Al Rajhi Banking and Investment (1120) Investor presentation summary

Strategic positioning and market leadership

• Maintains the largest Islamic banking franchise globally, leading in assets, market cap, and customer base in Saudi Arabia and the Middle East.

• Holds top market share in retail, personal, mortgage, and auto loans, as well as remittance and digital banking services.

• Extensive distribution network with 512 branches, 4,371 ATMs, and over 786,000 POS terminals.

• Achieved 85 NPS and 73% CASA ratio, reflecting strong customer loyalty and stable funding.

• Female workforce participation reached 34%, with significant growth in female customers.

Financial performance and growth

• Net financing portfolio grew 16.7% YoY to SAR 693.4bn, driven by mortgage and corporate segments.

• Total assets increased 20.6% YoY to SAR 974.4bn, with customer deposits up 9.6% to SAR 628.2bn.

• Net income after zakat rose 19% YoY to SAR 19.7bn, marking the highest annual profit.

• Operating income grew 16.4% YoY, supported by higher net yield and fee income.

• Maintained strong capital adequacy with a 20.2% total capital ratio and robust liquidity metrics.

Operational efficiency and asset quality

• Cost to income ratio improved to 24.9%, reflecting ongoing cost efficiencies.

• Loan-to-deposit ratio at 85.5%, comfortably below regulatory maximum.

• NPL ratio increased slightly to 0.76%, with NPL coverage at 159%, indicating solid credit quality.

• Cost of risk rose to 0.32% due to portfolio growth, but asset quality remains stable.

• Return on equity reached 21.06%, and return on assets improved to 2.26%.