Saudi Investment Bank · TADAWUL:1030

Saudi Investment Bank — The Saudi Investment Bank — H1 2024 Earnings Presentation

26 slides from Saudi Investment Bank's earnings presentation, Aug 21, 2024

  1. Slide 1: Earnings Presentation 1H 2024

    Earnings Presentation 1H 2024 21 August 2024 The Saudi Investment Bank – 2Q 2024 Earnings Presentation P. 1

  2. Slide 2: Contents

    Contents 1H 2024 Performance Highlights 3 Strategy 4 Financial Performance 10 2024 Guidance 22 Q&A 24 Appendix 25 The Saudi Investment Bank – 2Q 2024 Earnings Presentation P. 2

  3. Slide 3: Growth momentum sustained in 1H 2024 demonstrating solid progress

    Growth momentum sustained in 1H 2024 demonstrating solid progress Loans Deposits Loan growth of 12% YTD driven by corporate segment, while deposits grew 15% +12% YTD +15% YTD YTD on higher time deposits The growth in operating income was underpinned by 16% YoY growth in assets, and SAR 90.6 bn  SAR

  4. Slide 4: Strategy

    Strategy The Saudi Investment Bank – 2Q 2024 Earnings Presentation P. 4

  5. 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… 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

  6. Slide 6: Strategic priorities for each function

    …which is translated into strategic priorities for each function Corporate Public Consumer Private Banking Institutions Banking Banking • Segment clients, offer • Identify focus customer segments • Optimize segmentation and • Strengthen value prop. across daily differentiated coverage to acquire cov

  7. Slide 7: Implementation of Strategy 2027 is in full swing

    Implementation of Strategy 2027 is in full swing в Bank-wide transformation Each function has progressed well on strategic projects 1 40+ strategic cross-functional projects initiated Launched 4 dedicated mortgage centers with mortgage expert staff; Activated off-plan mortgage product announcing par

  8. Slide 8: SAIB Venture Studio is operational and its first product, SAIB Travel App, has grown rapidly

    SAIB Venture Studio is operational and its first product, SAIB Travel App, has grown rapidly since pilot launch SAIB Venture Studio.. SAIB Travel App has received top ratings on App Store and Google Play ... A start-up or venture factory 200,000+ 120,000+ supported by significant investment appetite

  9. 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 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

  10. Slide 10: Financial Performance 1H 2024

    Financial Performance 1H 2024 The Saudi Investment Bank – 2Q 2024 Earnings Presentation P. 10

  11. Slide 11: SAIB is focused on delivering strong results across key performance indicators

    SAIB is focused on delivering strong results across key performance indicators 1H 2024 DRIVERS LOANS & ADVANCES SAR 90.6bn +12% YTD Strong growth in Corporate (+13%) and Private Banking (+21%) loans Balance Sheet DEPOSITS SAR 95.4bn +15% YTD Strong growth in IBDs (+25%) mainly from corporate and ret

  12. Slide 12: Balance sheet momentum funded largely by deposits

    Balance sheet momentum funded largely by deposits Total assets increased by 10% YTD as loans grew 12% and investments rose 8%, further supported by increased balances with SAMA (+6%) which were partially offset by Loans & Advances (SARbn) Retail Corporate Other a reduction in bank placements (-18%)

  13. Slide 13: Loan growth continues to gain momentum driven by corporate lending

    Loan growth continues to gain momentum driven by corporate lending 12% YTD growth in loans driven by 13% increase in +6% Loans & Advances by Segment (%) corporate lending due to widespread growth across sectors and further expansion of private banking +7%  +1% Total Loans QoQ lending. Active partic

  14. Slide 14: Investments grew 8% YTD driven by acquisition of high-quality, fixed-rate debt securities

    Investments grew 8% YTD driven by acquisition of high-quality, fixed-rate debt securities Increase in investments during 1H 2024 mainly driven Investments, Gross by Type (%) Investments by Accounting Classification by new securities purchased to lock-in benefits from high (%) rate environment (mainly

  15. Slide 15: Customer deposits increased 15% YTD mainly driven by IBDs

    Customer deposits increased 15% YTD mainly driven by IBDs Deposits grew 15% during 1H 2024, mainly driven by Deposits by Segment (%) increased interest-bearing deposits Corporate deposits increased by 31%, while Retail +8% Deposits QoQ  deposits were up 20% YTD; Treasury and Investment deposits dec

  16. Slide 16: 9% growth in 1H 2024 earnings driven by increased fee and other income

    9% growth in 1H 2024 earnings driven by increased fee and other income Net income increased 9% YoY in 1H 2024 driven by 3% growth in operating income, further aided by positive operating leverage from a modest 2% increase in operating Total Operating Income Movement YoY (SARmn) expenses and 10% decr

  17. Slide 17: NSCI stable YoY as 13% growth in earning assets was offset by NIM contraction

    NSCI stable YoY as 13% growth in earning assets was offset by a 36bps NIM contraction NSCI was stable YoY as 13% growth in average NIM NIM Asset yield CoF Average Earning Assets (SARbn) Consumer loans earnings assets for 1H 2024 was offset by NIM 2.77%  Corporate & other loans contraction Investmen

  18. Slide 18: Growth in fee and other income of 22% driven by investment income and banking services fees

    Growth in fee and other income of 22% driven by investment income and banking services fees Fee & other income increased 22% YoY in 1H 2024, Fee & Other Income Movement YoY (SARmn) mainly driven by investment-related income and supported by growth of banking services fees Foreign exchange income dec

  19. Slide 19: Marginal increase in operating expenses

    Marginal increase in operating expenses Operating expenses increased 2% YoY in 1H 2024, Operating Expenses Composition Operating Expenses (SARmn) mainly due to increases in general & administration and employee-related expenses (%) - 1H 24 Premises costs declined as a previously rented facility was

  20. 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 144mn for 1H 2024, Impairments (SARmn) Impairment for loans Cost of Risk decreasing 10% YoY from SAR 161mn in 1H 2023. Cost of risk decreased to 0.33% in 1H 2024 Non-performing loans ratio decreased by 3 bps YTD to

  21. Slide 21: Solid liquidity, funding and capital position with adequate buffers

    Solid liquidity, funding and capital position with adequate buffers LCR declined by 21.2 ppt during 1H 2024 to 174.6%, Liquidity Ratios LCR NSFR Loans to Deposits Ratio SAMA LTD Headline LTD while NSFR decreased 0.3 ppt to 112.8% As of 1H 2024, the SAMA regulatory LTD ratio was 97.0% 95.7% 93.9% com

  22. Slide 22: 1H 2024 Results and 2024 Guidance

    1H 2024 Results and 2024 Guidance The Saudi Investment Bank – 2Q 2024 Earnings Presentation P. 22

  23. Slide 23: 1H 2024 financial performance in line with expectations and FY guidance unchanged

    1H 2024 financial performance was in line with expectations and FY guidance is unchanged 2023 Actual 1H 2024 Actual 2024 GUIDANCE GUIDANCE REVISIONS Balance Sheet LOANS & ADVANCES +17% +12% > 15.0% High teens Revised upwards to high teens in light of double-digit growth in YoY YoY YTD 1H 2024 NET IN

  24. Slide 24: Q&A

    Q&A The Saudi Investment Bank – 2Q 2024 Earnings Presentation P. 24

  25. Slide 25: Appendix

    Appendix The Saudi Investment Bank – 2Q 2024 Earnings Presentation P. 25

  26. Slide 26: 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 – 2Q 2024 Earnings Presentation P. 26

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