THE SAUDI NATIONAL BANK Investor Relations Contact ir@alahli.com
Preliminary Earnings Release
SNB reports 12% year-on-year net income growth to SAR 5.0 billion in 1Q 2023
1Q 2023 Financial Results Highlights:
- 12% net income growth to SAR 5.0 billion in 1Q 2023 on higher operating income
- Total operating income improved by 8% to SAR 8.7 billion, driven by an increase in net special commission income from margin and balance sheet expansion; Net Special Commission Income Margin for the quarter was 3.24%
- Operating expenses, including net impairment charge for expected credit losses for 1Q 2023 increased by 4% to SAR 2.9 billion from an increase in credit impairments, while operating expenses were stable; the cost-to-income ratio improved year-on-year
- Total assets were SAR 976 billion, 3% higher year to date primarily on growth of financing
- Net financing and advances up SAR 21 billion to reach SAR 566 billion, posting a 4% increase since 31 December 2022
- Customers' deposits grew 8% to SAR 611 billion year to date, leading to an improved CASA ratio
- The Bank maintained a healthy capitalization level and strong and stable liquidity position
Riyadh, 1 May 2023. SNB generated 12% year-on-year net income growth in 1Q 2023. This growth was primarily the result of an 8% improvement in operating income, which was boosted by higher net special commission income from margin expansion and earning assets growth. The overall balance sheet expanded by 3% during the first quarter. The main driver was 4% growth in financing, principally from 3% growth in Retail financing principally from 4% mortgage growth, as well as 4% Wholesale financing growth. Customers' deposits rose 8% in the first quarter, driven by strong domestic CASA growth. SNB has also maintained healthy capitalization levels and a strong liquidity position.
1 May 2023 | SNB 1Q 2023 Preliminary Earnings Release | Page 1 of 4 |
Investor Relations Contact ir@alahli.com
SNB Credit Suisse Investment:
SNB's investment in Credit Suisse was SAR 5.5 billion (through a share placement on 24 November 2022 and a rights issue on 8 December 2022).
At 31 December 2022, SNB's investment in Credit Suisse had declined by approximately 20%. During the three months period ending 31 March 2023, SNB's investment in Credit Suisse had further declined by approximately 70%.
The financial impact on SNB's balance sheet was a decline in the Credit Suisse investment carrying value by approximately 70% during the first quarter of 2023 (the carrying value of the Credit Suisse investment as at 31 March 2023 was SAR 1.3 billion).
The financial impact on SNB's equity was a decline in equity by SAR 3.1 billion during the first quarter of 2023. There was no income statement impact as SNB had made an irrevocable election, as permitted by the accounting standards, to present subsequent changes in the fair value of the Credit Suisse investment through other comprehensive income.
SNB's shareholding in Credit Suisse of 9.88% will convert into a shareholding in UBS of approximately 0.5% upon completion of the merger.
From now until the completion of the merger, we do not expect to see a material difference between the valuation of our investment in Credit Suisse and theoretical valuation of our investment in UBS as the terms of the merger have been publicly announced.
1 May 2023 | SNB 1Q 2023 Preliminary Earnings Release | Page 2 of 4 |
Investor Relations Contact ir@alahli.com
Income Statement Summary
For the quarter ending 31 March 2023
SAR (mn) | 1Q 2023 | 4Q 2022 | Δ | 1Q 2022 | Δ | ||||||||
Special commission income | 11,117 | 10,315 | +8% | 7,012 | +59% | ||||||||
Net special commission income | 6,778 | 6,840 | -1% | 6,108 | +11% | ||||||||
Total operating income | 8,731 | 8,118 | +8% | 8,093 | +8% | ||||||||
Total operating expenses before expected credit | (2,441) | (2,363) | +3% | (2,443) | -0% | ||||||||
losses | |||||||||||||
Net impairment charge for expected credit losses | (493) | (166) | +197% | (386) | +28% | ||||||||
Net income for the period before Zakat and | 5,794 | 5,405 | +7% | 5,161 | +12% | ||||||||
income tax | |||||||||||||
Net income attributed to equity holders | 5,022 | 4,765 | +5% | 4,502 | +12% | ||||||||
Total Comprehensive Income | 2,994 | 3,569 | -16% | 2,518 | +19% | ||||||||
Earnings per share | 1.08 | 1.04 | 0.98 | ||||||||||
Balance Sheet Summary | |||||||||||||
For the quarter as of 31 March 2023 | |||||||||||||
SAR (mn) | 1Q 2023 | 4Q 2022 | Δ | 1Q 2022 | Δ | ||||||||
Investments, net | 263,636 | 258,292 | +2% | 243,981 | +8% | ||||||||
Financing and advances, net | 566,337 | 545,311 | +4% | 514,635 | +10% | ||||||||
Total assets | 976,053 | 945,496 | +3% | 921,565 | +6% | ||||||||
Customers' deposits | 610,791 | 568,283 | +8% | 606,723 | +1% | ||||||||
Equity attributable to equity holders of the bank | 170,151 | 165,973 | +3% | 164,573 | +3% | ||||||||
1 May 2023 | SNB 1Q 2023 Preliminary Earnings Release | Page 3 of 4 |
Investor Relations Contact ir@alahli.com
Additional Information
SNB's 1Q 2023 financial statements, and earnings presentation will be available on the SNB IR website in advance of the 1Q 2023 Earnings Call at:
SNB Corporate Reports
For additional information, please contact SNB at:
The Saudi National Bank Tower, Unit No. 778
King Abdullah Financial District
3208, Al Aqeeq District, King Fahad Road
Riyadh, Kingdom of Saudi Arabia, 13519 - 6676
Institutional investor contact
SNB Investor Relations ir@alahli.com
Shareholder contact SNB Shareholder Affairs shareholdersaffairs@alahli.com
Media contact
SNB Press Office pressoffice@alahli.com
1 May 2023 | SNB 1Q 2023 Preliminary Earnings Release | Page 4 of 4 |
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NCB - National Commercial Bank SJSC published this content on 04 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 May 2023 07:48:06 UTC.
