Bank Aljazira · TADAWUL:1020
Bank Aljazira — 9M 2024 Earnings Presentation
25 slides from Bank Aljazira's earnings presentation, Nov 5, 2024
Slide 1: Bank AlJazira Earnings Presentation 9M 2024
Bank AlJazira Earnings Presentation 9M 2024
Slide 2: Continued growth of assets with gradually improving profitability and efficiency
Highlights Highlights Strategy & ESG Financials Guidance Appendix Continued growth of assets with gradually improving profitability and efficiency Macro Saudi Arabia’s favorable operating Non-oil Real GDP Growth SAIBOR 3M Avg (%) Banking Sector Loan Growth Background environment: robust non-oil GDP
Slide 3: Strategic Progress
Strategic Progress
Slide 4: We refreshed our strategy with a clear transformation agenda for each business segment
Refreshed Strategy Highlights Strategy & ESG Financials Guidance Appendix We refreshed our strategy with a clear transformation agenda for each business segment The Refreshed Strategy Business Lines Vision Where are we heading? Corporate Retail Segment and sector focused CIBG: Bank-of-choice for aff
Slide 5: Notable strategic progress was made in 9M 2024
Progress on Strategic Initiatives Highlights Strategy & ESG Financials Guidance Appendix Notable strategic progress was made in 9M 2024 Corporate Retail Initiatives Outcomes Initiatives Outcomes Large & Mid corporate: New products: Expansion of Syndicated loans Boosting high-quality corporate New pr
Slide 6: ESG Highlights
Spal Clin > BANK ALJAZIRA
Slide 7: BAJ is delivering impactful ESG initiatives across its operations
ESG Highlights Highlights Strategy & ESG Financials Guidance Appendix BAJ is delivering impactful ESG initiatives across its operations Environmental Paper Usage Water Consumption Energy Consumption Other Projects Awards & Recognitions TOP-5 Reduced by digitalization Reduced by Reduced by Particip
Slide 8: Financial Performance
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Slide 9: Balance sheet expanding by 12% YTD, driven by financing portfolio
Total Assets and Financing Highlights Strategy & ESG Financials Guidance Appendix Balance sheet expanding by 12% YTD, driven by financing portfolio Total Assets (SAR Bn) 3Q 2024 Total Assets Movement YTD (SAR Bn) 3Q 2024 +12% +12% 138.0 145.2 11.9 0.3 145.2 129.3 129.6 135.8 3.1 3.1 3.5 2.8 3.0 1.6
Slide 10: Optimizing investments by replacing maturities with fixed-rate assets at favorable rates
Investments Highlights Strategy & ESG Financials Guidance Appendix Optimizing investments by replacing maturities with fixed-rate assets at favorable rates Investments Movement YTD (SAR Bn) 3Q 2024 Investments (SAR Bn) 3Q 2024 +5% +5% 2.8 36.5 36.1 34.4 34.0 34.6 0.1 36.1 34.4 (1.3) 23.7 20.5 20.0 2
Slide 11: Liquidity position provides substantial buffers to accommodate future growth
Liabilities and Liquidity Highlights Strategy & ESG Financials Guidance Appendix Liquidity position provides substantial buffers to accommodate future growth Total Liabilities Movement YTD (SAR Bn) 3Q 2024 Loans to Customers' Deposit Ratios (%) 3Q 2024 +13% 88.5% 89.7% 87.6% 86.5% 85.9% 9.3 0.2 127.
Slide 12: CASA share remains above 40% supported by savings accounts and time deposits
Customers’ Deposits Highlights Strategy & ESG Financials Guidance Appendix CASA share remains above 40% supported by savings accounts and time deposits Customers' Deposits (SAR Bn) 3Q 2024 Customers' Deposits Movement YTD (SAR Bn) 3Q 2024 +10% +10% 97.3 98.6 103.3 3.0 0.9 103.3 90.6 94.1 5.8 94.1 56
Slide 13: Strong net income through top-line expansion and positive operating leverage
Net Income Highlights Strategy & ESG Financials Guidance Appendix Strong net income through top-line expansion and positive operating leverage Net Income for the Period Movement YoY (SAR Mn) 9M 2024 Quarterly Net Income (SAR Mn) 3Q 2024 Management commentary +21% 318 333 Net income up 28% YoY, fro
Slide 14: Net F&I income growing 10% from earning assets expansion on broadly stable net margin
Net Financing and Investment Income and Margin Highlights Strategy & ESG Financials Guidance Appendix Net F&I income growing 10% from earning assets expansion on broadly stable net margin Net Financing & Investment Income Movement YoY (SAR Mn) 9M 2024 Quarterly Net Margin (%) 3Q 2024 6.06% 6.15% 6.1
Slide 15: Fee & other income boosted by banking services and investment income
Fee & Other Income Highlights Strategy & ESG Financials Guidance Appendix Fee & other income boosted by banking services and investment income Fee & Other Income Movement YoY (SAR Mn) 9M 2024 Net Fee Income From Banking Services Movement YoY (SAR Mn) 9M 2024 +28% Includes +15% ~SAR 60 Mn one-off.* 4
Slide 16: Cost-to-income ratio improving YoY from positive jaws
Operating Expenses Highlights Strategy & ESG Financials Guidance Appendix Cost-to-income ratio improving YoY from positive jaws Operating Expenses (SAR Mn) 3Q 2024 Operating Expenses Movement YoY (SAR Mn) 9M 2024 +14% +9% 557 74 3 1 1,557 488 515 492 508 53 1,426 +6% -4% +3% +10% +7% +16% +2% +2% 3Q
Slide 17: Credit quality remains healthy with improving NPL ratio
Credit Quality Highlights Strategy & ESG Financials Guidance Appendix Credit quality remains healthy with improving NPL ratio Cost of Risk* (%) 9M 2024 NPL Ratio (%) 3Q 2024 NPL Coverage Ratio 2.21% 3Q 2024 0.32% 1.90% 1.80% 1.78% 0.30% 0.28% 1.50% 0.26% 1.84% 1.66% 1.57% 1.52% 0.20% 1.30% +16ppts Y
Slide 18: Returns are gradually improving, with capitalization stabilizing in 2-3Q 2024
Capitalization and Profitability Highlights Strategy & ESG Financials Guidance Appendix Returns are gradually improving, with capitalization stabilizing in 2-3Q 2024 Capital Adequacy Ratio (%) 3Q 2024 Risk Weighted Assets (SAR Bn) 3Q 2024 20.2% 19.9% +15% 18.3% 18.2% 18.1% 105.0 110.1 103.1 93.1 95.
Slide 19: Diverse segment mix, with strong contributions from corporate and brokerage in 9M 2024
Segmental Performance Highlights Strategy & ESG Financials Guidance Appendix Diverse segment mix, with strong contributions from corporate and brokerage in 9M 2024 Total Assets Movement YTD (SAR Bn) 3Q 2024 Total Assets Composition (%) 3Q 2024 +12% Corporate 2.8% 0.2% 3.8 0.40 0.08 145.2 6.3 5.1 Ret
Slide 20: Guidance
Spal Clin > BANK ALJAZIRA
Slide 21: Guidance is kept unchanged, with some improvements expected in NIM and T1
Guidance Highlights Strategy & ESG Financials Guidance Appendix Guidance is kept unchanged, with some improvements expected in NIM and T1 Guidance Metric FY 2023 Actual 9M 2024 Actual FY 2024 Guidance Drivers Financing growth +14% +15% YTD Mid-teens Guidance unchanged as more modest growth and eleva
Slide 22: Q&A
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Slide 23: Appendix
Spill lis BANK ALJAZIRA Appendix
Slide 24: Connect with us
Contacts Highlights Strategy & ESG Financials Guidance Appendix Connect with us IR Contacts Latest Reports Muhammad Majid Khan, Head of Investor Relations Board of Directors’ Report Sustainability Report Direct: +966 (12) 609 8997 Email: MMKhan@BankAljazira.com Abdulaziz Nahas, Senior Manager - Inve
Slide 25: Disclaimer
Disclaimer Highlights Strategy & ESG Financials Guidance Appendix Disclaimer The Bank Aljazira (BAJ) prepared this presentation on a proprietary basis as general background information about the activities of BAJ. The information contained herein is given in summary form and for discussion purposes