Saudi Awwal Bank records SAR2.0 billion net profit after Zakat and Income Tax for 1Q24 – an increase of [16]% compared to 1Q23

May 2024

Riyadh, Saudi Arabia – 5\May\ 2024: Ms. Lubna S. Olayan, Chair of the Board of Directors of the Saudi Awwal Bank (SAB), announced today the Bank’s financial results for the period ended 31 March 2024.

SAB recorded a net profit after zakat and income tax of SAR 2,043 million for the period ended 31 March 2024, representing an increase of 16% compared to the same period of 2023. Total operating income rose 7% to SAR 3,447 million.

Commenting on the financial results, Ms. Olayan stated: “I am delighted to share with you the highlights of our achievements in the first quarter of 2024. It has been an exceptional period for SAB, marked by achieving significant milestones and continued success.

Our loan growth has been remarkable, outpacing the market with a solid 6% year-to-date increase. This growth has been primarily driven by institutional and large corporate businesses, showcasing the strength of our offerings in these segments. Notably, our mortgage growth has also been a key component of growth, with a commendable 16% origination market share.

Our trade-related business has experienced a similar upward trajectory, rising by 6%, with multinational activity continuing to expand, underscoring our global reach and influence.

In addition, I am pleased to announce that we have achieved record revenue of SAR 3.4 billion, representing an impressive 8% quarter-on-quarter growth. This exceptional performance has contributed to a return on tangible equity (RoTE) of 16.5%, reflecting a 16% year-on-year increase in net income.

Our commitment to excellence underlies these results and has garnered industry recognition, as we were honored with the esteemed "Best Trade Finance Provider in Saudi Arabia" award by Global Finance and the prestigious "Best Domestic Private Bank in Saudi Arabia" award by Euromoney Private Banking Awards. These accolades highlight the strength and diversity of our services and our unwavering dedication to meeting our customers' needs with efficiency and innovation.

Amidst a challenging global environment, we have also experienced success in furthering our sustainability agenda.

As we look towards the next three years from a business perspective, we have strengthened our ESG governance, sustainable finance practice, and focus on climate change. Our commitment to sustainability has been recognised by Global Finance designating SAB the "Best Bank for Sustainable Finance in Saudi Arabia."

Our strategy positions us as a future-ready institution, a leader in the digital and ESG realms, and a clear leader outpacing the lending market. We also aim to be a formidable player in Corporate Banking and Treasury, while continuing to enhance our reputation as the bank of choice for an even broader range of customers.

Lastly, our partnership with HSBC remains instrumental to our success and journey, further solidifying our position as one of the leaders in the banking industry in the Kingdom of Saudi Arabia.

These achievements would not have been possible without the dedication and hard work of our board members, senior management committees, and the entire SAB staff. I extend my sincerest gratitude to them for their contributions. I would also like to express our appreciation to HSBC for their unwavering support and to the Saudi leadership and our regulators, the Saudi Central Bank and the Capital Market Authority, for their continued guidance and assistance.

Summary of results:

• 1Q24 net profit after zakat and income tax of SAR 2,043 million was higher than the SAR 1,765 million recorded in 1Q23, up 16%
• 1Q24 total operating income of SAR 3,447 million was higher than the SAR 3,218 million recorded in 1Q23, up 7%
• 1Q24 net loans advances of SAR 229 billion were higher than the SAR 191 billion recorded in 1Q23, up 20%
• 1Q24 customer deposits of SAR 252 billion were higher than the SAR 226 billion recorded in 1Q23, up 11%
• 1Q24 shareholders’ equity of SAR 63 billion was higher than the SAR 57 billion recorded in 1Q23, up 10%