#1Al Rajhi Bank Investor Presentation 2Q 2023 Results مصرف الراجحي alrajhi bank#22Q 2023 Investor Presentation 2Q 2023 Investor Presentation 2 03 The World's Leading Islamic Bank 14 Bank of The Future Strategy 17 KSA Macro-Economic Environment 20 2Q 2023 Financial Highlights 34 FY 2023 Guidance 37 IR Contact Information 8#3The World's Leading Islamic Bank مصرف الراجحي alrajhi bank#4Al Rajhi Bank | Islamic Banking, Everywhere At a glance, 2Q 2023 100% Islamic 71% NPS Presence & Branches, 2Q 2023 66% Customers Jordan Kuwait CASA 10 2 513 Branches 4,644 ATMs 14.5 million 93:7 Digital:Manual 513 Saudi Arabia 13 Malaysia 577,172 POS 163 Remittance Centers 1H 2023 Strategic Highlights 1H23 Avg Trans./mth 777 million Active Digital Customers 12.2 million Training Days Employee Engagement Index 57 74% thousand 2Q 2023 Investor Presentation 4 1H 2023 Financial Highlights 8.4 8.3 Group Net Income After Zakat ▼-1% 1H 22 1H 23 Largest network in Saudi Arabia 11.4% YoY Net Financing Growth 21.7% Total Capital ratio 2.23% Cost of Funds 709.3 784.5 570.7 553.0 Total Assets +11% 1H 22 1H 23 1H 22 1H 23 Customer Deposits +1% 8#5Top 10 Facts About Al Rajhi Bank Largest Islamic Bank worldwide #1 Bank in KSA 1 6 (by Assets & Market Cap) (by number of customers) #1 Retail Bank in Middle East 2 7 (Retail Deposits & Income) One of the highest NPB deposit ratios 3 (66% Non-profit bearing deposits) 80 #1 Distribution network in Middle East (by # of Branches, POS, ATMs, Remittance Centres) #1 Banking transactions in KSA (777mn per month, average) 4 Bank capitalisation among the highest in GCC (21.7% Total Capital ratio) 9 #1 Bank for remittances in Middle East (by payment value) 5 #1 NPS in KSA (71% as on June 2023) 2Q 2023 Investor Presentation 5 10 #1 Bank brand in KSA (Brand Power Score) 8#6The World's Leading Islamic Bank | Robust balance sheet with 66% CASA deposits in 2Q 2023 Total Assets (SARbn) +104.3% 762 785 624 469 384 2019 2020 2021 2022 1H 23 Total Liabilities (SARbn) +104.7% 661 681 556 411 333 2019 2020 2021 2022 1H 23 2Q 2023 Investor Presentation 6 Capital Ratios (%) 21.4% 21.7% 19.9% 19.1% 17.5% 20.5% 20.3% 18.8% 18.0% 17.0% 17.2% 16.4% 2019 2020 2021 2022 CET1 ratio T1 ratio 1H 23 ■TC ratio Total Liabilities Mix By Type (SARbn) 681 Other, SAR 24.3bn Customers' Deposits, SAR 570.7bn As on 2Q 23 Banks, SAR 81.6bn 8#7The World's Leading Islamic Bank | Outstanding foundation and strong returns ROE (%) 23.9% 22.7% 20.5% 19.9% 19.6% 2019 2020 2021 2022 1H 23 Net Profit Margin (%) ROA (%) 2.76% 2.70% 2.56% 2.46% 2.15% 2019 2020 2021 2022 1H 23 Cost of Funds (%) 2.23% 5.22% 4.71% 4.21% 3.55% 0.97% 2.98% 0.17% 0.13% 0.22% 2019 2020 2021 2022 1H 23 2019 2020 2021 2022 1H 23 2Q 2023 Investor Presentation 7 8#8What sets Al Rajhi Bank Apart | ARB has the largest retail banking business in the Middle East Market Share - Demand Deposits +60bps 25.2% 25.9% 24.3% 25.2% 25.8% 2019 2020 2021 2022 1H 23 #2 in Saudi Arabia 2Q 2023 Investor Presentation 80 14.5 Million Active Customers #1 in Saudi Arabia Market Share - Deposits +600bps 24.2% 24.6% 23.3% 19.4% 17.3% 2019 2020 2021 2022 1H 23 #2 in Saudi Arabia &#9Al Rajhi Bank's Leading Network | The Bank has a large distribution network in Saudi Arabia... #1 in Branches Market Share - Branches +120bps 26.2% 27.0% 26.8% 26.8% 27.4% 2019 2020 2021 2022 1H 23 #1 in POS Market Share -POS (Terminals) +1020bps 37.5% 36.5% 32.2% 28.4% 26.3% #1 in ATMs Market Share - ATMs +120bps 29.6% 27.6% 28.2% 29.1% 28.8% 2019 2020 2021 2022 1H 23 #1 Remittance Centres Market Share - Remittance Centers -210bps 30.6% 30.6% 29.4% 27.9% 28.5% 2019 2020 2021 2022 1H 23 2019 2020 2021 2022 1H 23 2Q 2023 Investor Presentation 9 8#10Al Rajhi Bank has a unique franchise | We maintain a leading market share across key products #1 in Personal Loans Market Share - Personal Loans +450bps 44.6% 44.3% 40.6% 42.2% 37.7% 2019 2020 2021 2022 1H 23 #1 in Mortgages Market Share - Mortgages Loans +1020bps 42.9% 41.0% 42.5% 37.1% 32.3% #1 in Auto Loans Market Share - Auto Loans +90bps 51.8% 51.7% 46.8% 47.6% 47.7% 2019 2020 2021 2022 1H 23 #3 in Corporate Loans Market Share - Corporate Loans +510bps 11.9% 11.8% 8.7% 6.7% 6.6% 2019 2020 2021 2022 1H 23 2019 2020 2021 2022 1H 23 2Q 2023 Investor Presentation 10 8#11Al Rajhi Bank Market Performance | ARB maintained its momentum and outperform its peer group • Share Price Performance Top 3 KSA Banks (Daily; Rebased to 100) 350 300 250 200 150 100 RAJHI SNB Riyad TASI 30 June 2023 Key Metrics Closing Price Market Cap Market Cap / % Industry Market Cap / % Tadawul Shares outstanding Riyad, 208 RAJHI, 207 90D Volatility Price/Earnings Price / Book SAR 73.0 SAR 292.0 bn 31.6% 2.6% 4.0 bn 18.4 17.6 x 3.4 x TASI, 137 SNB, 101 Sources: Bloomberg; Tadawul; RAJHI Financials 50 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Ratings Moody's S&P Al Rajhi Bank SNB Riyad Bank House Kuwait Finance First Abu Dhabi Qatar National Bank Bank Emirates NBD Fitch Rebased to 100 207 101 208 223 112 100 158 As of 30 June 2023 73.0 SAR 36.8 SAR 33.7 SAR 745 KWD 13.6 AED 15.4 QAR 14.9 AED 2Q 2023 Investor Presentation 11 A1 << A- A- &#12ESG Highlights | 2Q 2023 SAR 785bn Total Assets SAR 8.3bn Net Profit after Zakat 0% Financing exposure in Tobacco, Alcohol & Gambling Financial Sustainability USD 1.2 bn Green syndicated loan Started using solar energy system in 44 branches to reduce utilities consumption Around SAR 3bn of financing renewable energy projects USD 1.0 bn Sustainable Sukuk 93:7 Digital to Manual Ratio Environmental SAR 41.6mn Donation in 2022 SAR 954mln Zakat paid SAR 1,757mln in salaries and benefits paid SAR 27.3bn in financing for SMEs Renovation Of children with disability Association clinic 6 Key social projects delivered 91 kidney transplants through Shifaa platform Social 10 batches of Graduate Development Program since 2015 56,900+ total training days ISO/DIS 37301:2020 Compliance ISO 22301:2019 Business Continuity Management 1,448 Sharia Board Resolutions 137 Policies & Frameworks 4 out of 11 Independent Board Directors Governance 109% growth in female employees in 2022 28% of female employees at the group level +100% growth in female customers since 2015 Gender Diversity 2Q 2023 figures 2Q 2023 Investor Presentation 12 8#13Awards | Recent international and local recognitions THE GLOBAL ECONOMICS The Global Economics • . Most Innovative Digital Bank Saudi Arabia 2021 Best New Mobile Banking Application Saudi Arabia 2021 seamless AWARDS Seamless Awards: . Digital Banking Experience of the Year • GLOBAL FINANCE Global Finance: Best mobile banking app award for corporate in the middle east Best in social media marketing & services award for consumer in the middle east 42020/ 2020 - المالية الدين جائزة أفضل برنامج Best Investor Relations Program Award Saudi Capital Market Awards: • • Best Investor Relations Program (2020) -Saudi Capital Markets Awards (2020) Best Investor Relations Program - (2021) Saudi Capital Markets Awards (2021) 2Q 2023 Investor Presentation 13 川 INTERNATIONAL FINANCE AWARDS Celebrating Excellence International Finance Awards: Best Mobile Banking Application • - Saudi Arabia Best Digital Bank - Saudi Arabia Most diversified Shari'ah compliant investment company سكني Sakani Program: • Best Bank Award • • WORLD FINANCE THE VOICE OF THE MARKET World Finance: • Best Consumer Digital Bank - 2021 Saudi Arabia - Best Mobile Banking App - 2021 - Saudi Arabia AWARD WINNERS 2021 Finance Best Financial Agency in the Real Estate sector Best Marketing Offer Award Best Sales Representative Award in the Real Estate Sector Global Banking and Finance: Best Digital Bank KSA 2021 8#14We are building the "Bank of the Future" مصرف الراجحي alrajhi bank#15We are building the "Bank of the Future" | Strategy 2021 - 2023 Bank Build on our core OF Outperform our competition Grow Retail including Private Sector Customer Experience The Transform technology Digital Core Banking Platform Future Focus on new client needs Become Leading Finance Company Expand Corporate Preferred Employer Data Leader for Customer Insights Develop Best Payments Solution Bank of Choice for SMEs Market Share Modernize our technology Grow Private Bank Grow Demand Deposits Preferred Loyalty Program Leverage our Infrastructure Expand customer reach Improve Revenue Mix Leader in Financial Conduct Adopt Agile Delivery Deepen Relationships via X-Sell 2Q 2023 Investor Presentation 15 8#16In strong position to deliver the "Bank of the Future" | Good progress made on strategy implementation Bank Build on our core OF Outperform our competition The Transform technology Future Focus on new client needs Grow Retail including Private Sector Retail financing growth SAR 251 Bn. FY 2020 Customer Experience Customer NPS 71% SAR 429 Bn. 66% 2Q 2023 FY 2020 Expand Corporate Corporate financing growth SAR 53 Bn. FY 2020 127% Bank of Choice for SMEs SME Financing growth SAR 10 Bn. FY 2020 Digital Core Banking Platform Digital/Manual ratio Become Leading Finance Company Emkan financing total (SAR) +5% 71% 2Q 2023 83/17 +10% 93/7 SAR 3.2 Bn. FY 2020 2Q 2023 FY 2020 Preferred Employer Employee Engagement Index SAR 121 Bn. 70% 2Q 2023 FY 2020 +4% Market Share Market share of KSA banking assets 177% SAR 27 Bn. 16.9% 2Q 2023 FY 2020 Grow Demand Deposits Demand Deposits growth SAR 333 Bn. FY 2020 11% +5% Preferred Loyalty Program Loyalty program customers enrolled 263% SAR 368 Bn. 2.4mm 2Q 2023 FY 2020 Improve Revenue Mix Non-yield Income to Operating Income 18.4% FY 2020 +6% 2Q 2023 Investor Presentation Leader in Financial Conduct ESG Rating 212% SAR 10.0 Bn. 2Q 2023 Data Leader for Customer Insights Active Digital Customer penetration Develop Best Payments Solution POS Market Share 74% 7.9mm 2Q 2022 FY 2020 54% Modernize our technology Number of Robots 21.9% 310 2Q 2023 FY 2020 12.2mm 2Q 2023 28.4% FY 2020 36.5% +8% 2Q 2023 Grow Private Bank New Private Banking products 65% 510 2Q 2023 FY 2020 Leverage our Infrastructure Alrajhi Banking App Rating 8.7mm 4.8 2Q 2023 FY 2020 Adopt Agile Delivery Transactions per month average 24.2% BB +1 BBB 295mm 2Q 2023 FY 2020 2Q 2023 FY 2020 16 163% Expand our customer reach Number of Active customers 4.7 9.6mm 2Q 2023 FY 2020 51% 17 2Q 2023 14.5mm 2Q 2024 Deepen Relationships via X-Sell 360-degree system to serve clients 777mm 2Q 2023 FY 2020 100% 2Q 2023 8#17KSA's Macro-Economic Environment مصرف الراجحي alrajhi bank#18KSA Economic Outlook | Economic conditions remain positive for the Kingdom Highlights • GDP grew by 1.1% in 2Q 2023 driven by higher non-oil activities • IMF revised down Saudi's GDP growth forecasts to 1.9% for 2023 and 2.8% for 2024 • Inflation eased to 2.7% in June 2023 and expected to normalize in 2024 to 2.3% Expenditure/Revenue and Asset Reserves (SARbn) 1,873 1,701 1,708 1,724 1,662* 1,268 1,164 1,059 1,076 1,039965 1,114 1,130 1,125 1,146 927 782 2019 2020 GDP Growth/Brent Oil Price 99.0 83.5 79.5 70.9 64.4 8.7 41.7 0.3 3.3 1.9 2.8 -4.1 2019 2020 2021 2022 2023 2024 I GDP Growth, Constant Prices (%) Brent Crude (USD/bbl) Source: IMF, U.S. Energy Information 3M SAIBOR / Inflation -0.1% 3.4% 3.3% 2.5% 2.8% 2.3% 5.8% 5.1% 3.2% 2.6% 1.2% 0.8% 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Government revenue SAMA asset reserves 3M SAIBOR (average %) Inflation (average consumer prices %) *June 2023 figure Source: SAMA, IMF, MOF 18 8 Government expenditure Source: MoF, SAMA 2Q 2023 Investor Presentation#19Banking Sector Highlights | Banking system deposits growth outpaced loans growth in 1H2023 Recent Developments Deposits growth in the banking system during first half outperformed loans growth SAMA LDR (%) & Bank Loans and Deposits (SARmn) 77.1% 75.0% 79.5% 81.5% 2,349 2,295 2,0592,104 • SRC benchmark rate remains unchanged since the latest change in March 2023 1,943 1,796 1,783 1,552 • Consumer spending increased by 8.9% in 1H2023 with continuous migration to cashless payment methods Retail Mortgage (SARbn) 78.7% 2,471 2,440 2019 2020 2021 2022 2Q 23 I Loans to private & public sectors Source: SAMA Total Deposits SAMA LDR POS/ATM & E-Commerce (SARbn) 1,237 59.1% 1,130 1,039 123 1,025 41.2% 41.4% 74 10 39 23.3% 288 19.1% 357 473 559 658 15.7% 75 550 567 302 446 741 315 629 582 555 198 140 281 2018 2019 2020 2021 2022 1Q 23 2019 Retail Mortgage loans (SARbn) YoY Growth (%) 2020 ■ATM withdrawls 2021 2022 1H 23 POS spending E-Commerce Spending Source: SAMA Source: SAMA 2Q 2023 Investor Presentation 19 8#202Q 2023 Financial Highlights مصرف الراجحي alrajhi bank#21First Half 2023 Results Summary | Results are in line with expectations 1.9% YTD Growth in financing portfolio 3.0% Growth in liabilities 3.0% YTD Balance Sheet Growth Net Financing Total Liabilities 568.3bn FY 22 +1.9% 579.1bn 1H 23 661.4bn +3.0% FY 22 681.3bn 1H 23 5.4% drop in net yield income, impacted by cost of funds 2.9% Non yield income growth 1.2% lower net income YoY Net Yield income Non Yield Income 10,907mn -5.4% 10,319mn 3,197mn +2.9% 3,289mn 1H 22 1H 23 1H 22 1H 23 14 bps COR reduction Stable credit quality Cost of risk 0.39% FY 22 Operating efficiency remains solid Key Ratios Cost to income ratio 25.4% 1H 22 2Q 2023 Investor Presentation 7 bps higher in NPL ratio NPL 0.25% 0.54% 1H 23 FY 22 26.7% 1H 23 21 Improved capital position Total Capital Adequacy Ratio 18.9% 1H 22 0.61% 1H 23 21.7% 1H 23 LDR below regulatory minima Loan to Deposit Ratio 85.9% FY 22 3.5% lower operating income 81.9% 1H 23 Operating Income 14,104mn -3.5% 13,608mn 1H 22 1H 23 NPL coverage remained strong NPL Coverage 260% FY 22 225% 1H 23 NPM Lower NPM 3.76% 1H 22 2.98% 1H 23 8#22Balance Sheet Trends (1) | Balance sheet growth of 3% YTD driven by Financing and Investments Total Assets (SARbn) SAR (mn) 2Q 23 1Q 23 QoQ 4Q 22 YTD +10.6% Cash & balances with SAMA Due from banks & other Fl 46,020 10,983 45,625 +1% 42,052 +9% 13,010 -16% 25,656 -57% 741 762 776 785 Investments, net 121,420 114,737 +6% 102,146 +19% 709 Financing, net Other assets, net Total assets Due to banks & other Fl Customers' deposits Sukuk issued 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Other liabilities Movement in Assets (SARbn) Total liabilities Total equity Movement in Funding (SARbn) 579,080 577,011 27,017 25,814 784,520 776,196 81,591 88,086 570,665 556,197 3,790 0 25,287 32,687 681,333 676,969 103,187 99,227 +0% 568,338 +2% +5% 23,456 +15% +1% 761,649 +3% -7% +3% 70,839 +15% 564,925 +1% 0 -23% +1% +4% 25,660 -1% 661,424 +3% 100,225 +3% 761.6 4.0 (14.7) +3.0% +3.0% 19.3 10.7 3.6 784.5 761.6 10.8 5.7 3.4 3.0 0.0 784.5 4Q 22 Cash & SAMA Interbank Investments, Financing, net Net Other Assets, Net 2Q 23 4Q 22 Interbank Customers' Deposits Sukuk & Other Liab. Equity T1 Sukuk 2Q 23 2Q 2023 Investor Presentation 22 8#23Balance Sheet Trends (2) | Financing growth driven by Mortgage and Corporate Financing, Net (SARbn) +11.4% 568.3 579.1 519.7 25.5 27.4 21.8 1.5 1.5 111.3 120.9 86.6 1.1 410.2 430.0 429.4 Financing, Net Mix By Segment (SARbn) Corporate SAR 121bn 21% SME SAR 27bn 5% Retail SAR 429bn 74% 2Q 22 4Q 22 ■Retail Corporate Financial institutions 2Q 23 ■SME Movement in Financing (SARbn) 568.3 7.6 (8.3) +1.9% 9.6 1.8 (0.0) 579.1 Mortgage Financing (SARbn) Financial Retail Financing Mix By Segment (SARbn) Institutions SAR 1.5bn 0% Mortgage SAR 229bn 53% +13.6% Auto Loans SAR 18bn 4% Credit Cards SAR 6bn 1% 214 222 225 229 202 4Q 22 Mortgage Other Retail Corporate SME Financial institutions 2Q 23 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 2Q 2023 Investor Presentation 23 Personal SAR 181bn 42% 8#24Balance Sheet Trends (3) | Balance sheet shows improving funding mix Total Liabilities (SARbn) +8.6% 661.4 681.3 627.4 25.3 31.9 25.7 196.6 271.5 274.4 398.9 2Q 22 ■Non-Profit Bearing Liabilities Total Customers' Deposits (SARbn) 364.2 377.8 4Q 22 2Q 23 Profit Bearing Liabilities Other +3.2% 553.0 564.9 570.7 155.8 202.0 193.0 8.7 11.3 9.7 388.5 351.5 367.9 Total Customers' Deposits Mix By Type (SARbn) Total Liabilities Mix By Segment (SARbn) Customers' Time Investments SAR 193bn 34% Treasury SAR 104bn 15% Other customer accounts SAR 10bn 2% Corporate SAR 261bn 39% Rajhi Capital SAR 0.9bn 0% Demand Deposits SAR 368bn 64% Movement in Total Customers' Deposits (SARbn) 564.9 16.4 +1.0% 570.7 (9.0) (1.6) 2Q 22 ■Demand deposits 4Q 22 2Q 23 4Q 22 Demand Time Other 2Q 23 Other customer accounts | Customers' time investments 2Q 2023 Investor Presentation 24 Retail SAR 315bn 46% 8#25Net Income Trends | net profit lower by 1.2% for the first half 2023 Net Income For The Period After Zakat (SARmn) SAR (mn) 1H 23 1H 22 YOY 2Q 23 2Q 22 YOY -2.5% Net financing & investment income Fee from banking services, net 10,319 10,907 -5% 5,194 5,567 -7% 2,339 2,310 +1% 1,129 1,163 -3% 4,258 4,355 4,404 4,145 4,150 Exchange Income, net Other operating income, net Fees and other income 589 545 +8% 362 342 +6% 3,289 Total operating income Operating expenses Pre-provision profit Total impairment charge Net income for the period before Zakat 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Zakat -954 Net income for the period after Zakat 8,295 291 308 -5% 214 111 +93% 3,197 +3% 1,634 1,581 +3% 13,608 14,104 -4% 6,827 7,148 -4% -3,640 -3,589 +1% -1,840 -1,820 +1% 9,968 10,515 -5% 4,988 5,328 -6% -719 -1,159 -38% -360 -580 -38% 9,249 9,357 -1% 4,627 4,747 -3% -477 -965 -1% -489 -2% 8,392 -1% 4,150 4,258 -3% Net Income After Zakat Growth Drivers By Type (SARmn) 4,145 68 +0.1% 4,150 (22) (40) (2) (1) Net Income After Zakat Growth Drivers By Type (SARmn) 8,392 (588) 92 22 -1.2% (51) 440 11 8,295 1Q 23 Yield Non-Yield Expenses Impairments Zakat 2Q 23 1H 22 Yield Non-Yield Expenses Impairments Zakat 1H 23 2Q 2023 Investor Presentation 25 8#26Operating Income Trends | Lower operating income driven by higher cost of funding Total Operating Income (SARmn) -4.5% 7,148 7,206 7,264 6,781 6,827 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Net Profit Margin (%) 5.14% 5.21% 4.26% 4.34% 4.52% 3.00% 2.98% 3.76% 3.66% 3.55% 0.50% 0.68% 2.14% 2.23% 0.97% Total Operating Income Growth Drivers By Type (SARmn) 14,104 (588) 28 -3.5% 44 19 13,608 1H 22 Net Yield Fee banking services, net Exchange income, net Other income, 1H 23 net NPM Drivers (%) -78 bps 0.29% 0.37% 0.23% 3.76% 0.06% 2.98% -1.73% 1H 22 Retail 1H 22 9M 22 NPM (%) FY 22 Gross Yield (%) 1Q 23 1H 23 Corporate Treasury CoF Mgmt Actions 1H 23 CoF (%) 2Q 2023 Investor Presentation 26 8#27Expenses Trends | Cost efficiencies remains solid Operating Expenses (SARmn) +1.1% 2,001 1,820 1,861 1,800 1,840 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Cost To Income Ratio (%) Operating Expenses Growth Drivers By Type (SARmn) +1.4% 101 148 3,589 3,640 (198) 1H 22 Salaries & Benefits Depreciation Other G&A expenses 1H 23 Cost to Income Ratio Drivers (%) 1.1% 25.4% 25.6% 26.1% 26.5% 26.7% 25.4% -0.2% 130 bps 0.7% 1.1% 26.7% -1.5% 1H 22 9M 22 FY 22 1Q 23 1H 23 1H 22 Yield Income Non-Yield Income Staff Depreciation G&A 1H 23 2Q 2023 Investor Presentation 27 &#28Net Impairment & Cost of Risk | Lower net impairment resulted in cost of risk improvement Net Impairment Charges (SARmn) -37.9% 580 490 353 359 360 Cost of Risk (%) 0.47% 0.43% 0.39% 0.25% 0.25% 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 1H 22 9M 22 FY 22 1Q 23 1H 23 Movement in Net Impairment (SARmn) 1,159 -37.9% (310) (130) 719 Movement in Net Impairment by Group (SARmn) -37.9% 843 1,159 719 (1,282) 1H 22 Gross charges Recoveries 1H 23 1H 22 Retail Non-Retail 1H 23 2Q 2023 Investor Presentation 28 8#29Asset Quality Trends (1) | Asset quality remains healthy with high NPL coverage Movement in NPL (SARmn) 3,085 (46) +15.8% 535 3,574 4Q 22 Retail Non-Retail 2Q 23 NPL Ratio (%) 1.37% 1.10% 1.13% 0.99% 0.84% 0.57% 0.55% 0.54% 0.60% 0.61% 0.44% 0.46% 0.35% 0.38% 0.43% NPL Formation (SARmn) +15.8% 2,127 3,574 3,085 (1,638) 4Q 22 Write off Netflow 2Q 23 NPL coverage ratio (%) 293.0% 272.3% 260.2% 230.4% 225.0% 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Retail Non-Retail Group 2Q 2023 Investor Presentation 29 8#30Asset Quality Trends (2) | Healthy stage coverage reflecting prudent risk management ECL by Stage (SARmn) 8,861 8,028 8,041 3,061 3,037 3,600 2,157 1,715 1,571 3,643 3,276 2,870 2Q 22 4Q 22 2Q 23 ■Stage 1 Stage 2 Stage 3 Gross Loans by Stage (SARbn) +11.1% 576.4 587.1 4.7 6.0 528.6 4.3 12.0 9.6 9.8 514.4 562.0 569.1 2Q 22 4Q 22 ■Stage 1 Stage 2 2Q 23 Stage 3 2Q 2023 Investor Presentation 30 Movement in ECL by Group (SARmn) -9.3% 519 8,861 8,041 (1,339) 2Q 22 Retail Non-Retail 2Q 23 ECL Coverage (%) 70.7% 64.1% 59.9% 21.9% 17.9% 13.1% 0.71% 0.58% 0.50% 2Q 22 4Q 22 2Q 23 Stage 1 Stage 2 Stage 3 8#31Liquidity Trends | Liquidity remains comfortably within regulatory requirements HQLA (SARbn) LCR (%) +15.2% 118.1 122.0 126.7 110.0 112.7 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 142.8% 135.4% 121.0% 121.2% 125.8% Regulatory Minimum 100% 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 2Q 2023 Investor Presentation 31 Loan to Deposits Ratio (SAMA) (%) 88.4% 87.8% 85.9% 83.8% 81.9% 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 NSFR (%) 109.7% 110.0% 110.0% 108.9% 111.1% 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Regulatory Maximum 90% Regulatory Minimum 100% 8#32Capitalization Trends | Capital position well above regulatory minima RWA (SARbn) +6.9% 498.0 503.5 471.1 38.4 42.3 37.8 2.7 1.6 5.1 430.7 454.0 460.0 2Q 22 4Q 22 Credit risk Market risk 2Q 23 Operational risk Capital Ratios (%) Total Capital (SARbn) +22.4% 109.0 106.6 5.7 5.7 89.1 5.4 100.9 83.7 103.3 2Q 22 4Q 22 Total tier 1 capital (T1) 2Q 23 Tier 2 capital (T2) Tier 1 Drivers (%) 0.25% 21.4% 21.7% 20.9% 20.5% 19.4% 20.3% 1.6% 0.0% 20.3% 18.9% 19.7% 0.0% 20.5% -0.1% -0.2% -1.0% 17.8% 18.2% 17.2% 16.4% 16.9% 17.0% 16.5% 2Q 22 3Q 22 4Q 22 1Q 23 CET1 ratio T1 ratio 2Q 23 -TC ratio 4Q 22 Dividends YTD Profit Other reserves FTA + Goodwill Sukuk RWA 2Q 23 2Q 2023 Investor Presentation 32 8#33Return Metrics | Al Rajhi Bank's returns remain industry-leading Return on RWA (%) 3.74% 3.76% 3.71% 3.31% 3.31% 1H 22 9M 22 FY 22 1Q 23 1H 23 Return on Equity (%) 23.43% 23.08% 22.68% 19.58% 19.59% Earnings per Share (SAR) -6.7% 1.05 1.07 1.08 0.99 0.98 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Return on Assets (%) 2.55% 2.50% 2.46% 2.17% 2.15% 1H 22 9M 22 FY 22 1Q 23 1H 23 1H 22 9M 22 FY 22 1Q 23 1H 23 2Q 2023 Investor Presentation 33 8#34FY 2023 Guidance مصرف الراجحي alrajhi bank#35FY 2023 Assumptions and Outlook | High interest rates is expected to weigh on credit demand Economy Interest Rates Strategy & Execution 2Q 2023 Investor Presentation يو • • IMF revised down Saudi GDP growth forecasts to 1.9% in 2023 and 2.8% in 2024 • • Saudi economy grew by 1.1% in 2Q23, driven by 5.5% growth in non-oil activities and 4.2% contraction in oil activities. Consumer spending increased by 8.9% in 1H 2023 on the back of improved economic activities Mortgage growth impacted due to the recent subsidy program changes while non-retail growth remains healthy Interest rates are expected to peak in early 3Q 2023 and then stay flat for the remaining of the year • • Higher interest rates is expected to weigh on credit demand and deposits mix in 2023 Gross yields trend is expected to continue improving during the year reducing cost of funding pressure SRC benchmark rate remains unchanged since the latest change in March 2023 • "Bank of the Future" strategy delivery is in-line or ahead of expectations • Strategy execution is on track to build a financial ecosystem addressing changing customer needs • The focus will continue to improve the bank overall efficiencies through several initiatives ESG remains a focus for the management to build a sustainable business that contributes to the bottom line 35 8#36FY 2023 Guidance | Progressing in line with "Bank of The Future" strategy Balance Sheet Financing Net profit margin Profitability Cost to income ratio ROE FY 2023 Guidance 1H 2023 Actual Guidance Revision Mid single digit +1.9% Mid single digit -25 bps to -35 bps -57 bps ↓ -40 bps to -50 bps Below 27% 26.7% Above 20% 19.59% Below 27.5% Above 19% Asset Quality Cost of risk 0.30% -0.40% 0.25% ↑ 0.20% -0.30% Capital Tier 1 ratio Above 20% 20.5% 2Q 2023 Investor Presentation 36 Above 20% &#37IR Contact Information مصرف الراجحي alrajhi bank#38Additional Information | Contact investor relations for more information Rayan Alshuaibi Director of Investor Relations +966 (11) 828 1972 [email protected] Abdulrahman Alyami Manager Investor Relations +966 (11) 828 3586 [email protected] Visit our website (here) for more Investor disclosers: Annual Report • Awards 2020 | 2020. Saudia Market A جائزة أفضل برنامج علاقات مستثمرين Best Investor Relations Program Award مصرف الراجحي Al Rajhi Bank السعودية جوائز السوق المالية ال المالية السعودية 2021 farket Awards جائزة أفضل برنامج علاقات مستثمرين Best Investor Relations. Program Award مصرف الراجحي Al Rajhi Bank Alrajhi Mobile App O Alrajhi Business App Alrajhi IR App O Factsheet Financial Statements • Data Supplement Investor Presentation • Earnings Release Alrajhi Tadawul Mobile App Emkan App urpay App 2Q 2023 Investor Presentation &#39Disclaimer • 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 INFORMATION CONTAINED ON THIS DOCUMENT IS PROVIDED FOR GENERAL INFORMATION ONLY AND SHOULD NOT BE USED AS A BASIS FOR MAKING BUSINESS DECISIONS. 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