MENU
saib logo saib vision

INTEGRATED REPORT 2020

ENGLISH / العربية

Materiality

GRI 102-47

SAIB’s purpose is to create value in the short, medium, and long term for itself and its stakeholders. Value creation is a two-way process in which the Bank delivers value to its stakeholders and derives value from them. Value creation should be viewed within the context of the Bank’s operating environment and the needs and priorities of its stakeholders.

The Bank has identified the topics that have the most impact on its value creation process through a multi-step process. The first step of the process was a PESTEL analyzis of potential material issues categorised under the stakeholder group on which they have the most impact, and is shown in the following table:

Stakeholders Political A Economic B Social C Technological D Environmental E Legal/Regulatory F
Investors/ Shareholders Economic slowdown Growing influence of social media Unorthodox competition IFRS 9 1
Depreciating currencies against USD Basel III 2
Expected growth in the Saudi economy Higher regulatory capital 3
Financial system stability Governance and accountability 4
Customers Propensity to invest in Saudi Arabia Increasing customer expectations (especially in the younger generation) Cloud computing Adherence to Islamic banking principles 5
Corporates are de-leveraging Customer trust and protection e-onboarding 6
Increase in
non-performing loans 		Quality of service and customer satisfaction Digitization
and automation 		7
New parallel stock market being set up
for MSMEs 		Engaging with customers Innovation and product development 8
Higher oil prices AI, robotics 9
Higher percentage of short-term loans Blockchain 10
Cybersecurity threats 11
Infrastructure and accessibility 12
Data security 13
Accessibility for special needs customers 14
Employees Employee productivity Technology driving change in job skills Human and labour rights 15
Staff retention Operational efficiency 16
Saudization Remote working 17
Employee satisfaction and engagement 18
Staff training 19
Soft skills development 20
Equal opportunity and anti-discrimination 21
COVID-19 precautions 22
Community and the environment Geopolitical conflicts Need to commit to Sustainable Development Goals Reduction of environmental impact of operations ESG risk in lending and investment 23
Higher spending power in local population Increasing demand for green banking and green lending Compliance with regulations 24
Community investment and engagement 25
Business partners/ suppliers Sustainable procurement 26
Strengthening relationship 27
Government/ Policymakers Slow growth in economic integration in the GCC Expected increase in
non-oil revenue 		28
Growth of MSME sector being part of the Vision 2030 goals Recovery from the COVID-19 pandemic 29
Diversification of the economy being one of the Vision 2030 goals 30
Regulators Business ethics and prevention of financial crime 31

The next step of the process is to map the topics that have the most impact on stakeholders and/or SAIB. The topics have been categorized as risks or opportunities or both.

The degree of materiality of importance of a topic is assessed according to its relevance to SAIB or the stakeholder and its significance, as determined by the probability of its occurrence and the magnitude of its impact. Material risks and opportunities are further analyzed to determine their importance to the Bank and its stakeholders.

The outcomes of the materiality analyzis contributed to the formulation of the Bank’s strategies and strategic imperatives.

Management approach

Material topics are managed in accordance with the Bank’s strategic plan and responsibilities are assigned to the respective functional unit heads as per the Organization’s structure. The degree of materiality of a risk or opportunity will be a guideline for resource allocation. The Bank has designed and implemented many policies relevant to the material topics to guide its employees in conducting their duties.

Opportunities to be seized

Risks to be mitigated

Close