Riyad Bank · TADAWUL:1010
Riyad Bank — Q3 2022 Earnings Presentation
29 slides from Riyad Bank's earnings presentation, 2022
Slide 1: Q3 2022 Results Presentation
Q3 2022 Results Presentation For any questions: Presenters: Contact Investor Relations Department Mr. Abdullah Al Oraini, CFO Dr. Naif Al Ghaith, Chief Economist Investor.relations@riyadbank.com General Business
Slide 2: Riyad Bank is the third largest Bank in Saudi Arabia
Riyad Bank is the third largest Bank in Saudi Arabia China Soon Q3 2022 Key Metrics Third Largest Bank in Saudi Arabia* Riyad Bank Presence London SAR 1 Branch Singapore 1 Rep Office 348 bn in Assets 339 Branches (Licensed) SAR 242 bn in Loans, Net 2,238 ATMs SAR 236 bn in Deposits 182,341 PoS SAR R
Slide 3: Management highlights
Management highlights 9M 2022 Snapshot Activated a new phase of the transformation 2025. – Value through innovation. Strategy – Enablement through next gen operating model. – Efficiency through digitization. Net loans grew by 14.8% YoY to SAR 242 billion. Total Deposits grew by 15.6% YoY to SA
Slide 4: Strategy update
Strategy update 4 General Business
Slide 5: Structural and recent shifts in the industry require us to chart a new course
Structural and recent shifts in the industry require us to chart a new course for the Bank Depressed demand and Imperative to renew Growing competitive Recent Increasing customer compressed margins due to effort to reinforce our intensity with recent expectations around digital trends COVID-19 compe
Slide 6: Vision 2030 initiatives
Vision 2030 initiatives Riyad Bank is fully committed to the success of The initiatives contribute to … 96 KPIs of the Saudi vision 2030 the National Agenda • Financial Support 10 signed Initiative for NCPP • Agency Services KPIs 14th Mar 2021 signed # Signed Agreements • • Program 100% Program 90%
Slide 7: Vision 2030 initiatives (continued)
Vision 2030 initiatives (continued) Riyad Bank is fully committed to the success of the National Agenda # Signed Agreements The initiatives contribute to … 96 KPIs of the Saudi vision 2030 signed • Cultural development initiatives • Culture Road Program 22 21st Apr 2022 KPIs # of Entities • Supporti
Slide 8: ESG at Riyad Bank
ESG at Riyad Bank 8 General Business
Slide 9: ESG highlights Q3-2022
ESG highlights Q3- 2022 41.2% 750 M 1,634Hours Blood Donation In a drive to increase blood Updated guidelines to The world’s first donations, +794 ISO/DIS 37301:2020 Reduced electricity Bukra Ambassadors meet the needs of sustainable AT1 Sukuk donors enlisted, who donated Compliance consumption in b
Slide 10: Economic environment
Economic environment 10 General Business
Slide 11: Global Economy
Global Economy Key Highlights World GDP Outlook for 2022 is Revised to 3.0% EU Inflation is Projected to be more Persistent than the US % World 7.0 US United States Global growth is projected Euro area 8.1 Euro Area 6.0 to slow from an estimated 5.1% in 2021 to 3.2% in Emerging Market IMF WEO Fore
Slide 12: Domestic Economy
Domestic Economy Key Highlights Saudi PMI Pointed to the Ongoing Expansion in Private Sector CPI Inflation Increased by 3.1% in Sep 2022 Pushed by Services 10.0 Non-oil GDP YoY (Left) 60 4.0% General Index Saudi Arabia PMI data 8.0 Saudi PMI 58 Goods pointed to the ongoing 3.5% Services 6.0 56 mar
Slide 13: Financial results overview
Financial results overview 13 General Business
Slide 14: 9M 2022 Key highlights
9M 2022 Key highlights 9M 2022 Vs. 9M 2021 9.2% 14.8% 7.3% 15.6% 11.2% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits 13.2% 15.7% 10.9% 14.4% Credit related impairment increased by 5.7% . Income Statement Net income Cost of Risk in 9M
Slide 15: Financial highlights – Balance sheet
Financial highlights – Balance sheet Stable balance sheet performance QoQ % SAR (mn) 3Q 2022 2Q 2022 change 3Q 2021 YoY % change Total Assets Growth Drivers (SARbn) Cash and balances with SAMA +7% 43,985 56,293 -21.9% 44,414 +1.0% and financial institutions 326 24 3 348 Investments, net 53,246 53,53
Slide 16: Assets & lending
Assets & lending Loan growth mainly driven by Commercial and Mortgage loans Mortgages Loans, Gross (SARbn) Loans & Advances, Net Growth Drivers (SARbn) +11% +26% 0 9 16 0 242 54 56 217 48 51 42 45 (1) Q4-21 Overdrafts Credit Consumer Commercial Other Q3-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Cards L
Slide 17: Liabilities and funding
Liabilities and funding Stable funding profile Customer Deposits Growth Drivers (SARbn) Q3 2022 Total Liabilities Mix (SARbn) +11% 14 3 236 3% 5% 13% 212 7 0 SAR 298 Bn Q4-21 Demand Savings Time Other Q3-22 79% Total Customer Deposits by Type (SARbn) +11% 237 Due to Banks & Other Financial Instituti
Slide 18: Financial highlights – Income statement
Financial highlights – Income statement Net income growth mainly due to higher operating income YoY % QoQ % SAR (mn) 9M 2022 9M 2021 change 3Q 2022 2Q 2022 change Net Income before Zakat Growth Drivers by Segment (SARmn) Net special commission income 7,201 6,224 +15.7% 2,672 2,397 +11.5% +13% Fee an
Slide 19: 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) +14% 227 919 112 9,857 8,619 +25% (20) 3,525 3,102 3,230 2,978 2,817 2,949 9M-21 Retail Corporate Treasury & Riyad Capital 9M-22 Investmen
Slide 20: Expenses trends
Expenses trends Improved cost efficiency despite banks’ investment in its Transformation Program Operating Expenses (SARmn) Operating Expenses Growth Drivers by Type (SARmn) +17% +9% 1,174 1,012 1,008 1,034 1,064 136 11 34 3,272 963 3,002 (89) Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 9M-21 Employee- Prem
Slide 21: Credit quality
Credit quality Stable asset quality trends with solid NPL coverage ratio Impairment Charge for Credit Losses, Net (SARmn) Cost of Risk (YTD %) +47% 0.47% 302 0.40% 0.41% 0.39% 0.37% 229 244 204 0.26% 139 148 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 H1-21 9M-21 FY-21 Q1-22 H1-22 9M-22 Annualized YTD Impai
Slide 22: Capitalization
Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) Capital Ratios (%) +4% 57 59 59 19.3% 19.3% 19.2% 19.5% 0.20 19.0% 19.1% 47 50 47 16.4% 9 0 9 0 9 3 15.9% 16.0% 16.3% 16.0% 15.8% Q4-21 Q2-22 Q3-22 15.9% 0.15 16.0% 15.8% 15.5% 15.2% 15.
Slide 23: Liquidity
Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 103.2% 0.1050 102.7% 102.4% 72 101.0% 100.9% 55 53 0.1025101.1% 52 51 54 0.1000 176% 168% 168% 172% 165% 157% 0.0975 99.0% 98.6% 98.8% 0.0950 97.4% 97.3% 97.0% 0.0925 0.0900 Q2
Slide 24: Guidance
Guidance 24 General Business
Slide 25: 2022 Guidance
2022 Guidance 9M 2022 2022 Updated Guidance Metric FY 2021 2022 Guidance Actual guidance SAR 217 Bn SAR 242 Bn Loans, Net Mid teens Mid-high teens (+13.6% YoY) (+14.8% YoY) NSCI Margin (%) 2.97% 0 bps – +10 bps 3.16% +10 bps – 20bps Cost to Income (%) 34.3% Below 35% 33.2% Below 34% . Cost of Risk (
Slide 26: Q&A
RS oO eee oreoes * + &A ° ° seoeen woreees General Business
Slide 27: Appendix
Appendix 27 General Business
Slide 28: 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 29: 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