Riyad Bank · TADAWUL:1010
Riyad Bank — Q3 2020 Earnings Presentation
30 slides from Riyad Bank's earnings presentation, Nov 2, 2020
Slide 1: Results Presentation Q3 2020 Earnings Call
Results Presentation Q3 2020 Earnings Call Tareq Al Sadhan, Chief Executive Officer Abdullah Al Oraini, Chief Financial Officer Riyadh, 2 November 2020 | Public Riyad Bank Results Presentation— Q3 2020 riyadbank.com 92 000 1816 Ohyao
Slide 2: Who We Are
Who WeAre Usly JI wig . . . . . . id bank Riyad Bank is a leading bank in Saudi Arabia meen Diverse business model that has succeeded through market cycles Q3 2020 Key Metrics Third Largest Bank in Saudi Arabia* Ratings zs a mm. “2% 309 billionin assets 3411 Branches BBB+ s&P SAR @s\ OF . <=} 191 bi
Slide 3: Strategy Overview
Strategy Overview Riyad Bank continued to deliver a strong financial performance during Q3 2020 despite challenging economic conditions Four areas of focus for today's call Transformation Program Update Retail Sales Transformation. Corporate Sales Transformation. Innovation. Performance Culture. Net
Slide 4: COVID-19 Update
COVID-19 Update 545 ulis Government programs riyad bank SAR 290+bn in combating adverse impact of COVID-19 on Saudi Econom Mini: Saudi Human 4 5 A inistry of Saudi Arabian Monetary Authority (SAMA) Ministry of Finance Interior Resources Development Fund To Private sector To extend Iqama and To Econo
Slide 5: Transformation Program
Transformation Program early Four key pillars of Riyad Bank's Transformation myad'san The Bank has been making significant progress on its transformation program, a strategy refresh exercise has been conducted to become the best bank in the Kingdom To be the most innovative and trusted financial sol
Slide 6: Retail Banking
Retail Banking early | 2 | Retail Banking Performance riyad ban Retail Banking witnessing robust growth despite difficult business environment Market Potential - KSA Retail Banking Good challenger position H1 2020Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % 22,382 RAJHI 30.4% NC
Slide 7: Corporate Banking
CorporateBanking Us) I elis vat bank | 2 | Corporate Sales Transformation Corporate banking is ina strong starting position and has been delivering strong growth Market Potential - KSA Corporate Banking Strong starting position H1 2020 Revenue and Profit Pool inSARmn Top 5 Banks - Revenue Share in %
Slide 8: Public
500% 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% ◼ ◼ ◼ ◼ ◼ ◼ Public
Slide 9: Performance Culture
Performance Culture | 4 | Performance Culture Usb) wlis vat bank Weare energising the entire organization to achieve our ambition Shifting the bank's culture requires closing three gaps More accountability Performance Culture Better communication More outcome-focused Key Achievements Recent activiti
Slide 10: Q3 2020 Financial Results Overview
*, eeecee et weeees eS oe Q3 2020 Financial Results Overview Public * . soeeres wooees Elayl ehiy Se
Slide 11: Financial results overview: 9M 2020 vs 9M 2019
Financial results overview 9M 2020 Vs 9M 2019 Balance Sheet olay ely . . riya an 9M 2020 Key Highlights 23.1% 14.8% 7.3% 13.3% 31.1% Total assets Loanand Investments, net Customer Demand & other advances, net deposits deposits 14.6% 6.4% 1.4% 5.0% = Increase in Credit related impairment Income State
Slide 12: Financial Highlights — Balance Sheet
Financial results overview olay ely . . . . riyad ban Financial Highlights — Balance Sheet Strong balance sheet growth supported by continued growth in loans and placements Total Assets Growth Drivers (SARbn) Q0Q% YTD% pera SAR (mn) Q3 2020 Q2 2020 change Q42019 change +16% 16.8 24.3 308.6 265.8 17
Slide 13: Assets & Lending
Financial results overview Us) I elis . riyad bank Assets & Lending Strong loan growth mainly driven by commercial and mortgage loans Loans & Advances Growth Drivers (SARbn) Mortgage Loans, Gross (SARbn) | +32% 190.8 | 37 36 : a Q4-19 Overdrafts Credit Consumer Commercial Other — Q3-20 Q3-19 4-19 Q1
Slide 14: Liabilities and Funding
Financial results overview aly lis wees ; api ehiy Liabilities and Funding riyad ban! Continued strong growth in non-commission bearing deposits and progressively optimizing the bank's cost of funds. Due to banks grew on the back of SAMA deposits. Customer Deposits Growth Drivers (SARbn) + 3% 21.6 0
Slide 15: Financial Highlights — Income Statement
Financial results overview olay ely . . . . riyad ban Financial Highlights — Income Statement Operating income growth was offset by higher impairment charges Net Income before Zakat Growth Drivers by Segment 3 SAR (mn) 9M20209M2019 ¥°Y * sq20202@2020 200% (SARmn) change change ' [223% | Net special
Slide 16: Income Trends
Financial results overview Income Trends Income growth supported by strong balance sheet Total Operating Income, Net (SARmn) +2% 2670 2763 2,705 2885 2799 2,821 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 NSCI Margin, Yields and Funding Costs (%) 4.72% 4.67% + 04198 3.93% 3.57% 3.56% 3.55% —__ . So 5% 5.19%
Slide 17: Efficiency ratio
1 0 34.3% 0 0 31.7% 31.9% 0 32.8% 32.0% 32.1% 31.8% 0 0 Q1-19 H1-19 9M-19 FY-19 Q1-20 H1-20 9M-20 Public
Slide 18: Credit Quality
Financial results overview Credit Quality Stable asset quality trends with solid NPL coverage ratio Impairment Charge for Credit Losses, Net (SARmn) 145% 570 466 283 335 303 [ | 190 Q2-19 = Q3-19 4-19 1-20. 2-20. = Q3-20 NPL Ratio (%) 1.50% o 9 nine 1.00% 38 1.01% 100% ——e. 0.85% 0.88% o——__ + .~——s
Slide 19: Capitalization
Financial results overview Capitalization Capitalization well above regulatory minima and continues to support growth Capital Ratios (%) 18.8% 18.5% 18.4% 11% 179% 18: 1% 17.8% ae — oN —_* —~.. —— —™ 7 16.2% 165% sero 16.3% _ 16.1% ° 15.3% 14.6% Q1-19_ Q2-19 Q3-19_Q4-19_ Q1-20. Q2-20 3-20 —:'—TCrati
Slide 20: Liquidity
Financial results overview Liquidity Liquidity continues to be at comfortable levels HQLA and Liquidity Coverage (SARbn/%) +20% 52 50 51 42 44 43 46 ° o—__ , ——__ + ——_+ 165% 168% 143% q 155% 160% 1919 2Q19. 3Q19. 4Q19_- 1Q20.- 2203-20 High quality liquid assets (HQLA) —'—Liquidity coverage ratio (L
Slide 21: Business Segments
toosee eoseses Business Segments . ° SO eoey, woorere ¢ Usp wis riyad bank Public
Slide 22: Retail Banking
Business Segments Us) I elis vat bank Retail Banking Operating income growth offset by higher impairment charges SAR (mn) 9M 9M YoY% = Q3 Q2 —- Q0Q% 2020 2019 change 2020 2020 change Totalassets 75,644 63,344 +19% 75,644 74,012 +2% Total Assets (SARbn) Total liabilities 90,844 81,995 +11% 90,844 88,
Slide 23: Corporate Banking
Business Segments Corporate Banking Strong loans and deposits growth Us) I elis vat bank SAR (mn) 9M 9M YoY% = Q3 Q2 — Q0Q% 2020 2019 change 2020 2020 change Total Assets (SARbn) Totalassets 134,640 119,267 +13% 134,640 137,403 -2% Total liabilities 150,430 109,264 +38% 150,430 140,742 +7% 122 Net s
Slide 24: Treasury & Investments
Business Segments Usl)JI wis riyad bank Treasury & Investments Strong performance supported by customer flow business SAR (mn) 9M 9M YoY % Q3 Q2 Q0Q% 2020 2019 change 2020 2020 change 9 9 Totalassets 96,171 66,562 +44% 96,171 81,501 +18% Total Assets (SARbn) Total Liabilities (SARbn) Total liabiliti
Slide 25: Riyad Capital
Business Segments Us) I elis vat bank Riyad Capital Strong performance supported by strong AuMs growth Total AUM (SARbn) 9M 9M YoY % Q3 Q2 Q0Q% SAR (mn) 2020 2019 change 2020 2020 change Total assets 2,103 1,400 +50% 2,103 2,167 -3% Total liabilities 422 320 +32% 422 491 -14% 62.2 Net special commis
Slide 26: 2020 Outlook
2020 Outlook . ° soerer worsers Usp wis riyad bank Public
Slide 27: Riyad Bank Guidance
20200utlook Us) I elis riyad bank Riyad Bank Guidance The bank revised its 2020 guidance to reflect current operating environment . ; 2020 Guidance 2020Revised Guidance Metric FY 2019 Provided on Feb Guidance 9M 2020 Low double . Loans, Net eee en digit Low-mid double SAR191Bn (+15% YoY) % growth di
Slide 28: Questions & Answers
Questions & Answers *, Seesees Sesees oe . oe * Public Po oeoee, woreee -o" Elayl ehiy riyad bank
Slide 29: Riyad Bank Contact
Appendix Riyad Bank Contact Contact the investor relations for more information: Ibrahim Al-Muhanna Head of Investor Relations Telephone: +966 11401 3030Ext. 2499 E-mail: ibrahim.al-muhanna@riyadbank.com Address: Riyadh - Al Shuhada District Eastern ring road Granada Oasis -Tower (A1) P.O Box 22622
Slide 30: Disclaimer
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 the business, future plans and strategi