Chairman's Statement

Surpassing Heights.
Setting Standards.

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Our 2025 Strategy set an ambitious goal: to become the most profitable and efficient Bank in the Kingdom.

Customer Deposits Reached

% 332 Bn.

Total Assets Increased to

% 519 Bn.

We begin by praising and thanking Allah for the successes achieved this year. 2025 marked a pivotal milestone in Riyad Bank’s journey. By the grace of Allah, we exceeded our strategic targets, strengthened our position, and set new standards for performance, innovation, and governance. As we close the final chapter of our 2025 Strategy, we have completed a comprehensive transformation cycle that has moved the Bank into a more agile and future-ready phase that is closely aligned with the Kingdom’s ambitious economic vision and contributing effectively to the achievement of its objectives.

A Strategy Successfully Delivered

At the end of a phase in our extended journey to become the banking of choice, Riyad Bank has cemented its position as one of the Kingdom’s most resilient and forward-looking financial institutions. Since the launch of our transformation journey in 2017, we have remained committed to disciplined execution and continuous organizational renewal, enabling a qualitative leap in our market position and elevating the Bank from sixth to third among the Kingdom’s largest banks, driven by strengthened core businesses, accelerated growth, and the development of advanced digital and operational capabilities.

Our 2025 Strategy set an ambitious goal: to become the most profitable and efficient bank in the Kingdom, the Bank of Choice for customers and employees, and the leader in digital innovation. Through collective effort and steadfast execution discipline, we have – praise be to Allah – successfully achieved all of our ambitious targets.

Throughout the year, we continued to strengthen risk management frameworks, accelerate product development, enhance organizational agility, and invest significantly in our people. In parallel, we expanded our digital and data capabilities, elevated customer experience, and advanced the development of partnerships that support innovation, grow the business ecosystem, and underpin long-term sustainability.

Strong Performance Built on Solid Financial Fundamentals

In terms of financial performance, the Bank delivered on its commitment to sustainable profit growth and attractive shareholder returns. Net profit after Zakat reached % 10.4 billion, representing growth of 12% compared with % 9.3 billion in 2024. Total assets increased to % 519 billion, surpassing a half trillion threshold for the first time, up 15% compared with % 451 billion in the previous year.

Customer deposits grew by 8% to reach % 332 billion, reflecting balanced momentum across retail, corporate, and micro, small and medium enterprise (MSME) portfolios. Return on average equity improved to 16.9%, supported by disciplined balance sheet growth and strengthened profitability, while return on average assets reached to 2.14%, underscoring the Bank’s robust financial foundations and sustained operating momentum.

Our New Headquarters: A New Phase of Growth and Transformation

By the grace of Allah, we have completed all phases of our relocation to the new headquarters building at the King Abdullah Financial District in Riyadh. This move was one of the most prominent milestones of 2025. The architectural and technological landmark reflects Riyad Bank's ambition, embodies its deeply rooted values, and reaffirms its commitment to supporting the nation's journey of progress. The headquarters was designed as a unifying platform for our teams within a modern, collaborative environment that stimulates innovation, enhances operational efficiency, and fosters a culture of high performance and sustainable achievement.

Our new headquarters represents a strategic investment in our people and our long-term growth through advanced digital infrastructure, sustainable design, and world-class facilities while serving as a platform that enables us to embark on a new chapter of transformation and leadership, in alignment with the objectives of Saudi Vision 2030.

Our Future Aspirations and Riyad Bank Strategy 2030

Our next strategic journey is guided by a clear vision and bold ambition set out in the Riyad Bank Strategy 2030, which aims to make Riyad Bank the Kingdom’s most innovative financial institution, delivering performance that outpaces the market, while further solidifying our position as the Kingdom’s third largest bank by 2030.

Our priorities will focus on deepening customer relationships, expanding our digital capabilities and AI-enabled solutions, strengthening partnerships across the business ecosystem, and enhancing operational resilience. We will also continue to expand in high-potential sectors, accelerate the diversification of revenue sources, and modernize our product and service offerings. Our ambition goes beyond institutional transformation, it extends to redefining leadership in the financial sector and contributing effectively to the Kingdom’s long-term prosperity, in line with the objectives of Saudi Vision 2030.

Acknowledgments

On my own behalf, and on behalf of all Riyad Bank employees, I am honored to extend our highest gratitude and profound appreciation to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and to His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, may Allah protect them. Their wise leadership continues to elevate the Kingdom’s development journey, and their ambitious vision inspires our efforts toward excellence and innovation, enabling us to achieve renewed accomplishments year after year.

We also express our sincere appreciation to the Ministry of Finance, the Saudi Central Bank, and the Capital Market Authority for their continued support and guidance to the banking sector. This steadfast partnership is a fundamental pillar in strengthening the resilience of the financial sector and enabling Riyad Bank’s continued growth and strategic transformation, as we move forward together in contributing effectively to realizing our beloved Kingdom’s ambitions and building a more prosperous and sustainable future.

Abdullah Mohammed Al-Issa
Chairman

CEO's Message

Balanced Execution and
Sustainable Growth

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Reinforcing Riyad Bank’s Position Among the Kingdom’s Top 3 Banks.

Commercial Portfolio Expanded By

22%

Sustainable Finance Portfolio Reached

% 31 Bn.

By the grace of Allah, we delivered a strong performance in 2025 that embodied our commitment to balanced execution across all dimensions of our strategy. We successfully translated our long-term ambitions into tangible operational and financial achievements. Moreover, we generated stronger and more sustainable returns by optimizing our portfolio mix, improving products and services, adopting a prudent approach to risk management, and continuing to streamline operations. At the same time, targeted investments in advanced technologies, talent development, and data analytics capabilities enhanced our customer experience, enabling us to deliver services with greater speed, clarity and precision.

Robust Performance Across All Business Lines, underpinned by Retail Banking resilience, Corporate Banking momentum, and Treasury and Investment strength.

Excellence in Profitability and Efficiency

By the grace of Allah, we recorded a strong and well-balanced performance by year-end 2025, building on the achievements of previous years and reinforcing Riyad Bank’s position among the Kingdom’s top 3 banks. These results were driven by disciplined and measured portfolio growth, alongside the creation of diversified products that enhanced the services delivered to our customers, while continued digital progress strengthened the efficiency of our operating model and supported its scalability.

Loan growth outpaced market performance, rising by 17% during the year, which contributed to an improved balance sheet structure, supported by our medium-term funding strategy. Concurrently, profitability improved despite higher funding costs, underpinned by robust growth in fee and commission income. Throughout the year, we maintained strong asset quality, a normalized cost of risk, and stable non-performing loan ratios, backed by a solid liquidity and capital position.

The Bank of Choice in the Kingdom

Throughout 2025, we continued to advance our ambition to establish Riyad Bank as the Bank of Choice for individuals, investors, and stakeholders. Customer experience served as a central pillar of this journey, enhanced through improved onboarding journeys, elevated digital service quality, deeper strategic partnerships, and innovative products tailored to diverse customer segments. In parallel, our brand value maintained its upward trajectory, reaching USD 2.53 Bn.

Advancing Innovation and Digital Transformation

In 2025, we continued our journey to position Riyad Bank among the most innovative and digitally driven banks in the Kingdom. We strengthened our digital infrastructure through significant platform upgrades, expanded cloud adoption, and broader automation. These improvements enriched customer experiences, accelerated the delivery of products and services to market, and built scalable operating models that support future growth ambitions.

COI accelerating AI progress toward2030

The Center of Intelligence (COI) served as a key catalyst in accelerating this progress, through the launch of a comprehensive, enterprise-wide AI strategy aligned with our 2030 ambitions.

Robust Performance Across All Business Lines

Retail Banking

In Retail Banking, we delivered stable, quality-focused performance throughout the year, recording loan portfolio growth of 3% despite softer demand amid higher interest rates. Product innovation and digital solutions, coupled with enhanced customer experiences and stronger engagement through our digital channels to deliver personalized services, have positioned the segment to capitalize on the anticipated improvement in demand in 2026.

In parallel, we continued to optimize branch network efficiency and selectively expand our footprint, ensuring that traditional channels remain aligned with evolving customer behaviors and growing digital adoption, while maintaining an enhanced customer experience across all touchpoints.

Corporate Banking

In Corporate Banking, we delivered strong growth, with the commercial portfolio expanding by 22% during the year, underpinned by solid financial fundamentals and a robust pipeline of business opportunities. This strong asset growth was accompanied by the development of cash management solutions, deeper client relationships, and a focus on acquiring operational accounts in priority sectors, resulting in improved liability balances, including current account deposits. Cross-sell activities also contributed to enhanced fee and commission income.

Meanwhile, MSME banking continued to play a pivotal role in portfolio diversification and delivering attractive returns, with MSME lending accounting for approximately 24% of the total loan portfolio.

Treasury and Investment

The Treasury and Investment Division delivered an exceptional performance, with the investment portfolio generating strong returns through carefully crafted, value-driven strategies and agile execution of investment decisions during periods of market volatility. This performance was further bolstered by strategic portfolio rebalancing, consistent income generation, and efficient funding, all of which supported current performance while paving the way for sustainable future growth.

In parallel, we continued to strengthen the Bank’s balance sheet structure by diversifying funding sources across instrument types and maturities in both domestic and international markets, enhancing its resilience and efficiency while preserving the flexibility needed to support sustainable growth in our core businesses.

Our cross-sell culture evolved significantly, contributing to a more integrated client service model through a deeper understanding of customers’ banking needs and addressing them holistically.

The Division also delivered innovative and comprehensive financial solutions for clients, enabling them to hedge against interest rate fluctuations and manage funding costs in a volatile market environment, through tailored hedging products designed to support the sustainability and financial resilience of our clients’ businesses.

These efforts resulted in notable growth in fee and commission income, driven by expanded cross-sell activities and comprehensive services delivered to clients.

Digital transformation also remained a top priority for the Treasury Division in 2025. In this context, the Bank launched the Gold Account service, which recorded significant trading volumes immediately upon its launch.

Riyad Capital

Riyad Capital, our investment arm, contributed positively to the Group’s performance, underpinned by its leading position in assets under management in the Kingdom, its regional leadership in custody services in the Middle East, and its strong presence in brokerage activities.

Reinforcing Riyad Capital’s standing as a leading investment platform and an active contributor to national economic development, the Company arranged transactions in the capital and debt markets, including sukuk issuances and leading a pre-IPO investment round for domestic companies, while also making significant progress in major real estate initiatives through the execution of real estate transactions valued at nearly % 10 Bn.

Integrating Sustainability and Social Impact into Our Operating Model

Sustainability and social responsibility remained among our foremost strategic priorities in 2025, as we continued to embed responsible finance and environmental, social, and governance (ESG) considerations into our operating model and decision-making processes. This integrated approach reflects our conviction that strong ESG performance supports long-term financial resilience, risk management, and sustainable value creation.

In early 2025, we launched the Riyad Bank Sustainability Strategy, providing a clear framework aligned with our business objectives and national priorities. The strategy focuses on expanding sustainable and transition finance, supporting the growth of the green economy, strengthening governance and risk management through alignment with leading international standards, and contributing to the Kingdom’s transition toward a low-carbon economy. These priorities are reflected in our governance, capital allocation, client engagement, and performance management.

As a result, our sustainable finance portfolio reached % 31 Bn., exceeding our initial target. Progress was also reflected in improved external ESG ratings, with our MSCI ESG rating upgrading from BBB to A, and our Bloomberg ESG Disclosure Score rising from 1.62 to 2.85.

On the social responsibility front, we strengthened our community impact through purposeful partnerships and national programs centered on inclusivity. Notably, we signed a strategic partnership with the Fund for Martyrs, Wounded, POWs, and Missing in Action, supporting more than 22,500 beneficiaries, and launched our financial literacy program "Rihlat Banki" (My Bank's Journey), which reached more than 500,000 beneficiaries across the Kingdom. We also contributed to initiatives in housing, food security, volunteering, and entrepreneurship.

Looking ahead, we will continue to embed ESG considerations into our strategy, risk management framework, and growth priorities, supporting our clients’ transition journeys while delivering sustainable risk-adjusted returns and positive societal outcomes.

Our Outlook for 2026 and Beyond

With the grace of Allah, we look forward in 2026 to continuing the execution of Riyad Bank 2030 Strategy by deepening customer relationships, expanding cross-sell activities, and enhancing our digital capabilities and AI-powered solutions. In this context, we will focus on strengthening our operational resilience, consolidating our business ecosystem partnerships, while maintaining rigorous discipline in risk and capital management, achieving sustainable revenue growth, and pursuing targeted expansion in priority banking and high-growth segments.

Acknowledgements

In closing, I extend my sincere gratitude and appreciation to the Board of Directors for their continued support and empowerment. I also wish to express my thanks and recognition to all our employees and valued shareholders, whose dedication and tireless efforts have been instrumental in achieving our outstanding accomplishments throughout 2025.

Nadir S. Al-Koraya
Chief Executive Officer