Saudi Awwal Bank (1060) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in FY24, with net income up 15% YoY and revenue up 10% YoY, driven by robust loan growth and market share gains.

• Strategic transformation since 2021 has resulted in sustained growth, improved cost efficiency, and enhanced returns.

• Maintained leadership in corporate and trade banking, with significant contributions from wealth and personal banking.

Financial highlights

• Net income after Zakat and tax reached SAR8.1bn, up 15% YoY; revenue totaled SAR14.0bn, up 10% YoY.

• Gross loans grew 20% YTD to SAR265.6bn; customer deposits increased 5% YoY to SAR267.0bn.

• Cost efficiency ratio improved to 30.6%, ahead of guidance.

• Return on tangible equity (ROTE) after AT1 coupon was 16.0%, up 0.7ppt YoY.

• NPL ratio declined to 1.4%, with cost of risk at 23bps, reflecting strong asset quality.

Outlook and guidance

• 2025 guidance targets mid-teens loan growth, ROTE of 15-16%, and cost efficiency ratio below 30.5%.

• Medium-term targets by 2026 include ROTE of 15-16%, loan growth CAGR in low double-digits to low teens, and cost-income ratio of 30-32%.

• Annual OPI growth expected at 6-10%.