Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — Q2 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 2Q 2025 Earnings Conference Call and Webcast
Slide 2: 2Q 2025 Earnings Call
2Q 2025 Earnings Call 03 2Q 2025 Results Summary 04 Harmonize The Group – Strategy Update 05 2Q 2025 Financial Highlights 18 FY 2025 Guidance 22 ESG Highlights 24 KSA’s Macro-Economic Environment 27 IR Contact Information 2Q2025 Results Presentation 2
Slide 3: 2Q 2025 Results Summary
2Q 2025 Results Summary | Results were exceptional in the first half 2025 7.0% YTD Growth in financing portfolio 6.3% Growth in liabilities LDR below regulatory minima 6.6% YTD Balance Net Financing Total Liabilities Loan to Deposit Ratio Sheet Growth 693.4bn +7.0% 741.7bn 851.2bn +6.3% 904.9bn 85.5
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: 2Q 2025 Financial Highlights
2Q 2025 Financial Highlights
Slide 6: Balance Sheet Trends (1)
Balance Sheet Trends (1) | Total assets growth of 19.8% YoY and 6.6% YTD Total Assets (SARbn) SAR (mn) 2Q 25 1Q 25 QoQ 4Q 24 YTD +19.8% 1,400 Cash & balances with SAMA 50,149 65,077 -23% 53,245 -6% 1,039 1,200 974 1,023 Due from banks & other FI 30,434 20,978 +45% 19,530 +56% 1,000 867 903 Investmen
Slide 7: Balance Sheet Trends (2)
Balance Sheet Trends (2) | Financing growth driven by Corporate and Mortgage Financing, Net (SARbn) Movement in Financing (SARbn) +19.3% +7.0% 1,000 600 741.7 693.4 46.1 26.4 7.1 741.7 800 500 621.9 39.1 693.4 14.5 0.3 32.5 1.3 1.3 400 600 177.8 204.4 148.4 1.7 300 (0.0) 400 200 200 439.4 475.2 490.
Slide 8: Balance Sheet Trends (3)
Balance Sheet Trends (3) | Investments have grown significantly supporting our portfolio diversification Investments, Net (SARbn) Investments, Net (SARbn) +18.6% +18.6% 250 250 200 175.0 181.4 200 175.0 181.4 153.0 11.8 12.8 153.0 11.8 12.8 7.8 7.8 9.8 7.8 7.8 22.5 9.8 22.4 150 150 7.4 15.0 23.1 7.4
Slide 9: Net Income Trends
Net Income Trends | highest-ever semi-annual net income with a 32.5% growth YoY Net Income For The Period After Zakat (SARmn) SAR (mn) 1H 25 1H 24 YoY 2Q 25 2Q 24 YoY 10,000 +30.9% Net financing & investment income 14,402 11,504 +25% 7,305 5,857 +25% 8,000 Fee from banking services, net 2,768 2,162
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) +25.7% +26.5% 14,000 20,000 60 373 18,803 12,000 9,603 2,898 606 8,750 9,200 8,439 10,000 7,637 14,866 15,000 8,000 10,000
Slide 11: Expenses Trends
Expenses Trends | Cost efficiencies remains solid with a market leading cost to income ratio of 22.5% Operating Expenses (SARmn) Operating Expenses Growth Drivers By Type (SARmn) 3,500 4,000 3,000 +9.5% 3,500 +9.9% 2,088 2,143 206 23 4,231 3,000 2,070 2,050 2,500 1,956 2,500 3,850 152 2,000 2,000 1,
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 +31.9% 0 1,050 0 688 850 600 0.33% 0.32% 0.29% 0.31% 553 0.28% 0 525 650 455 0 450 0 250 50 (0) 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 1H 24 9M 24
Slide 13: Asset Quality Trends (1)
Asset Quality Trends (1) | Asset quality remains healthy Movement in NPL (SARmn) 6,000 NPL Formation (SARmn) +4.0% +4.0% 8,000 5,000 7,000 5,334 2,782 5,549 585 4,000 6,000 3,000 5,334 5,549 5,000 4,000 2,000 (370) 3,000 2,000 1,000 (2,567) 1,000 0 0 4Q 24 Retail Non-Retail 2Q 25 4Q 24 Write off Net
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 8,277 8,350 10,000 +0.9% 8,000 452 8,350 8,000 6,000 3,933 4,324 4,173 8,277 6,000 4,000 (379) 1,815 1,699 1,540 4,000 2,000 2,530 2,638 2,00
Slide 15: Liquidity Trends
Liquidity Trends | Liquidity remains comfortably within regulatory requirements HQLA (SARbn) Loan to Deposits Ratio (SAMA) (%) -0.3% Regulatory 180 1 Maximum 90% 160 131.0 128.1 124.5 121.1 120.7 85.5% 84.9% 1 82.5% 140 120 1 79.7% 78.3% 100 1 80 60 1 40 1 20 0 0 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 2Q 24
Slide 16: Capitalization Trends
Capitalization Trends | Capital position well above regulatory minima RWA (SARbn) Total Capital (SARbn) 200 +17.4% +12.4% 900 800 663.8 700 611.4 56.2 133.8 565.5 123.6 150 47.0 119.0 600 47.0 15.0 5.3 10.5 5.6 5.6 5.8 500 100 400 554.0 592.6 113.2 118.0 128.6 512.9 300 50 200 100 0 0 2Q 24 4Q 24 2Q
Slide 17: Return Metrics
Return Metrics | Al Rajhi Bank’s returns remain industry-leading Return on RWA (%) Earnings per Share (SAR) 3 0 3.79% +30.1% 0 3.74% 2 1.41 1.45 3.49% 2 1.22 1.29 3.45% 0 1.12 0 3.35% 1 1 0 0 0 1H 24 9M 24 FY 24 1Q 25 1H 25 2Q 24 3Q 24 4Q 24 1Q 25 2Q 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 drop by the second half of 2025 • Saudi real GDP is estimated to improve by 3.4% in Q1 2025 driven by 4.9% higher non-oil activities • IMF has revised Saudi GDP growth forecasts to 3.5% in 2025 and projected 3.9% for 2026 Economy • Con
Slide 20: FY 2025 Guidance
FY 2025 Guidance | For our strategy “Harmonize the Group“ FY 2025 Guidance 1H 2025 Actual Guidance Revision Balance Sheet Financing High single digit +7.0% High single digit Net profit margin +5 bps to +15 bps +1 bps +0 bps to +10 bps Profitability Cost to income ratio Below 23.5% 22.5% Below 23.5%
Slide 21: Q&A
Q&A
Slide 22: ESG Highlights
ESG Highlights
Slide 23: ESG Highlights | 2Q 2025
ESG Highlights | 2Q 2025 +200 USD 7.1 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 3.4% in Q1 2025 driven by higher 82.5 80.5 100.0 7.2 70.9 71.0 non-oil activities. 5.2 80.0 8.7 41.7 60.0 3.2 • Based on IMF forecasts, Saudi’s
Slide 26: Banking Sector Highlights
Banking Sector Highlights | Banking system deposits continue growing by the second quarter 2025 Recent Developments SAMA LDR (%) & Bank Loans and Deposits (SARbn) 83.2% 82.7% 3,800 3,700 79.5% 81.5% 80.7% • Deposits have grown in the banking system by end of May 2025 align 80.0% 3,600 3,168 3,500 3,
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