Good afternoon, everyone. This is Sultan AlTowaim from Al Rajhi Capital.

We are pleased to host Al Rajhi Bank Q1 2026 earning call. Welcome everyone to this event.

Without further ado, I will hand it to Mr. Rayan Alquraishi, the Head of Investor Relations, to introduce the management.

Thank you, Dr. Sultan.

Good day, everyone. Thank you for joining the call.

With us on the call today, our Managing Director and CEO, Mr. Waleed Al-Mogbel; CFO, Mr.

Abdulrahman Al-Fadda; and Chief Credit Officer, Mr. Salim Musallam.

As always, our CEO will start with the results highlights and strategy performance. Then the CFO will cover the financial performance in more details.

Finally, we will open the floor for your questions. Please note that the results presentation is now available in both Al Rajhi Bank website and Al Rajhi Bank IR app.

Now, I'll hand over to Mr. Waleed.

Thank you, Rayan. Welcome, everyone, and thank you for attending our earning call for the first quarter of 2026.

As always, I will start by taking you through our performance highlights followed by an overview of our performance on our strategy Harmonize the Group. Then, I will hand the floor to the CFO to cover the financial performance in more details.

Now, let's take a closer look to our quarter one of this year performance. In the first quarter of this year, the bank delivered an excellent performance supported by the progress in our strategy execution and a healthy economy.

This resulted in an outstanding net income of 6.8 billion alongside healthy balance sheet growth. The balance sheet remained solid.

Total assets reached 1.051 billion, higher 3% year-on-year and 1% year-to-date. While total liabilities were flat at 899 billion during the first quarter of 2026 with a healthy LDR of 82.6%.

Looking at the profitability, net income reached 6.8 billion, as I mentioned, in the first quarter of this year, higher by 14% versus the same quarter of last year. Net yield income grew by 18%, while the non-yield income increased by 1%.

As a result, total operating income grew by 14% reaching 10.5 billion. In terms of the credit quality, we continue to maintain best-in-class asset quality with a cost of risk of 33 bps, and NPL stand at 77 bps, supported by a coverage ratio of 150%.

Moving into key ratios, the bank maintains strong operating efficiency with a cost-to-income ratio standing at 23.3%. Total capital ratio reached 23%, well above the regulatory minimum, reflecting the bank healthy financial position.

Our NIM expanded to 3.54%, higher by 38 bps year-on-year, and that driven by ongoing efforts to improve yield and optimize the cost of funds in the current rate environment. Moving to the next slide, allow me to give you a highlight on the progress of our strategy execution.

As I mentioned before, this year is the last year of our three years strategy, Harmonize the Group. If we walk you through the pillar of our strategy starting with the first pillar, B2C, our focus on retail cross-selling remains a key goal.

The product per customer ratio stand at 42%, higher by 6% since we introduced our strategy. Our sales from our targeted customer portfolio have witnessed a growth of 371% since the beginning of the strategy 2023, and that backed by of effort to expand our customer base across both existing and new segments.

Our universal offering and financial solution have made us the bank of choice for over 21 million customers across the kingdom. We also maintained high customer satisfaction reflecting in a Net Promoter Score, NPS, of 82.

Moving to the second pillar of our strategy, B2B, our corporate portfolio continue to grow reaching around 273 billion, higher 15% year-on-year. This growth was driven by our ongoing effort to expand wholesale lending and focus more on SMEs, which has grown massively by 51% year-on-year.

Now, the SMEs representing 24% of our non-retail book and 9% of our financing book. Our focus on developing the investment banking business is a key part of our strategy to enhance non-yield income with revenue from investment banking activity which is grow by 318% since 2023.

In terms of the third pillar, Support Business, we continue to invest in technology and automation across the group to drive innovation and operation excellence. As of the first quarter 2026, the percentage of process automated reached now 65%, while the percentage of applications that are cloud-ready increased to 96%.

That supporting our strategy of becoming a cloud-ready bank. For the last pillar, Digital and Data, the digital to manual ratio stand at 96 to 4 by end of the first quarter 2026, highlighting solid progress in our digital transformation.

AI and event-driven activities continue to build momentum in generating revenue through data-driven marketing, which increased by more than 500% since the beginning of this strategy, 2023. Now, please allow me to hand over to our CFO, Abdulrahman, to provide a detailed update of our financial performance.

Thank you.

Thank you, Waleed. Good day, ladies and gentlemen.

It is my pleasure to welcome you again in our Q1 2026 earning call. As usual, I'll go over the financial performance slides very quickly so that you will have further time during the Q&A section.

Starting with the balance sheet, as you can see that our total balance sheet stand at 1.05 trillion, 3% growth year-on-year, driven by 4% growth in our financing book year-on-year. On a sequential basis, it's almost flat, no material movement, as you can see on the bottom left-hand side of the chart.

On the funding side, we've managed to further increase our customer deposits. That give us the flexibility to shed off almost 13 billion of an expensive interbank deposit in order to manage our cost of fund efficiently.

We also tapped in the international debt capital market earlier in January where we raised $1 billion of a Tier 1 Sukuk issuance. Zooming further into the main driver of the balance sheet movements, as you can see on the top left-hand side of the chart, our total financing book stand at 754 billion, almost 4% growth year-on-year.

Retail representing almost 64% of our financing book, no movement compared to the year-end. To analyze the year-to-date movement, as you can see on the top right-hand side of the chart, our mortgage book have grown by 1%.

Ex-mortgage of the retail book contracted by almost 3.1 billion. It's worth to highlight that we securitize close to 1.4 billion of a consumer loans in order to help further boost the liquidity and the capital profile for the organization.

In continuation of our repricing effort, there has been a repayment on our corporate book by almost 5 billion. Those were paid and the pricing of those corporate exposure were at a low spread.

However, that has been managed and negated by further growth in the SME book by almost 7 billion. Those initiatives are part of the management action to further improve the asset mix and to improve the repricing, which will subsequently have a better impact into our cross-yield expansion.

Our total customer deposit stand at 679 billion, 3% growth year-on-year and almost 2% on a sequential basis. CASA as a percentage of the customer deposit stand at 67.8% compared to 64.8% as of December 2025.

The movement of our customer deposit, as you can see on the bottom right-hand side of the chart, we managed to grow our CASA by almost 6.5% year-to-date. That growth helped us to further shed off a time deposit of almost 16 billion coupled with the 13 billion as we discussed in the previous slide that to help to manage our cost of fund efficiently.

Our investment book stand at almost 173 billion, no material movement both on a sequential and a year-to-year basis, nor the mix. 75% of the book is fixed rate and close to 83% of the book is in domestic.

We move to the profitability section. Our net income for the first quarter was 6.752, almost 14% growth year-on-year and 6% on a sequential basis.

As you can see, the driver of the sequential movement on the bottom left-hand side of the chart, our yield income have grown by 3%, non-yield non-yield income were lower by 6%. The driver of that non-yield income is mainly onto the other income, where as you can see on the table in front of you, we got impacted in the first quarter.

This is due to the the investment book mark-to-market where we have seen both an interest rate increase coupled with a credit spread widening. Expense were lower by 8%, which bring the pre-provision profit to be 4.4% expansion on a sequential basis.

The year-to-date movement, as you can see on the bottom right-hand side of the chart, yield income have grown by 18%. Non-yield income, despite the impact on the the investment book, is still growth at a 1% year-on-year.

Expense were higher by 17.7%, which bring the pre-provision profit to be around 13.5% higher year-on-year. To further zoom in into the net income driver, our operating income for the period were at 10.5 billion, 14% increase year-on-year and almost 1% expansion on a sequential basis.

The driver of the year-on-year movement, as you can see on the top right-hand side of the chart, although that our average earning assets has increased by 6%, however, we had also the benefit of the 38 basis point expansion on NIM, which bring the NII to be higher by 18%. Fees have shown a very healthy growth of 17% year-on-year, mainly driven by executing Harmonize the Group strategy, as Waleed mentioned earlier, cross-sell, where we have seen a good improvement in both retail corporate transactions.

Exchange income have shown a healthy growth of 24% year-on-year. On the other other income, which we highlighted earlier due to the mark-to-market of the investment book.

NIM for the first quarter was at 3.54%, almost 38 basis point expansion year-on-year and 19 basis point compared to Q4. The driver of the NIM expansion, as you can see on the bottom right-hand side of the chart, we managed to further increase the gross yield by 24 basis point, coupled with a further improvement in the cost of fund by 13 basis point.

If you recall our NIM sensitivity, for every 25 basis point drop into the 3-month SAIBOR, the NIM or the theoretical NIM will expand by 7 basis point. The SAIBOR movement year-on-year were almost 57 basis point, i.e.

that will equate to a 16 basis point of a NIM expansion due to the SAIBOR movement. However, the delta of the 22 basis point were due to the management action vis-à-vis the following factor: the asset repricing, the asset mix, the also the liability mix given that the focus into the CASA, and finally optimize our paid liability efficiently.

OPEX were at around 2.5 billion, 17.7% increase year-on-year and 8.3% lower sequential basis. The driver, as you can see on the top right-hand side of the chart, mainly onto the staff costs as well as into the G&A.

Those are indeed required to further execute our Harmonize the Group strategy. Our cost-to-income ratio for the period were around 23.3% as of Q1, compared to 22.7% as of the same period last year.

However, if you compare it against Q4, it stand at 25.7%. NCL for the period 631, almost 20% higher year-on-year, while the cost of risk is around 33 basis point.

As you can see on the bottom left-hand side of the chart, although our gross charge has increased by 200 million, however, it has been negated by further improvement in our recoveries effort to negate that increase in the gross charge. The movement of the on the NCL mainly are going into the non-retail book, which we've seen a 15% growth year-on-year.

NPL stand at 5.9 billion, 3.5% higher year-on- higher on a sequential basis. If you look at the movement, write-off and inflow are in line of our expectation and better than Q1 of 2025.

NPL ratio stand at 77 basis point, no material movement compared to the same period last year nor the year-end. That coupled with a still a healthy NPL coverage of 150% plus.

Our ECL stock at almost 8.9 billion, 7% higher year-on-year, and it's goes across between retail and non-retail book. Stage 1 exposure at 96.7% as of Q1.

In terms of the stage coverage, as you can see on the bottom right-hand side of the chart, no material movement, still Stage 1 at 38 basis point, Stage 2 at 10.8, and finally Stage 3 at 55.3%. Although that our headline LDR at 111%, but if you include the Sukuk plus the syndication the syndicate loan, our LDR will drop to 95%, compared to regulatory LDR of 82.6%, still further room below the regulatory requirement of 90%.

LCR and NSFR at a healthy level and above the minimum regulatory requirement. On the capital side, our total RWA stand at 683 billion, 5% increase year-on-year, mainly driven by almost 7.5% increase on our credit risk RWA.

RWA density at a 65%. Our capital ratio: CET1 at 17.3, Tier 1 at 21.6, and finally our total capital at 23%.

On our Tier 1, as you can see on the bottom right-hand side of the chart, there has been a 113 basis point improvement in our capital adequacy due to the following factor: the internal capital generation of almost 88 basis point, coupled with the Sukuk benefit, which we discussed earlier. Our profitability metrics remain healthy.

We've seen our RORWA reaching one of the highest level at almost 4% compared to 3.79 at Q4. Our ROE at 22.9 compared to 22.8 in Q4.

Finally, our RO- ROA expanded to 2.58 versus 2.43 in Q4. On the macro outlook, I think the IMF has updated the Saudi GDP forecast for 2026 to be 3.1% expansion, mainly driven by non-oil GDP, and kept the '27 GDP expansion of around 4.5%.

Consumer spending still healthy, and where we have seen almost 10% increase year-on-year as of end of February. In terms of the rate outlook, our best case forecast for the rate, we don't expecting any further movement into the rate environment.

Finally, SRC the 20-year mortgage stand at 7.4%. Reflecting in Q1 performance and outlook for the remaining of the year, we have updated our guidance for the NIM, where we upgraded the guidance to be 30 to 40 basis point, upgraded our Tier 1 guidance to be above 21%, while kept the guidance unchanged for the other metrics.

Waleed, back to you.

Thank you, Abdulrahman, for the financial highlight. We are so proud of our outstanding performance and the progress made across all KPIs of our strategy Harmonize the Group.

Now, we will open the floor for Q&A. Operator, back to you.

Thanks very much for taking the questions. The first one is the NIM upgrade is a welcome surprise given how the curve has moved in your theoretical sensitivity.

I just wondered what was the main driver behind that? What's really sort of changed since the outlook that you expected at the start of the year?

Is it higher asset yields, is it deposit mix? How have you managed to deliver that upgrade?

Then on the non-interest income, what was the impact in the quarter from the regulatory fee caps? I guess we may have only seen a partial quarter impact of that.

How might that look as we go into the second quarter? Then if I could just finally ask on the cost of risk, was there any overlays that you took for the current environment, or anything that you might anticipate taking at the half-year stage?

Thanks very much.

John, and I think on the NIM driver, if you recall the NIM slide, and I think we managed to grow our NIM by 38 basis point year-on-year. If you recall our NIM sensitivity, and I think due to the rate movement and the SAIBOR, it's around 16 basis point.

I think over the last 18 months, we've been discussing that the bank focusing is into the value rather than the profitability. The management focus was to reprice our asset to reflect the liquidity premium, looking at opportunities from the asset mix to improve the cross-yield, and also opportunities to improve our CASA as a percentage of the overall customer deposit, and also finally optimizing our cost of fund.

All those four factors have contributed to 22 basis point out of the 38 basis point NIM expansion year-on-year. Now, I think the way that we looking, 3-month SAIBOR stand at 4.78 as we speak today.

We don't expecting any material movement into the rate. I think from the delivery, or based on SAMA bulletin data as of February, we've seen a very good growth into the customer deposit of almost 115 billion, while the loan portfolio were lower in that.

That is improving in terms of the SAIBOR. SOFR-SAIBOR is looking at a much better than the peak that we've seen in Q3.

All those three factors are taking to consideration the NIM upgrade that we have highlighted earlier. As far as the second question into the fee income, although some of the regulatory changes that has happened in February, nevertheless, if you look at our fee income growth on a sequential basis, I think we managed to further grow our fee income by almost 3% on a sequential basis.

Now, also if you recall, there has been also further regulatory changes into the fee income or the payments that was happened in July last year. Through the management initiatives, taken few actions in terms of counter-impact, and I think we overcome those regulatory changes.

The way that we will work is find a way how to further improve the fee income contribution to the bottom line. As far as the cost of risk, and I think we keep updating our ECL model in a regular basis, taking to consideration the operating environment.

There are elements within our ECL model have shown a negative sign, but also there are other elements that have shown a positive sign, for example, oil prices. I think overall, as we speak, and I think 33 basis point cost of risk for the first quarter is adequate.

As per our current best case forecast, I think we are comfortable with the cost of risk guidance for 2026 to be in the range between 30 to 40 basis point.

Great. Thank you very much.

Yeah. Sorry for that.

Rahul Bajaj from Citi here. I have two questions mainly.

First one is on securitization. If I understand correctly and got the number correctly, you've done 1.4 billion Saudi riyal of securitization in the first quarter.

Just to clarify, this is mortgages or non-mortgage retail book securitization? If I'm not mistaken, there was some further news around securitization in the last few days around mortgages.

Could you just clarify what is the kind of quantum of the securitization that you've done in April, and the guidance on loan growth is post these securitizations, just to clarify? That's if my understanding is correct.

That's my first question. My second question is on just wanted to understand if there are projects being reprioritized or shelved in the current sort of environment in Saudi, what kind of exposures do you have to such projects which are probably being put on the back burner?

Are there any such exposures? If such, how do you feel about kind of provisioning levels for those projects?

Thank you.

Question number two. First one, the 1.4 securitization that we've done in the first quarter is ex-mortgage of the retail book.

Second question is on mortgage. Yes, that we've done a securitization post Q1 results.

Mortgage securitization is something as a available tools for the management to be able to diversify the funding as well as improving the capital structure. It is one of the main initiatives as a part of the management action to optimize our NIM.

I think the delta we've been saying regularly, as long as the delta between the new origination rate minus the securitized book rate plus any fees, that will have a positive impact over the medium term. Third question, I'll leave it to my colleague Salim.

Basically, we don't have any major exposure to any deprioritized projects. This was the question.

Just to clarify, are there SMEs who you might have exposure to who would be impacted by these project cancellations?

SMEs? [unclear] related to [unclear]

Sorry, I'm not able to get the audio.

Hello?

you now. Can you hear me now?

Okay. To answer the question specifically on SME, basically our SME exposure is largely based on program lending like point-of-sales financing, fleet financing.

Again the answer would be we don't have a major exposure in SME or even corporate to any deprioritized project. This was the question.

Understood. Thank you.

Good afternoon and thanks for the presentation. I wanted to just understand on the corporate loan repayment that's come in in this quarter.

This was scheduled or was it more of a pricing kind of adjustment that led to this repayment? Understanding if it was a maturity or if it was a prepayment.

Are there other parts of the corporate book where you'd be looking to optimize the asset yields or the returns? Is that something that we should expect happening over the course of the year?

A second question was on the SME loan book. It's been phenomenally strong over the last many years.

This last few quarters average growth has been around 50% plus. How do you see the growth on the SME side progressing over the course of this year?

50% is high, but is the market expanding, are you taking away market share from peers? Just wanted to get a sense of that.

Thirdly, on the CASA mix improvement, is that primarily retail or corporate? You've made very strong improvement on this in one quarter.

Do you see prospects of further improvement? What are the key drivers or factors affecting this improvement in CASA?

Thank you.

Thank you, Murad, for your question. For the corporate growth, the repayment in the first quarter was mix of both: scheduled payment and other customer payment for the pricing purposes.

For the SME, we believe still the market is there for growing in SME. We believe, as part of our strategy in Harmonize the Group, they should be the bank of choice for the SME customer considering our experience in retail, and most of the lending, as my colleague Salim mentioned, is program lending product for the SME.

Also considering the network that we have it across the kingdom.

Thank you. Just on the CASA growth, key drivers here and you've made very strong improvement in the first quarter.

Do you see this trend sustaining through the course of the year, meaning further improvement or just your thoughts around that?

Sure. I think at the system level based on the available information through the Tadawul announcement, the total system growth in the customer deposit in the first quarter were close around 113 billion.

I think overall the majority of the CASA that we have improved in the first quarter are coming mainly from the non-retail book. Now, is it sustainable?

Is it something that we anticipate that could be a transitory? I think it's too early to take a call as we speak.

I think we would like to see overall another quarter. I think we keep our team at the corporate, private, the entire organization are in a regular contact of our customer.

I think Al Rajhi, one of the main competitive advantage for Al Rajhi Bank is making sure that we have a sustainable and a stable CASA. Long story short, Murad, and I think it's too early.

Nevertheless, this is something that we'll continue to focus in growing our CASA accordingly.

All right. Thank you very much.

Hi, this is Chiro Ghosh from SICO Bahrain. My first question is related to the liquidity.

Now that not only Al Rajhi, most banks got a deposit infusion, are you already seeing a pick up in competitive pressure or price cutting, especially on the lending side of it? Just want to get a sense on the ground reality, how is the competitive market, especially on the corporate side of it?

Similarly, I know you gave some clarity, but again on the asset quality side of it, especially on the corporate side, we are a little surprised that there was no major pick up in higher ECL on that side. I know again you gave some clarity on that, but still would like to pick your brain to better understand how are you able to manage such steady asset quality in the corporate side, especially.

These are my two questions.

On the liquidity side, Chiro, as I've mentioned earlier, we've seen the total increase into the customer deposit based on the public information in the first quarter around 114 billion. We also see that the total customer loans were around 50 billion.

That may give you an indication that the loan-to-deposit ratio for the banking system in the first quarter has improved. Loan-to-deposit ratio has improved compared to the year-end.

That has eased the pressure into the SAIBOR, which we've seen also the SOFR-SAIBOR spread has improved over the last 3 months. Overall in our perspective, and I think liquidity is there.

I think it's about managing the assets pricing, coupled with the cost of fund in order to further improve the NIM. That's on the liquidity side.

On the second question related to the cost of risk, and I think, alhamdulillah, I think if you look at the Saudi economy has been resilient over the last 3 months to the current geopolitical tension. I think overall from the business, I think it is a BAU.

We haven't seen any large deposit outflow. In fact, the deposit in the system has improved.

We don't see any major signs of a stress as we speak. Nevertheless, between us and the credit team, and I think we monitoring the situation on a regular basis.

If there is any action that we need to do, we'll take it. As we speak, I think the best case forecast for us based on the available information we have, cost of risk guidance for this year are still intact.

Perfect. Yeah.

Very clear. Thank you very much.

Thank you, and good day. I have several questions.

My first question is

about fee income growth. If possible, could you provide outlook on the pace of growth for the next several quarters?

My second question is about your subsidiaries, Emkan, Ijar. Are you sticking to a plan to consider potential monetization of these subsidiaries at some point, and what would be the triggers to come back to this plans?

My third question is about your expansion of retail client base. In annual report, we noticed you added 1.1 million of non-resident retail clients last year, which was, of course, a great addition.

What is product proposition there and what's take-up of products by these clients? How much do you cross-sell on top of remittances to them?

Thank you. Olga, sorry, we have an echo.

Would you mind to repeat your question again?

Yes, apologies. I think this should be better now.

Three questions from my side. One is on fee income growth.

If possible, maybe you could provide us your outlook on the pace of growth for the next several quarters. My second question is about your subsidiaries, Emkan, Ijar.

Are you sticking to a plan to consider potential monetization of these subsidiaries at some point, and what would be the triggers to come back to this plans? My third question is about your expansion of retail client base.

In annual report, we noticed you added 1.1 million of non-resident retail clients last year, which was, of course, a great addition. What is product proposition there, and what's take-up of products by these clients?

How much do you cross-sell on top of remittances to them? Thank you.

Thank you for the questions, Olga. As far as the first question, I'm sure that you are aware that we don't provide any specific guidance on the fee income.

Nevertheless, and I think if you recall in early February 2024, when we came with the market with our updated strategy, Harmonize the Group strategy, I think one of the KPIs that we mentioned very clearly and articulated is the cross-sell. I think the bank have improved the cross-sell.

End of 2023, the percentage of the customer base, I think Waleed have mentioned it earlier, end of 2023, it used to be 20 38%, while as we speak, it stand at 44.2%. That to show that the focus of the management of the bank and the group subsidiaries is to be able to improve the customer lifetime value, and that should help into improving the fee income.

However, rest assured that we are continue that despite some of the regulatory changes that has happened recently, and I think the fee income are showing a very healthy growth either customer acquisition, improving the cross-sell, and looking at the product feature, services, the digitizing the customer journey. All of those have helped to further improve the fee income.

The second question related to monetizing some of the subsidiary, definitely this is something that we're looking to do, and I think we are in the process. As I mentioned, this is something that we believe any of our subsidiaries have reached the right maturity level in terms of product diversification, customer diversification, improvement into the overall management team, personnel, governance, etc., this is will and there is a value for the shareholder, will definitely take the call.

I think this is something that we will assess on a regular basis. The last question as on the retail client acquisition, I think the bank have been investing quite a lot in improving our digital platform.

I think we've been leveraging from the whole digital economy in the Saudi by leveraging through the government APIs, whether it's a KYC, employee verification, salary verification, and finally any credit history verification. I think by leveraging on the targeted campaigns, and I think also Waleed have mentioned it earlier, the sales from a targeted client base is one of the key focus area.

We do have lots of program within the organization to make sure that we do have a healthy client acquisition and to help to improve the cross-sell.

Thank you.

Yes, hi. Thank you very much.

I have three questions, please. In terms of I know you give your cost-to-income guidance, but in terms of the evolution of costs from this point onwards when we think about costs in sequential terms, do you expect a slowdown in cost growth?

Is 1Q a good kind of a starting point for us to kind of map or project the cost for the rest of the year? My second question is around your NIM guidance assumptions.

You may have touched upon this, but I just want to kind of reconfirm what kind of rate cut assumptions are you factoring in your NIM guidance? Assuming that there are no rate cuts this year, do you expect any meaningful impact on your NIM guidance as a result of that?

My final question is around geopolitics and you've provided a lot of detail on the potential that in terms of asset quality, you still feel quite comfortable, but in terms of trends on fee income, on payments, has there been any effect of this geopolitical uncertainty on credit card spend, on transaction volumes, which could potentially reflect negatively on fee income in 2Q? Thank you.

In terms of the OPEX outlook, Shabbir, I think we don't provide any specific outlook on the OPEX. We provide a guidance into the cost-to-income ratio.

I think overall our cost-to-income ratio for the first quarter were at 23.3%. We're comfortable to reach our guidance that we have provided on the cost-to-income ratio for 2026.

I think Waleed mentioned earlier in terms of the strategy execution, we'll continue to execute. We'll continue to deliver our KPIs that should help further the ROE expansion.

The way that we see that we continue to execute our strategy. If we believe that any investment in our infrastructure that should be having a positive impact into the operating income, we'll definitely take that forward.

Second question is very easy. I think I've mentioned it earlier.

We are best case forecast, no rate change for remaining of 2026. Yeah.

Regarding your last question, we haven't noticed that much of dropping in our fees because of the geopolitical things, except of what you have mentioned that the card international spending fees, which doesn't represent that much of fees compared to the total fees of the bank.

All right. Thank you.

Thank you, management. My question is around the gross asset yields.

We have seen that there's a sizable improvement. How much room do you think there still exists with the changing balance sheet mix or focus on quality?

In a stable rate environment, have you done any sensitivity on that? Second question is that you don't see even in a stable environment, you don't see any improvement in SAIBOR given that liquidity should improve this year?

On the first question, by and large, our ex-mortgage of the retail book has been repriced. If you recall, I think we are coming in the end of whatever has been originated back in 2021 at a lower rates when SAIBOR used to be around 70 basis point.

I think that has played a major impact into the NIM expansion that we've seen. If you recall, out of the 24 basis point NIM expansion, 21 basis point are coming from the retail.

To give you the repricing that we've done on the ex-mortgage of the retail book. Corporate have shown also close to 7 basis point.

Overall, and I think again, I doubt that there will be any further opportunity on the retail side on the repricing, because we reprice the old vintage book. On the corporate, this is a journey we started somewhere last year.

We'll continue to look at repricing our corporate assets and looking at the mix on the corporate side. That's on the first part.

As far as the last question related to the SAIBOR, I think the best benchmark to look at is the SOFR-SAIBOR spread. I think that we are currently at a stable.

You recall when the tension started, I think the SOFR-SAIBOR spread were around 125. As we speak, is around 110.

Yes, it's peaked around 140, but and I think as we speak it at a stable at 107, giving that the two factors: I think liquidity is improved quite a lot in the system. Loan portfolio is not growing as fast as the customer deposit.

Eased the pressure into the loan-to-deposit ratio. I think overall, I think we are conservatively forecasting the SAIBOR to be within this range for the remaining of the year.

Definitely, if there's been a rate cut, a further improvement into the liquidity which will have a positive impact into the SOFR-SAIBOR spread, that will have a positive impact by the virtue of our theoretical NIM sensitivity.

Again, just to add one question. Over the medium term, what's the outlook on with the repricing effect or, if any, repricing effect would happen because of lower rates, are you expect the gross yields to sustain this 6% odd level over the next 2-3 years, given that you had a sizable increase in assets in the early 2021 and 2022?

Fahad, and I think you're looking at one part. You're looking at only the gross yield.

I think what we should focus on is the NIM. If you look at the mix of our financing book, mortgage book represent almost 277 billion of our financing book, which represent almost 57 billion.

The ex-mortgage of the retail book were close to around 200 billion riyals. Now, if you look at our time deposit and the paid liability were around 300 billion plus.

On the way down environment, the interest rate, I think we are geared for a NIM expansion. Yes, probably asset yield might go lower, but is not as fast as the cost of fund, which should have a positive impact into the NIM over the medium term.

Right.

Exactly. That is why.

In a stable environment, actually the focus goes more towards trying to assess the asset yields. That is where the question came from.

Thank you. Thank you so much for your advice.

Hi. Can

Thanks. Apologies for that.

I'll just have one simple question. I noticed that in your presentation in the strategic highlights, that the percentage of customers with more than one product has declined sequentially, which was the first time that I noticed this for Al Rajhi Bank.

Can you just give me some color as to what is happening here? Is it that you're onboarding customers very strongly, and hence customer growth is outpacing your cross-sell?

Thanks. That's my question.

That's a very smart observation, valid. I think you're absolutely correct.

End of the year, the percentage of customer base of the having more than one product was 44.6. It came at the first quarter of 44.2.

The reason is we have onboarded close to 170,000 customer. The number of the improvement in the cross-sell were lower than 170%, that's why that the percentage is going lower.

Nevertheless, we see a very positive trajectory over the medium term.

Okay. Fully.

Thanks. Thanks for that.

Thank you so much.