Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — Q1 2019 Earnings Presentation
14 slides from Al Rajhi Bank's earnings presentation, 2019
Slide 1: Al Rajhi Bank Results Presentation
Al Rajhi Bank Results Presentation 1Q 2019 Earnings Conference Call and Webcast The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank 1Q 2019 Results Presentation
Slide 2: Management Summary
Management Summary 1Q 2019 Highlights 'ABCDE' Strategy implementation is on track and continuing to deliver strong financial performance Growth in mortgages, customers loans, and net profit margin Strategy Improved customer service, digitization and new products all contributed to the bottom lin
Slide 3: Strategy Overview
Strategy Overview Pillars of the ABCDE 'Back to Basics' Strategy A B C D E Accelerate Become Employer Customer Digital Execution Growth of Choice Focus Leadership Excellence A B C D E Grow mortgage, private sector, Smartly expand channels & World-class Engaged workforce Update value propositions Key
Slide 4: Strategy Update
Strategy Update ABCDE 'Back to Basics' strategy delivered strong results in 1Q 2019 A B C D E Accelerate Become Employer Customer Digital Execution Growth of Choice Focus Leadership Excellence 12% YoY operating income 12 new products launched to Al Rajhi Bank Academy 90K POS 253 Bots growth cater to
Slide 5: Strong financial performance in 1Q 2019
Strong financial performance in 1Q 2019 Key drivers of 1Q 2019 net income growth of 21.1% YoY to SAR 2.9bn 12.0% total operating income growth from financing & Improved operating efficiency by 220bps year-on-year to investment income (+14.6%) improvement (SARmn) 29.4% (C/I ratio) 2,000 +36bps -7bps
Slide 6: Record 1Q 2019
Record 1Q 2019 1Q 2019 operating income of SAR 4.64bn and net income of SAR 2.89 bn Total Operating Income (SARmn) Net income for the period (SARmn) 5,00 0 4,500 6,000 +12.0% +21.1% 4,0 00 4,506 4,639 4,383 3,50 0 4,288 5,00 0 4,142 2,772 2,885 2,569 2,573 3,000 4,0 00 2,500 2,383 3,000 2,00 0 1,500
Slide 7: Return Metrics
Return Metrics 1Q 2019 was an excellent year, leading to further improvement of our return profile Return on Equity (%) Return on Assets (%) +27bps 0 0 +26bps +327bps 0 +20bps +19bps 0 +54bps +59bps +258bps 0 3.21% 0 23.09% 0 2.94% 0 19.82% 0 2.49% 2.68% 0 16.11% 16.65% 17.24% 0 2.29% 0 0 0 0 0 2015
Slide 8: Balance Sheet Strength
Balance Sheet Strength Balance Sheet growth was driven by 3.4% deposit growth Total Customers' Deposits (SARbn) Financing, Net (SARbn) Capital Adequacy Ratio (%) 500 400 +3.4% 500 0 284 16 294 11 450 +3.6% 21.5% 30 0 400 0 20.9% 350 4 5 0 236.4 30 0 200 250 228.2 0 +5.1% 277 200 100 264 150 0 100 0
Slide 9: Asset Quality Stable
Asset Quality Stable Asset quality remains solid NPL Ratio Trends (%) NPL Coverage Ratio (%) 0 2.41% 4 0 1.88% 1.98% 1.92% 4 1.30% 0 3 342% 346% 0.81% 0.95% 0.93% 314% 0.83% 0 3 0.72% 0 2 0 2 231% 0 1 177% (0 ) 0.35% 0.36% 0.38% 0.34% 0.34% 1 (0 ) 0 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2015 2016 2017 2018
Slide 10: Capitalisation Trends
Capitalisation Trends Rising profitability drives total capital higher Total Capital (SARbn) Commentary 120 Total Capital increased by 1.8% on rising profitability +1.8% 100 80 Capitalization remains strong with CAR of 20.9% and CET1 of 60 53 51 54 19.8% as at 31 March 2019 40 3 3 3 20 50 49 51
Slide 11: Progress against guidance and outlook
Progress against guidance and outlook Financing & income growth, efficiency and cost of risk in line with FY 2019 guidance FY 2018 1Q 2019 Actual FY 2019 Guidance Balance Mid single digit Financing, Net (SAR bn) 234 236 (+0.9%) Sheet growth Net Profit Margin 4.34% 4.80% (+46 bps) +25 to +30 bps Prof
Slide 12: Questions & Answers
Questions & Answers The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank 1Q 2019 Results Presentation
Slide 13: Additional Information
Additional Information Contact investor relations for more information Mr. Amr M. Sager Head of Investor Relations Tel: +966 (11) 828 1985 Email: sagera@alrajhibank.com.sa Al Rajhi Bank The Blue Chip Islamic Bank 13 1Q 2019 Results Presentation
Slide 14: 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