Riyad Bank · TADAWUL:1010
Riyad Bank — Q1 2020 Earnings Presentation
37 slides from Riyad Bank's earnings presentation, 2020
Slide 1: Riyad Bank 1Q 2020 Investor Presentation
Riyad Bank Results Presentation – 1Q 2020 Riyad Bank 1Q 2020 Investor Presentation Public
Slide 2: Contents
Riyad Bank Results Presentation – 1Q 2020 Contents 01 Who We Are 03 02 Strategy Overview 05 03 COVID-19 Update 06 04 Transformation Program 08 05 1Q 2020 Financial Results 13 06 Business Segments 25 07 Outlook 2020 34 Public
Slide 3: Who We Are: More than 60 years of history
Who We Are More than 60 years of history Established in 1957, Riyad Bank is one of the largest Riyad Bank Presence financial institutions in the Kingdom of Saudi Arabia and the London Singapore 1 Branch 1 Rep Office Middle East with a paid-up capital of SAR 30 billion. The Banks professional and ded
Slide 4: Riyad Bank is a leading bank in Saudi Arabia
Who We Are Riyad Bank is a leading bank in Saudi Arabia Diverse business model that has succeeded through market cycles 1Q 2020 Key Metrics Third Largest Bank in Saudi Arabia SAR 280 Assets 341 Branches billion SAR 183 Loans 2,538 ATMs billion SAR 193 Deposits 55,987 Point of Sale billion Ratings 1Q
Slide 5: Riyad Bank continued to deliver strong financial performance during 1Q 2020
Overview Riyad Bank continued to deliver a strong financial performance during 1Q 2020 Six areas of focus on the following slides 1 2 Covid-19 update Transformation Plan Update Riyad bank precautionary measures to prevent spreading Retail Sales. the virus. Corporate Sales. Government stimulu
Slide 6: COVID-19 Update
Covid-19 update COVID-19 Update Supporting work continuity ,customers, employees, investors and communities during COVID-19 Work Continuity Employees Activated Business Continuity Committee headed by CEO. 7000+ Boxes safety distributed . Activated remote access to allow employees to work from home f
Slide 7: Government programs
Covid-19 update Government programs SAR 200+bn in combating adverse impact of Covid-19 on Saudi Economy Saudi Human Ministry of Saudi Arabian Monetary Authority (SAMA) Ministry of Finance Resources Interior Development Fund To Private sector To Banks To Economy To extend Iqama and SAR 5.3 bln visas
Slide 8: Four key pillars of Riyad Bank's Transformation
Transformation Program Four key pillars of Riyad Bank's Transformation The Bank is making significant progress on its transformation program 1 2 Retail Sales Corporate Sales Transformation Transformation To be the most innovative and trusted financial solutions 4 partner 3 Performance Culture Innova
Slide 9: Retail Sales Transformation
Retail Banking 1 Retail Sales Transformation Retail Banking started from a good challenger position. Significant improvement has been achieved with high upside potential Market Potential - KSA Retail Banking Good challenger position FY 2019 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Shar
Slide 10: Corporate Sales Transformation
Corporate Banking 2 Corporate Sales Transformation Corporate banking is in a strong starting position and has been delivering strong growth Market Potential - KSA Corporate Banking Strong starting position FY 2019 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % SABB 16.2% 35 ,000 3
Slide 11: Innovation
Innovation 3 Innovation We have been improving our digital capabilities that are delivering a better customer experience Digital Onboarding Growth % Trend during 1Q 2020 March 20 February 20 January 20 Innovation Priorities Key Achievements ◼ To acquire new-to-bank customers through end-to-end ◼ Str
Slide 12: Performance Culture
Performance Culture 4 Performance Culture We are energising the entire organization to achieve our ambition Shifting the bank's culture requires closing three gaps Recent activities to improve performance culture Organizational Health Index (OHI) results More Performance Culture accountability Bette
Slide 13: 1Q 2020 Financial Results Overview
1Q 2020 Financial Results Overview Public
Slide 14: 1Q 2020 Key Highlights
Financial results overview 1Q 2020 Key Highlights 1Q 2020 Vs 1Q 2019 16.8% 15.5% 9.8% 11.2% 22.3% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits 0.9% 10.0% 16.2% 11.8% • Increase in Credit related impairment by 87% mainly due to Income in
Slide 15: Financial Highlights – Balance Sheet
Financial results overview Financial Highlights – Balance Sheet Strong balance sheet growth, principally driven by loans and advances in targeted segments Highlights Total Assets Growth Drivers (SARbn) ◼ Total assets increased by 17% YoY principally from a 16% +5% increase in net loans and advances.
Slide 16: Assets & Lending
Financial results overview Assets & Lending Strong loan growth mainly driven by commercial and mortgage loans Highlights Total Assets Mix (SARbn) Cash & Balances ◼ Total loans increased by 16% YoY comprised of increase in Other Assets, Net with SAMA 4% 8% commercial and consumer loans by 11% and 26%
Slide 17: Liabilities and Funding
Financial results overview Liabilities and Funding Continued strong growth in non-commission bearing deposits and progressively optimizing the bank’s cost of funds Highlights Total Liabilities Mix (SARbn) Due to Banks & Other Liabilities, Net Other Financial ◼ Total customer deposits YoY increased b
Slide 18: Financial Highlights – Income Statement
Financial results overview Financial Highlights – Income Statement Strong earnings growth driven by income growth and positive jaws, partially offset by increased impairment charges Highlights Net Income before Zakat Growth Drivers by Segment (SARmn) ◼ Net income before Zakat grew by 1% YoY mainly d
Slide 19: Income Trends (1)
Financial results overview Income Trends (1) Income growth supported by strong balance sheet and non-funded income growth Highlights Total Operating Income Growth Drivers by Type (SARmn) ◼ Operating income grew by 12% YoY largely driven by 10% growth +12% in net special commission income supported b
Slide 20: Income Trends (2)
Financial results overview Income Trends (2) Record income growth supported by balanced business model Highlights Total Operating Income, Net (SARmn) +12% ◼ Total operating income grew by 12% YoY 2,670 2,763 2,705 2,885 ◼ Income growth was driven by: 2,383 2,580 > Retail banking (+14%) across both f
Slide 21: Expenses Trends
Financial results overview Expenses Trends Improved cost efficiency driven by income growth, despite continued investment in the Bank’s transformation program Highlights Operating Expenses Growth Drivers by Type (SARmn) +10% ◼ Operating expenses for 1Q 2020 decreased by 16% compared to 4Q 2019. 23 9
Slide 22: Credit Quality
Financial results overview Credit Quality Stable asset quality trends with strong NPL coverage ratio Cost of Risk (YTD %) Impairment Charge for Credit Losses, Net (SARmn) 0.71% 0.64% 0.67% +87% 0.59% 0.56% 0.53% 371 303 0.41% 283 190 170 162 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 9M 18 FY 18 1Q 19 1H 1
Slide 23: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth despite decreased CET1 ratio Highlights Capital Ratios (%) ◼ The CET1 and total capital adequacy ratios stood at 14.6% and 22.0% 18.8%, respectively. 18.4% 18.8% 20.0% 18.1% 17.9% 18
Slide 24: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels Highlights HQLA and Liquidity Coverage (SARbn/%) 80 400.0% ◼ Liquidity remains well within regulatory limits during 1Q 2020. 70 350.0% ◼ The liquidity coverage ratio stood at 168%. 60 52 300.0% 44 46 50 42 43 250.0%
Slide 25: Business Segments
Business Segments Elayll ehiy Se Public
Slide 26: Retail Banking (1)
Segmental Results –Retail Banking Retail Banking (1) Retail banking services a broad range of customers in KSA Retail Banking Business 1Q 2020 Operating Income 1Q 2020 Net Income Contribution by Segment Contribution by Segment ◼ Retail banking offers extensive financial services to customers Retail
Slide 27: Retail Banking (2)
Segmental Results –Retail Banking Retail Banking (2) Strong 1Q 2020 profit growth driven by balance sheet expansion and lower impairment Highlights Total Assets (SARbn) Total Liabilities (SARbn) ◼ 1Q 2020 net income increased by 35% YoY to SAR 339 million, +26% mainly driven by 16% net special commi
Slide 28: Corporate Banking (1)
Segmental Results – Corporate Banking Corporate Banking (1) Longstanding relationships with both government and corporate customers Corporate Banking Business 1Q 2020 Operating Income 1Q 2020 Net Income Contribution by Segment Contribution by Segment ◼ Historically strong corporate banking franchise
Slide 29: Corporate Banking (2)
Segmental Results – Corporate Banking Corporate Banking (2) Strong assets and liabilities growth in 1Q 2020 Highlights Total Assets (SARbn) Total Liabilities (SARbn) ◼ 1Q 2020 net income decreased by 23% to SAR 547 million mainly +13% +20% driven by 70% increase in impairment charge and 6% decrease
Slide 30: Treasury & Investments (1)
Segmental Results – Treasury & Investments Treasury & Investments (1) Manages the bank's investment portfolio, funding and liquidity and provides a wide range of products and hedging solutions to customers Treasury & Investments Business 1Q 2020 Operating Income 1Q 2020 Net Income Contribution by Se
Slide 31: Treasury & Investments (2)
Segmental Results – Treasury & Investments Treasury & Investments (2) Strong 1Q 2020 income and profit growth from Fee & Other Income Highlights Total Assets (SARbn) Total Liabilities (SARbn) ◼ Operating income increased by 31% YoY to SAR 686 million +14% +106% mainly driven by both higher net speci
Slide 32: Riyad Capital (1)
Segmental Results – Riyad Capital Riyad Capital (1) Riyad Capital is a leading investment bank in KSA Asset Management 1Q 2020 Operating Income Contribution by Segment Total AUM YTD (SARmn) ◼ Riyad Capital enjoys the full support and the benefits of being part Riyad of one of the largest financial g
Slide 33: Riyad Capital (2)
Segmental Results – Riyad Capital Riyad Capital (2) Asset Management business drives strong income and profit growth Highlights Total Assets (SARbn) Total Liabilities (SARbn) ◼ Riyad Capital grew its operating income by 45% YoY to SAR 154 +37% +37% million, mainly driven by fee income from the asset
Slide 34: Riyad Bank Guidance
Financial results overview Riyad Bank Guidance The bank is reviewing its 2020 guidance on the back of recent Covid-19 developments 2020 Guidance Guidance Metric FY 2019 Provided on Feb 1Q 2020 Current Status SAR174 Bn Low double SAR183 Bn Loans, Net digit (+15% YoY) (+5% YTD) Under review % growth N
Slide 35: Appendix
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Slide 36: Riyad Bank Contact
Riyad Bank Contact Contact the investor relations for more information: Ibrahim Al-Muhanna Visit our Website https://www.riyadbank.com/en/about-us/investor-relations Telephone: +966 11 401 3030 Ext. 2499 E-mail: ibrahim.al-muhanna@riyadbank.com Address: Riyadh - Al Shuhada District Eastern ring road
Slide 37: Disclaimer
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 strategies, proje