Saudi Arabia Banking Pulse

35.7 35.3 -0.4 27.3 26.7 34.0 Improved Stable Worsened 5 Operating efficiency deteriorated substantially for SABB, ALINMA and BJAZ Cost-to-Income ratio (%, Quarterly) 35.8 -0.6 مصرف الراجحي SNB Al Rajhi Bank riyad bank بنك الرياض ساب SABB 42.7 47.6 Note: Scaling and some numbers might not add up due to rounding Source: Financial statements, investor presentations, A&M analysis *Comparison on QoQ basis السعو دين الخر العيدي 1.8 35.8 31.8 4.9 38.6 37.2 Q2'21 Q3'21 - Q2'21 Av Q3'21 Av -4.0 -1.4 4.4 31.5 35.8 بنك البلاد مصرف الإنماء alinma bank Bank Albilad العربي anb 13 46.9 45.2 42.5 44.8 3.1 -1.8 2.3 52.8 49.7 البنك السعودي للاستثمار بنك الجزيرة The Saudi Investment Bank BANK ALJAZIRA 35.2% 35.1% KEY TAKEAWAYS Five of the top ten banks witnessed deterioration in cost-to-income ratio • C/I ratio for SABB deteriorated by 4.9% points QoQ due to higher salaries and rental expenses, along with a fall in net interest income (-4.1% QoQ) C/I ratio for ALINMA deteriorated as well (+4.4% QoQ), driven by higher general and administrative expense BSF's C/I ratio improved the most by 4.0% points, as the operating costs decreased by 3.1% QoQ while operating income rose by 9.1% QoQ ALVAREZ & MARSAL

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