Saudi Awwal Bank · TADAWUL:1060
Saudi Awwal Bank — Q3 2024 Earnings Presentation
19 slides from Saudi Awwal Bank's earnings presentation, 2024
Slide 1: Saudi Awwal Bank 3Q24 Results
Saudi Awwal Bank 3Q24 Results
Slide 2: CEO's key 3Q24 messages
CEO's key 3024 messages Xd Sis
Slide 3: 3Q24 Key messages
3024 Key messages Strong performance against strategic objectives; strong loan growth and sequential revenue growth despite cost-of-funding pressures, as we flex our strategic levers ae >) ee |; Strategy on track @ Akey player in the Vision 2030 giga-programmes @ Delivered strong loan growth of 19%
Slide 4: 3Q24 financials
30724 financials Jgill SAB
Slide 5: ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▲ ▲ ▼ ▼ ▲ ▲
▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▲ ▲ ▼ ▼ ▲ ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▲ ▼ ▲ ▲ ▲ ▲ ▼ ▲ ▲ ▼ ▼ ▼ ▼ ▲ ▲ ▼ +16% ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▼ ▼ ▼ ▼ ▲ ▲ ▲ 4
Slide 6: Revenue
Revenue We delivered revenue of SAR3.5bn in 3024, growth of 1% OoO as quarterly NIM fell but offset by strong loan growth and supported by robust fee generation, and growth in exchange income Revenue by business: Quarterly trend SARm Other Ml Capital markets MI Treasury Ml weB Ml ciB Strong volume g
Slide 7: NSCI and non-funds revenue
NSCI and non-funds revenue Quarterly NSCI continues to expand 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 Ill NSCI excl. PV unwind (<> Average interest earning ass
Slide 8: Costs
Costs 3024 costs remain stable O00; 9M24 CER ratio of 30.6% comfortably ahead of guidance Recent cost trend, SARm (2, 1,077 1,066 1,075 1,006 ggg.S045 1,051 ai 863881 1022 2022-3022 4022 1023 2023-3023. 4023 1024-2024 3024 costs by type, SARm General and administrative EXPENSES 450, Salaries and emp
Slide 9: Purchased or originated credit impaired
Purchased or originated credit impaired 102 47 49 27 24 27 28 28 27 14 19 9 8
Slide 10: Customer lending and trade assets
Customer lending and trade assets Strong lending growth of 17% YTD and 19% YoY; continue to gain market share; possess a diversified lending portfolio Gross customer lending, SARbn 234.7 247.9 Faster-than- market growth has seen our overall market share grow to 9.4% from 8.9% in 2023 4019 4023 1024
Slide 11: Corporate and institutional business
Corporate and institutional business We continue to capture corporate loan market share with 16% year-to-date growth in the portfolio Gross customer lending, SARbn 1952 193.6 Multinational Mid market Banking ‘and SME Large Institutional corporate Banking Banking 108.9 1747 133.6 4021 4023 1024 2024
Slide 12: Wealth and personal lending business
Wealth and personal lending business Strong lending growth of 16% YTD and 24% YoY, supported by robust mortgage growth Gross customer lending, SARbn 416% Credit cards Other personal lending Mortgages gag} Growth since 2021 Mortgage quarterly originations trend, SARbn 36 24 25 24 1922 a2 43) [14 17 1
Slide 13: Customer deposits and liquidity
Customer deposits and liquidity Funding and liquidity remain robust as we continue to capture deposits; challenges remain in capturing NIBs in the continued high rate environment Customer deposits, SARbn Strong funding base Deposits Ill Loans —®- Reg LDR —— Simple LDR 97% 90% 90% 91% +~—-91% 85% ee
Slide 14: 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 + 174 172 57200 ee. 15.8 165 463 163 165 ag3 193 193 deg ig4 196 19
Slide 15: 2024 guidance
2024 guidance We upgrade guidance on cost efficiency for the full year and expect to be at the lower end of the CoR guidance Balance Sheet Loan YoY growth Annual net interest margin Cost Profitability efficiency ratio RoTE Asset Quality Cost of risk Jail SAB Updated Updated 2024 Original Guidance at
Slide 16: Appendix
x Append gill SAB
Slide 17: SAB 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 18: 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 19: 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