Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — FY2019 Earnings Presentation
15 slides from Al Rajhi Bank's earnings presentation, 2020
Slide 1: Al Rajhi Bank Results Presentation
Al Rajhi Bank Results Presentation FY 2019 Earnings Conference Call and Webcast The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank FY 2019 Results Presentation
Slide 2: Management Summary
Management Summary FY 2019 Highlights 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 line Cont
Slide 3: Strategy Update
Strategy Update ABCDE ‘Back to Basics’ strategy delivered strong results in FY 2019 A B C D E Accelerated Become Employer Customer Digital Execution Growth of Choice Focus Leadership Excellence 13% YoY operating income 13 new products launched to Al Rajhi Bank Academy 115 K POS 253 Bots growth cater
Slide 4: Balance Sheet Strength
Balance Sheet Strength Balance Sheet growth was driven by financing activities of 7.7% mainly mortgage growth Financing, Net (SARbn) Highlights Financing, Net Drivers (SARmn) Current accounts growth of (+5.9%) a (91%) non-profit bearing 100 +7.7% deposits. 90 80 20.5 70 Net financing grew by (+7
Slide 5: Strong financial performance in FY 2019
Strong financial performance in FY 2019 Strong operating income growth driven by yield expansion Highlights Total Operating Income Growth Drivers By Segment (SARmn) Solid growth of (+12.5%) YoY driven by yield income mainly from 8,000 +12.5% Retail Banking. 7,000 6,000 5,000 1,967 217 54 19,484
Slide 6: Net Income Trends
Net Income Trends FY 2019 profit growth of 11.7% from solid yield income growth Highlights Net Income Before Zakat Growth Drivers By Segment (SARmn) yield income growth of (+13.4%) mainly driven by mortgage book 10,000 9,000 +11.7% growth. 8,000 7,000 Non-yield (+7.9%) related income improvement
Slide 7: Expenses Trends
Expenses Trends YoY expense growth of 13.0%, driven by upgrading IT & Digital platform Cost to Income Ratio (C/I) Highlights Operating expenses grew by (+13%) for the full year period; and (+22%) in Q4 YoY. +36bps -7bps +73bps -323bps -37bps +185bps 0 0 +188bps Higher IT related expenses primari
Slide 8: Asset Quality Stable
Asset Quality Stable Asset quality remains solid Highlights Total Impairment Charges (SARmn) and Cost of Risk (%) 900 .0 1.70% 80 0.0 Provision increased by (SAR 331 mn) YoY in Q4, driven by 1.50% 700 .0 664.9 enhanced provisioning for mortgage financing book, and higher 1.30% 600 .0 450.4 provisi
Slide 9: Capitalisation Trends
Capitalisation Trends Rising profitability drives total capital higher Highlights Total Capital (SARbn) 120 Total Capital increased by 5.9% on rising profitability. +5.9% 100 Capitalization remains strong with CAR of 19.9% and CET1 of 80 18.8% as at Full Year 2019. 60 51.1 52.1 54.1 2.8 2.9 2.9
Slide 10: Return Metrics
Return Metrics Full year, leading to further improvement of our return profile Return on Equity (%) Return on Assets (%) 2.9% 19.8% 20.5% 2.8% 2.7% 16.1% 17.2% 2.3% 2.5% 16.7% 7.0% 1.0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 ROE Before Zakat ROE After Zakat ROA Before Zakat ROA After Zaka
Slide 11: Progress against guidance and outlook
Progress against guidance and outlook Financing & income growth in line with FY 2019 guidance FY 2018 Actual FY 2019 Guidance FY 2019 Actual FY 2020 Guidance Balance Mid single digit Mid single digit Financing, Net (SAR bn) 231.8 249.7 (+7.7%) Sheet growth growth Net Profit Margin 4.75% +35 to +45 b
Slide 12: Questions & Answers
Questions & Answers The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank FY 2019 Results Presentation
Slide 13: Appendix
Appendix Additional Information The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank FY 2019 Results Presentation
Slide 14: Additional Information
Additional Information Contact investor relations for more information Mr. Amr M. Sager Head of Investor Relations Tel: +966 (11) 828 3536 Email: sagera@alrajhibank.com.sa Mr. Faisal F. Altimyat Senior Investor Relations Officer Tel: +966 (11) 828 1457 Email: altimyatff@alrajhibank.com.sa Al Rajhi B
Slide 15: 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