Investor Presentaiton
NIMs slip further as interest rates fall to a multi-year low
Yield On Credit
6.3%
6.8%
5.6%
4.9%
2018
2019
2020
2021
X
Loan-to-Deposit Ratio (LDR)
91.5%
86.0%
82.4%
83.2%
2018
2019
2020
2021
Cost of Funds
(Yearly)
1.1%
0.9%
0.6%
0.4%
2018
2019
2020
2021
Net Interest Margin
(%, Yearly)
3.41
3.25
2018
Note: Relation between elements above represents a functionality and not necessarily an exact mathematical formula
Source: Financial statements, Investor presentations, A&M analysis
3.07
2.88
2019
2020
2021
8
KEY TAKEAWAYS
NIM further dropped by 18 bps to
2.88% during FY'21, due to the broader
low interest rate environment
Saudi's central bank had cut repo
rates by 125 bps in March'20 to c.
1.0% to support the economy during
the pandemic
SABB (-51 bps YoY) reported the
highest decrease in NIM, followed by
BALB (-29 bps YoY)
Aggregate yield on credit declined by
74 bps YoY, while cost of funds fell 23
bps YoY
UTT
ALVAREZ & MARSALView entire presentation