#1Al Rajhi Bank Investor Presentation 3Q 2023 Results مصرف الراجحي alrajhi bank#23Q 2023 Investor Presentation 3 Q2 0 2 3 Investor Presentation 2 03 The World's Leading Islamic Bank 14 Bank of The Future Strategy 17 KSA Macro-Economic Environment 20 3Q 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, 3Q 2023 100% Islamic Presence & Branches, 3Q 2023 67% Customers Jordan Kuwait CASA 10 2 511 Branches 4,604 ATMs 15.2 million 73% NPS 94:6 Digital:Manual 511 Saudi Arabia 13 Malaysia 581,700 POS 163 Remittance Centers Largest network in Saudi Arabia 9M 2023 Strategic Highlights 9M23 Avg Trans./mth 817 million Active Digital Customers 12.5 million 9M 2023 Financial Highlights 12.7 12.5 Group Net Income After Zakat -4.6% 5.9% YoY Net Financing Growth 20.8% Total Capital ratio 2.34% Cost of Funds 9M 22 9M 23 Training Days Employee Engagement Index 81 thousand 74% 740.0 801.5 565.7 555.8 Total Assets +8% 3 Q 2023 Investor Presentation 4 9M 22 9M 23 9M 22 9M 23 Customer Deposits +2% 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 (Retail Deposits & Income) #1 Distribution network in Middle East 7 (by # of Branches, POS, ATMs, Remittance Centres) One of the highest NPB deposit ratios 3 (67% Non-profit bearing deposits) 8 #1 Banking transactions in KSA (817mn per month, average) 4 Bank capitalisation among the highest in GCC (20.8% Total Capital ratio) #1 Bank for remittances in Middle East 9 (by payment value) #1 NPS in KSA 5 (73% as on Sep 2023) 3 Q2 0 2 3 Investor Presentation 5 10 #1 Bank brand in KSA (Brand Power Score) 8#6The World's Leading Islamic Bank | Robust balance sheet with 67% CASA deposits in 3Q 2023 Total Assets (SARbn) +108.7% 801 762 624 469 384 2019 2020 2021 2022 9M 23 Total Liabilities (SARbn) +110.0% 699 661 556 411 333 2019 2020 2021 2022 9M 23 3 Q 2023 Investor Presentation 6 Capital Ratios (%) 21.4% 20.8% 19.9% 19.1% 17.5% 20.3% 19.6% 18.8% 18.0% 17.0% 16.4% 16.5% 2019 2020 2021 2022 CET1 ratio T1 ratio 9M 23 ■TC ratio Total Liabilities Mix By Type (SARbn) 699 Other, SAR 28.3bn Customers' Deposits, SAR 565.7bn As on 3Q 23 Banks, SAR 100.1bn 8#7The World's Leading Islamic Bank | Outstanding foundation and strong returns ROE (%) 23.9% 22.7% 20.5% 19.9% 19.5% 2019 2020 2021 2022 9M 23 Net Profit Margin (%) ROA (%) 2.76% 2.70% 2.56% 2.46% 2.14% 2019 2020 2021 2022 9M 23 Cost of Funds (%) 2.34% 5.22% 4.71% 4.21% 3.55% 2.98% 0.97% 0.17% 0.13% 0.22% 2019 2020 2021 2022 9M 23 2019 2020 2021 2022 9M 23 3 Q 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 +50bps 25.2% 25.9% 24.3% 25.2% 25.7% 2019 2020 2021 2022 9M 23 #2 in Saudi Arabia 3 Q2 0 2 3 Investor Presentation 80 15.2 Million Active Customers #1 in Saudi Arabia Market Share - Deposits +570bps 24.2% 24.6% 23.0% 19.4% 17.3% 2019 2020 2021 2022 9M 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 +130bps 26.2% 27.0% 26.8% 26.8% 27.5% 2019 2020 2021 2022 9M 23 #1 in POS Market Share POS (Terminals) - +880bps 37.5% 35.1% 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 9M 23 #1 Remittance Centres Market Share - Remittance Centers -290bps 30.6% 30.6% 29.4% 27.9% 27.7% 2019 2020 2021 2022 9M 23 2019 2020 2021 2022 9M 23 3 Q 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 #1 in Auto Loans Market Share - Personal Loans +380bps 44.6% 44.3% 40.6% 41.5% 37.7% 2019 2020 2021 2022 9M 23 #1 in Mortgages Market Share - Mortgages Loans +950bps 41.0% 42.9% 41.8% 37.1% 32.3% Market Share - Auto Loans -140bps 51.8% 51.7% 46.8% 47.6% 45.4% 2019 2020 2021 2022 9M 23 #3 in Corporate Loans Market Share - Corporate Loans +580bps 12.5% 11.9% 8.7% 6.7% 6.6% 2019 2020 2021 2022 9M 23 2019 2020 2021 2022 9M 23 3 Q 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 RAJHI, 190 Riyad, 167 30 Sep 2023 Key Metrics Closing Price Market Cap Market Cap / % Industry Market Cap / % Tadawul Shares outstanding 90D Volatility Price/Earnings Price / Book SAR 67.9 SAR 271.6 bn 32.2% 2.4% 4.0 bn 15.1 16.7 x 3.2 x TASI, 138 SNB, 98 Sources: Bloomberg; Tadawul; RAJHI Financials 50 Jun-18 Nov-18 Apr-19 Sep-19 Feb-20 Jul-20 Nov-20 Apr-21 Sep-21 Feb-22 Jul-22 Dec-22 Apr-23 Sep-23 Ratings Moody's S&P Al Rajhi Bank SNB Riyad Bank Kuwait Finance First Abu Dhabi Qatar National House Bank Bank Emirates NBD Fitch Rebased to 100 190 98 167 198 97 87 193 As of 30 Sep 2023 73.0 SAR 32.8 SAR 27.8 SAR 733 KWD 13.6 AED 15.4 QAR 17.8 AED 3 Q 2023 Investor Presentation 11 A1 << A- A- &#12ESG Highlights | 3Q 2023 SAR 801bn Total Assets SAR 12.45bn Net Profit after Zakat 0% Financing exposure in Tobacco, Alcohol & Gambling Financial Sustainability USD 2.6 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 94:6 Digital to Manual Ratio Environmental SAR 41.6mn Donation in 2022 SAR 1.43bn Zakat paid SAR 1,757mln in salaries and benefits paid SAR 29.6bn 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 81,000+ 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 3Q 2023 figures 3 Q 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) 3 Q 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 3 Q2 0 2 3 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 70% SAR 425 Bn. 66% 3Q 2023 FY 2020 Expand Corporate Corporate financing growth SAR 53 Bn. 151% FY 2020 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) +7% 73% 3Q 2023 83/17 +11% 94/6 SAR 3.2 Bn. FY 2020 3Q 2023 FY 2020 Preferred Employer Employee Engagement Index SAR 134 Bn. 70% 3Q 2023 FY 2020 +4% Market Share Market share of KSA banking assets 200% SAR 30 Bn. 16.9% 3Q 2023 FY 2020 Grow Demand Deposits Demand Deposits growth SAR 333 Bn. FY 2020 10% +5% Preferred Loyalty Program Loyalty program customers enrolled SAR 365 Bn. 3Q 2023 2.4mm FY 2020 Improve Revenue Mix Non-yield Income to Operating Income 18.4% FY 2020 +5% 3 Q2 0 2 3 Investor Presentation 363% Leader in Financial Conduct ESG Rating 232% SAR 10.7 Bn. 3Q 2023 Data Leader for Customer Insights Active Digital Customer penetration Develop Best Payments Solution POS Market Share 74% 7.9mm 3Q 2022 FY 2020 58% Modernize our technology Number of Robots 22.0% 310 3Q 2023 FY 2020 12.5mm 28.4% 3Q 2023 FY 2020 35.1% +7% 3Q 2023 Grow Private Bank New Private Banking products 66% 515 3Q 2023 FY 2020 Leverage our Infrastructure Alrajhi Banking App Rating 11.1mm 4.8 3Q 2023 FY 2020 Adopt Agile Delivery Transactions per month average 23.2% BB +1 BBB 295mm 3Q 2023 FY 2020 3Q 2023 FY 2020 16 177% Expand our customer reach Number of Active customers 4.7 9.6mm 3Q 2023 FY 2020 58% 17 3Q 2023 15.2mm 3Q 2023 Deepen Relationships via X-Sell 360-degree system to serve clients 817mm 3Q 2023 FY 2020 100% 3Q 2023 8#17KSA's Macro-Economic Environment مصرف الراجحي alrajhi bank#18KSA Economic Outlook | Economic conditions remain positive for the Kingdom Highlights • GDP declined by 4.6% in 3Q 2023 driven by lower oil activities • IMF revised down Saudi's GDP growth forecasts to 0.8% for 2023 and revised up 2024 to 4.0% • Inflation eased to 1.7% in September 2023 and expected to normalize in 2024 to 2.2% Expenditure/Revenue and Asset Reserves (SARbn) 1,873 1,701 1,708 1,724 1,648* 1,268 1,262 1,164 1,180 1,251 1,059 1,076 927 1,039965 1,172 782 GDP Growth/Brent Oil Price 99.0 94.9 84.1 70.9 64.4 8.7 41.7 0.3 3.3 4.0 0.8 -4.1 2019 2020 2021 GDP Growth, Constant Prices (%) 2022 2023 Brent Crude (USD/bbl) 2024 Source: IMF, U.S. Energy Information 3M SAIBOR / Inflation -0.1% 3.4% 3.3% 2.5% 2.6% 2.2% 5.9% 5.9% 3.2% 2.6% 1.2% 0.8% 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Government expenditure Source: MoF, SAMA Government revenue SAMA asset reserves September 2023 figure 3M SAIBOR (average %) Inflation (average consumer prices %) Source: SAMA, IMF, MOF 3 Q 2023 Investor Presentation 18 8#19Banking Sector Highlights | Banking system deposits growth outpaced loans growth in 9M2023 Recent Developments Deposits growth in the banking system during first eight months is in line with loans growth SRC benchmark rate slightly increased in August 2023 SAMA LDR (%) & Bank Loans and Deposits (SARmn) 77.1% 75.0% 79.5% 81.5% 79.7% 2,349 2,295 2,544 2,455 2,0592,104 1,943 1,796 1,783 1,552 • Consumer spending increased by 7.2% in 8M 2023 with continuous migration to cashless payment methods Retail Mortgage (SARbn) 2019 2020 I Loans to private & public sectors Source: SAMA POS/ATM & E-Commerce (SARbn) 2021 2022 Total Deposits Sep-23 SAMA LDR 1,237 59.1% 1,130 1,039 123 1,025 41.2% 41.4% 74 985 10 39 116 23.3% 288 357 473 559 15.7% 15.7% 456 550 582 446 741 629 315 582 555 412 198 140 2018 2019 2020 2021 2022 2Q 23 Retail Mortgage loans (SARbn) YoY Growth (%) 2019 2020 ■ATM withdrawls 2021 POS spending 2022 E-Commerce Spending 9M 23 Source: SAMA Source: SAMA 3 Q2 0 2 3 Investor Presentation 19 8#203Q 2023 Financial Highlights مصرف الراجحي alrajhi bank#21First Nine Months 2023 Results Summary | Results are in line with expectations 4.0% YTD Growth in financing portfolio 5.2% YTD Balance Sheet Growth Net Financing 5.7% Growth in liabilities Total Liabilities 568.3bn +4.0% FY 22 590.8bn 9M 23 661.4bn +5.7% 699.2bn FY 22 9M 23 5.3% drop in net yield income, impacted by cost of funds 0.9% Non yield income growth 2.3% lower net income YoY Net Yield income Non Yield Income 16,594mn -5.3% 15,720mn 9M 22 9M 23 4,717mn 9M 22 +0.9% 4,761mn 9M 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 25.6% 9M 22 3 Q 2023 Investor Presentation 2 bps lower in NPL ratio NPL 0.25% 9M 23 0.62% FY 22 26.9% 9M 23 21 Improved capital position Total Capital Adequacy Ratio 19.4% 9M 22 0.60% 9M 23 20.8% 9M 23 LDR below regulatory minima Loan to Deposit Ratio 85.9% FY 22 3.9% lower operating income 81.0% 9M 23 Operating Income 21,311mn -3.9% 20,481mn 9M 22 9M 23 NPL coverage remained strong NPL Coverage 238% FY 22 Lower NPM NPM 3.66% 9M 22 240% 9M 23 2.98% 9M 23 8#22Balance Sheet Trends (1) | Balance sheet growth of 5% YTD driven by Financing and Investments Total Assets (SARbn) SAR (mn) 3Q 23 2Q 23 QoQ 4Q 22 YTD +8.3% Cash & balances with SAMA Due from banks & other Fl 740 762 776 785 801 Investments, net Financing, net Other assets, net Total assets Due to banks & other Fl Customers' deposits Sukuk issued 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Other liabilities Total liabilities Movement in Assets (SARbn) Total equity Movement in Funding (SARbn) 43,838 8,128 128,700 121,420 590,826 579,080 29,991 27,017 801,483 784,520 100,126 81,591 565,719 570,665 3,834 3,790 29,525 25,287 699,204 681,333 102,280 103,187 46,020 -5% 42,052 +4% 10,983 -26% 25,656 -68% +6% 102,146 +26% +2% +11% +2% +23% 568,338 +4% 23,456 +28% 761,649 +5% 70,839 +41% -1% 564,925 +0% 0 +17% +3% -1% 25,660 +15% 661,424 +6% 100,225 +2% 761.6 1.8 (17.5) +5.2% +5.2% 22.5 6.5 801.5 29.3 0.8 7.7 2.1 0.0 00 801.5 26.6 761.6 4Q 22 Cash & SAMA Interbank Investments, Financing, net Net Other Assets, Net 3Q 23 4Q 22 Interbank Customers' Deposits Sukuk & Other Liab. Equity T1 Sukuk 3Q 23 3 Q 2023 Investor Presentation 22 8#23Balance Sheet Trends (2) | Financing growth driven by Mortgage and Corporate Financing, Net (SARbn) +6.0% 590.8 557.5 568.3 29.6 23.3 25.5 2.2 1.5 107.9 1.1 111.3 133.7 425.2 430.0 425.3 3Q 22 4Q 22 ■Retail Corporate Financial institutions 3Q 23 SME Movement in Financing (SARbn) 568.3 6.9 (11.6) +4.0% 22.4 4.1 0.7 590.8 Financing, Net Mix By Segment (SARbn) Corporate SAR 134bn 23% SME SAR 30bn 5% Retail SAR 425bn 72% Mortgage Financing (SARbn) Financial Institutions SAR 2.2bn 0% +6.6% Retail Financing Mix By Segment (SARbn) Mortgage SAR 229bn 53% Auto Loans SAR 18bn 4% Credit Cards SAR 6bn 2% 214 222 225 229 229 4Q 22 Mortgage Other Retail Corporate SME Financial institutions 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3 Q 2023 Investor Presentation 23 Personal SAR 178bn 41% 8#24Balance Sheet Trends (3) | Balance sheet shows improving funding mix Total Liabilities (SARbn) +6.9% 699.2 653.9 661.4 29.5 26.3 25.7 236.7 271.5 288.2 390.9 3Q 22 ■Non-Profit Bearing Liabilities Total Customers' Deposits (SARbn) 364.2 377.6 4Q 22 3Q 23 Profit Bearing Liabilities Other +1.8% 555.8 564.9 565.7 165.8 202.0 188.6 11.2 11.3 12.0 378.8 351.5 365.1 Total Customers' Deposits Mix By Type (SARbn) Customers' Time Investments SAR 189bn 33% Demand Deposits SAR 365bn 65% Other customer accounts SAR 12bn 2% Total Liabilities Mix By Segment (SARbn) Treasury SAR 137bn Corporate SAR 272bn 39% Movement in Total Customers' Deposits (SARbn) 564.9 13.5 +0.1% (13.4) 40 0.7 20% 565.7 3Q 22 ■Demand deposits 4Q 22 3Q 23 4Q 22 Demand Time Other 3Q 23 Other customer accounts | Customers' time investments 3 Q 2023 Investor Presentation 24 Rajhi Capital SAR 1.1bn 0% Retail SAR 290bn 41% 8#25Net Income Trends | net profit lower by 2% for the first nine months of 2023 Net Income For The Period After Zakat (SARmn) SAR (mn) 9M 23 9M 22 YOY 3Q 23 3Q 22 YOY -4.6% 4,355 4,404 Net financing & investment income Fee from banking services, net Exchange Income, net 15,720 16,594 -5% 5,401 5,687 -5% 3,238 3,445 925 864 4,145 4,150 4,155 Other operating income, net Fees and other income 599 407 4,761 Total operating income Operating expenses Pre-provision profit Total impairment charge 3Q 22 4Q 22 1Q 23 2Q 23 Net income for the period before Zakat Zakat 3Q 23 Net income for the period after Zakat -6% 899 1,135 -21% +7% 336 320 +5% +47% 237 65 +265% 4,717 +1% 1,472 1,519 -3% 20,481 21,311 -4% 6,873 7,206 -5% -5,500 -5,450 +1% -1,860 -1,861 -0% 14,980 15,861 -6% 5,012 5,345 -6% -1,099 -1,649 -33% -379 -490 -23% 13,882 14,212 -2% 4,633 4,855 -5% -1,431 -1,466 -2% -478 -501 -5% 12,451 12,746 -2% 4,155 4,355 -5% Net Income After Zakat Growth Drivers By Type (SARmn) 207 4,150 +0.1% 4,155 (162) (20) (19) (1) Net Income After Zakat Growth Drivers By Type (SARmn) 12,746 (874) 44 -2.3% (50) 550 34 12,451 2Q 23 Yield Non-Yield Expenses Impairments Zakat 3Q 23 9M 22 Yield Non-Yield Expenses Impairments Zakat 9M 23 3 Q 2023 Investor Presentation 25 8#26Operating Income Trends | Lower operating income driven by higher cost of funding Total Operating Income (SARmn) -4.6% 7,206 7,264 6,781 6,827 6,873 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Total Operating Income Growth Drivers By Type (SARmn) -3.9% 21,311 (208) (874) 61 191 20,481 9M 22 Net Yield Fee banking services, net Exchange income, net Other income, 9M 23 net Net Profit Margin (%) NPM Drivers (%) 5.14% 5.21% 5.32% 4.34% 4.52% 2.98% 2.98% 3.66% 3.55% 3.00% 0.97% 0.68% 2.14% 2.23% 2.34% -68 bps 0.27% 0.42% 0.23% 3.66% 0.07% 2.98% -1.66% 9M 22 Retail Corporate Treasury CoF 9M 22 FY 22 NPM (%) 1Q 23 Gross Yield (%) 1H 23 9M 23 Mgmt Actions 9M 23 CoF (%) 3 Q2 0 2 3 Investor Presentation 26 8#27Expenses Trends | Cost efficiencies remains solid Operating Expenses (SARmn) -0.1% 2,001 1,861 1,800 1,840 1,860 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Cost To Income Ratio (%) 25.6% 26.1% 26.5% 26.7% 26.9% Operating Expenses Growth Drivers By Type (SARmn) +0.9% 172 5,450 91 5,500 (213) 9M 22 Salaries & Benefits Depreciation Other G&A expenses 9M 23 Cost to Income Ratio Drivers (%) 1.1% 25.6% -0.1% 128 bps 0.9% 0.5% 26.9% -1.1% 9M 22 FY 22 1Q 23 1H 23 9M 23 9M 22 Yield Income Non-Yield Income Staff Depreciation G&A 9M 23 3 Q 2023 Investor Presentation 27 8#28Net Impairment & Cost of Risk | Lower net impairment resulted in cost of risk improvement Net Impairment Charges (SARmn) -22.6% 490 353 359 360 379 Cost of Risk (%) 0.43% 0.39% 0.25% 0.25% 0.25% 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 9M 22 FY 22 1Q 23 1H 23 9M 23 Movement in Net Impairment (SARmn) 1,649 -33.4% 1,099 (537) (13) Movement in Net Impairment by Group (SARmn) 1,649 -33.4% 826 1,099 (1,376) 9M 22 Gross charges Recoveries 9M 23 9M 22 Retail Non-Retail 9M 23 3 Q 2023 Investor Presentation 28 8#29Asset Quality Trends (1) | Asset quality remains healthy with high NPL coverage Movement in NPL (SARmn) 3,586 (338) +0.1% 342 3,590 4Q 22 Retail Non-Retail 3Q 23 NPL Ratio (%) 1.47% 1.46% 1.32% 1.19% 1.20% NPL Formation (SARmn) +0.1% 3,586 2,287 3,590 (2,283) 4Q 22 Write off Netflow 3Q 23 NPL coverage ratio (%) 248.4% 0.64% 0.62% 0.68% 0.69% 237.8% 239.9% 214.1% 209.6% 0.60% 0.44% 0.46% 0.38% 0.43% 0.36% 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Retail Non-Retail Group 3 Q 2023 Investor Presentation 29 8#30Asset Quality Trends (2) | Healthy stage coverage reflecting prudent risk management ECL by Stage (SARmn) 8,992 8,529 8,613 3,470 3,538 4,101 1,924 1,715 1,649 3,598 3,276 2,863 3Q 22 4Q 22 3Q 23 ■Stage 1 Stage 2 Stage 3 Gross Loans by Stage (SARbn) +5.8% 599.4 566.5 5.0 576.9 5.2 6.5 13.1 9.7 9.6 551.8 562.0 579.8 3Q 22 ■Stage 1 4Q 22 ■Stage 2 3Q 23 Stage 3 3 Q 2023 Investor Presentation 30 Movement in ECL by Group (SARmn) -4.2% 809 8,992 8,613 (1,188) 3Q 22 Retail Non-Retail 3Q 23 ECL Coverage (%) 69.5% 67.5% 62.7% 19.8% 17.9% 12.6% 0.65% 0.58% 0.49% 3Q 22 4Q 22 3Q 23 Stage 1 Stage 2 Stage 3 8#31Liquidity Trends | Liquidity remains comfortably within regulatory requirements HQLA (SARbn) LCR (%) +16.5% 112.7 118.1 122.0 126.7 131.3 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 142.8% 144.7% 135.4% 125.8% 121.2% Loan to Deposits Ratio (SAMA) (%) 88.4% 87.8% 85.9% 81.9% 81.0% 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 NSFR (%) 110.0% 110.0% 108.9% 111.1% 110.4% Regulatory Minimum 100% 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3 Q 2023 Investor Presentation 31 Regulatory Maximum 90% Regulatory Minimum 100% 8#32Capitalization Trends | Capital position well above regulatory minima RWA (SARbn) +8.4% 519.4 498.0 479.2 42.3 37.8 38.4 - 7.6 1.6 1.1 440.3 454.0 473.3 3Q 22 Credit risk 4Q 22 Market risk 3Q 23 Operational risk Capital Ratios (%) Total Capital (SARbn) +16.0% 106.6 107.9 93.0 5.5 100.9 5.9 5.7 102.0 87.5 3Q 22 4Q 22 3Q 23 Total tier 1 capital (T1) Tier 2 capital (T2) Tier 1 Drivers (%) 21.7% 21.4% 20.9% 20.8% 20.3% 20.5% 19.4% 20.3% 19.6% 19.7% 18.3% 16.9% 16.5% 17.2% 17.0% 16.5% 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 CET1 ratio T1 ratio -TC ratio 3 Q 2023 Investor Presentation 32 -1.9% -0.63% 2.4% 0.0% 0.0% -0.2% -0.8% 19.6% 4Q 22 Dividends YTD Profit Other reserves FTA + Goodwill Sukuk RWA 3Q 23 8#33Return Metrics | Al Rajhi Bank's returns remain industry-leading Return on RWA (%) 3.76% 3.71% 3.31% 3.31% 3.26% 9M 22 FY 22 1Q 23 1H 23 9M 23 Return on Equity (%) Earnings per Share (SAR) -7.8% 1.07 1.08 0.99 0.98 0.99 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Return on Assets (%) 23.08% 2.50% 22.68% 2.46% 2.17% 2.15% 2.14% 19.58% 19.59% 19.47% 9M 22 FY 22 1Q 23 1H 23 9M 23 9M 22 FY 22 1Q 23 1H 23 9M 23 3 Q 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 • IMF revised down Saudi GDP growth forecasts to 0.8% in 2023 and revised up 2024 to 4.0% • Saudi economy declined by 4.6% in 3Q23, driven by 17.3% contraction in oil activities and 3.6% growth in non-oil activities Economy • Consumer spending increased by 7.2% in 9M 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 stay flat for the remaining of the year • Higher interest rates is expected to weigh on credit demand and deposits mix in 2023 Interest Rates • Strategy & Execution يو 3 Q 2023 Investor Presentation Gross yields trend is expected to continue improving during the year reducing cost of funding pressure SRC benchmark rate increased slightly in August 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 9M 2023 Actual Guidance Revision Mid single digit +4.0% Mid single digit -40 bps to -50 bps -57 bps ↓ -40 bps to -50 bps Below 27.5% 26.9% Above 19% 19.47% Below 27.5% Above 19% Asset Quality Cost of risk 0.20% -0.30% 0.25% 0.20% -0.30% Capital Tier 1 ratio Above 20% 19.6% Above 20% 3 Q2 0 2 3 Investor Presentation 36 &#37IR Contact Information مصرف الراجحي alrajhi bank#38Additional Information | Contact investor relations for more information Safwan Alsulaimani Director of Investor Relations +966 (11) 834 6626 [email protected] Mohammed Alqahtani Assistant Manager Investor Relations +966 (11) 828 1921 [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 3 Q2 0 2 3 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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