Saudi Awwal Bank · TADAWUL:1060
Saudi Awwal Bank — Q1 2024 Earnings Presentation
17 slides from Saudi Awwal Bank's earnings presentation, 2024
Slide 1: Saudi Awwal Bank 1Q24 Results
Saudi Awwal Bank 1Q24 Results
Slide 2: CEO's key 1Q24 messages
CEO's key 1024 messages Xd Sis
Slide 3: 1Q24 Key messages
1024 Key messages eS) ee i ee 2) ee | ee © Strategy on track @ Akey player in the Vision 2030 giga-programmes @ Delivered strong loan growth of 19% YoY and 6% QoQ 32% growth in our mortgage portfolio YoY and 10% QoQ @ Leading market position in off-balance sheet trade assets with 24% market share 19
Slide 4: 1Q24 financials
1024 financials Jgill SAB
Slide 5: ▲ ▲ ▼ ▼ ▲ ▼ ▲ ▲ ▼ ▲ ▲ ▲ ▲ ▼
▲ ▲ ▼ ▼ ▲ ▼ ▲ ▲ ▼ ▲ ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▼ ▲ ▲ ▲ ▼ ▲ ▲ ▲ +16% ▲ ▲ ▲ ▲ ▲ ▼ ▲ ▲ ▼ ▼ ▲ ▲ 4
Slide 6: Revenue
Revenue We delivered a record SAR3.4bn of revenue in 1024, growth of 7%; quarterly NIM fell but offset by strong loan growth and supported by robust fee generation Revenue by business: Quarterly trend SARm Other MM Capital markets MM Treasury Mi wes Ml ciB 1,973 Quarterly revenue continues to exceed
Slide 7: NSCI and non-funds revenue
NSCI and non-funds revenue Quarterly NSCI continues to build as volume growth more than offsets the marginal decline in NIMs; cost-of-funds continue to be pressured by falling NIBs ratio NSCI, SARm and Average interest earning assets, SARbn Non-funds income, SARbn MM PV unwind MM NSCl excl. PV unwin
Slide 8: Costs
Costs 1024 costs have increased 4% compared with 1023, and down 1% QoO; CER ratio of 30.5% remains within the improved guidance range Recent cost trend, SARm 1,077 1008 98 1,045 1,086 1,051 . CER ratio has benefitted from an improving jaws and Cost efficiency ratio through the merger, % 841 863 881
Slide 9: Purchased or originated credit impaired
Purchased or originated credit impaired 102 45 47 27 24 27 28 27 14 9 8
Slide 10: Customer lending and trade assets
Customer lending and trade assets 19% YoY lending growth — the fastest growing bank in the KSA; trade assets continue to show strong growth reflecting our no.1 position in the KSA market Gross customer lending, SARbn Corporate quarterly originations trend, SARbn <p Je. Originations’ momentum continu
Slide 11: Customer deposits
Customer deposits Funding and liquidity remain robust; NIBs balances continue to stabilize Customer deposits, SARbn Demand deposit balances and ratio Liquidity coverage ratio, % Stable funding base Non-interest bearing deposit ratio remains ahead of the Highly liquid and well above regulatory requir
Slide 12: 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, % —* Basel3_ -® Basel3 reforms 193 SS 0 Total capital ratio, % —* Basel3 —* Basel 3 reforms 218 y 09 20.7 203 19.9 19.7 20.0 cD y a 193
Slide 13: 1Q24 overall performance and 2024 guidance
2023 actual Loan YoY cramth +18% Annual net interest 3.04% margin Cost efficiency 32.4% ratio Cost of risk 27ops RoTE 15.3% Jail SAB 1024 overall performance and 2024 guidance 2024 guidance 2024 guidance Ahead of the market 2.85-2.95% <32% 30-45bps 15-16% Continue to out-grow the market notably in a
Slide 14: Appendix
x Append gill SAB
Slide 15: SAB history and background
SAB Jgill History and background Netherlands Trading Society opens its 1 926 office in Jeddah and becomes the first bank to operate in KSA 197Q Saudi British Bank (SAB) was incorporated as joint stock company SABB merges with Bank Alawwal to 202 1 create SAB and become one of the largest commercial
Slide 16: Investment case: five reasons to invest in SAB
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 17: 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