Investor Presentation
Impairment charges
Profile / Strategy / Sustainability / Environment / Financials / Appendix
Rising impairment charges on the back of strengthening asset quality
◆ Impairment charges increased by 62% YoY to SAR 1,489 mn
for 9M 2023 from mainly commercial charges growth in the
first half of 2023.
Quarterly impairment charges increased by 14% YoY in 3Q
2023, decreasing QoQ by 31% in comparison to 2Q 2023.
Commercial impairment charges increased by 108% YoY,
consumer impairment charges grew by 139%, which was
partially offset by the decrease in impairment charges for
investments.
Cost of risk increased by 33bps to 0.7% for 9M 2023, however
decreasing quarter-over-quarter in comparison to 2Q 2023.
Impairments Movement YoY (SARmn)
+62%
Impairments (SARmn)
308
+14%
Cost of Risk* (%)
624
20
512
364
25
353
32
0.44%
604
0.37%
81
487
369
321
228
QoQ
+18%
+71%
(5)
-18%
-31%
3Q-22
4Q-22
■Credit losses
1Q-23
2Q-23
Investments
3Q-23
Impairments by Source (SARmn)
0.92%
0.83%
0.70%
9M 22
FY 22
1Q 23
1H 23
9M 23
+14%
194
510
917
13
1,489
(145)
364
308
105
66
138
100
399
278
624
512
43
182
28
111
353
48
96
374
208
+108%
+139%
+30%
-55%
(14)
9M-22
Commercial Consumer loans Credit cards
loans
Other
9M-23
3Q-22
4Q-22
1Q-23
Commercial loans
■Consumer loans (incl. credit cards)
2Q-23
3Q-23
Other
Riyad Bank - Investor Presentation - 30/09/23
*Credit risk only
General Business
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