Investor Presentaiton
Improved
Stable
Worsened
Higher profitability despite lower NIM showcase the higher
efficiency of the broader KSA banking sector
Return on Equity (%)
Assets/Equity (x)
6.5
6.4
6.7
6.4
12.9
9.7
10.9
11.4
Return on Assets (%)
2018
2019
1.9
1.6
1.7
1.4
Note: All the charts above are based on FY numbers
Op Income stands for Operating Income;
Scaling and some numbers might not add up due to rounding
Source: Financial statements, Investor presentations, A&M analysis
2018
0.6
2019
2018
2018
4.1
4.2
22.1
3.9
3.6
21.6
Op. Income / Assets (%)
Non-Interest Income /
Op. Income (%)
Yield On Credit (%)
KEY TAKEAWAYS
23.4
6.8
23.0
6.3
5.6
4.9
35.4
35.4
35.3
Cost / Income Ratio (%)
Net Interest Margin (%)
Cost of Funds (%)
Cost of Risk (%)
0.9
1.1
2020
2021
0.7
35.2
14
2018
3.3
3.4
3.1
2.9
1.1
0.9
0.6
2018
82.4
2019
2019
2020
LDR (%)
83.2
86.0
2021
0.4
2021
91.5
Aggregate RoE improved during FY'21,
supported by higher net profit
(+15.5% YoY), as operating income
increased (+3.5%) along with lower
impairment allowance (-28.9%)
Aggregate L&A increased at a faster
pace compared to deposits, as
economy rebounds alongside
improvement in consumer spending
We expect SAMA to match policy rate
hike by the US Federal Reserve, which
will help boost the overall banking
sectors NIM's and in turn its profitability
The outlook for asset quality and cost
of risk remains negative as the loan
deferral program ends by Q1'22
ALVAREZ & MARSALView entire presentation