Saudi Awwal Bank (1060) Q2 2024 earnings summary

Executive summary

• Net income for the six months ended 30 June 2024 rose to SAR 4.1 billion, up from SAR 3.3 billion year-over-year, with EPS increasing to SAR 1.90 from SAR 1.61.

• Revenue for 1H24 increased to SAR 6.9 billion, mainly from higher net special commission income and strong non-funds income.

• Total assets reached SAR 382.3 billion, up from SAR 334.9 billion as of 30 June 2023.

• Loan growth was robust at 21% year-over-year, with customer deposits up 19% year-over-year.

• The interim financials received an unqualified review from independent auditors.

Financial highlights

• Operating income for the six-month period increased to SAR 6,939 million from SAR 6,284 million year-over-year.

• Net special commission income rose to SAR 5,442 million from SAR 5,061 million year-over-year.

• Loans and advances, net, grew to SAR 241.6 billion from SAR 198.7 billion year-over-year.

• Customers' deposits increased to SAR 264.4 billion from SAR 240.9 billion year-over-year.

• 1H24 operating expenses: SAR 2.1 billion, up 6% year-over-year.

Outlook and guidance

• The bank continues to monitor economic developments and adjust risk appetites and credit policies as needed.

• Management expects continued pressure on cost-of-funds due to a higher proportion of time deposits.

• Yields are expected to remain stable, with NIM in line with expectations.

• No explicit forward-looking financial guidance was provided.