Riyad Bank · TADAWUL:1010
Riyad Bank — Q2 2022 Earnings Presentation
28 slides from Riyad Bank's earnings presentation, Aug 17, 2022
Slide 1: Results Presentation Q2 2022 Earnings Call
Results Presentation Q2 2022 Earnings Call Mr. Tareq Al Sadhan, Chief Executive Officer Mr. Abdullah Al Oraini, Chief Financial Officer Dr. Naif Al Ghaith, Chief Economist Riyadh, 17th August 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 Q2 2022 Key Metrics Third Largest Bank in Saudi Arabia Riyad Bank Presence SAR London Singapore 358 bn in Assets 339 Branches (Licensed) 1 Branch 1 Rep Office SAR 240 bn in Loans, Net 2,240 ATMs SAR 237 bn in Deposi
Slide 3: Management highlights H1 2022 Snapshot
Riyad Bank at glance Management highlights H1 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 17.1% YoY to SAR 240 billion. Total Deposits gr
Slide 4: Strategy update
Strategy update 5 General Business
Slide 5: 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 6: Vision 2030 initiatives
Strategy update Vision 2030 initiatives Riyad Bank is fully committed to the success of the National Agenda From Aug 2019 – June 2022 The initiatives contribute to … 96 KPIs of the Saudi vision 2030 10 • Financial Support signed Initiative for NCPP • Agency Services KPIs 14th Mar 2021 # Signed signe
Slide 7: Vision 2030 initiatives
Strategy update Vision 2030 initiatives Riyad Bank is fully committed to the success of the National Agenda From Aug 2019 – June 2022 The initiatives contribute to … 96 KPIs of the Saudi vision 2030 # Signed signed Agreements • • Cultural development initiatives 22 21st Apr 2022 Culture Road Program
Slide 8: ESG at Riyad Bank
ESG at Riyad Bank 10 General Business
Slide 9: ESG highlights H1 2022
ESG at Riyad Bank ESG highlights H1 2022 28% 750 M 1,112Hours 1,000 gifts To hospital patients, elderly Updated guidelines to Reduced electricity The world’s first ISO/DIS 37301:2020 Bukra Ambassadors in care centers and charity meet the needs of consumption to HoR and sustainable AT1 Sukuk Complian
Slide 10: Economic environment
Economic environment 15 General Business
Slide 11: Global Economy
Economic environment Global Economy World GDP Outlook Revised to 3.2% in 2022 Inflation Still Persists in U.S. and Europe Key highlights World United States CPI Inflation 8.1 United States OECD - Europe CPI Inflation Global growth is projected to slow 7.6 13.0 from an estimated 6.1 percent in Euro
Slide 12: Saudi Economy
Economic environment Saudi Economy Real GDP Grew by about 12% in Q2 2022 Inflation Rose by 2.3% YoY in June 2022 Key highlights 2.5% 25 Oil activities Food The economy expanded 11.8% in Non-oil activities Housing 20 2.0% the second quarter of 2022, Real GDP Transport maintaining the fastest pace o
Slide 13: Financial results overview
Financial results overview 18 General Business
Slide 14: H1 2022 Key highlights
Financial results overview H1 2022 Key highlights H1 2022 Vs. H1 2021 12.8% 17.1% 6.3% 17.3% 15.7% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits Credit related impairment 10.4% 6.8% 15.6% 9.1% decreased by 11.1% . Income Statement Co
Slide 15: Financial highlights – Balance sheet
Financial results overview Financial highlights – Balance sheet Balance sheet growth supported by continued growth in loans QoQ % SAR (mn) 2Q 2022 1Q 2022 change 2Q 2021 YoY % change Total Assets Growth Drivers (SARbn) Cash and balances with SAMA and financial 56,293 47,729 +17.9% 48,732 +15.5% +10%
Slide 16: 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) +29% +10% 51 54 16 48 0 7 0 240 42 45 217 41 (0) Q4-21 Overdrafts Credit Consumer Commercial Other Q2-22 Q1-21 Q2-21 Q3-2
Slide 17: Liabilities and funding
Financial results overview Liabilities and funding Stable funding profile Customer Deposits Growth Drivers (SARbn) Q2 2022 Total Liabilities Mix (SARbn) +12% 10 12 3 237 3% 5% 212 15% 0 SAR 309 Bn Q4-21 Demand Savings Time Other Q2-22 77% Total Customer Deposits by Type (SARbn) +12% Due to Banks & O
Slide 18: Financial highlights – Income statement
Financial results overview Financial highlights – Income statement Net income growth mainly due to higher operating income YoY % QoQ % Net Income before Zakat Growth Drivers by Segment (SARmn) SAR (mn) 1H 2022 1H 2021 change 2Q 2022 1Q 2022 change Net special commission income 4,529 4,242 +6.8% 2,39
Slide 19: 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) +9% +8% 5,802 213 305 69 6,332 3,102 3,230 2,824 2,978 2,817 2,949 (57) H1-21 Retail Corporate Treasury & Riyad
Slide 20: Expenses trends
Financial results overview Expenses trends Improved cost efficiency despite banks’ investment in its Transformation Program Operating Expenses (SARmn) Operating Expenses Growth Drivers by Type (SARmn) +5% +5% 1,012 1,008 1,034 1,064 982 963 85 10 19 2,098 1,994 (10) Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-
Slide 21: 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 %) +31% 0.50% 0.47% 302 0.40% 0.41% 0.39% 249 229 244 0.26% 139 148 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q1-21 H1-21 9M-21 FY-21 Q1-22
Slide 22: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) Capital Ratios (%) +4% 57 60 59 47 48 50 19.7% 19.3% 19.3% 19.5% 0.20 19.0% 19.2% 0 3 0 9 9 9 16.1% 16.4% Q4-21 Q1-22 Q2-22 15.9% 16.0% 15.8% 16.3% Common equi
Slide 23: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 103.2% 101.1% 102.7% 55 0.104 101.0% 52 52 53 51 54 100.9% 0.10298.9% 0.100 0.098 181% 176% 172% 99.0% 98.6% 168% 168% 157% 0.096 97.4% 97.3% 97.0% 0
Slide 24: Guidance
Guidance 34 General Business
Slide 25: 2022 Guidance
2022 Outlook 2022 Guidance Riyad Bank guidance H1 2022 2022 Updated Guidance Metric FY 2021 2022 Guidance Actual guidance SAR 217 Bn SAR 240 Bn Loans, Net Mid teens Mid-high teens (+13.6% YoY) (+17.1% YoY) NSCI Margin (%) 2.97% 0 bps - +10 bps 2.93% +10 bps – 20bps Cost to Income (%) 34.3% Below 35%
Slide 26: Q&A
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Slide 27: 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 28: 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