Bank Aljazira · TADAWUL:1020
Bank Aljazira — 1H 2025 Earnings Presentation
51 slides from Bank Aljazira's earnings presentation, 2025
Slide 1: Bank AlJazira Investor Presentation 1H 2025
Bank AlJazira Investor Presentation 1H 2025
Slide 2: Agenda
Bank AlJazira – At a glance 3 Market Trends 8 Strategy Refresh 11 Sustainability 16 Financial Performance 20 Appendix 49
Slide 3: Bank AlJazira — At a glance
Bank AlJazira — At a glance =a = Vw Sessa: yy | LI] Nh | | ‘Qt eee yy ‘iN - Typ
Slide 4: Bank AlJazira is a leading Shariah compliant financial group in KSA
At a Glance At a glance Environment Strategy Sustainability Financials Appendix Bank AlJazira is a leading Shariah compliant financial group in KSA 11 Regions in KSA 73 Branches Channels 27 Fawri Centers 576 ATMs 5 1 AlJazira Capital Co. Affiliated AlJazira Securities Ltd. Aman Dev. & Real Estate In
Slide 5: Bank AlJazira's history began in 1975
History At a glance Environment Strategy Sustainability Financials Appendix Bank AlJazira’s history began in 1975 Shariah compliant 70 +branches 1975 1992-94 1998 2007 2009 2019 2023-24 Incorporated Restructuring process Strategic shift from Full conversion into From 24 to 94 branches New 2019-23 st
Slide 6: Bank AlJazira enjoys a well-diversified business mix
Business Mix At a glance Environment Strategy Sustainability Financials Appendix Bank AlJazira enjoys a well-diversified business mix Group Structure Total Assets Composition (%) 2Q 2025 Corporate 2.9% 0.2% Retail 32.1% 34.6% Treasury Personal Treasury Insurance Brokerage & Asset Management 30.1% Ba
Slide 7: Strong momentum, driven by solid asset growth, margin and fee income improvement
1H 2025 Highlights At a glance Environment Strategy Sustainability Financials Appendix Strong momentum, driven by solid asset growth, margin and fee income improvement 1 Delivered strong financial results, with net income up 20% YoY to ¥ 743 Mn and operating income up 22%, driven by broad-based busi
Slide 8: Market Trends
Spal Clin > BANK ALJAZIRA Market Trends
Slide 9: Saudi Arabia continues to benefit from a favorable operating environment
KSA Macro Environment At a glance Highlights Environment Strategy Strategy Financials Sustainability Guidance Financials Appendix Appendix Saudi Arabia continues to benefit from a favorable operating environment… Real GDP Growth (%) Brent Oil Price / Barrel ($ ) 7.5% 99.0 5.6% 3.8% 3.9% 3.6% 3.9% 3.
Slide 10: Banking industry well-positioned to capitalize on this momentum
KSA Banking Industry At a glance Highlights Environment Strategy Strategy Financials Sustainability Guidance Financials Appendix Appendix …with the banking industry well-positioned to capitalize on this momentum Total Loan Growth (%) Total Deposits Growth (%) 12.9% 11.8% 14.4% 12.7% 9.4% 10.6% 10.5%
Slide 11: Strategy Refresh
Strategy Refresh
Slide 12: Our purpose remains to Enhance Lives Through Financial Wellbeing
Purpose, Values and Objectives At a glance Highlights Environment Strategy Strategy Financials Sustainability Guidance Financials Appendix Appendix Our purpose remains to Enhance Lives Through Financial Wellbeing Our values: We innovate for the Future… We succeed through Partnership Creating distinc
Slide 13: Advancing on the transformation agenda of our 5-year strategy
Refreshed Strategy At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix We are advancing on the transformation agenda of our 5-year strategy The Refreshed Strategy Business Lines Vision Where are we heading?
Slide 14: Strategic execution progresses across business lines and technology enablers
Strategy Progress At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Strategic execution progresses across business lines and technology enablers Corporate Initiatives Achievements Non-funded assets segmen
Slide 15: Digitization driving business innovation
Digital Progress Snapshot At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Digitization driving business innovation Key achievements Retail segment Digital A/C opened through 64% Penetration mobile (%)
Slide 16: Sustainability
Spal Clin > BANK ALJAZIRA Sustainability
Slide 17: Sustainability KPIs and materiality matrix
Sustainability KPIs At a glance Highlights Environment Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Bank AlJazira’s goal is to embed sustainability into our DNA Sustainability Key Performance Indicators of Bank AlJazira: Key Material Topics an
Slide 18: Four key sustainability pillars
Sustainability Pillars At a glance Highlights Environment Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix We identified 4 key sustainability pillars to create both business value and sustainable impact Sustainability Pillars: 01 02 03 04 Sustaini
Slide 19: BAJ is driving meaningful ESG outcomes across the business
ESG Highlights At a glance Highlights Environment Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix BAJ is driving meaningful ESG outcomes across the business Environmental Green Financing Waste Management Recycling Initiative Reduced Paper Usage R
Slide 20: Financial Performance
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Slide 21: Assets expanding by 6% YTD and 3% QoQ driven by financing
Balance Sheet: Summary & Total Assets At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Balance sheet | Assets expanding by 6% YTD and 3% QoQ driven by financing growth Balance Sheet Total Assets Movement
Slide 22: Financing increased 7% driven by commercial and consumer loan growth
Balance Sheet: Financing At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Financing | Financing increased 7% driven by both commercial and consumer loan growth Financing Composition (%) 2Q 2025 Financing
Slide 23: NPL | Credit quality remains healthy
NPL At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix NPL | Credit quality remains healthy NPL Ratio (%) 2Q 2025 NPL Ratio by type (%) 2Q 2025 Management commentary The NPL ratio increased by 26bps to 1.4
Slide 24: NPL coverage stands at 162%
NPL Coverage At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix NPL coverage | Stands at 162%, providing ample buffer against credit losses NPL Coverage Ratio (%) 2Q 2025 NPL Coverage Ratio by type (%) 2Q
Slide 25: Investments | Optimizing portfolio with fixed-rate assets
Balance Sheet: Investments At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Investments | Optimizing portfolio by replacing maturities with fixed-rate assets at favorable rates Investments Composition by
Slide 26: Deposits increased by 6% YTD driven by time deposits
Balance Sheet: Customers’ Deposits At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Deposits | Increased by 6% YTD driven by time deposits Customers' Deposits (¥ Bn) 2Q 2025 Customers' Deposits Movement
Slide 27: Liquidity | Substantial buffers to accommodate future growth
Liquidity At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Liquidity | Substantial buffers to accommodate future growth Basel III Leverage Ratio (%) 2Q 2025 Loans to Customers' Deposit Ratios (%) 2Q 2025
Slide 28: Capitalization | Capital ratios remained broadly stable
Capitalization At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Capitalization | Capital ratios remained broadly stable in 1H 2025 Capital Ratios (%) 2Q 2025 Management Commentary The total capital adequ
Slide 29: RWA | Growth offset by Tier 1 Sukuk issuance
CAR and RWA At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix RWA | Rapid RWA growth in 1Q 2024 was offset by the issuance of Tier 1 Sukuk and stabilized thereafter Capital Adequacy Ratio Movement YTD (%)
Slide 30: Income statement | 20% net income growth
Income Statement: Summary & Net Income At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Income statement | 20% net income growth from top-line expansion Income Statement Quarterly Net Income (¥ Mn) 2Q 20
Slide 31: Operating income | 22% YoY growth with positive jaws
Income Statement: Operating Income & Expenses At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Operating income | 22% YoY growth with positive jaws from strong revenue momentum Total Operating Income (¥
Slide 32: Net financing & investment income up 21%
Income Statement: Net Financing and Investment Income At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Net financing & investment income | Up 21% from asset growth and margin improvement Net Financing &
Slide 33: Net margin improvement due to lower funding costs
Income Statement: Net Margin At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Net margin | Improvement in 1H 2025 due to lower funding costs following the rate cuts Management Commentary Net Margin (%) 1
Slide 34: Fee & other income boosted by banking services and exchange income
Income Statement: Fee & Other Income At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Fee & other income | Boosted by fees from banking services and exchange income Fee & Other Income Movement YoY (¥ Mn)
Slide 35: Operating expenses | Cost-to-income ratio improving
Income Statement: Operating Expenses At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Operating expenses | Cost-to-income ratio improving YoY on positive jaws Operating Expenses Composition (%) 1H 2025 O
Slide 36: Cost of risk increased by 10bps YoY to 0.38%
Income Statement: Impairments At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Cost of risk | Increased by 10bps YoY to 0.38%, impacted by higher commercial impairments Cost of Risk (%) 1H 2025 Impairmen
Slide 37: Profitability | Returns are improving YoY
Income Statement: Profitability At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Profitability | Returns are improving YoY ROAE (%) 1H 2025 ROAA (%) 1H 2025 9.35% 9.14% 1.11% 1.09% 8.56% Normalized 1.05%
Slide 38: Segmental Performance
Segmental Performance
Slide 39: Segments | Diverse mix with well-balanced growth
Segmental Overview At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Segments | Diverse mix with well-balanced growth across segments Total Assets Movement YTD (¥ Bn) 2Q 2025 Total Assets Composition (%)
Slide 40: Corporate segment
Corporate Segment At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Corporate segment | The corporate segment reports 10% growth in net income and 8% growth in assets Management Commentary Total Assets (¥
Slide 41: Retail segment
Retail Segment At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Retail segment | 28% rise in net income driven by higher NFI and fee income Management Commentary Total Assets (¥ Bn) Total Liabilities (¥
Slide 42: Brokerage and asset management segment
Brokerage & Asset Management Segment At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Brokerage and asset management segment | Robust 43% YoY income growth Management Commentary Assets Under Management (
Slide 43: Treasury segment
Treasury Segment At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Treasury segment | Higher fee and other income offset by decrease in net financing and investment income Management Commentary Total Asse
Slide 44: Historical trends
Historical trends tm hag
Slide 45: Historical Trends
Historical Trends At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Historical Trends Total Assets (¥ Bn) Financing (¥ Bn) Customers' Deposits (¥ Bn) +13% CAGR +16% CAGR +12% CAGR 148.9 96.9 108.2 129.6 8
Slide 46: Key Ratios
Key Ratios At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Key Ratios Net Margin (%) Cost of Risk (%) Cost to Income (%) Share of Fee & Other Income in Operating Income (%) 2.42% 58.2% 2.63% 2.62% 56.0%
Slide 47: Guidance
Spal Clin > BANK ALJAZIRA
Slide 48: FY25 guidance unchanged
Guidance At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Guidance | 1H 2025 results aligned with expectations, FY25 guidance unchanged Guidance Metric FY 2024 Actual 1H 2025 Actual FY 2025 Guidance Driv
Slide 49: Appendix
Spill lis BANK ALJAZIRA
Slide 50: Connect with us
Contacts At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Connect with us IR Contacts Latest Reports IR email: IR@BankAlJazira.com Annual Report 2024 Sustainability Report 2024 Muhammad Majid Khan, Head
Slide 51: Disclaimer
Disclaimer At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Disclaimer The Bank Aljazira (BAJ) prepared this presentation on a proprietary basis as general background information about the activities of