Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — Q4 2024 Earnings Presentation
29 slides from Al Rajhi Bank's earnings presentation, 2025
Slide 1: Al Rajhi Bank Results Presentation
Al Rajhi Bank Results Presentation 4Q 2024 Earnings Conference Call and Webcast
Slide 2: 4Q 2024 Earnings Call
4Q 2024 Earnings Call 03 4Q 2024 Results Summary 04 Harmonize The Group – Strategy Update 05 4Q 2024 Financial Highlights 18 FY 2025 Guidance 22 ESG Highlights 24 KSA’s Macro-Economic Environment 27 IR Contact Information 4Q2024 Results Presentation 2
Slide 3: 4Q 2024 Results Summary
4Q 2024 Results Summary | Results are above expectations for the year 2024 16.7% YoY Growth in financing portfolio 21.4% Growth in liabilities LDR below regulatory minima 20.6% YoY Balance Net Financing Total Liabilities Loan to Deposit Ratio Sheet Growth 594.2bn +16.7% 693.4bn 701.3bn +21.4% 851.2b
Slide 4: Harmonize the Group: Highlights on our strategy performance
“Harmonize the Group” | Highlights on our strategy performance Business to Business to Support Digital & Data Consumer Business Businesses Leverage customer Become ‘main bank’ Centralization Expand digital base via cross-sell of large corporates and standardization capabilities Group-wide % of custo
Slide 5: 4Q 2024 Financial Highlights
4Q 2024 Financial Highlights
Slide 6: Balance Sheet Trends (1)
Balance Sheet Trends (1) | Balance sheet growth of 20.6% YoY driven by Financing and Investments Total Assets (SARbn) SAR (mn) 4Q 24 3Q 24 QoQ 4Q 23 YoY +20.6% 1,200 Cash & balances with SAMA 53,245 45,085 +18% 41,768 +27% 974 Due from banks & other FI 19,530 15,433 +27% 9,507 +105% 1,000 867 903 In
Slide 7: Balance Sheet Trends (2)
Balance Sheet Trends (2) | Financing growth driven by Corporate and Mortgage Financing, Net (SARbn) Movement in Financing (SARbn) +16.7% +16.7% 600 900 693.4 800 500 649.0 39.1 8.9 693.4 700 594.2 34.9 42.9 30.2 1.3 400 32.2 15.8 0.7 177.8 600 161.7 594.2 500 134.9 1.9 300 (0.6) 400 200 300 200 427.
Slide 8: Balance Sheet Trends (3)
Balance Sheet Trends (3) | Investments have grown significantly supporting our portfolio diversification Investments, Net (SARbn) Investments, Net (SARbn) +31.2% +31.2% 175.0 175.0 200 200 160.8 160.8 11.8 11.8 133.4 8.2 7.8 133.4 8.2 7.8 150 7.1 15.0 7.1 22.4 15.0 150 6.2 6.2 23.2 20.1 4.8 4.8 100
Slide 9: Net Income Trends
Net Income Trends | highest-ever annual net income with a 19% growth YoY Net Income For The Period After Zakat (SARmn) SAR (mn) FY 24 FY 23 YoY 4Q 24 4Q 23 YoY +32.3% Net financing & investment income 24,843 21,269 +17% 6,941 5,550 +25% 8,000 7,000 Fee from banking services, net 4,693 4,226 +11% 1,2
Slide 10: Operating Income Trends
Operating Income Trends | Higher operating income driven by net yield and fee income growth Total Operating Income (SARmn) Total Operating Income Growth Drivers By Type (SARmn) 12,000 +24.1% 35,000 +16.4% 8,750 3,574 467 46 436 32,055 8,439 10,000 30,000 7,229 7,637 27,531 8,000 7,051 25,000 20,000
Slide 11: Expenses Trends
Expenses Trends | Cost efficiencies remains solid Operating Expenses (SARmn) Operating Expenses Growth Drivers By Type (SARmn) 3,000 +2.6% 7,000 +6.3% 6,000 2,070 404 7,971 2,500 1,998 1,956 2,050 199 2,000 1,894 5,000 7,498 (130) 4,000 1,500 3,000 1,000 2,000 500 1,000 0 0 4Q 23 1Q 24 2Q 24 3Q 24 4
Slide 12: Net Impairment & Cost of Risk
Net Impairment & Cost of Risk | Higher gross charge due to Financing portfolio growth Net Impairment Charges (SARmn) Cost of Risk (%) +36.2% 1,050 0 850 0 688 553 0.33% 0.32% 0.28% 650 0.28% 0 455 0.25% 450 406 421 0 250 0 50 (0) 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 FY 23 1Q 24 1H 24 9M 24 FY 24 Movement i
Slide 13: Asset Quality Trends (1)
Asset Quality Trends (1) | Asset quality remains healthy with a high NPL coverage Movement in NPL (SARmn) NPL Formation (SARmn) 4,500 8,000 +24.1% +24.1% 4,000 3,500 783 5,334 7,000 5,563 5,334 253 6,000 3,000 2,500 4,298 5,000 4,298 4,000 2,000 3,000 1,500 2,000 1,000 (4,526) 500 1,000 0 0 4Q 23 Re
Slide 14: Asset Quality Trends (2)
Asset Quality Trends (2) | Healthy stage coverage reflecting prudent risk management ECL by Stage (SARmn) Movement in ECL by Group (SARmn) 8,726 8,608 8,505 10,000 12,000 10,000 -2.5% 8,000 6,000 4,507 4,143 4,324 8,000 8,726 511 8,505 6,000 1,832 (732) 4,000 1,695 1,699 4,000 2,000 2,524 2,633 2,48
Slide 15: Liquidity Trends
Liquidity Trends | Liquidity remains comfortably within regulatory requirements HQLA (SARbn) Loan to Deposits Ratio (SAMA) (%) 160 131.0 Regulatory 128.1 1 140 121.1 Maximum 90% 105.5 105.4 85.5% 1 82.9% 120 100 1 78.7% 79.7% 78.3% 80 1 60 1 40 1 20 0 0 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 4Q 23 1Q 24 2Q 2
Slide 16: Capitalization Trends
Capitalization Trends | Capital position well above regulatory minima RWA (SARbn) Total Capital (SARbn) +17.5% +10.3% 180 800 160 611.4 700 577.8 47.0 140 119.7 123.6 600 520.3 47.0 112.0 38.4 10.5 5.6 120 500 9.8 6.0 400 10.8 100 5.8 80 554.0 118.0 300 521.0 106.2 113.7 60 200 471.0 40 100 20 0 0 4
Slide 17: Return Metrics
Return Metrics | Al Rajhi Bank’s returns remain industry-leading Return on RWA (%) Earnings per Share (SAR) 0 0 2 +29.8% 2 1.22 1.29 0 3.45% 3.49% 1.12 0.99 1.05 3.35% 3.30% 1 3.26% 0 1 0 0 0 FY 23 1Q 24 1H 24 9M 24 FY 24 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 Return on Equity (%) Return on Assets (%) 0 0 0
Slide 18: FY 2025 Guidance
FY 2025 Guidance
Slide 19: FY 2025 Assumptions and Outlook
FY 2025 Assumptions and Outlook | Interest rates are expected to remain stable in 2025 • Saudi real GDP is expected to improve by 1.3% in 2024 driven by 4.3% higher non-oil activities • IMF has revised Saudi GDP growth forecasts to 3.3% in 2025 and projected 4.1% for 2026 Economy • Consumer spending
Slide 20: FY 2025 Guidance
FY 2025 Guidance | For our strategy “Harmonize the Group“ FY 2024 Change FY 2024 Actual FY 2025 Guidance Balance Sheet Financing +16.7% SAR 693 Bn. High single digit Net profit margin +14 bps 3.13% +5 bps to +15 bps Profitability Cost to income ratio -2.4% 24.9% Below 24.5% ROE +1.7% 21.1% Above 21%
Slide 21: Q&A
Q&A
Slide 22: ESG Highlights
ESG Highlights
Slide 23: ESG Highlights | 4Q 2024
ESG Highlights | 4Q 2024 +200 USD 4.6 bn Scholarships to Orphan ISO/DIS 37301:2020 Green syndicated loan students to join Compliance Universities Started using solar +39k energy system in 61 Families have been +22k ISO 22301:2019 benefited from the Employees across the Business Continuity branches t
Slide 24: KSA's Macro-Economic Environment
KSA’s Macro–Economic Environment
Slide 25: KSA Economic Outlook
KSA Economic Outlook | Economic conditions remain positive for the Kingdom Highlights GDP Growth/Brent Oil Price 99.0 • Saudi GDP is expected to increase by 1.3% in 2024 driven by higher 82.5 84.8 80.5 100.0 non-oil activities. 7.2 70.9 80.0 5.2 41.7 60.0 Based on IMF forecasts, Saudi’s GDP is estim
Slide 26: Banking Sector Highlights
Banking Sector Highlights | Banking system deposits continue growing by end of 2024 Recent Developments SAMA LDR (%) & Bank Loans and Deposits (SARbn) 79.5% 81.5% 80.7% 2,956 83.2% 3,000 75.0% Deposits have grown in the banking system by end of December 2024 2,692 2,900 • 80.0% 2,584 2,800 2,473 2,7
Slide 27: IR Contact Information
IR Contact Information
Slide 28: Additional Information
Additional Information | Contact investor relations for more information Sulaiman Alquraishi Mohammed M. Alqahtani +966 (11) 828 1987 +966 (11) 828 1921 Alquraishis@alrajhibank.com.sa AlqahtaniM-M@alrajhibank.com.sa Abdulsalam Alsukaiti Aishah Alshammari +966 (11) 828 1942 +966-11-828-1973 Alsukaiti
Slide 29: 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