Riyad Bank (1010) investor relations material

Executive summary

• Entered H2 2026 with a strong balance sheet, disciplined risk management, and a well-diversified business model, maintaining resilience amid a dynamic regional environment.

• Interim condensed consolidated financial statements for the six months ended 30 June 2026 were reviewed by independent auditors with no material misstatements identified.

• Net income for 1H 2026 grew by 4% year-over-year to SAR 5,263 million, driven by 4% growth in net special commission income and 2% growth in fee and other income, partially offset by higher operating expenses and impairment charges.

• The Group operates 332 branches in Saudi Arabia and has international presence in London, Houston, and Singapore, providing a full range of conventional and Islamic banking services.

• Focused on executing the 2030 strategy, scaling retail, strengthening wholesale, embedding AI, and modernizing technology.

Financial highlights

• Total assets reached SAR 534 billion as of June 30, 2026, up 3% year-to-date and from SAR 491.8 billion at June 30, 2025; investment portfolio grew 16% YTD, loans up 1.2% YTD.

• Customer deposits increased by 5% YTD to SAR 348.3 billion, up from SAR 316.8 billion at June 30, 2025.

• Net operating income for 1H 2026 was SAR 9.35 billion, up 4% YoY; net special commission income was SAR 6,761 million, up 4% YoY.

• Net income for the period was SAR 5.3 billion, up 4% YoY; ROE at 16%.

• Operating expenses before impairment charges increased 1% YoY to SAR 2,734 million; impairment charges for 1H 2026 were SAR 675 million, up 1% YoY.

Outlook and guidance

• Loan growth guidance revised to mid to high single digits for the remainder of the year.

• Net special commission income also guided to mid to high single digit growth.

• Cost-to-income ratio expected to remain below 30%; ROE guidance revised to above 15.75%.

• Tier 1 capital ratio guidance raised to above 17.5% following the Sukuk issuance.

• The Group is actively assessing the impact of IFRS 18, which will affect future financial statement presentation and disclosure.