The value drivers
The Bank’s value is driven by its Vision and Mission (refer This is Al Rajhi Bank); engagement with stakeholders (refer Stakeholders on page 35); and integrated thinking and strategy (refer Strategic Direction). The adoption of a multi-capital mindset is driving the Bank’s strategy formulation, powering it further on its integrated reporting journey.
The results chain
The Bank’s future earnings are driven by value derived from and delivered to stakeholders. The Bank creates value in this manner sustainably over time as it continues to build and strengthen relationships with its key stakeholder groups. The Bank considers such stakeholder groups to be forms of “capital”.
In addition to financial capital and Institutional capital, other capitals include investor capital, customer capital, business partner capital, employee capital, government and regulator capital, and social and environmental capital (refer Stakeholders). Together, these capitals provide the “inputs” for the Bank’s activities, enabling delivery of value to and deriving of value from stakeholders over time.
The Bank’s system for transforming input capitals through business activities into outputs, outcomes and impact is illustrated in the Value Creation Model on page 28. Each segment that follows “Inputs” is part of a results chain that represents value creation in the current, short, medium, and long term respectively.
Completing the picture
The business drivers and the results chain described previously are complemented by events and trends in the internal and external operating environment (refer Operating Context), good governance (refer Governance) risk management practices (refer Risk Management), and the ongoing monitoring and evaluation of the Bank’s performance in the current, short, medium, and long term.
Despite the vibrant nature of the value creation process – where the capitals are constantly rising, falling, or being preserved – the Bank remains focused on increasing the overall stock of capital (refer Business in Perspective).