Al Rajhi Bank · TADAWUL:1120

Al Rajhi Bank — 2Q 2019 Earnings Presentation

17 slides from Al Rajhi Bank's earnings presentation, 2019

  1. Slide 1: Al Rajhi Bank Results Presentation

    Al Rajhi Bank Results Presentation 2Q 2019 Earnings Conference Call and Webcast The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank 2Q 2019 Results Presentation

  2. Slide 2: Management Summary

    Management Summary 1H 2019 Highlights 'ABCDE' Strategy implementation is on track and continuing to deliver strong financial performance  Growth in mortgages, customers loans, and net profit margin Strategy  Improved customer service, digitization and new products all contributed to the bottom lin

  3. Slide 3: Strategy Overview

    Strategy Overview Pillars of the ABCDE 'Back to Basics' Strategy A B C D E Accelerate Become Employer Customer Digital Execution Growth of Choice Focus Leadership Excellence A B C D E Grow mortgage, private sector, Smartly expand channels & World-class Engaged workforce Update value propositions Key

  4. Slide 4: Strategy Update

    Strategy Update ABCDE 'Back to Basics' strategy delivered strong results in 1H 2019 A B C D E Accelerate Become Employer Customer Digital Execution Growth of Choice Focus Leadership Excellence 12.7% YoY operating income 13 new products launched to Al Rajhi Bank Academy 97K POS 253 Bots growth cater

  5. Slide 5: Zakat & Tax Accounting Policy Change

    Zakat & Tax Accounting Policy Change 1H 2019 profit growth of 8.3% after Zakat; 16.2% before Zakat Commentary Net Income Before Zakat Growth Drivers By Segment (SARmn)  Previously Zakat was recognized in the statement of changes in 5,000 equity under retained earnings, during 2Q 2019 the accounting

  6. Slide 6: Strong financial performance in 1H 2019

    Strong financial performance in 1H 2019 Key drivers of 1H 2019 net income growth of 8.3% YoY to SAR 5.2bn 12.7% total operating income growth driven by strong Improved operating efficiency by 70bps year-on-year to 31.3% growth on yield income (14.5%)(SARmn) (C/I ratio) 4,000 +36bps -7bps -20bps -230

  7. Slide 7: Strong 2Q 2019

    Strong 2Q 2019 2Q 2019 operating income of SAR 4.86bn and net income before Zakat of SAR 2.87bn Total Operating Income (SARmn) Net income Before Zakat for the period (SARmn) 5,00 0 4,500 6,000 +13.4% +11.6% 4,0 00 4,639 4,861 4,383 4,506 3,50 0 4,288 5,00 0 4,142 2,772 2,885 2,867 2,569 2,573 3,000

  8. Slide 8: Return Metrics

    Return Metrics 1H 2019 excellent first half of the year, leading to further improvement of our return profile Return on Equity (%) Return on Assets (%) 0.25 25.0 0% 2.68% 2.94% 2.84% 3.0 0% 20.72% 2.49% 0.0 3 2.29% 17.24% 19.82% 0.0 25 2.50 % 16.65% 0.2 20.00 % 16.11% 2.00% 0.0 2 0.15 15.00% 1.12% 1

  9. Slide 9: Balance Sheet Strength

    Balance Sheet Strength Balance Sheet growth was driven by 7.2% deposit growth YoY Total Customers' Deposits (SARbn) Financing, Net (SARbn) Capital Adequacy Ratio (%) 500 400 +7.2% 600 0 301 550 280 15 10 22.26% 20.54% 500 30 0 0 +5.3% 450 4 6 400 0 350 200 30 0 250 226.5 238.5 0 261 +9.0% 285 200 0

  10. Slide 10: Expenses Trends

    Expenses Trends YoY expense growth of 10.3%, but efficiency improved 240 bps on positive "jaws" Commentary  During the quarter, bank paid one off expenses pertaining to VAT penalty on housing loans, SAMA penalty and other one offs  Excluding these one offs, operating expenses growth would have bee

  11. Slide 11: Asset Quality Stable

    Asset Quality Stable Asset quality remains solid NPL Ratio Trends (%) NPL Coverage Ratio (%) 0 2.41% 4 1.88% 1.98% 1.92% 1.77% 0 4 1.30% 353% 0 3 342% 0.82% 0.96% 0.94% 0.85% 3 314% 0.83% 0 2 0 0.72% 2 231% 0 0 1 177% (0 ) 0.35% 0.36% 0.38% 0.34% 0.34% 0.35% 1 0 (0 ) 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q

  12. Slide 12: Capitalisation Trends

    Capitalisation Trends Rising profitability drives total capital higher Total Capital (SARbn) Commentary 120 100  Total Capital increased by 3.2% on rising profitability +3.2% 80  Capitalization remains strong with CAR of 20.5% and CET1 of 60 51 54 53 19.5% as at 30 June 2019 40 3 3 3 20 49 51 50 0

  13. Slide 13: Progress against guidance and outlook

    Progress against guidance and outlook Financing & income growth, efficiency and cost of risk in line with FY 2019 guidance FY 2018 1H 2019 Actual FY 2019 Guidance Balance Mid single digit Financing, Net (SAR bn) 231 239 (+2.9%) Sheet growth Net Profit Margin 4.75% 5.20% (+45 bps) +30 to +40 bps Prof

  14. Slide 14: Questions & Answers

    Questions & Answers The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank 2Q 2019 Results Presentation

  15. Slide 15: Appendix

    Appendix Additional Information The Blue Chip Islamic Bank Al Rajhi Bank The Blue Chip Islamic Bank 2Q 2019 Results Presentation

  16. Slide 16: Additional Information

    Additional Information Contact investor relations for more information Mr. Amr M. Sager Head of Investor Relations Tel: +966 (11) 828 1985 Email: sagera@alrajhibank.com.sa Al Rajhi Bank The Blue Chip Islamic Bank 16 2Q 2019 Results Presentation

  17. Slide 17: 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

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