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• Net Income: SAR21.2 billion for 2024.

• Return on Tangible Equity (ROTE): 16.2%.

• Cost-to-Income Ratio: 28.3% for the Group; 25.4% domestically.

• Net Interest Margin (NIM): 3% for the year.

• Fee Income Growth: Domestic fee income increased by 22% year-on-year.

• Assets Under Management: SAR240 billion.

• Tier 1 Capital Adequacy Ratio (CAR): 20.3%.

• Financing Growth: 9% increase, driven by wholesale and mortgages.

• Total Deposits: Decreased by 2% year-on-year.

• Debt Securities and Term-Loans: Doubled to SAR95 billion.

• Customer Deposits: Decreased by 9% in Q4.

• CASA Ratio: 72%.

• Operating Expenses: Increased by 7% to around SAR10 billion.

• Cost of Risk: 16 basis points for 2024.

• Non-Performing Loan (NPL) Ratio: Improved to 1.16%.

• Total Eligible Capital: Increased by 11% to SAR157 billion.

• Return on Tangible Equity (Pre-AT1 Cost): 16.8%.

• Warning! GuruFocus has detected 4 Warning Signs with SAU:1180.

Release Date: January 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Saudi National Bank (SAU:1180) reported a record net income of SAR21.2 billion for 2024, translating to a return on tangible equity of 16.2%.

• The bank's strategic focus on innovation and digital transformation, including the launch of SNB NEO, has enhanced service delivery and customer satisfaction.

• Domestic fee income from banking services increased by 22% year-on-year, contributing to a diversified revenue stream.

• The bank's capital market arm, SNB Capital, strengthened its position as the largest asset manager in the Kingdom, with assets under management reaching SAR240 billion.

• The bank successfully issued SAR6 billion in Saudi riyal-denominated additional Tier 1 sukuks, reinforcing its strong position in debt capital markets.

Negative Points

• Financing growth of 9% in 2024 was slightly below expectations due to elevated pricing competition and higher-than-usual corporate repayments.

• Total deposits decreased by 2%, with a notable 9% drop in Q4, attributed to competitive pricing pressures and public sector deposit movements.

• The cost-to-income ratio for the group was slightly above guidance at 28.3%, due to ongoing international volatility.

• The bank's net interest margin (NIM) contracted by 13 basis points to 3% for the year, impacted by international inflation-related controls.

• International operations contributed negatively to the group net income, affected by hyperinflation adjustments.

Q & A Highlights

Q: Can you provide insights into the loan growth guidance of low double-digit for 2025, and how SNB plans to grow in comparison to the sector? A: Tareq Al Sadhan, CEO, stated that SNB aims to grow faster than the market and gain market share. The bank is focusing on sectors like green energy, real estate, construction, tourism, and retail mortgages. SNB has adjusted its risk appetite and sector ceilings to accelerate growth in 2025.