Saudi Investment Bank · TADAWUL:1030
Saudi Investment Bank — The Saudi Investment Bank — H1 2023 Earnings Presentation
30 slides from Saudi Investment Bank's earnings presentation, Aug 9, 2023
Slide 1: The Saudi Investment Bank Earnings Presentation 1H 2023
© dotiulll Gageull =Lill The Saudi Investment Bank Earnings Presentation 1H 2023 9 August 2023
Slide 2: Contents
Contents Overview 3 Strategy i Financial Performance 411 2023 Guidance 24 Appendix 27 ‘The Saudi Investment Bank-2@ 2023 Earnings Presentation P.2
Slide 3: Overview
Overview ‘The Saudi Investment Bank-2Q 2023 Earnings Presentation P.3
Slide 4: Strong corporate and private banking franchise with well capitalized balance sheet
Strong corporate and private banking franchise with well capitalized balance sheet } Total assets Number of branches % of Digital transactions Credit ratings +13% YTD Unchanged YTD Unchanged YTD S&P / Fitch / Moody’s 123.6 SAR bn A 51h 99.6% > BBB/A-/A3 Total Assets by Segment (%) Key financial metr
Slide 5: Robust financial performance with double digit net profit growth and improved profitability
Robust financial performance with double digit net profit growth and improved profitability Total Operating Income asmence 3,265 2,713 2,818 2,846 2,753 2018 2019 2020 2021 2022 NIM 2.57% 2.52% 2.59% 2.92% 2018 2019 2020 2021 2022 Operating Expenses | 40% CAGR 1,433 4,133 234 -1,214 1,270 2018 2019
Slide 6: Resilient asset quality, adequate capital and liquidity position to accelerate growth and returns
Resilient asset quality, adequate capital and liquidity position to accelerate growth and returns Loans & Advances 59.4 57.1 554 57.8 2018 2019 2020 2021 2022 NPL Ratio 3.99% 04% 1.86% 1.76% 1.57% 2018 2019 2020 2021 2022 Deposits 63.7 69.1 . 69.6 2018 2019 2020 2021 2022 Capital Ratios OT 204 matin
Slide 7: Strategy
Strategy ‘The Saudi Investment Bank-2Q 2023 Earnings Presentation P.7
Slide 8: SAIB well positioned to deliver faster bottom line growth than KSA system
SAIB well positioned to deliver faster bottom line growth than KSA system Loans by segment- 1H 2023 HCorporate “Retail [ Other 2% | 0% 93% 3% 18% 25% | 25% | 26%|| 3594, 53% 53% 74% 82% , 5% |} 75% [f72% I a, 44% 44% 26% BSF SAB ALINMA SAIB RIYAD SNB RAJHI KSA SAIB well positioned to increase corpor
Slide 9: Bold strategy to accelerate profitable growth through differentiated value proposition
Bold strategy to accelerate profitable growth through differentiated value proposition and increased product penetration ci Strategic Objectives Private Bankin Revisit segmentation & coverage * Serve large corporates and mid-market through differentiated coverage + Enhance cross-sell capabilities an
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Slide 11: Financial Performance
Financial Performance 1H 2023 ‘The Saudi Investment Bank-2Q 2023 Earnings Presentation Pat
Slide 12: Growth momentum sustained in 1H 2023 demonstrating solid progress
Growth momentum sustained in 1H 2023 demonstrating solid progress } Loans Deposits Loan growth of 12% YTD driven by corporate segment while deposits grew 19% 412% YTD 419% YTD YTD on higher time deposits Double digit growth in operating income underpinned by 13% YTD growth in assets SAR 77.3 bn & SA
Slide 13: Growth across assets, funded largely by increase in deposits
Growth across assets, funded largely by increase in deposits Total assets increased by 13% YTD as loans grew 12% and investments rose 13%, further supported by increase in SAMA and bank placements Total liabilities increased 16% YTD, mainly driven by growth in deposits of 19% YTD Total equity was st
Slide 14: Loan growth continues to gain momentum driven by corporate lending
Loan growth continues to gain momentum driven by corporate lending 12% YTD growth in loans driven by 17% increase in corporate lending Active participation in syndicated loan market for infrastructure projects, well supported by demand from other key sectors such as commerce, building & construction
Slide 15: Investments grew 13% YTD driven by debt securities
Investments grew 13% YTD driven by debt securities 96% of investments were fixed rate debt securities as of 1H 2023 64% of investments were accounted for at fair value through other comprehensive income and 35% at amortized cost High-grade investment portfolio with 61% of investment securities issue
Slide 16: Customer deposits increased 19% driven by IBDs
Customer deposits increased 19% driven by IBDs © Deposits grew 19% YTD during 1H 2023 mainly driven by increase in interest-bearing deposits IBDs rose 29% YTD from large inflows to time deposits +19% depositsvto amid higher interest rate environment Deposits by segment (%) NIBDs increased 7% YTD dri
Slide 17: 40% growth in 1H 2023 earnings driven by net special commission income
40% growth in 1H 2023 earnings driven by net special commission income Net income increased 40% YoY in 1H 2023 driven by strong growth of 31% in operatingincome, partially offset by an increase of 21% in operating expenses and a rise of 76% in impairment charges Net income during 2Q 2023 rose 38% Yo
Slide 18: Net special commission income driven by balance sheet growth and margin improvement
Net special commission income driven by balance sheet growth and margin improvement © Net special commission income growth of 35% YoY NSCI Movement YoY (SARmn) was underpinned by growth in average earnings assets as well as increase in benchmark rates Large part of NSCI growth came from corporate 43
Slide 19: NIM improved 40bps YoY on higher yields
NIM improved 40bps YoY on higher yields Net interest margin improved 40 bps YoY during 1H 2023, reflecting higher asset yield Asset yield increased by 2.75 ppts YoY in 1H 2023 while of cost of funding increased by 2.59 ppts Average Earning Assets (SARbn) Consumer loans Investments NIM also increased
Slide 20: Growth in fee and other income driven by foreign exchange and investment income
Growth in fee and other income driven by foreign exchange and investment income © Fee & other income increased 7% YoY in 1H 2023, Fee & Other Income Movement YoY (SARmn) mainly driven by foreign exchange and investment income transaction volumes in travel card and remittance 13 products 228 19 244 I
Slide 21: Operating expenses increased by 21% as the bank embarks on its transformation journey
Operating expenses increased by 21% as the bank embarks on to its transformation journey © and execution of strategic initiatives Operating expenses increased 21% YoY in 1H 2023, mainly due tb neteaee in employee welated costs'ane Operating Expenses Composition Operating Expenses Before Impairments
Slide 22: Credit quality improved further with NPL ratio at historically low levels
Credit quality improved further with NPL ratio at historically low levels Total impairments increased 76% YoY in 1H 2023 mainly due to a one-off recovery in 1H 2022 Cost of risk at 0.43% in 1H 2023 remained low Non-performing loans ratio decreased by 14bps YTD to reach 1.43%, lowest level in the las
Slide 23: Solid liquidity, funding and capital position with adequate buffers
Solid liquidity, funding and capital position with adequate buffers LCR declined by 15.2ppts during 1H 2023 to 204.7%, while NSFR moderated 3.8ppts to 110.8% As of 1H 2023, the SAMA regulatory LTD ratio was within required levels at 75.6% Total capital (Tier 1 + Tier 2 regulatory capital) declined m
Slide 24: 2023 Guidance
2023 Guidance ‘The Saudi Investment Bank-2Q 2023 Earnings Presentation P.24
Slide 25: 2023 Guidance and Outlook
2023 Guidance and Outlook Balance Sheet Profitability Asset Quality Capital 20224 9 LOANS & ADVANCES +19% YoY 9 NET INTEREST MARGIN 2.92% +33bps YoY COST TO INCOME 43.9% RATIO -2.5ppt YoY RETURN ON TANGIBLE 9.9% EQUITY +3.0ppt YoY 9 COST OF RISK 0.25% -17bps YoY 9 TIER 1 RATIO. 17.6% -2.5ppt YoY 1H
Slide 26: Q&A
Q&A ‘The Saudi Investment Bank-2@ 2023 Earnings Presentation P.26
Slide 27: Appendix
Appendix ‘The Saudi Investment Bank-2Q 2023 Earnings Presentation P.27
Slide 28: Strong operating performance across segments
Strong operating performance across segments Total Operating Income Movement YoY (SARmn) Net Income Before Zakat Movement YoY (SARmn). 213 0 4,490 81 186 | (21) 1H 22 Retail © Corporate Treasury AssetMgmt. Other GInv. & Brokerage Loans & Advances Movement YTD (SARbn) 68.9 0.2 62 | (0.0) FY 22 Retail
Slide 29: Segmental breakdown
Segmental breakdown } Total Operating Income (SARmn) Retail “Corporate Net Income Before Zakat (SARmn) Retail | Corporate Treasury & Investment [Asset Mgmt. & Brokerage Treasury & Investment 1 Asset Mgmt. & Brokerage Other Other (429% 432% 989 671 858 917 960 768 = 38 =s51 = 56 = 17 475 516 == 44 =
Slide 30: The Saudi Investment Bank
© dotiulll Gageull =Lill The Saudi Investment Bank 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
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