Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q4 2023 Earnings Presentation
19 slides from Saudi National Bank's earnings presentation, Feb 14, 2024
Slide 1: 4Q 2023 Earnings Presentation
4Q 2023 Earnings Presentation Saudi National Bank Riyadh | 14 February 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: 2023 was a record year
2023 Review 2023 was a record year From successful execution, hitting new milestones While meeting or exceeding financial guidance Metric FY 2023 Actual FY 2023 Guidance Status NOR 35bn Net Income 20bn Total Assets 1tr+ Financing Growth +10% Low double-digit To delivering on strategic priorities NSC
Slide 4: 4Q 2023 Performance Highlights
4Q 2023 Performance Highlights Robust net income from increased solid financing growth and healthy credit quality Solid financing growth from Wholesale financing and Retail financing, including Mortgage financing SAR Bn 601.5 SAR Bn 262.6 SAR Bn 320.6 SAR Bn 161.3 +10% YoY +13% YoY +9% YoY +13% YoY R
Slide 5: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 10% mainly from financing, cash & interbank and investments, funded by interbank and deposits Total Assets (SARbn) Total Assets Movement YoY (SARbn) 1,027.1 1,037.1 945.5 +10% 86 84 84 57.0 0.9 1,037.1 22.9 11.4 596 602 945.5 545 (0.5) 258 267 269 58
Slide 6: Financing & Advances: solid, broad-based financing expansion
Financing & Advances Solid, broad-based financing expansion Financing & Advances, Net (SARbn) Financing & Advances, Net Movement YoY (SARbn) 2023 Guidance Low double-digit 595.7 601.5 545.3 2 2 +10% 2 16 16 17 7.3 601.5 22.6 262 263 233 18.8 8.3 545.3 (0.1) (0.8) Retail: SAR Wholesale: SAR 293 316 3
Slide 7: Investments up 4% primarily in other fixed income
Investments Investments up 4% primarily in other fixed income Investments, Net (SARbn) Investments, Net Movement YoY (SARbn) 258.3 266.8 269.1 +4% 24 25 26 45 44 9.6 269.1 58 258.3 2.0 (0.3) (0.5) 198 200 175 +1% +13% -1% 4Q 22 3Q 23 4Q 23 4Q 22 SGDS1 Other fixed Funds & equity Int'l 4Q 23 income Fi
Slide 8: Deposits: CASA growth of 5%
Deposits CASA growth of 5%, with CASA ratio improving QoQ on lower domestic time deposits in 4Q 2023 Customers' Deposits (SARbn) Customers' Deposits Movement YoY (SARbn) 624.8 568.3 590.1 +4% 23 24 22 146 117 120 21.6 2.0 590.1 568.3 (0.1) (1.6) 428 456 448 +5% -0% -17% +13% 4Q 22 3Q 23 4Q 23 4Q 22
Slide 9: Income Statement Summary
Income Statement Summary Net income rose 8% YoY from higher operating income and lower risk cost Net Income Attributed To Equity Holders Movement YoY (SARmn) Net Income (SARmn) 5,010 4,963 +8% 4,765 763 863 20,010 4,777 5,085 5,000 (118) 722 (204) -1% (597) QoQ 18,581 (12) (76) (37) Operating income
Slide 10: NSCI & Margin
NSCI & Margin NSCI growth of 3% from earning assets expansion partly offset by margin moderation from shift in funding mix Net Special Commission Income Movement YoY (SARbn) Commission Yield & Funding Cost YTD (%) +3% 5.58% 5.69% 5.35% 5.44% 5.93% +5% 5.67% 26.3 25.3 3.3 8.5 3.0 26.5 0.5 27.0 4.94%
Slide 11: Fee & Other Income
Fee & Other Income Fee and other income increased 13% YoY from higher international income, partially offset by lower fees from banking services generated domestically Fee & Other Income Movement YoY (SARmn) Fee & Other Income (SARmn) +13% 1,917 1,738 938 7,580 411 480 1,342 147 6,717 18 103 (313) (
Slide 12: Operating Expenses
Operating Expenses Operating expenses up 7% YoY from increased International costs impacted by hyperinflation while domestic costs rose 1% 1 1 Operating Expenses Movement YoY (SARmn) Operating Expenses (SARmn) +7% 2,557 2,340 2,159 491 9,537 451 392 277 8,940 97 84 (1) (75) 2,106 1,881 1,949 -8% QoQ
Slide 13: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk 17bps reduction in COR from Wholesale recoveries 1 Impairment Charge For Financing & Advances Movement YoY Cost of Risk YTD (%) 2023 Guidance 0.1% to 0.3% (SARmn) -48% 0.35% 0.33% 1,746 0.27% 0.29% 0.20% 0.12% 0.16% 0.12% 0.13% 0.07% FY 22 1Q 23 1H 23 9M 2
Slide 14: Credit Quality
Credit Quality Improving NPL ratio YoY from write-offs in Wholesale, while NPL coverage remained healthy Credit Impaired Financing Movement YoY (SARbn) NPL Ratio (%) 1.62% 3.2 10.5 -18% 1.59% 1.36% 1.34% 1.37% 0.3 9.0 1 1.33% 1.21% 1.30% 1.30% 1.17% 7.4 (1.9) (0.1) 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 Grou
Slide 15: Capitalization & Liquidity
Capitalization & Liquidity Capitalization remains healthy, and liquidity is strong and stable Capitalization Ratios (%) 2023 Guidance Total Eligible Capital Movement YoY (SARbn) T1 CAR: 18–19% 19.8% +7% 19.3% 19.1% 20.1% 19.4% 20.0 19.0% 132.6 141.7 18.3% 19.1% 18.6% 18.4% (7.8) (1.2) 17.3% (1.1) (0
Slide 16: 2024 Strategy
2024 Strategy Our 2024 strategic priorities are focused on sustainable value creation Strategic priorities Value Capture Operational Digital Employer of Leadership Excellence Dominance Choice Customer Centricity Strategic focus areas Value growth in Wholesale Cost efficiencies Build best-in-class ap
Slide 17: Outlook & Guidance
Outlook & Guidance Execution focused strategy and positive economic outlook supportive of solid growth and superior returns for 2024 Macro-Economic Outlook1 FY 2023 Actual FY 2024 Forecast2 SNB Financial Guidance FY 2023 Actual FY 2024 Guidance SAR 602bn Real GDP Growth +0.03% +4.4% Financing Growth
Slide 18: Q&A
Q&A 4Q 2023 SNB | 4Q 2023 | Earnings Presentation
Slide 19: Additional Information
Additional Information Write to Us Visit our website The Saudi National Bank Tower, Unit No. 778 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 Corporate Rep