The Saudi Investment Bank (1030) Q2 2024 earnings summary

Executive summary

• Sustained growth momentum in 1H 2024 with loans up 12% YTD and deposits up 15% YTD, driven by corporate and private banking segments.

• Operating income rose 3% YoY to SAR 2,018mn, supported by 16% YoY asset growth and higher fee and other income.

• Net income increased 9% YoY to SAR 929mn, with return on tangible equity improving to 11.9%.

• Interim condensed consolidated financial statements for the six months ended June 30, 2024, were reviewed by independent auditors with no material misstatements identified.

• The bank operates 51 branches in Saudi Arabia, offering both conventional and Shariah-compliant products.

Financial highlights

• Loans reached SAR 90.6bn (+12% YTD); deposits at SAR 95.4bn (+15% YTD).

• Net income for H1 2024 was SAR 928.8 million, up from SAR 852.7 million year-over-year.

• Total assets reached SAR 143.4 billion as of June 30, 2024, compared to SAR 123.6 billion a year earlier.

• Operating income for H1 2024 was SAR 2.02 billion, up from SAR 1.96 billion year-over-year.

• Fee and other income grew 22% YoY, mainly from investment-related gains and banking services fees.

Outlook and guidance

• FY 2024 guidance unchanged: high teens loan growth, NIM around 2.75%, CIR between 41.5%-42.5%.

• Cost of risk guidance revised down to 0.35%-0.40% due to benign credit environment.

• Tier 1 ratio expected to remain above 18.75%.

• No explicit forward-looking guidance provided, but capital adequacy ratios remain well above regulatory minimums, supporting future growth.