Lubna S. Olayan, Chair of the Board of Directors of Saudi Awwal Bank (SAB), announced today the Bank’s financial results for the period ending 30 September, 2024.
For the first nine months of 2024, SAB recorded a net profit after zakat and income tax of SR5,944 million, representing a year-on-year increase of 16%. Total operating income rose by 10% to reach SR10,467 million.
Lubna Olayan, Chair of SAB, commented: “I am pleased to share that SAB continues to demonstrate a robust financial performance. Our results for Q3 2024 demonstrate the success of the bank’s strategy, with continued growth and strong performance across all customer segments. Our year-to-date Return on Tangible Equity (RoTE) reached an impressive 15.8%.
Net loans and advances reached SR252 billion, representing a 17% year-to-date increase and 19% year-on-year growth. In addition, customer deposits reached SR261 billion, marking an 8% year-to-date increase and a 14% year-on-year growth.
SAB continues to outpace the market in expanding its loan portfolio across both corporate and retail sectors, with year-on-year growth rates of 18% and 24%, respectively. The growth is driven by strategic use of funding and capital resources to grow faster than the market, demonstrating sustained sequential revenue growth. Together with effective cost management, year-to-date ‘pre-provision profits’ rose by 12% and, on a quarterly basis rose 2% sequentially.
Total equity for Q3 stood at SR64 billion, reflecting a 4% year-to-date increase and 16% year-on-year growth – the results highlight SAB’s strong capital position and commitment to long-term sustainability.
Olayan added: “While shifting interest rates, geopolitical tensions and a challenging macro environment created increased uncertainty, we remain very optimistic. We have confidence in the ongoing progress of the Saudi Vision 2030-driven transformation and the pivotal role that SAB and the banking sector play in driving progress forward.”
Aligned with SAB’s growth strategy, the bank sustained its investment in digital transformation programs focusing on market leading digital journeys, enhanced payment capabilities and a personalized digital experience, and ensuring that SAB remains at the forefront of the banking sector.
SAB certified three large scale solar projects as Sustainable Finance projects, reinforcing its commitment to sustainability and responsible investment. These initiatives align with the bank’s broader ESG strategy, and contribute to the dual national goals of economic diversification and renewable energy promotion.
SAB received Euromoney’s “Best Bank for ESG” award for the second consecutive year, demonstrating efforts to align with market best practices whilst remaining a key contributor towards shaping corporate sustainability discussions in the Kingdom.
SAB’s efforts to continuously strengthen its presence in the global space has been productive, reflecting the bank’s commitment to understanding unique client needs and delivering tailored solutions. Recently, SAB forged a partnership with UnionPay, marking a significant step toward enhancing the digital payment ecosystem in the Kingdom.
Olayan added: “Our strong financial position, in addition to our strategic partnership with HSBC, position us well to capitalise on the opportunities ahead. This progress could not have been achieved without the commitment and effort of our board members, senior management team, and the entire SAB staff. I also thank HSBC for their steadfast support, as well as the Saudi leadership and our regulators—the Saudi Central Bank and the Capital Market Authority—for their ongoing guidance and assistance.
© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
