Slide 1: Riyad Bank Results Presentation - 2Q 2019
Riyad Bank Results Presentation - 2Q 2019
Slide 2: Four areas of focus for today's earnings call
2Q 2019 Earnings Call Four areas of focus for today's earnings call ◼ Retail Sales ◼ Net loans grew 7% YTD to SAR 161.3 billion ◼ Corporate Sales ◼ Total Deposits grew 4% YTD to SAR 176.5 billion ◼ Performance Culture ◼ Total Operating Income grew 22% to SAR 5,250 million for 1H 2019 ◼ Innovation on
Slide 3: First Phase of the Transformation Program
First Phase of the Transformation Program These strategic priorities will create value for our stakeholders and achieve our vision 1 2 4 3
Slide 4: Retail Banking starts from a good challenger position and has significant upside potential
Retail Banking 1 Retail Banking starts from a good challenger position and has significant upside potential 1Q 2019 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % 0% 5% 10 % 15 % 20 % 25 % 30 % 35 % 35 ,000 10,825 RAJHI 29.2% 30 ,000 25 ,000 NCB 21.8% 20 ,000 SAMBA 7.5% 15 ,000 4,
Slide 5: Corporate banking is in a strong starting position with significant growth potential
Corporate Banking 2 Corporate banking is in a strong starting position with significant growth potential 1Q 2019 Revenue and Profit Pool in SARmn Top 5 Banks - Revenue Share in % 25 ,000 7,393 RIYAD 14.2% 20 ,000 NCB 13.6% 4,670 15 ,000 SABB 13.2% 10 ,000 5,0 00 SAMBA 10.6% 0 FRANSI 10.6% Revenue Po
Slide 6: We are energising the entire organization to achieve our ambition
Performance Culture 3 We are energising the entire organization to achieve our ambition Organizational Health Index (OHI) results More Performance Culture accountability Better More communication outcome-focused ◼ Leadership Balance: leaders achieving a balance of styles ◼ Human Capital roadshows vi
Slide 7: We have room to improve digital capabilities that deliver a better customer experience
Innovation 4 We have room to improve digital capabilities that deliver a better customer experience 30 % 28% April 19 24% 25 % June 19 20 % 15 % 9% 10 % 8% 5% 5% 3% 0% Number of On-boarded Customers Number of cash Deposit SADAD Bill Payments Growth Growth Transaction Growth ◼ To acquire new-to-bank
Slide 8: Healthy balance sheet growth from improved economic environment and early progress with transformation initiatives
Financial results overview Healthy balance sheet growth from improved economic environment and early progress with transformation initiatives 300 ◼ Total assets increased by 7% in 2019 YTD as principally from a 7% increase in +7% 250 net loans and advances 200 ◼ The 7% net loan growth in 2019 YTD co
Slide 9: 1H 2019 profit improvement driven by income growth and lower impairments
Financial results overview 1H 2019 profit improvement driven by income growth and lower impairments 5,000 ◼ During 2Q 2019, the accounting treatment for Zakat was amended to be 4,500 +51% recognized in the income statement rather than statement of changes in 4,000 3,500 equity under retained earning
Slide 10: Strong income growth from margin expansion and balance sheet growth
Financial results overview Strong income growth from margin expansion and balance sheet growth 5,000 4,5 00 4,500 +22% 4,0 00 +23% 4,000 3,5 00 3,500 2,580 2,670 68 5,250 3,0 00 323 2,281 2,383 3,000 350 2,5 00 2,130 2,174 2,500 4,303 205 2,0 00 2,000 1,5 00 1,500 1,0 00 1,000 50 0 500 0 0 1H 18 Ret
Slide 11: Improved cost efficiency despite investment in the Bank's transformation program
Financial results overview Improved cost efficiency despite investment in the Bank’s transformation program 1,4 00 -2% Other 27% 1,2 00 904 845 1,0 00 802 833 808 820 80 0 60 0 1,665 Employee- Related 54% 40 0 20 0 0 Depreciation 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 13% Premises- Related 6% 700 1 +2%
Slide 12: Credit costs improved and non-performing loans ratio remained stable during 1H 2019
Financial results overview Credit costs improved and non-performing loans ratio remained stable during 1H 2019 1,600 0 0.87% 1,400 -19% 0.73% 0 0.71% 1,200 0.64% 0 1,000 0 0.55% 0.56% 496 0 800 198 402 0 0.41% 0 600 (54) 0 400 (238) 0 200 0 0 0 1H 18 Retail Corporate Treasury & 1H 19 FY 17 1Q 18 1H
Slide 13: Capitalization and liquidity remain comfortably within regulatory requirements
Financial results overview Capitalization and liquidity remain comfortably within regulatory requirements 70 +6% 60 0 19.4% 0 18.8% 50 41 42 44 18.4% 18.4% 18.1% 0 4 18.1% 40 4 4 0 30 0 17.3% 0 16.7% 16.5% 16.5% 37 38 39 16.1% 16.2% 0 20 0 10 0 0 0 4Q 18 1Q 19 2Q 19 0 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2
Slide 14: Outlook for FY 2019 is expected to remain unchanged
Financial results overview Outlook for FY 2019 is expected to remain unchanged Guidance Metric SAR161 Bn Low double digit SAR 151 Bn (+7% YTD) % growth 3.33% 3.49% +10bps to 15bps 37.3% 31.7% Below 35% 0.64% 0.56% 0.40% to 0.60%* 16.1% 16.5% 16.0% to 16.4%
Slide 15: Questions & Answers
Questions & Answers eS SO osess® ossoos > ° : ° Soeeey woosere wis bank sul riyad
Slide 16: Please contact the investor relations team for more information
Please contact the investor relations team for more information: https://www.riyadbank.com/en/about-us/investor-relations Telephone: +966114013030 Ext. 2499 Address: Riyadh - Al Shuhada District Eastern ring road Granada Oasis -Tower (A1) P.O Box 22622 Riyadh 11416 Kingdom of Saudi Arabia E-mail: ib
Slide 17: This presentation has been prepared by Riyad Bank solely for informational purposes
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, projections, ant