Saudi Investment Bank · TADAWUL:1030

Saudi Investment Bank — The Saudi Investment Bank — FY2024 Earnings Presentation

43 slides from Saudi Investment Bank's earnings presentation, February 2025

  1. Slide 1: Investor Presentation FY 2024

    Investor Presentation FY 2024 February 2025

  2. Slide 2: Contents

    Contents SAIB Overview 3 KSA Operating Environment 8 Strategy 11 Financial Performance 17 FY2024 Results and 2025 Guidance 30 Segmental Performance 32 Appendix 39 The Saudi Investment Bank – FY 2024 Investor Presentation P. 2

  3. Slide 3: SAIB Overview

    SAIB Overview The Saudi Investment Bank – FY 2024 Investor Presentation P. 3

  4. Slide 4: Strong corporate and private banking franchise with well capitalized balance sheet

    Strong corporate and private banking franchise with well capitalized balance sheet Number of Branches Number of Customers Key Stock Market Highlights Unchanged YoY +11% YoY +24% 25.6% 51 SAR 18.1 bn 937k Market Cap. Share Price owned by General Organization for (in last 3 years) Social Insurance % o

  5. Slide 5: Nearly half a century of excellence: tracing our journey from 1976

    Nearly half a century of excellence: tracing our journey from 1976 into the future Joint stock company SAIB successfully Share Purchase Treasury shares Launched a new 5-year Major share capital established by Royal completed its IPO on Agreement with J.P. previously held by J.P. strategy to grow the

  6. Slide 6: Robust financial performance with double digit net profit growth and improved profitability

    Robust financial performance with double digit net profit growth and improved profitability Total Operating Income (SARmn) Operating Expenses (SARmn) Net Income (SARmn) +10% CAGR  +9% CAGR  +19% CAGR  3,967 4,178 1,657 1,735 1,957 1,445 1,762 3,278 1,214 1,270 1,508 2,846 2,753 980 1,062 2020 202

  7. Slide 7: Resilient asset quality, adequate capital and liquidity position

    Resilient asset quality, adequate capital and liquidity position to accelerate growth and returns Loans & Advances (SARbn) Deposits (SARbn) ROE (%) +16% CAGR  +12% CAGR  +537bps  99.5 94.0 12.5% 13.1% 80.8 83.2 10.6% 68.9 69.6 57.8 60.1 61.5 7.7% 7.5% 55.1 2020 2021 2022 2023 2024 2020 2021 2022

  8. Slide 8: Operating Environment

    Operating Environment The Saudi Investment Bank – FY 2024 Investor Presentation P. 8

  9. Slide 9: The Saudi Economy is healthy, though GDP growth in 2024 impacted by lower oil contribution

    The Saudi Economy is healthy, though GDP growth in 2024 impacted by lower oil contribution Real GDP Growth (%) Oil Prices (USD) Brent Oil Price / Barrel (avg) WTI Oil Price / Barrel (avg) 1.4% 67.4WTI 99.0 7.5% 94.8 3.3% 4.1% 82.3 82.7 1.4% 74.7 -0.8% 77.6 78.5 72.2 2022 2023 2024 2025 2026 67.4 70.

  10. Slide 10: The Saudi Banking sector is profitable and showing solid growth momentum

    The Saudi Banking sector is profitable and showing solid growth momentum, though liquidity is tighter amidst higher rate environment Bank Credit (SARbn) Bank Deposits (SARbn) Profitability (%) ROE ROA 15.0% ROE 14.7% +14% CAGR  +8% CAGR  13.7% 15.0% 2,956 2,692 12.9% 2,584 2,295 2,473 2,349 1,943

  11. Slide 11: Strategy

    Strategy The Saudi Investment Bank – FY 2024 Investor Presentation P. 11

  12. Slide 12: As part of Strategy 2027, we have set a strategic vision for each function

    As part of Strategy 2027, we have set a strategic vision for each function Vision To be the trusted bank for our clients  We build long term relationships with clients, create an unrivaled work environment for our people and deliver Mission consistent value for our shareholders  Corporate Banking

  13. Slide 13: Strategy 2027 is transforming the bank through 40+ initiatives across 9 businesses and functions

    Strategy 2027 is transforming the bank through 40+ initiatives across 9 businesses and functions в Focus areas Consumer & Private Corporate Banking Public Institutions Banking Core 1 Strategic segmentation & Accelerate Increase penetration Build differentiated and grow DDA and fees segments differen

  14. Slide 14: Strategy 2027 has achieved many milestones in FY 2024

    Strategy 2027 has achieved many milestones in FY 2024... Issued $750 M Tier-1 sustainable Sukuk  SAIB issued its first USD denominated additional tier-1 sustainable Sukuk under its international Sukuk program joining its peers  The offer was over-subscribed in a short span before listing on London

  15. Slide 15: ...and has set ambitious goals to achieve in the coming year

    …and has set ambitious goals to achieve in the coming year Consumer & Private Corporate Banking Banking Public Institutions  Launch revamped account opening, trade  Launch the new Mobile Banking App  Launch revamped account opening journey process and enhanced operating model  Enhance the value

  16. Slide 16: With our strategy, we aim to grow market share, increase fee income and improve efficiency

    With our strategy, we aim to grow market share, increase fee income and improve efficiency to drive higher ROE Grow Market Share in Commercial Loans Grow Market Share in Retail Loans SAIB has already started to close the gap Commercial KSA Market Share towards KSA peers’ return on equity Retail KSA

  17. Slide 17: Financial Performance

    Financial Performance FY 2024 The Saudi Investment Bank – FY 2024 Investor Presentation P. 17

  18. Slide 18: SAIB is focused on delivering strong results across key performance indicators

    SAIB is focused on delivering strong results across key performance indicators FY 2024 DRIVERS LOANS & ADVANCES SAR 99.5bn +23% YoY Strong growth in Corporate (+25%) and Private Banking (+18%) loans Balance Sheet DEPOSITS SAR 94.0bn +13% YoY Strong growth in IBDs (+17%) mainly from corporate and ret

  19. Slide 19: Balance sheet momentum funded largely by deposits and interbank

    Balance sheet momentum funded largely by deposits and interbank Total assets increased by 21% YoY as loans grew 23% and investments rose 25%, which were partially offset by decreased balances with SAMA (-10%) and a reduction in Loans & Advances (SARbn) Retail Corporate Other bank placements (-11%) T

  20. Slide 20: Loan growth continues to gain momentum mainly driven by corporate lending

    Loan growth continues to gain momentum mainly driven by corporate lending 23% YoY growth in loans driven by 25% increase in +6% Loans & Advances by Segment (%) corporate lending due to widespread growth across sectors and further expansion of private banking lending +5%  +1% Total Loans QoQ Active

  21. Slide 21: Investments grew 25% YoY driven by acquisition of high-quality, fixed-rate debt securities

    Investments grew 25% YoY driven by acquisition of high-quality, fixed-rate debt securities Increase in investments during FY 2024 mainly driven Investments, Gross by Type (%) Investments by Accounting Classification (%) by new securities purchased to lock-in benefits from high rate environment (mainl

  22. Slide 22: Robust funding structure, leveraging customer deposits and market presence

    Robust funding structure, leveraging customer deposits and market presence Deposits SAIB’s funding is largely comprised of customers’ S&P Funding Structure Overview (SARbn) Interbank deposits which represented 69% of total liabilities BBB Equity attributable to shareholders and 60% of total liabilit

  23. Slide 23: Customer deposits increased 13% YoY mainly driven by IBDs

    Customer deposits increased 13% YoY mainly driven by IBDs Deposits grew 13% during FY 2024, mainly due to increase in interest-bearing deposits Deposits by Segment (%) Q4 2024 saw a 4% decrease in deposits, driven by -4% Deposits QoQ  time deposit repayments and balance sheet optimization. 15% Corp

  24. Slide 24: 11% growth in FY 2024 earnings driven by increased operating income and lower risk cost

    11% growth in FY 2024 earnings driven by increased operating income and lower risk cost Net income increased 11% YoY in FY 2024 driven by 5% growth in operating income, further aided by a 19% decrease in impairment charges Net Income Movement YoY (SARmn) Return of Equity increased 53 bps YoY to 13.1

  25. Slide 25: NSCI grew 3% YoY as 15% growth in average earning assets was mostly offset by NIM contraction

    NSCI grew 3% YoY as 15% growth in average earning assets was mostly offset by a 30bps NIM contraction NSCI grew 3% YoY as 15% growth in average earning NSCI Movement YoY (SARmn) NIM Movement YoY 2024 Guidance assets for FY 2024 and was mostly offset by NIM NIM: 2.70% - 2.75% contraction The YoY NIM

  26. Slide 26: Growth in fee and other income of 17% driven by investment income and banking services fees

    Growth in fee and other income of 17% driven by investment income and banking services fees Fee & other income increased 17% YoY in FY 2024, Fee & Other Income Movement YoY (SARmn) mainly driven by investment-related income and supported by growth of banking services fees Investment related income i

  27. Slide 27: Operating expenses grew by 5% YoY

    Operating expenses grew by 5% YoY Operating expenses increased 5% YoY in FY 2024 Operating Expenses Composition Operating Expenses (SARmn) driven by higher general & administrative and employee- related costs, while the rent and premises-related (%) - FY 24 expenses, as well as depreciation & amorti

  28. Slide 28: Credit quality remained stable with NPL ratio at low levels

    Credit quality remained stable with NPL ratio at low levels Total impairments of SAR 290 mn for FY 2024, Impairments (SARmn) Impairment for loans Cost of Risk decreasing 19% YoY from SAR 359 mn in FY 2023 2024 Guidance COR: 0.30% - 0.35% Cost of risk decreased 15 bps YoY to 0.32% in FY 2024 Non-perf

  29. Slide 29: Solid liquidity, funding and capital position with adequate buffers

    Solid liquidity, funding and capital position with adequate buffers LCR declined by 31.2 ppt during FY 2024 to 164.7%, Liquidity Ratios LCR NSFR Loans to Deposits Ratio SAMA LTD Headline LTD while NSFR decreased 4.4 ppt to 108.7% As of the end 2024, the SAMA regulatory LTD ratio 105.8% was comfortab

  30. Slide 30: FY 2024 Results and 2025 Guidance

    FY 2024 Results and 2025 Guidance The Saudi Investment Bank – FY 2024 Investor Presentation P. 30

  31. Slide 31: FY 2024 financial results provided a strong foundation for setting ambitious goals for the year ahead

    FY 2024 financial results, which largely met expectations, provided a strong foundation for setting ambitious goals for the year ahead 2024 Actual 2024 Guidance 2025 Guidance 2025 Guidance Drivers Balance Sheet LOANS & ADVANCES +23% >20% > 15% Solid growth in Corporate and Private Banking loans YoY

  32. Slide 32: Segmental Performance

    Segmental Performance The Saudi Investment Bank – FY 2024 Investor Presentation P. 32

  33. Slide 33: Income and profit growth driven by strong performance across key segments

    Income and profit growth driven by strong performance across key segments Total Operating Income Movement YoY (SARmn) Net Income Before Zakat Movement YoY (SARmn) +5%  +12%  3,967 129 129 32 4,178 116 152 22 2,270 2,028 20 (10) (68) (68) FY 23 Retail Corporate Treasury Asset Mgmt. Other FY 24 FY 2

  34. Slide 34: Balanced contributions to Operating and Net Income from Retail, Corporate, and Treasury & Investment

    Balanced contributions to Operating and Net Income from Retail, Corporate, and Treasury & Investment, with dominance of corporate loans and retail Deposits Total Operating Income (SARmn) Retail Corporate Net Income Before Zakat (SARmn) Retail Corporate Treasury & Investment Asset Mgmt. & Brokerage T

  35. Slide 35: Strong Corporate net income growth of 13% YoY for FY 2024

    Strong Corporate net income growth of 13% YoY for FY 2024 from higher operating income, positive jaws and stable impairments SAR Million 4Q 2024 4Q 2023 Δ FY 2024 FY 2023 Δ Net Income Before Zakat Movement YoY (SARmn) Net Special Commission Income 329 346 -5% 1,347 1,265 +6% Fee & other income 60 49

  36. Slide 36: Retail net income for FY 2024 increased 4% YoY

    Retail net income for FY 2024 increased 4% YoY as lower impairments more than offset higher expenses and lower fee & other income SAR Million 4Q 2024 4Q 2023 Δ FY 2024 FY 2023 Δ Net Income Before Zakat Movement YoY (SARmn) Net Special Commission Income 349 415 -16% 1,437 1,431 +0% Fee & other income

  37. Slide 37: Treasury and Investments net income for FY 2024 grew by 21% YoY

    Treasury and Investments net income for FY 2024 grew by 21% YoY due to higher operating income and income from associates SAR Million 4Q 2024 4Q 2023 Δ FY 2024 FY 2023 Δ Net Income Before Zakat Movement YoY (SARmn) Net Special Commission Income 228 54 +320% 746 707 +5% Fee & other income 97 116 -16%

  38. Slide 38: Asset management and brokerage net income for FY 2024 grew 23% YoY

    Asset management and brokerage net income for FY 2024 grew 23% YoY, driven by higher income on margin accounts and healthy capital markets activity SAR Million 4Q 2024 4Q 2023 Δ FY 2024 FY 2023 Δ Net Income Before Zakat Movement YoY (SARmn) Net Special Commission Income 18 15 +19% 68 57 +19% Fee & o

  39. Slide 39: Appendix

    Appendix The Saudi Investment Bank – FY 2024 Investor Presentation P. 39

  40. Slide 40: Sustainability embedded in SAIB's core business and governance

    Sustainability has for nearly 10 years been embedded in SAIB's core business and governance, and is now freshly aligned with the Saudi Vision 2030 sustainable development goals Employee capital 1 Social capital Customer capital Takleef (Responsibility) Awn (Helping Others) Responsible banking practi

  41. Slide 41: Core components of SAIB's sustainable finance framework

    Core components of SAIB’s sustainable finance framework Use of proceeds categories under SAIB’s sustainable finance framework Use of Proceeds Project Selection & Management of Reporting Evaluation Proceeds 1 Renewable Energy • Allocation of an amount • A Sustainable Finance • Proceeds will be • Annu

  42. Slide 42: Strengthening our value proposition through a partnership with Real Madrid

    Strengthening our value proposition through a prestigious partnership with Real Madrid Through this partnership, SAIB aims to introduce a unique customer experiences focusing on customer centricity and personalized experiences: • General Customer Experiences. SAIB offers its customers exceptional fo

  43. Slide 43: SAIB Investor Relations

    SAIB Investor Relations For more information, please visit www.saib.com.sa/en/investor-relations or contact SAIB Investor Relations at ir@saib.com.sa The Saudi Investment Bank – FY 2024 Investor Presentation P. 43

The Saudi Investment Bank — FY2024 Earnings Presentation on 6ix