Riyad Bank · TADAWUL:1010
Riyad Bank — Q2 2020 Earnings Presentation
32 slides from Riyad Bank's earnings presentation, 2020
Slide 1: Results Presentation Q2 2020
Riyad Bank Results Presentation – Q2- 2020 Results Presentation Q2 2020 Public
Slide 2: Contents
Riyad Bank Results Presentation – Q2 2020 Contents 01 Who We Are 03 02 Strategy Overview 05 03 COVID-19 Update 06 04 Transformation Program 08 05 Q2 2020 Financial Results 13 06 Business Segments 24 07 Outlook 2020 29 Public
Slide 3: Who We Are: More than 60 years of history
Who We Are More than 60 years of history Established in 1957, Riyad Bank is one of the largest Riyad Bank Presence financial institutions in the Kingdom of Saudi Arabia and the London Singapore 1 Branch 1 Rep Office Middle East with a paid-up capital of SAR 30 billion. The Banks professional and ded
Slide 4: Riyad Bank is a leading bank in Saudi Arabia
Who We Are Riyad Bank is a leading bank in Saudi Arabia Diverse business model that has succeeded through market cycles Q2 2020 Key Metrics Third Largest Bank in Saudi Arabia SAR 295 Assets 341 Branches billion SAR 188 Loans 2,534 ATMs billion SAR 200 Deposits 64,982 Point of Sale billion Ratings Ne
Slide 5: Strategy Overview: strong financial performance during Q2 2020
Q2 2020 Strategy Overview Riyad Bank continued to deliver a strong financial performance during Q2 2020 despite challenging economic conditions 1 2 Covid-19 update Transformation Program Update 3 4 Financial Performance Asset Quality, Capital & Liquidity Net loans grew by 16% YoY to SAR 188 billio
Slide 6: Riyad Bank Covid-19 Update
Covid-19 update Riyad Bank Covid-19 Update Supporting work continuity ,customers, employees, investors and communities during Covid-19 Work Continuity Employees Hot lines and App for employees 75% of employees returned (100% branches) Employee booklet that includes general awareness, Maintaining soc
Slide 7: Government programs
Covid-19 update Government programs SAR 290+bn in combating adverse impact of Covid-19 on Saudi Economy Saudi Human Ministry of Saudi Arabian Monetary Authority (SAMA) Ministry of Finance Resources Interior Development Fund To Private sector To Banks To Economy To extend Iqama and SAR 5.3 bn visas f
Slide 8: Four key pillars of Riyad Bank's Transformation
Transformation Program Four key pillars of Riyad Bank's Transformation The Bank has been making significant progress on its transformation program 1 2 Retail Sales Corporate Sales Transformation Transformation To be the most innovative and trusted financial solutions 4 partner 3 Performance Culture
Slide 9: Retail Sales Transformation
Retail Banking 1 Retail Sales Transformation Retail Banking started from a good challenger position. Significant improvement has been achieved with high upside potential Market Potential - KSA Retail Banking Good challenger position Q1 2020 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Shar
Slide 10: Corporate Sales Transformation
Corporate Banking 2 Corporate Sales Transformation Corporate banking is in a strong starting position and has been delivering strong growth Market Potential - KSA Corporate Banking Strong starting position Q1 2020 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % 71,663 SABB 16.1% NC
Slide 11: Innovation
Innovation 3 Innovation We have been improving our digital capabilities that are delivering a better customer experience Digital Onboarding Growth % Trend during Q2 2020 June 20 May 20 April 20 Innovation Priorities Key Achievements ◼ To acquire new-to-bank customers through end-to-end ◼ Extraordina
Slide 12: Performance Culture
Performance Culture 4 Performance Culture We are energising the entire organization to achieve our ambition Shifting the bank's culture requires closing three gaps Recent activities to improve performance culture Organizational Health Index (OHI) results More Performance Culture accountability Bette
Slide 13: Q2 2020 Financial Results Overview
Q2 2020 Financial Results Overview Public
Slide 14: First Half 2020 Key Highlights
Financial results overview First Half 2020 Key Highlights H1 2020 Vs H1 2019 19.9% 16.3% 7.6% 13.3% 33.7% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits 14.9% 8.8% 0.8% 6.6% • Increase in Credit related impairment by 96.1% mainly due to I
Slide 15: Financial Highlights – Balance Sheet
Financial results overview Financial Highlights – Balance Sheet Strong balance sheet growth supported by continued growth in loans and placements Total Assets Growth Drivers (SARbn) QoQ % YTD % SAR (mn) Q2 2020 Q1 2020 Q4 2019 change change +11% 15.0 295.1 265.8 0.6 13.7 Cash and balances with SAMA
Slide 16: Assets & Lending
Financial results overview Assets & Lending Strong loan growth mainly driven by commercial and mortgage loans Loans & Advances Growth Drivers (SARbn) Mortgage Loans, Gross (SARbn) 80 70 +8% 60 +39% 174.0 5.1 7.8 0.0 187.7 0.9 50 40 36 (0.1) 31 34 30 28 26 20 10 0 Q4-19 Overdrafts Credit Consumer Com
Slide 17: Liabilities and Funding
Financial results overview Liabilities and Funding Continued strong growth in non-commission bearing deposits and progressively optimizing the bank’s cost of funds. Due to banks grew on the back of SAMA deposits. Customer Deposits Growth Drivers (SARbn) +3% 24.1 0.2 195 4.6 200 (23.4) Total Liabilit
Slide 18: Financial Highlights – Income Statement
Financial results overview Financial Highlights – Income Statement Strong operating income growth was offset by higher impairment charges YoY % QoQ % Net Income before Zakat Growth Drivers by Segment SAR (mn) 1H 2020 1H 2019 2Q 2020 1Q 2020 (SARmn) change change Net special commission income 4,105 3
Slide 19: Income Trends
Financial results overview Income Trends Income growth supported by strong balance sheet Total Operating Income Growth Drivers by Segment (SARmn) Total Operating Income, Net (SARmn) +7% +1% 5,250 83 219 85 5,594 2,763 2,705 2,885 2,709 2,580 2,670 (42) H1-19 Retail Corporate Treasury & Riyad Capital
Slide 20: Expenses Trends
Financial results overview Expenses Trends Continued cost efficiency improvement driven by income growth, despite continued investment in the Bank’s transformation program Operating Expenses (SARmn) Operating Expenses Growth Drivers by Type (SARmn) +5% 1,107 +7% 903 925 861 845 820 74 24 34 1,665 1,
Slide 21: Credit Quality
Financial results overview Credit Quality Stable asset quality trends with solid NPL coverage ratio Impairment Charge for Credit Losses, Net (SARmn) Cost of Risk (YTD %) +101% 0.95% 570 0.64% 0.67% 0.56% 0.59% 335 0.53% 283 303 0.41% 162 190 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 FY-18 Q1-19 H1-19 9M-1
Slide 22: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) +5% 48 48 45 5 11 7 Capital Ratios (%) 41 38 41 22.0% 18.4% 18.8% 20.0% 18.1% 17.9% 18.1% 17.8% 18.0% Q4-19 Q1-20 Q2-20 16.0% Common equity tier 1 capital Tier
Slide 23: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 80 400.0% +15% 70 350.0% 95% 94% 94% 60 52 300.0% 91% 91% 50 89% 50 44 46 250.0% 42 43 40 200.0% 92% 90% 91% 89% 89% 30 150.0% 88% 165% 168% 160% 20
Slide 24: Business Segments
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Slide 25: Retail Banking
Segmental Results –Retail Banking Retail Banking Operating income growth offset by higher impairment charges H1 H1 YoY % Q2 QoQ % SAR (mn) Q1 2020 2020 2019 change 2020 change Total Assets (SARbn) Total Liabilities (SARbn) Total assets 74,012 61,066 +21% 74,012 72,377 +2% +4% +1% Total liabilities 8
Slide 26: Corporate Banking
Segmental Results – Corporate Banking Corporate Banking Strong loans and deposits growth H1 H1 YoY % Q1 QoQ % SAR (mn) Q2 2020 2020 2019 change 2020 change Total Assets (SARbn) Total Liabilities (SARbn) Total assets 137,403 117,580 +17% 137,403 131,627 +4% +12% +34% Total liabilities 140,742 108,195
Slide 27: Treasury & Investments
Segmental Results – Treasury & Investments Treasury & Investments Strong performance supported by customer flow business YoY % Q2 Q1 QoQ % SAR (mn) H1 2020 H1 2019 change 2020 2020 change Total Assets (SARbn) Total Liabilities (SARbn) Total assets 81,501 66,183 +23% 81,501 74,054 +10% +16% -24% 32 T
Slide 28: Riyad Capital
Segmental Results – Riyad Capital Riyad Capital Strong performance supported by strong AuMs growth YoY % Q2 Q1 QoQ % SAR (mn) H1 2020 H1 2019 change 2020 2020 change Total AUM (SARmn) +30% Total assets 2,167 1,287 +68% 2,167 1,638 +32% Total liabilities 491 317 +55% 491 445 +10% 52,624 Net special c
Slide 29: Riyad Bank Guidance
Financial results overview Riyad Bank Guidance The bank revised its 2020 guidance to reflect current operating enviornment 2020 Guidance 2020 Revised Guidance Metric FY 2019 Provided on Feb H1 2020 Guidance SAR174 Bn Low double Loans, Net Low-mid double SAR187 Bn (+15% YoY) digit digit % growth (+8%
Slide 30: Appendix
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Slide 31: Riyad Bank Contact
Riyad Bank Contact Contact the investor relations for more information: Ibrahim Al-Muhanna Visit our Website https://www.riyadbank.com/en/about-us/investor-relations Telephone: +966 11 401 3030 Ext. 2499 E-mail: ibrahim.al-muhanna@riyadbank.com Address: Riyadh - Al Shuhada District Eastern ring road
Slide 32: 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