Riyad Bank · TADAWUL:1010
Riyad Bank — FY2022 Earnings Presentation
25 slides from Riyad Bank's earnings presentation, 2023
Slide 1: FY 2022 Results Presentation
FY 2022 Results Presentation Riyad Bank Presenters: Mr. Tareq Al Sadhan, CEO Mr. Abdullah Al Oraini, CFO Dr. Naif Al Ghaith, Chief Economist Ms. Najla Al Mutairi, IR Host: Mr. Faisal Potrik, Head of Research – Riyad Capital General Business
Slide 2: Bank Overview
Riyad Bank is the third largest bank in Saudi Arabia Riyad Bank presence China Soon To be the most innovative & trusted 6,794 Employees London financial solutions 28.5% Female employees 1 Branch Singapore 1 Rep Office partner FY 2022 Key Metrics Assets Operating Income Cost / income Houston 1 Agency
Slide 3: Strategy Update
Structural and recent shifts in the industry require us to chart a new course for the Bank Strategy Increasing customer Depressed demand and Imperative to renew Growing competitive Refresh 1 expectations around 2 compressed margins 3 effort to reinforce our 4 intensity with recent digital sales and
Slide 4: Vision 2030 initiatives
Vision 2030 initiatives RiyadBankisfullycommittedtothesuccessoftheNationalAgenda The initiatives contribute to 96 KPIs of the Saudi vision 2030 FinancialSupport Future initiatives for the Financial Support Massar Business Massar Business InitiativeforNCPP present (10 initiatives) Initiat
Slide 5: From philanthropy to sustainability – ESG Highlights
From philanthropy to sustainability – ESG Highlights Embedding corporate responsibility and sustainability into the Bank’s strategy 1,9074 Hours CSR Challenge 15% Reduced electricity 750 M Bukra Ambassadors CSR team conducted two workshops with the Updated guidelines to meet the needs of ISO/DIS 373
Slide 6: Economic environment
Economic environment 6 General Business
Slide 7: Global Growth has been Strong and Surprisingly Resilient
Global Growth has been Strong and Surprisingly Resilient Global growth is projected to fall from 3.4% in 2022 to 2.9% in 2023, below the historical average (2000–19) of 3.8%. In 2024, global output is forecasted to rise to 3.1%. US and the EU 2023 real GDP projection has been markedly revised Moneta
Slide 8: Saudi Non-Oil Economy Grows at Fastest Pace in Over a Year
Saudi Non-Oil Economy Grows at Fastest Pace in Over a Year Real GDP growth reached 8.7% in 2022, the highest in almost a decade, leading the ranks of fastest growing economies of the G20, supported by strong non-oil economy through higher investments and improved oil market. Real GDP for Q4 expanded
Slide 9: Financial results overview
Financial results overview 9 General Business
Slide 10: FY 2022 Key highlights
FY 2022 Key highlights FY 2022 Vs. FY 2021 10.4% 11.5% -11.0% 13.4% 5.4% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits 16.5% 21.2% 8.3% 17.6% Credit related impairment increased by 20.8% . Income Statement Net income Cost of Risk in
Slide 11: Financial highlights – Balance sheet
Financial highlights – Balance sheet Stable balance sheet performance QoQ % SAR (mn) 4Q 2022 3Q 2022 change 4Q 2021 YTD % change Total Assets Growth Drivers (SARbn) Cash and balances with SAMA and 53,980 43,985 +22.7% 43,232 +24.9% +10.4% financial institutions 25 15 360 Investments, net 52,196 53,2
Slide 12: Assets & lending
Assets & lending Loan growth mainly driven by Commercial and Mortgage loans Mortgages Loans, Gross (SARbn) Loans & Advances, Net Growth Drivers (SARbn) +12% +21% 0 10 16 0 242 54 56 58 217 48 51 45 (1) Q4-21 Overdrafts Credit Consumer Commercial Other Q4-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Cards
Slide 13: Liabilities and funding
Liabilities and funding Stable funding profile Customer Deposits Growth Drivers (SARbn) Q4 2022 Total Liabilities Mix (SARbn) +13% 7 21 0 240 3% 5% 13% 212 0 SAR 303 Bn Q4-21 Demand Savings Time Other Q4-22 79% Total Customer Deposits by Type (SARbn) Financial highlights +13% 240 Due to Banks & Othe
Slide 14: Financial highlights – Income statement
Financial highlights – Income statement Net income growth mainly due to higher operating income YoY % QoQ % SAR (mn) FY 2022 FY 2021 change 4Q 2022 3Q 2022 change Net Income before Zakat Growth Drivers by Segment (SARmn) Net special commission income 10,052 8,293 +21.2% 2,852 2,672 +6.7% +16.5% Fee
Slide 15: Income trends
Income trends Income growth supported by stable balance sheet growth Total Operating Income Growth Drivers by Segment (SARmn) Total Operating Income, Net (SARmn) +18% 1,324 410 48 13,599 11,568 249 +27% 3,525 3,742 3,102 3,230 2,817 2,949 FY-21 Retail Corporate Treasury & Riyad Capital FY-22 Investm
Slide 16: Expenses trends
Expenses trends Improved cost efficiency despite banks’ investment in its Transformation Program Operating Expenses (SARmn) Operating Expenses Growth Drivers by Type (SARmn) +18% +11% 1,174 1,138 1,008 963 1,034 1,064 165 1 47 232 4,410 3,965 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-21 Employee- Premi
Slide 17: Credit quality
Credit quality Stable asset quality trends with solid NPL coverage ratio Impairment Charge for Credit Losses, Net (SARmn) Cost of Risk (YTD %) +55% 0.40% 0.41% 0.44% 378 0.39% 0.37% 302 244 0.26% 204 139 148 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 9M-21 FY-21 Q1-22 H1-22 9M-22 FY-22 Annualized YTD Impai
Slide 18: Capitalization
Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) Capital Ratios (%) +15% 59 65 56 0.25 50 47 47 21.1% 0 3 6 19.3% 19.0% 19.2% 19.5% 19.1% 10 9 9 0.20 18.1% Q4-21 Q3-22 Q4-22 16.0% 16.3% 16.4% 16.0% 15.8% Common equity tier 1 capital Ti
Slide 19: Liquidity
Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 102.7% 0.1050103.2% 102.4% 72 101.0% 100.9% 101.0% 53 0.1025 52 51 54 56 0.1000 168% 168% 157% 172% 165% 182% 0.0975 98.6% 0.0950 99.0% 96.3% 96.2% 97.7% 0.0925 94.9% 0.0900 Q3
Slide 20: Guidance
Guidance 20 General Business
Slide 21: 2023 Guidance
2023 Guidance Guidance Metric FY 2021 2022 Guidance FY 2022 2023 guidance SAR 217 Bn SAR 242 Bn High Single to Low Loans, Net Mid-high teens (+13.6% YoY) (+11.5% YoY) Double Digit NSCI Margin (%) 2.96% +10 bps – 20bps 3.11% +15 bps – +25 bps Cost to Income (%) 34.3% Below 34% 32.4% Below 33% . Cost
Slide 22: Q&A
RS oO eee oreoes + + &A ° ° seoeen woreees General Business
Slide 23: Appendix
Appendix 23 General Business
Slide 24: Riyad Bank contact
Riyad Bank contact Contact the investor relations for more information: Najla K. Al Mutairi Investor Relations Annual 2021 Report Telephone: +966 11 401 3030 Ext. 2448 E-mail: najla.almutairi@riyadbank.com Address: Riyadh - Al Shuhada District Eastern ring road Granada Oasis -Tower (A1) P.O Box 2262
Slide 25: 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