Riyad Bank · TADAWUL:1010
Riyad Bank — Q1 2023 Earnings Presentation
26 slides from Riyad Bank's earnings presentation, 2023
Slide 1: Q1 2023 Results Presentation
Q1 2023 Results Presentation Riyad Bank Presenters: Mr. Tareq Al Sadhan, CEO Mr. Abdullah Al Oraini, CFO Dr. Naif Al Ghaith, Chief Economist Ms. Najla Al Mutairi, Head of IR Host: Mr. Faisal Potrik, Head of Research – Riyad Capital General Business
Slide 2: Bank Overview
Riyad Bank is the third largest bank in Saudi Arabia Riyad Bank presence China Soon To be the most innovative & trusted 6,933 Employees London financial solutions 31% Female employees 1 Branch Singapore 1 Rep Office partner Q1 2023 Key Metrics Assets Operating Income Cost / income Ratio Houston 1 Ag
Slide 3: Strategy Update
Structural and recent shifts in the industry require us to chart a new course for the Bank Strategy Increasing customer Depressed demand and Imperative to renew Growing competitive Refresh 1 expectations around 2 compressed margins 3 effort to reinforce our 4 intensity with recent digital sales and
Slide 4: Vision 2030 Initiatives
Vision 2030 initiatives RiyadBankisfullycommittedtothesuccessoftheNationalAgenda The initiatives contribute to 96 KPIs of the Saudi vision 2030 ▪ FinancialSupport ▪ Program 100% ▪ Future initiatives ▪ Financial Support ▪ Massar Business ▪ Developing Execution Tools ▪ InitiativeforNCPP ▪ Program 90%
Slide 5: ESG Highlights
From philanthropy to sustainability – ESG Highlights Embedding corporate responsibility and sustainability into the Bank’s strategy 750 M 214 Hours Ramadan campaign Riyad Bank provided 25,000 Updated guidelines to 15% Reduced electricity Bukra Ambassadors meet the needs of ISO/DIS 37301:2020 food ba
Slide 6: Economic environment
Economic environment 6 General Business
Slide 7: Global Economy
Global Slowdown is Expected in the Medium-Term IMF latest forecast shows global growth will drop to 2.8% this year before rising modestly to 3.0% in 2024. Global inflation will decrease, although more slowly than initially anticipated, from 8.7% in 2022 to 7.0 %this year and 4.9% in 2024. Global gro
Slide 8: Domestic Economy 1-2
Improved Supply Chains Helped Stabilize Inflation Headline inflation remains elevated and was driven mainly by an increase in housing rents which increased by 8.7% from a year earlier. However, improved supply chains have helped cool output prices for goods. CPI Inflation decelerated to 2.7% YoY in
Slide 9: Domestic Economy 2-2
Sustained Improvement in Business Performance in Q1 2023 Business conditions remain strongly positive during the first quarter of 2023 as improving market conditions helped to boost demand in the non-oil private sector. Both output and new orders have expanded sharply, adding pressure on capacity. R
Slide 10: Financial results overview
Financial results overview 10 General Business
Slide 11: Q1 2023 Key highlights
Q1 2023 Key highlights Q1 2023 Vs. Q1 2022 +9.2% +7.3% -7.4% +10.7% -1.6% Balance Sheet Total assets Loan and Investments, net Customer Demand & other advances, net deposits deposits +30.1% +44.8% -2.3% +30.1% ▪ Credit related impairment increased by 224.7% . Income Statement Net income ▪ Cost of Ri
Slide 12: Financial highlights – Balance sheet
Financial highlights – Balance sheet Stable balance sheet performance SAR (mn) Total Assets Growth Drivers (SARbn) Cash and balances with SAMA and +5.8% 63,644 53,980 +17.9% 47,729 +33.3% financial institutions 360 2.5 9.6 8.9 381 Investments, net 54,695 52,196 +4.8% 59,035 -7.4% Loans and advances,
Slide 13: Assets & lending
Assets & lending Loan growth mainly driven by Commercial and Mortgage loans Mortgage Loans, Gross (SARbn) Loans & Advances, Net Growth Drivers (SARbn) +4.0% +17.6% 242 0 3 7 0 252 56 58 60 51 54 0 48 Q4-22 Overdrafts Credit Consumer Commercial Other Q1-23 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Cards Lo
Slide 14: Liabilities and funding
Liabilities and funding Stable funding profile Customer Deposits Growth Drivers (SARbn) Q1 2023 Total Liabilities Mix (SARbn) +7.2% 5% 240 4 0 12 1 257 3% 13% SAR 325 Bn Q4-22 Demand Savings Time Other Q1-23 79% Total Customer Deposits by Type (SARbn) Financial highlights +10.8% 257 Due to Banks & O
Slide 15: Financial highlights – Income statement
Financial highlights – Income statement Net income growth mainly due to higher operating income SAR (mn) Net Income before Zakat Growth Drivers by Segment (SARmn) Net special commission income 3,088 2,852 +8.3% 2,132 +44.8% +29.1% Fee and other income 948 891 +6.4% 970 -2.3% 682 2,252 Total operatin
Slide 16: Income trends
Income trends Income growth supported by stable balance sheet growth Total Operating Income Growth Drivers by Segment (SARmn) Total Operating Income, Net (SARmn) +30.1% 578 4,036 +30.1% 3,102 460 (81) 4,036 (23) 3,525 3,742 3,102 3,230 2,949 Q1-22 Retail Corporate Treasury & Riyad Capital Q1-23 Inve
Slide 17: Expenses trends
Expenses trends Improved cost efficiency despite Banks’ investment in its Transformation Program Operating Expenses (SARmn) Operating Expenses Growth Drivers by Type (SARmn) +12.4% +12.4% 1,174 1,138 1,162 1,034 1,064 62 27 51 1,162 963 1,034 (12) Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Employee-
Slide 18: Credit quality
Credit quality Stable asset quality trends with solid NPL coverage ratio Impairment Charge for Credit Losses, Net (SARmn) Cost of Risk (YTD %) +293% 0.92% 581 378 0.44% 302 0.41% 0.39% 0.37% 244 204 0.26% 148 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 FY-21 Q1-22 H1-22 9M-22 FY-22 Q1-23 Annualized YTD Impa
Slide 19: Capitalization
Capitalization Capitalization well above regulatory minima and continues to support growth Capitalization (SARbn) Capital Ratios (%) +6.7% 60 65 64 22 21.1% 21 20.7% 48 50 49 19.5% 19.0% 19.2% 6 6 20 19.1% 9 3 9 9 19 18.1% Q1-22 Q4-22 Q1-23 18 17.8% 17 16.4% 15.8% 16.3% 16.0% Common equity tier 1 ca
Slide 20: Liquidity
Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) Loans to Deposit Ratios (%) 182% 187% 168% 172% 165% 157% 10.40102.7% 101.0% 102.4% 72 100.9% 101.0% 10.20 53 54 56 56 51 10.00 97.9% 9.80 9.60 98.6% 97.4% 97.7% 9.40 96.2% 94.9% 94.7% 9.20 Q4-21 Q1-22 Q2
Slide 21: Guidance
Guidance 21 General Business
Slide 22: 2023 Guidance
2023 Guidance Guidance Metric FY 2022 2023 Guidance Q1 2023 2023 Guidance (Revised) SAR 242 Bn SAR 252 Bn Loans, Net High Single to Low Double Digit High Single to Low Double Digit (+11.5% YoY) (+7.3% YoY) NSCI Margin (%) 3.11% +15 bps – +25 bps 3.72% +40 bps – +60bps Cost to Income (%) 32.4% Below
Slide 23: Q&A
RS oO eee oreoes * + &A ° ° seoeen woreees General Business
Slide 24: Appendix
Appendix 24 General Business
Slide 25: Riyad Bank contact
Riyad Bank contact Contact the investor relations for more information: Najla K. Al Mutairi Head of Investor Relations Annual 2022 Report Telephone: +966 11 401 3030 Ext. 2448 E-mail: najla.almutairi@riyadbank.com Address: Riyadh - Al Shuhada District Eastern ring road Granada Oasis -Tower (A1) P.O
Slide 26: 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