Saudi National Bank · TADAWUL:1180
Saudi National Bank — The National Commercial Bank — FY2020 Earnings Presentation
24 slides from Saudi National Bank's earnings presentation, May 9, 2021
Slide 1: Earnings Presentation 4Q & FY 2020 Results
The National Commercial Bank Earnings Presentation 4Q & FY 2020 Results
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: Key Messages
Key Messages Solid financial performance within guidance; effective Covid- 19 response and rigorous focus on strategic execution Operating Income 2020 Performance Net Income (SAR bn) Financing, net (SAR bn) Current Accounts (SAR bn) (SAR bn) 282 347 319 21,458 11,440 251 +4% +0.3% +23% +27% 2019 202
Slide 4: 2020 Financial Performance
2020 Financial Performance Stable net profit despite Covid-19 impacts Net Income after Zakat and Income Tax attributed to Equity Holders Operating Income (SARmn) (SARmn) 7,800 5,577 5,305 4,766 5,638 5,749 +0.3% 5,800 3,800 7,000.00 1,800 (200) 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 6,000.00 579 304 Net inco
Slide 5: Strategy Dashboard
Strategy Dashboard Progress update on key 2020 strategy metrics Asset Deployment Retail Corporate Treasury Subsidiaries Grow Mortgages Improve Returns Sustain Investment Returns Grow Value Contribution Mortgage Growth Financing Growth (Corporate) NSCI (Treasury) TFKB NI & C/I (TRY) +99% +3% +16% +79
Slide 6: NCB and Samba Merger
NCB and Samba Merger Forming a New Saudi Banking Champion & Regional Powerhouse Two leading banks with complementary strengths and leading market positions across all key metrics, enabling social and economic prosperity and propelling the Kingdom towards achieving Vision 2030. A new Saudi banking Th
Slide 7: 2020 Financial Highlights
2020 Financial Highlights Resilient performance; healthy returns; strong asset growth, capitalization & liquidity; stable credit quality Total Assets Net Income ROA T1 Capital Ratio Cost to Income Ratio (SAR bn) (SAR bn) 30.6% 30.3% 2.1% -31 bps 599.4 +18% 19.3% +1.4% 11,440 +0.3% -33 bps 2019 2020
Slide 8: Asset Deployment
Asset Deployment Strong balance sheet growth from financing and investments Movement in Assets (SARbn) Total Assets Composition (SARbn) 70% 1,000 +18% 60% 507 29 599 37 50% 900 62 70 134 145 40% 800 30% 282 347 20% 700 10% 10.8 8.5 2.6 5.9 599.4 64.9 0% 600 506.8 4Q 19 4Q 20 500 Financing, net Inves
Slide 9: Financing, net
Financing, net Strong mortgage growth leads broad based 23% financing expansion Movement in Financing (SARbn) Retail (SARbn) 174 200 159 138 123 180 140 +23% 160 130 140 120 100 80 2.8 346.7 2020 Guidance 60 6.5 120 40 4.4 ~ +20% 20 14.6 0 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 100 36.5 Corporate (SARbn) 80
Slide 10: Investments
Investments Investment portfolio increased 8% from continued participation in SGSs; portfolio is 85% investment grade Movement in Investments (SARbn) Investments by Credit Grade 120 (SARbn) Equity & others +8% 7% 200 180 134 145 Saudi Government 100 160 140 Non- 120 100 securities 80 60 investment 4
Slide 11: Funding
Funding Balance sheet growth funded mainly by strong 18% domestic deposit growth Movement in Funding (SARbn) Total Liabilities Mix (SARbn) Other Interbank 250 +18% 5% 15% 600 437 519 500 Debt 400 300 10.9 599.4 0.3% 200 100 5.1 200 0 12.8 0.8 63.6 5.1 4Q 19 4Q 20 1.0 0.4 150 (5.8) (1.3) Customers' d
Slide 12: Net Income
Net Income Net income stable; healthy ROE and ROA on profitable deployment of equity and assets Net Income after Zakat and Income Tax attributed to Equity Holders ROE (%) (SARmn) 1 0 0 -163 bps 8,000.00 +0.3% 0 0 0 18.5% 16.8% 0 0 7,000.00 0 0 6,000.00 579 0 FY 19 FY 20 304 11,401 61 11,440 5,000.00
Slide 13: NSCI and Margin
NSCI and Margin Net special commission income grew 2% YOY Movement in Net Special Commission Income (SARmn) & NSCI Margin (%) NSCI margin 4.1% 0 2020 3.7% 12,000 0 3.4% 3.4% 3.4% 3.91% +2 bps -58 bps -1 bps -18 bps +17 bps +16 bps -0 bps -3 bps 3.46% Guidance 3.4%-3.6% 2.2% 0 1.8% 1.1% 0 10,000 0 0.
Slide 14: Fee & Other Income
Fee and other income increased from improved investment Fee & Other Income management and brokerage income, and increase in exchange income and investment-related income Fee and Other Income Movement (SARmn) Fee from banking services (SARmn) * 1,200 7,000 +14% 682 1,000 800 498 498 555 525 600 6,000
Slide 15: Operating Expenses
Operating Expenses Modest increase in operating expenses; improved cost to income ratio back at 2019 levels Operating Expenses Movement (SARmn) Cost to Income Ratio (YTD %) 6,000 0 5,000 +3% 0 2020 Guidance 178 6,497 31.9% 32.0% 4,000 6,299 35 < 33% 719 727 International 30.9% (0) (15) 30.6% 30.3% 0
Slide 16: Cost of Risk for Financing
Cost of Risk for Financing Increase in impairments from Covid-19 related adjustments and impacts Movement in Impairments (SARmn) Group 0 2020 0 0 0 Guidance 0.8% 0 < 0.8% 3,500 0.7% 0.6% 0 0 0.5% 0.6% 35% 0 FY 19 1Q 20 1H 20 9M 20 FY 20 3,000 Retail 0 0 2,500 0.4% 0.3% 0.3% 43 0 893 1,950 0 0.2% 0 0
Slide 17: Credit Quality
Credit Quality Healthy credit quality despite Covid-19 impacts in corporate; stable coverage including sustained improvement in international Movement in NPLs (SARmn) Group 0 200% 190% 0 180% 0 1.8% 1.7% 1.8% 1.7% 1.7% 170% +15% 160% 9,000 0 150% 140% 140% 141% 143% 143% 0 138% 130% 0 120% 8,000 4Q
Slide 18: Financing and Advances Credit Quality
Financing and Advances Healthy and stable stage-wise NPL coverage Credit Quality Financing & Advances, Gross (SARbn) Loss Allowance for Financing & Advances (SARmn) 600 14,000 12,000 8,791 500 355 6 289 10,000 7,426 7,362 5 400 272 5 4,536 8,000 18 3,762 300 17 6,000 4,065 12 200 332 255 267 4,000 1
Slide 19: Capital & Liquidity
Capital & Liquidity Capital position comfortably above regulatory minima; strong liquidity profile maintained Capital Ratios (%) NSFR Ratio (%) 582 2 482 2 0 2 124.4% 122.7% 382 1 117.1% 120.0% 121.2% 282 1 20.3% 182 0 1 82 1 19.2% 2020 19.0% T1 Guidance 1 (18) 18.7% 0 > 18% 4Q 19 1Q 20 2Q 20 3Q 20
Slide 20: Strategy Dashboard
Strategy Dashboard 2021 strategy - rigorous execution and focus on mortgage, digitization, non-financing revenues and merger NCB-SAMBA Merger Asset Deployment New Saudi Banking Champion Retail Corporate Treasury Subsidiaries Create Regional Financial Powerhouse Grow Financing Manage for Value Sustai
Slide 21: 2021 Guidance
2021 Guidance Economic recovery provides opportunities; mortgage momentum partially offset by expected corporate repayments Macro-Economic Outlook* NCB Financial Guidance** 2021 Outlook FY 2020 Reported 2021 Guidance Oil Price USD 50 / bbl Financing Growth +23% High Single Digit US Fed Rates Stable
Slide 22: Q&A Session
Q&A SESSION 4Q 2020 Results 22
Slide 23: Additional Information
ADDITIONAL INFORMATION 4Q 2020 Results 23
Slide 24: NCB Contacts
NCB Contacts NCB welcomes your feedback and inquiries Contact Us More Information The National Commercial Bank Visit: http://www.alahli.com/en-us/Investor_Relation P.O. Box 3555 to access NCB’s current and previous Investor Publications including: 21481 Jeddah, Kingdom of Saudi Arabia Financial st
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