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
The Saudi Investment Bank — 9M 2024 Earnings Presentation on 6ix