Lubna S. Olayan, chair of the board of directors of Saudi Awwal Bank, announced today the bank’s financial results for the fiscal year 2023.
SAB recorded a net profit after Zakat and income tax of SR7 billion ($1.86 billion) for the year ending Dec. 31, 2023, representing an increase of 45 percent compared to 2022. The total operating income rose 32 percent to SR12.71 billion.
Commenting on the financial results, Olayan said: “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 percent and 16 percent, 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.”
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 percent to SR12.7 billion, supported by a stabilizing net special commission income margin, further solidified SAB’s position as a leader in return on tangible equity expansion, exceeding 15 percent.
“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,” Olayan said.
SAB was also recognized as the No. 1 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 practices has been acknowledged through the MSCI upgrade, reinforcing the bank’s leadership in this space. SAB has also solidified its position as the only international bank, reflected in its new branding efforts and its new state-of-the-art office building, which symbolizes the bank’s commitment to growth and innovation, and its readiness to commence the next stage of its strategy.
“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,” Olayan said.
Summary of results:
- The 2023 net profit after Zakat and income tax of SR7 billion was higher than the SR4.8 billion recorded in 2022, up 45 percent.
- The 2023 total operating income of SR12.7 billion was higher than the SR9.65 billion recorded in 2022, up 32 percent.
- The 2023 net customer advances of SR216 billion were higher than the SR183 billion recorded in 2022, up 18 percent.
- The 2023 customer deposits of SR241 billion were higher than the SR214 billion recorded in 2022, up 12 percent.
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The 2023 shareholders’ equity of SR62 billion was higher than the SR55 billion recorded in 2022, up 13 percent.
