Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q2 2024 Earnings Presentation
18 slides from Saudi National Bank's earnings presentation, Aug 20, 2024
Slide 1: 2Q 2024 Earnings Presentation
2Q 2024 Earnings Presentation Saudi National Bank 20 August 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 continues its growth journey
Saudi National Bank SNB continues its growth journey Aspirations Priorities Focus areas 1H 2024 PERFORMANCE HIGHLIGHTS Value growth in CASA market share Sustained record profitability; delivering 1H 2024 SAR 10.3 bn net income and Value Capture Wholesale attractive returns with 16.3% ROTE. Leadershi
Slide 4: 2Q 2024 Performance Highlights
2Q 2024 Performance Highlights Positive net income growth supported by strong financing momentum and top-line growth, despite headwinds from international volatility Strong financing growth from Wholesale financing and Retail financing, including Mortgage financing SAR bn 637.2 SAR bn 283.5 SAR bn 3
Slide 5: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 5% mainly from financing growth and investments, funded by customers’ deposits and other borrowed funds Total Assets (SARbn) Total Assets Movement YTD (SARbn) 1,037.1 1,072.1 1,088.1 88 +5% 84 85 34.6 2.6 1,088.1 1,037.1 19.3 602 625 637 (0.0) (5.4) 2
Slide 6: Financing & Advances
Financing & Advances Strong growth in Wholesale financing and Retail mortgages Financing & Advances, Net (SARbn) Financing & Advances, Net Movement YTD (SARbn) 2024 Guidance Low double-digit +6% 601.5 625.2 637.2 3 3 2 17 16 17 15.6 5.1 0.8 1.1 637.2 34 33 28 11.7 1.4 251 601.5 235 243 Retail: SAR W
Slide 7: Investments
Investments Investments up 7% primarily in domestic other fixed income Investments, Net (SARbn) Investments, Net Movement YTD (SARbn) 286.7 +7% 269.1 275.6 25 3.0 22 23 13.1 286.7 89 94 100 269.1 3.2 (1.7) 158 160 162 +2% +16% +12% -23% 4Q 23 1Q 24 2Q 24 4Q 23 SGDS1 Other fixed Funds & equity Int'l
Slide 8: Customers' Deposits
Customers' Deposits Normalization of CASA on a sequential basis with a healthy CASA Ratio at 74.2% Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) 656.3 632.7 +7% 590.1 25 32 22 130 22.6 632.7 132 120 21.8 590.1 (0.7) (1.0) 448 501 469 +5% +18% -8% -6% 4Q 23 1Q 24 2Q 24 4Q 23 CA
Slide 9: Income Statement Summary
Income Statement Summary Net income growth driven by higher domestic operating revenue and partially offset by higher operating expenses including impairments Net Income Attributed To Equity Holders Movement YoY (SARmn) Net Income (SARmn) 5,016 5,040 5,231 261 68 +2% +8% 4,972 5,365 4,754 +4% QoQ 61
Slide 10: NSCI & Margin
NSCI & Margin The NSCI margin remained stable on a sequential basis as higher yields offset the growth in funding costs 1 Net Special Commission Income Movement YoY (SARbn) NSCI Margin QTR (%) +5% 3.10% 3.10% +7% 3.09% 1.9 0.7 3.08% 14.0 3.07% 13.3 12.6 1.4 13.6 0.5 3.04% 3.07% 3.08% 0.7 (3.1) 3.03%
Slide 11: Fee & Other Income
Fee & Other Income Fee and other income remained relatively unchanged YoY with accelerated Domestic fee income offset by a decline in International fees Fee & Other Income Movement YoY (SARmn) Fee & Other Income (SARmn) -1% 1,973 2,028 1,866 +21% 209 110 3,925 318 3,894 584 437 3,575 2,960 272 17 (7
Slide 12: Operating Expenses
Operating Expenses Operating expenses up 8% YoY primarily from domestic employee-related costs, depreciation and elevated international costs; Domestic CIR is healthy at 25.2% 1 1 Total Operating Expenses, Excl Intangibles Amortization Movement YoY (SARmn) Operating Expenses (SARmn) +8% 2,545 2,401
Slide 13: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk Cost of Risk moderated to 26bps on a sequential basis 1 Impairment Charge For Financing And Advances Losses Movement Cost of Risk YTD (%) 2024 Guidance 0.3% to 0.5% YoY (SARmn) 0.43% +38% +128% 0.42% 0.27% 478 16 825 0.20% 802 0.16% 0.26% 0.12% (22) 0.13%
Slide 14: 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% 1.34% 2.9 10.1 1.33% 1.30% 1.21% 1.12% 1 -3% 1.17% 1.11% 0.1 1.08% 7.4 1.09% 7.2 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 (0.3) (0.0) Group Group, excl. Int'l Coverag
Slide 15: Capitalization & Liquidity
Capitalization & Liquidity Capitalization remains healthy with slight decrease due to dividend payout, and liquidity is strong and stable Capitalization Ratios (%) 2024 Guidance Total Eligible Capital Movement YTD (SARbn) T1 CAR: 18–19% 20.1% 20.0% +3% 19.8% 19.1% 19.3% 141.7 10.3 146.2 19.1% 19.4%
Slide 16: Outlook & Guidance
Outlook & Guidance Strong first-half financing growth have led us to improve our 2024 guidance Macro-Economic Outlook1 FY 2024 Forecast2 SNB Financial Guidance FY 2023 Baseline 1H 2024 Actual FY 2024 Guidance Status High single-digit SAR 602bn SAR 637bn Real GDP Growth +1.6% Financing Growth +10% +6
Slide 17: Q&A
Q&A 2Q 2024 SNB | 2Q 2024 | Earnings Presentation
Slide 18: 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