The Saudi National Bank (1180) Q2 2024 earnings summary

Executive summary

• Net income for H1 2024 reached SAR 10.3 billion, up 2% year-over-year, with return on tangible equity at 16.3% and strong operational efficiency improvements.

• Total assets rose to SAR 1.09 trillion as of 30 June 2024, up from SAR 1.04 trillion at year-end 2023.

• Strategic refresh underway, focusing on customer-centricity, profitable segment growth, and leveraging data and AI.

• Operational excellence initiatives, including automation and digitization, improved cost efficiency and customer experience.

• Independent auditors found no material misstatements in the interim financial information.

Financial highlights

• Financing grew 6% year-to-date to SAR 637 billion, with MSME lending up 18%.

• Customer deposits increased 7% year-to-date to SAR 633 billion; CASA balances up 5% year-to-date.

• Investment portfolio rose 7% year-to-date to SAR 287 billion, mainly in investment-grade GCC and US securities.

• Net special commission income for H1 2024 was SAR 13.96 billion, up from SAR 13.30 billion year-over-year.

• Earnings per share for H1 2024 were SAR 1.66, up from SAR 1.62 in H1 2023.

Outlook and guidance

• Upgraded full-year 2024 financing growth guidance from high single-digit to low double-digit.

• NIM/NSCI margin guidance unchanged at 3%-3.2% for the full year; cost of risk expected at 0.3%-0.5%.

• ROTE guidance maintained at 16%-17%; Tier 1 CAR guidance at 18%-19%.

• The Group continues to monitor capital adequacy and regulatory compliance, maintaining a strong capital base above regulatory minimums.

• Optimistic on lending growth for the full year and beyond, with strong demand in both retail and corporate segments.