Saudi Awwal Bank (SAB) has announced its financial results for the period ending 30 September, 2024, with a net profit of SR5,944 million, a 16% year-on-year increase. Total operating income also rose by 10% to reach SR10,467 million. Chair of the Board, Lubna S. Olayan expressed her satisfaction with these results, stating that the bank’s strategy has led to continued growth and strong performance across all customer segments. The Return on Tangible Equity (RoTE) for the year-to-date reached an impressive 15.8%.
The bank’s net loans and advances reached SR252 billion, with a 17% year-to-date increase and a 19% year-on-year growth. Customer deposits also saw an 8% year-to-date increase, reaching SR261 billion. SAB has outpaced the market in expanding its loan portfolio across corporate and retail sectors, with growth rates of 18% and 24% respectively. The bank has strategically utilized funding and capital resources to drive growth faster than the market, resulting in sustained revenue growth. Pre-provision profits rose by 12% year-to-date and 2% on a quarterly basis.
Total equity for Q3 stood at SR64 billion, reflecting a 4% year-to-date increase and 16% year-on-year growth. Olayan emphasized the bank’s strong capital position and commitment to long-term sustainability, despite challenges such as shifting interest rates, geopolitical tensions, and a challenging macro environment. SAB remains optimistic about the progress of Saudi Vision 2030 and the role of the banking sector in driving forward progress.
In line with its growth strategy, SAB has invested in digital transformation programs to enhance digital journeys, payment capabilities, and personalized digital experiences, ensuring it remains at the forefront of the banking sector. The bank has also certified three large-scale solar projects as Sustainable Finance projects, aligning with its broader ESG strategy and national goals of economic diversification and renewable energy promotion. SAB’s commitment to sustainability earned it Euromoney’s “Best Bank for ESG” award for the second consecutive year, showcasing its dedication to market best practices and corporate sustainability discussions.
SAB’s efforts to strengthen its global presence have been successful, with strategic partnerships like the one forged with UnionPay to enhance the digital payment ecosystem in the Kingdom. Olayan highlighted the bank’s strong financial position and strategic partnership with HSBC, positioning SAB well to capitalize on future opportunities. She also credited the board members, senior management team, and entire SAB staff, as well as HSBC, Saudi leadership, and regulators for their support and guidance in achieving this progress.
