Saudi National Bank · TADAWUL:1180
Saudi National Bank — Q2 2023 Earnings Presentation
20 slides from Saudi National Bank's earnings presentation, Aug 3, 2023
Slide 1: 2Q 2023 Earnings Presentation
2Q 2023 Earnings Presentation Saudi National Bank Riyadh | 3 August 2023
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: Saudi National Bank
Saudi National Bank The Kingdom’s largest and most profitable banking group with proven record of growth and value creation SNB enjoys a dominant market position… …in an attractive domestic economic environment… ..…with a long run-way of growth. 1.40 8.7% 10.0% Overall Banking (Assets) #1 GDP Growth
Slide 4: SNB is focused on our strategic objectives
Strategy SNB is focused on our strategic objectives Upgrade Transaction Banking proposition Grow domestic market share in Retail & Corporate Evolve distribution model for the future financing and CASA Drive payroll customer acquisition Drive efficiency & productivity Optimization of costs & funding, a
Slide 5: Strong track record of execution on merger synergies
Merger Update Strong track record of execution on merger synergies Unlocking merger benefits… with realized cost synergies already touching revised target of SAR 1.4Bn 1,379 Realized1 1,400 2 Revised Target nd Cost Synergies 99% 1,379 1,164 Realized of revised targeted 1,200 1st Revised Target cost
Slide 6: Economic outlook remains positive and FY 2023 NSCI margin guidance revised downwards
Outlook & Guidance Economic outlook remains positive and FY 2023 NSCI margin guidance revised downwards Macro-Economic Outlook1 SNB Financial Guidance FY 2022 Baseline 1H 2023 Actual FY 2023 Guidance Status Real GDP Growth +1.9% Financing Growth SAR 545Bn +6% Low double-digit Unchanged NSCI Margin 3
Slide 7: 2Q 2023 Performance Highlights
2Q 2023 Performance Highlights Robust net income growth from solid financing growth, improved efficiency and healthy credit quality Robust financing growth from Wholesale financing and Retail financing, including Mortgage financing SAR Bn 577.8 SAR Bn 251.7 SAR Bn 308.1 SAR Bn 151.7 +6% YTD +8% YTD +
Slide 8: Balance Sheet Summary
Balance Sheet Summary Balance sheet expansion of 5% YTD mainly from financing growth, funded by deposits Total Assets (SARbn) Total Assets Movement YTD (SARbn) 945.5 976.1 996.2 +5% 83 87 84 32.5 2.9 996.2 945.5 8.7 6.5 545 566 578 258 264 265 58 63 67 +15% +3% +6% +3% 4Q 22 1Q 23 2Q 23 4Q 22 Cash &
Slide 9: Financing & Advances
Financing & Advances Solid, broad-based financing expansion Financing & Advances, Net (SARbn) Financing & Advances, Net Movement YTD (SARbn) 2023 Guidance Low double-digit 566.3 577.8 +6% 545.3 2 2 2 19 16 17 7.8 577.8 11.2 243 252 9.2 5.4 233 545.3 (0.7) (0.4) Retail Wholesale SAR +14.7bn SAR +19.0
Slide 10: Investments
Investments Investments up 3% primarily in other fixed income Investments, Net (SARbn) Investments, Net Movement YTD (SARbn) 258.3 263.6 264.8 +3% 26 23 24 58 57 52 8.6 264.8 258.3 0.8 (1.8) (1.0) 175 183 189 Domestic: SAR +7.6bn (+3%) +1% +12% -7% -13% 4Q 22 1Q 23 2Q 23 4Q 22 SGDS1 Other fixed Fund
Slide 11: Deposits
Deposits CASA growth YTD, though QoQ outflow of some transitory deposits moderated CASA ratio Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) 610.8 602.2 568.3 +6% 21 21 24 120 117 134 15.1 602.2 20.8 568.3 (1.7) (0.3) 428 470 447 Domestic: Int’l: SAR +35.9bn (+7%) SAR -2.0bn (-
Slide 12: Income Statement Summary
Income Statement Summary Net income rose 10% YoY from higher operating income and lower impairments Net Income Attributed To Equity Holders Movement YoY (SARmn) Net Income (SARmn) +10% 4,725 4,765 5,022 5,016 4,589 410 10,037 420 (169) 370 (84) 9,091 QoQ +3% +1% +5% -0% 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23
Slide 13: NSCI & Margin
NSCI & Margin NSCI growth of 3% from earning assets expansion partly offset by margin moderation from shift in funding mix Net Special Commission Income Movement YoY (SARmn) Commission Yield & Funding Cost YTD (%) 5.35% +3% 5.44% 4.16% 4.16% 4.94% 1,882 3.90% 4,615 1,661 3.73% 3.13% 12,932 12,374 13
Slide 14: Fee & Other Income
Fee & Other Income Fee and other income increased 12% YoY from higher international income Fee & Other Income Movement YoY (SARmn) Fee & Other Income (SARmn) +12% 1,953 1,973 710 3,926 1,521 381 584 3,506 19 96 (96) (33) (180) 1,425 1,572 1,389 +1% Domestic: SAR -290mn (-9%) QoQ -5% +3% -3% +39% +32
Slide 15: Operating Expenses
Operating Expenses Stable operating expenses as synergies and improved efficiency domestically offset increased International costs impacted by hyper inflation Operating Expenses Movement YoY (SARmn) Operating Expenses (SARmn) +1% 2,547 2,609 2,441 272 318 4,990 169 5,050 303 (18) (5) (59) (27) 2,27
Slide 16: Financing Credit Impairments & Cost of Risk
Financing Credit Impairments & Cost of Risk 17bps reduction in COR from Wholesale recoveries 1 Impairment Charge For Financing & Advances Movement YoY Cost of Risk YTD (%) 2023 Guidance 0.3% to 0.5% (SARmn) -41% 0.39% 0.35% 0.37% 0.33% 982 0.31% 0.33% 0.29% 0.27% 0.20% 0.13% 1H 22 9M 22 FY 22 1Q 23
Slide 17: Credit Quality
Credit Quality Improving NPL ratio YTD from write-offs in Wholesale, while ECL coverage remained healthy Credit Impaired Financing Movement YTD (SARbn) NPL Ratio (%) 1.62% 2.8 10.7 1.63% 1.57% 1.57% -12% 1.59% 1.53% 9.0 0.0 1.36% 1 1.34% 7.9 1.30% 1.30% (1.1) (0.0) 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Grou
Slide 18: Capitalization & Liquidity
Capitalization & Liquidity Capitalization remains healthy, and liquidity is strong and stable Capitalization Ratios (%) 2023 Guidance Total Eligible Capital Movement YTD (SARbn) T1 CAR: 18–19% 19.0% 19.3% 19.8% +2% 18.7% 19.1% 18.4% 10.0 135.4 132.6 18.6% 17.6% 18.3% 17.9% 17.0% (2.7) (0.9) (2.2) (1
Slide 19: Q&A
Q&A 2Q 2023 SNB | 2Q 2023 | Earnings Presentation
Slide 20: 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