Al Rajhi Banking and Investment (1120) Investor presentation summary

Strategic positioning and market leadership

• Holds the largest Islamic banking network globally and leads in Saudi Arabia by assets, market cap, and customer base.

• Maintains top market share in retail, personal, auto, and mortgage loans, as well as remittances and digital banking.

• Implements the 'Bank of the Future' strategy, focusing on digital transformation, customer experience, and expanding retail and corporate segments.

• Achieved significant digital adoption with a 91:9 digital to manual transaction ratio and over 10.6 million active digital customers.

• Recognized with multiple awards for digital innovation, customer service, and investor relations.

Financial performance and growth

• Total assets grew 14% YTD to SAR 710bn, with net financing up 14.8% and customer deposits up 24% YoY.

• Net income after zakat increased 21% YoY to SAR 8.4bn, driven by 11% growth in net yield income and 29.9% in non-yield income.

• Maintained strong capital adequacy with a 19% total capital ratio and 17.9% Tier 1 ratio.

• Cost to income ratio improved to 25.4%, reflecting operational efficiencies.

• Return on equity remained high at 23.43%, with return on assets at 2.55%.

Asset quality, risk, and liquidity

• NPL ratio improved to 0.57% with strong NPL coverage at 293%.

• Cost of risk decreased to 0.47%, supported by stable impairment charges.

• Liquidity coverage ratio at 121% and NSFR at 109.8%, both above regulatory requirements.

• Asset quality remains robust with prudent risk management and healthy stage coverage.