Riyad Bank · TADAWUL:1010
Riyad Bank — FY2019 Earnings Presentation
24 slides from Riyad Bank's earnings presentation, Feb 3, 2020
Slide 1: Results Presentation FY 2019 Earnings Call
Riyad Bank Results Presentation - FY 2019 Results Presentation FY 2019 Earnings Call Tareq Al Sadhan, Chief Executive Officer Abdullah Al-Oraini, Chief Financial Officer Riyadh, 3 February 2020 Public
Slide 2: 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 FY2019 Key Metrics Third Largest Bank in Saudi Arabia SAR 266 Assets 341 Branches billion SAR 174 Loans 2558 ATMs billion SAR 195 Deposits 53,580 Point of Sale billion Ratings FY 1
Slide 3: Riyad Bank delivered a robust financial performance in 2019
FY 2019 Earnings Call Riyad Bank delivered a robust financial performance in 2019 Four areas of focus for today's earnings call 1 2 Transformation Plan Update Financial Performance Retail Sales. Net loans grew 15% YoY to SAR 174 billion. Corporate Sales. Total Deposits grew 15% YoY to SAR 19
Slide 4: 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 5: 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 9M 2019 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Shar
Slide 6: 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 9M 2019 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % 0.0 % 2.0 % 4.0 % 6.
Slide 7: Innovation
Innovation 3 Innovation We have been improving our digital capabilities that are delivering a better customer experience Digital Onboarding Growth % Trend during 4Q 2019 October 19 531% November 19 December 19 380% 285% 225% 185% 148% 23% 29% 36% Number of On-boarded Number of cash SADAD Bill Paymen
Slide 8: 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 9: FY 2019 Financial Results Overview
FY 2019 Financial Results Overview Public
Slide 10: FY 2019 Key Highlights
FY 2019 Key Highlights 2019 Vs 2018 15.6% 15.2% 11.2% 14.5% 10.5% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits 32.1% 18.2% 23.1% 19.5% • Net income after Zakat grew 81.2% due to impact of Zakat settlement in Income Q4 2019. Statement •
Slide 11: Financial Highlights – Balance Sheet
Financial results overview Financial Highlights – Balance Sheet Strong balance sheet growth from improved economic environment and focused execution of our transformation initiatives Highlights Total Assets Growth Drivers (SARbn) ◼ Total assets increased by 16% YoY in 2019 principally from a 15% +16
Slide 12: Assets & Lending
Financial results overview Assets & Lending Strong loan growth reflecting improved economic activities and focused execution of our transformation initiatives Highlights Total Assets Mix (SARbn) Cash & Balances Other Assets, Net with SAMA ◼ Total assets increased by 16% YoY principally from a 15% 2%
Slide 13: Liabilities and Funding
Financial results overview Liabilities and Funding Continued strong growth in non commission bearing deposits Highlights Total Liabilities Mix (SARbn) Due to Banks & Other Liabilities, Net Other Financial ◼ Total customer deposits increased by 15% in 2019, both Institutions 6% commission and noncomm
Slide 14: Financial Highlights – Income Statement
Financial results overview Financial Highlights – Income Statement Strong earnings growth driven by income growth from all business segments Highlights Net Income before Zakat Growth Drivers by Segment (SARmn) +32% ◼ FY 2019 Net income before Zakat increased by 32% YoY mainly driven by strong growth
Slide 15: Income Trends (1)
Financial results overview Income Trends (1) FY 2019 Income growth across all business segments Total Operating Income, Net (SARmn) Highlights +13% ◼ Total operating income grew by 20% YoY 2,580 2,670 2,763 2,705 2,281 2,383 ◼ Income growth was driven by: > Retail banking (+22%) across both fee and
Slide 16: Income Trends (2)
Financial results overview Income Trends (2) Income growth from strong balance sheet growth and margin expansion Highlights Total Operating Income Growth Drivers by Type (SARmn) ◼ FY 2019 operating income grew by 20% largely driven by 18% +20% growth in net special commission income. FY 2019 net int
Slide 17: Expenses Trends
Financial results overview Expenses Trends Improved cost efficiency driven by income growth, despite continued investment in the Bank’s transformation program Operating Expenses Growth Drivers by Type (SARmn) Highlights +10% ◼ Operating expenses for FY 2019 increased by 10% YoY to SAR 3,674 million.
Slide 18: Credit Quality
Financial results overview Credit Quality Stable credit quality trends Cost of Risk (YTD %) Impairment Charge for Credit Losses, Net (SARmn) 0.73% 0.71% 0.64% +116% 0.56% 0.59% 0.53% 335 0.41% 283 243 190 170 162 1H 18 9M 18 FY 18 1Q 19 1H 19 9M 19 FY 19 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 Annualize
Slide 19: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth Highlights Capital Ratios (%) ◼ The CET1 and total Capital Adequacy Ratios stood at 16.3% and 19.4% 18.8% 18.1%, respectively. 18.4% 18.4% 18.1% 18.1% 17.9% 18.1% ◼ Capital ratios im
Slide 20: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels Highlights HQLA and Liquidity Coverage (SARbn/%) 15% 80 40 0.0% ◼ Liquidity remains well within regulatory limits during 4Q 2019 70 35 0.0% ◼ The liquidity coverage ratio stood at 155% 60 30 0.0% 44 46 50 42 43 25 0
Slide 21: Riyad Bank Guidance
Financial results overview Riyad Bank Guidance Guidance Metric 2018 2019 Guidance FY 2019 2020 Guidance Low double SAR174 Bn Low double Loans, Net SAR 151 Bn digit (+15% YTD) digit % growth % growth NSCI Margin (%) 3.33% +10bps to 15bps 3.48% - 10bps to 15bps Cost to Income (%) 37.3% Below 35% 34.3%
Slide 22: Questions & Answers
Questions & Answers Q&A Public
Slide 23: Contact the investor relations for more information
Contact the investor relations for more information: https://www.riyadbank.com/en/about-us/investor-relations Telephone: +966114013030 Ext. 2499 E-mail: ibrahim.al-muhanna@riyadbank.com Address: Riyadh - Al Shuhada District Eastern ring road Granada Oasis -Tower (A1) P.O Box 22622 Riyadh 11416 Kingd
Slide 24: 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, projections, ant