Al Rajhi Bank · TADAWUL:1120
Al Rajhi Bank — Q2 2017 Earnings Presentation
20 slides from Al Rajhi Bank's earnings presentation, Oct 25, 2017
Slide 1: Investor Relations Presentation Q2 2017
Investor Relations Presentation Q2 2017
Slide 2: Table of Content
Table 1 KSA Fact Sheet 3 of Content 2 3 Saudi Arabia 2030 Vision Al Rajhi at a Glance 4 5 4 Al Rajhi 2020 Strategy 6 5 Al Rajhi’s Stock Performance 7 6 Presence & Business Segments 8 7 Al Rajhi Position within the main Saudi Banks 9 8 Sustainable Growth in Our Financial Position 10 9 The Financial P
Slide 3: KSA Fact Sheet
KSA Fact Sheet Saudi Arabia holds 49% of the Saudi population one-fith of the world’s of 20.4 million is under proven oil reserves the age of 25, with a young It is the world’s largest producer population entering the workforce and exporter of petroleum for the first time The Kingdom is a member of th
Slide 4: Saudi Arabia 2030 Vision
Saudi Arabia 2030 Vision A Vibrant Society A Thriving Economy An Ambitious Nation • Increase Umrah capacity from • Lower unemployment from • Rise in Global Competitive- • Increase non-oil government 8 to 30M 11.6% to 7% ness Index from 25 to top 10 revenue from SAR 163B to 1T • Double the number of
Slide 5: Al Rajhi at a Glance
Al Rajhi at a Glance The Largest Customer Base in KSA 9 million The Largest Network in the Middle East 568 Branches 4,737 ATMs 73,812 POS 4 of every 10 transactions in KSA 70 million+ Transactions processed per month #1 Bank for Remittance in the region 21 million+ Remittances Liquid and Low cost of
Slide 6: Al Rajhi 2020 Strategy
Al Rajhi 2020 Strategy A E Execution Excellence Accelerate Growth Deliver Exceed Industry Become B C D Employer of Choice Digital Leadership Higher Engagement Best-in Class Customer Focus Most Recommended 6
Slide 7: Al Rajhi's Stock Performance
Al Rajhi’s Stock Performance Al Rajhi is the largest constituent in MSCI GCC Index Stock Performance - June 22, 2017 Float Adj Country Mkt Cap Index Closing Price (SAR) 69.75 TOP 10 CONSTITUENTS (USD Billions) Wt. (%) Sector AL RAJHI BANKING & INV SA 21.64 8.86 Financials Book Value (SAR) 31.65 SAUD
Slide 8: Presence & Business Segments
Presence & Business Segments Kuwait Segments Contributions Jordan (7) (1) To The Operating Income* Corporate Treasury 15% 10% Investment 3% Retail Saudi Arabia Malaysia 72% * For the Period 6M 2017 (Number of Branches) (568) (22) Retail Banking • Personal Finance Corporate • Transactional Banking Tr
Slide 9: Al Rajhi Position within the main Saudi Banks
Al Rajhi Position within the main Saudi Banks (As at June ‘17) SAR Bn Assets SAR Bn Loans ١ ١ ٢ ٢ ٣ ٤٥٠ ٣ ٤ ٢٥٧ ٥ ٥ ٤ ٣٤٦ ٢٣٣ ١٤١ ٢٣١ ٢١٩ ٢٠٥ ١٢١ ١٢٩ SAR Bn Current Accounts SAR Bn Retail Loans ١ ١ ٢ ٢ ٢٥١ ٣ ٥ 163.2 ٣ ٤ ٤ ٢٤٨ 87.7 ٥ ١٠٦ ٧٦ ٩٠ 39.9 18.7 12.0 9
Slide 10: Sustainable Growth in Our Financial Position
Sustainable Growth in Our Financial Position Assets Loans Deposits SAR Bn. SAR Bn. SAR Bn. 340 225 233 346 CAGR CAGR CAGR 6.2 % 316 6.9 % 210 5.4 % 273 285 258 308 206 256 280 187 232 267 172 221 2016 Q2 2016 Q2 2016 Q2 2015 2017 2015 2017 2015 2017 2012 2013 2014 2012 2013 2014 2012 2013 2014 Susta
Slide 11: The Financial Performance
The Financial Performance Income & Operating Costs Net Income SAR Mn. SAR Mn. Income Cost 8,126 7,885 7,438 27.0% 29.3% 33.1% 33.9% 32.4% 33.0% 7,130 6,836 ١٣,٩٨3 ١٣,٨٤5 ١٣,٦٦7 ١٣,٧٤6 15,284 4,403 7,730 4,949 ٣,٧٧9 ٤,٠٥7 ٤,٥١9 ٤,٦٥8 2,550 Q2 2015 2016 2017 2013 2014 2012 201٣ 201٤ 201٥ 2016 Q2-2017
Slide 12: Al Rajhi's Market Shares
Al Rajhi’s Market Shares Current Personal Mortgages Assets Deposit Accounts Loans Loans 15.4% 16.9% 23.3% 40.0% 23.7% 84.6% 60.0% 83.1% 76.7% 76.3% Auto Loans Corporate Loans Branches ATMs POSs 47.7% 52.3% 7.6% 75.7% 73.3% 74.2% 92.4% 24.3% 26.7% 25.8% AL Rajhi Competition 12
Slide 13: High NPL Coverage & Low NPL Ratio
High NPL Coverage & Low NPL Ratio 360% 2.1% 317% 2.0o% 1.9% 310% 1.7% 1.57% 1.51% 260% 1.5% 231% 1.24% 1.3% 210% 1.26% 196% 1.1% 177% 0.9% 160% 144% 0.75% 0.7% 137% 110% 0.5% 2012 2013 2014 2015 2016 Q2-2017 2012 2013 2014 2015 2016 Q2-2017 NPL Coverage % NPL % • Continuous improvement in bank’s ass
Slide 14: Al Rajhi Bank Strengths
Al Rajhi Bank Strengths The highest Non-Commission Bearing ROA% above the market Deposits % of Total Deposits within the market 2.57% 89.9% 1.97% 62% Al Rajhi Competition Al Rajhi Competition Net Commission Margin well above the market ROE% above the market 4.03% 16.68% 3.06% 13.29% Al Rajhi Competi
Slide 15: Outstanding Key Profitability Ratios
Outstanding Key Profitability Ratios ROA% ROE% The highest in the market The 2ed highest in the market 2.72% 19.84% 2.57% 16.68% 2.48% 17.01% 16.49% 2.33% 2.29% 16.11% 2013 2014 2015 2016 Q2-2017 2013 2014 2015 2016 Q2-2017 Net Commission Margin % Cost of Funds% The highest in the market The lowest i
Slide 16: Capital Strengths & Risk Management
Capital Strengths & Risk Management CAR (Tier I + II)% Loans/Deposits% (LDR%) The highest in the market 82.5% 21.98% 22.13% 81.6% 81.5% 20.83% 80.7% 19.60% 19.59% 80.4% 2013 2014 2015 2016 Q2-2017 2013 2014 2015 2016 Q2-2017 Liquidity Coverage Ratio % (LCR%) Cost of Risks% (CoR%) 1.28% 233% 1.15% 21
Slide 17: Al Rajhi is rated by all major Rating Agencies
Al Rajhi is rated by all major Rating Agencies 2013 2014 2015 2016 2017 Moody’s A1 A1 A1 A1 A1 S&P A+ A+ A BBB+ BBB+ Fitch A+ A+ A+ A A- KSA Sovereign Aa3 Aa3 Aa3 A1 A1 Moody's KSA Sovereign AA- AA- A+ A- A- S&P • Al Rajhi Bank’s strong financial position and credit profile is endorsed by major Rati
Slide 18: Balance Sheet Summary
Balance Sheet Summary SAR - Millions Q2 2017 FY 2016 Growth % Q2 2016 Growth % Due From Banks & Other 21,911 26,579 -17.6% 24.894 -12.0% Financial Institutions Investments 31,578 34,033 -7.2% 35.922 -12.1% Financing, net 232,797 224,994 3.5% 224.523 3.7% Total Assets 345,597 339,712 1.7% 331,381 4.3
Slide 19: Statement of Income Summary
Statement of Income Summary SAR - Millions Income Statement 6M 2017 6M 2016 Variance % Net Yield Income 5,840 5,387 8.4% Fees from Banking Services 1,303 1,677 -22.3% Exchange & Other Income 586 587 0.0% Total Operating Income 7,730 7,651 1.0% Total Operating Expenses 2,550 2,453 4.0% Income Before
Slide 20: 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