Riyad Bank · TADAWUL:1010
Riyad Bank — Q1 2025 Earnings Presentation
55 slides from Riyad Bank's earnings presentation, Mar 31, 2025
Slide 1: Investor Presentation 1Q 2025
Investor Presentation 1Q 2025 CS ~~ ~~ =e f / f / f U f ~~ sme OAAKA ~~~ => ee ~~~ =~ Riyad Bank - Investor Presentation - 31/03/25
Slide 2: Agenda
Riyad Bank Profile 3 Strategy 7 Sustainability 16 Operating Environment 18 Financial Performance 23 Appendix 53 General Business
Slide 3: Riyad Bank Profile
| Riyad Bank Profile Riyad Bank - Investor Presentation - 31/03/25 ‘General Business
Slide 4: Riyad Bank is the third largest bank in Saudi Arabia
Riyad Bank is the third largest bank in Saudi Arabia 7,588 29% 465 1Q: 4.5 30.6% 339 1Q: 3.1 0.40% 333 304 1Q: 2.5 16.4% 1,728 85.7% 146.2% 108.8% 251,365 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 98.685 24.24 32.95 9.5x 1.46x 5.9% 87.2% General Business
Slide 7: Strategy
Strategy Riyad Bank - Investor Presentation - 31/03/25 ‘General Business
Slide 8: 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 9: 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 10: 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 11: 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 12: Retail strategic initiatives
Retail strategic initiatives Segments 1 2 3 4 Products 5 6 7 Channels 8 9 10 General Business
Slide 13: Corporate strategic initiatives
Corporate strategic initiatives Segments 1 2 Products 3 Channels 4 General Business
Slide 14: Treasury strategic initiatives
Treasury strategic initiatives Products 1 2 3 4 General Business
Slide 15: Digital strategic initiatives
Digital strategic initiatives Digital 1 2 3 4 General Business
Slide 16: Sustainability Update
|_| Sustainability Update Riyad Bank - Investor Presentation - 31/03/25 ‘General Business
Slide 17: Embedding Sustainability into the Bank's strategy
Embedding Sustainability into the Bank’s strategy Environmental Social Governance • • • • • ▪ ▪ 5 5 Diversity “حساب العطاء General Business
Slide 18: Operating Environment
| Operating Environment Riyad Bank - Investor Presentation - 31/03/25 ‘General Business
Slide 19: Trade tensions and policy shifts weigh on global growth
Trade tensions and policy shifts weigh on global growth p q q q p 52.1 49.6 4.50 4.25 104.2 108.5 4.30 4.50 4.21 4.54 74.8 74.6 General Business
Slide 20: Steady non-oil growth supports Saudi Arabia's 2025 outlook
Steady non-oil growth supports Saudi Arabia’s 2025 outlook PMI Index Non Oil GDP q q q q p p 2.7 4.4 58.1 58.4 1,184 1,230 1,285 1,345 30.5% 29.3% -101 -115 General Business
Slide 21: Strong growth with modest inflation in the first quarter
Strong growth with modest inflation in the first quarter q q q q p p 2.7 4.4 58.1 58.4 1,184 1,230 1,285 1,345 30.5% 29.3% -101 -115 General Business
Slide 22: The Saudi banking sector is attractively positioned for growth
The Saudi banking sector is attractively positioned for growth General Business
Slide 23: Financial Performance
| | Financial Performance Riyad Bank - Investor Presentation - 31/03/25 ‘General Business
Slide 24: Balance sheet
Balance sheet Riyad Bank - Investor Presentation - 31/03/25 24
Slide 25: Balance sheet expanded by 15% YoY driven by the increase in loans and investments
Balance sheet expanded by 15% YoY driven by the increase in loans and investments which was funded interbank, debt securities and customer deposits ◆ ◆ General Business
Slide 26: Growth in the loan portfolio is coming mainly from the commercial book
Growth in the loan portfolio is coming mainly from the commercial book while consumer loans growth was primarily from mortgages and auto loans ◆ ◆ ◆ 93.7 67.6 ◆ General Business
Slide 27: The non-performing loan ratio improved year-on-year, reaching 1.14%
The non-performing loan ratio improved year-on-year, reaching 1.14% in the first quarter of 2025 ◆ ◆ ◆ General Business
Slide 28: NPL coverage ratio remains healthy at 133%
NPL coverage ratio remains healthy at 133% with stage 3 coverage improved by 7.1ppt year-on-year to reach 55.1% ◆ ◆ 125.6% ◆ ◆ 136.5% General Business
Slide 29: Investments grew by 14% YoY, driven by high quality fixed rate
Investments grew by 14% YoY, primarily driven by robust growth in high quality fixed rate ◆ ◆ ◆ ◆ 60.2 General Business
Slide 30: Customers' deposits demonstrate a robust growth of 12% YoY
Customers’ deposits demonstrate a robust growth of 12% YoY, driven by a strong growth in both NIBs and IBs ◆ ◆ ◆ ◆ General Business
Slide 31: Comfortable liquidity position with LCR, NSFR and SAMA Weighted LDR
Comfortable liquidity position with LCR, NSFR and SAMA Weighted LDR within the regulatory requirements ◆ ◆ ◆ 120.0% 450 90 140.0% 400 100.0% 80 120.0% 350 70 80.0% 300 100.0% 60 250 50 60.0% 80.0% 200 40 60.0% 40.0% 150 30 40.0% 100 20 20.0% 20.0% 50 10 0 0.0% 0 0.0% General Business
Slide 32: Capitalization remains healthy and well above regulatory minima
Capitalization remains healthy and well above regulatory minima ◆ ◆ ◆ ◆ General Business
Slide 33: Income statement
Income statement Riyad Bank - Investor Presentation - 31/03/25 33
Slide 34: Net income reached SAR 2,486 million in 1Q 2025, a growth of 20%
Net income reached SAR 2,486 million in 1Q 2025, a growth of 20% supported by higher total operating income, resulting in ROAE standing at 16.6% ◆ ◆ ◆ General Business
Slide 35: NSCI demonstrates a robust growth, propelled by an increase in volume
NSCI demonstrates a robust growth, propelled by an increase in volume and effective cost of funds management ◆ ◆ ◆ General Business
Slide 36: Pressure on margins continues with NSCI margin at 3.09% for 1Q25
Pressure on margins continues with NSCI margin at 3.09% for 1Q25, lower 31bps year-on-year ◆ ◆ ◆ ◆ General Business
Slide 37: Neutral sensitivity to the interest rate changes
Neutral sensitivity to the interest rate changes ◆ ◆ ◆ q q ◆ -25.3 SAR mn -0.01% 175 179 General Business
Slide 38: The momentum in fee & other income continues with strong growth
The momentum in fee & other income continues with a strong growth across all lines driven by strategic focus on cross-sell activities ◆ ◆ General Business
Slide 39: Positive jaws improve cost efficiency despite ongoing investments
Positive jaws improve cost efficiency despite ongoing investments in people, infrastructure, digital capabilities, and strategic initiatives ◆ ◆ ◆ ◆ 53% General Business
Slide 40: Higher recoveries and proactive risk management resulted in lower cost of risk
Higher recoveries coupled with proactive risk management and sound asset quality resulted in lower cost of risk ◆ ◆ ◆ ◆ General Business
Slide 41: Segment Performance
Segment Performance Riyad Bank - Investor Presentation - 31/03/25 41
Slide 42: Corporate and Retail segments were the primary contributors to net income growth
Corporate and Retail segments were the primary contributors to the net income growth during 1Q 2025 General Business
Slide 43: Corporate segment accounts for 52% of total operating income
Corporate segment accounts for 52% of total operating income translating into 61% share in net income before Zakat 2,362 444 225 1,694 1,274 781 144 349 619 72 (7) 563 249 82 33.8 167 General Business
Slide 44: Strong growth in fee and other income bolstered corporate profitability
Strong growth in fee and other income, coupled with lower provisions bolstered corporate profitability despite the rising in operating expenses ◆ ◆ General Business
Slide 45: Retail net income surged by 87% YoY
Retail net income surged by 87% YoY, primarily driven by strong NSCI growth, partially offset by an increase in provisions. ◆ ◆ ◆ General Business
Slide 46: Treasury and Investments net income before Zakat grew by 6% YoY
Treasury and Investments net income before Zakat grew by 6% YoY fueled by higher fee and other income, partially offset by higher expenses ◆ ◆ General Business
Slide 47: Investment banking and brokerage recorded a strong growth of 35% in NSCI
Investment banking and brokerage recorded a strong growth of 35% in NSCI resulted in 9% increase in net income before zakat ◆ ◆ General Business
Slide 48: Outlook & Guidance
Outlook & Guidance Riyad Bank - Investor Presentation - 31/03/25 48
Slide 49: The momentum in strategic execution fuels an optimistic outlook for 2025
The momentum in strategic execution fuels an optimistic outlook for 2025 General Business
Slide 50: Historical Performance
Historical Performance Riyad Bank - Investor Presentation - 31/03/25 50
Slide 51: Balance sheet 5-year Summary
Balance sheet 5-year Summary General Business
Slide 52: Income Statement 5-year Summary
Income Statement 5-year Summary General Business
Slide 53: Appendix
| Appendix Riyad Bank - Investor Presentation - 31/03/25 ‘General Business
Slide 54: Contact the investor relations for more information
Contact the investor relations for more information General Business
Slide 55: Disclaimer
Disclaimer General Business