Saudi Investment Bank · TADAWUL:1030
Saudi Investment Bank — The Saudi Investment Bank — Q1 2025 Earnings Presentation
44 slides from Saudi Investment Bank's earnings presentation, May 2025
Slide 1: Investor Presentation 1Q 2025
Investor Presentation 1Q 2025 May 2025 The Saudi Investment Bank – 1Q 2025 Investor Presentation
Slide 2: Contents
Contents SAIB Overview 3 KSA Operating Environment 8 Strategy 11 Financial Performance 18 Guidance 30 Segmental Performance 32 Appendix 39 The Saudi Investment Bank – 1Q 2025 Investor Presentation
Slide 3: SAIB Overview
SAIB Overview The Saudi Investment Bank – 1Q 2025 Investor Presentation
Slide 4: Strong corporate and private banking franchise with well capitalized balance sheet
Strong corporate and private banking franchise with well capitalized balance sheet Number of Branches Number of Customers Key Stock Market Highlights -1 branch YTD +1% increase YTD ¥ 18.2 bn +13.3% 25.6% 50 942k Market Cap. Share Price (in last 1 year) owned by General Organization for Social In
Slide 5: Nearly half a century of excellence: tracing our journey from 1976 into the future
Nearly half a century of excellence: tracing our journey from 1976 into the future Joint stock company SAIB successfully Share Purchase Treasury shares Launched a new 5-year Major share capital S60 Ventures Fund - established by Royal completed its IPO on Agreement with J.P. previously held by J.P.
Slide 6: Robust financial performance with double digit net profit growth and improved profitability
Robust financial performance with double digit net profit growth and improved profitability Total Operating Income (¥ mn) Operating Expenses (¥ mn) Net Income (¥ mn) +10% CAGR +9% CAGR +19% CAGR 3,967 4,178 1,657 1,735 1,957 1,445 1,762 3,278 1,214 1,270 1,508 2,846 2,753 980 1,062 2020 2021 2
Slide 7: Resilient asset quality, adequate capital and liquidity position to accelerate growth and returns
Resilient asset quality, adequate capital and liquidity position to accelerate growth and returns Loans & Advances (¥ bn) Deposits (¥ bn) ROE (%) +16% CAGR +12% CAGR +639bps 99.5 94.0 12.5% 13.1% 80.8 83.2 10.6% 68.9 69.6 57.8 60.1 61.5 7.5% 55.1 6.7% 2020 2021 2022 2023 2024 2020 2021 2022 20
Slide 8: Operating Environment
Operating Environment The Saudi Investment Bank – 1Q 2025 Investor Presentation
Slide 9: The Saudi Economy is healthy, though GDP growth in 2025 impacted by lower oil contribution
The Saudi Economy is healthy, though GDP growth in 2025 impacted by lower oil contribution Real GDP Growth (%) Oil Prices (USD) Brent Oil Price / Barrel (avg) WTI Oil Price / Barrel (avg) 3.0% 63.7WTI 82.3 79.9 3.0% 3.7% 3.6% 77.6 70.7 1.3% 75.5 67.3 -0.8% 67.3 67.7 63.7 63.3 2023 2024 2025 2026 202
Slide 10: The Saudi Banking sector is profitable and showing solid growth momentum
The Saudi Banking sector is profitable and showing solid growth momentum, though liquidity is tighter amidst higher rate environment Bank Credit (¥ bn) Bank Deposits (¥ bn) Profitability (%) ROE ROA 15.0% ROE 14.7% +14% CAGR +9% CAGR 15.0% 13.7% 2,956 3,102 2,692 2,804 12.9% 2,584 2,295 2,473 2,
Slide 11: Strategy
Strategy The Saudi Investment Bank – 1Q 2025 Investor Presentation
Slide 12: 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 Vision To be the trusted bank for our clients We build long term relationships with clients, create an unrivaled work environment for our people and deliver Mission consistent value for our shareholders Corporate Banking
Slide 13: Strategy 2027 is transforming the bank through 40+ initiatives across 9 businesses and functions
Strategy 2027 is transforming the bank through 40+ initiatives across 9 businesses and functions в Focus areas Consumer & Private Corporate Banking Public Institutions Banking Core 1 Strategic segmentation & Accelerate Increase penetration Build differentiated and grow DDA and fees segments differen
Slide 14: Strategy 2027 has achieved many milestones to date...
Strategy 2027 has achieved many milestones to date... Consumer & Private Corporate Banking Banking Public Institutions • Enhanced corporate client segmentation and • Redesigned retail segmentation • Building best-in-class CRM platform: phase-1 coverage • Streamlined account opening and KYC deployed
Slide 15: ...and has set ambitious goals to achieve during the current year
…and has set ambitious goals to achieve during the current year Consumer & Private Corporate Banking Banking Public Institutions Launch revamped account opening, trade Launch new segments with improved value Launch revamped account opening journey process and enhanced operating model propositi
Slide 16: S60 Ventures Fund
S60 Ventures Fund managed by Alisthithmar Capital - a $100 Million fund for promising fintech startups A WELL CAPITALIZED, FINTECH‒FOCUSED VC FUND WITH STRONG TIES ACROSS THE ECOSYSTEM Mission Vision Values We want to empower visionary Our goal is to be the trusted Rooted in principle capital, we fo
Slide 17: With our strategy, we aim to grow market share, increase fee income and improve efficiency to drive higher ROE
With our strategy, we aim to grow market share, increase fee income and improve efficiency to drive higher ROE Grow Market Share in Commercial Loans Grow Market Share in Retail Loans SAIB has already started to close the gap Commercial KSA Market Share towards KSA peers’ return on equity Retail KSA
Slide 18: Financial Performance
Financial Performance 1Q 2025 The Saudi Investment Bank – 1Q 2025 Investor Presentation
Slide 19: SAIB is focused on delivering strong results across key performance indicators
SAIB is focused on delivering strong results across key performance indicators 1Q 2025 DRIVERS LOANS & ADVANCES ¥ 104.1bn +5% YTD Strong growth in Corporate (+5%) and Private Banking (+8%) loans Balance Sheet DEPOSITS ¥ 101.7bn +8% YTD IBD growth (+15%) driven by corporate and retail customers, part
Slide 20: Balance sheet momentum from financing growth, funded largely by deposits
Balance sheet momentum from financing growth, funded largely by deposits Total assets increased by 5% YTD as loans grew 5%, and supported by increased balances with SAMA (+17%) and bank placements (+59%) Loans & Advances (¥ bn) Retail Corporate Other Total liabilities increased 5% YTD, driven by 8%
Slide 21: Loan growth momentum continues, driven by corporate and private banking lending
Loan growth momentum continues, driven by corporate and private banking lending 5% YTD growth in loans driven by 5% increase in +6% Loans & Advances by Segment (%) corporate lending due to widespread growth across sectors and further expansion of private banking lending +5% +1% Total Loans YTD Act
Slide 22: Investments have remained stable at SAR 40.4 billion
Investments have remained stable at ¥ 40.4 billion Investments have remained stable since the beginning Investments, Gross by Type (%) Investments by Accounting Classification (%) of the year 96% of investments were fixed rate debt securities 3% 1% 1% 1% 55% of investments were accounted for amortiz
Slide 23: Customer deposits increased 8% YTD driven by IBDs
Customer deposits increased 8% YTD driven by IBDs Deposits grew 8% during 1Q 2025 due to increase in interest-bearing deposits Deposits by Segment (%) Corporate deposits increased by 16%, and Retail +8% Deposits YTD deposits by 10% YTD IBDs rose 15% YTD from inflows to time deposits amid 12% preva
Slide 24: 14% growth in 1Q 2025 earnings driven by increased operating income and lower risk cost
14% growth in 1Q 2025 earnings driven by increased operating income and lower risk cost Net income increased 14% YoY in 1Q 2025 driven by 6% growth in operating income, further aided by a 25% decrease in impairment charges Net Income Movement YoY (¥ mn) Return of Equity increased 84 bps YoY to 13.0%
Slide 25: NSCI grew 5% YoY as 20% growth in average earning assets was partly offset by NIM contraction
NSCI grew 5% YoY as 20% growth in average earning assets was partly offset by a 34bps NIM contraction NSCI grew 5% YoY as 20% growth in average earning NSCI Movement YoY (¥ mn) NIM Movement YoY FY 2025 Guidance assets for 1Q 2025 and was partly offset by NIM NIM: 2.45% - 2.55% contraction The NIM de
Slide 26: Growth in fee and other income of 10% driven by foreign exchange income
Growth in fee and other income of 10% driven by foreign exchange income Fee & other income increased 10% YoY in 1Q 2025, Fee & Other Income Movement YoY (¥ mn) mainly driven by Foreign exchange income Foreign exchange income increased by 27% YoY in 1Q 2025 +10% Fee income from banking services ros
Slide 27: Marginal increase in operating expenses improving the cost to income ratio
Marginal increase in operating expenses improving the cost to income ratio Operating expenses increased 1% YoY in 1Q 2025 Operating Expenses Composition Operating Expenses (¥ mn) driven by higher employee-related costs, rent and premises-related expenses, and depreciation & (%) - 1Q 25 amortization
Slide 28: Credit quality remained stable with COR and NPL ratio at low levels
Credit quality remained stable with COR and NPL ratio at low levels Total impairments of ¥ 61 mn for 1Q 2025, Impairments (¥ mn) Impairment for loans Cost of Risk decreasing 25% YoY from ¥ 82 mn in 1Q 2024 FY 2025 Guidance COR: 0.30% - 0.35% Cost of risk decreased 15 bps YoY to 0.24% in 1Q 2025 NPL
Slide 29: Solid liquidity, funding and capital position with adequate buffers
Solid liquidity, funding and capital position with adequate buffers LCR increased by 28.6 ppt during 1Q 2025 to 193.3%, Liquidity Ratios LCR NSFR Loans to Deposits Ratio SAMA LTD Headline LTD while NSFR increased 0.7 ppt to 109.4% As of the end 1Q 2025, the SAMA regulatory LTD ratio 105.8% was comfo
Slide 30: Guidance
Guidance The Saudi Investment Bank – 1Q 2025 Investor Presentation
Slide 31: 1Q 2025 financial results were in line with expectations and FY guidance is unchanged
1Q 2025 financial results were in line with expectations and FY guidance is unchanged 2024 Actual 1Q 2025 Actual 2025 Guidance Guidance revisions Balance Sheet LOANS & ADVANCES +23% +5% >>15.0% 15.0% Guidance unchanged YoY YoY YTD NET INTEREST MARGIN 2.68% 2.45% Approx. 2.45% - 2.75% 2.55% Guidance
Slide 32: Segmental performance
Segmental performance The Saudi Investment Bank – 1Q 2025 Investor Presentation
Slide 33: Income and profit growth driven by strong performance of Corporate and Treasury & Investments
Income and profit growth driven by strong performance of Corporate and Treasury & Investments Total Operating Income Movement YoY (¥ mn) Net Income Before Zakat Movement YoY (¥ mn) +6% +14% 995 55 26 2 1,050 56 35 2 585 511 (23) (4) (5) (14) 1Q 24 Retail Corporate Treasury Asset Mgmt. Other 1Q 2
Slide 34: Balanced contributions to Operating and Net Income from Retail, Corporate, and Treasury & Investment
Balanced contributions to Operating and Net Income from Retail, Corporate, and Treasury & Investment, with dominance of corporate loans and retail Deposits Total Operating Income (¥ mn) Retail Corporate Net Income Before Zakat (¥ mn) Retail Corporate Treasury & Investment Asset Mgmt. & Brokerage Tre
Slide 35: Strong Corporate net income growth of 25% YoY for 1Q 2025
Strong Corporate net income growth of 25% YoY for 1Q 2025 from higher operating income and lower impairments ¥ Million 1Q 2025 4Q 2024 Δ 1Q 2024 Δ Net Income Before Zakat Movement YoY (¥ mn) Net Special Commission Income 374 329 +14% 328 +14% Fee & other income 54 60 -11% 45 +21% +25% 45 9 11 278
Slide 36: Retail net income for 1Q 2025 decreased 9% YoY
Retail net income for 1Q 2025 decreased 9% YoY from lower operating income, partly offset by lower impairments ¥ Million 1Q 2025 4Q 2024 Δ 1Q 2024 Δ Net Income Before Zakat Movement YoY (¥ mn) Net Special Commission Income 338 342 -1% 357 -5% Fee & other income 33 25 +32% 37 -12% -9% 154 8 141 Tot
Slide 37: Treasury and Investments net income for 1Q 2025 grew by 22% YoY
Treasury and Investments net income for 1Q 2025 grew by 22% YoY due to higher operating income ¥ Million 1Q 2025 4Q 2024 Δ 1Q 2024 Δ Net Income Before Zakat Movement YoY (¥ mn) Net Special Commission Income 174 228 -24% 162 +7% Fee & other income 80 97 -17% 66 +22% +22% Total operating income 254
Slide 38: Asset management and brokerage net income for 1Q 2025 declined by 15% YoY
Asset management and brokerage net income for 1Q 2025 declined by 15% YoY mainly due to lower fee & other income, reflecting reduced markets activity ¥ Million 1Q 2025 4Q 2024 Δ 1Q 2024 Δ Net Income Before Zakat Movement YoY (¥ mn) Net Special Commission Income 18 18 -1% 16 +10% Fee & other income 4
Slide 39: Appendix
Appendix The Saudi Investment Bank – 1Q 2025 Investor Presentation
Slide 40: Sustainability embedded in SAIB's core business and governance
Sustainability has for nearly 10 years been embedded in SAIB's core business and governance, and is now freshly aligned with the Saudi Vision 2030 sustainable development goals Employee capital 1 Social capital Customer capital Takleef (Responsibility) Awn (Helping Others) Responsible banking practi
Slide 41: Core components of SAIB's sustainable finance framework
Core components of SAIB’s sustainable finance framework Use of proceeds categories under SAIB’s sustainable finance framework Use of Proceeds Project Selection & Management of Reporting Evaluation Proceeds 1 Renewable Energy • Allocation of an amount • A Sustainable Finance • Proceeds will be • Annu
Slide 42: Strengthening our value proposition through a prestigious partnership with Real Madrid
Strengthening our value proposition through a prestigious partnership with Real Madrid Through this partnership, SAIB aims to introduce a unique customer experiences focusing on customer centricity and personalized experiences: • General Customer Experiences. SAIB offers its customers exceptional fo
Slide 43: Disclaimer
Disclaimer The Saudi Investment Bank (SAIB) prepared this presentation on a proprietary basis as general background information about the activities of SAIB. The information contained herein is given in summary form and for discussion purposes only. Some of the information that is relied upon by SAI
Slide 44: SAIB Investor Relations
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 The Saudi Investment Bank – 1Q 2025 Investor Presentation P. 44
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