The Saudi National Bank (1180) Q2 2024 earnings summary

Executive summary

• Net income for H1 2024 reached SAR 10.3 billion, with return on tangible equity at 16.3% and strong financing growth of 6% year-to-date to SAR 637 billion.

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

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

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

Financial highlights

• Net income attributable to equity holders rose 2% year-over-year to SAR 10.3 billion for H1 2024; Q2 net income was SAR 5.2 billion.

• Operating income increased 10% year-over-year, while operating expenses rose 8%, mainly due to digitization and salary increments.

• Domestic cost-to-income ratio improved to 25.2%; group CIR at 26.9%-28% due to international volatility.

• NSCI margin stable at 3.08%-3.09% sequentially; cost of risk moderated to 0.26% for H1 2024.

• Customers' deposits increased to SAR 632.7 billion, up 7% year-to-date.

Outlook and guidance

• Upgraded full-year 2024 financing growth guidance to low double-digit range; NIM guidance unchanged at 3%-3.2%.

• Cost of risk expected at the lower end of 0.3%-0.5%; cost-to-income ratio expected below 27%.

• Expectation of continued strong loan demand in 2025 and beyond, supported by Vision 2030 projects.

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