Riyad Bank · TADAWUL:1010
Riyad Bank — Q2 2023 Earnings Presentation
34 slides from Riyad Bank's earnings presentation, 2023
Slide 1: Riyad Bank Investor Presentation — Q2 2023
ual eli Riyad Bank Investor Presentation — Q2 2023 |_|
Slide 2: Table of content
Table of content o1 Riyad Bank at glance 02 Strategy update 03 Vision 2030 Initiatives 04, ESG at Riyad Bank 05 Economic overview 03 04 06 07 09 General Business Q2 2023 Financial results Business segments Guidance Appendix 13 24 29 32
Slide 3: Riyad Bank is the third largest bank in Saudi Arabia
Riyad Bank is the third largest bank in Saudi Arabia ¢ + Riyad Bank presence China : To be the most : < innovative&trusted % — 6,549 Employees : financial solutions : 31% Female employees once 3 partner o Assets Operating Income Cost / income Ratio Houston onan 389 SAR bn Q2: 4.0|H1: 8.0 31.2% 1 Age
Slide 4: Recent changes in the macro and regional environment warranted a review of the strategy for 2025
Recent changes in the macro and regional environment warranted a ff review of the strategy for 2025 Rapid increase interest rates impacting credit off- Higher liquidity costs Continued focus on internal in the market capabilities to leapfrog competition Mortgage market volumes 50-60% lower than 2021
Slide 5: But our aspirations remain unchanged: Become the best bank in KSA
But our aspirations remain unchanged: Become the best bank in KSA ff Become the Best Bank in KS wn G a = i @ O ee Lal & 3 Most Most Bank of choice Most innovative & E profitable efficient digitally enabled aap aap aa=D eala=D « Sustainable profit Highest return on Best bank for Most innovative and ¢
Slide 6: Vision 2030 Initiatives
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ of Entities ▪ of Initiatives Signed Agreements ▪ ▪ ▪ ▪ ▪ ▪ ▪ of Live Programs General Business
Slide 7: Embedding corporate responsibility and sustainability into the Bank's strategy
Embedding corporate responsibility and sustainability into the Bank's strategy Riyad Bank plays a strong role in contributing to the growth of Saudi Arabia, and even more so to its sustainable development. For this reason, we have integrated Environmental, Social and Governance (ESG) principles into
Slide 8: General Business
ظاهرة التصحر ابعرها وتداعيتها” جمعية إكرام لحفظ الطعام بمكة دور جهازك المركز الوطني الغير ربحي General Business
Slide 9: Economic environment
Economic environment ° +o
Slide 10: Global economic outlook
50 Source: World Bank Global Economic Prospect June 2023 Source: S&P Global General Business
Slide 11: Saudi economic indicators
Source: GASTAT Source: GASTAT, Riyad Bank General Business
Slide 12: Saudi economic indicators
Source: GASTAT Source: Riyad Bank General Business
Slide 13: Financial results overview
Financial results overview ° +o
Slide 14: H1 2023 Key highlights
H1 2023 Key highlights H1 2023 Vs. H1 2022 +8.7% +9.8% +5.3% +14.7% +1.9% Balance / / / / / Sheet Total assets Loanand Investments, net Customer Demand & other advances, net deposits deposits +26.5% +36.8% -0.7% +26.2% * Credit related impairment increased by 153.2%. Income / / \ / Statement . . = C
Slide 15: Balance sheet summary
59,313 63,644 -6.8% 56,293 +5.4% +8.1% 56,388 54,695 +3.1% 53,538 +5.3% 263,150 251,983 +4.4% 239,650 +9.8% 10,385 10,303 +0.8% 8,472 +22.6% 272,269 257,277 +5.8% 237,477 +14.7% 8,768 8,673 +1.1% 8,716 +0.6% 50,508 58,840 -14.2% 62,311 -18.9% +9.6% 322,121 312,670 +3.0% 301,635 +6.8% 15.8% 15.7% +0.
Slide 16: Loan and deposit composition
3% 10% 6% 14% 67% General Business
Slide 17: Deposit mix
3% 5% 10% 82% General Business
Slide 18: Income statement
6,197 4,529 +36.8% 3,109 3,088 +0.7% +25.6% 1,791 1,803 -0.7% 843 948 -11.1% (2,396) (2,098) +14.2% (1,234) (1,162) +6.2% (1,090) (431) +152.9% (487) (604) -19.4% (46) (177) -74.0% (25) (20) +25.0% 5 (72) +106.9% 4 1 +300.0% +26.5% (460) (390) +17.9% (228) (232) -1.7% 1.28 1.05 +21.9% 0.64 0.65 -1.5
Slide 19: Net special commission income and margins
+26.2% +26.2% 5.68% 5.87% 4.89% 4.17% 3.59% 3.24% 3.72% 3.60% 3.16% 3.41% 2.22% 2.85% 3.00% 1.74% 1.17% 2.63% -0.7% 0.46% 0.68% General Business
Slide 20: Operating expenses
+14.2% Other G&A Employee- Related Depreciation Rent and Premises- Related General Business
Slide 21: Credit quality
Credit quality Stable asset quality trends with solid NPL coverage ratio Impairment Charge for Credit Losses, Net (SARmn) Cost of Risk (YTD %) +60.3% 0.92% 581 , 0.83% 484 378 302 = i P| [] Q1-22.Q2-22. 3-22, 4221-23 Q2-23 Qi-22 H1-22 9M-22 FY-22 Q1-23 H1-23 Annualized YTD Impairment charge for cred
Slide 22: Capital position
+1.5% 22 21 20 19 18 17 Common equity tier 1 capital Tier 1 capital Tier 2 capital 16 15 14 +3.7% 13 CET1 ratio T1 ratio TC ratio Q4-22 Q1-23 Q2-23 Credit risk Operational risk Market risk General Business
Slide 23: Liquidity and funding
182% 187% 181% 172% 165% 157% 10,40 102.4% 72 100.9% 101.0% 60 10,20101.0% 54 56 56 51 10,00 97.9% 9,80 96.7% 9,60 97.7% 97.4% 96.2% 9,40 94.9% 94.7% 9,20 93.6% 9,00 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 117% 117% 116% 118% 117% 117% 12,000 1,500 10,000 8,000 1,000 6,000 4,000 500 2,000 0 0 Q1-22 Q2-22 Q3-2
Slide 24: Business Segments
Business Segments General Business + sooeee eS eooooes, 23
Slide 25: Retail
108,010 98,178 +10.0% 108,010 103,721 +4.1% 110,712 102,974 +7.5% 110,712 107,099 +3.4% +6.9% +8.8% 1,790 2,013 -11.1% 850 940 -9.6% 84 101 -16.8% 37 47 -21.3% (1,542) (1,405) +9.8% (781) (761) +2.6% (301) (120) +150.8% (130) (171) -24.0% Retail -11.4% -94.7% 0.7% H1-22 NSCI Fee & Expenses Impairmen
Slide 26: Corporate
175,940 163,261 +7.8% 175,940 170,171 +3.4% 190,159 171,975 +10.6% 190,159 188,830 +0.7% +8.6% +9.2% 2,476 1,767 +40.1% 1,234 1,242 -0.6% 792 773 +2.5% 391 401 -2.5% (586) (484) +21.1% (305) (280) +8.9% (789) (311) +153.7% (358) (432) -17.1% +28.6% +8.5% 42.4% Corporate General Business
Slide 27: Treasury and investments
93,595 +7.7% 102,334 32,823 -8.5% 27,948 +9.8% +15.4% 619 +192.6% 850 626 559 +12.0 262 364 -28.0% (67) +74.6% (47) (177) -73.9% (21) (72) +106.7% 1 +106.9% +164.4% 51.1% Treasury and investments General Business
Slide 28: Riyad Capital
2,920 +52.0% 4,399 +3.7% 732 -14.4% 912 129 -6.6% 57 288 371 -22.1% 153 135 +13.7% (142) +5.9% (73) -27.7% Riyad Capital -18.2% 5.8% General Business
Slide 29: Guidance
RS Soerer eoooces * + Guidance ° ° seoeen woreees General Business
Slide 30: 2023 guidance
High Single to Low Double Digit High Single to Low Double Digit +40 bps – +60bps +40 bps – +60bps Below 33% Below 31% 60 bps – 80 bps 70 bps – 90 bps Above 15% Above 15% Above 17%* Above 17%* General Business
Slide 31: Q&A
RS oO eee oreoes * + &A ° ° seoeen woreees General Business
Slide 32: Appendix
RS Soerer eoooces * + Appendix ° ° seoeen woreees General Business
Slide 33: Riyad Bank contact
Riyad Bank contact Contact the investor relations for more information: Najla K. Al Mutairi Head of Investor Relations Annual 2022 Report Telephone: +966 11 401 3030 Ext. 2448 E-mail: _najla.almutairi@riyadbank.com Address: Riyadh - Al Shuhada District Eastern ring road Granada Oasis -Tower (A1) P.O
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by Riyad Bank solely for informational purposes. The presentation may contain forward looking statements, which reflect Riyad Bank's beliefs or current expectations and assumptions regarding the future of the business, future plans and strategies, proje