operational-review

Retail Banking

Enhancing customer experience. Always with you.

In 2023, Retail Banking shone in the face of a challenging business environment characterized by unprecedented high interest rates. The Division overcame suppressed credit growth and stressed margins to increase its deposit base and achieve double-digit growth in consumer loans.

Retail Banking stepped up as an even stronger contributor to Riyad Bank’s bottom line this year, contributing to 35% of the Bank’s overall net loans and advances.

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Retail Banking
Highlights
Net income

SAR 614 Mn.

Customer’s base increased by

10%

ATM’s NPS improved by

32%

Corporate Banking

Empowering our corporate partners. Always with you

Corporate Banking repeated its stellar strategic execution in 2023 to deliver outstanding value for our clients leading to exceptional results. The Division stepped up to opportunities, ranging from micro, small, and medium enterprises (MSMEs) to giga projects, and accelerated digital transformation and innovation to deliver another year of record-breaking growth.

Corporate Banking assets increased by 15% in 2023 from SAR 162 Bn. to SAR 186 Bn. Total operating income amounted to SAR 8.4 Bn., a dramatic improvement of 32% compared to SAR 6.4 Bn. in 2022. Net special commission income increased by 38% year on year to SAR 6.6 Bn., while fees and other income increased by 13% to SAR 1.8 Bn.

Awards and Achievements

The Corporate Banking Division helped Riyad Bank to take home several awards and recognitions in 2023. These included:

  • First ranking for the Kafalah MSME Finance Guarantee program in terms of value of financing, guarantees, and beneficiary enterprises.

  • The Global Trade Review Saudi Arabia 2023 ‘Sustainability in Trade’ Award.

  • Project Finance Institute (PFI) ‘Middle East and Africa Utility Deal of the Year’ for serving as mandate lead arranger and
    other agency roles for the USD 1.33 Bn. Red Sea Development Company utility project.

  • PFI ‘Middle East and Africa Public-Private Partnership Deal of the Year’ for serving as mandate lead arranger, onshore
    security agent, and onshore bank account for 3 independent sewage treatment plants in Madinah that raised USD 700 Mn.

  • PFI ‘Middle East and Africa Public-Private Partnership Deal of the Year’ for serving as coordinator, bookrunner, mandated lead arranger, onshore bank account, and an agency role for NEOM Helios, the first major international project for green hydrogen, worth USD 7 Bn.
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Corporate Banking
Highlights
Net income

SAR 5.6 Bn.

Total assets

SAR 186 Bn

Total operating income

SAR 8.4 Bn.

Green Projects
Funded in 2023

22

Total number

SAR 105 Bn.

Total Project Costs

SAR 23 Bn.

Total Riyad Bank Participation

MSME
Milestones

22%

Market share for MSMEs in Saudi Arabia.

USD 1 Bn.

In financing for telecommunications enterprises.

8

New partnership agreements.

5

Joint workshops with partners.

220

Cross-selling activities with Retail Banking.

Treasury and Investment

Securing landmark transactions. Always with you.

The Treasury and Investment Division was a key contributor to Riyad Bank’s profitable growth this year, as we managed the Bank’s liquidity and proprietary investments and provided a wide range of products and hedging solutions to our corporate and retail customers. Considering the current high market volatility, we provided the most innovative financial solutions to our clients in a bid to ease the financial burden arising from the high interest rate environment.

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Treasury and Investment
Highlights
Net income

SAR 2.2 Bn.

Investment’s net

SAR 58 Bn.

Commission income

SAR 998 Mn.

Awards and Recognitions

Bank Treasury and Funding Team of the Year 2022*

By GFC Media Group

Regulatory Capital Deal of the Year 2022*

By Islamic Finance News

*received in 2023
Subsidiaries

Diversifying our portfolio. Always with you.

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Division Capital
(SAR) 		Total Shares Ownership % Main Activity
Riyad Capital 500,000,000 50,000,000 100% Carrying out trading activities as principal and agent, undertaking coverage, establishing investment funds and portfolios, managing them, arranging and providing consulting, stock keeping services, portfolio management, and trading.
Ithraa Riyadh Real Estate 10,000,000 1,000,000 100% Keeping and managing assets provided by customers as collateral and a guarantee, and the sale and purchase of real estate for financing purposes for which the Company was established.
Riyad Company for Insurance Agency 500,000 50,000 100% Working as an agent selling insurance products, including their own and those managed by other main insurance companies.
Curzon Street Properties Limited 9,350,760 2,000 100% Owning properties.
Riyad Financial Markets Limited 187,500 50,000 100% Implementing financial derivative transactions and repurchase agreements with international parties on behalf of Riyad Bank.
Riyadh Esnad Company for Human Resources 500,000 500,000 100% Providing operational human resources services exclusively for Riyad Bank and its subsidiaries.
Jeel Digital Innovation Company 100,000,000 100,000,000 100% Supporting the Bank in building and developing innovative digital and technical solutions.