Arab National Bank (1080) Investor presentation summary

Market position and operating environment

• Holds a leading position in Saudi banking, with over 46 years of experience and a strong presence across all main economic sectors, including a branch in London.

• Well-capitalized with a CET1 ratio of 16.6% and market capitalization above 46.2 billion SAR as of March 2025.

• Saudi Arabia’s economy is expanding, driven by Vision 2030, with non-oil sectors now contributing over 50% of GDP and robust banking sector growth.

• The national banking industry saw a 13% increase in aggregate net profit in 2024, with total banking assets surpassing $1 trillion.

• Fintech sector is rapidly growing, with over $1 billion invested and more than 230 fintech companies expected by 2025.

Financial performance and business mix

• Total assets reached 264.7 billion SAR (+13.6% YoY), with customer deposits at 195.6 billion SAR (+12.1% YoY).

• Net income for Q1 2025 was 1.304 billion SAR (+5.5% YoY), with operating income at 2.5 billion SAR (+9.6% YoY).

• ROAE improved to 13.07% (+58 bps YoY), and cost-to-income ratio remained efficient at 31.7%.

• Loan book is well-diversified, with corporate loans making up 75% and retail loans 25% of the portfolio.

• NPL ratio is low at 1.34%, with strong provision coverage and stable cost of risk at 40 bps.

Strategic initiatives and digital transformation

• Five-year strategy targets top market position, digital leadership, and tailored value propositions for corporate, retail, and wealth segments.

• Focus on expanding in strategic sectors, enhancing SME banking, and supporting Vision 2030 projects.

• Digital banking saw 43% YoY growth in new customer acquisition and 15% growth in digital transactions.

• Launched hyper-personalized retail app, robo advisory, and digital gold wallet; upcoming launches include anb Business and revamped retail internet banking.

• Core growth initiatives include advanced analytics, AI-powered relationship management, and fintech ecosystem partnerships.