Saudi Awwal Bank · TADAWUL:1060
Saudi Awwal Bank — Q2 2024 Earnings Presentation
17 slides from Saudi Awwal Bank's earnings presentation, 2024
Slide 1: Saudi Awwal Bank 2Q24 Results
Saudi Awwal Bank 2Q24 Results
Slide 2: CEO's key 2024 messages
CEO's key 2024 messages Xd Sis
Slide 3: 2024 Key messages
2024 Key messages Performance against strategic objectives continues and despite cost-of-funding pressures, we've flexed our businesses to ensure revenue growth continues Strategy on track @ Akey player in the Vision 2030 giga-programmes Delivered strong loan growth of 21% YoY and a further 6% QoQ i
Slide 4: 2Q24 financials
20724 financials Jgill SAB
Slide 5: ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▲ ▲ ▲ ▼ ▲ ▲
▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▲ ▲ ▲ ▼ ▲ ▲ ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▼ ▼ ▲ ▲ ▲ ▲ ▼ ▼ ▲ ▲ ▲ ▲ ▼ ▼ ▲ ▼ ▼ ▼ ▲ ▲ ▼ +23% ▲ ▲ ▲ ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▼ 4
Slide 6: Revenue
Revenue We delivered record revenue of SAR3.5bn in 2024, growth of 1% QoQ as quarterly NIM fell but offset by strong loan growth and supported by robust fee generation Revenue by business: Quarterly trend SARm Other Ml Capital markets MI Treasury Ml weB Ml ciB Quarterly Quarterly revenue is up reven
Slide 7: NSCI and non-funds revenue
NSCI and non-funds revenue Quarterly NSCI continues to build as volume growth more than offsets the decline in NIMs; cost-of-funds continue to be pressured by falling NIBs ratio NSCI, SARm and Average interest earning assets, SARbn PV unwind Il NSCI excl. PV unwind X) Average interest earning assets
Slide 8: Costs
Costs 2024 costs have increased 8% compared with 2023, and up 2% QoO; 1H24 CER ratio of 30.6% remains within the guidance range Recent cost trend, SARm 1,077 1,066 1,075 1,006 996 1,045 . 1,051 B41 863 881 1022-2022 3022 4022 1023 2023-3023. 4028 1024 2024 Costs were higher marginally by 2% due 2024
Slide 9: Purchased or originated credit impaired
Purchased or originated credit impaired 102 45 47 27 24 27 28 27 14 19 16 9 8
Slide 10: Customer lending and trade assets
Customer lending and trade assets 21% YoY lending growth — the fastest growing bank in the KSA; trade assets continue to show strong growth reflecting our no.1 position in the KSA market Gross customer lending, SARbn TTT 4a19 2 | 4023 1024 2024 Gross customer lending Jun-24 vs. Jun-23, SARbn Trade A
Slide 11: Customer deposits
Customer deposits Funding and liquidity remain robust as we continue to capture deposits; NIBs balances continue to stabilize with SAR3bn growth in 2024 Customer deposits, SARbn Demand deposit balances and ratio Liquidity coverage ratio, % Strong funding base Non-interest bearing deposit ratio balan
Slide 12: Capital and returns
Capital and returns Improvement in RoTE from sustained loan growth, strong cost control and supported by lower ECL Return on tangible equity, % CET1 capital ratio, % Total capital ratio, % Basel 3 reforms basis Basel 3 reforms basis thaw pte as 16.4 165163 163 188 agg |S 183 s6 aga 1 72 77 2020 2021
Slide 13: 2024 guidance
2024 guidance 1H24 overall performance continues to be supported by faster-than-market growth in lending where we upgrade 2024 guidance; we also upgrade CoR guidance Balance Sheet Loan YoY growth Annual net interest margin Cost Profitability efficiency ratio RoTE Asset Quality Cost of risk Jail SAB
Slide 14: Appendix
x Append gill SAB
Slide 15: History and background
SAB Jgill History and background 1926 1978 2021 Netherlands Trading Society opens its office in Jeddah and becomes the first bank to operate in KSA Saudi British Bank (SABB) was incorporated as joint stock company SABB merges with Bank Alawwal to create SAB and become one of the largest commercial b
Slide 16: 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 17: 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