Bank Aljazira · TADAWUL:1020
Bank Aljazira — Q1 2024 Earnings Presentation
27 slides from Bank Aljazira's earnings presentation, May 15, 2024
Slide 1: Bank AlJazira Earnings Presentation 1Q 2024
Bank AlJazira Earnings Presentation 1Q 2024
Slide 2: Continued growth of assets with gradually improving profitability and efficiency
Highlights Highlights Strategy Financials Guidance Appendix Continued growth of assets with gradually improving profitability and efficiency Macro Saudi Arabia’s favorable operating Non-oil Real GDP Growth SAIBOR 3M Avg (%) Banking Sector Loan Growth environment: Background robust non-oil GDP growth
Slide 3: Strategy Refresh
Strategy Refresh
Slide 4: Refreshed Strategy
Refreshed Strategy Highlights Strategy Financials Guidance Appendix We refreshed our strategy with a clear transformation agenda for each business segment The Refreshed Strategy Business Lines Vision Where are we heading? Corporate Retail Segment and sector focused CIBG: Bank-of-choice Growing asset
Slide 5: Short-term Strategic Initiatives
Short-term Strategic Initiatives Highlights Strategy Financials Guidance Appendix Short-term goals are to diversify revenues, boost efficiency and enhance value proposition Time Span of Strategic Initiatives: Short-term Strategic Initiatives: Initiatives: Objectives: Short-term Medium-term Long-term
Slide 6: Corporate Strategic Initiatives
Corporate Strategic Initiatives Highlights Strategy Financials Guidance Appendix Corporate will drive growth in the future, embracing opportunities in the KSA market Corporate Strategic Initiatives: Time Span: Broaden services Focus on Participate in by introducing account planning syndicated lendin
Slide 7: Retail Strategic Initiatives
Retail Strategic Initiatives Highlights Strategy Financials Guidance Appendix Retail vision is to become the “bank-of-choice” for affluent customers Retail Strategic Initiatives: Time Span: Create premium brand Foster cross-sell by Revamp Bank@Work positioning for the enhancing the value by optimizi
Slide 8: Brokerage & Asset Management and Treasury Strategic Initiatives
Brokerage & Asset Management and Treasury Strategic Initiatives Highlights Strategy Financials Guidance Appendix Moving towards Leading wealth management house in KSA and Treasury as a core partner Brokerage & Asset Management Strategic Initiatives: Time Span: Maintain share Scale Continue to Divers
Slide 9: Strategic Targets
Strategic Targets Highlights Strategy Financials Guidance Appendix The ultimate goal of the refreshed strategy is to accelerate growth and boost profitability We are focused on growing our financing, Funded with a better deposit mix, While controlling our Cost of Risk, Financing (SAR Bn) NIB Deposit
Slide 10: Financial Performance
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Slide 11: Total Assets and Financing
Total Assets and Financing Highlights Strategy Financials Guidance Appendix Balance sheet continues expanding by 5% YTD, driven by commercial book and interbank Total Assets (SAR Bn) 1Q 2024 Total Assets Movement YTD (SAR Bn) 1Q 2024 +14% +5% 129.3 129.6 135.8 3.3 0.2 135.8 119.4 124.4 3.2 3.5 2.8 3
Slide 12: Investments
Investments Highlights Strategy Financials Guidance Appendix Rationalization of the investment book from maturities, decreasing its share of total assets Investments Movement YTD (SAR Bn) 1Q 2024 Investments (SAR Bn) 1Q 2024 -1% -6% 1.7 36.0 36.3 36.5 34.4 34.4 34.0 34.0 (1.1) 24.2 24.5 23.7 20.5 20
Slide 13: Liabilities and Liquidity
Liabilities and Liquidity Highlights Strategy Financials Guidance Appendix Liquidity position provides substantial buffers to accommodate future growth Total Liabilities Movement YTD (SAR Bn) 1Q 2024 Loans to Customers' Deposit Ratios (%) 1Q 2024 +6% 87.6% 85.9% 86.5% 82.9% 81.4% 3.2 0.0 119.4 3.0 1
Slide 14: Customers' Deposits
Customers’ Deposits Highlights Strategy Financials Guidance Appendix Improving CASA share YTD on the back of the 9% growth in demand deposits Customers' Deposits (SAR Bn) 1Q 2024 Customers' Deposits Movement YTD (SAR Bn) 1Q 2024 +12% +3% 92.1 94.1 97.3 2.9 0.3 0.4 97.3 86.9 90.6 94.1 (0.4) 53.5 51.2
Slide 15: Net Income
Net Income Highlights Strategy Financials Guidance Appendix Boosted net income through top-line expansion Net Income for the Period Movement YoY (SAR Mn) 1Q 2024 Quarterly Net Income (SAR Mn) 1Q 2024 +47% +47% 43 300 4 300 276 279 5 261 204 62 (17) +28% +6% +1% +8% 204 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24
Slide 16: Net Financing and Investment Income and Margin
Net Financing and Investment Income and Margin Highlights Strategy Financials Guidance Appendix Net F&I income growing 11% from earning assets expansion on broadly stable net margin Net Financing & Investment Income Movement YoY (SAR Mn) 1Q 2024 Quarterly Net Margin (%) 1Q 2024 6.06% 5.56% 5.77% +11
Slide 17: Fee & Other Income
Fee & Other Income Highlights Strategy Financials Guidance Appendix Over a quarter of operating income is represented by well-diversified non-funded income Fee & Other Income Movement YoY (SAR Mn) 1Q 2024 Net Fee Income From Banking Services Movement YoY (SAR Mn) 1Q 2024 +19% +21% 27 5 268 14 30 14
Slide 18: Operating Expenses
Operating Expenses Highlights Strategy Financials Guidance Appendix Cost-to-income ratio improving from positive jaws Operating Expenses (SAR Mn) 1Q 2024 Operating Expenses Movement YoY (SAR Mn) 1Q 2024 +4% +4% 488 515 492 11 1 492 475 463 7 475 (1) -2% +5% +6% -4% +3% +7% +2% -7% 1Q 23 2Q 23 3Q 23
Slide 19: Credit Quality
Credit Quality Highlights Strategy Financials Guidance Appendix Credit quality remains healthy with improving NPL ratio and CoR Cost of Risk* (%) 1Q 2024 NPL Ratio (%) 1Q 2024 NPL Coverage Ratio 2.21% 2.06% 1Q 2024 1.91% 1.90% 1.80% 0.30% 0.29% 0.30% 0.26% 1.84% 1.74% 1.68% 1.66% 1.57% 0.20% -13ppts
Slide 20: Capitalization and Profitability
Capitalization and Profitability Highlights Strategy Financials Guidance Appendix Returns are gradually improving with capitalization lowered from rising RWA Capital Adequacy Ratio (%) 1Q 2024 Risk Weighted Assets (SAR Bn) 1Q 2024 20.9% 20.2% 19.9% +19% 19.4% 18.3% 103.1 89.9 93.1 95.9 86.5 4.9 4.5
Slide 21: Segmental Performance
Segmental Performance Highlights Strategy Financials Guidance Appendix Diverse segment mix, with strong contributions from treasury, corporate and brokerage Total Assets Movement YTD (SAR Bn) 1Q 2024 Total Assets Composition (%) 1Q 2024 +5% Corporate 2.7% 0.2% 3.0 0.01 0.00 135.8 129.6 1.7 1.6 Retai
Slide 22: Guidance
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Slide 23: Guidance
Guidance Highlights Strategy Financials Guidance Appendix Guidance for 2024 remains unchanged, and our performance is on track Guidance Metric FY 2023 Actual 1Q 2024 Actual FY 2024 Guidance Drivers Financing growth +14% +4% YTD Mid-teens Anticipating sustained mid-teens growth predominantly fueled b
Slide 24: Q&A
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Slide 25: Appendix
Spill lis BANK ALJAZIRA Appendix
Slide 26: Contacts
Contacts Highlights Strategy Financials Guidance Appendix Connect with us IR Contacts Latest Reports Muhammad Majid Khan, Head of Investor Relations Board of Directors’ Report Sustainability Report Direct: +966 (12) 609 8997 Email: MMKhan@BankAljazira.com Abdulaziz Nahas, Senior Manager - Investor R
Slide 27: Disclaimer
Disclaimer Highlights Strategy Financials Guidance Appendix Disclaimer The Bank Aljazira (BAJ) prepared this presentation on a proprietary basis as general background information about the activities of BAJ. The information contained herein is given in summary form and for discussion purposes only.