Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — Q3 2025 Earnings Presentation
29 slides from Al Rajhi Bank's earnings presentation, 2025
Slide 1: Al Rajhi Bank Results Presentation
Al Rajhi Bank Results Presentation 3Q 2025 Earnings Conference Call and Webcast
Slide 2: 3Q 2025 Earnings Call
3Q 2025 Earnings Call 03 3Q 2025 Results Summary 04 Harmonize The Group – Strategy Update 05 3Q 2025 Financial Highlights 18 FY 2025 Guidance 22 ESG Highlights 24 KSA’s Macro-Economic Environment 27 IR Contact Information 3Q2025 Results Presentation 2
Slide 3: 3Q 2025 Results Summary
3Q 2025 Results Summary | Results were above expectations in the first nine months of 2025 9.0% YTD Growth in financing portfolio 8.3% Growth in liabilities LDR below regulatory minima 8.7% YTD Balance Net Financing Total Liabilities Loan to Deposit Ratio Sheet Growth 693.4bn +9.0% 756.0bn 851.2bn +
Slide 4: Harmonize the Group: Highlights on our strategy performance
“Harmonize the Group” | Highlights on our strategy performance Business to Business to Support Digital & Data Consumer Business Businesses Leverage customer Become ‘main bank’ Centralization Expand digital base via cross-sell of large corporates and standardization capabilities Group-wide % of custo
Slide 5: 3Q 2025 Financial Highlights
3Q 2025 Financial Highlights
Slide 6: Balance Sheet Trends (1)
Balance Sheet Trends (1) | Total assets growth of 17.4% YoY and 8.7% YTD Total Assets (SARbn) SAR (mn) 3Q 25 2Q 25 QoQ 4Q 24 YTD +17.4% 1,400 Cash & balances with SAMA 57,302 50,149 +14% 53,245 +8% 1,039 1,059 Due from banks & other FI 31,122 30,434 +2% 19,530 +59% 1,200 974 1,023 1,000 903 Investme
Slide 7: Balance Sheet Trends (2)
Balance Sheet Trends (2) | Financing growth driven by Corporate and Mortgage Financing, Net (SARbn) Movement in Financing (SARbn) 700 1,000 +16.5% 600 +9.0% 756.0 693.4 52.9 36.8 13.8 756.0 500 800 649.0 39.1 11.6 0.5 34.9 1.2 693.4 1.3 400 177.8 214.6 (0.1) 0.7 600 161.7 300 400 200 200 451.8 475.2
Slide 8: Balance Sheet Trends (3)
Balance Sheet Trends (3) | Investments have grown significantly supporting our portfolio diversification Investments, Net (SARbn) Investments, Net (SARbn) +11.2% +11.2% 250 250 200 175.0 178.8 200 175.0 178.8 160.8 160.8 8.3 11.8 13.4 8.3 11.8 13.4 7.1 7.8 9.5 22.4 7.8 22.1 9.5 7.1 150 150 15.0 23.1
Slide 9: Net Income Trends
Net Income Trends | Outstanding net income with a 29.6% growth YoY in 9M 2025 Net Income For The Period After Zakat (SARmn) SAR (mn) 9M 25 9M 24 YoY 3Q 25 3Q 24 YoY +24.6% Net financing & investment income 21,696 17,902 +21% 7,294 6,397 +14% 10,000 8,000 Fee from banking services, net 4,315 3,404 +2
Slide 10: Operating Income Trends
Operating Income Trends | Higher operating income driven by net yield and fee income growth Total Operating Income (SARmn) Total Operating Income Growth Drivers By Type (SARmn) 16,000 +17.1% +23.1% 35,000 14,000 30,000 12,000 9,882 910 147 528 28,685 9,200 9,603 3,794 8,750 25,000 8,439 23,305 10,00
Slide 11: Expenses Trends
Expenses Trends | Cost efficiencies remains solid with a market leading cost to income ratio of 22.5% Operating Expenses (SARmn) Operating Expenses Growth Drivers By Type (SARmn) +7.1% 3,500 6,000 +8.9% 3,000 5,000 2,088 2,143 2,216 315 27 6,447 2,070 2,050 185 2,500 5,920 4,000 2,000 3,000 1,500 2,
Slide 12: Net Impairment & Cost of Risk
Net Impairment & Cost of Risk | Higher gross charge due to Financing portfolio growth with a maintained CoR Net Impairment Charges (SARmn) Cost of Risk (%) 1,250 -17.2% 0 1,050 0 688 850 553 600 570 0 0.33% 0.32% 0.29% 0.31% 0.31% 525 650 0 450 0 250 50 (0) 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 9M 24 FY 24
Slide 13: Asset Quality Trends (1)
Asset Quality Trends (1) | Asset quality remains healthy Movement in NPL (SARmn) NPL Formation (SARmn) 9,000 5,000 +8.9% 8,000 +8.9% 4,107 5,810 7,000 5,334 4,000 87 6,000 389 5,810 5,334 5,000 3,000 4,000 2,000 3,000 2,000 1,000 (3,632) 1,000 0 0 4Q 24 Retail Non-Retail 3Q 25 4Q 24 Write off Netflo
Slide 14: Asset Quality Trends (2)
Asset Quality Trends (2) | Healthy stage coverage reflecting prudent risk management ECL by Stage (SARmn) Movement in ECL by Group (SARmn) 8,784 12,000 8,505 10,000 8,608 +2.1% 10,000 8,000 6,000 4,143 4,324 4,399 8,000 8,608 181 8,784 6,000 (4) 1,832 1,653 4,000 1,699 4,000 2,000 2,633 2,482 2,732
Slide 15: Liquidity Trends
Liquidity Trends | Liquidity remains comfortably within regulatory requirements HQLA (SARbn) Loan to Deposits Ratio (SAMA) (%) -6.6% Regulatory 180 1 160 Maximum 90% 131.0 128.1 85.5% 124.5 122.3 84.9% 1 120.7 82.5% 140 81.2% 120 1 78.3% 100 1 80 60 1 40 1 20 0 0 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 3Q 24
Slide 16: Capitalization Trends
Capitalization Trends | Capital position well above regulatory minima RWA (SARbn) Total Capital (SARbn) +16.0% +18.2% 900 200 800 670.2 611.4 46.1 141.5 577.8 700 47.0 123.6 150 47.0 17.1 119.7 9.3 600 10.5 5.6 9.8 6.0 500 100 400 554.0 607.0 132.2 521.0 118.0 300 200 50 113.7 100 0 0 3Q 24 4Q 24 3Q
Slide 17: Return Metrics
Return Metrics | Al Rajhi Bank’s returns remain industry-leading Return on RWA (%) Earnings per Share (SAR) 0 3 3.83% +21.7% 3.74% 3.78% 0 2 1.41 1.45 1.48 3.49% 1.22 1.29 3.45% 0 2 0 1 1 0 0 0 9M 24 FY 24 1Q 25 1H 25 9M 25 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 Return on Equity (%) Return on Assets (%) 0 0
Slide 18: FY 2025 Guidance
FY 2025 Guidance
Slide 19: FY 2025 Assumptions and Outlook
FY 2025 Assumptions and Outlook | Interest rates are expected to drop by the end of 2025 • Saudi real GDP is estimated to improve by 3.9% in Q2 2025 driven by 4.6% higher non-oil activities • IMF has revised Saudi GDP growth forecasts to 4.0% in 2025 and projected the same for 2026 Economy • Consume
Slide 20: FY 2025 Guidance
FY 2025 Guidance | For our strategy “Harmonize the Group“ FY 2025 Guidance 9M 2025 Actual Guidance Revision Balance Sheet Financing High single digit +9.0% High single digit Net profit margin +0 bps to +10 bps -4 bps -5 bps to +5 bps Profitability Cost to income ratio Below 23.5% 22.5% Below 23.0% R
Slide 21: Q&A
Q&A
Slide 22: ESG Highlights
ESG Highlights
Slide 23: ESG Highlights | 3Q 2025
ESG Highlights | 3Q 2025 +200 USD 5.7 bn Scholarships to Orphan ISO/DIS 37301:2020 Green syndicated loan students to join Compliance Universities Started using solar +39k ISO 22301:2019 energy system in 61 Families have been benefited from the USD 1.0bn Business Continuity branches to reduce Social
Slide 24: KSA's Macro-Economic Environment
KSA’s Macro–Economic Environment
Slide 25: KSA Economic Outlook
KSA Economic Outlook | Economic conditions remain positive for the Kingdom GDP Growth/Brent Oil Price Highlights 99.0 • Saudi GDP is expected to increase by 3.9% in Q2 2025 driven by higher 82.5 80.5 100.0 7.2 70.9 70.0 non-oil activities. 5.2 80.0 8.7 41.7 60.0 3.2 4.0 • Based on IMF forecasts, Sau
Slide 26: Banking Sector Highlights
Banking Sector Highlights | Banking system deposits continue growing by the third quarter 2025 Recent Developments SAMA LDR (%) & Bank Loans and Deposits (SARbn) 83.2% 81.4% 3,800 3,700 79.5% 81.5% 80.7% • Deposits have grown in the banking system by end of August 2025 align 80.0% 3,238 3,600 3,500
Slide 27: IR Contact Information
IR Contact Information
Slide 28: Additional Information
Additional Information | Contact investor relations for more information Sulaiman Alquraishi Mohammed M. Alqahtani +966 (11) 828 1987 +966 (11) 828 1921 Alquraishis@alrajhibank.com.sa AlqahtaniM-M@alrajhibank.com.sa Aishah Alshammari Investors Relations +966-11-828-1973 Al-shammariAK@alrajhibank.com
Slide 29: 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