#1Al Rajhi Bank Investor Presentation FY 2021 Results مصرف الراجحي alrajhi bank#2FY 2021 Investor Presentation FY2021 Investor Presentation 2 03 The World's Leading Islamic Bank 14 Bank of The Future Strategy 24 KSA Macro-Economic Environment 27 4Q 2021 Financial Highlights 40 FY 2022 Guidance 43 4Q 2021 Operating Results 48 IR Contact Information 8#3The World's Leading Islamic Bank مصرف الراجحي alrajhi bank#4Al Rajhi Bank | Islamic Banking, Everywhere At a glance, 2021 100% Islamic 75% NPB Deposits NPS 72% 90:10 Digital:Manual Presence & Branches, 2021 Customers Jordan Kuwait 10 2 521 Branches 4,891 ATMs 12.2 million 521 Saudi Arabia 16 Malaysia 2021 Strategic Highlights 4Q21 Avg Trans./mth 544 million Active Digital Customers 9.7+ million 2021 Financial Highlights 14.7 10.6 Group Net Income After Zakat +39% Training Days Volunteering Hrs 67 18.3 thousand thousand FY2021 Investor Presentation 4 FY 20 FY 21 326,121 POS 207 Remittance Centers Largest network in Saudi Arabia 43% YoY Net Financing Growth 17.6% Total Capital ratio 0.23% Cost of Funds 512.1 623.7 382.6 468.8 Total Assets +33% FY 20 FY 21 FY 20 FY 21 Customer Deposits +34% 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 Distribution network in Middle East 7 (by # of Branches, POS, ATMs, Remittance Centres) #1 Retail Bank in Middle East 2 (Retail Deposits & Income) One of the highest NPB deposit ratios 3 (75% Non-profit bearing deposits) 8 4 Bank capitalisation among the highest in GCC (17.6% Total Capital ratio) 9 #1 NPS in KSA 5 (72% as on 2021) FY2021 Investor Presentation 5 #1 Banking transactions in KSA (544mn per month, average) #1 Bank for remittances in Middle East (by payment value) 10 #1 Bank brand in KSA (Brand Power Score) 8#6The World's Leading Islamic Bank | Robust balance sheet with 75% non-profit bearing deposits as of 4Q 2021 Total Assets (SARbn) +81.8% 624 469 343 364 384 2017 2018 2019 2020 2021 Total Liabilities (SARbn) +93.6% 556 411 316 333 287 2017 2018 2019 2020 2021 FY2021 Investor Presentation 6 Capital Ratios (%) 23.3% 20.1% 19.9% 22.2% 19.1% 17.6% 19.0% 18.8% 18.0% 16.5% 2017 2018 T1 ratio 2019 2020 2021 TC ratio Total Liabilities Mix By Type (SARbn) 556 Other, SAR 26.3bn Customers' Deposits, SAR 512.1bn As on 4Q 21 Banks, SAR 18.0bn 8#7The World's Leading Islamic Bank | Outstanding foundation and strong returns ROE (%) 17.2% 2017 7.0%* 2018 23.9% 20.5% 19.9% 2019 2020 * As a result of Zakat Settlement - ROE before Zakat is 19.8% Net Profit Margin (%) 2021 5.22% 4.71% 4.34% 4.08% 4.21% ROA (%) 2.68% 2017 1.04%** 2018 2.76% 2.70% 2.56% 2019 2020 ** As a result of Zakat Settlement - ROA before Zakat is 2.9% Cost of Funds (%) 0.20% 0.17% 0.17% 0.13% 2021 0.23% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 FY20 21 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 +220bps 23.7% 24.8% 25.2% 25.9% 24.3% 2017 2018 2019 2020 2021 #2 in Saudi Arabia FY2021 Investor Presentation 80 12.2 Million Active Customers #1 in Saudi Arabia Market Share - Deposits +780bps 24.2% 19.4% 17.3% 16.4% 17.3% 2017 2018 2019 2020 2021 #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 +20bps 26.6% 26.7% 26.2% 27.0% 26.8% 2017 2018 2019 2020 2021 #1 in POS Market Share POS (Terminals) - +730bps 32.2% 28.4% 24.9% 26.3% 23.8% #1 in ATMs Market Share - ATMs +340bps 26.2% 26.8% 27.6% 28.2% 29.6% 2017 2018 2019 2020 2021 #1 Remittance Centres Market Share - Remittance Centers -160bps 31.0% 32.2% 30.6% 30.6% 29.4% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 FY2021 Investor Presentation 9 6 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 +500bps 44.6% 39.6% 38.7% 40.6% 37.7% 2017 2018 2019 2020 2021 #1 in Mortgages Market Share - Mortgages Loans +1560bps 41.0% 37.1% 32.3% 27.9% 25.4% #1 in Auto Loans Market Share - Auto Loans -90bps 52.7% 51.3% 51.8% 46.8% 47.6% 2017 2018 2019 2020 2021 Improving Position in Corporate Loans Market Share - Corporate Loans +90bps 8.6% 7.7% 7.3% 6.7% 6.6% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 FY20 21 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 31 Dec 2021 Key Metrics RAJHI, 338 Closing Price Market Cap Market Cap / % Industry Market Cap / % Tadawul Shares outstanding SAR 141.8 SAR 354.5 bn 34.7% 3.6% 2.500 bn Riyad, 217 90D Volatility SNB, 175 Price/Earnings - TASI, 156 Price / Book Dividend Yield (TTM) Sources: Bloomberg; Tadawul; RAJHI Financials 50 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Ratings Moody's S&P Al Rajhi Bank SNB Riyad Bank Kuwait Finance House First Abu Dhabi Bank Qatar National Bank Emirates NBD Fitch Rebased to 100 338 175 217 210 180 160 172 As of 31 Dec 2021 141.8 SAR 64.4 SAR 27.1 SAR 832 KWD 18.84 AED 20.19 QAR 13.55 AED FY2021 Investor Presentation 11 24.42 24.03 x 5.27 x 1.69% A1 BBB+ A- &#12ESG Highlights | FY 2021 SAR 624bn Total Assets SAR 14.7bn Net Profit after Zakat 0% Financing exposure in Tobacco, Alcohol & Gambling Financial Sustainability Started using solar energy system in 5 branches to reduce utilities consumption Over USD1bn of financing renewable energy projects ISO Green Certification for the head office building 90:10 Digital to Manual Ratio Environmental SAR 32mn Donation in 2021 SAR 1,699 mln Zakat paid SAR 3.1bn in salaries and benefits paid SAR 15.8bn in financing for SMEs 91 kidney transplants through Shifaa platform 9 batches of Graduate Development Program since 2015 3,663 Employees volunteered in social programs Social 18,300+ of volunteering hours Clocked 89,800+ total training days ISO/DIS 37301:2020 Compliance ISO 22301:2019 Business Continuity Management 1,209 Sharia Board Resolutions 137 Policies & Frameworks 4 out of 11 Independent Board Directors Governance 101 women-owned suppliers engaged 69% growth in female employees since 2015 17% of female employees 93% growth in female customers since 2015 Gender Diversity FY2021 Investor Presentation 12 &#13Awards Recent international recognition Global Awards EUROMONEY AWARDS FOR EXCELLENCE 2019 Best Bank in Saudi Arabia (3 consecutive years 2017, 2018, 2019) REST BANK AWARD Best Financial Institution in Saudi Arabia GLOBAL ISLAMIC Regional Awards Banker RETAIL BANKING WORLD HRD CONGRESS ■ ■ " ■ Best Bank in GCC ■ Fastest Growing Bank in KSA ■ Most Innovative Bank in KSA ■ Best Retail Bank in KSA Strongest Islamic Retail Bank in the World Strongest Islamic Retail Bank in the GCC Strongest Islamic Retail Bank in the MEA ■ GCC Best Employer Brand Award ■ Most Improved IR Team - Blue-Chip (2018) Largest Bank in the world in terms The Banker of Sharia Assets The Banker Bank of the year 2017 SAUDI ARABIA Best Bank in Saudi Arabia (2 consecutive years 2017 & 2018) middle east investor relations association arket Awards 2020 2020 جامة أفضل برنامج علاقات مستمرين Best Investor Relations Pragm Award مصرف الراجحي Al Rajhi Bank المالية السعود جوائز السوق الد - Best Investor Relations in the Middle East (2019) ■ Best Investor Relations in KSA (2019) - Best CFO in the Middle East (2019) ■ Best Investor Relations Professional (2019) Best CFO in the Middle East (2021) ■ Best Investor Relations Program (2020) - Saudi Capital Markets Awards (2020) FY2021 Investor Presentation 13 &#14Since inception of ABCDE Strategy, the world has changed مصرف الراجحي alrajhi bank#15ABCDE Strategy Initiatives & Outcomes | Al Rajhi Bank 2016 - 2020 Strategy achieved a lot and set a strong foundation A Accelerate Growth B Become Employer of Choice C Customer Focus D Digital Leadership E Execution Excellence Exceed Industry ✓ Higher Engagement Financial Achievements Business Achievements ✓ Most Recommended ✓ Best-In-Class Customer Achievements ✓ Deliver Digital Achievements 1.4 x Total Assets SAR 469bn 2.2 x Number of Customers FY 2020 SAR 340bn Total shareholder return (4Q2015 FY 2020) 6.7mn 10+mn Active Digital Customers 1.9mn 7.9mn 2016 FY 2020 2016 FY 2020 4Q2015 5x Mortgage Financing SAR 105bn FY 2020 #1 Islamic Bank Worldwide (Assets) #1 MENA Retail Bank (Assets) Top 30 Global Banks (MCap) #1 KSA Bank Brand NPS Score Digital Manual Ratio FY 2020 66% SAR 20bn 4Q2015 #3 KSA Brand Overall 2016 14% 40:60 2016 83:17 FY 2020 Total Operating Income #1 Branches Loans POS Terminals 205K #1 ATMs #1 Auto Loans Al Rajhi Bank App Rating 4.7 SAR 20.7bn FY 2020 #1 POS SAR 13.7bn FY2015 FY2020 #1 Remittance #1 Mortgage Loans #1 Personal 51K 2016 FY 2020 CAR ROE ROA Employee Engagement Al Rajhi Bank 19.1% 19.9% 2.56% 27% 70% KSA Average 20.2% 8.6% 1.2% Global Average 16.46% 5.35% 0.55% 4Q 2015 FY 2020 FY2021 Investor Presentation 15 #1 NPS in KSA #1 Banking transactions in KSA #1 Bank for remittances in Middle East 1.65mn Ratings 310 Robots FY 2020 8#16Global and KSA Market Forces | A force field of risks and opportunities Rates KSA Forces Structural Changes Covid-19 Global Forces Regulations Al Rajhi Bank Vision 2030 Global Forces Digital FY2021 Investor Presentation 16 Competitive Environment KSA Forces Sustainability 8#17Where are future opportunities for growth? مصرف الراجحي alrajhi bank#18Where are the growth opportunities? | The Bank of the Future has two main avenues for growth in KSA The Bank of the Future FY2021 Investor Presentation 18 Market Maturity Market Share 8#19The Bank of the Future has two avenues for growth | A maturing market in KSA and market share growth Market Maturity ° Mega Projects, Privatization, Capital Markets Underpenetrated KSA Financial Services Mobile / Digital Home-ownership Income, Wealth, Lifestyle, Demographics A growing addressable market Market Share Leverage Retail to areas previously not focused on Corporate, Treasury, Al Rajhi Capital, Payments Ecosystems (build on reach of 1/4 KSA population) PB, WM, NST, Private Sector, Bancassurance Defend & Grow Market Share FY20 21 Investor Presentation 19 8#20We are building the "Bank of the Future" مصرف الراجحي alrajhi bank#21We are building the "Bank of the Future" | Strategy 2021 - 2023 Bank Build on our core Grow Retail including Private Sector OF Outperform our competition Customer Experience The Transform technology Digital Core Banking Platform Future Focus on new client needs Become Leading Finance Company Expand Corporate Data Leader for Customer Insights Preferred Employer Bank of Choice for SMEs Market Share Modernize our technology Develop Best Payments Solution 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 FY20 21 Investor Presentation 21 8#22In 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 Grow Retail including Private Sector Customer Experience Retail financing growth in 2021 Customer NPS Digital Core Banking Platform Digital/Manual ratio Future Focus on new client needs Become Leading Finance Company Emkan financing total (SAR) +46% 72% 90/10 6.8bn Expand Corporate Preferred Employer Corporate Financing growth in 2021 Employee Engagement Index Data Leader for Customer Insights Active Digital Customer penetration Develop Best Payments Solution POS Market Share +33% 71% 9.7mm 32% Bank of Choice for SMEs Market Share Modernize our technology Grow Private Bank SME Financing growth in 2021 Market share of KSA banking assets Number of Robots New Private Banking products +61% 19%* 360 13 Grow Demand Deposits Demand Deposits growth in 2021 Preferred Loyalty Program Loyalty program customers enrolled Leverage our Infrastructure Alrajhi Banking App Rating Expand our customer reach Number of Active customers +13% 3.5mn 4.7 12.2mn Improve Revenue Mix Non-yield Income to Operating Income Leader in Financial Conduct ESG Rating 21% Adopt Agile Delivery Transactions per month average in 4Q Deepen Relationships via X-Sell 360-degree system to serve clients BBB 544mn 100% FY20 21 Investor Presentation 22 8#23On track to build the "Bank of the Future" | Ejada acquisition will help to accelerate our strategic initiatives Bank Build on our core OF The Outperform our competition Transform technology Grow Retail including Private Sector Customer Experience Digital Core Banking Platform Expand Corporate Preferred Employer Data Leader for Customer Insights Bank of Choice for SMEs Market Share Future Focus on new client needs Become Leading Finance Company The banking model is evolving: • Technology in banks has evolved from being a function to a fundamental part of the organization Continuous deployment and upgrade to digital capabilities is required to support future growth in highly competitive market Banks are becoming technology companies around which an ecosystem is established Develop Best Payments Solution 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 FY2021 Investor Presentation 23 • • • . EJADA Ejada is a leading IT services provider in Saudi Arabia and the MENA region Ejada will help the group to continue delivering a superior customer experience, driving scale and efficiency gains and improving agility and time to market Ejada will be an integral part of our strategy to create a financial ecosystem that provides innovative and smart financial solutions to address changing customer needs 8#24KSA's Macro-Economic Environment مصرف الراجحي alrajhi bank#25KSA Economic Outlook | Improved economic outlook compared to 2021 • Highlights GDP grew by 3.3% in 2021 driven by recovery in economic activities and supported by oil prices. IMF forecasts Saudi Arabia's economy to expand by 4.8 percent in 2022 • . MoF forecasted a budget surplus of 2.5% of GDP in 2022, the first since oil prices crashed in 2014, driven by oil prices recovery and rising crude production, as well as improved outlook for economic activities Average inflation estimated to be 3.3% in 2021 and expected to normalize in 2022 to 1.3% as the impact of VAT increase fades Expenditure/Revenue and Asset Reserves (SARbn) 1,862 1,862 1,873 1,701 1,708 1,079 1,059 1,076 926 906 927 1,015930 9551,045 782 696 2017 2018 General government expenditure 2019 2020 I General government revenue Source: MoF, SAMA FY20 21 Investor Presentation GDP Growth/Brent Oil Price 71.2 54.1 64.4 0.3 2.4 41.7 75.0 70.9 4.8 3.3 -0.7 -4.1 2017 2018 2019 2020 I GDP Growth, Constant Prices (%) 2021 Brent Crude (USD/bbl) 2022 Source: IMF, U.S. Energy Information 3M SAIBOR / Inflation 3.4% 3.3% 2.6% 1.3% -0.1% -0.9% 2.5% 2.6% 1.8% 1.2% 0.8% 1.5% 2020 2021 2022 2021 2022 2017 2018 2019 SAMA asset reserves 13M SAIBOR (average %) Source: SAMA, IMF, MOF 25 Inflation (average consumer prices %) 8#26Banking Sector Highlights | Growth in mortgage lending continues to drive credit growth Recent Developments SAMA LDR (%) & Bank Loans and Deposits (SARbn) 80.1% 77.4% 77.1% 79.5% . Strong loan growth was recorded in 2021 supported by mortgages with healthy LDR well below the regulatory minimum 75.0% • Consumer spending recovered with continuous migration to cashless payment methods 1,943 2,059 2,104 1,633 1,674 1,796 1,783 1,405 1,443 1,552 • Deferral Payment Program extended for additional three months till March 31, 2022 for MSME that are still affected by Covid-19 2017 2018 I Loans to private & public sectors Source: SAMA 2019 2020 Total Deposits 2021 SAMA LDR Retail Mortgage (SARbn) POS/ATM & E-Commerce (SARbn) 1,130 1,039 981 1,025 74 59.2% 41.4% 41.4% 15.3% 9.9% 929 10 39 232 288 200 357 473 446 315 729 748 741 629 582 198 121 140 2017 2018 2019 2020 2021 2017 YoY Growth (%) 2018 ATM withdrawls 2019 2020 2021 POS spending ■E-Commerce Spending* Retail Mortgage loans (SARbn) Source: SAMA FY2021 Investor Presentation 26 Source: SAMA * E-Commerce started in 2019 8#27FY 2021 Financial Highlights مصرف الراجحي alrajhi bank#28ARB delivered excellent results in 2021 | Results are in line with or ahead of expectations Strong 33% YoY Balance Sheet Growth 43.4% Growth in financing driven by mortgages Net Financing 35.5% Growth in liabilities Healthy LDR 410.7bn +35.5% 556.4bn Loan to Deposit Ratio 79% FY 20 FY 21 FY 20 Total Liabilities 315.7bn +43.4% 452.8bn FY 20 FY 21 20.6% Net yield income growth, impacted by slightly lower NPM Solid 39% net income growth YoY Net Yield income 16,913mn 39.8% Non yield income growth 24.1% Operating income growth 82% FY 21 Non Yield Income +20.6% 20,392mn 3,808mn +39.8% 5,324mn Operating Income 20,721mn +24.1% 25,716mn FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 15 bps COR reduction Stable credit quality Cost of risk 0.75% FY 20 5.6 ppt better operating efficiency Key Ratios Cost to income ratio 32.5% FY 20 FY2021 Investor Presentation 11 bps improvement in NPL ratio from strong loan growth NPL 0.60% FY 21 0.76% FY 20 26.9% FY 21 28 NPL coverage remained strong and stable NPL Coverage 0.65% FY 21 306% FY 20 Capital position above regulatory minima Total Capital Adequacy Ratio 19.1% FY 20 Lower NPM NPM 17.6% FY 21 4.71% FY 20 306% FY 21 4.21% FY 21 8#29Balance Sheet Trends (1) | Strong 33% YoY balance sheet growth driven by Financing and Investments Total Assets (SARbn) SAR (mn) 4Q 21 3Q 21 QoQ 4Q 2020 YOY +33.0% Cash & balances with SAMA 40,363 34,420 +17% 47,363 -15% 624 Due from banks & other Fl 26,065 27,518 -5% 28,655 -9% 583 546 512 Investments, net 84,433 82,048 +3% 60,285 +40% 469 Financing, net 452,831 420,954 +8% 315,712 +43% Other assets, net 19,979 17,745 +13% 16,810 +19% Total assets 623,672 582,684 +7% 468,825 +33% Due to banks & other Fl 17,952 14,733 +22% 10,764 +67% Customers' deposits 512,072 478,331 +7% 382,631 +34% Other liabilities 26,339 25,984 +1% 17,311 +52% 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Total liabilities 556,363 Total shareholders' equity 67,309 519,048 63,637 +7% +6% 410,706 +35% 58,119 +16% Movement in Assets (SARbn) 468.8 +33.0% 24.1 137.1 3.2 623.7 Movement in Funding (SARbn) 468.8 7.2 +33.0% 129.4 9.0 9.2 623.7 (7.0) (2.6) 4Q 20 Cash & Interbank Investments, Financing, SAMA Net Net Other Assets, Net 4Q 21 4Q 20 Interbank Customers' Deposits Other Liabilities Total Equity 4Q 21 FY20 21 Investor Presentation 29 8#30Balance Sheet Trends (2) | Financing growth driven by all lines of business Financing, Net (SARbn) +43.4% 452.8 421.0 15.9 14.5 70.9 0.3 315.7 65.5 0.3 9.9 53.3 1.9 340.6 365.7 250.7 Financing, Net Mix By Segment (SARbn) Retail SAR 366bn 81% 4Q 20 3Q 21 ■Retail Corporate Financial institutions 4Q 21 SME Movement in Financing (SARbn) +43.4% 17.6 6.0 48.8 66.3 315.7 (1.6) Retail Financing Mix By Segment (SARbn) Auto Loans SAR 17bn Credit Cards SAR 4bn 1% Corporate SAR 71bn 16% SME SAR 16bn 3% 4% Mortgage Financial SAR 171bn Institutions 46% SAR 0.3bn 0% Mortgage Financing (SARbn) +63.4% 452.8 171 153 140 125 104 4Q 20 Mortgage Other Retail Corporate SME Financial institutions 4Q 21 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 FY20 21 Investor Presentation 30 Personal SAR 180bn 49% 8#31Balance Sheet Trends (3) | Balance sheet growth funded by NPB deposits. Total Liabilities (SARbn) +35.5% 556.4 519.0 26.3 26.0 410.7 146.5 17.3 121.3 53.3 340.1 4Q 20 ■Non-Profit Bearing Liabilities Total Customers' Deposits (SARbn) 371.8 383.5 3Q 21 4Q 21 Profit Bearing Liabilities Other +33.8% Total Customers' Deposits Mix By Type (SARbn) Customers' Time Investments SAR 130bn 26% Total Liabilities Mix By Segment (SARbn) Corporate SAR 208bn 37% Treasury SAR 29bn 5% Demand Deposits SAR 375bn 73% Other customer accounts SAR 7bn 1% Movement in Total Customers' Deposits (SARbn) +33.8% 512.1 478.3 87.3 382.6 130.3 43.0 6.7 107.3 41.8 6.8 7.1 382.6 332.9 364.3 374.7 Retail SAR 320bn 58% 0.4 512.1 4Q 20 ■Demand deposits 3Q 21 4Q 21 4Q 20 Demand Time Other 4Q 21 Other customer accounts Customers' time investments FY20 21 Investor Presentation 31 Rajhi Capital SAR 0.1bn 0% 8#32Net Income Trends | Solid net profit growth of 39% YoY SAR (mn) FY 21 FY 20 YOY 4Q 21 4Q 20 YOY Net Income For The Period Before Zakat (SARmn) +28.5% Net financing & investment income Fee from banking services, net 20,392 16,913 +21% 5,355 4,638 +15% 3,933 2,660 +48% 1,114 864 +29% 4,022 4,230 4,474 3,480 3,719 Exchange Income, net Other operating income, net Fees and other income 788 784 +1% 218 210 +4% 603 365 +65% 168 82 +104% 5,324 3,808 +40% 1,500 1,155 +30% Total operating income Operating expenses Pre-provision profit Total impairment charge Net income for the period before Zakat Zakat 25,716 20,721 +24% -6,927 -6,742 18,790 13,979 +34% -2,345 -2,166 16,445 6,855 5,794 +18% +3% -1,791 -1,763 +2% 5,064 4,030 +26% 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Net income for the period after Zakat +8% 11,814 +39% -1,699 -1,218 +39% 14,746 10,596 +39% -590 -550 +7% 4,474 3,480 +29% -461 -359 +29% 4,012 3,121 +29% Net Income Before Zakat Growth Drivers By Type (SARmn) +39.2% 1,516 16,445 3,479 11,814 (185) (179) Net Income Before Zakat Growth Drivers By Type (SARmn) 137 140 4,230 +5.8% 3 4,474 (37) FY 20 Yield Non-Yield Expenses Impairments FY 21 3Q 21 Yield Non-Yield Expenses Impairments 4Q 21 FY2021 Investor Presentation 32 8#33Operating Income Trends | Strong income growth reflecting successful strategy execution Total Operating Income (SARmn) +18.3% 6,336 6,578 6,855 5,794 5,948 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Net Profit Margin (%) Total Operating Income Growth Drivers By Type (SARmn) +24.1% 1,273 239 4 25,716 3,479 20,721 FY 20 Net yield Fee from banking Exchange income services, net income, net Other operating income, net FY 21 NPM Drivers (%) 4.71% 4.71% 4.56% 4.44% 4.32% 4.21% -50 bps -0.45% -0.01% -0.06% -0.09% 0.12% 4.21% FY 20 1Q 21 1H 21 9M 21 FY 21 FY 20 Retail Corporate Treasury CoF Management Actions FY 21 FY20 21 Investor Presentation 33 8#34Expenses Trends | Cost efficiencies resulted in higher positive jaws Operating Expenses (SARmn) +1.6% 1,763 1,652 1,730 1,754 1,791 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Cost To Income Ratio (%) 32.5% 27.8% 27.5% 27.2% 26.9% Operating Expenses Growth Drivers By Type (SARmn) +2.7% 155 24 6,742 60 6,927 FY 20 Salaries & Benefits Depreciation Other G&A expenses FY 21 Cost to Income Ratio Drivers (%) 32.5% -5.6 ppt 0.6% 0.0% 26.9% -4.4% -1.9% 0.1% FY 20 1Q 21 1H 21 9M 21 FY 21 FY 20 Yield Income Non-Yield Income Staff Depreciation G&A FY 21 FY20 21 Investor Presentation 34 8#35Asset Quality Trends (1) | Asset quality remains healthy and NPL coverage remains strong and stable Cost of Risk (%) Movement in NPL (SARmn) +23.1% 0.75% 0.67% 0.64% 0.62% 0.60% 2,445 FY 20 1Q 21 1H 21 9M 21 FY 21 NPL Ratio (%) 2.48% 2.13% 1.95% 1.89% 1.66% 0.76% 0.70% 0.67% 0.67% 0.65% 746 3,010 (181) FY 20 Retail Non-Retail FY 21 NPL coverage ratio (%) 317.7% 318.1% 305.6% 307.5% 305.6% 0.30% 0.32% 0.33% 0.38% 0.40% 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Retail Non-Retail -Group FY20 21 Investor Presentation 35 8#36Asset Quality Trends (2) | Healthy stage coverage reflecting prudent risk management Net Impairment Charges (SARmn) +7.3% 550 577 584 594 590 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Gross Loans by Stage (SARbn) +43.0% 462.0 429.8 4.2 4.0 9.6 323.2 3.4 8.8 8.5 448.3 417.1 311.3 4Q 20 ■Stage 1 3Q 21 Stage 2 4Q 21 Stage 3 FY20 21 Investor Presentation 36 Movement in Net Impairment (SARmn) +8.3% 253 2,166 2,345 (74) FY 20 Gross charges Recoveries FY 21 ECL Coverage (%) 72.4% 71.7% 75.6% 24.0% 27.8% 0.95% 0.86% 24.3% 0.83% 4Q 20 3Q 21 4Q 21 ■Stage 1 Stage 2 ■Stage 3 8#37Liquidity Trends | Liquidity remains comfortably within regulatory requirements HQLA (SARbn) LCR (%) +16.4% 93.1 94.8 87.7 81.4 79.7 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 155.3% 141.5% 126.2% 125.0% 121.0% Loan to Deposits Ratio (SAMA) (%) 83.2% 82.7% 80.6% 82.3% 78.8% 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 NSFR (%) 123.5% 116.0% 113.3% 112.8% 114.1% Regulatory Minimum 100% 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 FY2021 Investor Presentation 37 Regulatory Maximum 90% Regulatory Minimum 100% 8#38Capitalization Trends | Capital position well above regulatory minima RWA (SARbn) +31.8% 425.6 395.8 37.8 323.0 33.3 33.3 3.6 2.4 9.3 358.8 385.4 280.4 4Q 20 3Q 21 Credit risk Market risk 4Q 21 Operational risk Capital Ratios (%) Total Capital (SARbn) +21.7% 75.0 71.0 4.8 4.5 61.6 3.5 66.5 58.1 70.2 4Q 20 3Q 21 Total tier 1 capital (T1) 4Q 21 Tier 2 capital (T2) CET1 Drivers (%) 19.1% 18.0% 17.9% 17.9% 17.6% 18.0% 18.0% 16.8% 16.9% 16.8% 16.5% -1.9% -1.50% 0.9% 4.6% 0.1% 16.5% -5.2% 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 4Q 20 Dividends YTD Profit CET1 ratio -TC ratio Other reserves FTA RWA 4Q 21 FY20 21 Investor Presentation 38 8#39Return Metrics | Al Rajhi Bank's returns remain industry-leading Return on RWA (%) 3.94% 4.00% 3.98% 3.94% 3.56% FY 20 1Q 21 1H 21 9M 21 FY 21 Return on Equity (%) 23.11% 23.62% 23.87% 22.43% 19.94% Earnings per Share (SAR) +28.5% 1.44 1.52 1.60 1.25 1.33 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Return on Assets (%) 2.75% 2.74% 2.72% 2.70% 2.56% FY 20 1Q 21 1H 21 9M 21 FY 21 FY 20 1Q 21 1H 21 9M 21 FY 21 FY2021 Investor Presentation 39 8#402022 Guidance FY2021 Investor Presentation مصرف الراجحي alrajhi bank#41FY 2022 Assumptions and Outlook | Positive economic outlook with focus in delivering efficiencies • IMF forecasted Saudi GDP growth of 4.8% in 2022 while MoF forecasts stands at 7.8%. • MoF forecasted a budget surplus of SAR90bn. representing 2.5% of GDP in 2022 Economy • Consumer spending increased by 10.2% in 2021 on the back of improved economic activities and vaccine rollout . Credit growth is expected to continue during 2022 supported by government and PIF initiatives and projects • Interest Rates • Strategy & Execution FY20 21 Investor Presentation يو • Interest rates are expected to move higher during 2022 as US inflation staying well above its 2% target Competition is expected to continue which will negate the positive impact of higher interest rates Retail ex-mortgage assets re-pricing is expected to occur in the range of 1-3 years. • . "Bank of the Future" strategy is paving the way for growth opportunities across all business lines 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 41 &#42FY 2022 Guidance | Continuation of excellent results and strategy execution Balance Sheet Financing FY 2020 Actual FY 2021 Latest Guidance FY 2021 Actual FY 2022 Guidance SAR 315.7bn 38% -41% +43.4% High teens 4.71% -45 bps to -55 bps -50 bps -45 bps to -55 bps Net profit margin Profitability Cost to income ratio 32.5% ROE Below 28.0% 26.9% Below 27% 19.94% 23% -24% 23.9% 23% -24% Asset Quality Cost of risk 0.75% 0.60% -0.70% 0.60% 0.50% 0.60% Capital Tier 1 ratio 18.0% 17% - 18% 16.5% 17% - 18% FY20 21 Investor Presentation 42 &#43FY 2021 Operating Results مصرف الراجحي alrajhi bank#44Retail Banking | Strong growth supported operating income growth YoY Total Operating Income (SARmn) -2.1% Retail SAR (mn) YOY FY 21 FY 20 % Net financing and investment income 11,353 11,335 +0.2% 3,537 3,695 Fees and other income 2,654 2,122 +25.1% 3,509 3,342 3,461 Total operating income 14,007 13,457 +4.1% Operating expenses (6,032) (6,053) -0.4% Total impairment charge (1,785) (1,152) +55.0% Net income for the period 6,189 6,251 -1.0% Total assets 418,027 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Total liabilities 319,611 268,109 289,584 +55.9% +10.4% Net Income Before Zakat (SARmn) +5.4% 1,603 1,692 1,689 1,451 1,358 Net Income Before Zakat Growth Drivers By Type (SARmn) 532 6,251 18 -1.0% 6,189 21 (633) 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 FY 20 Yield Non-Yield Expenses Impairments FY 21 FY20 21 Investor Presentation 44 8#45Corporate Banking | Net income growth driven by growth and lower impairment charges Corporate Total Operating Income (SARmn) YOY SAR (mn) FY 21 FY 20 % +0.1% 1,079 Net financing and investment income 2,440 2,332 +4.6% 905 948 907 Fees and other income 1,080 399 +170.8% Total operating income 3,520 2,731 +28.9% 587 Operating expenses (537) (326) +64.8% Total impairment charge (566) (1,015) -44.2% Net income for the period 2,417 1,390 +73.8% 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Total assets Total liabilities 88,031 207,506 66,837 108,515 +31.7% +91.2% Net Income Before Zakat (SARmn) 590 460 -36.8% 780 804 Net Income Before Zakat Growth Drivers By Type (SARmn) 681 1,390 108 372 +73.8% (211) 448 2,417 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 FY 20 Yield Non-Yield Expenses Impairments FY 21 FY20 21 Investor Presentation 45 8#46Treasury | Strong net income growth driven by investment portfolio growth Total Operating Income (SARmn) +112.7% Treasury YOY SAR (mn) FY 21 FY 20 % 2,280 Net financing and investment income 6,524 3,199 +104.0% Fees and other income 691 530 +30.5% 1,942 1,622 Total operating income 7,215 3,728 +93.5% 1,372 Operating expenses (185) (205) -9.8% 1,072 Total impairment charge 7 1 +699.0% Net income for the period 7,037 3,524 +99.7% Total assets 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Total liabilities 112,692 29,157 129,951 12,443 -13.3% +134.3% Net Income Before Zakat (SARmn) +113.6% 2,249 1,898 1,575 1,315 1,053 Investments, Mix By Asset (SARbn) Sukuk Govt, FI & Corp. SAR 51.8bn 62% 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 FY20 21 Investor Presentation 46 Structured Products SAR 1.8bn 2% Mutual funds SAR 2.7bn 3% Equity SAR 5.3bn 6% Murabaha with SAMA SAR 22.6bn 27% &#47Al Rajhi Capital | Continue to maintain a leading market share in brokerage Total Operating Income (SARmn) ARC YoY SAR (mn) FY 21 FY 20 % -25.9% 294 279 Net financing and investment income 75 48 +57.0% 258 Fees and other income 899 758 +18.7% 215 207 Total operating income Operating expenses 974 805 +21.0% (172) (158) +9.2% Net income for the period 802 648 +23.8% Total assets 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Total liabilities 4,922 89 3,928 165 +25.3% -45.7% Net Income Before Zakat (SARmn) -30.4% 252 234 217 170 163 Market Share - Al Rajhi Capital Brokerage (Value Traded) +30bps 20.2% 19.1% 19.6% 19.6% 19.4% 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 FY20 21 Investor Presentation 47 8#48IR Contact Information مصرف الراجحي alrajhi bank#49Additional Information | Contact investor relations for more information Rayan Alshuaibi Head of Investor Relations +966 (11) 828 1972 [email protected] Abdulrahman Alyami Investor Relations Specialist +966 (11) 828 3586 [email protected] Visit our website (here) for more Investor disclosers: Annual Report • Factsheet Upcoming Events in 1Q 2022 28th - 8th March 2nd 3rd March EFG Hermes' annual One-on-One Conference Goldman Sachs Fifth Annual Saudi Arabia Conference Awards 2020 | 2020, Saudi Capital Market جائزة أفضل برنامج علاقات مستثمرين Best Investor Relations Program Award مصرف الراجحي Al Rajhi Bank جوائز السوق المالية السعودية Alrajhi Mobile App Alrajhi Business App Alrajhi IR App Financial Statements • Data Supplement Investor Presentation • Earnings Release FY2021 Investor Presentation 49 Alrajhi Tadawul Mobile App Emkan App urpay App 8#50Disclaimer • 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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