January 2024

Riyadh, Saudi Arabia – 8\2\2024: Ms. Lubna S. Olayan, Chair of the Board of Directors of the Saudi Awwal Bank (SAB), announced today the Bank’s financial results for the fiscal year 2023.

SAB recorded a net profit after Zakat and Income Tax of SAR 7,002 million for the year ended 31 December 2023, representing an increase of 45% compared to 2022. Total operating income rose 32% to SAR 12,710 million.

Commenting on the financial results, Ms. Olayan stated: “In the fourth quarter of 2023, we continued the strong financial performance witnessed throughout the year. Our robust loan growth remained impressive, with both corporate and retail segments showing positive momentum – both up 18% and 16% respectively.”

She added: “These results affirm the effectiveness of our strategy and highlight our ability to deliver sustainable growth. Looking at the full-year performance, 2023 was a year of confirmation, demonstrating that our strategic direction is yielding positive outcomes. We have achieved sustained loan growth, surpassing market expectations in corporate and retail - particularly in mortgage growth.”

Ms. Olayan also highlighted that in addition to the achievements in cost efficiency, the bank's commitment to prudent risk management contributed to an improvement in asset quality. Moreover, the substantial year-on-year growth in revenues, with an increase of 32% to SAR 12,710 million, supported by a stabilising net special commission income margin (NIM), further solidified SAB's position as a leader in return on tangible equity (RoTE) expansion, exceeding 15%.

“We maintain a strong capital position, supported by a successful AT1 issuance, and boast a leading liquidity position in the Kingdom of Saudi Arabia. Taking proactive measures, we have positioned our balance sheet to navigate the medium-term economic outlook,” Ms. Olayan said.

SAB was also recognised as the number one trade bank. Its mobile banking application positioned it as one of the leaders in the market, offering enhanced privacy, flexibility, and a unique electronic banking experience. Furthermore, SAB’s commitment to environmental, social, and governance (ESG) practices has been acknowledged through the MSCI upgrade, reinforcing the leadership in this space. SAB has also solidified its position as the only international bank which is reflected in its new branding efforts and the completion of its new state of the art office building, which symbolises the Bank’s commitment to growth and innovation, and its readiness to commence the next stage of its strategy.

Finally, Ms. Olayan stated: “I want to extend my gratitude to our board members and senior management for their contributions, to HSBC for their support and to all SAB staff for their unwavering commitment throughout the past year. I also want to thank the Saudi government and our regulators, the Saudi Central Bank and the Capital Market Authority, for their continued support and guidance.”

Summary of results:

• 2023 net profit after Zakat and Income Tax of SAR 7,002 million was higher than the SAR 4,826 million recorded in 2022, up 45%
• 2023 total operating income of SAR 12,710 million was higher than the SAR 9,650 million recorded in 2022, up 32%
• 2023 net customer advances of SAR 216 billion were higher than the SAR 183 billion recorded in 2022, up 18%
• 2023 customer deposits of SAR 241 billion were higher than the SAR 214 billion recorded in 2022, up 12%
• 2023 shareholders’ equity of SAR 62 billion was higher than the SAR 55 billion recorded in 2022, up 13%