Saudi Awwal Bank : SAB Datapack 2Q2023 Performance

Saudi Awwal Bank

Data Pack

2Q 2023

This supplement includes summarised financials and key performance indicators. The key sources of the information included are the published financial statements which are prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed in the Kingdom of Saudi Arabia, and other standards and

pronouncements issued by the Saudi Organization for Chartered and Professional Accountants The key sources are compliant with the provisions of Banking Control Law, the Regulations for Companies in the Kingdom of Saudi Arabia, and By-laws of the Bank. The purpose of the document is to provide trends on key financials and performance metrics, on a like-for-like basis. Users of the document are encouraged to refer to the financial statements for further detail where required.

Index

Summary Financials

Income Statement & Balance Sheet

Segmental Information

Glossary

PUBLIC

												SAB Data pack |	2Q23 Performance
Summary Income Statement (SAR mln)					Three months ending								Six months ending
31-Mar-21	30-Jun-21	30-Sep-21	31-Dec-21	31-Mar-22	30-Jun-22	30-Sep-22	31-Dec-22	31-Mar-23	30-Jun-23				30-Jun-22	30-Jun-23
Net special commission income	1,427	1,467	1,407	1,416	1,414		1,718	1,985	2,292	2,534	2,527				3,132		5,061
Non-funds income			546	456	480	480	599		524	522	644	684	539				1,123		1,223
Total operating income (Revenue)	1,973	1,923	1,886	1,897	2,013		2,242	2,507	2,936	3,218	3,067				4,254		6,284
Provision for expected credit losses, net	(2)	(26)	(13)	(414)	(60)		(136)	(38)	(212)	(229)	(139)				(196)		(367)
Total operating expenses	(858)	(787)	(853)	(931)	(841)		(863)	(881)	(1,077)	(1,006)	(996)				(1,704)		(2,002)
Share in earnings of an associate	39	25	20	47	68		53	47	5	30	47				121		76
Net Income for the period before zakat & income tax	1,152	1,136	1,041	599	1,179		1,297	1,635	1,652	2,012	1,979				2,476		3,991
Provision for zakat and income tax	(167)	(212)	(150)	(166)	(163)		(203)	(231)	(239)	(248)	(429)				(366)		(677)
Net income for the period after Zakat & income tax from	985	924	890	433	1,016		1,094	1,403	1,413	1,765	1,550				2,110		3,314
continuing operations
Loss from discontinued operation	(14)	(5)	(5)	(6)	(12)		(12)	(6)	(24)	-	-				(24)		-
Net Income for the period after zakat & income tax	970	919	886	427	1,004		1,082	1,398	1,389	1,765	1,550				2,086		3,314
Attributable to:
Equity holders of the Bank	974	919	885	427	1,006		1,083	1,396	1,389	1,766	1,550				2,089		3,314
Non-controlling interest	(4)	0	0	0	(2)		(1)	2	(1)	-	-				(3)		-
Net income for the period	970	919	886	427	1,004		1,082	1,398	1,389	1,766	1,550				2,086		3,314
Balance Sheet - Summary (SAR mln)					As at									As at
			31-Mar-21	30-Jun-21	30-Sep-21	31-Dec-21	31-Mar-22	30-Jun-22	30-Sep-22	31-Dec-22	31-Mar-23	30-Jun-23			30-Jun-22	30-Jun-23
Loans and advances, net	156,710	161,444	163,500	167,556	176,148		176,214	183,160	183,132	191,001	198,671				176,214		198,671
Loans and advances, gross	163,799	168,569	170,478	174,259	182,938		182,079	189,087	189,143	196,909	204,670				182,079		204,670
-Non-performing loans	5,373	5,407	4,877	4,210	4,291		4,132	4,425	4,292	4,034	3,968				4,132		3,968
-Purchased or originated credit impaired loans - POCI	3,773	3,736	3,763	3,773	3,701		3,822	3,807	3,841	3,785	3,794				3,822		3,794
-Provisions (BS)	7,089	7,125	6,978	6,702	6,790		5,864	5,927	6,010	5,908	5,999				5,864		5,999
Investments	63,225	65,135	66,106	64,904	65,588		73,064	78,786	86,363	90,979	93,530				73,064		93,530
			183,690	186,828	180,248	186,761	193,889		207,451	202,864	214,279	225,983	222,734				207,451		222,734
Demand deposits	130,781	140,297	139,641	152,966	147,939		154,585	144,964	141,427	149,317	135,140				154,585		135,140
Total Assets	271,555	272,940	269,552	272,396	282,692		302,539	299,990	314,451	328,885	334,913				302,539		334,913
Total Equity	52,035	52,881	52,601	53,029	53,777		53,907	53,434	54,683	57,034	56,693				53,907		56,693
Tangible Equity	41,109	42,078	41,825	42,288	43,055		43,226	42,670	43,846	46,262	45,990				43,226		45,990
No. of shares	2,055	2,055	2,055	2,055	2,055		2,055	2,055	2,055	2,055	2,055				2,055		2,055
Key performance metrics (% unless otherwise stated)					For the period ending								For the period ending
			31-Mar-21	30-Jun-21	30-Sep-21	31-Dec-21	31-Mar-22	30-Jun-22	30-Sep-22	31-Dec-22	31-Mar-23	30-Jun-23			30-Jun-22	30-Jun-23
Basic and diluted earnings per share (in SAR)			0.47	0.45	0.43	0.21	0.49		0.53	0.68	0.68	0.86	0.75				1.02		1.61
Net Interest Margin - NIM			2.0%	2.1%	2.0%	2.0%	2.0%		2.3%	2.5%	2.9%	3.1%	3.0%				2.2%		3.1%
Demand Deposit Ratio - NIBs	71%	75%	77%	82%	76%		75%	71%	66%	66%	61%				75%		61%
Cost/Income ratio	43.5%	40.9%	45.2%	49.1%	41.8%		38.5%	35.2%	36.7%	31.3%	32.5%				40.0%		31.9%
Cost of Risk - CoR			0.00%	0.06%	0.03%	0.96%	0.13%		0.30%	0.08%	0.45%	0.47%	0.28%				0.22%		0.37%
Non-performing loans ratio - NPL+POCI	5.6%	5.4%	5.1%	4.6%	4.4%		4.4%	4.4%	4.3%	4.0%	3.8%				4.4%		3.8%
Non-performing loans ratio - NPL	3.3%	3.2%	2.9%	2.4%	2.3%		2.3%	2.3%	2.3%	2.0%	1.9%				2.3%		1.9%
Provision coverage	131.9%	131.8%	143.1%	159.2%	158.2%		141.9%	134.0%	140.0%	146.4%	151.2%				141.9%		151.2%
Loans-to-deposits ratio	85.3%	86.4%	90.7%	89.7%	90.8%		84.9%	90.3%	85.5%	84.5%	89.2%				84.9%		89.2%
Liquidity Coverage Ratio - LCR			235.0%	209.8%	188.8%	178.2%	156.5%		157.8%	179.2%	171.9%	207.0%	179.2%				157.8%		179.2%
Return on Tangible Equity - ROTE			9.7%	8.9%	8.4%	4.0%	9.5%		10.1%	12.9%	12.7%	15.9%	13.5%				9.8%		14.7%
ROTE excluding discontinued operations			9.9%	8.9%	8.4%	4.1%	9.7%		10.2%	13.0%	13.0%	15.9%	13.5%				9.9%		14.7%
Return on Equity - RoE			7.8%	7.1%	6.7%	3.3%	7.7%		8.1%	10.4%	10.4%	12.8%	10.9%				7.9%		11.9%
Return on Assets - RoA			1.5%	1.4%	1.3%	0.6%	1.5%		1.5%	1.8%	1.8%	2.2%	1.9%				1.5%		2.0%
Common equity tier 1 ratio - CET1			19.6%	19.6%	19.3%	19.3%	18.5%		18.4%	18.0%	17.7%	17.2%	16.5%				18.4%		16.5%
Capital Adequacy ratio			22.4%	22.3%	21.9%	21.8%	21.0%		20.7%	20.3%	19.9%	19.3%	18.6%				20.7%		18.6%

PUBLIC

SAB Data pack | 2Q23 Performance

Income Statement - Summary (SAR mln)					Three months ending						Six months ending
	31-Mar-21	30-Jun-21	30-Sep-21	31-Dec-21	31-Mar-22	30-Jun-22	30-Sep-22	31-Dec-22	31-Mar-23	30-Jun-23		30-Jun-22	30-Jun-23
Special commission income	1,618	1,642	1,556	1,563	1,590		2,013	2,521	3,198	3,801	4,089	3,602		7,890
Special commission expense	(191)	(174)	(150)	(147)	(176)		(295)	(536)	(907)	(1,267)	(1,562)	(471)		(2,829)
Net special commission income	1,427	1,467	1,407	1,416	1,414		1,718	1,985	2,292	2,534	2,527		3,132		5,061
Net fee and commission income	270	256	272	174	261		243	221	162	284	269	503		553
Net FX and investment income	211	204	214	296	313		273	311	330	406	263	586		670
Other operating income, net	65	(4)	(7)	11	25		8	(10)	153	(7)	7	33		0
Total operating income	1,973	1,923	1,886	1,897	2,013		2,242	2,507	2,936	3,218	3,067		4,254		6,284
Salaries and employee related expenses	(408)	(383)	(454)	(490)	(411)		(435)	(449)	(514)	(510)	(529)		(846)		(1,038)
Rent and premises related	(20)	(9)	(15)	(18)	(12)		(10)	(10)	(18)	(18)	(14)	(22)		(31)
Depreciation and amortization	(187)	(161)	(141)	(132)	(116)		(116)	(116)	(117)	(117)	(110)	(232)		(227)
General and administrative expenses	(243)	(234)	(243)	(291)	(302)		(302)	(306)	(428)	(362)	(343)	(604)		(705)
Total operating expenses	(858)	(787)	(853)	(931)	(841)		(863)	(881)	(1,077)	(1,006)	(996)		(1,704)		(2,002)
Profit before provision for expected credit losses, net	1,114	1,136	1,034	965	1,171		1,379	1,625	1,859	2,211	2,071		2,551		4,282
Provision for expected credit losses, net	(2)	(26)	(13)	(414)	(60)		(136)	(38)	(212)	(229)	(139)	(196)		(367)
Income from operating activities	1,113	1,111	1,021	552	1,112		1,243	1,588	1,647	1,983	1,932		2,355		3,915
Share in earnings of an associate	39	25	20	47	68		53	47	5	30	47	121		76
Net income for the period before Zakat and income tax	1,152	1,136	1,041	599	1,179		1,297	1,635	1,652	2,012	1,979		2,476		3,991
Provision for Zakat and income tax	(167)	(212)	(150)	(166)	(163)		(203)	(231)	(239)	(248)	(429)	(366)		(677)
Net income for the period after Zakat and income tax from	985	924	890	433	1,016		1,094	1,403	1,413	1,765	1,550		2,110		3,314
continuing operations
Net loss from discontinued operations	(14)	(5)	(5)	(6)	(12)		(12)	(6)	(24)	-	-	(24)		-
Net income for the period after Zakat and income tax	970	919	886	427	1,004		1,082	1,398	1,389	1,765	1,550	2,086		3,314
Attributable to:											-
Equity holders of the Bank	974	919	885	427	1,006		1,083	1,396	1,389	1,765	1,550	2,089		3,314
Non-controlling interest	(4)	0	0	0	(2)		(1)	2	(1)	-		(3)		-
Net income for the period after Zakat and income tax	970	919	886	427	1,004		1,082	1,398	1,389	1,765	1,550		2,086		3,314
Balance Sheet - Summary (SAR mln)					As at							As at
31-Mar-21	30-Jun-21	30-Sep-21	31-Dec-21	31-Mar-22	30-Jun-22	30-Sep-22	31-Dec-22	31-Mar-23	30-Jun-23		30-Jun-22	30-Jun-23
Assets
Cash and balances with SAMA	22,670	17,009	13,961	14,909	14,162		24,716	15,144	19,259	21,908	15,938	24,716		15,938
Due from banks and other financial institutions	8,960	9,695	5,820	5,993	7,405		9,141	2,085	5,872	6,041	6,019	9,141		6,019
Assets classified as held for sale	-	-	68	-	942		1,305	955	-	-	-	1,305		-
Positive fair value derivatives	1,423	1,409	1,463	1,110	1,165		1,554	2,624	2,538	2,117	2,491	1,554		2,491
Investments, net	63,225	65,135	66,106	64,904	65,588		73,064	78,786	86,363	90,979	93,530	73,064		93,530
Loans and advances, net	156,710	161,444	163,500	167,556	176,148		176,214	183,160	183,132	191,001	198,671	176,214		198,671
Investment in an associate	658	584	536	583	651		548	595	599	629	424	548		424
Property and equipment, net	3,196	3,278	3,168	3,246	3,317		3,420	3,500	3,622	3,607	3,688	3,420		3,688
Goodwill and intangibles	10,925	10,803	10,776	10,741	10,722		10,680	10,764	10,837	10,771	10,702	10,680		10,702
Other assets	3,788	3,583	4,155	3,353	2,592		1,896	2,378	2,229	1,832	3,451	1,896		3,451
Total Assets	271,555	272,940	269,552	272,396	282,692		302,539	299,990	314,451	328,885	334,913		302,539		334,913
Liabilities and Equity
Liabilities
Due to banks and other financial institutions	17,170	14,093	17,986	14,664	17,135		22,627	23,041	25,517	26,354	32,957	22,627		32,957
	183,690	186,828	180,248	186,761	193,889		207,451	202,864	214,279	225,983	222,734	207,451		222,734
Debt securities in issue	5,026	5,062	5,026	5,062	5,028		5,066	5,049	5,115	5,071	5,167	5,066		5,167
Liabilities directly associated with assets classified as held for	-	-	-	-	736		805	763	-	-	-	805		-
sale
Negative fair value derivatives	2,011	2,037	1,967	1,515	1,047		1,165	1,826	1,907	1,686	2,137	1,165		2,137
Other liabilities	11,623	12,038	11,724	11,367	11,079		11,518	13,013	12,949	12,756	15,225	11,518		15,225
Total Liabilities	219,521	220,059	216,951	219,368	228,915		248,632	246,556	259,767	271,851	278,220		248,632		278,220
Equity
Equity attributable to equity holders of the Bank
Share capital	20,548	20,548	20,548	20,548	20,548		20,548	20,548	20,548	20,548	20,548	20,548		20,548
Share premium	8,525	8,525	8,525	8,525	8,525		8,525	8,525	8,525	8,525	8,525	8,525		8,525
Statutory reserve	20,548	20,548	20,548	20,548	20,548		20,548	20,548	20,548	20,548	20,548	20,548		20,548
Other reserves	628	161	(30)	(30)	(286)		(535)	(1,143)	(1,182)	(596)	(1,005)	(535)		(1,005)
Retained earnings	1,685	2,998	2,909	3,335	4,342		4,722	4,855	6,245	8,009	8,064	4,722		8,064
Total equity attributable to equity holders of the Bank	51,933	52,779	52,499	52,926	53,677		53,808	53,333	54,683	57,034	56,680		53,808		56,680
Non-controlling interest	101	102	102	102	100		99	101	-	-	-		99		-
Total equity	52,035	52,881	52,601	53,029	53,777		53,907	53,434	54,683	57,034	56,680		53,907		56,680
Total liabilities and equity	271,555	272,940	269,552	272,396	282,692		302,539	299,990	314,451	328,885	334,900		302,539		334,900

PUBLIC

										SAB Data pack |	2Q23 Performance
Segmental Information (SAR mln)					Three months ending						Six months ending
31-Mar-21	30-Jun-21	30-Sep-21	31-Dec-21	31-Mar-22	30-Jun-22	30-Sep-22	31-Dec-22	31-Mar-23	30-Jun-23		30-Jun-22	30-Jun-23
Wealth & Personal Banking
Net special commission income	560	541	533	527	531		583	629	661	716	770		1,114		1,486
Non-funds income	97	73	85	106	119		123	103	77	102	88		243		190
Operating expenses	(463)	(406)	(390)	(431)	(417)		(423)	(431)	(493)	(479)	(463)		(840)		(941)
Expected credit losses	308	(28)	171	48	36		0	41	4	31	(32)		36		(1)
Profit before Zakat and Income tax	501	180	398	251	269		284	341	248	371	363		553		734
Corporate & Institutional Banking
Net special commission income	546	623	542	550	612		804	1,154	1,362	1,431	1,393		1,416		2,824
Non-funds income	305	249	262	162	292		233	218	182	251	269		525		521
Operating expenses	(330)	(326)	(337)	(390)	(333)		(359)	(343)	(397)	(358)	(367)		(693)		(725)
Expected credit losses	(309)	2	(187)	(462)	(97)		(140)	(76)	(217)	(258)	(104)		(237)		(362)
Profit before Zakat and Income tax	213	548	281	(141)	473		538	954	931	1,066	1,192		1,011		2,258
Treasury
Net special commission income	323	304	335	338	269		328	194	244	362	338		597		700
Non-funds income	135	109	127	191	200		161	207	225	289	140		361		429
Operating expenses	(46)	(42)	(44)	(59)	(74)		(82)	(88)	(118)	(94)	(92)		(156)		(186)
Expected credit losses	(1)	1	3	1	1		4	(1)	0	(2)	(2)		5		(4)
Profit before Zakat and Income tax	412	373	421	471	396		411	312	351	556	383		807		939
Capital Markets
Net special commission income	2	(1)	1	1	2		3	7	24	24	27		5		51
Non-funds income	3	8	6	6	6		6	11	198	40	53		12		94
Operating expenses	(3)	(26)	(23)	(12)	(25)		(26)	(36)	(59)	(54)	(56)		(51)		(110)
Expected credit losses	-	-	-	(0)	(0)		(0)	(1)	1	-	(0)		(0)		(0)
Profit before Zakat and Income tax	2	(19)	(16)	(5)	(17)		(17)	(19)	164	11	24		(35)		35
Others
Net special commission income	(5)	0	(5)	1	0		(0)	-	-	-	-		-		-
Non-funds income	6	16	(1)	14	(19)		1	(18)	(38)	0	(11)		(18)		(11)
Operating expenses	(16)	14	(58)	(40)	9		27	17	(10)	(21)	(19)		36		(40)
Expected credit losses	-	-	-	-	-		-	-	-	-	-		-		-
Share in earnings of associates	39	25	20	47	68		53	47	5	30	47		121		76
Profit before Zakat and Income tax	24	55	(43)	23	58		81	47	(43)	9	17		139		26
					As at							As at
	31-Mar-21	30-Jun-21	30-Sep-21	31-Dec-21	31-Mar-22	30-Jun-22	30-Sep-22	31-Dec-22	31-Mar-23	30-Jun-23		30-Jun-22	30-Jun-23
Loans & advances- net
Wealth & Personal Banking	36,845	37,217	38,224	39,630	42,468		43,461	44,316	45,512	47,171	48,160		43,461		48,160
' - of which Home Loans	19,444	19,666	19,614	19,781	20,161		20,634	21,150	21,956	23,359	24,197		20,634		24,197
Corporate & Institutional Banking	119,696	124,060	125,185	127,846	133,578		132,609	137,576	136,430	142,566	149,262		132,609		149,262
SAB Invest	169	167	91	81	102		145	1,268	1,190	1,264	1,250		145		1,250
Total Loans and Advances	156,710	161,444	163,500	167,556	176,148		176,214	183,160	183,132	191,001	198,671		176,214		198,671
Customer Deposits
Wealth & Personal Banking	78,577	77,889	76,365	77,676	76,420		75,401	74,228	71,705	75,984	77,607		75,401		77,607
Corporate & Institutional Banking	94,439	100,549	97,869	105,401	111,181		124,519	117,215	129,751	142,408	131,920		124,519		131,920
Treasury	10,674	8,390	6,014	3,684	6,288		7,531	11,421	12,823	7,591	13,207		7,531		13,207
Total Customer Deposits	183,690	186,828	180,248	186,761	193,889		207,451	202,864	214,279	225,983	222,734		207,451		222,734

Note: Rounding differences may appear in the above tables

PUBLIC

Key Ratios

Net Interest Margin (NIM)

Demand deposit ratio (NIBs)

Cost-Income ratio

Cost of Risk (CoR)

Non performing loans ratio (NPL)

Provision coverage

Loans-to-deposits ratio (LDR)

Liquidity coverage ratio (LCR)

Return on Tangible Equity (RoTE)

Tangible Equity

Return on Equity (RoE)

Return on Assets (RoA)

CET1 ratio (Common Equity Tier1)

Capital Adequacy ratio

Note: Annualisation of ratios based on actual/actual day count

Definition

NIM is calculated as the percentage of net special commission income for the period to the average net special commission income earning assets during the period. The average of the net special commission income assets is calculated using daily averages.

Demand deposit ratio is calculated by dividing the closing demand deposits by total customer deposits at the end of the period.

Cost-income ratio is calculated by dividing total operating expenses (costs) by total operating income (revenue) for the period.

Cost of risk is calculated by dividing the expected credit losses for the period by the average gross loans for the period. Quarterly cost of risk uses a 2-point average, first half uses a 3-point average and the full year uses a 5-point average.

Non performing loans ratio is calculated by dividing the non performing loans by total total loan and advances at the end of the period.

Provision converge is calculated by dividing the provision by non performing loans at the end of there period.

Loans to deposits ratio is calculated by dividing the closing net loans and advances by total customer deposits at the end of the period.

The LCR is calculated by dividing a bank's high-quality liquid assets by its total net cash flows, over a 30-day stress period. The high- quality liquid assets include only those with a high potential to be converted easily and quickly into cash. The three categories of liquid assets with decreasing levels of quality are level 1, level 2A, and level 2B.

Return on tangible equity is calculated by dividing the net income after zakat and income taxes by the average tangible equity for the period. Quarterly RoTE uses a 2-point average, first half uses a 3-point average and the full year uses a 5-point average.

Tangible equity is calculated by deducting goodwill and intangibles from total equity at the end of the period.

Return on equity is calculated by dividing the net income after zakat and income taxes by the average equity for the period. Quarterly RoE uses a 2-point average, first half uses a 3-point average and the full year uses a 5-point average.

Return on Assets is calculated by dividing the net income after zakat and income taxes by the average assets for the period. Quarterly RoA uses a 2-point average, first half uses a 3-point average and the full year uses a 5-point average.

Common Equity Tier 1 (CET1) ratio measures the level of CET1 capital as a percentage of total risk weighted assets.

CET1 capital is the highest quality form of regulatory capital under Basel III that comprises of common shares issued and related share premium, retained earnings and other reserves excluding the cash flow hedging reserve, less specified regulatory adjustments.

The ratio calculated by dividing the Tier I capital by Pillar I Risk Weighted Assets.

The Total Capital Ratio is defined as the banks Total Capital divided by the Total Risk Weighted Assets, where total capital is a measure of the bank's qualifying capital in the calculation of its risk based capital reserves - it consists of both Tier 1 and Tier 2 capital.

Total Capital Ratio = Total Capital / Total Risk Weighted Assets (Pillar I and II)

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