Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q4 2024 Earnings Presentation
57 slides from Saudi National Bank's earnings presentation, March 2025
Slide 1: 4Q 2024 Investor Presentation
4Q 2024 Investor Presentation Saudi National Bank March 2025
Slide 2: Contents
Contents SNB Profile P. 3 - 6 Operating Environment P. 7 - 9 Strategy 2025-2027 P. 10 - 18 Financial Results Highlights P. 19 - 24 Debt profile update P. 25 - 29 Financial Results Details P. 30 - 45 Segmental Review P. 46 - 51 Appendix P. 52 - 57 SNB | 4Q 2024 | Investor Presentation 2
Slide 3: SNB Profile
SNB Profile 4Q 2024 SNB | 4Q 2024 | Investor Presentation
Slide 4: SNB Overview
SNB Overview SNB is Saudi Arabia’s largest banking group with a well-diversified business model, leading client offering, and presence in 9 countries Our Purpose: Our Presence Robust credit standing To propel our nation Moody's & Capital Intelligence upgraded SNB's LT to Aa3 & AA- towards Vision 2030
Slide 5: SNB in KSA and GCC Context
SNB in KSA and GCC Context SNB is the leading bank in KSA and among the top 3 in the GCC countries SNB Rank SNB Rank Top 5 Banks in GCC by Rank in KSA in GCC Assets (SARbn) Financing (SARbn) Assets #1 #3 Peer 1 1,338 Peer 1 939 Peer 2 1,240 Peer 4 693 Financing #2 #3 SNB 1,104 SNB 654 Peer 3 1,019 P
Slide 6: Leading, diversified franchise
SNB market position as of 4Q 2024 Leading, diversified franchise KSA Total Market SNB Market Share in SARbn SNB Market Share in % Rank KSA Overall Banking (Assets) 4,207Bn SAR 1,104 3,103 26% #1 Wholesale Banking (Domestic Financing) 1,573Bn SAR 290 1,283 18% #1 Retail Banking (Domestic Financing) 1
Slide 7: Operating Environment
Operating Environment 4Q 2024 SNB | 4Q 2024 | Investor Presentation
Slide 8: Supportive KSA macro-economic environment
Operating Environment Supportive KSA macro-economic environment Average Monthly Oil Prices (US$/bbl) Oil Demand Outlook (mmbd) Real GDP Growth (% Y/Y change) 140 107.0 106.6 +20.0 120 106.0 105.2 +15.0 105.2 100 105.0 104.1 +10.0 103.8 104.0 104.0 102.9 +4.3 80 75.74 +5.0 103.0 102.8 +3.6 60 75.53 +
Slide 9: Strong and stable banking sector
Operating Environment Strong and stable banking sector Overall Banking Industry Lending Overall Banking Industry Lending by Average Monthly Value of Gross Mortgage & Deposits (Y/Y % change) Sector (M/M % change) Origination by All Banks (SARbn) 20.0 3.0 14,000 200.0 2.5 12,000 150.0 15.0 14.4 2.0 10
Slide 10: Strategy 2025-2027
Strategy 2025-2027 SNB | 4Q 2024 | Investor Presentation
Slide 11: Our Strategy is bolstering on the same pillars with a domestic focus
SNB Strategy 2025-2027 Our Strategy is bolstering on the same pillars with a domestic focus and expands on the existing strategic framework Key pillars Reconfirmed themes Expansion of Strategic Themes Strengthen market share leadership in Retail and Market share and Target emerging segments with foc
Slide 12: 1. Market share & value creation
SNB Strategy 2025-2027 1. Market share & value creation Strengthen leadership in high potential segments to enhance value Themes Priorities Market • Recalibrate risk appetite to support balanced growth share & value across different segments and sectors Key Metrics 2024 2027 Targets creation Grow Fi
Slide 13: 2. Operational excellence
SNB Strategy 2025-2027 2. Operational excellence Capture efficiencies while increasing automation and advancing zero back-office journey Themes Priorities Market share & value • Value-based prioritization of projects Key Metrics 2024 2027 Targets creation Improve • Process re-engineering and automat
Slide 14: 3. Customer centricity
SNB Strategy 2025-2027 3. Customer centricity Step change CX with dedicated focus to become the market leader Themes Priorities Market share & value Key Metrics 2024 2027 Targets creation • Centralize CX governance Embed CX • Greater emphasis on NPS with accountability culture Retail Branches NPS 86
Slide 15: 4. Innovation
SNB Strategy 2025-2027 4. Innovation Further invest and expand digital and analytics capabilities to be the undisputed market leader Themes Priorities Market share & value • Upgrade data architecture and foundations Key KeyMetrics Metrics 2024 2027 2027 Targets Targets creation Capturing the value f
Slide 16: 5. Talent magnet
SNB Strategy 2025-2027 5. Talent magnet Strengthen effectiveness and strategically hire to address capability gaps Themes Priorities Market share & value Key Metrics 2024 2027 Targets creation • Set up shared KPIs for management team Create a • Capitalize on revamped organizational distinctive struc
Slide 17: Sustainability – Embarked on our ESG journey in 2021
SNB Strategy 2025-2027 Sustainability – Embarked on our ESG journey in 2021, by formulating annual ESG operating plans, paving the way to drive the ESG agenda in Saudi Arabia Achievements Future Aspirations In 2024, our ESG plan was focused on Strengthening ESG As the premier financial and banking s
Slide 18: 2027 financial targets
SNB Strategy 2025-2027 2027 financial targets Area Metrics 2024F Baseline 2027 Targets Key Targets Financing Growth CAGR 2024-27 SAR 654bn Low teens Growth CASA Growth CAGR 2024-27 SAR 419bn Low teens Growth NSCI Growth CAGR 2024-27 SAR 27.7bn Low double digit Banking Fee Income Growth CAGR 2024-27
Slide 19: Financial Results Highlights
Financial Results Highlights 4Q 2024 SNB | 4Q 2024 | Investor Presentation
Slide 20: 4Q 2024 Performance Highlights
4Q 2024 Performance Highlights SNB delivers record Net Income on the back of continued growth momentum, solid fee income growth and stable asset quality Strong financing growth YoY from Wholesale financing and Retail Mortgages maintaining a stable NPL ratio1 SAR bn 654.3 SAR bn 290.1 SAR bn 181.0 1.
Slide 21: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 6% mainly from financing growth and investments supported through debt capital markets activity Total Assets (SARbn) Total Assets Movement YoY (SARbn) 1,124.6 1,104.2 +6% 1,037.1 93 94 8.8 0.5 1,104.2 84 51.5 1,037.1 25.0 655 654 602 (18.8) 269 290 29
Slide 22: 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) 5,366 5,557 4,963 +6% +9% 5,387 5,615 4,998 +4% QoQ 1,283 1,6
Slide 23: Segmental Highlights
Segmental Highlights Solid net income contributions from Wholesale and Capital Markets Total Assets Movement YoY (SARbn) Total Liabilities Movement YoY (SARbn) Total Assets Composition (%) +6% +6% Capital Markets 2.1% 37 8 1 1,104 7 1 911 47 22 Wholesale 1,037 860 Int'l 56.2% 2.9% (4) Retail 38.8% +
Slide 24: Outlook & Guidance
Outlook & Guidance Ambitious targets set for 2025, marking the launch of the new strategy Macro-Economic FY 2024 FY 20252 SNB Financial Guidance FY 2024 Baseline FY 2025 Guidance Outlook1 SAR 654bn Real GDP Growth +1.2% +3.6% Financing Growth Low double digit +9% SAR 27.7bn Mid-to-high single NSCI G
Slide 25: Debt profile update
Debt profile update 4Q 2024 SNB | 4Q 2024 | Investor Presentation
Slide 26: Continued growth and diversification in funding profile
Term Loans, Sukuk and Debt Securities Continued growth and diversification in funding profile Debt Securities, CDs, Tier 1 Sukuk and Term Loan Balances (SARbn) 2024 key highlights ▪ Continued to generate diversified funding from Asia, Europe, UK, US, and Middle 116.5 East. ▪ Secured an additional SA
Slide 27: Sustainable finance
Sustainable finance SNB has issued a total of 10 sustainable instruments totaling to USD 1,771mn and has a current portfolio of eligible sustainable assets amounting to USD 3,144mn Continuing to lead and innovate in the sustainable financing space within KSA Term funding portfolio by type Eligible G
Slide 28: Capital position
Capital position SNB enjoys highest Capital Ratios among regional peers, representing the highest quality capital CET1 Tier 1 CET 1 and Tier 1 capital ratios 20.3% 19.3% 19.1% 18.8% 17.9% 18.1% 18.1% 17.2% 17.2% 16.4% 16.0% 15.6% 15.4% 15.5% 15.1% 17.6% 17.2% 16.0% 15.4% 15.6% 14.1% 14.2% 14.6% 14.7
Slide 29: External Ratings Update
Credit Ratings External Ratings Update Rating Agency Saudi Arabia SNB Ratings SNB Outlook Quotes Long-term A- “SNB is likely to resort to alternative sources of financing, A+ BBB+ including external funding. However, we expect the proportion S&P Positive Outlook: Stable A-2 A-2 of external sources i
Slide 30: Financial Results Details
Financial Results Details 4Q 2024 SNB | 4Q 2024 | Investor Presentation
Slide 31: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 6% mainly from financing growth and investments supported through debt capital markets activity Total Assets (SARbn) SAR (mn) 4Q 2024 4Q 2023 Δ 3Q 2024 Δ Cash & interbank 63,208 82,062 -23% 86,091 -27% 1,072.1 1,088.1 1,124.6 1,104.2 1,037.1 85 88 93
Slide 32: Financing & Advances
Financing & Advances Solid growth in Wholesale and Residential financing Financing & Advances, Net (SARbn) Financing & Advances, Net Movement YoY (SARbn) 2024 Guidance Low double-digit +9% 625.2 637.2 655.3 654.3 20.8 6.7 1.2 1.2 654.3 601.5 3 3 3 3 2 17 17 18 17 19.7 3.2 16 33 35 35 601.5 28 34 235
Slide 33: Investments
Investments Investments up 9% primarily in other fixed income and SGDS Investments, Net (SARbn) Investments, Net Movement YoY (SARbn) 275.6 286.7 290.5 292.5 +9% 269.1 23 25 25 26 22 12.9 2.6 292.5 100 87 87 89 94 9.5 269.1 (1.7) 158 160 162 178 180 QoQ +2% +4% +1% +1% +6% +16% +10% -23% 4Q 23 1Q 24
Slide 34: Customers' Deposits
Customers' Deposits Customers’ deposits decreased 2% driven primarily by a domestic CASA outflow, moderating the CASA ratio to 72.2% Customers' Deposits (SARbn) Customers' Deposits Movement YoY (SARbn) 656.3 632.7 634.2 -2% 590.1 25 579.8 32 31 22 130 31 590.1 21.8 0.5 120 132 154 579.8 130 (2.8) 50
Slide 35: Income Statement Highlights
Income Statement Highlights Net income growth driven by higher operating revenue and partially offset by higher operating expenses including impairments and International SAR (mn) FY 2024 FY 2023 Δ 4Q 2024 4Q 2023 Δ Net Income (SARmn) NSCI 27,730 27,009 +3% 6,904 6,873 +0% 5,231 5,366 5,557 4,963 5,
Slide 36: NSCI & Margin: YoY NSCI increased 3%
NSCI & Margin YoY NSCI increased 3% on asset growth… Net Special Commission Income Movement YoY (SARbn) Net Special Commission Income Composition (%) +3% +6% Capital Markets 1.5 Wholesale 1.8% 3.0 27.0 2.2 27.0 0.7 27.7 36.2% 25.4 Int'l 1.6 (5.0) 2.5% +13% +17% +15% +26% Retail 59.5% 1 1 FY 23 Int'l
Slide 37: NSCI Margin was pressured by International
NSCI & Margin …while NSCI Margin was pressured by International Net Special Commission Margin Movement YoY (%) 1 2024 Guidance Average Earning Assets (SARbn) 3.0%-3.2% -13bps +8% 0.08% 906.2 0.18% 841.7 29 31 0.10% 261 3.15% 251 3.02% 251 282 -0.39% -0.10% 308 334 FY 23 FY 24 Retail financing Corpor
Slide 38: QoQ Margin stabilized on faster CoF repricing
NSCI & Margin QoQ Margin stabilized on faster CoF repricing 1 Group NSCI Margin QTR (%) Group, excl Int'l, NSCI Margin QTR (SARbn) 3.08% 3.08% 3.10% 3.09% 3.03% 3.07% 2.89% 2.92% 2.98% 2.94% 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 Group Commission Yield & Funding Cost QTR (%) Gro
Slide 39: Fee & Other Income
Fee & Other Income Fee and other income experienced strong growth, driven by domestic banking service fees and investment-related income Fee & Other Income (SARmn) Fee & Other Income Movement YoY (SARmn) 2,330 +10% 2,028 2,084 1,866 1,752 +21% 1,034 8,308 670 778 886 7,580 7,341 967 723 837 514 469
Slide 40: Operating Expenses
Operating Expenses Operating expenses increased 7% YoY driven mainly by depreciation and general and administrative expenses 1 Operating Expenses (SARmn) Total Operating Expenses, Excl Intangibles Amortization Movement 2,664 YoY (SARmn)1 2,545 2,548 +7% 2,340 2,460 +8% 769 859 681 703 887 1,496 10,2
Slide 41: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk Cost of Risk stable at 16bps as higher retail impairments were partially offset by a lower international charge Impairment Charge For Financing And Advances Losses Movement Cost of Risk YTD (%) 2024 Guidance 15 to 25 bps YoY (SARmn) +14% 0.43% +55% 1,018 1
Slide 42: Credit Quality: Asset quality remains stable
Credit Quality Asset quality remains stable… Credit Impaired Financing Movement YoY (SARbn) NPL Ratio (%) +5% 2.5 10.1 1.21% 1 7.4 0.5 0.0 7.7 1.16% 1.17% 1.12% 1.13% 1.11% (0.2) 1.13% 1.09% 1.09% +28% -3% +1% 1.08% NPLs Retail Wholesale Int'l NPLs POCI balance Impaired 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Slide 43: Credit Quality: stage-wise coverage
Credit Quality …with stage-wise coverage updated through the reallocation of provisions ECL Allowance by Stage (SARbn) Total Financing & Advances, Gross by Stage (SARbn) 11.2 11.2 11.2 +9% 10.3 10.4 633.3 645.5 663.5 662.2 608.6 7 8 8 5 5 5 8 7 5 27 27 27 18 7 28 3 4 4 636 573 599 611 629 3 1 3 3 2
Slide 44: Capitalization
Capitalization Capitalization improved as Tier 1 CAR surpassed 20%, supported by a SAR 6 billion AT1 Sukuk issuance and profit generation Total Eligible Capital (SARbn) Total Eligible Capital Movement YoY (SARbn) 150.2 157.1 141.7 146.6 146.2 +11% 4 6 6 6 20 5 14 14 14 14 21.2 6.0 157.1 141.7 (10.8)
Slide 45: Liquidity is strong and stable
Liquidity Liquidity is strong and stable Stable Funding (SARbn/%) SAMA Loan-to-Deposit Ratio (%) 114.4% 110.4% 109.4% 120.0% 110.1% 1,000 106.6% 100.0% 90.0% 654.4 706.9 695.0 707.3 693.3 800 80.0% 83.9% 84.0% 600 60.0% 78.8% 79.8% 400 40.0% 77.1% 200 20.0% QoQ +8% -2% +2% -2% 0 0.0% 4Q 23 1Q 24 2Q
Slide 46: Segmental Review
Segmental Review 4Q 2024 SNB | 4Q 2024 | Investor Presentation
Slide 47: Domestic (Group, Excl. Int'l)
Domestic (Group, Excl. Int’l) 9% net income before zakat growth YoY on NSCI and Fee & other income growth, partially offset with higher operating expenses and risk costs SAR (mn) 4Q 2024 3Q 2024 Δ 4Q 2024 4Q 2023 Δ Net Income Before Zakat & Tax Movement YoY (SARmn) Total assets 1,072,079 1,092,041 -
Slide 48: Retail
Retail 3% net income growth YoY on higher Fee & other income and higher NSCI growth SAR (mn) 4Q 2024 3Q 2024 Δ 4Q 2024 4Q 2023 Δ Net Income Before Zakat & Tax Movement YoY (SARmn) Total assets 428,303 424,411 +1% 428,303 406,054 +5% +3% Financing and advances, net 343,586 339,927 +1% 343,586 320,566
Slide 49: Wholesale
Wholesale 11% net profit growth YoY supported by 10% operating income growth SAR (mn) 4Q 2024 3Q 2024 Δ 4Q 2024 4Q 2023 Δ Net Income Before Zakat & Tax Movement YoY (SARmn) Total assets 620,429 643,973 -4% 620,429 583,721 +6% +11% Financing and advances, net 290,053 294,466 -1% 290,053 262,732 +10%
Slide 50: Capital Markets
Capital Markets Net income surged by 32% YoY on increased fee income from supportive market condition SAR (mn) 4Q 2024 3Q 2024 Δ 4Q 2024 4Q 2023 Δ Net Income Before Zakat & Tax Movement YoY (SARmn) Total assets 23,348 23,657 -1% 23,348 15,760 +48% +32% Financing and advances, net 3,450 3,384 +2% 3,4
Slide 51: International
International Lower income lines resulted in a 142% decline in net income despite lower impairments and Other expenses SAR (mn) 4Q 2024 3Q 2024 Δ 4Q 2024 4Q 2023 Δ Net Income Before Zakat & Tax Movement YoY (SARmn) Total assets 32,075 32,566 -2% 32,075 31,546 +2% -112% Financing and advances, net 17
Slide 52: Appendix
Appendix 4Q 2024 SNB | 4Q 2024 | Investor Presentation
Slide 53: SNB History
SNB History SNB was founded as NCB in 1953 and then formed through the merger with Samba Financial Group in 2021 Largest Initial Public Offering (IPO) A Beginning In 2014, NCB went public with its benchmark SAR In 1953, the National Commercial Bank (NCB) was 22.5bn IPO that was the largest the regio
Slide 54: Hyperinflation
Hyperinflation Hyperinflationary adjustments came at SAR 606mn for 2024 Classification of Turkey as a hyperinflationary economy Resulting in hyperinflation adjustments impacting Group net income 1 ▪ During 2022, the Turkish economy was identified to be hyperinflationary based Hyperinflation Adjustme
Slide 55: Definitions of Key Financial Ratios
Definitions Definitions of Key Financial Ratios Net Special Commission Income Annualized Net Special Commission Income excluding FV adjustment / Average commission earning assets (NSCI Margin; also known as NIM) Cost to Income Ratio (C/I) Total Operating Expense excluding Amortization of Intangibles
Slide 56: 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
Slide 57: 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