Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — Q3 2017 Earnings Presentation
21 slides from Al Rajhi Bank's earnings presentation, Dec 9, 2017
Slide 1: Investor Relations Presentation Q3 2017
Investor Relations Presentation Q3 2017
Slide 2: Table of Content
Table 1 2 KSA Fact Sheet Saudi Arabia 2030 Vision 3 4 of Content 3 Al Rajhi at a Glance 5 4 Recent International Recognition 6 5 Al Rajhi 2020 Strategy 7 6 Al Rajhi’s Stock Performance 8 7 Presence & Business Segments 9 8 Al Rajhi Position within the main Saudi Banks 10 9 Sustainable Growth in Our F
Slide 3: KSA Fact Sheet
KSA Fact Sheet Saudi Arabia holds 49% of the Saudi population one-fith of the world’s of 20.4 million is under proven oil reserves the age of 25, with a young It is the world’s largest producer population entering the workforce and exporter of petroleum for the first time The Kingdom is a member of th
Slide 4: Saudi Arabia 2030 Vision
Saudi Arabia 2030 Vision A Vibrant Society A Thriving Economy An Ambitious Nation • Increase Umrah capacity from • Lower unemployment from • Rise in Global Competitive- • Increase non-oil government 8 to 30M 11.6% to 7% ness Index from 25 to top 10 revenue from SAR 163B to 1T • Double the number of
Slide 5: Al Rajhi at a Glance
Al Rajhi at a Glance The Largest Customer Base in KSA 9 million The Largest Network in the Middle East 569 Branches 4,745 ATMs 73,812 POS 4 of every 10 transactions in KSA 70 million+ Transactions processed per month #1 Bank for Remittance in the region 21 million+ Remittances Liquid and Low cost of
Slide 6: Recent International Recognition
Recent International Recognition Global Awards Regional Awards Best Bank in Saudi Arabia - Best Bank in GCC - Fastest Growing Bank in KSA - Most Innovative Bank in KSA Best Financial Institution in Saudi Arabia Largest Bank in the world in terms of Sharia Assets - Strongest Islamic Retail Bank in th
Slide 7: Al Rajhi 2020 Strategy
Al Rajhi 2020 Strategy A E Execution Excellence Accelerate Growth Deliver Exceed Industry Become B C D Employer of Choice Digital Leadership Higher Engagement Best-in Class Customer Focus Most Recommended 7
Slide 8: Al Rajhi's Stock Performance
Al Rajhi’s Stock Performance Al Rajhi is the largest constituent in MSCI GCC Index Stock Performance - Sep 28, 2017 Float Adj Country Mkt Cap Index Closing Price (SAR) 65.92 TOP 10 CONSTITUENTS (USD Billions) Wt. (%) Sector AL RAJHI BANKING & INV SA 20.91 8.83 Financials Book Value (SAR) 32.99 SAUDI
Slide 9: Presence & Business Segments
Presence & Business Segments Kuwait Segments Contributions Jordan (7) (٢) To The Operating Income* Corporate Treasury 15% 9% Investment 3% Retail Saudi Arabia Malaysia 73% * For the Period 6M 2017 (Number of Branches) (569) (١٩) Retail Banking • Personal Finance Corporate • Transactional Banking Tre
Slide 10: Al Rajhi Position within the main Saudi Banks
Al Rajhi Position within the main Saudi Banks (As at September‘17) SAR Bn Assets SAR Bn Loans ١ ١ ٢ ٢ ٣ ٤٤٥ ٣ ٤ ٢٥٧ ٥ ٥ ٤ ٣٣٨ ٢٣٣ ١٤٢ ٢٢٩ ٢١٨ ٢٠٢ ١٢١ ١٢٩ SAR Bn Current Accounts SAR Bn Retail Loans ١ ١ ٢ ٢ ٢٤٨ ٣ ٥ 164 ٣ ٤ ٤ ٢٣٢ 89 ٥ ١٠٠ ٧٤ ٨٣ 41 19 12 10
Slide 11: Sustainable Growth in Our Financial Position
Sustainable Growth in Our Financial Position Assets Loans Deposits SAR Bn. SAR Bn. SAR Bn. 340 225 233 338 CAGR CAGR CAGR 6.2 % 316 6.9 % 210 5.4 % 273 270 258 308 206 256 280 187 232 267 172 221 2016 Q3 2016 Q3 2016 Q3 2015 2017 2015 2017 2015 2017 2012 2013 2014 2012 2013 2014 2012 2013 2014 Susta
Slide 12: The Financial Performance
The Financial Performance Income & Operating Costs Net Income SAR Mn. SAR Mn. Income Cost 8,126 7,885 7,438 27.0% 29.3% 33.1% 33.9% 32.4% 32.9% 7,130 6,836 ١٣,٩٨3 ١٣,٨٤5 ١٣,٦٦7 ١٣,٧٤6 15,284 6,668 11,706 4,949 ٣,٧٧9 ٤,٠٥7 ٤,٥١9 ٤,٦٥8 3,851 9M 2015 2016 2017 2013 2014 2012 201٣ 201٤ 201٥ 2016 9M-2017
Slide 13: Al Rajhi's Market Shares
Al Rajhi’s Market Shares Current Personal Mortgages Assets Deposit Accounts Loans Loans 15.3% 16.4% 23.9% 40.0% 23.7% 84.7% 60.0% 83.6% 76.1% 76.3% Auto Loans Corporate Loans Branches ATMs POSs 47.7% 52.3% 7.9% 75.7% 73.2% 73.9% 92.1% 24.3% 26.8% 26.1% AL Rajhi Competition 13
Slide 14: High NPL Coverage & Low NPL Ratio
High NPL Coverage & Low NPL Ratio 360% 2.1% 326% 2.0o% 1.9% 310% 1.7% 1.57% 1.51% 260% 1.5% 231% 1.24% 1.3% 210% 1.26% 196% 1.1% 177% 0.9% 160% 144% 0.73% 0.7% 137% 110% 0.5% 2012 2013 2014 2015 2016 Q3-2017 2012 2013 2014 2015 2016 Q3-2017 NPL Coverage % NPL % • Continuous improvement in bank’s ass
Slide 15: Al Rajhi Bank Strengths
Al Rajhi Bank Strengths The highest Non-Commission Bearing ROA% above the market Deposits % of Total Deposits within the market 2.62% 93.9% 1.97% 60.4% Al Rajhi Competition Al Rajhi Competition Net Commission Margin well above the market ROE% above the market 4.04% 16.88% 3.07% 13.10% Al Rajhi Compe
Slide 16: Outstanding Key Profitability Ratios
Outstanding Key Profitability Ratios ROA% ROE% The highest in the market The 2nd highest in the market 2.72% 19.84% 2.62% 16.88% 2.48% 17.01% 16.49% 2.33% 2.29% 16.11% 2013 2014 2015 2016 Q3-2017 2013 2014 2015 2016 Q3-2017 Net Commission Margin % Cost of Funds% The highest in the market The lowest i
Slide 17: Capital Strengths & Risk Management
Capital Strengths & Risk Management CAR (Tier I + II)% Loans/Deposits% (LDR%) The highest in the market 82.5% 21.98% 21.93% 86.3% 81.5% 20.83% 80.7% 19.60% 19.59% 80.4% 2013 2014 2015 2016 Q3-2017 2013 2014 2015 2016 Q3-2017 Liquidity Coverage Ratio % (LCR%) Cost of Risks% (COR%) 1.28% 233% 1.15% 21
Slide 18: Al Rajhi is rated by all major Rating Agencies
Al Rajhi is rated by all major Rating Agencies 2013 2014 2015 2016 2017 Moody’s A1 A1 A1 A1 A1 S&P A+ A+ A BBB+ BBB+ Fitch A+ A+ A+ A A- KSA Sovereign Aa3 Aa3 Aa3 A1 A1 Moody's KSA Sovereign AA- AA- A+ A- A- S&P • Al Rajhi Bank’s strong financial position and credit profile is endorsed by major Rati
Slide 19: Balance Sheet Summary
Balance Sheet Summary SAR - Millions Q3 2017 FY 2016 Growth % Q3 2016 Growth % Due From Banks & Other 21,228 26,579 -20.1% 16,840 26.1% Financial Institutions Investments 35,692 34,033 4.9% 33,753 5.7% Financing, net 233,181 224,994 3.6% 225,863 3.2% Total Assets 338,030 339,712 -0.5% 330,516 2.3% D
Slide 20: Statement of Income Summary
Statement of Income Summary SAR - Millions Income Statement 9M 2017 9M 2016 Variance % Net Yield Income 8,872 8,302 6.9% Fees from Banking Services 2,012 2,370 -15.1% Exchange & Other Income 822 857 -4.0% Total Operating Income 11,706 11,529 1.5% Total Operating Expenses 3,851 3,750 2.7% Income Befo
Slide 21: 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