Riyad Bank (1010) investor relations material

Executive summary

• Net income grew 5% year-over-year to SAR 2.61 billion in Q1 2026, driven by higher operating income, improved efficiencies, and a resilient financial position.

• Total assets increased 3% year-to-date to SAR 537.1 billion, supported by 9% growth in investments and 1% growth in loans.

• Customer deposits rose 6% year-to-date, aiding funding growth and supporting liquidity.

• Strategic focus on scaling retail, strengthening wholesale, embedding AI, digital transformation, and sustainability, with a 2030 vision to become the most innovative bank in KSA.

• Maintained disciplined risk management and robust contingency planning amid dynamic geopolitical environment.

Financial highlights

• Net income rose 5% year-over-year to SAR 2.61 billion; operating income grew 2% to SAR 4.61 billion; net special commission income up 3% to SAR 3.38 billion.

• Cost-to-income ratio improved to 29.7%, down 90bps YoY; operating expenses declined 0.5–1% year-over-year.

• NPL ratio improved to 0.84% with coverage at 151.4%.

• Capital adequacy ratio at 19.4%; Tier 1 ratio at 16.7%; ROE at 16.0%.

• Deposits increased to SAR 353 billion, total liabilities up 3% YTD to SAR 458 billion.

Outlook and guidance

• Guidance for high single-digit loan and net special commission income growth remains intact for FY 2026, with cost-to-income ratio targeted below 30% and ROE above 16%.

• Cost of credit risk expected between 30–45bps; Tier 1 capital ratio to remain above 15%.

• The bank continues to monitor geopolitical risks and economic uncertainties, with no material deterioration seen so far.

• Capital increase and bonus share issuance approved post-period, supporting future growth.

• Saudi economic growth expected at 3.1% in 2026 and 4.5% in 2027, with non-oil activity contributing over 55% of GDP.