The Saudi Investment Bank (1030) Q3 2024 earnings summary

Executive summary

• Sustained growth momentum in 9M 2024 with 18% YTD loan and deposit growth, driven by corporate and private banking segments.

• Net income for the nine months ended September 30, 2024, reached SAR 1,446.6 million, up from SAR 1,314.3 million year-over-year.

• Operating income rose 4% YoY, supported by 17% YoY asset growth and higher fee and other income.

• Asset quality improved as NPL ratio declined to 1.41% and NPL coverage remained strong at 155%.

• The interim financial statements received an unqualified review from independent auditors.

Financial highlights

• Loans and advances, net, increased to SAR 94.94 billion from SAR 80.20 billion year-over-year.

• Customers' deposits grew to SAR 98.09 billion from SAR 85.45 billion year-over-year.

• Total assets increased to SAR 151.25 billion as of September 30, 2024, from SAR 129.83 billion a year earlier.

• Net interest margin contracted by 34 bps YoY to 2.74% due to higher cost of funds.

• Fee and other income surged 29% YoY, mainly from investment-related gains and banking services fees.

Outlook and guidance

• FY 2024 loan growth guidance revised upwards to over 20% due to strong 9M performance.

• Net interest margin guidance slightly lowered to 2.70%-2.75% amid cost of funds pressure.

• Cost to income ratio expected to remain below 42%.

• Cost of risk guidance revised down to 0.30%-0.35% reflecting benign credit environment.

• The Board approved an interim cash dividend of SAR 449.7 million (SAR 0.36 per share) for the first half of 2024.