Riyad Bank · TADAWUL:1010
Riyad Bank — Q1 2021 Earnings Presentation
31 slides from Riyad Bank's earnings presentation, May 6, 2021
Slide 1: Results Presentation Q1 2021 Earnings Call
Riyad Bank Results Presentation – Q1 2021 Results Presentation Q1 2021 Earnings Call Tareq Al Sadhan, Chief Executive Officer Abdullah Al Oraini, Chief Financial Officer Riyadh, 6 May 2021 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 Q1 2021 Key Metrics Third Largest Bank in Saudi Arabia Riyad Bank Presence SAR London Singapore 308 bn in Assets 341 Branches 1 Branch 1 Rep Office SAR 196 bn in Loans, Net 2,452 ATMs SAR 198 bn in Deposits 101,951 PoS Ratings
Slide 3: Management Highlights Q1 2021 Snapshot
Strategy Overview Management Highlights Q1 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 7.5% YoY to SAR 196 billion. Total Deposits grew b
Slide 4: KSA Macroeconomic Environment
KSA Macroeconomic Environment 4 General Business
Slide 5: Saudi Macro Framework
KSA Macroeconomic environment Saudi Macro Framework The Economy started to recover form COVID-19 impact GDP CPI Inflation 6.0 8.0 4.0 6.0 2.0 4.0 0.0 2.0 -2.0 0.0 -4.0 -2.0 -6.0 -8.0 -4.0 Q3/15 Q2/16 Q1/17 Q4/17 Q3/18 Q2/19 Q1/20 Q4/20 2015 2016 2017 2018 2019 2020 Real GDP growth rate, quarterly, %
Slide 6: Banking Sector Highlights
KSA Macroeconomic environment Banking Sector Highlights The Economy started to recover form COVID-19 impact (Continued) Regulatory LDR Credit and Customer Deposits 86 20.0 84 15.0 82 10.0 80 5.0 78 76 0.0 74 -5.0 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Claims to private sector, %
Slide 7: Vision 2030 initiatives
KSA Macroeconomic environment Vision 2030 initiatives Riyad Bank is fully committed to the success of the National Agenda 1. Project Support Fund # 1 # of MOUs 2. Facility Guarantee 3. Project Finance 4. Supportive Initiatives for Developing Business Enablers in Entertainment Sector 5. Real Estate F
Slide 8: Strategy Update
Strategy Update 8 General Business
Slide 9: Riyad Bank has executed its strategic transformation exceptionally well
Strategy Update Riyad Bank has executed its strategic transformation exceptionally well, making it the fastest growing bank in KSA for the past 3 years To be the most innovative and trusted CAGR %, 2017-2019 financial solutions partner Profit Loans and advances, net Spot balance RIYAD 26 12 Avg. Pee
Slide 10: Structural and recent shifts require a new course for the Bank
Strategy Update However, structural and recent shifts in the industry require us to chart a new course for the Bank Recent trends Increasing customer Depressed demand and Imperative to renew Growing competitive expectations around digital compressed margins effort to reinforce our intensity with rec
Slide 11: 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 Strategy Value through innovation Creating new markets through Efficiency through digital eco-systems, disrupting digitization me-too propositions, Improve organization productivity i
Slide 12: Financial Results Overview
Financial Results Overview 12 General Business
Slide 13: Q1 2021 Key Highlights
Financial results overview Q1 2021Key Highlights Q1 2021 Vs Q1 2020 10.1% 7.5% 5.2% 3.0% 23.7% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits Credit related impairment 8.3% 5.4% 18.8% 2.1% decreased by 18% . Income Statement Cost of R
Slide 14: 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 % YoY % SAR (mn) 1Q 2021 4Q 2020 1Q 2020 change change -1% 310 0 5 308 Cash and balances with SAMA and financial 4
Slide 15: Assets & Lending
Financial results overview Assets & Lending Strong loan growth mainly driven by commercial and mortgage loans Loans & Advances Growth Drivers (SARbn) Mortgages Loans, Gross (SARbn) +21% +3% 39 41 36 37 191 0 2 4 0 196 34 31 (1) Q4-20 Overdrafts Credit Consumer Commercial Other Q1-21 Q4-19 Q1-20 Q2-2
Slide 16: Liabilities and Funding
Financial results overview Liabilities and Funding Continued strong growth in non-commission bearing deposits Customer Deposits Growth Drivers (SARbn) Total Liabilities Mix (SARbn) -2% 10 0 6% 203 7 199 3% 15% (22) SAR 264 Bn Q4-20 Demand Savings Time Other Q1-21 75% Total Customer Deposits by Type
Slide 17: Financial Highlights – Income Statement
Financial results overview Financial Highlights – Income Statement Operating income growth was offset by higher impairment charges QoQ % YoY % Net Income before Zakat Growth Drivers by Segment (SARmn) SAR (mn) 1Q 2021 4Q 2020 1Q 2020 change change Net special commission income 2,096 2,036 +2.9% 1,98
Slide 18: Income Trends
Financial results overview Income Trends Income growth supported by strong balance sheet Total Operating Income, Net (SARmn) Total Operating Income Growth Drivers by Segment (SARmn) -2% -2% 2,885 23 65 2,824 2,705 2,885 2,709 2,821 2,790 2,824 (41) (108) Q1-20 Retail Corporate Treasury & Riyad Capit
Slide 19: 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) +6% +6% 1,107 925 958 982 9 52 982 861 890 925 (2)
Slide 20: 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 %) -18% 1.07% 648 0.95% 0.96% 570 0.78 466 0.67% 335 0.50% 303 249 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 FY-19 Q1-20 H1-20 9M-20 FY-20
Slide 21: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) Capital Ratios (%) +12% 51 54 48 38 44 44 19.7% 0.20 18.8% 19.1% 18.1% 18.5% 17.8% 11 7 10 Q3-20 Q4-20 Q1-21 16.3% 16.5% Common equity tier 1 capital Tier 2 ca
Slide 22: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 62 98.9% 0.100 52 50 51 52 46 0.098 94.8% 0.096 93.8% 94.8% 94.2% 190% 200% 181% 0.094 155% 168% 160% 94.8% 0.092 89.4% 92.2% 0.090 91.2% 91.7% 90.2%
Slide 23: 2021 Outlook
2021 Outlook 23 General Business
Slide 24: 2021 Guidance
2021 Outlook 2021 Guidance Riyad Bank Guidance Q1 2021 Guidance Metric FY 2020 2021 Guidance Actual SAR191 Bn High single digit % SAR196 Bn Loans, Net (+10% YoY) growth (+7.5% YoY) NSCI Margin (%) 3.13% -10bps to -20bps 3.15% Cost to Income (%) 32.4% Below 34% 34.8% . Cost of Risk (%) 1.07% 0.8% to
Slide 25: Questions & Answers
Questions & Answers Q&A 25 General Business
Slide 26: Appendix
Appendix 26 General Business
Slide 27: 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 28: 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 29: Government programs
Government programs 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 5.3 bn vis
Slide 30: 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 31: 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