Riyad Bank · TADAWUL:1010
Riyad Bank — Q1 2022 Earnings Presentation
26 slides from Riyad Bank's earnings presentation, May 11, 2022
Slide 1: Results Presentation Q1 2022 Earnings Call
Results Presentation Q1 2022 Earnings Call Tareq Al Sadhan, Chief Executive Officer Abdullah Al Oraini, Chief Financial Officer Riyadh,11th May 2022 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 China Soon Q1 2022 Key Metrics Third Largest Bank in Saudi Arabia Riyad Bank Presence SAR London Singapore 348 bn in Assets 339 Branches (Licensed) 1 Branch 1 Rep Office SAR 235 bn in Loans, Net 2,235 ATMs SAR 232 bn in Deposi
Slide 3: Management Highlights Q1 2022 Snapshot
Riyad Bank at glance Management Highlights Q1 2022 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 19.5% YoY to SAR 235 billion. Total Deposits gr
Slide 4: Macroeconomic Environment
Macroeconomic Environment 4 General Business
Slide 5: Global Economy
KSA Macroeconomic environment Global Economy Key Highlights Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January, according to IMF WEO April 2022. Inflatio
Slide 6: Domestic Economy
Macroeconomic environment Domestic Economy Key Highlights POS Consumer Spending rose by 25.2 % YoY in Feb 2022 supported by a strong pickup in Retail, Services, and Food/Beverages sectors. Oil prices are expected to remain elevated through the second half of 2022 as the conflict in Europe create
Slide 7: Vision 2030 initiatives
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 # Signed Agreements signed • • • Program 100% Program 90% Agency program 25 28th Sep 2020 KPIs • Tourism Partnership
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 Depressed demand and Imperative to renew effort Growing competitive Recent Increasing customer compressed margins due to reinforce our intensity with recent expectations around digital trends t
Slide 10: Financial Results Overview
Financial Results Overview 10 General Business
Slide 11: Q1 2022 Key Highlights
Financial results overview Q1 2022 Key Highlights Q1 2022 Vs. Q1 2021 13.1% 19.5% 3.7% 17.0% 1.5% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits Credit related impairment 14.7% 1.7% 33.2% 9.8% decreased by 40.8% . Income Statement Cos
Slide 12: Financial Highlights – Balance Sheet
Financial results overview Financial Highlights – Balance Sheet Balance sheet growth supported by continued growth in loans SAR (mn) Total Assets Growth Drivers (SARbn) Cash and balances with SAMA and financial 47,729 43,232 +10.4% 48,370 -1.3% +7% institutions 4 348 326 0 18 Investments, net 59,035
Slide 13: Assets & Lending
Financial results overview Assets & Lending Loan growth mainly driven by Commercial and Mortgage loans Loans & Advances, Net Growth Drivers (SARbn) Mortgages Loans, Gross (SARbn) +24% +8% 48 51 4 14 235 42 45 217 0 0 39 41 (0) Q4-21 Overdrafts Credit Consumer Commercial Other Q1-22 Q4-20 Q1-21 Q2-21
Slide 14: Liabilities and Funding
Financial results overview Liabilities and Funding Stable Funding Profile Customer Deposits Growth Drivers (SARbn) Total Liabilities Mix (SARbn) +10% 9 0 6 5 232 3% 5% 212 14% SAR 298 Bn Q4-21 Demand Savings Time Other Q1-22 78% Total Customer Deposits by Type (SARbn) +17% Due to Banks & Other Finan
Slide 15: 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) +14% Net special commission income 2,132 2,070 +3.0% 2,096 +1.7% Fee and other income 97
Slide 16: Income Trends
Financial results overview Income Trends Income growth supported by stable balance sheet growth Total Operating Income, Net (SARmn) Total Operating Income Growth Drivers by Segment (SARmn) +10% +10% 81 83 48 66 3,102 2,978 3,102 2,824 2,790 2,824 2,817 2,949 Q1-21 Retail Corporate Treasury & Riyad C
Slide 17: 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) +5% +5% 982 1,012 1,008 963 1,034 958 38 10 8 (5) 1,034 982 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q1
Slide 18: 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 %) 1.07% 648 -41% 0.50% 0.48% 0.40% 0.41% 249 229 244 0.26% 139 148 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 FY-20 Q1-21 H1-21 9M-21 FY-21
Slide 19: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) Capital Ratios (%) +11% 57 60 54 44 47 48 19.7% 19.3% 19.3% 0.20 19.1% 19.0% 19.2% 0 0 3 10 9 9 16.5% Q1-21 Q4-21 Q1-22 16.1% 15.9% 16.0% 15.8% 16.3% 16.5% Com
Slide 20: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 62 103.2% 102.7% 55 0.104 101.1% 52 52 53 51 98.9% 101.0% 0.102 0.100 200% 0.098 181% 99.0% 98.6% 176% 168% 168% 157% 0.09694.2% 97.4% 97.0% 0.094 0.
Slide 21: 2022 Outlook
2022 Outlook 21 General Business
Slide 22: 2022 Guidance
2022 Outlook 2022 Guidance Riyad Bank Guidance Guidance Metric FY 2021 2022 Guidance Q1 2022 SAR 217 Bn SAR 235 Bn Loans, Net Mid teens (+13.6% YoY) (+19.5% YoY) NSCI Margin (%) 2.97% 0 bps - +10 bps 2.85% Cost to Income (%) 34.3% Below 35% 33.3% . Cost of Risk (%) 0.41% 40 bps -60 bps 0.26% CET1 (%
Slide 23: Appendix
Appendix 23 General Business
Slide 24: ESG Focus
ESG Focus Riyad banks’ commitment to Environmental, Social and Governance (ESG) factors, started well before global trends “Bukra”, a comprehensive and long-term corporate social responsibility With Bukra, the Bank is targeting the following UNSDGs: strategy, is aligned with the best practices of th
Slide 25: Riyad Bank Contact
Appendix Riyad Bank Contact Contact the investor relations for more information: Najla AlMutairi Visit our Website Investor Relations https://www.riyadbank.com/en/about-us/investor-relations Telephone: +966 11 401 3030 Ext. 2448 E-mail: najla.almutairi@riyadbank.com Address: Riyadh - Al Shuhada Dist
Slide 26: 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