Riyad Bank · TADAWUL:1010
Riyad Bank — FY2023 Earnings Presentation
57 slides from Riyad Bank's earnings presentation, Dec 31, 2023
Slide 1: Investor Presentation FY 2023
[a Yaa inne i din —_—— eee ~~ ~~~ ~~~ ~~~ ~~ ~~ ~~ SY Investor Presentation FY 2023 Riyad Bank - Investor Presentation -31/12/23
Slide 2: Agenda
Riyad Bank Profile 3 Strategy 7 Sustainability 15 Operating Environment 17 Financial Performance 22 Appendix 52 General Business
Slide 3: Riyad Bank Profile
| Riyad Bank Profile Riyad Bank - Investor Presentation - 31/12/23.
Slide 4: Riyad Bank is the third largest bank in Saudi Arabia
Riyad Bank is the third largest bank in Saudi Arabia 7,887 29% 4Q: 3.9 387 FY: 15.9 31.3% 4Q: 2.7 274 FY: 10.9 0.70% 4Q: 2.0 335 255 FY: 8.0 17.6% 2,218 81.9% 159.9% 113.4% 227,744 General Business
Slide 5: Riyad Bank is consistently in the top 3 KSA banks across a range of metrics
Riyad Bank is consistently in the top 3 KSA banks across a range of metrics General Business
Slide 6: Riyad Bank is a liquid stock with strong domestic ownership
Riyad Bank is a liquid stock with strong domestic ownership q 85.358 25.25 35.50 11.0x 1.59x 4.9% 89.4% General Business
Slide 7: Strategy
Strategy Riyad Bank - Investor Presentation - 31/12/23. ‘General Business
Slide 8: We have already come a long way on this journey
We have already come a long way on this journey Key Strategic Milestones ▪ ▪ ▪ ▪ ▪ ▪ General Business
Slide 9: We have become a Top-2 bank in corporate and a Top-3 in retail banking
We have become a Top-2 bank in corporate and a Top-3 in retail banking Riyad Bank is #2 Riyad Bank is #3 General Business
Slide 10: Our ambition is to be the best Bank in KSA
Our ambition is to be the best Bank in KSA Most Profitable Most Efficient Bank of Choice Most Innovative & Digitally Enabled General Business
Slide 11: Our aspiration and strategy is built on a few guiding principles
Our aspiration and strategy is built on a few guiding principles Corporate Digital Retail General Business
Slide 12: Our strategy is driven by key operating model shifts
Our strategy is driven by key operating model shifts Segments Broad meet-the-market segment propositions Custom propositions at granular segments Focus on banking needs only Focus on customer ecosystem beyond banking Risk avoidance via policy exclusions Active risk management via analytics Products
Slide 13: Clear KPIs have been set at the Division level as well
Clear KPIs have been set at the Division level as well Mobile first bank with distinctive Most profitable Corp bank & core customized segment/product transaction partner for institutions Retail Corporate Best Bank in KSA Innovation Treasury Leading value creator through Distinctive bank wide enabler
Slide 14: Retail strategic initiatives
Retail strategic initiatives Segments 1 2 3 4 Products 5 6 7 Channels 8 9 10 General Business
Slide 15: Corporate strategic initiatives
Corporate strategic initiatives Segments 1 2 Products 3 Channels 4 General Business
Slide 16: Treasury strategic initiatives
Treasury strategic initiatives Products 1 2 3 4 General Business
Slide 17: Digital strategic initiatives
Digital strategic initiatives Digital 1 2 3 4 General Business
Slide 18: Sustainability Update
|_| Sustainability Update Riyad Bank - Investor Presentation - 31/12/23.
Slide 19: Embedding corporate responsibility and sustainability into the Bank’s strategy
Embedding corporate responsibility and sustainability into the Bank’s strategy Environmental Social Governance 750M Diversity ظاهرة التصحر أبعادها وتداعيتاها تعلمها معنا 5 7.7Tons 5 SAR 13.9mn هدف الهالل +15 شجرة لبكرة General Business
Slide 20: Operating Environment
| Operating Environment Riyad Bank - Investor Presentation - 31/12/23.
Slide 21: Global steady growth and sensible inflation in 2024
Global steady growth and sensible inflation in 2024 q q q q q 50.5 50.6 5.50 5.25 101.3 106.2 5.33 5.39 3.88 4.57 77.04 95.31 General Business
Slide 22: Saudi economy combating 2024 Uncertainties
Saudi economy combating 2024 Uncertainties PMI Index Non Oil GDP q p q p p -4.4 8.6 57.8 57.2 6.0 5.5 7.6% 8.0% 10.0% 9.9% -79.0 -82.0 General Business
Slide 23: Moderate price pressures remain on strong demand
Moderate price pressures remain on strong demand q p q p p -4.4 8.6 57.8 57.2 6.0 5.5 7.6% 8.0% 10.0% 9.9% -79.0 -82.0 General Business
Slide 24: The Saudi banking sector is attractively positioned for growth
The Saudi banking sector is attractively positioned for growth General Business
Slide 25: Financial Performance
| | Financial Performance Riyad Bank - Investor Presentation - 31/12/23.
Slide 26: Balance sheet
Balance sheet Riyad Bank - Investor Presentation -31/12/23 26
Slide 27: Total assets increased by 8% YoY driven by the expansion of the loan portfolio
Total assets increased by 8% YoY driven by the expansion of the loan portfolio, funded mainly by customer deposits ◆ ◆ General Business
Slide 28: Loan book increases, with two thirds of growth from commercial book
Loan book increases, with two thirds of the growth coming from commercial book and the remaining portion primarily from mortgages ◆ ◆ 64.4 ◆ 64.4 ◆ General Business
Slide 29: NPL Ratio of 1.24% shows improvement in both commercial and consumer loans
NPL Ratio of 1.24% shows improvement in both commercial and consumer loans in FY 23 ◆ ◆ ◆ General Business
Slide 30: NPL Coverage improved to 142% driven by the conservative provisioning
NPL Coverage improved to 142% driven by the conservative provisioning ◆ ◆ 91.0% ◆ ◆ 170.6% General Business
Slide 31: Investments grew by 11% YoY from fixed rate securities
Investments grew by 11% YoY from fixed rate securities ◆ ◆ ◆ 51.4 General Business
Slide 32: Customer deposits grew by 6% YoY from interest bearing deposits
Customer deposits grew by 6% YoY from interest bearing deposits ◆ ◆ ◆ ◆ General Business
Slide 33: Comfortable liquidity position with LCR of 159.9% and SAMA Weighted LDR of 81.9%
Comfortable liquidity position with LCR of 159.9% and SAMA Weighted LDR of 81.9% ◆ ◆ ◆ Available stable funding NSFR HQLA LCR General Business
Slide 34: Stable capitalization well above regulatory minima supporting further growth
Stable capitalization well above regulatory minima supporting further growth ◆ ◆ ◆ ◆ General Business
Slide 35: Income statement
Income statement Riyad Bank - Investor Presentation -31/12/23 35
Slide 36: Net income reached SAR 8,046 million for FY 2023, a growth of 15%
Net income reached SAR 8,046 million for FY 2023, a growth of 15% from rising operating income, resulting in 15.6% ROAE after Zakat ◆ ◆ ◆ ◆ General Business
Slide 37: Net Special Commission Income grew by 23% YoY due to margin improvement and loan growth
Net Special Commission Income grew by 23% YoY due to margin improvement and loan growth ◆ ◆ ◆ General Business
Slide 38: Improved margin from year-end as rising loan yields outpacing cost of funds
Improved margin from year-end as rising loan yields outpacing the increasing cost of funds ◆ ◆ ◆ General Business
Slide 39: Neutral sensitivity to the interest rate changes
Neutral sensitivity to the interest rate changes ◆ ◆ ◆ p p ◆ +5.8 SAR mn +0.00% 132 118 General Business
Slide 40: Fee & other income for FY 2023 drop by 2% YoY
Fee & other income for FY 2023 drop by 2% YoY ◆ ◆ ◆ General Business
Slide 41: Retaining cost efficiency despite ongoing investments
Retaining cost efficiency despite ongoing investments in infrastructure, digital capabilities, and strategic initiatives. ◆ ◆ ◆ ◆ 51% General Business
Slide 42: Rising impairment charges on the back of strengthening asset quality
Rising impairment charges on the back of strengthening asset quality ◆ ◆ ◆ ◆ General Business
Slide 43: Segment Performance
Segment Performance Riyad Bank - Investor Presentation -31/12/23 43
Slide 44: Rising net income driven mainly by Corporate segment and Treasury and Investments
Rising net income driven mainly by Corporate segment and Treasury and Investments, partly offset by Retail and Riyad Capital General Business
Slide 45: Corporate segment accounts for 53% of total operating income
Corporate segment accounts for 53% of total operating income translating into 62% share in net income before Zakat. 8,393 1,354 1,478 5,560 4,122 3,114 394 614 2,510 208 100 2,214 874 292 150.6 583 General Business
Slide 46: Corporate profitability sustained by growth in net special commission income
Corporate profitability sustained by the growth in net special commission income, partly offset by the increase in provisioning and expenses ◆ ◆ General Business
Slide 47: Retail net income declined 38% YoY from higher impairments and operating expenses
Retail net income declined 38% YoY from higher impairments and operating expenses ◆ ◆ General Business
Slide 48: Treasury and Investments net income before Zakat increased by 40% YoY
Treasury and Investments net income before Zakat increased by 40% YoY due to higher net special commission income ◆ ◆ ◆ General Business
Slide 49: Riyad Capital net income declined by 21% YoY
Riyad Capital net income declined by 21% YoY impacted by slow brokerage activity and interest rate environment ◆ ◆ ◆ General Business
Slide 50: Outlook & Guidance
Outlook & Guidance Riyad Bank - Investor Presentation -31/12/23 50
Slide 51: With all KPIs within guidance
With all KPIs within guidance Loans, Net SAR 274 bn (+13% YoY) NSCI Margin 3.61% (+50bps YoY) Cost to Income 31.3% Cost of Credit Risk 0.70% CET1 15.7% ROAE after Zakat 15.6% General Business
Slide 52: Historical Performance
Historical Performance Riyad Bank - Investor Presentation -31/12/23 52
Slide 53: Balance sheet 5-year Summary
Balance sheet 5-year Summary General Business
Slide 54: Income Statement 5-year Summary
Income Statement 5-year Summary General Business
Slide 55: Appendix
| Appendix Riyad Bank - Investor Presentation - 31/12/23. ‘General Business
Slide 56: Contact the investor relations for more information
Contact the investor relations for more information General Business
Slide 57: Disclaimer
Disclaimer General Business