Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q1 2025 Earnings Presentation
54 slides from Saudi National Bank's earnings presentation, May 2025
Slide 1: 1Q 2025 Investor Presentation
1Q 2025 Investor Presentation May 2025
Slide 2: Table of Content
Table of Content SNB Profile 01 Operating Environment 02 Strategy 2025-2027 03 Financial Highlights 04 Our goal is to propel the nation’s progress towards Vision Debt Profile Update 05 2030 and beyond by spearheading technological Financial Results Details 06 innovation, encouraging progressive thin
Slide 3: SNB Profile
01 SNB Profile | 1Q 2025 - Investor Presentation 3
Slide 4: SNB Overview
SNB Overview SNB is Saudi Arabia’s largest banking group with a well-diversified business model, leading client offering, and presence in 9 countries Our Purpose: Our Presence Robust credit standing To propel our nation S&P and CI upgraded SNB's LT to A and AA- with stable outlook towards Vision 2030
Slide 5: SNB in KSA and GCC Context
SNB in KSA and GCC Context SNB is the leading bank in KSA and among the top 3 in the GCC countries SNB Rank SNB Rank Top 5 Banks in GCC by Rank in KSA in GCC Assets (¥bn) Financing (¥bn) Assets #1 #3 Peer 1 1,338 Peer 1 939 Peer 2 1,240 Peer 4 693 Financing #2 #3 SNB 1,104 SNB 654 Peer 3 1,019 Peer
Slide 6: Leading, diversified franchise
SNB market position as of 4Q 2024 Leading, diversified franchise KSA Total Market SNB Market Share in ¥bn SNB Market Share in % Rank KSA Overall Banking (Assets) ¥ 4,207Bn 1,104 3,103 26% #1 Wholesale Banking (Domestic Financing) ¥ 1,573Bn 290 1,283 18% #1 Retail Banking (Domestic Financing) ¥ 1,212
Slide 7: Operating Environment
02 Operating Environment | 1Q 2025 - Investor Presentation 7
Slide 8: Supportive KSA macro-economic environment
Operating Environment Supportive KSA macro-economic environment Average Monthly Oil Prices (US$/bbl) Oil Demand Outlook (mmbd) Real GDP Growth (% Y/Y change) 140 107.0 106.3 +20.0 120 106.0 +15.0 105.0 104.7 100 105.0 103.6 104.2 +10.0 104.0 102.8 103.8 103.5 +5.1 80 71.0 +5.0 +4.5 103.0 102.7 +4.1
Slide 9: Strong and stable banking sector
Operating Environment Strong and stable banking sector Overall Banking Industry Lending Overall Banking Industry Lending by Average Monthly Value of Gross Mortgage & Deposits (Y/Y % change) Sector (M/M % change) Origination by All Banks (¥bn) 20.0 3.0 14,000 200.0 2.5 12,000 14.9 9,686 150.0 15.0 2.
Slide 10: Strategy 2025-2027
03 Strategy 2025-2027 | 1Q 2025 - Investor Presentation 10
Slide 11: SNB Strategy 2025-2027
SNB Strategy 2025-2027 SNB’s comprehensive strategy prioritizes sustainable growth in the Kingdom and embraces a customer-centric approach, while championing innovation Key Pillars Themes Target emerging segments with Market Share and focus on improving returns and fee Grow Financing Drive CASA Enha
Slide 12: 2027 financial targets
SNB Strategy 2025-2027 2027 financial targets Area Metrics 2024F Baseline 2027 Targets Key Targets Financing Growth CAGR 2024-27 ¥ 654bn Low teens Growth CASA Growth CAGR 2024-27 ¥ 419bn Low teens Growth NSCI Growth CAGR 2024-27 ¥ 27.7bn Low double digit Banking Fee Income Growth CAGR 2024-27 ¥ 4.6b
Slide 13: 1Q 2025 Key Highlights
1Q 2025 Key Highlights Q1 2025 marked a strong start to our strategic cycle… Market share and value creation Grow Financing market share Drive CASA acquisition SNB Capital leadership CASA Growth, CAGR 2024-27 AUM market Total financing market share Wholesale financing market share Retail financing m
Slide 14: Positive momentum on each of the strategic themes
1Q 2025 Key Highlights …with positive momentum gained on each of the strategic themes Market share and Operational Customer Innovation Talent magnet Key pillars value creation excellence centricity Recalibrated risk Significantly improved Redesigned Accelerated digital sales Launched assessment 1Q 2
Slide 15: Financial Highlights
04 Financial Highlights | 1Q 2025 - Investor Presentation 15
Slide 16: 1Q 2025 Financial Performance Highlights
1Q 2025 Financial Performance Highlights 1Q 2025 saw outstanding growth and strong value delivery Structural Advantages Record Financial Performance 1Q 2025 Strategy Leading market Driven Impact positions ¥ 1.2tn Total Assets hit record, up 6% YTD ROTE +134 bps YoY Strong loan origination pipeline D
Slide 17: 1Q 2025 Financial Performance Highlights
1Q 2025 Financial Performance Highlights SNB delivered a record net income on strong lending growth momentum, accelerated fee and other income, improving operating efficiency and low risk cost Unprecedented financing growth from Wholesale financing and in MSME & Mortgage expansion with a decreasing
Slide 18: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 6% YTD mainly from financing growth and investments supported by an 8% increase in domestic customers’ deposits Total Assets (¥bn) Total Assets Movement YTD (¥bn) +6% +9% 1,171.1 51.1 1.7 1,171.1 1,072.3 1,104.2 17.9 88 1,104.2 2.0 85 94 (5.8) 625 654
Slide 19: Income Statement Summary
Income Statement Summary 19% YoY Net income growth driven by revenue uplift, cost discipline and low impairments reflecting strong asset quality Net Income Attributed To Equity Holders Movement YoY (¥mn) Net Income (¥mn) +19% +19% 5,557 6,022 +22% 5,040 288 649 6,075 6,022 70 5,040 4,970 351 5,615 6
Slide 20: Segmental Highlights
Segmental Highlights Solid net income contributions from Wholesale and Retail, slightly offset by International and Capital Markets Total Assets Movement YTD (¥bn) Total Liabilities Movement YTD (¥bn) Total Assets Composition (%) +6% +7% Capital Markets 5 2 1,171 35 1 2 977 2.5% 48 12 28 1,104 911 W
Slide 21: Outlook & Guidance
Outlook & Guidance On track to deliver on our full-year 2025 targets Macro-Economic FY 2024 FY 20252 SNB Financial Guidance FY 2024 Baseline 1Q 2025 FY 2025 Guidance Status Outlook1 ¥654bn ¥706bn Real GDP Growth +1.3% +4.5% Financing Growth Low double digit +9% +8% YTD Unchanged ¥27.7bn ¥7.3bn Mid-t
Slide 22: Debt profile update
05 Debt profile update | 1Q 2025 - Investor Presentation 22
Slide 23: Term Loans, Sukuk and Debt Securities
Term Loans, Sukuk and Debt Securities Continued growth and diversification in funding profile Debt Securities, CDs, Tier 1 Sukuk and Term Loan Balances (¥bn) 1Q 2025 key highlights ▪ Strengthened SNB’s global funding footprint across key regions, by strategically 125.8 timing multi-currency issuance
Slide 24: Sustainable finance
Sustainable finance SNB has issued a total of 10 sustainable instruments totaling to USD 1,750mn and has a current portfolio of eligible sustainable assets amounting to USD 2,291mn Continuing to lead and innovate in the sustainable financing space within KSA Term funding portfolio by type Eligible G
Slide 25: Capital position
Capital position SNB enjoys one of the highest Capital Ratios among regional peers CET1 Tier 1 CET 1 and Tier 1 capital ratios 20.6% 20.1% 19.8% 19.3% 19.6% 19.3% 19.4% 19.1% 19.0% 18.6% 18.1% 17.8% 17.2% 17.5% 17.0% 16.6% 15.5% 16.3% 16.1% 16.6% 15.8% 15.5% 14.9% 14.7% 14.8% 14.8% 15.0% 14.3% 13.9%
Slide 26: Credit Ratings: External Ratings Update
Credit Ratings External Ratings Update Rating Agency Saudi Arabia SNB Ratings SNB Outlook Quotes A Long-term A- “SNB is likely to resort to alternative sources of financing, A including external funding. However, we expect the proportion S&P A-1 Stable Outlook: Positive A-2 of external sources in SN
Slide 27: Financial Results Details
06 Financial Results Details | 1Q 2025 - Investor Presentation 27
Slide 28: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 6% mainly from financing growth and investments supported by an 8% increase in domestic customers’ deposits Total Assets (¥bn) ¥ (mn) 1Q 2025 4Q 2024 Δ 1Q 2024 Δ +9% Cash & interbank 66,105 63,208 +5% 86,661 -24% 1,124.6 1,104.2 1,171.1 Investments 31
Slide 29: Financing & Advances
Financing & Advances A 15% YTD increase in Wholesale financing fueled total financing growth in 1Q 2025 Financing & Advances, Net (¥bn) Financing & Advances, Net Movement YTD (¥bn) 2025 Guidance Low double-digit +13% +8% 706.4 625.2 637.2 655.3 654.3 4 35.9 6.8 0.2 1.1 706.4 3 3 3 3 18 17 18 17 39 1
Slide 30: Investments
Investments Investments up 6% YTD primarily in other fixed income and SGDS Investments, Net (¥bn) Investments, Net Movement YTD (¥bn) +13% +6% 290.5 292.5 310.3 8.8 3.0 310.3 275.6 286.7 29 6.1 23 25 26 292.5 23 (0.1) 87 87 94 94 94 160 160 178 180 187 QoQ +4% +1% +1% +6% +4% +9% +11% -1% 1Q 24 2Q 2
Slide 31: Customers' Deposits
Customers' Deposits Customers’ deposits grew 8% YTD, primarily driven by domestic CASA inflows; this contributed to an improved CASA ratio of 74.5% Customers' Deposits (¥bn) Customers' Deposits Movement YTD (¥bn) 656.3 632.7 634.2 626.4 +8% 25 579.8 32 31 26 130 31 48.0 2.4 626.4 132 154 134 130 579
Slide 32: Income Statement Highlights
Income Statement Highlights Net income growth driven by revenue uplift, cost discipline and low impairments reflecting strong asset quality ¥ (mn) 1Q 2025 4Q 2024 Δ 1Q 2024 Δ Net Income (¥mn) 6,022 NSCI 7,254 6,904 +5% 6,911 +5% 5,366 5,557 5,040 5,231 Fee & other income 2,361 2,084 +13% 2,028 +16%
Slide 33: NSCI & Margin
NSCI & Margin 5% YoY NSCI growth from asset expansion… 2025 Guidance Mid-to-high single digit Net Special Commission Income Movement YoY (¥bn) growth Net Special Commission Income +5% Composition (%) +5% 6.9 0.4 0.3 7.1 0.2 7.3 Capital Markets 6.7 Wholesale 1.7% 37.3% 0.2 (0.1) (0.2) Int'l 2.9% +8%
Slide 34: NSCI & Margin
NSCI & Margin …and relatively stable NSCI Margin YoY Net Special Commission Margin Movement YoY (%) 1 Average Earning Assets (¥bn) +7% 891.9 956.4 -3bps 31 29 274 3.08% 0.03% 265 0.07% 0.05% 3.05% 274 303 -0.01% -0.16% 324 348 1Q 24 1Q 25 Retail financing Corporate financing Investments & Placements
Slide 35: NSCI & Margin: QoQ Margin improved
NSCI & Margin QoQ Margin improved on faster CoF repricing 1 Group NSCI Margin QTR (%) Group, excl Int'l, NSCI Margin QTR (%) 3.08% 3.08% 3.09% 3.05% 3.05% 2.92% 3.07% 2.89% 2.98% 2.94% 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 Group Commission Yield & Funding Cost QTR (%) Group, ex
Slide 36: Fee & Other Income
Fee & Other Income Fee and Other Income grew strongly, driven by trade finance, FX, and investment income, partly offset by lower brokerage income Fee & Other Income (¥mn) Fee and Other Income Movement YoY (¥mn) 2,330 2,361 +16% 2,028 2,084 1,866 +16% 1,034 905 253 2,361 670 886 2,028 112 6 2,107 77
Slide 37: Operating Expenses
Operating Expenses Operating expenses rose 3% YoY on higher domestic G&A costs, partially offset by lower depreciation expenses; domestic CIR further improved to 23.3% 1 Operating Expenses (¥mn) Total Operating Expenses, Excl Intangibles Amortization Movement 2,664 YoY (¥mn) 1 2,456 2,548 2,548 2,52
Slide 38: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk Cost of Risk came in at just 2bps, supported by stable asset quality Net Impairment Charge For Expected Credit Losses Movement YoY Cost of Risk YTD (%) 2025 Guidance 10 to 20 bps (¥mn) -95% -100% 0.43% 655 648 (534) 0.42% 0.27% (6) 0.22% 0.16% (115) 35 34
Slide 39: Credit Quality: NPL Ratio decreased to 0.91%
Credit Quality Asset quality improved with the NPL Ratio decreased to 0.91%... Credit Impaired Financing Movement YTD (¥bn) NPL Ratio (%) 2.5 8.9 -16% 7.7 0.1 6.5 1.11% 1.13% 1.16% 1.12% 1 (1.2) (0.1) 0.91% 1.09% 1.08% 1.09% 1.13% 0.89% -54% +1% -23% NPLs Retail Wholesale Int'l NPLs POCI balance Imp
Slide 40: Credit Quality: stage-wise coverage
Credit Quality …with stage-wise coverage stabilized ECL Allowance by Stage (¥bn) Total Financing & Advances, Gross by Stage (¥bn) +13% 11.2 11.2 11.2 10.4 9.4 713.4 633.3 645.5 663.5 662.2 7 5 5 5 7 7 8 8 19 27 27 27 18 7 6 3 4 4 636 687 599 611 629 1 1 3 3 2 2 2 QoQ -0% -0% -7% -9% QoQ +2% +3% -0%
Slide 41: Capitalization
Capitalization Capitalization remained strong and healthy despite robust financing growth in 1Q 2025 Total Eligible Capital (¥bn) Total Eligible Capital Movement YTD (¥bn) 150.2 157.1 157.9 146.6 146.2 +1% 4 4 6 6 6 20 20 14 14 14 157.1 6.0 1.0 157.9 (6.0) (0.3) 126 125 129 133 133 QoQ -0% +3% +5% +
Slide 42: Liquidity
Liquidity Liquidity is strong and stable Stable Funding (¥bn/%) SAMA Loan-to-Deposit Ratio (%) 110.4% 109.4% 106.6% 120.0% 114.4% 106.6% 1,000 100.0% 706.9 695.0 707.3 693.3 730.9 90.0% 800 80.0% 600 82.5% 84.0% 60.0% 77.1% 400 40.0% 78.8% 79.8% 200 20.0% QoQ -2% +2% -2% +5% 0 0.0% 1Q 24 2Q 24 3Q 24
Slide 43: Segmental Review
07 Segmental Review | 1Q 2025 - Investor Presentation 43
Slide 44: Domestic (Group, Excl. Int'l)
Domestic (Group, Excl. Int’l) 23% net income before zakat growth YoY on solid revenue and low impairments ¥ (mn) 1Q 2025 1Q 2024 Δ 1Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 1,137,273 1,041,017 +9% 1,137,273 1,072,079 +6% +23% Financing and advances, net 688,151
Slide 45: Retail
Retail 10% net income growth YoY on higher Fee & other income and low impairments ¥ (mn) 1Q 2025 1Q 2024 Δ 1Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 439,941 418,343 +5% 439,941 428,303 +3% +10% Financing and advances, net 351,801 328,540 +7% 351,801 343,586 +2%
Slide 46: Wholesale
Wholesale 44% net profit growth YoY supported by operating income growth and low impairments ¥ (mn) 1Q 2025 1Q 2024 Δ 1Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 668,507 604,116 +11% 668,507 620,429 +8% +44% Financing and advances, net 332,745 277,394 +20% 332,745
Slide 47: Capital Markets
Capital Markets Net income decreased 22% YoY due to the last year’s high base ¥ (mn) 1Q 2025 1Q 2024 Δ 1Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 28,826 18,558 +55% 28,826 23,348 +23% -22% Financing and advances, net 3,605 2,755 +31% 3,605 3,450 +4% 539 8 15 3 42
Slide 48: International
International Lower income lines and Other expenses resulted in a 139% decline in net income ¥ (mn) 1Q 2025 1Q 2024 Δ 1Q 2025 4Q 2024 Δ Net Income Before Zakat & Tax Movement YoY (¥mn) Total assets 33,806 31,273 +8% 33,806 32,075 +5% -139% Financing and advances, net 18,279 16,508 +11% 18,279 17,165
Slide 49: Appendix
08 Appendix | 1Q 2025 - Investor Presentation 49
Slide 50: SNB History
SNB History SNB was founded as NCB in 1953 and then formed through the merger with Samba Financial Group in 2021 Largest Initial Public Offering (IPO) A Beginning In 2014, NCB went public with its benchmark ¥ 22.5bn In 1953, the National Commercial Bank (NCB) was IPO that was the largest the region
Slide 51: Hyperinflation
Hyperinflation Hyperinflationary adjustments came at ¥ 127mn in 1Q 2025 Classification of Turkey as a hyperinflationary economy Resulting in hyperinflation adjustments impacting Group net income1 ▪ During 2022, the Turkish economy was identified to be hyperinflationary based Hyperinflation Adjustmen
Slide 52: Definitions
Definitions SNB Financial Guidance Ratios Definition Net Special Commission Income Annualized Net Special Commission Income excluding FV adjustment / Average commission earning assets (NSCI Margin; also known as NIM) Cost to Income Ratio (C/I) Total Operating Expense excluding Amortization of Intang
Slide 53: Additional Information
Additional Information Write to Us The Saudi National Bank Tower, Unit No. 778 Email Us King Abdullah Financial District ir@alahli.com 3208, Al Aqeeq District, King Fahad Road Riyadh, Kingdom Of Saudi Arabia, 13519 - 6676 Visit our website alahli.com Access SNB’s current and previous Investor Disclo
Slide 54: Disclaimer
Disclaimer The Saudi National Bank (SNB) prepared this presentation on a proprietary basis as general background information about the activities of SNB. The information contained herein is given in summary form and for discussion purposes only. Some of the information that is relied upon by SNB is