Saudi Awwal Bank · TADAWUL:1060
Saudi Awwal Bank — FY2024 Earnings Presentation
23 slides from Saudi Awwal Bank's earnings presentation, 2024
Slide 1: Saudi Awwal Bank FY24 Earnings call presentation
Saudi Awwal Bank FY24 Earnings call presentation
Slide 2: CEO's key messages
CEO's key 4024 messages Xd Sis
Slide 3: Medium term outlook: 2024 review
Medium term outlook: 2024 review A strong first year performance vs. MTO Some 2024 business highlights Grow sustainable 2024 Revenue returns @ in a changing SAR 1 4... T.. environment eoeoe Significantly reduced NIM sensitivity A revived strength in home finance Diverse lending portfolio Capturing t
Slide 4:
Slide 5: 4Q24 Key messages
4024 Key messages Strong performance against strategic objectives; NSCI, revenues and profits growing sustainably whilst we continue to capture market share ae >) ee |; Strategy on track @ Akey player in the Vision 2030 giga-programmes @ Delivered strong loan growth of 20% YTD and a further 3% QoO i
Slide 6: 4Q24 financials
40724 financials Jgill SAB
Slide 7: ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲
▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▼ ▼ ▼ ▲ ▼ ▲ ▲ ▲ ▲ ▲ ▼ ▼ ▼ ▼ ▲ ▲ ▲ ▲ ▲ ▲ +15% ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▲ ▲ 6
Slide 8: Revenue
Revenue Sequential revenues continue to grow together with 2% growth in NSCI QoQ; revenues are significantly higher than pre-rate rise levels and the balance sheet structure will allow revenues to continue to grow hereon in Quarterly revenue trend from 2019, SARbn Revenue by business: Recent quarter
Slide 9: NSCI and non-funds revenue
NSCI and non-funds revenue NIM stabilisation in the fourth quarter together with the faster-than-market loan growth has resulted in 2% sequential growth in NSCI NSCI, SARm and Average interest earning assets, SARbn PV unwind Ill NSCI excl. PV unwind (<> Average interest earning assets, SARbn 2.933 2
Slide 10: Costs
Costs 4024 costs remain stable QoQ; FY24 CER ratio of 30.6% comfortably ahead of guidance and close to pre-merger levels Cost efficiency ratio through the merger, % Recent cost trend, SARm _ @_ 1,077 1,066 1,075 1,074 1,091 1,006 ggg 1.048 1,051 a1 863881 Cost efficiency ratio, % 1022 2022 3022 4022
Slide 11: Purchased or originated credit impaired
Purchased or originated credit impaired 102 47 49 27 24 27 23 28 27 19 9 14 10 10
Slide 12: Customer lending
Customer lending Strong lending growth of 20% YTD; continue to gain market share; we possess a diversified lending portfolio Gross customer lending, SARbn . Gross customer lending, by sector <p + Faster-than- market growth Government has seen our Othe Finance overall market Noraeaes Agri and fishing
Slide 13: Corporate and institutional business
Corporate and institutional business We continue to capture corporate loan market share with 19% year-to-date growth Gross customer lending, SARbn 3 198.5 an 185.2 193.6 166.9 * 133.6 ar 4028 1024 2024 3024 4024 13.0%) Market share (12.4% 12.4% 12.6% 12.6% Originations’ momentum remains extremely st
Slide 14: Wealth and personal lending business
Wealth and personal lending business Strong lending growth of 21% YTD, supported by robust mortgage growth Gross customer lending, SARbn v 63.8 65.4 ” @ 54.0 Credit cards Other personal lending Morte lortgages Growth since 2021 4021 4023 1024 2024 3024 4024 Mortgage 36 quarterly originations smewhee
Slide 15: 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 Stabilising NIBs ratio Demand deposit balances and ratio 4024 B® Deposits ——
Slide 16: 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 18.3 15.0 see 193 193 19.7 20.0 196 19.7 " 74 172 ee 1e2 163 166 i0
Slide 17: Post AT1 coupon payment
1. Post AT1 coupon payment 16
Slide 18: 2025 guidance
2025 guidance Delivery of targets since the start of the strategy has grown with our growth strategy translating to sustained growth in returns; we also remain firmly on track for delivery of our medium-term targets Balance Sheet Loan YoY growth Profitability Annual net interest margin Cost efficien
Slide 19: Appendix
x Append gill SAB
Slide 20: 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 21: 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 22: 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
Slide 23: Medium term outlook: 2024 to 2026
Medium term outlook: 2024 to 2026 > > Sustainably gain market Grow sustainable returns nadly g : : share in lending over the in a changing environment next 3 years The leading international bank in the Kingdom Alawwal (the best) in customer experience Be future-ready by leading in digital and ESG Al