Riyad Bank · TADAWUL:1010
Riyad Bank — Q1 2020 Earnings Presentation
37 slides from Riyad Bank's earnings presentation, 2020
Slide 1: Riyad Bank 1Q 2020 Results Presentation
Riyad Bank Results Presentation— 1Q2020 Riyad Bank 1Q 2020 Results Presentation aly whis Se General Business
Slide 2: Contents
RiyadBank Results Presentation 1Q 2020 Contents Who We Are Strategy Overview COVID-19 Update Transformation Program 1Q 2020 Financial Results Business Segments Outlook 2020 General Business 545 ulis vat bank mt
Slide 3: Who We Are
Who WeAre sort More than 60 years of history riyad ban Established in 1957, Riyad Bank is one of the largest Riyad Bank Presence ee . . - ond si financial institutions in the Kingdom of Saudi Arabia and the en oie Middle East with a paid-up capital of SAR 30 billion. The Banks professional and dedic
Slide 4: Riyad Bank is a leading bank in Saudi Arabia
Who WeAre olay ely . . . . . . riya [= la) Riyad Bank is a leading bank in Saudi Arabia “ Diverse business model that has succeeded through market cycles 1Q 2020 Key Metrics Third Largest Bank in Saudi Arabia fei Branches ATMs Deposits Ry Point of Sale As of May 312020 Ratings 1Q 20 Operating Income
Slide 5: General Business
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Slide 6: COVID-19 Update
Covid-19 update COVID-19 Update Supporting work continuity ,;customers, employees, investors and communities during COVID-19 Work Continuit alys ely => o Investors InvestorPresentation - 1Q 2020 Panes
Slide 7: Covid-19 update: Government programs
Covid-19 update 545 ulis vat bank Government programs SAR 200+bn in combating adverse impact of Covid-19 on Saudi Econ Saudi Arabian Monetary Authority (SAMA) Ministry of Finance To Private sector Corporate Retail SAR30bIn Deferred Payment Program SAR 13.2 bIn Funding for Lending Program SAR 0.8 bin
Slide 8: Four key pillars of Riyad Bank's Transformation
Transformation Program abel Four key pillars of Riyad Bank's Transformation riyad ban The Bank is making significant progress on its transformation program Retail Sales (<> Corporate Sales Transformation Transformation . To be the most . : innovative and trusted - *. financialsolutions + . partner .
Slide 9: General Business
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Slide 10: General Business
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Slide 11: General Business
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Slide 12: General Business
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Slide 13: 1Q 2020 Financial Results Overview
1Q 2020 Financial Results Overview =< General Business
Slide 14: 1Q 2020 Key Highlights
Financial resultsoverview 1Q 2020 Key Highlights 1Q 2020 Vs 1Q 2019 Usb)JI wlis vat bank 16.8% 15.5% 9.8% 11.2% 22.3% — tt t t t tf Total assets Loanand Investments, net Customer Demand & other advances, net deposits deposits 0.9% 10.0% 16.2% 11.8% * Increase in Credit related impairment by 87% main
Slide 15: Income statement summary 1Q 2020 vs 4Q 2019
◼ ◼ ◼ QoQ % YoY % 1Q 2020 4Q 2019 1Q 2019 change change General Business
Slide 16: Assets & Lending
Financial results overview slay wliy Assets & Lending riyad bank Strong loan growth mainly driven by commercial and mortgage loans Highlights Total Assets Mix (SARbn) Cash & Balances ™ Total loans increased by 16% YoY comprised of increase in Other Assets, Net with SAMA 9 9 commercial and consumer l
Slide 17: Liabilities and Funding
Financial results overview USlyJI wliy Liabilities and Funding riyad bank Continued strong growth in non-commission bearing deposits and progressively optimizing the bank's cost of funds Highlights Total Liabilities Mix (SARbn) Due to Banks & i i i Other Liabilities, Net Other Financial @ =Total cus
Slide 18: General Business
◼ ◼ 0.49 0.37 +33% 0.49 -1% 32.1% 40.9% -22% 32.8% -2% General Business
Slide 19: Income Trends (1)
Financial results overview Income Trends (1) Income growth supported by strong balance sheet and non-funded income growth Highlights ™ Operating income grew by 12% YoY largely driven by 10% growth in net special commission income supported by volume growth. ™ Fee and other income grew by 16% support
Slide 20: Income Trends (2)
Financial results overview olay ely riyad ban Income Trends (2) Record income growth supported by balanced business model Highlights Total Operating Income, Net (SARmn) 9 ™@ = Totaloperating income grew by 12% YoY 2,885 ™ = Income growthwas driven by: 2,383 2,580 2,670 2,763 2,705 > Retail banking (
Slide 21: Expenses Trends
Financial results overview Expenses Trends Improved cost efficiency driven by income growth, despite continued investment in the Bank's transformation program Highlights Operating Expenses Growth Drivers by Type (SARmn) ™@ Operating expenses for 1Q 2020 decreased by 16% compared to 4Q 2019. ™ Cost t
Slide 22: Credit Quality
Financial results overview Credit Quality Stable asset quality trends with strong NPL coverage ratio Impairment Charge for Credit Losses, Net (SARmn) 371 283 303 170 162 ll 190 4Q 18 1919 2Q19 3Q19 4Q 19 1Q 20 NPL Ratio (%) 1.11% . 1.00% 1.01% ° .85% 0.88% ey os 1Q19 2Q19 3Q19 4Q 19 1Q 20 Investor P
Slide 23: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth despite decreased CET1 ratio Highlights @ = The CET1 and total capital adequacy ratios stood at 14.6% and 18.8%, respectively. @ = Total capital adequacy ratio improved in 1Q 2020 to
Slide 24: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels Highlights @ Liquidity remains well within regulatory limits during 1Q 2020. @ = The liquidity coverage ratio stood at 168%. ™@ = The loans to deposit ratio stood at 95% as at 1Q 2020, while the loans to deposit (in
Slide 25: Business Segments
Business Segments General Business
Slide 26: General Business
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Slide 27: Retail Banking (2)
Segmental Results-Retail Banking Retail Banking (2) Us) I elis vat bank Strong 1Q 2020 profit growth driven by balance sheet expansion and lower impairment Highlights @ =1Q 2020 net income increased by 35% YoY to SAR 339 million, mainly driven by 16% net special commission income growth, backed by r
Slide 28: Corporate Banking (1)
Segmental Results- Corporate Banking ser . riya an Corporate Banking (1) Longstanding relationships with both government and corporate customers Corporate Banking Business 1Q 2020 Operating Income 1Q 2020 Net Income Contribution by Segment Contribution by Segment ® = Historically strong corporate ba
Slide 29: Corporate Banking (2)
Segmental Results- Corporate Banking alas eliy Corporate Banking (2) riyad bank Strong assets and liabilities growth in 1Q 2020 Highlights Total Assets (SARbn) ™ 1Q2020netincome decreased by 23% to SAR 547 million mainly , =a | +20% | driven by 70% increase in impairment charge and 6% decrease in 13
Slide 30: Treasury & Investments (1)
Segmental Results- Treasury & Investments Treasury & Investments (1) Manages the bank's investment portfolio, funding and liquidity and provides a wide range of products and hedging solutions to customers Treasury & Investments Business The funding base of the Bank remains well diversified, stable a
Slide 31: Treasury & Investments (2)
Segmental Results- Treasury & Investments Treasury & Investments (2) Strong 1Q 2020 income and profit growth from Fee & Other Income Highlights ™@ Operating income increased by 31% YoY to SAR 686 million mainly driven by both higher net special commission income (15%) and fee and other income (54%).
Slide 32: Riyad Capital (1)
Segmental Results—Riyad Capital Riyad Capital (1) Riyad Capital is a leading investment bank in KSA Asset Management ™ Riyad Capital enjoys the full support and the benefits of being part of one of the largest financial group in Saudi Arabia with strong and growing corporate and retail banking servi
Slide 33: Riyad Capital (2)
Slay eliy Riyad Capital (2) riyad bank Asset Management business drives strong income and profit growth Highlights Total Assets (SARbn) Total Liabilities (SARbn) ™ Riyad Capital grew its operating income by 45% YoY to SAR 154 million, mainly driven by fee income from the asset management 1.6 busines
Slide 34: Riyad Bank Guidance
Financial results overview Us) I elis riyad bank Riyad Bank Guidance The bank is reviewing its 2020 guidance on the back of recent Covid-19 developments Guidance Metric Loans, Net NSCI Margin (%) Cost to Income (%) Cost of Risk (%) CET1(%) ROE Before Zakat (%) Results Presentation—1Q2020 2020 Guidan
Slide 35: Appendix
*, eeecee et weeees eS pe Appendix General Business - . soeeres wooees Elayll ehiy Se
Slide 36: Riyad Bank Contact
Riyad Bank Contact Contact the investor relations for more information: Ibrahim Al-Muhanna Telephone: +966 11401 3030 Ext. 2499 E-mail: ibrahim.al-muhanna@ri nk.com Address: Riyadh - Al Shuhada District Eastern ring road Granada Oasis -Tower (A1) P.O Box 22622 Riyadh 11416 Kingdom of Saudi Arabia In
Slide 37: 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