Riyad Bank · TADAWUL:1010
Riyad Bank — 9M 2023 Earnings Presentation
24 slides from Riyad Bank's earnings presentation, Nov 6, 2023
Slide 1: Earnings Presentation 9M 2023
Earnings Presentation 9M 2023 Riyad Bank - Earnings Presentation - 06/11/23 General Business 1
Slide 2: 9M 2023 Performance Highlights
Highlights Highlights / Strategy / Financials / Appendix 9M 2023 Performance Highlights Strong growth +10% 3.64% +22% 18.0% YTD YOY Loan Growth Margin Expansion Net Income Growth Profitability (ROAE before Zakat) Healthy & resilient 1.36% 127.9% 20.7% 82.0% financial position NPL Ratio NPL C
Slide 3: Strategy Update
Strategy Update Riyad Bank - Earnings Presentation - 06/11/23 General Business 3
Slide 4: We all know that Saudi Arabia and its Banking Landscape are transforming
Strategy Background Highlights / Strategy / Financials / Appendix We all know that Saudi Arabia and its Banking Landscape are transforming Sustainability Core component of banking operations and strategy Industry Evolution Customer expectations Growing competition (Fintechs/ M&A) Mortgage to
Slide 5: To stay ahead, Riyad Bank is transforming too
Strategy Summary Highlights / Strategy / Financials / Appendix To stay ahead, Riyad Bank is transforming too Enabled through Digitalization Innovation: Ecosystems, Fintech, Advanced Analytics Efficiency: Straight-Through-Processing, Distribution Next-gen operating model: Agile, IT Infrastructure Cor
Slide 6: We have already come a long way on this journey
Strategic Journey Highlights / Strategy / Financials / Appendix We have already come a long way on this journey Share Price (SAR) Key Aspirations Strategy Refine 2017: A bold new aspiration and strategy was developed to transform the bank and Refresh accelerate growth Strategy 2018: Balanced per
Slide 7: We build on our Corporate Banking DNA and continue to grow market share
Corporate Strategy Highlights / Strategy / Financials / Appendix We build on our Corporate Banking DNA and continue to grow market share Corporate Banking Market Share Strategic Priorites Riyad Bank is #2 Vision 2030 in KSA Corporate Banking Become the leading player in Vision 2030 projects, includi
Slide 8: We aim to capture market share across key Retail markets
Retail Strategy Highlights / Strategy / Financials / Appendix We aim to capture market share across key Retail markets Retail Banking Market Share Strategic Priorites Riyad Bank is #3 Mobile First in KSA Retail Banking Consolidate market share with distinctive mobile-first products Customer Acquisit
Slide 9: Riyad Bank aims to lead Saudi Arabia's digital banking evolution
Digital Strategy Highlights / Strategy / Financials / Appendix Riyad Bank aims to lead Saudi Arabia’s digital banking evolution Key Focus Areas Already launched What’s Next? Innovation AI-enabled Relationship Manager Center of Intelligence Next-gen Retail App transforming CX Workbench Home-ownership
Slide 10: Our ambition is to be the best Bank in KSA
Strategic Aspirations Highlights / Strategy / Financials / Appendix Our ambition is to be the best Bank in KSA Strategic Pillars Definition Focus Area Most Profitable Sustainable profit growth and returns to shareholders Profitability Growth Most Efficient Highest return on spend and Operational ope
Slide 11: 9M 2023 Financial Performance
9M 2023 Financial Performance Riyad Bank - Earnings Presentation - 06/11/23 General Business 11
Slide 12: Strong growth in profitability boosted by lending growth and improved margins
Financial Performance Summary Highlights / Strategy / Financials / Appendix Strong growth in profitability boosted by lending growth and improved margins Balance sheet Total Assets Loans & Advances Strong growth Net Income ROAE before Zakat expansion, in profitability (%) 3Q-23 9M-23 driven by l
Slide 13: Solid balance sheet expansion driven by balanced financing growth
Assets and Financing Highlights / Strategy / Financials / Appendix Solid balance sheet expansion driven by balanced financing growth Total Assets Movement YTD (SARbn) Consumer Gross Loans Growth Mortgages +5% 3Q-23 YTD 24.8 2.3 377.0 359.7 5.7 +10% (6.8) (8.6) Personal Loans 3Q-23 -20% -42% +11% +10
Slide 14: Which was funded mainly by interest bearing deposits while overall liquidity position remained comfortable
Liabilities, Funding and Liquidity Highlights / Strategy / Financials / Appendix Which was funded mainly by interest bearing deposits while overall liquidity position remained comfortable, leaving ample room for growth Total Liabilities Movement YTD (SARbn) NIBD % of Total (%) +5% 61.9% 4.4 1.6 319.
Slide 15: Lending growth and margin expansion from rising benchmark rates boosted NSCI
Net Special Commission Income and Margin Highlights / Strategy / Financials / Appendix Lending growth and margin expansion from rising benchmark rates boosted NSCI, though margin peaked in 1Q-23 from shifting deposit mix and higher funding costs NSCI (SARmn) NSCI Movement YoY (SARmn) +29% +29% 9,272
Slide 16: While fee & other income growth was muted as FX income was partly offset
Fee & Other Income Highlights / Strategy / Financials / Appendix While fee & other income growth was muted as FX income was partly offset by lower cards and capital markets income Fee & Other Income Movement YoY (SARmn) Quarterly Fee & Other Income (SARmn) +1% +6% 891 948 903 2,656 42 10 2,694 853 8
Slide 17: Positive jaws improve cost efficiency despite ongoing investments
Operating Expenses and Efficiency Highlights / Strategy / Financials / Appendix Positive jaws improve cost efficiency despite ongoing investments in infrastructure, digital capabilities, and strategic initiatives Expenses before Impairment Movement YoY (SARmn) Expenses before Impairments Composition
Slide 18: Cost of risk rose from efforts to boost coverage and manage NPLs proactively
Impairment Charge and Cost of Risk Highlights / Strategy / Financials / Appendix Cost of risk rose from efforts to boost coverage and manage NPLs proactively NPL Movement by Sector YTD (SARmn) NPL Coverage Ratio 3Q-23 -13% +15.9% YTD 4,244 356 127.9% 3,702 (472) Stage-wise ECL on Gross Loans, 3Q-2
Slide 19: Together these factors spurred strong growth in profitability and better returns
Net Income and Returns Highlights / Strategy / Financials / Appendix Together these factors spurred strong growth in profitability and better returns Net Income Movement YoY (SARmn) Total Operating Income 9M-23 +22% +21% YoY 2,072 38 6,091 SAR Million 11,967 4,991 (422) Net Operating Income Before
Slide 20: Supporting strong and stable capitalization well above regulatory minima
Capitalization Highlights / Strategy / Financials / Appendix Supporting strong and stable capitalization well above regulatory minima Total Regulatory Capital Movement YTD (SARbn) Risk Weighted Assets (SARbn) +3% +5% 6.1 308.4 310.4 312.7 321.0 325.1 65.4 0.0 67.3 8.3 7.1 6.6 5.2 8.9 21.4 13.8 13.5
Slide 21: With all KPIs within guidance
Guidance Highlights / Strategy / Financials / Appendix With all KPIs within guidance Guidance Metric FY 2022 Previous Guidance 9M 2023 Current Guidance Loans, Net SAR 242 bn (12% YoY) High Single to Low Double Digit SAR 267 bn High Single to Low Double Digit (+11% YoY) NSCI Margin 3.11% +40bps - +60
Slide 22: Appendix
Appendix Riyad Bank - Earnings Presentation - 06/11/23 General Business 22
Slide 23: Contact the investor relations for more information
Riyad Bank Contact Highlights / Strategy / Financials / Appendix Contact the investor relations for more information Institutional investor contact Visit our website for more information and to access our disclosures https://www.riyadbank.com/web/guest/about-us/investor-relations/financial-results T
Slide 24: Disclaimer
Highlights / Strategy / Financials / 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 th