Saudi Awwal Bank · TADAWUL:1060
Saudi Awwal Bank — FY2023 Earnings Presentation
25 slides from Saudi Awwal Bank's earnings presentation, 2024
Slide 1: Saudi Awwal Bank 2023 Results & Strategy update
Saudi Awwal Bank 2023 Results & Strategy update
Slide 2: CEO's key 2023 messages
CEO's key 2023 messages Xd Sis
Slide 3: Key messages
4023 Key messages es ee ee 2) es | ee © Strategy on track @ Akey player in the Vision 2030 giga-programmes @ Delivered strong loan growth of 18% during 2023 @ 27% growth in mortgage portfolio @ Leading market position in off-balance sheet trade assets with 23% market share 18% 23% Net loan Trade mar
Slide 4: 2023 financials
2023 financials Our financial performance during 2023 — a standout year where investment in the business continues whilst delivering RoTE expansion % - i oa [~ Jail f- SAB 4
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Slide 6: Revenue
Revenue We grew annual revenues by over SAR3bn or 32% and quarterly revenues delivering SAR3.2bn; actions taken to protect revenue base in a falling rate environment Revenue by busines: Other MM Capital markets MM Treasury Mi wes Ml ciB Quarterly revenue continues to exceed post- pandemic levels 1,9
Slide 7: NSCI and non-funds revenue
NSCI and non-funds revenue Quarterly NSCI continues to build as volume growth more than offsets the marginal decline in NIMs; over SAR10.3bn of NSCI delivered in 2023 NSCI, SARm and Average interest earning assets, SARbn Non-funds income, SARbn PV unwind Ill NSCI excl. PV unwind <> Average interest
Slide 8: Costs
Costs 2023 costs have increased 12% compared with 2022, and up 2% QoQ; CER ratio of 32.4% remains within the improved guidance range Recent cost trend, SARm 41 863 881 2023 vs. 2022 costs, SARm 1022 2022 3022 4022 + Higher staff costs as we invest in our employees and as we move further through our
Slide 9: Purchased or originated credit impaired
Purchased or originated credit impaired 102 45 47 27 24 27 28 27 9 8
Slide 10: Customer lending and trade assets
Customer lending and trade assets High-teens lending growth and increased market share across both corporate and retail segments; trade assets continue to show strong growth reflecting our no.1 position in the KSA market Gross customer lending, SARbn [Pi B17%) & i 1829 1621 -«180.1«MRee «1969-2047 2
Slide 11: Customer deposits
Customer deposits Funding and liquidity remain robust; NIBs ratio continues to stabilize Customer deposits, SARbn Demand deposit balances and ratio Liquidity coverage ratio, % Stable funding base Non-interest bearing deposit ratio ahead of the market Highly liquid and well above regulatory requireme
Slide 12: Capital and returns
Capital and returns Strong improvement in RoTE to 15.3% with a second half of RoTE of 16.0%; healthy capital levels supported by our SAR4bn AT1 issuance Return on tangible equity, % CET1 capital ratio, % Total capital ratio, % Hl Tax relating to prior years Ml Loss from discontinued operations ‘SAB
Slide 13: 2023 overall performance and 2024 guidance
2023 overall performance and 2024 guidance We are in line or have exceeded our guidance for our key metrics 2023 performance vs. guidance: in line or exceeded expectations Loan YoY growth Annual net interest margin Cost efficiency ratio Cost of risk RoTE gill SAB 2022 actual +9% 2.46% 37.9% 24bps 11
Slide 14: Medium term outlook
Medium term outlook During 2023 we have refreshed our strategic plan out to 2026: we will build on the platform established over the last 3 years, supporting the Kingdom's transformation programme and with this continuing on our growth journey, protecting current revenue streams, cementing our posit
Slide 15:
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Slide 16: Medium term outlook: 2024 to 2026
Medium term outlook: 2024 to 2026 > > > @) Grow sustainable returns (a) Sustainably gain market iol Be future-ready by leading ey in a changing environment RY snes over the enat / in digital and ESG The leading international bank in the Kingdom Alawwal (the best) in i customer experience 0 ¢, A Scal
Slide 17: Revenue drivers
Revenue drivers Revenue growth through asset growth, minimizing cost-of-funds and greater contribution from non-funds income Grow the loan C1) portfolio faster than the market e Minimize cost-of- funding Healthy 3] growth of non-funds income XP si5 Continue with the successful mortgage strategy and
Slide 18: Digital banking and innovation
Digital banking and innovation Our Mission on digital: To offer market-leading digital experience in strategic areas and targeted segments Enable business growth Significantly enhance _ and Scalability Time To Market Digital Strategic Objectives Meaningfully contribute to key oS ee SAB’s growth towa
Slide 19: Our ESG Strategy
Our ESG Strategy We're playing a leading role mobilising finance, to support an inclusive, diverse and just able economy. We're doing this by embedding ESG at transition towards a more susta the heart of our organisation and our bus Allocate Financing towards a Just and Sustainable Economy Support t
Slide 20: Medium term plan targets a stabilising RoTE in a lower rate environment
Medium term plan targets a stabilising RoTE in a lower rate environment Doubled RoTE since the Merger to 15.3% 77 72 2020 2021 2022 Jail SAB Build on currently levels of RoTE 15.5-16.5% 15 10, 2023 2026 target Post ATT coupon payment Key drivers to succeed: Continued loan growth exceeding market gro
Slide 21: Jail
Jail SAB
Slide 22: Appendix
x Append gill SAB
Slide 23: SAB History and background
SAB Jgill History and background Netherlands Trading Society opens its 1 926 office in Jeddah and becomes the first bank to operate in KSA 197Q Saudi British Bank (SAB) was incorporated as joint stock company SABB merges with Bank Alawwal to 202 1 create SAB and become one of the largest commercial
Slide 24: Investment case
Investment case Five reasons to invest in SAB 1. Leading international bank in the Kingdom Our institution has developed into the leading international bank in the Kingdom. through a deep understanding of the needs of our customers and a bespoke product suite that delivers intrinsic value. Our uniqu
Slide 25: SAB's differentiation - connectivity with HSBC
bank in KSA with all key business SAB’s differentiation - connectivity with HSBC Our contribution to bringing the world to Saudi, and Saudi to the world Other HSBC Group Companies Global Network Global Product Capabilities Sector Capabilities dala Tadawul HSBC SAB Saudi Arabia = Corporate & Coverage