Riyad Bank · TADAWUL:1010
Riyad Bank — Q3 2019 Earnings Presentation
22 slides from Riyad Bank's earnings presentation, Oct 27, 2019
Slide 1: Results Presentation - 3Q 2019 Earnings Call
Riyad Bank Results Presentation - 3Q 2019 Results Presentation 3Q 2019 Earnings Call Tareq Al Sadhan, Chief Executive Officer Abdullah Al-Oraini, Chief Financial Officer Riyadh, 27 October 2019 Public
Slide 2: Riyad Bank delivered a robust financial performance in 9M 2019
3Q 2019 Earnings Call Riyad Bank delivered a robust financial performance in 9M 2019 Four areas of focus for today's earnings call 1 2 Transformation Plan Update Financial Performance Retail Sales Net loans grew 10% YTD to SAR 166 billion Corporate Sales Total Deposits grew 5% YTD to SAR 178
Slide 3: Four key pillars of Riyad Bank's Transformation
First Phase of the Transformation Program Four key pillars of Riyad Bank's Transformation To achieve the vision, the Bank is addressing gaps head-on 1 2 Retail Sales Transformation Corporate Sales Transformation To be the most innovative and trusted financial solutions partner 4 3 Innovation Perform
Slide 4: Retail Sales Transformation
Retail Banking 1 Retail Sales Transformation Retail Banking starts from a good challenger position and has significant upside potential Market Potential - KSA Retail Banking Good challenger position 1H 2019 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % 0.0 % 5.0 % 10 .0% 15 .0% 2
Slide 5: Corporate Sales Transformation
Corporate Banking 2 Corporate Sales Transformation Corporate banking is in a strong starting position with significant growth potential Market Potential - KSA Corporate Banking Strong starting position 1H 2019 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % 0.0 % 2.0 % 4.0 % 6.0 %
Slide 6: Performance Culture
Performance Culture 3 Performance Culture We are energising the entire organization to achieve our ambition Shifting the bank's culture requires closing three gaps Recent activities to improve performance culture Organizational Health Index (OHI) results More Performance Culture accountability Bette
Slide 7: Innovation
Innovation 4 Innovation We have been improving our digital capabilities that are delivering a better customer experience Digital Onboarding Growth % Trend during 3Q 2019 20 0% July 19 186% 18 0% Aug 19 Sept 19 16 0% 136% 140% 123% 14 0% 12 0% 95% 91% 81% 10 0% 63% 80 % 60 % 48% 40 % 20 % 0% Number o
Slide 8: 9M 2019 Key Highlights
9M 2019 Key Highlights 9M 2019 Vs 9M 2018 10.9% 14.1% 7.5% 11.6% 11.0% Balance Sheet Total assets Loan and advances, net Investments, net Customer deposits (NIBs)* *Demand & other deposits 66.1% 19.2% 29.3% 21.7% • Decrease in credit related impairments by 17.3% Income • Cost of Risk for the current
Slide 9: Financial Highlights – Balance Sheet
Financial results overview Financial Highlights – Balance Sheet Healthy balance sheet growth from improved economic environment and focused execution of our transformation initiatives Highlights Total Assets Growth Drivers (SARbn) 300 ◼ Total assets increased by 9% in 2019 YTD as principally from a
Slide 10: Assets & Lending
Financial results overview Assets & Lending Strong loan growth reflecting increased economic activities Highlights Total Assets Mix (SARbn) Cash & Balances with ◼ Total assets increased by 9% in 2019 YTD as principally from a 10% increase Other Assets, Net SAMA 3% 6% in net loans and advances ◼ The
Slide 11: Liability and Funding
Financial results overview Liability and Funding Continued strong growth in non commission bearing deposits Highlights Total Liabilities Mix (SARbn) Due to Banks & Other Other Liabilities, Net Financial Institutions ◼ Customer deposits increased by 5% in 2019 YTD from demand and other 6% 8% deposits
Slide 12: Financial Highlights – Income Statement
Financial results overview Financial Highlights – Income Statement 9M 2019 profit improvement driven by income growth and lower impairments Highlights Net Income before Zakat Growth Drivers by Segment (SARmn) ◼ 9M 2019 Net income increased by 66% YoY mainly driven by strong growth in 7,000 +48% tota
Slide 13: Income Trends (1)
Financial results overview Income Trends (1) 9M 2019 Income growth across all business segments Highlights Total Operating Income, Net (SARmn) ◼ Total operating income for 9M 2019 rose by 22% YoY 4,5 00 4,0 00 +21% ◼ Income growth was driven by: 3,5 00 2,580 2,670 2,763 > Retail banking (+19%) acros
Slide 14: Income Trends (2)
Financial results overview Income Trends (2) Income growth from healthy balance sheet growth and margin expansion Highlights Total Operating Income Growth Drivers by Type (SARmn) 8,000 ◼ 9M 2019 operating income growth of 22% principally driven by 19% growth 7,000 +22% in net special commission inco
Slide 15: Expenses Trends
Financial results overview Expenses Trends Improved cost efficiency driven by income growth, despite continued investment in the Bank’s transformation program Highlights Operating Expenses Growth Drivers by Type (SARmn) 1,000 ◼ Operating expenses for 9M 2019 increased 5% YoY to SAR 2,568 million. 90
Slide 16: Credit Quality
Financial results overview Credit Quality Stable credit quality trends continued in 2019 Cost of Risk (YTD %) Impairment Charge for Credit Losses, Net (SARmn) 0 0.73% 0.71% 0.64% -22% 0 0.56% 0.55% 50 0 0 0.53% 329 0.41% 40 0 0 283 30 0 243 0 196 190 20 0 170 162 0 0 10 0 0 0 0 1Q 18 1H 18 9M 18 FY
Slide 17: Capitalization
Financial results overview Capitalization Capitalization comfortably above regulatory minima and continued to support growth Highlights Capital Ratios (%) ◼ The CET1 capital ratios stood at 16.1% YTD, while the total capital adequacy 0 19.4% 18.8% ratio was 17.9% 0 18.4% 18.4% 18.1% 0 18.1% 17.9% ◼
Slide 18: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels Highlights HQLA and Liquidity Coverage (SARbn/%) +15% 80 40 0.0% ◼ Liquidity remains well within regulatory limits during 3Q 2019 70 35 0.0% ◼ The liquidity coverage ratio increased to 165% during 9M 2019 60 30 0.0%
Slide 19: Riyad Bank Guidance
Financial results overview Riyad Bank Guidance Outlook for FY 2019 is expected to remain unchanged Guidance Metric 2018 9M 2019 2019 Guidance SAR166 Bn Low double digit Loans, Net SAR 151 Bn (+10% YTD) % growth NSCI Margin (%) 3.33% 3.55% +10bps to 15bps Cost to Income (%) 37.3% 32.0% Below 35% Cost
Slide 20: Questions & Answers
Questions & Answers Q&A Public
Slide 21: Riyad Bank Contact
Riyad Bank Contact Contact the investor relations for more information: Ibrahim Al-Muhanna Visit our Website https://www.riyadbank.com/en/about-us/investor-relations Telephone: +966114013030 Ext. 2499 E-mail: ibrahim.al-muhanna@riyadbank.com Address: Riyadh - Al Shuhada District Eastern ring road Gr
Slide 22: 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