Investment Case - Riyad Bank Annual Report
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Investment Case
1
A well-connected bank in the Kingdom of Saudi Arabia with international presence
Riyad Bank is the third largest Bank in the Kingdom of Saudi Arabia in terms of assets with a solid domestic franchise and brand, with more than 60 years of history and the first joint stock banking company to be established in Saudi Arabia. The Bank has an extensive branch network operating through 340 licensed branches in Saudi Arabia, its London branch, an agency in Houston, a representative office in Singapore and soon in China. The Bank has strong and excellent government and corporate relationships offering customers a wide range of banking services.
Key Achievements:
- 2018 Launch of 2022 Transformation Program
- 2019 Launch of dedicated office to align and support Saudi Vision 2030
- Launch of “Bukra” Social Responsibility Strategy
- 2020 Ranked one of Top Ten Largest Banks in the GCC
- Named best bank for SMEs in the Middle East
- One of Top Ten Largest Banks in the GCC
- Listed among 40 most powerful Arab companies in the world
- Launched second stage of Transformation Program for 2021-2025
2
Well positioned for growth in line with Saudi Vision 2030
The Bank has a clear growth strategy, aligned with the Saudi Vision 2030 aspirations. In 2021, the Bank completed their strategic initiatives design and detailing and plans to execute them in 2022. We have also established a Business Initiatives and Enablers Development Center (BIED), which happens to be the first center in the Kingdom specifically designed to develop initiatives to support business enablers for the government and private entities working jointly to achieve the goals of the Kingdom’s Vision 2030. The Bank’s diversified model offers us great opportunities to grow, the Bank will execute its ambitious plans by continuing to invest in our core business strengths, delivering world class technology and digital capabilities to our customers.
Key Pillars of the
Bank 2025 Strategy:- Most profitable
- Most efficient
- Digitally enabled
- Bank of choice
3
Strong and well-capitalized balance sheet and solid income generation capacity
Proven earnings generation capabilities supported by a strong capital position, high levels of liquidity and stable deposit base provide a robust foundation for meeting demands of customers and delivering a sustainable return to shareholders.
Key Ratio’s:
- CET1: 15.8%
- Total CAR: 19%
- Leverage: 11.8%
- LCR: 168%
- NSFR: 116%
- ROAE before zakat: 14.7%
- ROAA before zakat: 2.1%
- RoRWA: 2.0%
4
A responsible Bank with strong governance and an experienced leadership team
The Bank has a very robust corporate governance framework and risk management process, that strives to do the right thing for all our stakeholders. The Bank has an experienced leadership team comprising of local and international expertise with a clear mandate from the Board to deliver sustainable results in a responsible manner.
Key Principles:
- Clear roles and responsibilities for the Board of Directors and Management
- Performance culture at the center
- Experienced and seasoned Management team
5
A Bank with ESG at the heart of its operations
The Banks’ commitment to Environmental, Social and Governance (ESG) factors, started well before global trends. “Bukra”, a comprehensive and long-term corporate social responsibility strategy, is aligned with the best practices of the most important local, regional and global frameworks, including Vision 2030, and the UN Sustainable Development Goals.
Key Drivers and Accomplishments:
- Green and Renewable Banking SAR 7.4 Billion Riyad Bank’s financing contribution
- The bank received the ‘Mowaamah Golden Certificate’ for creating a work environment suitable for people with disabilities
- Full alignment of our 2025 Strategy with the objectives of Saudi Vision 2030