Investor Relations Presentation Q3 2016

Transcription

1 Investor Relations Presentation Q3 2016

2 KSA Fact Sheet Saudi Arabia holds one-fitth of the world s proven oil reserves It is the world s largest producer and exporter of petroleum The Kingdom is a member of the Group of Twenty (G20) GDP exceeded USD 646 billion in 2015 It is projected to grow by 1.2% in real terms in 2016 The non-oil private sector accounts for 39.27% of the real GDP 50% of the population of 30.9 million is under the age of 25, with a young population entering the workforce for the first time The monetary policy in Saudi Arabia exhibits a high degree of stability and predictability Government surplus supports extensive infrastructure spending The Saudi equity market accounts for over 45% of the GCC market capitalisation Measures are underway to further liberalise foreign investor access to the KSA, integrating the Kingdom with the global economy and opening new opportunities for business 2

3 KSA s Standing in the GCC Largest country in the GCC 2.15 million sq. km USD 750 billion Largest economy in GCC 57% of GCC oil production is by KSA 45% of the GCC market capitalization Population of 30.9 million 45% of the GDP of GCC USD 1.25 billion The value of the Kingdom s consulting market Largest non-oil GDP in GCC Over 35,000 hotel rooms under construction in ٨١ hotels Saudi Arabia has the most number of hotel rooms under construction in the GCC ٢٣٨ ٥.٧٨ ٢٠٤ ١٢٥ ٢.٥٥ ١٧٢ ٦٧ ٤.٣٥ ٨٦ ٤٦ ٤.٤٤ ٣٥ ٢٨ ١.٣٩ ٣٩٣ ٤٠٥ ٧٤٢ ٣٠.٩٠ KSA UA E Qatar Kuwait Oman Bahrain GDP (USD billion) Non- oil GDP (USD billion) Population (million) 3

4 Al Rajhi at a Glance The Largest Islamic Bank in the world by Total Assets Strong legacy dating back to 1957, gone public through an IPO in 1987 Leading bank in Saudi Arabia in terms of customer base, networks, and number of transactions. #1 in Total Retail Assets SAR 178 Bn. The largest network in the Middle East 537 branches 4323 Atms POS 199+ Remittance centers #1 bank for Remittance in the Middle East 21 million+ remittances Well Positioned Brand - Highest Brand Equity of 33.1* The largest customer base in KSA 6 mn + customers Account Holders Total Assets size SAR 331 Bn. Moody s Rating A1 ROE 16.8 % ROA 2.5 % CAR 21.3 % * Source Millward Brown Brand Health Training 4

5 Presence & Business Segments Jordan (7) Kuwait (1) Segments Contributions To The Operating Income* Corporate Treasury 12% 11% Investment 4% (Number of Branches) Saudi Arabia (537) Malaysia (22) Retail 73% * For the Period 9M 2016 Retail Banking Personal Finance Auto Finance/Leasing Home Finance Cards Corporate Transactional Banking Trade Finance Cash Management SME Treasury Treasury services Financial Institutions International investment portfolios Brokerage Asset Management Advisory & Structuring Insurance- Al Rajhi Takaful Auto Life Medical 5

6 Sustainable Growth in Our Financial Position Assets Loans Deposits SAR Bn. SAR Bn. SAR Bn CAGR 5.7 % 316 CAGR 6.9 % 210 CAGR 5.2 % Q Q Q Sustainable growth in Assets, driven by growth in Financing & investment book Growth in Loans, with improved asset quality. Balance sheet growth supported by sustainable growth in customer deposits. 6

7 The Financial Performance Income & Operating Costs Net Income SAR Bn. SAR Bn. Income Cost % 29.3% 33.1% 33.9% ١٣.٩٨ ١٣.٨٤ ١٣.٦٦ ١٣.٧٤ ٣.٧٧ ٤.٠٥ ٤.٥١ ٤.٦٥ 35.1% 32.2% ٥ ٣ 201٤ 201٥ 9M M M M 2016 One of the lowest cost to Income Ratios in the market, driven by efficiency in managing resources and leveraging on Bank s economies of scale. Improvement in Net Income driven by growth in Operating Income and enhanced operating efficiency. 7

8 Low NPL Ratio & High LLP Coverage 200% 190% 196% 201% 2.1% 1.9% 2.0o% 180% 170% 160% 150% 140% 144% 177% 1.7% 1.5% 1.3% 1.1% 1.57% 1.26% 1.51% 1.38% 130% 137% 0.9% 120% 0.7% 110% 0.5% Q Q LLP Coverage % NPL % Continuous improvement in bank s assets quality. Build up of strong LLP Coverage to sustain our future growth. 8

9 Al Rajhi Strengths Al Rajhi has the highest Retail Assets in the market The highest Non-Commission Bearing Deposits % of Total Deposits within the market Retail Assets SAR Bn Riyad (39) Al Rajhi (178) NCB (108) % Al Rajhi 59% The rest of the market* Total Assets SAR Bn. Net Commission Margin well above the market Strong CAR compared to the market 3.89% 2.69% 21.3% 18.0% Al Rajhi The rest of the market* Al Rajhi The rest of the market* * The rest of the market data as of Q

10 Al Rajhi is rated by all major Rating Agencies Q Moody s A1 A1 A1 A1 S&P A+ A+ A BBB+ Fitch A+ A+ A+ A KSA Sovereign Moody's KSA Sovereign S&P Aa3 Aa3 Aa3 A1 AA- AA- A+ A- Al Rajhi Bank s strong financial position and credit profile is endorsed by major Rating Agencies. Moody s rated Al Rajhi Bank in line with KSA sovereign. 10

11 Balance Sheet Summary Sep 2016 SAR - Millions Sep 2016 Dec 2015 Sep 2015 YTD Growth % YoY Growth % Due From Banks & Other Financial Institutions 16,840 26,911 26, % -35.3% Investments 33,753 39,877 45, % -25.6% Financing, net 225, , , % 7.6% Total Assets 330, , , % 1.6% Due to Banks & Other Financial Institutions 2,004 4,558 2, % -1.0% Customers' Deposits 272, , , % 0.4% - Non-Profit Bearing Deposits 250, , , % 3.7% - Profit Bearing Deposits 22,343 10,390 11, % 89.2% Total Shareholders' Equity 49,783 46,639 44, % 10.7% 11

12 Statement of Income Summary 9M 2016 SAR - Millions Income Statement 9M M 2015 Change % Net Yield Income 8,244 7, % Fees from Banking Services 2,370 1, % Exchange & Other Income % Total Operating Income 11,471 10,152 13% Total Operating Expenses 3,692 3, % Income Before Provisions 7,779 6, % Net Impairment Charges 1,700 1, % Net Income for the Period 6,079 5, % 12

13 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 ON THIS DOCUMENT IS PROVIDED FOR GENERAL INFORMATION ONLY AND SHOULD NOT BE USED AS A BASIS FOR MAKING BUSINESS DECISIONS. ANY ADVICE OR INFORMATION RECEIVED VIA THIS DOCUMENT SHOULD NOT BE RELIED UPON WITHOUT CONSULTING PRIMARY OR MORE ACCURATE OR MORE UP-TO-DATE SOURCES OF INFORMATION OR SPECIFIC PROFESSIONAL ADVICE. YOU ARE RECOMMENDED TO OBTAIN SUCH PROFESSIONAL ADVICE WHERE APPROPRIATE. GEOGRAPHIC, POLITICAL, ECONOMIC, STATISTICAL, FINANCIAL AND EXCHANGE RATE DATA IS PRESENTED IN CERTAIN CASES IN APPROXIMATE OR SUMMARY OR SIMPLIFIED FORM AND MAY CHANGE OVER TIME. RELIANCE HAS BEEN PLACED BY THE EDITORS ON CERTAIN EXTERNAL STATISTICAL DATA WHICH, THOUGH BELIEVED TO BE CORRECT, MAY NOT IN FACT BE ACCURATE. ARB ACCEPTS NO LIABILITY FOR ANY LOSS OR DAMAGE ARISING DIRECTLY OR INDIRECTLY FROM ACTION TAKEN, OR NOT TAKEN, IN RELIANCE ON MATERIAL OR INFORMATION CONTAINED IN THIS DOCUMENT. IN PARTICULAR, NO WARRANTY IS GIVEN THAT ECONOMIC REPORTING INFORMATION MATERIAL OR DATA IS ACCURATE RELIABLE OR UP TO DATE. ARB ACCEPTS NO LIABILITY AND WILL NOT BE LIABLE FOR ANY LOSS OR DAMAGE ARISING DIRECTLY OR INDI- RECTLY (INCLUDING SPECIAL, INCIDENTAL OR CONSEQUENTIAL LOSS OR DAMAGE) FROM YOUR USE OF CONTENTS IN THE DOCUMENT, HOWSOEVER ARISING, AND INCLUDING ANY LOSS, DAMAGE OR EXPENSE ARISING FROM, BUT NOT LIMITED TO, ANY DEFECT, ERROR, IMPERFECTION, FAULT, MISTAKE OR INACCURACY WITH THIS DOCUMENT. 13