Riyad Bank · TADAWUL:1010
Riyad Bank — FY2021 Earnings Presentation
27 slides from Riyad Bank's earnings presentation, Mar 9, 2022
Slide 1: Results Presentation FY 2021 Earnings Call
Results Presentation FY 2021 Earnings Call Tareq Al Sadhan, Chief Executive Officer Abdullah Al Oraini, Chief Financial Officer Riyadh, 9th March 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 FY 2021 Key Metrics Third Largest Bank in Saudi Arabia Riyad Bank Presence SAR London Singapore 326 bn in Assets 340 Branches (Licensed) 1 Branch 1 Rep Office SAR 217bn in Loans, Net 2,242 ATMs SAR 212 bn in Deposit
Slide 3: Management Highlights FY 2021 Snapshot
Riyad Bank at glance Management Highlights FY 2021 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 13.6% YoY to SAR 217 billion. Total Deposits gr
Slide 4: Macroeconomic Environment
Macroeconomic Environment 4 General Business
Slide 5: Global Economy
KSA Macroeconomic environment Global Economy Key Highlights The global economy is projected to grow by 4.4 percent in 2022 and 3.8 percent in 2023 according to recent projections by IMF. Inflation continued to rise throughout the second half of 2021, driven by the ongoing supply chain disruption
Slide 6: Domestic Economy 1/2
Macroeconomic environment Domestic Economy 1/2 Key Highlights The bank projects real GDP to grow by 5.6% YoY in the 1st quarter of 2022 on the back of improved oil market conditions and non-oil economy compared to the same quarter of 2020. As a result, real GDP is projected to grow by 3% and 5% in
Slide 7: Domestic Economy 2/2
Macroeconomic environment Domestic Economy 2/2 Key Highlights Money Supply (M3) Increased by 7.4% to reach 2.3 Tr in 2021 over increased demand deposits which expanded by 6% to amount to around 1.4 Tr. Loans-to-deposits ratio reached 80.3% in Dec 2021, the highest since March 2018 as credit prov
Slide 8: Vision 2030 initiatives
Macroeconomic environment Vision 2030 initiatives Riyad Bank is fully committed to the success of the National Agenda The initiatives contribute to … 96 KPIs of the Saudi vision 2030 # Signed Agreements signed • • • Program 100% Program 90% Agency program 25 28th Sep 2020 KPIs • Tourism Partnership
Slide 9: Strategy Update
Strategy Update 9 General Business
Slide 10: Structural and recent shifts in the industry require us to chart a new course for the Bank
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 11: Financial Results Overview
Financial Results Overview 11 General Business
Slide 12: FY 2021 Key Highlights
Financial results overview FY 2021 Key Highlights FY 2021 Vs. FY 2020 5.0% 13.6% 3.9% 4.3% 0.3% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits Credit related impairment 27.8% 1.0% 9.5% 3.2% decreased by 56.7% . Income Statement Cost o
Slide 13: Financial Highlights – Balance Sheet
Financial results overview Financial Highlights – Balance Sheet Balance sheet growth supported by continued growth in loans Total Assets Growth Drivers (SARbn) QoQ % YoY % SAR (mn) 4Q 2021 3Q 2021 4Q 2020 change change +5% 26 326 Cash and balances with 310 2 SAMA and financial 43,232 44,414 -2.7% 55
Slide 14: Assets & Lending
Financial results overview Assets & Lending Loan growth mainly driven by commercial and Mortgage loans Loans & Advances Growth Drivers (SARbn) Mortgages Loans, Gross (SARbn) +23% +14% 48 42 45 12 14 0 217 39 41 191 0 37 (1) Q4-20 Overdrafts Credit Consumer Commercial Other Q4-21 Q3-20 Q4-20 Q1-21 Q2
Slide 15: Liabilities and Funding
Financial results overview Liabilities and Funding Stable Funding Profile Customer Deposits Growth Drivers (SARbn) Total Liabilities Mix (SARbn) +4% 203 1 8 1 212 5% 3% 16% (1) SAR 278 Bn Q4-20 Demand Savings Time Other Q4-21 76% Total Customer Deposits by Type (SARbn) +4% Due to Banks & Other Finan
Slide 16: Financial Highlights – Income Statement
Financial results overview Financial Highlights – Income Statement Net income growth due to higher operating income and lower impairment charges Net Income before Zakat Growth Drivers by Segment (SARmn) SAR (mn) +23% Net special commission income 8,293 8,214 +1.0% 2,070 1,982 +4.4% Fee and other inc
Slide 17: 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) +3% +6% 11,205 7 6 131 219 11,568 2,821 2,790 2,824 2,978 2,817 2,949 FY-20 Retail Corporate Treasury & Riyad C
Slide 18: Expenses Trends
Financial results overview Expenses Trends Continued cost efficiency despite banks’ investment in its Transformation Program Operating Expenses (SARmn) Operating Expenses Growth Drivers by Type (SARmn) 0% +9% 958 982 1,012 1,008 963 890 153 16 5 157 3,965 3,635 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY
Slide 19: 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 %) -62% 1.07% 648 0.96% 466 0.50% 0.48% 0.40% 0.41% 249 229 244 139 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 9M-20 FY-20 Q1-21 H1-21 9M-21
Slide 20: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) Capital Ratios (%) +11% 55 57 51 44 46 47 19.7% 19.3% 19.3% 0.2018.5% 19.1% 19.0% 7 9 10 Q4-20 Q3-21 Q4-21 16.1% 16.5% Common equity tier 1 capital Tier 2 capi
Slide 21: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 62 103.2% 102.7% 55 0.104 101.1% 51 52 52 53 0.102 98.9% 0.100 190% 200% 0.09894.8% 94.2% 181% 176% 99.0% 98.6% 168% 168% 0.096 97.0% 0.094 0.092 94.
Slide 22: 2022 Outlook
2021 Outlook 22 General Business
Slide 23: 2022 Guidance
2022 Outlook 2022 Guidance Riyad Bank Guidance 2022 Guidance Guidance Metric FY 2020 2021 Updated Guidance FY 2021 High single digit %- low SAR 191 Bn SAR 217 Bn Loans, Net double digit % Mid teens (+10% YoY) (+13.6% YoY) growth NSCI Margin (%) 3.13% -10bps to -20bps 2.97% 0 bps - +10 bps Cost to In
Slide 24: Appendix
Appendix 24 General Business
Slide 25: Riyad Bank's commitment to Environmental, Social and Governance (ESG) factors
ESG Focus Riyad banks’ commitment to Environmental, Social and Governance (ESG) factors, started well before global trends “Bukra”, a comprehensive and long-term corporate social responsibility With Bukra, the Bank is targeting the following UNSDGs: strategy, is aligned with the best practices of th
Slide 26: 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 27: 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