Ms. Lubna S. Olayan, Chair of the Board of Directors of the Saudi Awwal Bank (SAB), announced the bank's financial results for 2023. SAB recorded a net profit after Zakat and Income Tax of SAR 7,002 million for the year ended 31 December 2023, a 45% increase compared to 2022. Total operating income rose by 32% to SAR 12,710 million.
Ms. Olayan highlighted the strong performance of the corporate and retail segments, with loan growth of 18% and 16%, respectively. She emphasized the effectiveness of SAB's strategy and its ability to deliver sustainable growth. The bank's commitment to prudent risk management contributed to an improvement in asset quality.
SAB achieved sustained loan growth, surpassing market expectations in corporate and retail, particularly in mortgage growth. The bank's revenue grew by 32% to SAR 12,710 million, supported by a stabilizing net special commission income margin (NIM). This solidified SAB's position as a leader in return on tangible equity (RoTE) expansion, exceeding 15%.
Ms. Olayan noted that SAB maintained a strong capital position and a leading liquidity position in Saudi Arabia. The bank positioned its balance sheet to navigate the medium-term economic outlook.
SAB was recognized as the number one trade bank and its mobile banking application was among the market leaders, offering enhanced privacy, flexibility, and a unique electronic banking experience. The bank's commitment to environmental, social, and governance (ESG) practices was acknowledged through the MSCI upgrade, reinforcing its leadership in this space.
SAB solidified its position as the only international bank, reflected in its new branding efforts and the completion of its new state-of-the-art office building. This symbolizes the bank's commitment to growth, innovation, and readiness to commence the next stage of its strategy.