Bank Aljazira · TADAWUL:1020
Bank Aljazira — FY2024 Earnings Presentation
53 slides from Bank Aljazira's earnings presentation, 2025
Slide 1: Bank AlJazira Investor Presentation FY 2024
Bank AlJazira Investor Presentation FY 2024
Slide 2: Agenda
Bank AlJazira – At a glance 3 Market Trends 8 Strategy Refresh 11 Sustainability 18 Financial Performance 22 Appendix 51
Slide 3: Bank AlJazira — At a glance
Bank AlJazira — At a glance =a = Vw Sessa: yy | LI] Nh | | ‘Qt eee yy ‘iN - Typ
Slide 4: Bank AlJazira is a leading Shariah compliant financial group in KSA
At a Glance At a glance Environment Strategy Sustainability Financials Appendix Bank AlJazira is a leading Shariah compliant financial group in KSA 11 Regions in KSA 73 Branches Channels 38 Fawri Centers 587 ATMs 5 1 AlJazira Capital Co. Affiliated AlJazira Securities Ltd. Aman Dev. & Real Estate In
Slide 5: Bank AlJazira's history began in 1975
History At a glance Environment Strategy Sustainability Financials Appendix Bank AlJazira’s history began in 1975 Shariah compliant 70 +branches 1975 1992-94 1998 2007 2009 2019 2023-24 Incorporated Restructuring process Strategic shift from Full-conversion into From 24 to 94 branches New 2019-23 st
Slide 6: Bank AlJazira enjoys a well-diversified business mix
Business Mix At a glance Environment Strategy Sustainability Financials Appendix Bank AlJazira enjoys a well-diversified business mix Group Structure Total Assets Composition (%) 4Q 2024 Corporate 2.6% 0.2% Retail 33.9% 33.2% Treasury Personal Treasury Insurance Brokerage & Asset Management 30.0% Ba
Slide 7: FY 2024: Strong asset growth with steady improvement in efficiency and profitability
FY 2024 Highlights At a glance Highlights Environment Strategy Strategy Financials Sustainability Guidance Financials Appendix Appendix FY 2024: Strong asset growth with steady improvement in efficiency and profitability Macro Saudi Arabia’s favorable operating Non-oil Real GDP Growth SAIBOR 3M Avg
Slide 8: Market Trends
Spal Clin > BANK ALJAZIRA Market Trends
Slide 9: Saudi Arabia continues to benefit from a favorable operating environment
KSA Macro Environment At a glance Highlights Environment Strategy Strategy Financials Sustainability Guidance Financials Appendix Appendix Saudi Arabia continues to benefit from a favorable operating environment… Real GDP Growth (%) Brent Oil Price / Barrel (USD ) 8.7% 99.0 5.6% 5.3% 4.4% 4.1% 3.8%
Slide 10: Banking industry well-positioned to capitalize on this momentum
KSA Banking Industry At a glance Highlights Environment Strategy Strategy Financials Sustainability Guidance Financials Appendix Appendix …with the banking industry well-positioned to capitalize on this momentum Total Loan Growth (%) Total Deposits Growth (%) 14.4% 14.4% 10.2% 10.5% 8.3% 7.8% 8.4% 1
Slide 11: Strategy Refresh
Strategy Refresh
Slide 12: Our purpose remains to Enhance Lives Through Financial Wellbeing
Purpose, Values and Objectives At a glance Highlights Environment Strategy Strategy Financials Sustainability Guidance Financials Appendix Appendix Our purpose remains to Enhance Lives Through Financial Wellbeing Our values: We innovate for the Future… We succeed through Partnership Creating distinc
Slide 13: Advancing on the transformation agenda during the 1st year of our 5-year strategy
Refreshed Strategy Strategy Financials Financials Sustainability Guidance At a glance Guidance Highlights Environment Financials Appendix Appendix Strategy Strategy We are advancing on the transformation agenda during the 1st year of our 5-year strategy The Refreshed Strategy Business Lines Vision W
Slide 14: Strategic progress in corporate achieved strong growth momentum
Corporate Strategic Initiatives At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Strategic progress in corporate achieved strong growth momentum Corporate Segment Strategic Time Span Strategic Initiative
Slide 15: Retail is progressing well in redefining value proposition and advancing digitization
Retail Strategic Initiatives At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Retail is progressing well in redefining value proposition and advancing digitization Retail Segment: Strategic Time Span: St
Slide 16: Other segments are making progress toward their medium-term and long-term objectives
Other Segments Highlights At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Other segments are making progress toward their medium-term and long-term objectives Other Segments: Strategic Time Span: Broker
Slide 17: The ultimate goal of the refreshed strategy is to accelerate growth and boost profitability
Strategic Targets At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix The ultimate goal of the refreshed strategy is to accelerate growth and boost profitability We are focused on growing our financing, Fun
Slide 18: Sustainability
Spal Clin > BANK ALJAZIRA Sustainability
Slide 19: Bank AlJazira's goal is to embed sustainability into our DNA
Sustainability KPIs At a glance Highlights Environment Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Bank AlJazira’s goal is to embed sustainability into our DNA Sustainability Key Performance Indicators of Bank AlJazira: Key Material Topics an
Slide 20: 4 key sustainability pillars
Sustainability Pillars At a glance Highlights Environment Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix We identified 4 key sustainability pillars to create both business value and sustainable impact Sustainability Pillars: 01 02 03 04 Sustaini
Slide 21: BAJ is delivering impactful ESG initiatives across its operations
ESG Highlights At a glance Highlights Environment Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix BAJ is delivering impactful ESG initiatives across its operations Environmental Paper Usage Energy Bill Water Bill Other Projects Awards & Recogniti
Slide 22: Financial Performance
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Slide 23: Balance sheet | Assets expanding by 15% YoY driven by financing
Balance Sheet: Summary & Total Assets At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Balance sheet | Assets expanding by 15% YoY driven by financing Balance Sheet Total Assets Movement YoY (SAR Bn) 4Q
Slide 24: Financing increased 20% fueled by 22% growth in commercial loans
Balance Sheet: Financing At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Financing | Financing increased 20% fueled by 22% growth in commercial loans Financing Composition (SAR Bn) 4Q 2024 Financing Mov
Slide 25: NPL | Credit quality remains healthy with improving NPL ratio
NPL At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix NPL | Credit quality remains healthy with improving NPL ratio NPL Ratio (%) 4Q 2024 NPL Ratio by type (%) 4Q 2024 Management commentary The NPL ratio
Slide 26: NPL coverage increased to 210%
NPL Coverage At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix NPL coverage | Increased to 210%, providing a strong buffer against credit losses NPL Coverage Ratio (%) 4Q 2024 NPL Coverage Ratio by type (
Slide 27: Investments | Optimizing portfolio with fixed-rate assets
Balance Sheet: Investments At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Investments | Optimizing portfolio by replacing maturities with fixed-rate assets at favorable rates Investments Composition by
Slide 28: Deposits | CASA share increased to 44%
Balance Sheet: Customers’ Deposits At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Deposits | CASA share increased to 44% supported by growth in savings accounts Customers' Deposits (SAR Bn) 4Q 2024 Cus
Slide 29: Liquidity | Substantial buffers to accommodate future growth
Liquidity At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Liquidity | Substantial buffers to accommodate future growth Basel III Leverage Ratio (%) 4Q 2024 Loans to Customers' Deposit Ratios (%) 4Q 2024
Slide 30: Capitalization | Stabilized capital ratios following pressure in 1Q 2024
Capitalization At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Capitalization | Stabilized capital ratios following pressure in 1Q 2024 Capital Adequacy Ratio (%) 4Q 2024 Management Commentary The total
Slide 31: RWA | Rapid RWA growth impacted capital ratios in 1Q 2024
CAR and RWA At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix RWA | Rapid RWA growth impacted capital ratios in 1Q 2024, but stabilized thereafter RWA Density (%) 4Q 2024 Capital Adequacy Ratio Movement Y
Slide 32: Income statement | 21% net income growth from top-line expansion
Income Statement: Summary & Net Income At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Income statement | 21% net income growth from top-line expansion Income Statement Quarterly Net Income (SAR Mn) 4Q
Slide 33: Operating income | 13% YoY growth with positive jaws
Income Statement: Operating Income & Expenses At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Operating income | 13% YoY growth with positive jaws from strong revenue momentum Total Operating Income (SA
Slide 34: Net financing & investment income | Up 11%
Income Statement: Net Financing and Investment Income At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Net financing & investment income | Up 11% from earning assets expansion Net Financing & Investment
Slide 35: Net margin | Sequential improvement in 4Q 2024
Income Statement: Net Margin At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Net margin | Sequential improvement in 4Q 2024 as rate cuts take effect Management Commentary Net Margin (%) FY 2024 Quarterl
Slide 36: Fee & other income | Boosted by investment income and banking fees
Income Statement: Fee & Other Income At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Fee & other income | Boosted by investment income and fees from banking services Fee & Other Income Movement YoY (SAR
Slide 37: Operating expenses | Cost-to-income ratio improving YoY
Income Statement: Operating Expenses At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Operating expenses | Cost-to-income ratio improving YoY from positive jaws Operating Expenses Composition (%) FY 2024
Slide 38: Cost of risk | Increased by 3bps to 0.32%
Income Statement: Impairments At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Cost of risk | Increased by 3bps to 0.32%, impacted by higher commercial impairments Cost of Risk (%) FY 2024 Impairment Cha
Slide 39: Profitability | Returns are improving YoY
Income Statement: Profitability At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Profitability | Returns are improving YoY ROAE (%) FY 2024 ROAA (%) FY 2024 1.05% 1.05% 1.05% 8.46% 8.53% 8.56% 1.01% 8.36
Slide 40: Segmental Performance
Segmental Performance
Slide 41: Segments | Diverse mix with strong corporate and brokerage contributions
Segmental Overview At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Segments | Diverse mix, with strong contributions from corporate and brokerage in 2024 Total Assets Movement YoY (SAR Bn) 4Q 2024 Total
Slide 42: Corporate segment | 33% growth in net income
Corporate Segment At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Corporate segment | The corporate segment reports 33% growth in net income and 19% growth in assets Management Commentary Total Assets (
Slide 43: Retail segment | 8% rise in retail net income
Retail Segment At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Retail segment | 8% rise in retail net income from NFI income, partly offset by higher expenses Management Commentary Total Assets (SAR Bn)
Slide 44: Brokerage and asset management segment | Strong 54% YoY income growth
Brokerage & Asset Management Segment At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Brokerage and asset management segment | Strong 54% YoY income growth Management Commentary Assets Under Management (
Slide 45: Treasury segment | Declining net income on higher funding costs
Treasury Segment At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Treasury segment | Declining net income from treasury on higher funding costs Management Commentary Total Assets (SAR Bn) Total Liabiliti
Slide 46: Historical trends
Historical trends tm hag
Slide 47: Historical Trends
Historical Trends At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Historical Trends Total Assets (SAR Bn) Financing (SAR Bn) Customers' Deposits (SAR Bn) +13% CAGR +16% CAGR +12% CAGR 148.9 96.9 108.2 1
Slide 48: Key Ratios
Key Ratios At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Key Ratios Net Margin (%) Cost of Risk (%) Cost to Income (%) Share of Fee & Other Income in Operating Income (%) 2.42% 58.2% 2.63% 2.62% 56.0%
Slide 49: Guidance
Spal Clin > BANK ALJAZIRA
Slide 50: Guidance | Double-digit asset growth expected in 2025
Guidance At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Guidance | We expect double-digit asset growth with improved efficiency and profitability in 2025 Guidance Metric FY 2023 Actual FY 2024 Actual F
Slide 51: Appendix
Spill lis BANK ALJAZIRA Appendix
Slide 52: Connect with us
Contacts At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Connect with us IR Contacts Latest Reports IR email: IR@BankAlJazira.com Board of Directors’ Report Sustainability Report Muhammad Majid Khan, He
Slide 53: Disclaimer
Disclaimer At a glance Highlights Environment Strategy Strategy Strategy Financials Financials Sustainability Guidance Guidance Financials Appendix Appendix Disclaimer The Bank Aljazira (BAJ) prepared this presentation on a proprietary basis as general background information about the activities of