Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — Q1 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 1Q 2025 Earnings Conference Call and Webcast
Slide 2: 1Q 2025 Earnings Call
1Q 2025 Earnings Call 03 1Q 2025 Results Summary 04 Harmonize The Group – Strategy Update 05 1Q 2025 Financial Highlights 18 FY 2025 Guidance 22 ESG Highlights 24 KSA’s Macro-Economic Environment 27 IR Contact Information 1Q2025 Results Presentation 2
Slide 3: 1Q 2025 Results Summary
1Q 2025 Results Summary | Results were exceptional for the first quarter 2025 4.2% YTD Growth in financing portfolio 4.4% Growth in liabilities LDR below regulatory minima 5.0% YTD Balance Net Financing Total Liabilities Loan to Deposit Ratio Sheet Growth 693.4bn +4.2% 722.8bn 851.2bn +4.4% 889.0bn
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: 1Q 2025 Financial Highlights
1Q 2025 Financial Highlights
Slide 6: Balance Sheet Trends (1)
Balance Sheet Trends (1) | Total assets growth of 22.4% YoY and 5% YTD, surpassing “1 Trillion” by the first quarter 2025 Total Assets (SARbn) SAR (mn) 1Q 25 4Q 24 QoQ 1Q 24 YoY 1,400 +22.4% Cash & balances with SAMA 65,077 53,245 +22% 43,171 +51% 1,200 Due from banks & other FI 20,978 19,530 +7% 8,
Slide 7: Balance Sheet Trends (2)
Balance Sheet Trends (2) | Financing growth driven by Corporate and Mortgage Financing, Net (SARbn) Movement in Financing (SARbn) +18.7% +4.2% 1,000 600 693.4 722.8 41.8 2.7 722.8 500 16.7 800 609.0 39.1 693.4 8.9 1.2 31.1 1.2 1.3 400 177.8 194.5 600 143.3 1.9 300 (0.1) 400 200 200 432.8 475.2 485.3
Slide 8: Balance Sheet Trends (3)
Balance Sheet Trends (3) | Investments have grown significantly supporting our portfolio diversification Investments, Net (SARbn) Investments, Net (SARbn) +25.2% +25.2% 250 250 200 175.0 177.9 200 175.0 177.9 142.1 11.8 13.0 142.1 11.8 13.0 150 6.8 15.0 7.8 15.0 8.0 150 6.8 22.4 7.8 21.1 8.0 19.8 5.
Slide 9: Net Income Trends
Net Income Trends | highest-ever quarterly net income with a 34.1% growth YoY Net Income For The Period After Zakat (SARmn) SAR (mn) 1Q 25 1Q 24 YoY 1Q 25 4Q 24 QoQ 10,000 +34.1% Net financing & investment income 7,097 5,647 +26% 7,097 6,941 +2% 8,000 Fee from banking services, net 1,373 1,039 +32%
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) 12,000 14,000 12,000 +27.3% 10,000 +27.3% 334 34 152 9,200 8,750 9,200 1,450 8,439 10,000 8,000 8,000 7,229 7,637 7,229 6,0
Slide 11: Expenses Trends
Expenses Trends | Cost efficiencies remains solid with a market leading cost to income ratio of 22.7% Operating Expenses (SARmn) Operating Expenses Growth Drivers By Type (SARmn) 3,500 2,000 3,000 +10.3% +10.3% 2,070 2,088 88 22 2,088 1,500 2,050 2,500 1,894 1,956 85 2,000 1,894 1,000 1,500 1,000 50
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 1,050 +24.6% 0 0 850 688 553 525 0.33% 0.32% 0.29% 0.28% 0.28% 0 650 421 455 0 450 250 0 50 (0) 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 1Q 24 1H 24
Slide 13: Asset Quality Trends (1)
Asset Quality Trends (1) | Asset quality remains healthy Movement in NPL (SARmn) NPL Formation (SARmn) 4,500 8,000 4,000 +1.3% 7,000 +1.3% 5,334 1,426 5,405 3,500 5,334 377 5,405 6,000 3,000 5,000 2,500 4,000 (306) 2,000 3,000 1,500 2,000 1,000 (1,355) 1,000 500 0 0 4Q 24 Retail Non-Retail 1Q 25 4Q
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) 12,000 8,505 10,000 8,291 8,253 10,000 -0.5% 8,000 8,000 3,926 4,324 8,291 866 8,253 6,000 4,207 6,000 (904) 4,000 1,704 1,699 1,454 4,000 2,000 2,661 2,593 2,00
Slide 15: Liquidity Trends
Liquidity Trends | Liquidity remains comfortably within regulatory requirements HQLA (SARbn) Loan to Deposits Ratio (SAMA) (%) +18.1% Regulatory 180 1 160 Maximum 90% 131.0 128.1 124.5 85.5% 84.9% 1 140 121.1 120 105.4 1 78.7% 79.7% 78.3% 100 1 80 60 1 40 1 20 0 0 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 1Q 24
Slide 16: Capitalization Trends
Capitalization Trends | Capital position well above regulatory minima RWA (SARbn) Total Capital (SARbn) 900 200 800 +18.6% +21.1% 651.1 700 611.4 56.2 134.4 549.0 47.0 123.6 150 47.0 110.9 600 21.2 5.4 500 10.5 5.6 400 8.2 100 5.6 554.0 573.8 118.0 129.0 300 200 493.8 50 105.3 100 0 0 1Q 24 4Q 24 1Q
Slide 17: Return Metrics
Return Metrics | Al Rajhi Bank’s returns remain industry-leading Return on RWA (%) Earnings per Share (SAR) 3 0 +34.7% 0 3.74% 2 1.41 3.49% 2 1.22 1.29 3.45% 1.12 0 1.05 3.35% 3.30% 1 0 1 0 0 0 1Q 24 1H 24 9M 24 FY 24 1Q 25 1Q 24 2Q 24 3Q 24 4Q 24 1Q 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 continue downward trend during 2025 • Saudi real GDP is expected to improve by 1.3% in 2024 driven by 4.3% higher non-oil activities • IMF has revised Saudi GDP growth forecasts to 3.0% in 2025 and projected 3.7% for 2026 Economy • Con
Slide 20: FY 2025 Guidance
FY 2025 Guidance | For our strategy “Harmonize the Group“ FY 2025 Guidance 1Q 2025 Actual Guidance Revision Balance Sheet Financing High single digit +4.2% High single digit Net profit margin +5 bps to +15 bps +3 bps +5 bps to +15 bps Profitability Cost to income ratio Below 24.5% 22.7% Below 23.5%
Slide 21: Q&A
Q&A
Slide 22: ESG Highlights
ESG Highlights
Slide 23: ESG Highlights | 1Q 2025
ESG Highlights | 1Q 2025 +200 USD 4.6 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 +24k ISO 22301:2019 benefited from the Employees across the Business Continuity branches t
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 1.3% in 2024 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 • Based on IMF forecasts, Saudi’s GD
Slide 26: Banking Sector Highlights
Banking Sector Highlights | Banking system deposits continue growing by the first quarter 2025 Recent Developments SAMA LDR (%) & Bank Loans and Deposits (SARbn) 79.5% 81.5% 80.7% 83.2% 2,956 81.7% 2,796 3,000 Deposits have grown in the banking system by end of Feb 2025 align with 2,692 2,900 • 80.0
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