Riyad Bank · TADAWUL:1010
Riyad Bank — Q1 2019 Earnings Presentation
17 slides from Riyad Bank's earnings presentation, May 2, 2019
Slide 1: Results Presentation
Riyad Bank Investor Presentation - 1Q 2019 Results Presentation 1Q 2019 Earnings Call Tareq Al Sadhan, Chief Executive Officer Mohammed Al Qureshah, EVP Finance Riyadh, 2 May 2019
Slide 2: Riyad Bank delivered a strong set of results in 1Q 2019
1Q 2019 Earnings Call Riyad Bank delivered a strong set of results in 1Q 2019 Four areas of focus for today's earnings call 1. Transformation Plan 2. Financial Performance (YoY) ◼ Retail Sales ◼ Net loans grew 12% to SAR 158.2 billion ◼ Corporate Sales ◼ Total Deposits grew 14% to SAR 173.5 billion
Slide 3: First Phase of the Transformation Program
First Phase of the Transformation Program There are four key themes to our Transformation program These strategic priorities will create value for our stakeholders and achieve our vision 1 Retail Sales Transformation 2 Corporate Sales Transformation To be the most innovative and trusted financial so
Slide 4: Retail Sales Transformation
Retail Banking 1 Retail Sales Transformation Retail Banking starts from a good challenger position and has significant upside potential Market Potential - KSA Retail Banking Good challenger position 2018 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % 0% 5% 10% 15% 20% 25% 30% 35%
Slide 5: Corporate Sales Transformation
Corporate Banking 2 Corporate Sales Transformation Corporate banking is in a strong starting position with significant growth potential Market Potential - KSA Corporate Banking Strong starting position 2018 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % NCB 14.0% 25,000 27,686 20,
Slide 6: Performance Culture
Performance Culture 3 Performance Culture We are energising the entire organization to achieve our ambition Shifting the bank's culture requires closing three gaps Recent activates to improve performance culture More Performance Culture accountability New H.O. OHI Exclusive Offers Better More commun
Slide 7: Innovation
Innovation 4 Innovation We have room to improve digital capabilities that deliver a better customer experience Market Potential - Example of rapid digital adoption in KSA Selection of Riyad Bank Digital Channels SADAD Electronic e-Commerce Account - Payment Value in SAR bn 1,000.0 900.0 800.0 2.0 x
Slide 8: Financial Highlights – Balance Sheet
Financial results overview Financial Highlights – Balance Sheet Healthy balance sheet growth from improved economic environment and early progress with transformation initiatives Highlights Total Assets Growth Drivers (SARbn) 250 ◼ Total assets increased by 12% YoY driven by accelerating +12% loan g
Slide 9: Financial Highlights – Income Statement
Financial results overview Financial Highlights – Income Statement Healthy 1Q 2019 profit improvement driven by income growth Highlights Net Income Growth Drivers by Segment (SARmn) ◼ 1Q 2019 Net income increased by 45% YoY from 21% total 2,500 operating income growth, partly offset by an increase i
Slide 10: Income Trends
Financial results overview Income Trends Strong income growth from margin expansion and balance sheet growth Total Operating Income Growth Drivers by Type (SARmn) Total Operating Income Growth Drivers by Segment 2,500 (SARmn) 2,500 +21% +21% 2,000 2,000 165 2,580 136 17 2,580 285 228 1,500 1,500 2,1
Slide 11: Expenses Trends
Financial results overview Expenses Trends Increased costs from investments in the Bank’s transformation program, but yielding improved efficiency Operating Expenses (SARmn) 1Q 19 Operating Expenses Mix by Type (SARmn) 1,400 +5% Other 27% 1,200 904 845 1,000 802 833 808 800 600 845 Employee- Related
Slide 12: Credit Quality
Financial results overview Credit Quality 1Q 2019 cost of risk improved by 4 bps QoQ to 0.40% Impairment Charge Drivers by Segment (SARmn) Cost of Risk (%) 720 +32% 0 0.89% 620 0 520 122 0 0.66% 420 211 0 0.54% 160 0.44% 0.40% 0 320 0 220 (70) 0 0 120 0 20 0 (80) 1Q 18 Retail Corporate 1Q 19 0 1Q 18
Slide 13: Capitalisation & Liquidity
Financial results overview Capitalisation & Liquidity Capitalisation and liquidity comfortably within regulatory limits Capitalisation (SARbn) Capital Ratios (%) +2% 0 19.4% 18.8% 70 0 60 18.4% 18.1% 18.1% 0 41 41 42 0 50 0 17.3% 5 4 4 16.7% 40 0 16.5% 16.1% 16.2% 30 0 0 36 37 38 20 0 10 0 0 0 1Q 18
Slide 14: Riyad Bank Guidance
Financial results overview Riyad Bank Guidance Outcome for FY 2019 is expected to mirror 1Q 2019 Guidance Metric 2018 1Q 2019 2019 Guidance Low double digit Loans, Net SAR 151 Bn SAR158 Bn % growth Net Profit Margin (%) 3.33% 3.44% +10bps to 15bps Cost to Income (%) 37.9% 32.8% Below 35% Cost of Ris
Slide 15: Questions & Answers
Questions & Answers oo xy . ° . ° . ° . ° eo %, g * ’ ¢ ° . . ° . ° . ° . ° oe eo layll whiy riyad bank
Slide 16: 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
Slide 17: Riyad Bank Contact
Riyad Bank Contact Please contact the investor relations team for more information: Ibrahim Al-Muhanna Visit our Website https://www.riyadbank.com/en/about-us/investor-relations Telephone: +966114013030 Ext. 2499 Address: Riyadh - Al Shuhada District Eastern ring road Granada Oasis -Tower (A1) P.O B