Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — Q1 2024 Earnings Presentation
36 slides from Al Rajhi Bank's earnings presentation, 2024
Slide 1: Al Rajhi Bank Investor Presentation 1Q 2024
Al Rajhi Bank Investor Presentation 1Q 2024
Slide 2: 1Q 2024 Investor Presentation
1Q 2024 Investor Presentation 03 The World’s Leading Islamic Bank 12 Harmonize the group Strategy 14 KSA Macro-Economic Environment 17 1Q 2024 Financial Highlights 31 FY 2024 Guidance 34 IR Contact Information 1Q 2024 Investor Presentation 2
Slide 3: The World's Leading Islamic Bank
The World’s Leading Islamic Bank
Slide 4: Al Rajhi Bank | Islamic Banking, Everywhere
Al Rajhi Bank | Islamic Banking, Everywhere At a glance, 1Q 2024 Presence & Branches, 1Q 2024 100% 68% Jordan Kuwait Islamic CASA Customers 10 2 510 4,515 Branches ATMs 16.5 million 78% 94 : 6 628,485 142 NPS Digital : Manual 510 Remittance 13 POS Centers Saudi Arabia Malaysia Largest network in Sau
Slide 5: Top Facts About Al Rajhi Bank
Top 10 Facts About Al Rajhi Bank Largest Islamic Bank worldwide #1 Bank in KSA 1 (by Assets & Market Cap) 6 (by number of customers) #1 Retail Bank in Middle East #1 Distribution network in Middle East 2 (Retail Deposits & Income) 7 (by # of Branches, POS, ATMs, Remittance Centres) One of the highes
Slide 6: Robust balance sheet with 68% CASA deposits
The World’s Leading Islamic Bank | Robust balance sheet with 68% CASA deposits in the first quarter 2024 Total Assets (SARbn) Capital Ratios (%) +78.3% 0 1,000 808 836 0 762 21.4% 21.5% 20.2% 0 800 624 19.1% 20.3% 20.4% 0 469 17.5% 600 19.2% 18.0% 0 400 16.4% 17.0% 17.2% 0 15.8% 200 0 0 0 2020 2021
Slide 7: What sets Al Rajhi Bank Apart
What sets Al Rajhi Bank Apart | ARB has the largest retail banking business in the Middle East Market Share - Demand Deposits Market Share - Deposits 1 16.5 0 0 +169bps 0 +360bps 0 0 24.2% 24.6% 23.2% 25.9% 26.0% 23.0% 24.3% 25.2% 25.1% 0 0 19.4% Million 0 0 0 0 0 0 Active Customers 0 0 0 0 0 2020 2
Slide 8: Al Rajhi Bank's Leading Network
Al Rajhi Bank’s Leading Network | The Bank has the largest distribution network in Saudi Arabia #1 in Branches #1 in ATMs Market Share - Branches Market Share - ATMs -31bps 0 +34bps 0 0 0 29.6% 0 29.1% 0 0 27.0% 26.8% 26.8% 26.9% 26.7% 0 28.2% 28.5% 28.5% 0 0 0 0 0 0 0 0 0 0 0 0 2020 2021 2022 2023
Slide 9: Unique franchise with leading market share across key products
Al Rajhi Bank has a unique franchise | We maintain a leading market share across key products #1 in Personal Loans #1 in Auto Loans Market Share - Personal Loans Market Share - Auto Loans 1 1 1 -10bps 1 -500bps 44.6% 44.3% 1 51.8% 51.7% 41.0% 1 40.6% 40.5% 47.6% 0 1 43.7% 42.6% 0 0 0 0 0 0 0 0 0 202
Slide 10: Al Rajhi Bank Market Performance
Al Rajhi Bank Market Performance | ARB maintained its momentum and outperform its peer group • Share Price Performance Top 3 KSA Banks (Daily; Rebased to 100) RAJHI SNB Riyad TASI 31 Mar 2024 300 Key Metrics Closing Price SAR 82.3 250 Market Cap SAR 329 bn Market Cap / % Industry 32.5% Market Cap /
Slide 11: ESG Highlights
ESG Highlights 200 USD 2.6 bn Scholarships to Orphan ISO/DIS 37301:2020 Green syndicated loan students to join Compliance Universities Started using solar +39k energy system in 61 Families have been +21k ISO 22301:2019 benefited from the Employees across the Business Continuity branches to reduce af
Slide 12: Our new strategy "Harmonize the group"
Our new strategy “Harmonize the group”
Slide 13: "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 14: KSA's Macro-Economic Environment
KSA’s Macro–Economic Environment
Slide 15: KSA Economic Outlook
KSA Economic Outlook | Economic conditions remain positive for the Kingdom Highlights GDP Growth/Brent Oil Price 99.0 • GDP declined by 0.8% for the year 2023 driven by lower oil activities 87.0 82.5 100.0 7.2 70.9 64.4 80.0 • IMF revised Saudi’s GDP growth forecasts to 2.6% for 2024 and 5.2 8.7 est
Slide 16: Banking Sector Highlights
Banking Sector Highlights | Banking system deposits continue growing in the first quarter 2024 Recent Developments SAMA LDR (%) & Bank Loans and Deposits (SARmn) 79.5% 81.5% 80.7% 78.5% 75.0% 2,584 2,668 2,596 Deposits have grown in the banking system during the first quarter 2,800 • 80.0% 2,473 ali
Slide 17: 1Q 2024 Financial Highlights
1Q 2024 Financial Highlights
Slide 18: 1Q 2024 Results Summary
1Q 2024 Results Summary | Results are in line with expectations 2.5% YTD Growth in financing portfolio 3.8% Growth in liabilities LDR below regulatory minima 3.5% YTD Balance Net Financing Total Liabilities Loan to Deposit Ratio Sheet Growth 594.2bn +2.5% 609.0bn 701.3bn +3.8% 727.7bn 82.9% 78.7% FY
Slide 19: Balance Sheet Trends (1)
Balance Sheet Trends (1) | Balance sheet growth of 3.5% YTD driven by Financing and Investments Total Assets (SARbn) SAR (mn) 1Q 24 4Q 23 QoQ 1Q 23 YoY 1,200 +7.8% Cash & balances with SAMA 43,171 41,768 +3% 45,625 -5% Due from banks & other FI 8,913 9,507 -6% 13,010 -31% 1,000 801 808 836 776 785 I
Slide 20: Balance Sheet Trends (2)
Balance Sheet Trends (2) | Financing growth driven by Mortgage and Corporate Financing, Net (SARbn) Financing, Net Mix By Segment Retail Financing Mix By Segment (SARbn) (SARbn) Corporate +5.5% 850 Auto Loans SAR 143bn SME SAR 19bn 750 609.0 24% 577.0 594.2 31.1 SAR 31bn 4% Credit Cards 30.2 650 25.
Slide 21: Balance Sheet Trends (3)
Balance Sheet Trends (3) | Balance sheet shows improving funding mix Total Liabilities (SARbn) Total Customers' Deposits Mix By Total Liabilities Mix By Segment Type (SARbn) (SARbn) 1,000 +7.6% Treasury SAR 121bn Customers’ Time 701.3 727.7 Other 17% 676.6 32.8 Investments 800 32.3 27.2 SAR 196bn cu
Slide 22: Net Income Trends
Net Income Trends | net profit higher by 6.3% in the first quarter 2024 Net Income For The Period After Zakat (SARmn) SAR (mn) 1Q 24 1Q 23 YoY 1Q 24 4Q 23 QoQ Net financing & investment income 5,647 5,125 +10% 5,647 5,550 +2% 7,000 +6.3% 6,000 Fee from banking services, net 1,039 1,210 -14% 1,039 98
Slide 23: Operating Income Trends
Operating Income Trends | Higher operating income driven by net yield income growth Total Operating Income (SARmn) Total Operating Income Growth Drivers By Type (SARmn) +6.6% +6.6% 9,000 10,000 8,000 7,051 7,229 522 102 7,229 6,873 7,000 6,781 6,827 6,781 8,000 6,000 (171) (3) 6,000 5,000 4,000 4,00
Slide 24: Expenses Trends
Expenses Trends | Cost efficiencies remains solid Operating Expenses (SARmn) Operating Expenses Growth Drivers By Type (SARmn) 1,800 +5.2% +5.2% 3,000 1,600 2,500 1,998 87 1,400 1,840 1,860 1,894 27 1,894 2,000 1,800 1,200 1,800 1,000 1,500 800 (20) 600 1,000 400 500 200 0 0 1Q 23 2Q 23 3Q 23 4Q 23
Slide 25: Net Impairment & Cost of Risk
Net Impairment & Cost of Risk | Higher gross charge due to Financing portfolio growth Net Impairment Charges (SARmn) Cost of Risk (%) 850 750 +17.4% 0 650 0 550 406 421 379 0 359 360 0.25% 0.25% 0.25% 0.25% 0.28% 450 350 0 250 0 150 50 (0) 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 1Q 23 1H 23 9M 23 FY 23 1Q 24
Slide 26: Asset Quality Trends (1)
Asset Quality Trends (1) | Asset quality remains healthy with a high NPL coverage Movement in NPL (SARmn) NPL Formation (SARmn) 4,000 +10.0% 7,000 3,500 +10.0% 421 11 4,730 6,000 1,615 4,730 4,298 4,298 3,000 5,000 2,500 4,000 2,000 3,000 (1,183) 1,500 2,000 1,000 1,000 500 0 0 4Q 23 Retail Non-Reta
Slide 27: 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) 12,000 8,726 10,000 8,584 8,291 10,000 -3.4% 8,000 3,929 8,584 8,000 6,000 4,507 3,926 8,291 6,000 (161) (132) 1,773 4,000 1,695 1,704 4,000 2,000 2,882 2,524 2,
Slide 28: Liquidity Trends
Liquidity Trends | Liquidity remains comfortably within regulatory requirements HQLA (SARbn) Loan to Deposits Ratio (SAMA) (%) -13.6% Regulatory 160 1 126.7 131.3 Maximum 90% 122.0 140 1 87.8% 105.5 105.4 81.9% 82.9% 81.0% 120 100 1 78.7% 80 1 60 1 40 1 20 0 0 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 1Q 23 2Q
Slide 29: Capitalization Trends
Capitalization Trends | Capital position well above regulatory minima RWA (SARbn) Total Capital (SARbn) 800 +8.7% +5.3% 160 700 549.0 140 505.0 520.3 47.0 112.0 110.9 600 38.4 38.4 120 105.4 8.2 500 10.8 5.8 5.6 5.7 100 400 6.4 80 300 493.8 106.2 105.3 60 200 460.1 471.0 40 99.6 100 20 0 0 1Q 23 4Q
Slide 30: Return Metrics
Return Metrics | Al Rajhi Bank’s returns remain industry-leading Return on RWA (%) Earnings per Share (SAR) 2 +6.2% 0 2 0 1 0.99 0.99 0.99 1.05 0 0.98 1 1 0 3.31% 3.31% 3.26% 3.26% 3.30% 1 0 1 0 0 0 0 0 0 1Q 23 1H 23 9M 23 FY 23 1Q 24 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 Return on Equity (%) Return on Asse
Slide 31: FY 2024 Guidance
FY 2024 Guidance
Slide 32: FY 2024 Assumptions and Outlook
FY 2024 Assumptions and Outlook | Interest rates are expected to go lower by end of 2024 • Expansionary fiscal policy in 1Q 2024 increased to support funding for capital projects, as CAPEX grew by 33% YoY • IMF has revised Saudi GDP growth forecasts to 2.6% in 2024 and projected 6.0% for 2025 Econom
Slide 33: FY 2024 Guidance
FY 2024 Guidance | For our newly launched strategy “Harmonize the Group“ FY 2024 Guidance 1Q 2024 Actual Guidance Revision Balance Sheet Financing Mid single digit +2.5% Mid single digit Net profit margin +5 bps to +15 bps +3 bps +5 bps to +15 bps Profitability Cost to income ratio Below 27% 26.2% B
Slide 34: IR Contact Information
IR Contact Information
Slide 35: Additional Information
Additional Information | Contact investor relations for more information Mr. Safwan Alsulaimani +966 (11) 834 6626 AlsulaimaniSA@alrajhibank.com.sa Mr. Mohammed Alqahtani +966 (11) 828 1921 AlqahtaniM-M@alrajhibank.com.sa Alrajhi Mobile App Alrajhi Business App Alrajhi IR App Visit our website (here
Slide 36: 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