Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q2 2022 Earnings Presentation
28 slides from Saudi National Bank's earnings presentation, Aug 2, 2022
Slide 1: 2Q 2022 Earnings Presentation
2Q 2022 Earnings Presentation Saudi National Bank Riyadh | 02 August 2022 SNB | 2Q 2022 | Earnings Presentation
Slide 2: 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
Slide 3: Pro-forma financial statements
Pro-forma financial statements The pro-forma financial information consists of the unaudited pro-forma condensed consolidated statement of financial position of NCB and Samba (together referred to as ‘‘the Group’ or “SNB”’) as at June 30, 2022 and comparative period, as if the merger has taken place
Slide 4: 1H 2022 Performance Highlights
1H 2022 Performance Highlights Record net income from solid financing growth, margin expansion and lower operating and risk costs, whilst maintaining strong funding Balance sheet expansion… …from solid growth in financing… …as Wholesale financing resumed …and with continued Retail ROA growth… moment
Slide 5: 1H 2022 Performance Highlights (Continued)
1H 2022 Performance Highlights (Continued) Synergy realization ahead of target | continued progress on delivering merger benefits Unlocking merger benefits… …with 70% of total targeted cost synergies achieved to date, ahead of target. 1 Realized 1 1,200 1 Revised Target 840 800 840 of Total Targeted
Slide 6: Balance Sheet Summary
Balance Sheet Summary 5% balance sheet expansion from financing growth, funded mainly from interbank Total Assets (SARbn) Total Assets Movement YTD (SARbn) 914.1 921.6 958.5 +5% 80.2 84.3 81.4 536.2 914.1 5.3 38.6 2.9 958.5 497.6 514.6 (2.5) 242.6 243.9 247.9 92.6 82.9 90.1 -3% +2% +8% +4% 4Q 21 1Q
Slide 7: Financing and Advances
Financing and Advances Strong financing growth in Retail and Wholesale Financing & Advances, Net (SARbn) Financing & Advances, Net Movement YTD (SARbn) 514.6 536.2 497.6 2.0 2.2 +8% 1.9 17.7 17.8 18.1 223.9 232.9 216.8 497.6 14.1 8.3 8.9 7.2 0.3 536.2 Retail Wholesale (0.1) SAR +22.4bn SAR +16.1bn 2
Slide 8: Investments
Investments Investments up 2% from Saudi Government Debt Securities and funds & equity Investments (SARbn) Investments Movement YTD (SARbn) 242.6 243.9 247.9 20.5 22.2 21.4 +2% 58.6 55.2 53.5 242.6 4.4 0.2 0.7 247.9 161.5 166.6 173.0 +3% +0% +3% 4Q 21 1Q 22 2Q 22 4Q 21 SGDS 1 Other fixed income Fund
Slide 9: Deposits
Deposits Healthy CASA growth leading to further funding mix optimization Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) 588.6 606.6 593.0 +1% 21.1 19.1 23.2 Domestic International 111.6 109.7 104.2 SAR +4.1bn (+1%) SAR +0.4bn (+1%) 588.6 11.3 1.9 593.0 455.9 477.9 465.6 (7.2) (
Slide 10: Income Statement Summary
Income Statement Summary Pro-forma net income after Zakat and Tax rose 18% YoY from higher NSCI, lower operating and risk costs; +59% on a reported basis Net Income After Zakat and Income Tax Attributed to Equity Holders Movement YoY (SARmn) +59% +18% 765 1,340 9,010 81 9,091 353 1,375 (322) 7,668 (
Slide 11: NSCI & Margin
NSCI & Margin Pro-forma NSCI growth of 12% from higher average earning assets and margin expansion Net Special Commission Income Movement YoY (SARmn) +28% +12% 477 625 12,332 559 12,891 1,330 10,992 350 250 10 10,066 (372) (404) Financing Mix & Yield SAR +610mn +6% +8% +27% +20% +141% +37% 1H 21 SAM
Slide 12: Fee & Other Income
Fee & Other Income Pro-forma fee and other income decreased 18% YoY from lower investment-related income Fee and Other Income Movement YoY (SARmn) +9% -18% 1,100 4,341 156 10 3,241 40 3,547 3,547 (1,000) +9% +1% -43% -8% 1H 21 SAMBA 1H 21 Banking FX Inv-related Other 1H 22 1H 22 1Q 21 services REPOR
Slide 13: Operating Expenses
Operating Expenses Pro-forma 7% improvement in operating expenses driven by realized synergy savings and cost optimization efforts Operating Expenses Movement YoY (SARmn) +21% -7% 1,023 4,876 95 435 32 4,990 4,123 4,524 (230) (40) (64) (55) (328) +21% +89% -19% -7% -3% -17% +16% -20% 1H 21 SAMBA Int
Slide 14: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk Cost of Risk down 33bps to 37bps on lower Corporate impairments Net Impairment Charge for Financing and Advances Movement YoY (SARmn) Cost of Risk (%)1 0.70% 0 0 0 0.70% -64% 0 0.37% 0 0 0.30% 418 0 -46% 2,760 0 0 1H 21 1H 22 Group Group excluding int'l 26
Slide 15: Credit Quality
Credit Quality NPL growth modestly exceeding financing growth leading to minor NPL ratio increase Credit Impaired Financing Movement YoY (SARbn) +9% 2.9 11.8 0.3 0.7 8.9 8.1 (0.3) +9% +34% +12% -35% NPLs Retail Corporate Int'l NPLs POCI Credit impaired financing 4Q 21 2Q 22 2Q 22 REPORTED REPORTED R
Slide 16: Credit Quality (Continued)
Credit Quality (Continued) NPL coverage ratios remain healthy ECL Allowance by Stage (SARmn) Total Financing and Advances, Gross by Stage (SARbn) 11,315 11,711 545.0 11,017 506.0 523.1 9.2 8.2 8.1 22.6 18.6 19.0 5,860 5,974 6,447 479.3 495.9 513.3 2,815 3,017 3,002 2,341 2,324 2,262 4Q 21 1Q 22 2Q 2
Slide 17: Capitalization
Capitalization Decline in capital position during the quarter from negative fair value of debt instruments through comprehensive income Total Capital (SARbn) Total Capital Movement YTD (SARbn) -0% -0% 127.8 130.5 127.3 5.4 5.6 5.6 12.2 12.2 12.2 127.8 9.0 0.7 127.3 (4.0) (6.1) 110.2 112.7 109.6 4Q 2
Slide 18: Liquidity
Liquidity Strong liquidity profile maintained Net Stable Funding Ratio (NSFR) (%) SAMA LTD Ratio (%) 1 2 120% 118% 120% 950.0 1 Regulatory 2 850.0 1 ceiling 2 750.0 1 79.2% 90% 1 650.0 661.4 653.8 74.5% 75.7% 634.9 1 1 550.0 1 1 450.0 1 350.0 1 1 250.0 1 0 150.0 1 0 50.0 1 0 -50.0 1 4Q 21 1Q 22 2Q 2
Slide 19: Outlook and Guidance
Outlook and Guidance Positive guidance revisions for cost of risk and ROTE due to improving economic conditions in KSA Macro-Economic Outlook1 SNB Financial Guidance 2022 Outlook FY 20212 Baseline 1H 2022 Actual2 FY2022 Revised Guidance Oil Price USD 105 to 115 / bbl Financing Growth SAR 498 bn +8%
Slide 20: Q&A 2Q 2022
Q&A 2Q 2022
Slide 21: Additional Information
Additional Information Write to Us Access Our Investor Disclosures The Saudi National Bank Tower, Unit No. 778 Visit: http://www.alahli.com/en-us/Investor_Relation King Abdullah Financial District to access SNB’s current and previous Investor Publications including: 3208, Al Aqeeq District, King Fah
Slide 22: Appendix
Ras VD Sf iw ace Qo tian
Slide 23: SNB Overview & Strategy Framework
SNB Overview & Strategy Framework 2Q 2022
Slide 24: SNB Overview
SNB Overview SNB is Saudi Arabia's largest Banking Group with a well-diversified business model, leading client offering, and international presence Our Purpose Our Presence Our Performance Subsidiaries: TFKB (Turkey) Operating Income Net Inc. to equity holders Saudi National Bank " 316 branches, 55
Slide 25: 2022 Strategy Framework
2022 Strategy Framework SNB will leverage its National Champion status and V2030 opportunities SNB’s group strategic focus areas for 2022: Grow financing & Unlock Maintain Accelerate Foster profitability merger benefits cost & risk discipline digital convergence human capital This translates to spec
Slide 26: Macroeconomic Overview & Market Share
Macroeconomic Overview & Market Share 2Q 2022
Slide 27: Macroeconomic Overview
Macroeconomic Overview 300 Average Oil Price (USD)1 KSA PMI (manufacturing) Interbank Rates (%) 250 0 3.09% 100 2.45% 0 90 200 80 59 0 56 54 57 57 70 2.79% 150 112 109 0 60 50 100 73 76 76 0 0.91% 0.96% 40 0.79% 0.81% 30 0 50 20 0.15% 0 0.13% 0.21% 10 0 0 0 3M SAR SAIBOR 3M USD LIBOR Tadawul Index 5
Slide 28: Leading, diversified franchise
Leading, diversified franchise SNB Market Position as of 1Q 2022 KSA Total Market SNB Market Share in SARbn SNB Market Share in % Rank KSA 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall banking SAR 3,147 bn 922 2,225 29.3% #1 (Assets) Wholesale banking SAR 1,071 bn 225 846 21.0% #1 (Performing