Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q1 2024 Earnings Presentation
18 slides from Saudi National Bank's earnings presentation, May 14, 2024
Slide 1: 1Q 2024 Earnings Presentation
1Q 2024 Earnings Presentation Saudi National Bank Riyadh | 14 May 2024
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: SNB continues its growth journey
Saudi National Bank SNB continues its growth journey A solid start to the year underpins a strong foundation for achieving our FY 2024 goals STRATEGIC STRATEGIC STRATEGIC 1Q 2024 ASPIRATIONS PRIORITIES FOCUS AREAS PERFORMANCE HIGHLIGHTS Value Capture Value growth in CASA market share Leadership Whol
Slide 4: 1Q 2024 Performance Highlights
1Q 2024 Performance Highlights Strong financing growth funded by a robust increase in CASA, along with prudent COR resulted in positive net income growth Strong financing growth from Wholesale financing and Retail financing, including Mortgage financing SAR bn 625.2 SAR bn 277.3 SAR bn 328.6 SAR bn
Slide 5: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 3% mainly from financing growth, funded by customers’ deposits partly offset by reduced interbank balances Total Assets (SARbn) Total Assets Movement YTD (SARbn) 1,037.1 1,072.1 976.1 +3% 84 85 83 23.1 1,072.1 1,037.1 5.2 7.8 602 625 566 (0.8) (0.3) 2
Slide 6: Financing & Advances
Financing & Advances Strong growth in financing, driven primarily by wholesale and mortgages Financing & Advances, Net (SARbn) Financing & Advances, Net Movement YTD (SARbn) 2024 Guidance High single-digit 601.5 625.2 566.3 2 3 +4% 2 16 17 19 277 8.7 5.9 0.5 0.5 625.2 243 263 601.5 7.1 0.9 329 Retai
Slide 7: Investments
Investments Investments up 2% primarily in domestic other fixed income Investments, Net (SARbn) Investments, Net Movement YTD (SARbn) 275.6 +2% 263.6 269.1 23 25 27 5.4 1.6 275.6 44 43 269.1 0.8 57 (1.3) 183 200 206 +1% +7% +6% -18% 1Q 23 4Q 23 1Q 24 4Q 23 SGDS1 Other fixed Funds & equity Int'l 1Q 2
Slide 8: Deposits
Deposits Robust double-digit growth in customers’ deposits mainly from domestic CASA growth Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) 656.3 +11% 610.8 590.1 25 21 22 13.5 656.3 130 53.5 120 120 590.1 (0.1) (0.7) 470 448 501 +12% +11% -1% -4% 1Q 23 4Q 23 1Q 24 4Q 23 CASA Ti
Slide 9: Income Statement Summary
Income Statement Summary Net income growth supported by revenue lines despite higher OPEX and risk costs Net Income Attributed To Equity Holders Movement YoY (SARmn) Net Income (SARmn) 5,022 4,963 5,040 +0.4% 166 40 75 131 4,856 5,020 5,000 5,022 196 5,040 +2% QoQ Operating income: (222) SAR +206mn
Slide 10: NSCI & Margin
NSCI & Margin The NSCI margin declined by 27bps YoY as the rise in funding costs surpassed the increase in yields 1,2 Net Special Commission Income Movement YoY (SARbn) NSCI Margin QTR (%) +2% 3.35% +2% 0.3 3.29% 1.2 6.8 6.7 0.7 6.8 0.1 6.9 3.10% 3.10% 3.07% 3.09% 0.4 Int’l 0.2 Int’l (0.1) (1.8) (0.
Slide 11: Fee & Other Income
Fee & Other Income Fee and other income increased by 4% YoY driven by fees from banking services, partially offset by lower international investment-related income Fee & Other Income Movement YoY (SARmn) Fee & Other Income (SARmn) +4% 1,953 2,028 1,738 209 199 88 381 2,028 147 1,953 (19) (20) (172)
Slide 12: Operating Expenses
Operating Expenses Operating expenses up 10% YoY primarily from domestic other G&A and staff costs in addition to increased international costs 1 1 Operating Expenses Movement YoY (SARmn) Operating Expenses (SARmn) 2,340 2,460 +10% 2,238 356 53 2,460 303 392 81 53 49 2,238 1,935 1,949 2,104 (14) +5%
Slide 13: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk Cost of Risk reached 42bps on higher wholesale risk cost 1 Impairment Charge For Financing & Advances Movement YoY Cost of Risk YTD (%) 2024 Guidance 0.3% to 0.5% (SARmn) +32% 0.42% 0.35% 0.43% 267 0.29% 0.20% (22) 654 0.16% 0.12% (85) 0.13% 0.12% 0.07% 49
Slide 14: Credit Quality
Credit Quality NPL ratio continued to improve in 1Q 2024, while NPL coverage remained healthy Credit Impaired Financing Movement YTD (SARbn) NPL Ratio (%) 1.37% 1.36% 1.34% 3.2 10.2 1.30% 1.33% 1.30% 1.21% 1 1.12% -4% 1.17% 1.09% 7.4 0.0 7.1 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 (0.3) (0.0) Group Group, exc
Slide 15: Capitalization & Liquidity
Capitalization & Liquidity Capitalization remains healthy, and liquidity is strong and stable Capitalization Ratios (%) 2024 Guidance Total Eligible Capital Movement QoQ (SARbn) T1 CAR: 18–19% 20.1% +3% 19.8% 19.1% 20.0% 19.3% 19.2% 141.7 5.0 0.2 146.6 18.6% 19.4% 19.1% 18.4% (0.4) 17.2% 17.3% 16.2%
Slide 16: Outlook & Guidance
Outlook & Guidance Our execution-focused strategy and positive economic outlook are keeping us on track for our 2024 goals Macro-Economic Outlook1 FY 2024 Forecast2 SNB Financial Guidance FY 2023 Baseline 1Q 2024 Actual FY 2024 Guidance Status SAR 602bn SAR 625bn Real GDP Growth +2.6% Financing Grow
Slide 17: Q&A
Q&A 1Q 2024 SNB | 1Q 2024 | Earnings Presentation
Slide 18: 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