Saudi National Bank · TADAWUL:1180
Saudi National Bank — The National Commercial Bank — Q1 2019 Earnings Presentation
19 slides from Saudi National Bank's earnings presentation, 2019
Slide 1: Earnings Presentation 1Q 2019 Results
The National Commercial Bank Earnings Presentation 1Q 2019 Results 1
Slide 2: Disclaimer
Disclaimer The National Commercial Bank (NCB) prepared this presentation on a proprietary basis as general background information about the activities of NCB. The information contained herein is given in summary form and for discussion purposes only. Some of the information that is relied upon by NC
Slide 3: Strategy Update
Strategy Update 1Q 2019 Results
Slide 4: NCB 1Q 2019 Strategy Update
NCB 1Q 2019 Strategy Update Record Net Income SAR 3.17 bn | Progress on Mortgage | Digital Adoption Continues Expand market share in Increase returns in Sustain Treasury revenues Retail Banking Corporate Banking & diversify funding Financing up 2% YTD Financing stable -0.45% YTD Effective ALM: 7% Mo
Slide 5: Financial Results Highlights
Financial Results Highlights 1Q 2019 Results
Slide 6: Key messages
Key messages 1Q 2019 Results Financing (SARbn) Deposits (SARbn) 3% increase in total assets 600 +1% 800 700 -3% 500 1% Financing growth 600 265 269 400 319 500 Balance 310 5% investments growth 300 400 Sheet 200 300 3% decline in customers’ deposits 100 200 100 CASA ratio at 76% of deposit
Slide 7: Income Statement
Income Statement Higher 1Q 2019 net income derived from higher operating income and lower operating expenses, partly offset by higher impairments Profitability Trends YoY % SAR (mn) 1Q 2019 4Q 2018 1Q 2018 change Net special commission income 3,562 3,741 3,419 +4% Fee and other income 1,391 1,015 1,
Slide 8: Balance Sheet
Balance Sheet 3% YTD increase in total assets from financing and investments. Balance Sheet Trends YoY % YTD % SAR (mn) 1Q 2019 1Q 2018 4Q 2018 change change Investments, net 123,419 113,555 +9% 118,090 +5% Financing and Advances, net 268,657 252,777 +6% 265,317 +1% Total assets 466,348 438,896 +6%
Slide 9: Operating Income Highlights
Operating Income Highlights Higher 1Q 2019 total operating income driven by net special commission income and investment related income Total Operating Income (SARbn) 1Q 19 Total Operating Income Movement (SARbn) 10 3 0.20 0.05 4.95 9 4.78 0.30 Intl. +4% (0.07) 3 0.37 8 7 2 6 4.78 4.76 4.95 5 2 1.36
Slide 10: Net special commission income trends
Net special commission income trends 1Q 2019 net special commission income grew by 4%, despite 61% increase in special commission expenses Net Special Commission Income YoY % SAR (mn) 1Q 2019 4Q 2018 1Q 2018 change Special commission income 4,863 4,936 4,228 +15% Special commission expense (1,302) (
Slide 11: Fee and other income trends
Fee and other income trends Higher 1Q 2019 Investment income partially offset by lower fees and exchange income, Fee and Other Income (SARmn) 3,300 2,800 +2% 2,300 1,800 1,361 1,391 359 1,015 450 48 1,300 262 246 240 Fee Income 800 852 819 788 YoY % SAR (mn) 1Q 2019 4Q 2018 1Q 2018 change 300 (200)
Slide 12: Expense highlights
Expense highlights Digitization, productivity enhancement and optimization delivered expense savings in 1Q 2019 Operating Expenses (SARmn) 3,500 3,000 -3% 2,500 1,668 1,618 2,000 1,475 400 408 1,500 156 348 193 144 213 1,000 154 90 500 919 829 907 0 1Q 18 4Q 18 1Q 19 Employee-related Rent & premises
Slide 13: Financing and advances credit quality
Financing and advances credit quality YTD NPLs have fallen, particularly in the manufacturing sector NPL (SARbn) Movement NPLs by Economic Sector (SARbn) 9 -6% 1 5.25 8 7 5.25 1 6 4.72 4.75 5.06 4.95 (0.02) (0.00) 5 1.03 1.23 1.12 0 1.40 1.26 0.52 0.62 4 0.54 0.59 0.02 4.95 3 0.53 0 2.80 2.94 3.51 3
Slide 14: Financing and advances credit quality
Financing and advances credit quality Stable NPL ratio and higher NPL coverage NPL Ratios (%) NPL Coverage Ratios (%) 5.3% 5.5% 192% 5.2% 185% 2 0 5.1% 4.8% 2 170% 164% 157% 0 2 0 165% 2 161% 0 154% 145% 1 1.8% 1.7% 1.8% 1.9% 1.8% 142% 1 0 1 0 1.6% 1.6% 1.5% 99% 96% 93% 1.4% 1.4% 1 90% 0 83% 1 Domes
Slide 15: Domestic financing and advances credit quality
Domestic financing and advances credit quality Corporate and Consumer NPL ratios have improved NPL Ratios (%) NPL Coverage Ratios (%) 0 2.5% 2.5% 2.4% 4 0 2.2% 2.2% 298% 305% 288% 279% 3 0 264% 0 3 0 0 2 170% 164% 0.5% 0.5% 0.5% 0.6% 0.5% 149% 0 136% 141% 2 (0) Corporate Consumer and credit card Cor
Slide 16: Outlook Update
Outlook Update 1Q 2019 Results
Slide 17: Outlook Update
Outlook Update Improved macroeconomic environment expected to drive growth 2019 Macroeconomic FY 2018 1Q 2019 FY 2019 FY 2019 Outlook Reported Reported Guidance Outlook Balance Financing Sheet 6% +1% 4% to 6% Within guidance Average Arabian light oil price of growth USD 65 per barrel No US Fed r
Slide 18: Additional Information
Additional Information 1Q 2019 Results
Slide 19: Additional Information
Additional Information Please don’t hesitate to contact NCB Group Investor Relations Mr. Abdulbadie Alyafi More information Head, Investor Relations Download copies of National Commercial Bank’s: +966 12 646 3988 Financial statements investorrelations@alahli.com Earnings release Investor presentatio
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