2Q 2023 Investor Presentation
FY 2023 Assumptions and Outlook | High interest rates is expected to weigh on credit demand
Economy
Interest Rates
Strategy &
Execution
2Q 2023 Investor Presentation
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IMF revised down Saudi GDP growth forecasts to 1.9% in 2023 and 2.8% in 2024
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Saudi economy grew by 1.1% in 2Q23, driven by 5.5% growth in non-oil activities and 4.2% contraction in oil activities.
Consumer spending increased by 8.9% in 1H 2023 on the back of improved economic activities
Mortgage growth impacted due to the recent subsidy program changes while non-retail growth remains healthy
Interest rates are expected to peak in early 3Q 2023 and then stay flat for the remaining of the year
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Higher interest rates is expected to weigh on credit demand and deposits mix in 2023
Gross yields trend is expected to continue improving during the year reducing cost of funding pressure
SRC benchmark rate remains unchanged since the latest change in March 2023
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"Bank of the Future" strategy delivery is in-line or ahead of expectations
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Strategy execution is on track to build a financial ecosystem addressing changing customer needs
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The focus will continue to improve the bank overall efficiencies through several initiatives
ESG remains a focus for the management to build a sustainable business that contributes to the bottom line
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