Saudi Investment Bank · TADAWUL:1030
Saudi Investment Bank — The Saudi Investment Bank — Q1 2024 Earnings Presentation
26 slides from Saudi Investment Bank's earnings presentation, May 13, 2024
Slide 1: The Saudi Investment Bank Earnings Presentation 1Q 2024
© dotiulll Gageull =Lill The Saudi Investment Bank Earnings Presentation 1Q 2024 13 May 2024
Slide 2: Contents
Contents 1Q 2024 Performance Highlights 3 Strategy 4 Financial Performance 10 2024 Guidance 22 QsA 24 Appendix 25 ‘The Saudi Investment Bank—1@ 2024 Earnings Presentation P.2
Slide 3: Growth momentum sustained in 1Q 2024 demonstrating solid progress
Growth momentum sustained in 1Q 2024 demonstrating solid progress } toans Deposits Loan growth of 5% YTD driven by corporate segment, while deposits grew 6% YTD +5% YTD +6% YTD on higher time deposits The growth in operating income was underpinned by 5% YoY growth in assets, and SAR 84.6 bn & SAR 88
Slide 4: Strategy
Strategy The Saudi Investment Bank-1Q 2024 Earnings Presentation Pa
Slide 5: As part of Strategy 2027, we have set a strategic vision for each function
As part of Strategy 2027, we have set a strategic vision for each function... Key Enablers Support strategy through consistent value for our shareholders We build long term relationships with clients, create an unrivaled work environment for our people and deliver ™] Core L «J Segments a Vv Public I
Slide 6: Strategic priorities for each function
...which is translated into strategic priorities for each function & Tii= Corporate o Banking Segment clients, offer differentiated coverage Improve product offering, cross- sell Usher in new customer platform, CRM platform Simplify and automate processes Public Institutions Identify focus customer
Slide 7: Implementation of Strategy 2027 is in full swing
Implementation of Strategy 2027 is in full swing © Bank-wide transformation 45+ strategic cross-functional projects ( 7 . ») 1 initiated Launched 4 dedicated mortgage centers with mortgage expert staff; soon to launch 2 new mortgage products and number of network partnerships XX a 2 Driving sales wi
Slide 8: SAIB Venture Studio is operational and its first product, SAIB Travel App
SAIB Venture Studio is operational and its first product, SAIB Travel App, is hugely popular in © pilot launch itself SAIB Venture Studio.. ... a Start-up or venture factory supported by significant investment appetite (SAR 100-200 Mn) for Unicorn prospective concepts ... an empowered and autonomous
Slide 9: With our strategy, we aim to grow market share, increase fee income and improve efficiency
With our strategy, we aim to grow market share, increase fee income and improve efficiency to drive higher ROTE } Grow Market Share in Commercial Loans SAIB has already started to close the gap Commercial KSA Market Share Retail KSA Market Share towards KSA peers’ return on equity Return on Tangible
Slide 10: Financial Performance 1Q 2024
Financial Performance 1Q 2024 The Saudi Investment Bank-1Q 2024 Earnings Presentation
Slide 11: SAIB is focused on delivering strong results across key performance indicators
SAIB is focused on delivering strong results across key performance indicators } Balance Sheet Profitability Asset Quality Capital & Liquidity 1Q 2024 DRIVERS LOANS & ADVANCES SAR 84 . 6bn 45% YTD Strong growth in Corporate (+6%) and Private Banking (+6%) loans cero sm 8.4m vonvo| [ HabaSSutn Sanity
Slide 12: Growth across assets, funded largely by increase in deposits
Growth across assets, funded largely by increase in deposits } Total assets increased by 5% YTD as loans grew 5% and investments rose 6%, further supported by increased bank placements which were partially offset by a reduction in Loans & Advances (SARbn) Retail | Corporate [1 Other balances with SA
Slide 13: Loan growth continues to gain momentum driven by corporate lending
Loan growth continues to gain momentum driven by corporate lending 5% YTD growth in loans driven by 6% increase in corporate lending due to widespread growth across sectors. Active participation in syndicated loan market for +1 5% Total Loans voy Loans & Advances by segment (%) a infrastructure proj
Slide 14: Investments grew 6% YTD driven by acquisition of high-quality, fixed-rate debt securities
Investments grew 6% YTD driven by acquisition of high-quality, fixed-rate debt securities } Increase in investments during 1@ 2024 mainly driven Investments, Gross by type (9%) Investments by accounting classification by new securities purchased to lock-in benefits from high (96) rate environment (m
Slide 15: Customer deposits increased 6% mainly driven by IBDs
Customer deposits increased 6% mainly driven by IBDs Deposits grew 6% YTD during 1Q 2024, mainly driven by increases in interest-bearing deposits IBDs rose 9% YTD from large inflows to time deposits amid higher interest rate environment NIBDs grew by 2% YTD Corporate deposits increased by 69%, while
Slide 16: 8% growth in 1Q 2024 earnings driven by increased fee and other income
8% growth in 1Q 2024 earnings driven by increased fee and other income Net income increased 8% YoY in 1Q 2024 driven by 3% growth in operating income, further aided by positive operating leverage from modest 1% increases in both operating expenses and impairment charges SAR Million Net special commi
Slide 17: NSCI stable YoY as earning assets growth offset by NIM contraction
NSCI stable YoY as 14% growth in earning assets was offset by a 43bps NIM contraction } NSCI was stable YoY as 14% growth in average earnings assets was offset by NIM contraction NIM —*—NIM —e-Assetyield CoF Average Earning Assets (SARbn) — MiConsumer loans [Corporate & other loans. NIM declined by
Slide 18: Growth in fee and other income of 26%
Growth in fee and other income of 26% driven by investment income and banking services fees Fee & other income increased 26% YoY in 1Q 2024, mainly driven by investment-related income and supported by growth of banking services fees Foreign exchange income decreased by 7% YoY in 1Q 2024 due to lower
Slide 19: Marginal increase in operating expenses
Marginal increase in operating expenses Operating expenses increased 1% YoY in 1Q 2024, mainly due to increases in general & administration expenses Premises costs declined as a previous rented facility was acquired, with subsequent charges depreciated Cost to income ratio improved, reaching 43.0% i
Slide 20: Credit quality remained stable with NPL ratio at low levels
Credit quality remained stable with NPL ratio at low levels Total impairments of SAR 82mn for 1Q 2024, rising 1% YoY. Cost of risk decreased to 0.39% in 1Q 2024 Non-performing loans ratio decreased by 3bps YTD to reach 1.47% NPL coverage ratio at 157.0% as of 1Q 2024 improved by 1.8 ppts YTD Stage 3
Slide 21: Solid liquidity, funding and capital position with adequate buffers
Solid liquidity, funding and capital position with adequate buffers LCR declined by 15.9 ppts during 1Q 2024 to 179.9%, while NSFR eased 1.7 ppts to 111.4% As of 1Q 2024, the SAMA regulatory LTD ratio was comfortably within required levels at 77.2% Total capital (Tier 1 + Tier 2 regulatory capital)
Slide 22: 1Q 2024 Results and 2024 Guidance
1Q 2024 Results and 2024 Guidance The Saudi Investment Bank-1Q 2024 Earnings Presentation P.22
Slide 23: 1Q 2024 performance in line with expectations and FY guidance unchanged
1Q 2024 financial performance was in line with expectations and FY guidance is unchanged Balance Sheet Profitability Asset Quality Capital LOANS & ADVANCES NET INTEREST MARGIN COST TO INCOME RATIO RETURN ON TANGIBLE EQUITY COST OF RISK TIER 1 RATIO 2023 Actual +17% YoY 2.98% +4bps YoY 41.8% -2.3ppt
Slide 24: Q&A
Q&A ‘The Saudi Investment Bank—1@ 2024 Earnings Presentation P24
Slide 25: Appendix
Appendix The Saudi Investment Bank-1Q 2024 Earnings Presentation P.25
Slide 26: SAIB Investor Relations
© dotiulll Gageull =Lill The Saudi Investment Bank SAIB Investor Relations For more information, please visit www.saib.com.sa/en/investor-relations or contact SAIB Investor Relations at ir@saib.com.sa
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