#1Al Rajhi Bank Results Presentation 1Q 2021 Earnings Conference Call and Webcast مصرف الراجحي Al Rajhi Bank 0#21Q 2021 Strategy and Financial Performance Update Earnings Call 03 An excellent start to 2021 08 1Q 2021 Financial Performance 04 Bank Of The Future 21 ESG Highlights 05 KSA's Macro-Economic Environment مصرف الراجحي Al Rajhi Bank 0#3ARB had an excellent start to the year 2021 Results in line with or ahead of expectations Strong 9% QoQ Balance Sheet Growth 13% Growth in financing driven by mortgages 10% Growth in liabilities Stable LDR Net Financing Total Liabilities Loan to Deposit Ratio +12.8% 315.7bn 4Q 2020 +10.3% 356.1bn 1Q 2021 410.7bn 4Q 2020 453.Obn 79% - 4Q 2020 1Q 2021 کمر Solid 40% net income growth YoY 16% Net yield income growth, impacted by slightly lower NPM Net Yield income 4,110mn 1Q 2020 +16% 37% Non yield income growth Non Yield Income +37% 4,771mn 857mn 1Q 2021 1Q 2020 COR stable Stable credit quality Cost of risk 0.75% FY 2020 مصرف الراجحي Al Rajhi Bank 81% 1Q 2021 20% Operating Income growth Operating Income 1,177mn 4,968mn 1Q 2021 1Q 2020 +20% 5,948mn 1Q 2021 Moderate improvement in NPL ratio from strong loan growth NPL 0.76% 4Q 2020 0.67% 0.70% 1Q 2021 1Q 2021 NPL coverage remained strong and stable NPL Coverage 306% 4Q 2020 - 318% 1Q 2021 Key Ratios Improved operating efficiency by 4.8ppt Cost to income ratio 32.6% 1Q 2020 Capital position above regulatory minima Total Capital Adequacy Ratio 18.6% Al Rajhi Bank 1Q 2021 Results Presentation 1Q 2020 27.8% 1Q 2021 3. 17.9% 1Q 2021 Lower NPM NPM 5.00% 4.56% 1Q 2020 1Q 2021 Bank Of The Future#4In strong position to deliver the "Bank of the Future" Strategy 2021-2023 - Selected Metrics مصرف الراجحي Al Rajhi Bank = Build on our core → FOCUS AREA PROGRESS = Outperform our competition →> = Transform technology →> = Focus on new client needs → FOCUS AREA PROGRESS FOCUS AREA PROGRESS FOCUS AREA PROGRESS Grow Retail including Private Sector Retail financing growth 2021 YTD Customer Experience Customer NPS Digital Core Banking Platform Digital / Manual ratio Become Leading Finance Company Emkan financing total (SAR) +13% 69% 85/15 3.4bn Expand Corporate Preferred Employer Corporate Financing growth 2021 YTD Employee Engagement Index Data Leader for Customer Insights Active Digital Customer penetration Develop Best Payments Solution POS Market Share +12% 70% 87% 30% Bank of Choice for SMEs Market Share SME Financing growth 2021 YTD Market share of KSA banking assets Modernize our technology Number of Robots Grow Private Bank New products for Private Banking clients +8% 17% 328 11 Grow Current Accounts Preferred Loyalty Program Leverage our Infrastructure Current Accounts growth 2021 YTD Loyalty program customers enrolled Al Rajhi Banking App Rating Expand our customer reach Number of Active customers +8% 3mn 4-7 10mn Improve Revenue Mix Leader in Financial Conduct Non-yield Income to Operating Income ESG Rating 20% Bank Sources: Al Rajhi Bank, SAMA, Bank Financial Statements Al Rajhi Bank of BB Adopt Agile Delivery Transactions per month Deepen Relationships via X-Sell 360-degree system to serve clients 392mn 100% 1Q 2021 Results Presentation 4 P the Bank Of The Future Future 困 8#51Q 2021 Strategy and Financial Performance Update KSA's Macro-Economic Environment مصرف الراجحي Al Rajhi Bank 0#6KSA Economic Outlook Covid-19 pandemic disruptions have eased Highlights IMF has revised up 2021 GDP growth forecast to 2.9% driven by recovery in oil prices and economic activities. ■ Saudi is keeping its fiscal expenditure at the budgeted level. ■ Average inflation is forecasted to be 2.9% in 2021. Expenditure/Revenue and Asset Reserves (SARbn) 1,862 926 696 1,862 1,873 GDP Growth / Brent Oil Price 54.13 -0.7 2017 71.19 64.37 41.69 2.4 0.3 -4.1 2018 2019 2020 مصرف الراجحي Al Rajhi Bank 62.28 60.49 2.9 4.0 2021 2022 IGDP Growth, constant prices (%) --Brent Crude (USD/bbl) Source: IMF, U.S. Energy Information 3M SAIBOR / Inflation 2.6% 3.40% 2.90% 1,701 2.0% 1,655* -0.9% -0.1% 1,079 1,076 906 1,059927 990 782 849 955 864 2017 2018 2019 2020 General government total expenditure SAMA asset reserves Source: MoF, SAMA Al Rajhi Bank 2021 General government revenue * Feb. 2021 figure 1Q 2021 Results Presentation 1.8% 2.5% 2.6% 1.2% 0.7% 0.8% 2022 2017 2018 2019 2020 2021 2022 3M SAIBOR (average %) -Inflation, average consumer prices %) Source: SAMA, IMF, MOF 6 Bank Of The Future#7Banking Sector Highlights Growth in mortgage lending continues to drive up credit growth مصرف الراجحي Al Rajhi Bank Recent Developments SRC reduced mortgage reference rate, starting from 1st of April. ■ REDF reduced the tenor of mortgages eligible for subsidies to a maximum of 20 years from 25 years previously. MSME deferral program extended the tenor of the facilities for eligible clients, which may impact modification losses. LDR (%) & Bank Loans and Deposits (SARmn) 80.1% 77.4% 77.1% 75.0% 75.9% 1,943 1796 1,633 1,674 1,783 1,837,9 1,957 1,552 1,443 1,405 Retail Mortgage (SARbn) 59.1% 41.4% 9.9% 15.3% 2017 2018 8 2019 2020 Total Deposits Feb-21 - LDR I Loans to Private & Puplic sectors Source: SAMA POS/ATM & E-Commerce (SARbn) 981 1,039 1,025 929 10 39 200 232 288 357 174 729 748 741 629 68 9 121 140 198 315 97 2017 2018 Retail mortgage loans (SARbn) Source: SAMA Al Rajhi Bank 2019 2020 --YoY Growth (%) 1Q 2021 Results Presentation 7 2017 2018 2019 2020 Feb-21 YTD I ATM Withdrawals ■POS spending E-Commerce spending * Source: SAMA *E-Commerce started in 2019 Bank Of The Future#81Q 2021 Strategy and Financial Performance Update 1Q 2021 Financial Highlights مصرف الراجحي Al Rajhi Bank 0#9Balance Sheet Trends (1) Strong 9% QoQ balance sheet growth Total Assets (SARbn) +30.7% SAR (mn) مصرف الراجحي Al Rajhi Bank 1Q 2021 4Q 2020 QoQ 1Q 2020 YOY Cash and balances with SAMA 38,562 47,363 -19% 36,293 +6% Due from banks and other Fl 31,730 28,655 +11% 28,014 +13% 512 469 Investments, net 67,968 60,285 +13% 49,658 +37% 392 418 430 Financing, net 356,144 315,712 +13% 261,385 +36% Other assets, net 17,829 16,810 +6% 16,552 +8% Total assets 512,234 468,825 +9% 391,901 +31% Due to banks and other FI 9,731 10,764 -10% 5,511 +77% Customers' deposits 421,269 382,631 +10% 315,661 +33% Other liabilities 22,012 Total liabilities 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 Total shareholders' equity 453,011 59,222 17,311 +27% 410,706 +10% 58,119 +2% 21,143 +4% 342,315 +32% 49,587 +19% Movement in Assets (SARbn) 468.8 (8.8) 4Q 20 Al Rajhi Bank +9.3% Movement in Funding (SARbn) 40.4 1.0 512.2 3.1 7.7 468.8 (1.0) Cash & SAMA Interbank Investments, Financing, Other Assets, Net Net Net 1Q 2021 Results Presentation 1Q 21 9 +9.3% 38.6 4.7 1.1 512.2 4Q 20 Interbank Customers' Other deposits liabilities Total equity 1Q 21 Bank Of The Future#10Balance Sheet Trends (2) مصرف الراجحي Al Rajhi Bank Solid growth in customers deposits; Financing growth driven by mortgage growth Financing, Net (SARbn) +36.3% Movement in Financing (SARbn) +12.8% 356.1 7.0 315.7 6.5 21.0 11.5 7.5 0.5 0.0 356.1 261.4 64.1 1.9 315.7 4.5 56.6 1.9 57.3 2.8 283.1 250.7 196.8 1Q 20 4Q 20 4Q 20 Mortgage 1Q 21 Other retail Corporate SME Financial institutions 1Q 21 ■Retail Corporate Financial institutions SME Total Customers' Deposits (SARbn) Total Customers' Deposits Drivers (SARbn) +10.1% 421.3 25.8 12.0 0.8 421.3 55.1 382.6 +33.5% 382.6 43.0 315.7 7.5 291.3 18.6 5.7 - 6.7 358.7 332.9 1Q 20 4Q 20 1Q 21 Demand Other customer accounts | Customers' time investments Al Rajhi Bank 1Q 2021 Results Presentation 10 4Q 20 Demand Time Other 1Q 21 Bank Of The Future#11Net Income Trends Solid net profit growth of 40% YoY مصرف الراجحي Al Rajhi Bank Net Income For The Period Before Zakat (SARmn) SAR (mn) 1Q 2021 4Q 2020 QoQ 1Q 2020 YOY +40.1% Net financing and investment income Fee from banking services, net 4,771 4,638 +3% 4,110 +16% 909 864 +5% 618 +47% 3,480 3,719 Exchange Income, net 175 210 -16% 207 -15% 2,654 2,716 2,963 Other operating income, net 93 82 +13% 32 +190% Fees and other income Total operating income 1,177 1,155 +2% 857 +37% 5,948 5,794 +3% 4,968 +20% Operating expenses (1,652) (1,763) -6% (1,621) +2% Pre-provision profit 4,296 4,030 7% 3,347 28% Total impairment charge (577) (550) +5% (693) -17% Net income for the period before Zakat Zakat 3,719 3,480 +7% 2,654 +40% (383) (359) +7% (274) +40% 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 Net income for the period after Zakat 3,335 3,121 +7% 2,380 +40% Net Income Before Zakat Growth Drivers By Type (SARmn) 660 320 2,654 +40.1% (31) Net Income Before Zakat Growth Drivers By Type (SARmn) +6.9% 116 3,719 3,480 132 22 112 1Q 20 Yield Non- Expenses Yield Impair- ments 1Q 21 Al Rajhi Bank 1Q 2021 Results Presentation 11 (27) 3,719 4Q 20 Yield Non- Expenses Yield Impair- ments 1Q 21 Bank Of The Future#12Operating Income Trends Solid operating income growth, inline with our strategy Total Operating Income (SARmn) +19.7% 4,968 5,794 5,948 4,808 5,152 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 Net Profit Margin (%) مصرف الراجحي Al Rajhi Bank Total Operating Income Growth Drivers By Type (SARmn) 291 660 4,968 +19.7% (32) 61 5,948 1Q 20 Net yield income Fee from banking services, net Exchange Income, net Other operating 1Q 21 income, net NPM drivers (%) -0.4% 8 5.00% 5.00% 4.80% 4.72% 4.71% 4.56% -0.04% 0.04% 4.56% -0.13% -0.19% -0.12% 1Q 20 1H 20 9M 20 FY 20 1Q 21 1Q 20 Modification loss Fee Waiver SAIBOR Impact Lower Spreads Management Actions 1Q 21 Al Rajhi Bank 1Q 2021 Results Presentation 12 Bank Of The Future#13Expenses Trends Digital platforms drive cost efficiencies and higher positive jaws مصرف الراجحي Al Rajhi Bank Cost To Income Ratio Trend (%) 32.6% 33.3% 33.4% 32.5% 27.8% Cost to Income Ratio drivers (%) 32.6% -4.8% 0.4% 0.4% 27.8% -3.6% -1.7% -0.3% 1Q 20 NII Non Yield Staff Depreciation G&A 1Q 21 1Q 20 1H 20 9M 20 FY 20 1Q 21 Operating Expenses (SARmn) +1.9% Operating Expenses Growth Drivers By Type (SARmn) 1,621 1,634 1,724 1,763 1,652 1,621 24 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 Al Rajhi Bank 1Q 2021 Results Presentation 13 +1.9% (17) 23 1,652 1Q 20 Salaries & benefits Depreciation Other G&A 1Q 21 expenses Bank Of The Future 8#14Asset Quality Trends (1) Asset quality remains healthy and NPL coverage remains strong and stable مصرف الراجحي Al Rajhi Bank Impairment Charges (SARmn) & COR (%) 1.05% 0.85% 0.78% 0.75% 0.67% 693 1,151 1,616 2,166 577 1Q 20 1H 20 9M 20 FY 20 1Q 21 COR (%) I Net Impairement Charge (SARmn) NPL Ratio Trends (%) 3.22% Net Allowances (SARmn) -16.7% 140 693 (255) 577 1Q 20 Gross Allowance Recoveries 1Q 21 NPL Coverage Trend (%) 2.81% 2.71% 2.51% 2.13% 1.07% 1.02% 0.84% 0.76% 293.0% 305.4% 317.7% 0.70% 253.2% 252.8% 0.33% 0.40% 0.26% 0.30% 0.32% 1Q 20 - NPL ratio 2Q 20 3Q 20 --Retail 4Q 20 1Q 21 --Corporate Al Rajhi Bank 1Q 2021 Results Presentation 14 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 Bank Of The Future 8#15Asset Quality Trends (2) Healthy stage coverage and prudent risk management Gross Loans by Stage (SARbn) Covid Overlay (SARbn) +35.4% 364.3 2.6 323.2 2.4 9.5 269.0 423 2.9 9.5 313 295 7.9 352.2 311.3 257.9 1Q 20 4Q 20 1Q 21 Stage 1 Stage 2 Stage 3 ECL Coverage* (%) مصرف الراجحي Al Rajhi Bank 608 631 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 ECL Allowance by Stage* (SARmn) 8.1 7.3 7.5 91.6% 82.8% 84.0% 2.1 2.6 2.0 2.8 2.5 2.3 28.6% 0.93% 26.4% 0.95% 29.1% -0.91% 2.9 3.2 2.4 1Q 20 Stage 1 4Q 20 Stage 2 1Q 21 Stage 3 1Q 20 4Q 20 1Q 21 Stage 1 Stage 2 Stage 3 * Stage exposure and ECL allowances varies from the financial statements due to IFRS9 cure period treatment Al Rajhi Bank 1Q 2021 Results Presentation 15 Bank Of The Future 8#16Liquidity Trends Liquidity remain comfortably within regulatory requirements LCR (%) 177% 164% 150% 155% 142% 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 HQLA (SARbn) 67.7 Al Rajhi Bank +17.7% 81.4 79.7 1Q 20 4Q 20 1Q 21 1Q 2021 Results Presentation Loan to deposit Ratios (%) مصرف الراجحي Al Rajhi Bank 82.1% 78.8% 79.9% 80.6% 78.8% 8 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 NSFR (%) 127% 127% 124% 123% 116% 16 46 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 Bank Of The Future#17Capitalisation Trends Capital position well above regulatory minima مصرف الراجحي Al Rajhi Bank RWA (SARbn) Total Capital (SARbn) +25.2% +19.9% 353 323 33 62 63 282 33 10 31 53 310 280 58 4 59 242 50 1Q 20 Credit risk 4Q 20 Market risk 1Q 21 Operational risk 1Q 20 4Q 20 1Q 21 Tier 1 Capital (CET1) Tier 2 capital (T2) Capital Ratios (%) CET1 Movement (%) 19.0% 19.3% 18.6% 19.1% 18.0% 17.9% 18.0% 18.2% 18.0% 17.6% 16.8% 1Q 20 2Q 20 3Q 20 4Q 20 ――TC ratio ――CET1 ratio Al Rajhi Bank 1Q 2021 Results Presentation -0.7% -1.24% 0.2% 0.1% 16.8% -0.8% 1Q 21 4Q 20 Dividends YTD Profit Other RWA 1Q 21 reserves 17 Bank Of The Future 8#18Return Metrics Returns remain well above industry average Return on RWA (%) Earnings per Share (SAR) +40.1% مصرف الراجحي Al Rajhi Bank 3.94% 3.43% 3.43% 3.47% 3.56% 1.25 1.33 0.95 0.97 1.06 1Q 20 1H 20 9M 20 FY 20 1Q 21 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 Return on Equity (%) Return on Assets (%) 8 22.43% 18.36% 18.78% 19.16% 19.94% 2.49% 2.46% 2.48% 2.56% 2.75% 1Q 20 1H 20 9M 20 FY 20 1Q 21 Al Rajhi Bank 1Q 2021 Results Presentation 18 1Q 20 1H 20 9M 20 FY 20 1Q 21 Bank Of The Future#19Trends ahead of expectations Guidance revisions driven by solid growth in 1Q مصرف الراجحي Al Rajhi Bank FY 2021 Guidance 1Q 2021 Actual Guidance Revision Balance Sheet Financing Mid teens growth +13% High teens growth Net profit margin -30 bps to -20 bps -15 bps -40 bps to -30 bps Profitability Cost to income ratio Below 31% 27.8% Below 30% ROE 20% -21% 22.4% 21% -22% Asset Quality Cost of risk 0.60% -0.70% 0.67% Unchanged Capital CET1 ratio 17%-18% 16.8% 16% -17% Al Rajhi Bank 1Q 2021 Results Presentation 19 10 Bank Of The Future#201Q 2021 Strategy and Financial Performance Update Questions & Answers مصرف الراجحي Al Rajhi Bank 0#211Q 2021 Strategy and Financial Performance Update ESG Highlights مصرف الراجحي Al Rajhi Bank 0#22ESG Highlights 1Q 2021 مصرف الراجحي Al Rajhi Bank Window film at branches to reduce energy use SAR 49m Donation in 2020 7 batches of Graduate Development Program since 2015 ISO 22301: 2019 Business Continuity Management ISO/DIS 37301: 2020 Compliance 94 women- owned suppliers engaged SAR 512bn Total Assets 32% of loans and project finance integrate ESG factors SAR383mln Zakat paid 94 Social responsibility programs in 29 cities 1,198 Sharia Board Resolutions 40% growth in female employees since 2015 0% Financing exposure in Tobacco, Alcohol & Gambling SAR3.3bn Net Profit after Zakat ISO Green Certification for new head office building SAR 758min in salaries and benefits paid 13,125 of volunteering hours Clocked 134 Policies & Frameworks 16% total number of female employees Financial Sustainability Al Rajhi Bank 85:15 Digital to SAR 7.0 bn in financing Manual Ratio for SMEs 22,000+ total training days 7/11 Independent Board Directors Environmental 1Q 2021 Results Presentation Social 22 22 Governance 67% growth in female customers since 2015 Bank Of The Future Gender Diversity 1Q 2021 figures#23Additional Information Contact investor relations for more information Mr. Rayan Alshuaibi Head of Investor Relations Tel: +966 (11) 828 1972 Email: [email protected] Mr. Faisal F. Altimyat Investor Relations Specialist Tel: +966 (11) 828 1457 Email: [email protected] Address: Al Rajhi Bank PO Box: 28 Riyadh 11411 8467 King Fahd Branch Rd, Al Muruj, Riyadh 11564 Al Rajhi Bank مصرف الراجحي Al Rajhi Bank Visit our website (here) for more Investor disclosers: Annual Report • Financial Statements • Investor Presentation Factsheet Data Supplement 2020 2020 جائزة أفضل برنامج علاقات مستثمرين Sau Market Awards Best Investor Relations Program Award مصرف الراجحي Al Rajhi Bank DVAZO جوائز السوق المالية السعودية OXXO Al-Rajhi Banking App eBusiness Banking App Investor Relations App 1Q 2021 Results Presentation 23 Bank Of The Future#24Disclaimer مصرف الراجحي Al Rajhi Bank 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. 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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. Al Rajhi Bank 1Q 2021 Results Presentation 24 Bank Of The Future