Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q1 2023 Earnings Presentation
19 slides from Saudi National Bank's earnings presentation, May 16, 2023
Slide 1: 1Q 2023 Earnings Presentation
1Q 2023 Earnings Presentation Saudi National Bank Riyadh | 16 May 2023 SNB | 1Q 2023 | Earnings Presentation
Slide 2: 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
Slide 3: 1Q 2023 Performance Highlights
1Q 2023 Performance Highlights Robust net income growth from solid financing growth, margin expansion, improved efficiency and healthy credit quality, while maintaining strong funding Robust financing growth from Wholesale financing and Retail financing, including Mortgage financing SAR Bn 566.3 SAR
Slide 4: Merger Update
Merger Update Synergy realization is ahead of target and SNB continues to make progress on delivering merger benefits Unlocking merger benefits… with targeted cost synergies revised up for the second time to SAR 1.4Bn 1,290 Realized1 1,400 2nd Revised Target Cost Synergies 92% 1,290 1,164 Realized of
Slide 5: Digital Convergence
Digital Convergence Fostering digital leadership through customer adoption, growing digital sales and scaling up innovation Digitize the Bank Retail Digital Banking Digital Penetration, % Clients Digital Account Opening, % accounts Digital Sales, % Units Fortify digital leadership +6% +10% +5% D
Slide 6: Outlook & Guidance
Outlook & Guidance Economic outlook remains positive and FY 2023 financing guidance revised upwards Macro-Economic Outlook1 SNB Financial Guidance FY 2022 Baseline 1Q 2023 Actual FY 2023 Guidance Status Real GDP Growth +3.1% Financing Growth SAR 545Bn +4% Low double-digit Revised Up NSCI Margin 3.15
Slide 7: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 3% YTD mainly from financing growth, funded by deposits Total Assets (SARbn) Total Assets Movement YTD (SARbn) 945.5 976.1 +3% 921.6 84 83 80 21.0 976.1 945.5 5.2 5.3 515 545 566 (1.0) 244 258 264 83 58 63 +9% +2% +4% -1% 1Q 22 4Q 22 1Q 23 4Q 22 Cash
Slide 8: Financing & Advances
Financing & Advances Solid financing growth in Retail and Wholesale Financing & Advances, Net (SARbn) Financing & Advances, Net Movement YTD (SARbn) 2023 Guidance Low double-digit 545.3 566.3 +4% 514.6 2 2 2 17 19 18 10.2 2.1 566.3 5.6 3.7 233 243 545.3 224 (0.1) (0.4) Retail Wholesale SAR +9.3bn SA
Slide 9: Investments
Investments Investments up 2% as growth in other fixed income securities partly offset by MTM on Credit Suisse investment Investments, Net (SARbn) Investments, Net Movement YTD (SARbn) 258.3 263.6 244.0 +2% 26 23 22 58 57 7.3 0.5 263.6 55 258.3 (2.3) (0.1) 167 175 183 Domestic: SAR +4.8bn (+2%) -0%
Slide 10: Deposits
Deposits Solid CASA growth, partly transitory in nature, maintaining healthy CASA ratio Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) 606.7 610.8 568.3 +8% 18 21 109 24 120 117 42.4 1.6 610.8 568.3 (1.0) (0.5) 480 470 428 Domestic: Int’l: SAR +41.4bn (+8%) SAR +1.1bn (+5%) +10
Slide 11: Income Statement Summary
Income Statement Summary Net income rose 12% YoY mainly from higher NSCI Net Income Attributed To Equity Holders Movement YoY (SARmn) Net Income (SARmn) +12% 4,725 4,765 5,022 669 4,502 4,589 2 5,022 (31) (107) (14) QoQ +2% +3% +1% +5% 4,502 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 Operating Income SAR +638mn
Slide 12: NSCI & Margin
NSCI & Margin NSCI growth of 11% from margin and balance sheet expansion Net Special Commission Income Movement YoY (SARmn) 1 Commission Yield & Funding Cost YTD (%) +11% 5.35% 4.16% 1,000 3.72% 3.90% 2,289 4.16% 780 6,778 3.58% 3.13% 6,108 2.02% 2.38% (3,222) (66) (111) 1.43% 1.13% Domestic: SAR +7
Slide 13: Fee & Other Income
Fee & Other Income Fee and other income decreased 2% YoY from lower other operating income and capital markets fees Fee & Other Income Movement YoY (SARmn) Fee & Other Income (SARmn) -2% 1,984 1,953 161 1,984 8 219 1,953 381 1,277 173 (99) (12) (147) 1,823 1,572 1,105 +53% Domestic: SAR -251mn (-14%
Slide 14: Operating Expenses
Operating Expenses Stable operating expenses as synergies and improved efficiency domestically offset increased International costs Operating Expenses Movement YoY (SARmn) Operating Expenses (SARmn) -0% 2,443 2,363 2,441 179 303 2,443 278 124 2,441 (22) (4) (28) 2,264 2,085 2,138 (71) +3% Domestic:
Slide 15: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk Moderate 4bps increase in COR from increase in Wholesale impairments 1 Impairment Charge For Financing & Advances Movement YoY Cost of Risk YTD (%) 2023 Guidance 0.3% to 0.5% (SARmn) +25% 0.39% 0.37% 0.33% 6 495 0.35% 93 0.31% 0.29% 0.33% (0) 0.24% 0.31% 0
Slide 16: Credit Quality
Credit Quality Improving NPL ratio YTD from write-offs in Wholesale, while ECL coverage remained healthy Credit Impaired Financing Movement QTR (SARbn) NPL Ratio (%) 1.63% 1.62% 3.0 10.8 1.57% 1.57% -13% 1.59% 1.57% 1.47% 1.53% 9.0 1 1.36% (0.1) 0.1 7.8 1.30% (1.2) 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 Grou
Slide 17: Capitalization & Liquidity
Capitalization & Liquidity Capitalization impacted by MTM on investments but remains healthy, and liquidity is strong and stable Capitalization Ratios (%) 2023 Guidance Total Eligible Capital Movement YTD (SARbn) T1 CAR: 18–19% 19.6% 19.0% +3% 18.7% 19.3% 18.4% 18.8% 18.6% 4.8 1.0 132.6 136.2 18.3%
Slide 18: Q&A
Q&A 1Q 2023 SNB | 1Q 2023 | Earnings Presentation
Slide 19: Additional Information
Additional Information Write to Us Visit our website The Saudi National Bank Tower, Unit No. 778 alahli.com King Abdullah Financial District 3208, Al Aqeeq District, King Fahad Road Access SNB’s current and previous Investor Disclosures Riyadh, Kingdom Of Saudi Arabia, 13519 - 6676 SNB Corporate Rep