Riyad Bank · TADAWUL:1010
Riyad Bank — Q1 2024 Earnings Presentation
57 slides from Riyad Bank's earnings presentation, Mar 31, 2024
Slide 1: Investor Presentation 1Q 2024
Investor Presentation 1Q 2024 CS ~~ ~~ =e f / f / f U f ~~ sme OAAKA ~~~ => ee ~~~ =~ Riyad Bank - Investor Presentation - 31/03/24
Slide 2: Riyad Bank Profile Strategy Sustainability
Riyad Bank Profile 3 Strategy 7 Sustainability 18 Operating Environment 20 Financial Performance 25 Appendix 55 General Business
Slide 3: Riyad Bank Profile
| Riyad Bank Profile Riyad Bank - Investor Presentation - 31/03/24 ‘General Business
Slide 4: Riyad Bank is the third largest bank in Saudi Arabia
Riyad Bank is the third largest bank in Saudi Arabia 7,887 29% 405 4.1 32.9% 283 1Q: 2.7 0.62% 335 271 1Q: 2.1 16.5% 2,174 82.7% 147.6% 109.6% 234,096 General Business
Slide 5: Riyad Bank is consistently in the top 3 KSA banks across a range of metrics
Riyad Bank is consistently in the top 3 KSA banks across a range of metrics General Business
Slide 6: Riyad Bank is a liquid stock with strong domestic ownership
Riyad Bank is a liquid stock with strong domestic ownership p 88.053 25.45 35.25 11.0x 1.59x 4.9% 89.3% General Business
Slide 7: Strategy
Strategy Riyad Bank - Investor Presentation - 31/03/24 ‘General Business
Slide 8: We have already come a long way on this journey
We have already come a long way on this journey Key Strategic Milestones ▪ ▪ ▪ ▪ ▪ ▪ General Business
Slide 9: We have become a Top-2 bank in corporate and a Top-3 in retail banking
We have become a Top-2 bank in corporate and a Top-3 in retail banking Riyad Bank is #2 Riyad Bank is #3 General Business
Slide 10: Our ambition is to be the best Bank in KSA
Our ambition is to be the best Bank in KSA Most Profitable Most Efficient Bank of Choice Most Innovative & Digitally Enabled General Business
Slide 11: Our aspiration and strategy is built on a few guiding principles
Our aspiration and strategy is built on a few guiding principles Corporate Digital Retail General Business
Slide 12: Our strategy is driven by key operating model shifts
Our strategy is driven by key operating model shifts Segments Broad meet-the-market segment propositions Custom propositions at granular segments Focus on banking needs only Focus on customer ecosystem beyond banking Risk avoidance via policy exclusions Active risk management via analytics Products
Slide 13: Clear KPIs have been set at the Division level as well
Clear KPIs have been set at the Division level as well Mobile first bank with distinctive Most profitable Corp bank & core customized segment/product transaction partner for institutions Retail Corporate Best Bank in KSA Innovation Treasury Leading value creator through Distinctive bank wide enabler
Slide 14: Retail strategic initiatives
Retail strategic initiatives Segments 1 2 3 4 Products 5 6 7 Channels 8 9 10 General Business
Slide 15: Corporate strategic initiatives
Corporate strategic initiatives Segments 1 2 Products 3 Channels 4 General Business
Slide 16: Treasury strategic initiatives
Treasury strategic initiatives Products 1 2 3 4 General Business
Slide 17: Digital strategic initiatives
Digital strategic initiatives Digital 1 2 3 4 General Business
Slide 18: Sustainability Update
|_| Sustainability Update Riyad Bank - Investor Presentation - 31/03/24 ‘General Business
Slide 19: Embedding Sustainability into the Bank's strategy
Embedding Sustainability into the Bank’s strategy Environmental Social Governance Diversity 5 14.4 Tons 5 SAR 4,623,055 mn +15 General Business
Slide 20: Operating Environment
| Operating Environment Riyad Bank - Investor Presentation - 31/03/24 ‘General Business
Slide 21: Sustaining Strength and Resilience in Diverging Economy
Sustaining Strength and Resilience in Diverging Economy p p q p p 52.3 51.0 5.50 5.25 104.5 101.3 5.30 5.33 4.20 3.88 87.48 77.04 General Business
Slide 22: Fueling Growth with Saudi Economy Soaring in 2025
Fueling Growth with Saudi Economy Soaring in 2025 PMI Index Non Oil GDP q q p p p -4.3 -3.2 57.0 57.5 6.0 5.5 8.3% 7.6% 10.7% 10.0% -79.0 -82.0 General Business
Slide 23: Saudi Inflation Equation: Steady and Sustainable
Saudi Inflation Equation: Steady and Sustainable q q p p p -4.3 -3.2 57.0 57.5 6.0 5.5 8.3% 7.6% 10.7% 10.0% -79.0 -82.0 General Business
Slide 24: The Saudi banking sector is attractively positioned for growth
The Saudi banking sector is attractively positioned for growth General Business
Slide 25: Financial Performance
| | Financial Performance Riyad Bank - Investor Presentation - 31/03/24 ‘General Business
Slide 26: Balance sheet
Balance sheet Riyad Bank - Investor Presentation - 31/03/24 26
Slide 27: Total assets increased by 6% YoY driven by the expansion of the loan portfolio
Total assets increased by 6% YoY driven by the expansion of the loan portfolio, funded mainly by customer deposits ◆ ◆ General Business
Slide 28: Two thirds of the growth in loans is coming from commercial book
Two thirds of the growth in loans is coming from commercial book and the remaining portion primarily from mortgages ◆ ◆ 70.6 ◆ 65.0 ◆ General Business
Slide 29: NPL Ratio demonstrates continuous improvement reaching to 1.19% as of 1Q 2024
NPL Ratio demonstrates continuous improvement reaching to 1.19% as of 1Q 2024 ◆ ◆ ◆ General Business
Slide 30: NPL Coverage improved to 141%
NPL Coverage improved to 141% driven by the conservative provisioning to support asset quality ◆ ◆ 89.2% ◆ ◆ 172.7% General Business
Slide 31: Investments grew by 11% YoY mainly from high quality fixed rate securities
Investments grew by 11% YoY mainly from high quality fixed rate securities ◆ ◆ ◆ ◆ 52.0 General Business
Slide 32: Growth in both IBs and NIBs drove the 5% YoY growth in customer deposits
Growth in both IBs and NIBs drove the 5% YoY growth in customer deposits ◆ ◆ ◆ ◆ General Business
Slide 33: Comfortable liquidity position with LCR of 147.6%
Comfortable liquidity position with LCR of 147.6% and SAMA Weighted LDR of 82.7% ◆ ◆ ◆ Available stable funding NSFR HQLA LCR General Business
Slide 34: Stable capitalization well above regulatory minima supporting further growth
Stable capitalization well above regulatory minima supporting further growth ◆ ◆ ◆ ◆ General Business
Slide 35: Income statement
Income statement Riyad Bank - Investor Presentation - 31/03/24 35
Slide 36: Net income reached SAR 2,073 million for 1Q 2024
Net income reached SAR 2,073 million for 1Q 2024, a growth of 3% supported by fee & other income, resulting in ROAE after Zakat standing at 15.5% ◆ ◆ ◆ General Business
Slide 37: Slight drop in NSCI from shifting deposit mix and higher funding cost
Slight drop in NSCI from shifting deposit mix and higher funding cost ◆ ◆ ◆ General Business
Slide 38: NSCI margin stands at 3.40% for 1Q 2024
NSCI margin stands at 3.40% for 1Q 2024, a decrease of 38 bps YoY mainly from higher funding cost ◆ ◆ ◆ ◆ General Business
Slide 39: Neutral sensitivity to the interest rate changes
Neutral sensitivity to the interest rate changes ◆ ◆ ◆ p p ◆ +5.8 SAR mn +0.00% 132 118 General Business
Slide 40: Fee & other income witnessed a strong growth driven by higher fees
Fee & other income witnessed a strong growth driven by higher fees from banking services ◆ ◆ ◆ General Business
Slide 41: Ongoing investments resulted in a higher cost to income ratio
Ongoing investments in infrastructure, digital capabilities, and strategic initiatives resulted in a higher cost to income ratio ◆ ◆ ◆ ◆ 52% General Business
Slide 42: Cost of risk improved from proactive risk management and better asset quality
Cost of risk improved from proactive risk management and better asset quality ◆ ◆ ◆ ◆ General Business
Slide 43: Segment Performance
Segment Performance Riyad Bank - Investor Presentation - 31/03/24 43
Slide 44: Corporate and Riyad Capital were the main drivers for the growth in net income
Corporate and Riyad Capital were the main drivers for the growth in net income for the period General Business
Slide 45: Corporate segment accounts for 52% of total operating income
Corporate segment accounts for 52% of total operating income translating into 62% share in net income before Zakat 2,123 381 302 1,441 1,139 820 135 184 554 65 0 494 272 79 66.5 193 General Business
Slide 46: Corporate profitability sustained by the growth in fee and other income
Corporate profitability sustained by the growth in fee and other income, partly offset by the increase in operating expenses ◆ ◆ General Business
Slide 47: Retail net income declined by 1% YoY
Retail net income declined by 1% YoY, mainly impacted by higher operating expenses ◆ ◆ ◆ General Business
Slide 48: Treasury and Investments net income before Zakat declined by 40% YoY
Treasury and Investments net income before Zakat declined by 40% YoY due to lower net special commission income ◆ ◆ General Business
Slide 49: Strong growth in fee & other income resulted in 61% increase for Riyad Capital
Strong growth in fee & other income as well as NSCI resulted in 61% increase in net income before zakat for Riyad Capital ◆ ◆ General Business
Slide 50: Outlook & Guidance
Outlook & Guidance Riyad Bank - Investor Presentation - 31/03/24 50
Slide 51: With all KPIs within expectations
With all KPIs within expectations Loans, Net SAR 283 bn (+12% YoY) NSCI Margin 3.40% (-21bps YTD) Cost to Income 32.9% Cost of Credit Risk 0.62% CET1 14.7% ROAE after Zakat 15.5% General Business
Slide 52: Historical Performance
Historical Performance Riyad Bank - Investor Presentation - 31/03/24 52
Slide 53: Balance sheet 5-year Summary
Balance sheet 5-year Summary General Business
Slide 54: Income Statement 5-year Summary
Income Statement 5-year Summary General Business
Slide 55: Appendix
| Appendix Riyad Bank - Investor Presentation - 31/03/24 ‘General Business
Slide 56: Contact the investor relations for more information
Contact the investor relations for more information General Business
Slide 57: Disclaimer
Disclaimer General Business