Riyad Bank · TADAWUL:1010
Riyad Bank — Q2 2021 Earnings Presentation
29 slides from Riyad Bank's earnings presentation, Aug 17, 2021
Slide 1: Results Presentation Q2 2021 Earnings Call
Results Presentation Q2 2021 Earnings Call Tareq Al Sadhan, Chief Executive Officer Abdullah Al Oraini, Chief Financial Officer Riyadh, 17th August 2021 1 General Business
Slide 2: Riyad Bank is the Third Largest Bank in Saudi Arabia
Riyad Bank at glance Riyad Bank is the Third Largest Bank in Saudi Arabia Q2 2021 Key Metrics Third Largest Bank in Saudi Arabia Riyad Bank Presence SAR London Singapore 317 bn in Assets 341 Branches (Licensed) 1 Branch 1 Rep Office SAR 205 bn in Loans, Net 2,389 ATMs SAR 202 bn in Deposits 111,823
Slide 3: Management Highlights Q2 2021 Snapshot
Riyad Bank at glance Management Highlights Q2 2021 Snapshot Activated a new phase of the transformation 2025. Strategy – Value through innovation. – Enablement through next gen operating model. – Efficiency through digitization. Net loans grew by 9.1% YoY to SAR 205 billion. Total Deposits gre
Slide 4: KSA Macroeconomic Environment
KSA Macroeconomic Environment 4 General Business
Slide 5: Macroeconomic Snapshot 1/2
KSA Macroeconomic environment Macroeconomic Snapshot 1/2 Key Highlights Recent estimates for Non-Oil GDP indicate sharp recovery at 10.1% in the 2nd quarter of 2021 as restrictions eased. Overall GDP recorded a growth by 1.5% for the first time since the start of COVID-19 pandemic Overall price
Slide 6: Macroeconomic Snapshot 2/2
KSA Macroeconomic environment Macroeconomic Snapshot 2/2 Key Highlights 2nd quarter data indicate a full recovery in employment and consumption. Saudi employment rose by 23% driving consumption and credit by 54% and 16%, respectively. Velocity of M2 money (the rate at which money is exchanged in
Slide 7: Vision 2030 initiatives
KSA Macroeconomic environment Vision 2030 initiatives Riyad Bank is fully committed to the success of the National Agenda The initiatives contribute to … 96 KPIs of the Saudi vision 2030 # of MOUs signed • • • Program 100% Program 90% Agency program 25 29th Apr 2021 KPIs • Tourism Partnership Progra
Slide 8: Strategy Update
Strategy Update 8 General Business
Slide 9: Structural and recent shifts in the industry require us to chart a new course
Strategy Update Structural and recent shifts in the industry require us to chart a new course for the Bank Imperative to renew Recent Increasing customer Depressed demand and Growing competitive effort to reinforce our expectations around digital compressed margins intensity with recent competitive
Slide 10: Delivered across 3 areas to become the Best Bank in KSA
Strategy Update ... Which will be delivered across 3 areas and support our aspiration to become the Best Bank in KSA Value through innovation Creating new markets through digital eco-systems, disrupting me-too propositions, integrating Advanced Analytics into BAU Strategic Accelerate Efficiency thro
Slide 11: Financial Results Overview
Financial Results Overview 11 General Business
Slide 12: H1 2021 Key Highlights
Financial results overview H1 2021 Key Highlights H1 2021 Vs. H1 2020 7.5% 9.1% 5.9% 1.2% 10.0% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits Credit related impairment 12.8% 3.3% 4.7% 3.7% decreased by 45% . Income Statement Cost of
Slide 13: Financial Highlights – Balance Sheet
Financial results overview Financial Highlights – Balance Sheet Balance sheet growth supported by continued growth in loans Total Assets Growth Drivers (SARbn) QoQ % YoY % SAR (mn) 2Q 2021 1Q 2021 2Q 2020 change change +2% 310 1 13 317 Cash and balances with SAMA and financial 48,732 48,370 +0.7% 45
Slide 14: Assets & Lending
Financial results overview Assets & Lending Loan growth mainly driven by commercial and retail loans Loans & Advances Growth Drivers (SARbn) Mortgages Loans, Gross (SARbn) +16% +7% 41 42 37 39 5 10 0 205 34 36 191 0 (1) Q4-20 Overdrafts Credit Consumer Commercial Other Q2-21 Q1-20 Q2-20 Q3-20 Q4-20
Slide 15: Liabilities and Funding
Financial results overview Liabilities and Funding Strong Funding Profile Customer Deposits Growth Drivers (SARbn) Total Liabilities Mix (SARbn) 0% 203 0 6 0 202 7% 3% 16% (7) SAR 273 Bn Q4-20 Demand Savings Time Other Q2-21 74% Total Customer Deposits by Type (SARbn) 0% Due to Banks & Other Financi
Slide 16: Financial Highlights – Income Statement
Financial results overview Financial Highlights – Income Statement Net income growth due to higher operating income and lower impairment charges Net Income before Zakat Growth Drivers by Segment (SARmn) SAR (mn) +13% Net special commission income 4,242 4,105 +3.3% 2,146 2,096 +2.4% Fee and other inc
Slide 17: Income Trends
Financial results overview Income Trends Income growth supported by balance sheet growth Total Operating Income, Net (SARmn) Total Operating Income Growth Drivers by Segment (SARmn) +4% +10% 5,594 68 114 113 5,802 2,885 2,821 2,790 2,824 2,978 2,709 (87) H1-20 Retail Corporate Treasury & Riyad Capit
Slide 18: Expenses Trends
Financial results overview Expenses Trends Continued cost efficiency despite banks’ investment in its Transformation Program Operating Expenses (SARmn) Operating Expenses Growth Drivers by Type (SARmn) +17% +12% 958 982 1,012 925 861 890 3 5 156 1,994 1,786 44 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 H1-
Slide 19: 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 %) -60% 1.07% 648 0.95% 0.96% 570 466 0.67% 0.50% 0.47% 303 249 229 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q1-20 H1-20 9M-20 FY-20 Q1-21
Slide 20: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) Capital Ratios (%) +6% 51 54 54 44 44 44 19.7% 19.3% 0.2018.8% 19.1% 18.5% 17.8% 7 10 10 Q4-20 Q1-21 Q2-21 16.1% 16.1% Common equity tier 1 capital Tier 2 capi
Slide 21: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 62 101.1% 55 0.102 52 50 51 52 98.9% 0.100 0.098 93.8% 94.8% 200% 94.8% 94.2% 190% 181% 176% 0.096 97.0% 168% 160% 0.094 94.8% 0.092 0.090 92.2% 91.7
Slide 22: 2021 Outlook
2021 Outlook 22 General Business
Slide 23: 2021 Guidance
2021 Outlook 2021 Guidance Riyad Bank Guidance H1 2021 2021 Updated Guidance Metric FY 2020 2021 Guidance Actual Guidance High single digit %- low SAR191 Bn High single digit % SAR205 Bn Loans, Net (+10% YoY) growth (+9.1% YoY) double digit % growth NSCI Margin (%) 3.13% -10bps to -20bps 3.12% -10bp
Slide 24: Appendix
Appendix 24 General Business
Slide 25: ESG Focus
ESG Focus Riyad banks’ commitment to Environmental, Social and Governance (ESG) factors, started well before global trends With Bukra, the Bank is targeting the following UNSDGs: “Bukra”, a comprehensive and long-term corporate social responsibility strategy, is aligned with the best practices of th
Slide 26: Government programs
KSA Macroeconomic environment 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 extend Iqama and To Private sector To Banks To Economy SAR
Slide 27: Riyad Bank COVID-19 Initiatives
COVID-19 Update Riyad Bank COVID-19 Initiatives Supporting the economy and community while ensuring business continuity and safety of employees Medical efforts Economic efforts Employees • Distributed 7,000 safety boxes • Through SAMA credit relief initiatives channeled • Hot lines and App for conta
Slide 28: Riyad Bank Contact
Appendix Riyad Bank Contact Contact the investor relations for more information: Ibrahim Al-Muhanna Visit our Website Head of Investor Relations 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 - A
Slide 29: Disclaimer
Appendix 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 strategi