Riyad Bank · TADAWUL:1010
Riyad Bank — FY2023 Earnings Presentation
23 slides from Riyad Bank's earnings presentation, Feb 26, 2024
Slide 1: Earnings Presentation FY 2023
w, ot f ‘a ( i t f Earnings Presentation FY 2023 f / Ms: ~~ ~~ SSO ~~~ ss ~~~ =~ ee Riyad Bank - Earnings Presentation - 26/02/24
Slide 2: FY 2023 Performance Highlights
FY 2023 Performance Highlights Strong growth +13% 3.61% +15% 15.6% p p p p Healthy & resilient 1.24% 142.1% 20.7% 81.9% financial position Good progress on refreshed strategy General Business
Slide 3: Strategy Update
|_| Strategy Update Riyad Bank - Earnings Presentation - 26/02/24 General Business
Slide 4: We have already come a long way on this journey: Key Strategic Milestones
We have already come a long way on this journey Key Strategic Milestones ▪ ▪ ▪ ▪ ▪ ▪ General Business
Slide 5: 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 6: 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 7: 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 8: 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 9: 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 10: FY 2023 Financial Performance
| | FY 2023 Financial Performance Riyad Bank - Earnings Presentation - 26/02/24
Slide 11: Strong growth in profitability boosted by lending growth and improved margins
Strong growth in profitability boosted by lending growth and improved margins p p +8% +13% +15% p +19% +23% p +13% 159.9% 81.9% 17.6% 20.7% General Business
Slide 12: Solid balance sheet expansion driven by balanced financing growth
Solid balance sheet expansion driven by balanced financing growth 141 p 8.6 22.4% General Business
Slide 13: Which was funded mainly by interest bearing deposits while overall liquidity position remained comfortable
Which was funded mainly by interest bearing deposits while overall liquidity position remained comfortable, leaving ample room for growth q q 113.4% 159.9% 81.9% 107.6% General Business
Slide 14: Lending growth and margin expansion from rising benchmark rates boosted NSCI
Lending growth and margin expansion from rising benchmark rates boosted NSCI, though margin peaked in 1Q-23 from shifting deposit mix and higher funding costs General Business
Slide 15: While fee & other income growth witnessed a slight drop driven by lower cards
While fee & other income growth witnessed a slight drop driven by lower cards and capital markets income partly offset by credit facilities and trade fees 2,385 General Business
Slide 16: Positive jaws improve cost efficiency despite ongoing investments
Positive jaws improve cost efficiency despite ongoing investments in infrastructure, digital capabilities, and strategic initiatives 51% General Business
Slide 17: Cost of risk rose from efforts to boost coverage and manage NPLs proactively
Cost of risk rose from efforts to boost coverage and manage NPLs proactively p 142.1% 0.31% 12.9% 46.7% p p q General Business
Slide 18: Together these factors spurred strong growth in profitability and better returns
Together these factors spurred strong growth in profitability and better returns p 15,899 p 10,930 General Business
Slide 19: Supporting strong and stable capitalization well above regulatory minima
Supporting strong and stable capitalization well above regulatory minima General Business
Slide 20: 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 21: Appendix
| Appendix Riyad Bank - Earnings Presentation - 26/02/24 General Business
Slide 22: Contact the investor relations for more information
Contact the investor relations for more information General Business
Slide 23: Disclaimer
Disclaimer General Business