Riyad Bank · TADAWUL:1010
Riyad Bank — Q3 2021 Earnings Presentation
28 slides from Riyad Bank's earnings presentation, Nov 8, 2021
Slide 1: Results Presentation Q3 2021 Earnings Call
Results Presentation Q3 2021 Earnings Call Tareq Al Sadhan, Chief Executive Officer Abdullah Al Oraini, Chief Financial Officer Riyadh, 8th November 2021 1 General Business
Slide 2: Riyad Bank is the third largest bank in Saudi Arabia
Riyad Bank at glance Riyad Bank is the third largest bank in Saudi Arabia Q3 2021 Key Metrics Third Largest Bank in Saudi Arabia Riyad Bank Presence SAR London Singapore 319 bn in Assets 341 Branches (Licensed) 1 Branch 1 Rep Office SAR 210 bn in Loans, Net 2,285 ATMs SAR 204 bn in Deposits 118,765
Slide 3: Management highlights Q3 2021 snapshot
Riyad Bank at glance Management highlights Q3 2021 snapshot Activated a new phase of the transformation 2025. Strategy – Value through innovation. – Enablement through next gen operating model. – Efficiency through digitization. Net loans grew by 10.3% YoY to SAR 210 billion. Total Deposits gr
Slide 4: KSA Macroeconomic Environment
KSA Macroeconomic Environment 4 General Business
Slide 5: Domestic economy 1/2
KSA Macroeconomic environment Domestic economy 1/2 Key Highlights Gross Domestic Product (GDP) is on the path of recovery across sectors in 2021. Real GDP is projected to increase by 4.8% and 4.3% in the third and fourth quarters of 2021, respectively. PMI recorded 58.6 in September 2021 compare
Slide 6: Domestic economy 2/2
KSA Macroeconomic environment Domestic economy 2/2 Key Highlights Tadawul Index have been increasing since the start of the year, approaching 12,000 pts for the first time since 2006, while oil prices have been rallying to reach $75 per barrel for the first time since 2014. Money Supply M3 has e
Slide 7: Vision 2030 initiatives
KSA Macroeconomic environment Vision 2030 initiatives Riyad Bank is fully committed to the success of the national agenda The initiatives contribute to … 96 KPIs of the Saudi vision 2030 # of MOUs signed • • • Program 100% Program 90% Agency program 25 29th Apr 2021 KPIs • Tourism Partnership Progra
Slide 8: Strategy Update
Strategy Update 8 General Business
Slide 9: Structural and recent shifts in the industry require us to chart a new course
Strategy Update Structural and recent shifts in the industry require us to chart a new course for the Bank Imperative to renew Recent Increasing customer Depressed demand and Growing competitive effort to reinforce our expectations around digital compressed margins intensity with recent competitive
Slide 10: Delivered across 3 areas to become the Best Bank in KSA
Strategy Update ... Which will be delivered across 3 areas and support our aspiration to become the Best Bank in KSA Value through innovation Creating new markets through digital eco-systems, disrupting me-too propositions, integrating Advanced Analytics into BAU Strategic Accelerate Efficiency thro
Slide 11: Financial Results Overview
Financial Results Overview 11 General Business
Slide 12: 9M 2021 key highlights
Financial results overview 9M 2021 key highlights 9M 2021 Vs. 9M 2020 3.3% 10.3% 4.4% 1.3% 9.7% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits Credit related impairment 14.9% 0.7% 7.0% 2.4% decreased by 53.9% . Income Statement Cost o
Slide 13: Financial highlights – Balance Sheet
Financial results overview Financial highlights – Balance Sheet Stable growth in balance sheet footing supported by continued growth in loans partially offset by placements Total Assets Growth Drivers (SARbn) QoQ % YoY % SAR (mn) 3Q 2021 2Q 2021 3Q 2020 change change +3% 310 1 19 319 Cash and balanc
Slide 14: Assets & Lending
Financial results overview Assets & Lending Loan growth mainly driven by commercial and mortgage loans Loans & Advances Growth Drivers (SARbn) Mortgages Loans, Gross (SARbn) +22% +10% 42 45 39 41 10 11 0 210 36 37 191 0 (2) Q4-20 Overdrafts Credit Consumer Commercial Other Q3-21 Q2-20 Q3-20 Q4-20 Q1
Slide 15: Liabilities and Funding
Financial results overview Liabilities and Funding Stable funding profile Customer Deposits Growth Drivers (SARbn) Total Liabilities Mix (SARbn) 0% 203 1 4 1 204 7% 2% 16% (5) SAR 273 Bn Q4-20 Demand Savings Time Other Q3-21 75% Total Customer Deposits by Type (SARbn) 0% Due to Banks & Other Financi
Slide 16: Financial highlights – Income Statement
Financial results overview Financial highlights – Income Statement Net income growth due to higher operating income and lower impairment charges Net Income before Zakat Growth Drivers by Segment (SARmn) SAR (mn) +15% Net special commission income 6,224 6,178 +0.7% 1,982 2,146 -7.7% Fee and other inc
Slide 17: Income trends
Financial results overview Income trends Stable income growth supported by growth in loans and investments Total Operating Income, Net (SARmn) Total Operating Income Growth Drivers by Segment (SARmn) +2% 0% 8,415 72 107 147 8,619 2,821 2,790 2,824 2,978 2,817 2,709 (122) 9M-20 Retail Corporate Treas
Slide 18: Expenses Trends
Financial results overview Expenses Trends Continued investment in the bank’s transformation program while seizing cost efficiency opportunities Operating Expenses (SARmn) Operating Expenses Growth Drivers by Type (SARmn) +13% +12% 958 982 1,012 1,008 861 890 6 210 3,002 2,676 113 (3) Q2-20 Q3-20 Q4
Slide 19: Credit Quality
Financial results overview Credit Quality Stable asset quality trends with strong NPL coverage ratio Impairment Charge for Credit Losses, Net (SARmn) Cost of Risk (YTD %) -70% 1.07% 648 0.95% 0.96% 570 466 0.50% 0.48% 0.40% 249 229 139 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 H1-20 9M-20 FY-20 Q1-21 H1-2
Slide 20: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) Capital Ratios (%) +7% 51 54 55 44 44 46 19.7% 19.3% 19.3% 0.20 19.1% 17.8% 18.5% 7 10 9 Q4-20 Q2-21 Q3-21 16.5% Common equity tier 1 capital Tier 2 capital 0.
Slide 21: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 62 103.2% 55 0.104 101.1% 50 51 52 52 0.102 98.9% 0.100 200% 0.098 94.8% 190% 181% 94.2% 99.0% 176% 168% 0.09693.8% 160% 97.0% 0.094 0.092 94.8% 0.09
Slide 22: 2021 Outlook
2021 Outlook 22 General Business
Slide 23: 2021 Guidance
2021 Outlook 2021 Guidance Riyad Bank guidance Guidance Metric FY 2020 2021 Updated Guidance 9M 2021 Actual High single digit %- low SAR191 Bn Loans, Net (+10% YoY) double digit % 10.3% growth NSCI Margin (%) 3.13% -10bps to -20bps 3.01% Cost to Income (%) 32.4% Below 34% 34.8% . Cost of Risk (%) 1.
Slide 24: Appendix
Appendix 24 General Business
Slide 25: ESG Focus
ESG Focus Riyad banks’ commitment to Environmental, Social and Governance (ESG) factors, started well before global trends With Bukra, the Bank is targeting the following UNSDGs: “Bukra”, a comprehensive and long-term corporate social responsibility strategy, is aligned with the best practices of th
Slide 26: Government programs
KSA Macroeconomic environment Government programs SAR 290+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 extend Iqama and To Private sector To Banks To Economy SAR
Slide 27: Riyad Bank Contact
Appendix Riyad Bank Contact Contact the investor relations for more information: Ibrahim Al-Muhanna Visit our Website Head of Investor Relations 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 - A
Slide 28: Disclaimer
Appendix 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 strategi