Riyad Bank (1010) investor relations material

Executive summary

• Entered H2 2026 with a strong balance sheet, disciplined risk management, and a well-diversified business model, maintaining resilience amid a dynamic regional environment.

• Interim condensed consolidated financial statements for the six months ended 30 June 2026 were reviewed by independent auditors with no material misstatements identified.

• Net income for 1H 2026 grew by 4% year-over-year to 5,263 million, driven by growth in net special commission income and fee and other income, partially offset by higher operating expenses and impairment charges.

• The Group operates 332 branches in Saudi Arabia and has international presence in London, Houston, and Singapore.

• Provides a full range of conventional and Islamic banking services, with several wholly owned subsidiaries in investment, real estate, HR, fintech, and innovation.

Financial highlights

• Total assets reached SAR 534 billion as of June 30, 2026, up 3% year-to-date and from SAR 491.8 billion at June 30, 2025; investment portfolio grew 16% YTD, loans up 1.2% YTD and 7% YoY.

• Customer deposits rose 5% YTD and 9% YoY to SAR 348.3 billion, outpacing loan growth and strengthening liquidity.

• Operating income increased 4% YoY to SAR 9.35 billion, driven by 4% growth in net interest income and 2% in fees/other income.

• Net income reached SAR 5.3 billion, up 4% YoY; return on equity at 16%.

• Cost-to-income ratio improved to 29.2%, a 70 bps YoY improvement; cost base grew 1.1% YoY.

Outlook and guidance

• Loan and net special commission income guidance revised to mid-to-high single digit growth for the remainder of 2026.

• Cost-to-income ratio expected to remain below 30%; ROE guidance revised to above 15.75%.

• Tier 1 capital ratio guidance raised to above 17.5% following the SAR 10 billion AT1 Sukuk issuance.

• The Group is actively assessing the impact of IFRS 18, which will affect future financial statement presentation.

• Ongoing monitoring of geopolitical risks and stress testing of credit portfolios to ensure adequate provisioning.