Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — Q3 2019 Earnings Presentation
17 slides from Al Rajhi Bank's earnings presentation, 2019
Slide 1: Al Rajhi Bank Results Presentation
Al Rajhi Bank Results Presentation 3Q 2019 Earnings Conference Call and Webcast The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank 3Q 2019 Results Presentation
Slide 2: Management Summary
Management Summary 9M 2019 Highlights 'ABCDE' Strategy implementation is on track and continuing to deliver strong financial performance Growth in mortgages, customers loans, and net profit margin Strategy Improved customer service, digitization and new products all contributed to the bottom lin
Slide 3: Strategy Overview
Strategy Overview ABCDE 'Back to Basics' strategy already delivers results A B C D E Accelerate Become Employer Customer Digital Execution Growth of Choice Focus Leadership Excellence A B C D E Grow mortgage, private Update value Smartly expand channels World-class sector, affluent, ladies & Engaged
Slide 4: Strategy Update
Strategy Update ABCDE 'Back to Basics' strategy delivered strong results in 9M 2019 A B C D E Accelerate Become Employer Customer Digital Execution Growth of Choice Focus Leadership Excellence 13% YoY operating income 13 new products launched to Al Rajhi Bank Academy 106 K POS 253 Bots growth cater
Slide 5: Net Income Trends
Net Income Trends 9M 2019 profit growth of 18.2% from solid income growth before Zakat Commentary Net Income Before Zakat Growth Drivers By Segment (SARmn) Net income for 9M 2019 increased 9.7% YoY to SAR 8,006 million 8,000 mainly driven by 13.6% total operating income growth from yield 7,000 +18
Slide 6: Strong financial performance in 9M 2019
Strong financial performance in 9M 2019 Key drivers of 9M 2019 net income growth of 9.7% YoY to SAR 8bn 13% total operating income growth driven by strong growth Improved operating efficiency by 100bps year-on-year to 30.9% on yield income (14%)(SARmn) (C/I ratio) +36bps -7bps -20bps -230bps +188bps
Slide 7: Strong 3Q 2019
Strong 3Q 2019 3Q 2019 operating income of SAR 4.98bn and net income before Zakat of SAR 3.14bn Total Operating Income (SARmn) Net income Before Zakat for the period (SARmn) 5,00 0 +22.2% +13.6% 4,500 6,000 4,981 4,0 00 4,639 4,861 4,383 4,506 3,144 4,288 2,885 3,50 0 4,142 2,867 5,00 0 2,772 2,569
Slide 8: Return Metrics
Return Metrics Excellent first 9 months of the year, leading to further improvement of our return profile Return on Equity (%) Return on Assets (%) 21.64% 2.94% 2.93% 0.25 25.0 0% 19.82% 2.68% 17.24% 2.29% 2.49% 16.11% 16.65% 0.2 20.00 % 0.15 15.00% 0.1 10.0 0% 0.0 5 7.56% 5.00% 1.12% 0 0.0 0% 2015
Slide 9: Balance Sheet Strength
Balance Sheet Strength Balance Sheet growth was driven by 3.5% deposit growth YoY Total Customers' Deposits (SARbn) Financing, Net (SARbn) Capital Adequacy Ratio (%) 500 +3.5% 600 0 400 550 299 21.67% 289 19.54% 500 +5.4% 0 14 10 450 30 0 400 0 5 6 350 200 30 0 232.0 244.6 0 250 269 +5.3% 284 200 0
Slide 10: Expenses Trends
Expenses Trends YoY expense growth of 9.5%, but efficiency improved 350 bps on positive "jaws" Improved operating efficiency by 100bps year-on-year to 30.9% Commentary (C/I ratio) Operating expenses grew by 9.5% for the nine months period; 8.1% in +36bps -7bps -20bps -37bps -230bps +188bps 3Q 2019
Slide 11: Asset Quality Stable
Asset Quality Stable Asset quality remains solid NPL Ratio Trends (%) NPL Coverage Ratio (%) 2.41% 2.16% 0 4 0 1.88% 1.92% 1.77% 4 1.50% 1.30% 342% 0 3 0.82% 0.84% 0.96% 0.94% 0.85% 0.94% 314% 306% 3 0 0.72% 2 0 0 2 231% 0 1 177% (0 ) 0.35% 0.36% 0.35% 0.34% 0.34% 0.35% 0.36% 1 0 (0 ) 1Q 18 2Q 18 3Q
Slide 12: Capitalisation Trends
Capitalisation Trends Rising profitability drives total capital higher Total Capital (SARbn) Commentary 120 Total Capital increased by 1.4% on rising profitability. +1.4% 100 80 Capitalization remains strong with CAR of 19.5% and CET1 of 60 51 53 52 18.5% as at 30 September 2019. 40 3 3 3 20 49
Slide 13: Progress against guidance and outlook
Progress against guidance and outlook Financing & income growth, efficiency and cost of risk in line with FY 2019 guidance FY 2018 9M 2019 Actual FY 2019 Guidance Balance Mid single digit Financing, Net (SAR bn) 231.8 244.6 (+5.4%) Sheet growth Net Profit Margin 4.75% 5.21% (+46 bps) +35 to +45 bps
Slide 14: Questions & Answers
Questions & Answers The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank 3Q 2019 Results Presentation
Slide 15: Appendix
Appendix Additional Information The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank 3Q 2019 Results Presentation
Slide 16: Additional Information
Additional Information Contact investor relations for more information Mr. Amr M. Sager Head of Investor Relations Tel: +966 (11) 828 1985 Email: sagera@alrajhibank.com.sa Mr. Faisal F. Altimyat Senior Investor Relations Officer Tel: +966 (11) 828 1457 Email: altimyatff@alrajhibank.com.sa Al Rajhi B
Slide 17: Disclaimer
Disclaimer AL RAJHI BANK HEREIN REFERRED TO AS ARB MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY REGARDING THIS DOCUMENT OR THE MATERIALS AND INFORMATION CONTAINED OR REFERRED TO ON EACH PAGE ASSOCIATED WITH THIS DOCUMENT. THE MATERIAL AND INFOR- MATION CONTAINED O