Investor Presentation 4Q & FY 2019 Results Investor - - PowerPoint PPT Presentation

Investor Presentation

The National Commercial Bank 4Q & FY 2019 Results

NCB Investor Relations | 4Q 2019 Investor Presentation

Investor Presentation Content

2

Page 4 NCB Investment Case Page 18 Strategy Overview Page 20 Financial Results Highlights Page 28 Financial Results Details Page 3 NCB at a glance Page 42 Segmental Review Page 49 Additional Information

NCB Investor Relations | 4Q 2019 Investor Presentation

NCB at a glance

NCB is the leading bank in Saudi Arabia

3 *Includes Alahli Esnad (1,679 employees) - fully owned subsidiary engaged in outsourcing and manpower services in KSA Employees*

12,883

Assets

SAR507 bn

Deposits

SAR353 bn

Market Cap

SAR145 bn

NCB Group up Pr Prese sence ce NCB's s busi usiness mo ss model delivers s diversi sified operating i inco come me Customers & D & Dig igit itiz izatio ion Stro trong & & Stable Cre Credit t Rati tings

Operating Income SAR20.6bn Net Income

SAR11.4 bn

C/I Ratio

30.7%

ROE

18.4 %

CoR

0.51%

10.1bn 49% RETAIL 4.4bn 21% CORPORATE 3.9bn 19% TREASURY

SAR 20.6bn 89% NC NCB

1.5bn 7% International 0.8bn 4% Capital Markets

Clients

8m

19% 71%

2018 2019

Digi gital A Account nt Openi ning ng 28% 51%

2018 2019

Digi gital Sales P Pene netra ration n

Digital Financial Transactions

>97%

Robotics

+55 bots

NC NCB Long ng term rm Short T Term Outlook

• ok

S&P BBB+ A-2 Stable Fitch A- F1 Stable Moody’s* A1 P-1 Stable Capital Intelligence A+ A1 Stable

Gove

• vernment of
• f Sa

Saudi A Arabia

S&P A- Stable Fitch A Stable Moody’s A1 Stable Capital Intelligence A+ Stable

Inte nterna nati tiona nal: Subsidiary i y in n Turkey Türkiye Finans Katılım Bankası (TFKB) 310 branches, 635 ATMs 3,461 employees Offices in Seoul & Shanghai

Wholesale branches in Bahrain & Singapore

NCB G Gro roup

Headqu dquartered i d in Saudi di A Arabi bia 434 branches, 3,625 ATMs 138 Remittance centers 7,499 Employees

NCB Ca CB Capital Saudi Arabia

22 Branches 244 Employees

NCB INVESTMENT CASE

• Supportive macro environment
• Attractive banking market
• Leading, diversified franchise
• Strong execution track record

NCB Investor Relations | 4Q 2019 Investor Presentation

Supportive macro environment (1/4)

Non-Oil GDP pickup expected, supported by progress of ongoing Vision Realization Programs

5

• 3.5%
• 15.8%
• 12.9%
• 9.2%
• 5.9%
• 4.7%

9.7%

• 8.7%
• 3.7%

1.4% 9.2% 8.6%

• 25.0%
• 20.0%
• 15.0%
• 10.0%
• 5.0%

2014 2015 2016 2017 2018 2019P

Twin Ba Balances es ( (%) %)

Budget Balance / GDP Current Account Balance / GDP

11.9% 2.5% 0.8% 0.2% 2.8% 7.1%

(0)

2014 2015 2016 2017 2018 2019

Monetary ary Supply g gro rowth th

(M3) Monetary Supply growth

2.2% 1.3% 2.0%

• 0.9%

2.5%

• 1.0%

2.0%

(0) (0) (0)

2014 2015 2016 2017 2018 2019P 2020F

In Inflat ation Rat ate ( (%)

Source: Thomson Reuters, Ministry of Finance, SAMA and Tadawul

0.9% 2.3% 1.6%

• 1.4%

1.3%

• 2.8%

2.1% 1.3% 0.0% 0.6% 0.8% 2.9% 0.0%

• 0.1%
• 0.1%

0.0% 3.7% 4.1% 1.7%

• 0.7%

2.4% 0.4%

• 9.0%
• 7.0%
• 5.0%
• 3.0%
• 1.0%

(0) (0) (0) (0)

2014 2015 2016 2017 2018 2019P

Re Real G GDP DP

Oil Sector Non-oil Private Import Duties Real GDP

NCB Investor Relations | 4Q 2019 Investor Presentation

Supportive macro environment (2/4)

Fiscal policy to underpin economic growth

6 Source: Thomson Reuters, Ministry of Finance, SAMA and Tadawul

9.8 9.7 10.2 10.5 10.0 10.3 9.8

97.2 50.2 40.9 52.4 70.1 64.0 60.0

5 10 15 20 25

2014 2015 2016 2017 2018 2019 2020F

Oil il P Productio ion

Oil Production Average Oil Price (USD)

• 187

87

• 100
• 389
• 311
• 238
• 174
• 131
• 3.5%
• 15.8% -12.9% -9.2% -5.9% -4.7% -6.4%
• 100.0%
• 80.0%
• 60.0%
• 40.0%
• 20.0%

0.0% (600) (500) (400) (300) (200) (100) 100 200 300 400

2014 2015 2016 2017 2018 2019P 2020F

Fiscal al B Bal alan ance

Fiscal Balance Fiscal Balance as % of GDP

44 142 247 260 305 382 70 184 255 296

44 142 317 443 560 678 754 1.6% 5.8% 13.1% 17.2% 19.0% 24.0%

• 8.0%
• 3.0%

200 400 600 800 1,000

2014 2015 2016 2017 2018 2019P 2020F

Gover ernmen ent D Deb ebt (SARbn)

Domestic International Debt to GDP Ratio (%)

725 610 529 482 448 439 43 60 39 35 33 32

768 670 568 517 481 471

100 200 300 400 500 600 700 800 900

2014 2015 2016 2017 2018 2019P

Forei eign R Res eser erves es ( (USDbn)

SAMA Banks

370 264 134 208 205 172 173 740 714 696 722 874 877 847

1,110 978 830 930 1,079 1,048 1,020

200 400 600 800 1,000 1,200

2014 2015 2016 2017 2018 2019P 2020F

Gover ernmen ent E Expen enditure ( e (SARbn)

Capex Current Expenditure (Opex)

913 446 334 436 611 602 513 131 169 186 256 294 315 320

1,044 616 519 692 905 917 833

200 400 600 800 1,000 1,200

2014 2015 2016 2017 2018 2019P 2020F

Gover ernmen ent R Rev even enue e (SARbn)

Oil Revenues Non-oil Revenues

NCB Investor Relations | 4Q 2019 Investor Presentation

Supportive macro environment (3/4)

Vision 2030 continues to drive economic growth and

• progress. NCB is fully committed to the success of

The National Agenda

7

• National Transformation Program
• Fiscal Balance Program
• PIF Program
• Financial Sector Development Program
• Privatization Program
• Quality of Life Program
• Housing Program
• National Industrial Development and

Logistics Program

• Strategic Partnerships Program
• National Companies Promotion Program
• Saudi Character Enrichment Program
• Enriching the Hajj and Umrah Experience

Program Vis isio ion 2030 K 030 Key Mil ilestones

Vis isio ion R Realiz izatio ion Pro rogra rams

Private sector contribution to GDP to reach 65% by 2030 Balancing the budget and eliminating the fiscal deficit by 2023 Public debt to GDP to remain below 30% Raise Saudi home ownership to 70% by 2030 FDI to reach 1.46% of GDP by 2020 (~SAR45 billion) Women economic participation rate to reach 30% by 2030 Increase share (in absolute number) of non-cash transactions to 28% Increase share of capital markets assets to 45% by 2020

65%

Private Sector Contribution

SME Contribution to GDP targeted to reach 35% by 2030 Lower the rate of unemployment to 7%

A T Thrivi ving Econ

• nom
• my

A V Vibra brant nt Society y An A Ambitiou

• us Nation
• n

Pilla llars

<30%

Debt to GDP

70%

Home Ownership

0%

Fiscal Deficit

35%

SME GDP Contribution

45%

Capital Market Assets

45bn

Foreign Direct Investment

28%

Non-Cash Transactions

30%

Female Workforce Participation

7%

Unemployment Rate

NCB Investor Relations | 4Q 2019 Investor Presentation

NCB leverages competitiveness and scale to unlock opportunities in the national agenda and deliver value to stakeholders

37bn

Home finance Ena nabl bling ng fina nanc ncial ins nstitutions ns to support private s sector g growth Developing a ng an a n adv dvanc nced d capital ma marke ket Promoting ng and nd ena nabl bling ng fina nanc ncial planni nning ng NCB Con

• ntribution
• ns to t
• the Sa

Saudi V Vision

• n 2030 Financial Se

Sector

• r D

Deve velop

• pment P

Prog

• gram

Leading provider of financing to the full spectrum of KSA businesses; 15.1% Corporate market share (3Q 2019) and SAR 129bn portfolio Primary Dealer in local government securities with a SAR 69bn KSA Government Bond investment portfolio Provided home financing for 58,000 Saudi families with a portfolio of SAR 37bn A leader in the SME segment, with SAR 23bn of credit extended to SMEs across KSA (2018) Ara ramco co I IPO PO joint global coordinator, book runner and underwriter USD 7.5bn KSA Sovereign bond USD 12bn Saudi Aramco bond Largest Asset Manager and Corporate Savings Advisor, with more than 50,000 individual participants and full suite of Takaful protection and savings products Expanding participation in the financial services sector with 6 million KSA based customers through a comprehensive physical and digital distribution network

129bn 69bn 23bn

Corporate Savings Advisor

6mn

Corporate lending SME credit KSA bonds

Supportive Macro Environment (4/4)

NCB Is a key contributor to economic transformation and the FSDP

8

Customers in KSA

Capital Markets Advisor

NCB Investor Relations | 4Q 2019 Investor Presentation

0.86% 2.24% 0.26% 1.91%

(0) (0)

2014 2015 2016 2017 2018 2019

Inter erbank R k Rates es ( (%) %)

3M SAR SAIBOR 3M USD LIBOR

803 903 912 888 899 902 402 420 440 452 480 491 1,251 1,362 1,407 1,394 1,433 1,443 11.6% 8.9% 3.3%

• 0.9%

2.8% 3.1%

• 30.0%
• 25.0%
• 20.0%
• 15.0%
• 10.0%
• 5.0%

2014 2015 2016 2017 2018 3Q19

Ba Bank L k Len ending (SARbn)

Corporate Retail Growth Rate (YoY%)

Attractive Banking Market (1/3)

Lending capacity enables KSA banks to capture

• pportunities emerging from the national

transformation initiatives

9 Source: Thomson Reuters, SAMA, Banks’ Annual Reports

75% 80% 81% 80% 77% 77%

2014 2015 2016 2017 2018 2019

Loan an to to Deposit Rati atio ( (%)

Loan to Deposit Ratio (%)

1,576 1,605 1,617 1,619 1,661 1,796 12.4% 1.9% 0.8% 0.1% 2.6% 8.1%

• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

2014 2015 2016 2017 2018 2019

Ba Bank D k Dep eposits ( (SARbn)

Deposits Growth Rate (YoY%)

NCB Investor Relations | 4Q 2019 Investor Presentation

1.12% 1.13% 1.24% 1.45% 1.85% 1.90% 183% 172% 178% 162% 158% 145%

2014 2015 2016 2017 2018 3Q19

NP NPL & C Cover erage R e Ratios (%) %)

NPL Ratio NPL Coverage Ratio

Attractive Banking Market (2/3)

Strong capitalization, high credit quality, adequate coverage and a prudent regulatory environment expected to sustain banking sector profitability

10

• 75.8

80.0 83.1 86.6 91.3 9.1% 5.7% 3.8% 4.3% 5.4%

• 9.9%
• 7.9%
• 5.9%
• 3.9%
• 1.9%

0.1% 2.1% 4.1% 6.1% 8.1% 10.1% 20 40 60 80 100 120 140 160 180

2014 2015 2016 2017 2018

Total tal O Operati rating In Income me (SARbn)

Revenue (FY) Growth Rate (YoY%)

• 41.5

43.7 41.3 45.0 50.0 10.2% 5.4%

• 5.4%

8.7% 11.1%

• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 10 20 30 40 50 60 70 80 90 100

2014 2015 2016 2017 2018

Profits (S (SARb ARbn)

Profits Growth Rate (YoY%) Source: Thomson Reuters, SAMA, Banks’ Annual Reports, Worldbank

USA CHN UK KUW UAE RUS BRA KS KSA IND

0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%

K 10K 20K 30K 40K 50K 60K 70K

Domestic credit to private sector (% of GDP) GDP per Capita (current USD)

KSA i is a an u under erbanked ked market ket

16.2% 2% 16.2% 2% 17.5% 5% 18. 8.3% 18. 8.5% 5% 18.1%

2014 2015 2016 2017 2018 2019

Tier r 1 Cap apital al A Adequac acy R Rati atio ( (%)

NCB Investor Relations | 4Q 2019 Investor Presentation

30. 0.9 31.7 1.7 32.4 .4 33. 33.1 33. 33.7 34. 4.3 34. 4.8

2014 2015 2016 2017 2018 2019 2020

KSA Pop

• pula

ulati tion

• n* (

(mn mn)

KSA Total Population

6. 6.88 6. 6.08 08 5.71 71 1.0 1.07

0-24 25-39 40-59 60+

6. 6.50 4. 4.20 2.97 97 0. 0.81

KSA Demo mograp raphi hics 2 2019* (mn mn)

Male Age Group Female

6% 12 12% 23% 26% 34% 68% 74%

1 1 1 1

Russia Saudi Arabia Japan China Germany United Kingdom United States

Mortg rtgag age D Depth* th* ( (%)

Attractive Banking Market (3/3)

The mortgage market has ample room to grow. NCB is well positioned to leverage this opportunity in 2020

11

Positive enviro ronme ment c t conducive to to conti tinued mo mortg rtgag age g gro rowth

• Saudi Vision 2030 Housing Program home ownership goals:
• 60% by 2020
• 70% by 2030

(Baseline: 50% home ownership in 2016, 62% at 2019)

• Supportive regulatory environment (90-95% LTV, 50% Risk Weight
• n Residential Real Estate)
• Real Estate Development Fund (REDF) subsidization for qualifying

Saudi households; increasing awareness and demand

• Ministry of Housing and related Government entities stimulating

supply of affordable housing

Source: Gastat (*middle of the year estimates based

• n demographic survey 2016)

Source: Central Banks, IMF (*Latest available dates, ranging from 31 December 2018 to 2019) Source: United Nations (*Estimates)

130 149 158 157 154 154 104 113 122 133 152 190 234 4 26 262 2 280 80 290 90 306 306 344 44 8% 8% 11% 12% 2% 11% 11% 12% 2%

• 3%
• 1%

1 1 1 1 1 1

2014 2015 2016 2017 2018 3Q19

Re Retail Mo Mortgages (S (SARb ARbn)

Banks and Others REDF Mortgages to GDP, %

NCB Investor Relations | 4Q 2019 Investor Presentation

KSA Total al M Mark arket NCB Mark arket S t Share hare in SARbn NCB Mark arket t Share hare i in % Rank k KS KSA Over erall b banki king

(Assets) SAR 2,356 bn

20.2%

#1 Corp rporate rate b ban anking

(Performing Financing) SAR 918 bn

15.1%

#1 Ret etail b banki king

(Performing Financing) SAR 524 bn

21.7%

#2 Tre reas asury ry

(Investments & Placements) SAR 624bn

23.2%

#1 Asset et M Managem emen ent

(AUMs) SAR 482bn

30.5%

#1 Br Broker kerage

(Value Traded) SAR 1,760bn

10.4%

#2

Leading, diversified franchise

NCB Market Position as of 3Q 2019

12

471 139 113 145 147 183 1,885 779 411 479 335 1,577

NCB Investor Relations | 4Q 2019 Investor Presentation

Net Income (SARmn) Investment Income (SARmn) Net Income (SARmn)

Strong Execution Track Record (1/5)

13

Delivery Against Strategic Priorities

Reta tail Cor

• rpor
• rat

ate Treasur sury NCB C Cap apital al Türkiy iye Fin inans K Katıl ılım ım Bankası ( ı (TFKB)

Net Income (SARmn) Mortgage Financing Growth (SARbn) Net Income Return on Assets 24 37

4Q 18 4Q 19

+57 57% +32 32% +21 21% +33p 33ps +2% 2%

376 459

2018 2019

+22% 22% +1 +175% 5%

4,375 5,765

2018 2019 1.84% 2.17% 2018 2019 3,418 3,497

2018 2019 514 1,411

2018 2019 2,399 2,905

2018 2019 Cost of Risk Net Income (TRYmn) AUM

+8% 8%

445 377

2018 2019

• 15

15% +7 +76bp bps

SAR 156bn 2.21%

LDR

• 31

31bps

76%

NCB Investor Relations | 4Q 2019 Investor Presentation

Strong Execution Track Record (2/5)

14

Delivery Against Strategic Enablers

Dig igit itiz izatio ion

Digital Transactors (% of Total) Digital Sales (% of Total) Branch Transactions Digital Account Opening

Lean D Dis istrib ibutio ion

Branches Self-Service Kiosks Average FTE / new Branch FTE / Branch 39% 50% 62% 2017 2018 2019

+12ppt 2ppts

YoY

• Y

51%

+23 23ppt ppts

2.2%

• 75bp

5bps

19% 71%

2018 2019

+52ppt 2ppts

401 434

4Q 18 4Q 19

+33 33

315

+21 210

10.4 9.9 9.6 2017 2018 2019

• 3%

3%

YoY

• Y

Pr Product uctivity

Front to Back Office Ratio NOR per Employee (SARmn) Cost to Income Ratio, excl. International

72% to 28%

+30b 30bps

6

• 23

237bps ps

29.3%

+11% 11%

YoY

• Y

2.1 2.2 2.5 2017 2018 2019

NCB Investor Relations | 4Q 2019 Investor Presentation

449 443 445 452 507 +3%

100 200 300 400 500 600 700 800 900

2015 2016 2017 2018 2019

Total As Assets (S (SARb ARbn)

17.2% 19.2% 20.0% 20.6% 18.7% 15.1% 16.9% 17.7% 18.5% 18.0% 13.5% 15.3% 15.7% 16.6% 16.2%

10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0%

2015 2016 2017 2018 2019

Cap apital al R Rati atios ( (%)

TC ratio T1 ratio CET1 ratio

152.3% 172.5% 177.3% 176.0% 168.9%

10.0% 60.0% 110.0% 160.0% 210.0%

2015 2016 2017 2018 2019

LCR Ra R Ratio (% (%)

Strong Execution Track Record (3/5)

Maintaining Balance Sheet Strength

15

136. 36.0% 0% 119. 9.0% 0% 128 28.0% 124. 4.4% 4% 78. 8.1% 80. 0.3% 3% 80 80.7% 83 83.2% 79. 9.9% 9%

10.0% 30.0% 50.0% 70.0% 90.0% 110.0% 130.0% 150.0%

2015 2016 2017 2018 2019

LTD a D and NSFR Ra R Ratios (% (%)

NSFR (%) Financing to customers' deposit ratio

NCB Investor Relations | 4Q 2019 Investor Presentation

Strong Execution Track Record (4/5)

Steady medium-term financial performance

16 * Net income attributable to equity holders and returns restated for 2018 only, to reflect the change in classification of zakat & income tax from comprehensive income to the income statement during 2019.

19.2% 17.8% 17.4% 16.2% 18.4% 18.1% 20.8% 2.1% 2.1% 2.2% 2.2% 2.4%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0%

2015 2016 2017 2018 2019

Ret eturns* ( (%) %)

ROE (%) ROE pre-zakat (%) ROA (%)

37.4% 37.7% 35.0% 34.1% 30.7%

20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

2015 2016 2017 2018 2019

Cost to to In Income me R Rati atio ( (%)

3.04% 3.35% 3.48% 3.81% 3.77%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00%

2015 2016 2017 2018 2019

Net Net Spec ecial C Commission M Margin (%) %)

12.6 13.5 13.7 15.1 15.8 4.9 5.1 4.7 3.8 4.8 17.5 18.6 18.3 18.9 20.6 +4%

5 10 15 20 25 30 35

2015 2016 2017 2018 2019

Total tal O Operati rating In Income me (SARbn)

Net special commission income Fee and other income

9.1 9.3 9.8 9.6 11.4 1.1 1.4

9.1 .1 9. 9.3 3 9.8 8 10.7 7 12. 2.8 +9%

5 10 15 20 25

2015 2016 2017 2018 2019

Net In Income me Attri ttribute ted to to Equity Ho Holders rs b before re Z Zak akat at & In Income me T Tax ax (SARbn)

Zakat and income tax expense Net income attributed to equity holders after Zakat & income tax

3.53% 3.65% 3.63% 3.69%

3.6 .61% 1% 3.77% 77% 3.52 52%

2018 2019*

NSCI M CI Mar argin

Guidance range Act ctual al

2018 2019

Strong Execution Track Record (5/5)

Delivery against guidance

17

FY FY 20 2018 Guida danc nce* FY FY 20 2018 Rep eported ed FY FY 20 2019 Guida danc nce FY FY 20 2019 Rep eported ed Fina nanc ncing ng Gro rowth +5-8% +6.5% +4-6% +6.5% NSCI M I Margi rgin 3.53% - 3.63% 3.61% 3.65% - 3.69%** 3,77% Cos

• st to I
• Incom
• me

Below 35% 34.1% Below 34% 30.7% Cost st of R f Risk sk 0.6% - 0.8% 0.52% 0.6% - 0.8% 0.51% Tier 1 C CAR AR 16% - 18% 18.5% 16% - 18% 18.0%

** FY 2019 outlook provided in 2Q and 3Q 2019 were at similar levels of ~3.5% Excluding the restatement impact of fee amortization, NSCI margin would have been 3.52%

* NCB started providing guidance in 2018

5.0% 4.0% 8.0% 6.0%

6. 6.5% 6. 6.5%

2018 2019

Fin inancin ing G g Growt wth

Guidance range Act ctual al Below 34.0% Below 34.0%

34.1% .1% 30. 0.7% 7%

2018 2019

Cos

• st t

to

• Incom
• me

Guidance range Act ctual al 0.60% 0.60% 0.80% 0.80% 0.5 .52% 0.5 .51%

2018 2019

Cos

• st of
• f Risk

Guidance range Act ctual al 16.0% 16.0% 18.0% 18.0%

18 18.5 .5% 18 18.0 .0%

2018 2019

Tier er 1 C CAR

Guidance range Act ctual al

STRATEGY OVERVIEW

NCB Investor Relations | 4Q 2019 Investor Presentation

Strategic Enablers

Dig igit ital Pr Product uctivity

Accelerat ate d digital al tran ansformat ation Inc Incre rease Opera rationa nal Efficienc ncy

• Digital sales
• Advanced analytics
• Lean distribution
• Robotics & AI

Funding

Cu Curre rrent t Acco ccoun unts Wh Whole lesale le Fund nding ng

Grow C Current Accou

• unts

Expand nd Fundi nding ng Opt Options

• Digital & physical

distribution

• Cash management
• Customer coverage

models

• Programs across

maturity and seniority spectrums

• Mix and cost
• ptimization

2020 Strategy Overview

Strategic agenda for 2020 positions NCB for continued growth

19

Asset Deployment

Reta tail Cor

• rpor
• rat

ate Treasur sury Subsid idia iarie ies

Grow M Mort rtga gage ges Im Impro rove R Returns rns Sustain Inv n Investment nt Retur urns s Grow V Value Cont ntri ribu bution

• Sales channels
• Digitization
• Mega financing
• SME
• Transaction banking
• Recurring revenues
• Portfolio liquidity &

quality

• Key business lines
• Efficiency &

productivity

FINANCIAL RESULTS HIGHLIGHTS

4Q & FY 2019 Results

NCB Investor Relations | 4Q 2019 Investor Presentation

Balance e Sheet eet Asset Quality, Capital & Liquidity

Financial Results Update

4Q 2019 Results highlights

21 9,594 683 996 115 215 78 (327) 46 11,401 +19%

FY 18 NSCI Fee & Other Income Expenses Impair- ments* Other Non- Operating Zakat & Tax Minorities FY 19

Net Inc Income after Z r Zakat a and nd Inc Income Tax a attri ribu buted d to E Equ quity y Hol

• lders (

(SA SARmn) Fina nanc ncing ng (SA SARbn) De Deposi sits ( s (SA SARbn)

31 319 35 353 +11%

4Q 18 4Q 19 265 65 282 82 +6%

4Q 18 4Q 19 * Impairments include impairment charges for financing, investments and goodwill

NPL & & COR COR (% (%) CET1 a and nd LTD ( (%) %)

1.9 .9% 1.8 .8% 0.5 .5% 0.5 .5%

• 0.1%

4Q 18 4Q 19

NPL ratio CoR YTD

16. 6.6% 6% 16.2 .2% 83% 3% 80% 0%

4Q 18 4Q 19

CET1 LTD

NCB Investor Relations | 4Q 2019 Investor Presentation

Income Statement

2019 Net income after Zakat and income tax growth from improved NSCI and investment income, improved

• perating efficiency and stable cost of risk

Profitability Trends

SAR (mn) 4Q 20 2019 3Q 3Q 2 201 019 4Q 20 2018 YoY % c % change nge FY FY 20 2019 FY FY 20 2018 YoY % c % change nge Net special commission income 4,152 3,929 4,036 +3% 15,807 15,123 +5% Fee and other income 1,260 1,136 719 +75% 4,801 3,804 +26% Total o

• pera

rating ng inc ncome 5,41 412 5,066 066 4,75 ,756 +14% 4% 20, 0,607 607 18,927 27 +9 +9% Operating expenses (1,453) (1,590) (1,475)

• 1%

(6,331) (6,446)

• 2%

Total impairment charge (287) (663) (601)

• 52%

(1,420) (1,635)

• 13%

Inc Income from o

• pera

rations ns, ne net 3,6 ,672 72 2, 2,813 2,680 80 +3 +37% 12,856 856 10,846 46 +1 +19% Net et income b e bef efore e Zakat a and i income e tax 3,6 ,673 73 2,885 885 2,689 89 +3 +37% 12, 2,919 10, 0,830 30 +1 +19% Zakat and Income Tax (414) (288) 50

• 935%

(1,435) (1,108) +29% Net et income e for t the e per eriod a after er Z Zakat and income t e tax attri ribu butabl ble to e equ quity y holde ders rs 3,21 212 2,607 607 2,70 ,706 +1 +19% 11,401 9, 9,594 94 +1 +19% 4,441 4,723 4,755 4,685 4,983 315 297 354 381 429 4,75 ,756 5, 5,021 5, 5,109 5,066 066 5,41 412 +14%

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

4Q 18 1Q 19 2Q 19 3Q 19 4Q 19

Total tal O Operati rating In Income me (SARmn mn)

International Domestic 22

2,794 2,790 2,692 2,655 3,028 (89) 49 52 (48) 184 2,70 ,706 2,83 838 2,74 ,744 2,607 607 3,21 212 +19%

(200) 800 1,800 2,800 3,800 4,800 5,800 6,800 7,800

4Q 18 1Q 19 2Q 19 3Q 19 4Q 19

Net i income me for t r the he p peri riod af after Z r Zak akat at an and i income me tax tax att attri ributab table to to e equity ho holders rs ( (SARmn mn)

International Domestic

NCB Investor Relations | 4Q 2019 Investor Presentation

Balance Sheet

12% Increase in total assets on the back of growth in financing and investments

Balance Sheet

SAR (mn) 4Q 20 2019 3Q 3Q 2 201 019 4Q 20 2018 YoY % c % change nge Cash & due from banks 61,948 52,521 48,479 +28% Investments, net 134,077 132,467 118,090 +14% Financing and advances, net 282,289 280,535 265,062 +6% Total al as assets 507,2 7,264 49 498,045 45 452,1 ,177 77 +12% 2% Due to banks and other financial institutions 62,186 66,927 45,963 +35% Customers' deposits 353,389 340,382 318,701 +11% Debt securities issued 1,016 1,664 9,431

• 89%

Total l lia iabil ilit itie ies 437,4 7,476 76 430, 30,169 69 38 386, 6,508 08 +1 +13% Common e n equ quity 61,888 888 59,9 ,979 79 57,73 7,737 +7 +7% Total e equity 69,78 ,788 67,8 7,876 76 65 65,669 669 +6 +6% 131 130 135 137 129 104 106 110 112 123 10 12 12 12 11 21 21 20 19 20 265 65 269 69 276 76 281 81 282 82 +6%

100 200 300 400 500

4Q 18 1Q 19 2Q 19 3Q 19 4Q 19

Financing & A Advances es, n net et (SARbn)

Corporate Consumer and credit card Others International

255 236 240 255 251 50 61 73 73 90 14 13 14 12 13 31 319 31 310 32 327 340 40 353 53 +11%

100 200 300 400 500 600

4Q 18 1Q 19 2Q 19 3Q 19 4Q 19

Custo tome mers rs' D ' Deposits (SARbn)

CASA Time Others

Domestic Deposits 93% International Deposits 7%

Custo tome mers rs' ' Deposits ts M Mix ( x (SARbn)

31 319 353 53

4Q 18 4Q 19 23

NCB Investor Relations | 4Q 2019 Investor Presentation

Segmental Information (1/3)

FY 2019 Net income before Zakat and income tax growth in all segments

10, 0,830 30 1,390 390 50 506 79 79 84 84 30 30 12, 2,919

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

FY 18 Retail Corporate Treasury Capital Markets International FY 19

FY 1 19 9 Net Net Income Bef e Before e Za Zaka kat & I Income T e Tax Movem emen ent ( (SARmn)

2,689 89 554 554 50 50 54 54 54 54 272 72 3, 3,67 673 3

500 1,000 1,500 2,000 2,500

4Q 18 Retail Corporate Treasury Capital Markets International 4Q 19

4Q 19 Net 9 Net Income Bef e Before e Za Zaka kat & & Income T e Tax Movem emen ent ( (SARmn)

Retail 45% Corporate 22% Treasury 27% Capital Markets 4% International 2%

FY 19 Net 9 Net I Income e Bef Before Za e Zaka kat & & Income e Tax ( (SARbn)

24

2.7 .7 3.7 .7

4Q 18 4Q 19

10.8 .8 12. 2.9

FY 18 FY 19

Retail 47% Corporate 21% Treasury 23% Capital Markets 4% International 5%

4Q 19 Net 9 Net Income Bef e Before e Za Zaka kat & & Income T e Tax ( (SARbn)

NCB Investor Relations | 4Q 2019 Investor Presentation

Segmental Information (2/3)

FY 2019 Total operating income growth mainly from Retail and Corporate

18,927 27 1,380 80 32 324 (24) 4) 67 67 (66) 66) 20, 0,607 607

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

FY 18 Retail Corporate Treasury Capital Markets International FY 19

FY 1 19 Total al O Operati rating In Income me Moveme ment ( t (SARmn mn)

4,75 ,756 41 415 80 80 (17) 7) 64 64 115 5,412 2

200 400 600 800 1,000 1,200

4Q 18 Retail Corporate Treasury Capital Markets International 4Q 19

4Q 19 T Total tal Operati rating In Income me M Moveme ment ( t (SARmn mn)

Retail 49% Corporate 21% Treasury 19% Capital Markets 4% International 7%

FY 1 19 Total al O Operati rating In Income me (SARb ARbn)

Retail 49% Corporate 22% Treasury 17% Capital Markets 4% International 8%

4Q 19 T Total tal Operati rating In Income me ( (SARb ARbn)

4. 4.8 5. 5.4

4Q 18 4Q 19 25

18. 8.9 20.6 .6

FY 18 FY 19

NCB Investor Relations | 4Q 2019 Investor Presentation

Segmental Information (3/3)

FY 2019 Asset growth mainly driven by Retail and Treasury segments

Man anag ageme ment C Comme mmentary tary

• 2019 Total Assets increased by 12% due to higher financing (+6%)

and investments (+14%).

• Total Financing increased by 6%: Retail increased by 18% while

Corporate declined by 1%.

• Customers’ deposits increased by 11% from Corporate, International

and Others (Treasury) segments offsetting the fall in Retail segment.

• CASA balances at 71% of total deposits at 4Q 2019 compared with

80% at 4Q 2018.

134 144 154 134 141 133 150 178 185 2 2 2 33 33 33 45 452 49 498 50 507 +12%

100 200 300 400 500 600 700 800 900

4Q 18 3Q 19 4Q 19

Total As Assets (S (SARb ARbn)

Retail Corporate Treasury Capital Markets International

104 112 123 131 137 129 21 19 20 10 12 11 265 65 281 81 282 82 +6%

100 200 300 400 500

4Q 18 3Q 19 4Q 19

Financing a and A Advances es, net et ( (SARbn)

Consumer and credit card Corporate International Other 26

243 234 229 48 70 87 9 11 13 19 25 26 31 319 340 40 353 53 +11%

100 200 300 400 500 600

4Q 18 3Q 19 4Q 19

Custo tome mers rs' D ' Deposits (SARbn)

Retail Corporate Others International

NCB Investor Relations | 4Q 2019 Investor Presentation

2020 Guidance

27

Economic outlook provides opportunities

Mac acro ro-Ec Econ

• nom
• mic O

Out utlook look

20 2020 20 O Outlook Oil il P Pric ice USD 60 / bbl US US F Fed Ra Rates Stable GD GDP Gr Growth Real GDP 2.3% Budge dget

• Revenue SAR 833 bn
• Expenditure SAR 1.0 tr
• Deficit 6.4% of GDP

Inf Inflation 2.0%

NC NCB B Financial G Guidance

20 2019 R Reported 202 020 G 0 Guid idance Fina nanc ncing ng Gro rowth 6% 10% - 12% NSCI M I Margi rgin 3.77% 3.60% - 3.80% Cos

• st to I
• Incom
• me

30.7% Below 32% Cost st of R f Risk sk 0.51% 0.6% - 0.8% Tier 1 C CAR AR 18.0% 16% - 18%

FINANCIAL RESULTS DETAILS

4Q & FY 2019 Results

NCB Investor Relations | 4Q 2019 Investor Presentation

4.04 3.93 4.15 0.72 72 1.14 1.26 26 4. 4.76 5. 5.07 5.41 41 +14%

2 4 6 8 10 12 14 16 18

4Q 18 3Q 19 4Q 19

Total tal O Operati rating In Income me (SARbn)

Fee and other income Net special commission income

15.12 15.81 3.80 4.80 18. 8.93 20. 0.61 61 +9%

5 10 15 20 25 30 35

FY 18 FY 19

Operating Income Highlights

Higher FY 2019 total operating income driven by higher NSCI and fee & other income

Man anag ageme ment C Comme mmentary tary

• FY 2019 total operating income increased 9% YoY from a 5%

improvement in net special commission income and 175% higher investment-related income, partly offset by a decrease in FX revenue by 9%

• FY 2019 international operating income decreased by 4% mainly due

to 17% depreciation of the average Turkish lira rate as compared with 2018, and higher risk cost by 31%.

• 4Q 2019 total operating income increased by 14% from 3% growth in

NSCI and 75% growth in fee and other income, driven by investment income.

18. 8.93 0.72 72 1.0 .03 (0. 0.07 07) 20. 0.61 61 19.15 1.46 17.40 1.53

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00

FY 18 NSCI Fee and other income International NOR FY 19

FY 1 19 9 Total O Oper erating I Income e Movem emen ent ( (SARbn)

4. 4.76 0. 0.07 07 0.47 47 0.1 .11 5.41 41 4.98 0.43 4.44 0.31

1 1 2 2 3 3 4

4Q 18 NSCI Fee and other income International NOR 4Q 19

4Q 19 T 9 Total Oper erating I Income M e Movem emen ent ( (SARbn)

29 Domestic Intl. Domestic Intl.

NCB Investor Relations | 4Q 2019 Investor Presentation

15,123 1,356 216 (394) (34) (7) 15,807 +5% 3.81% +16 bps +0 bps

• 8 bps
• 10 bps
• 0 bps
• 2 bps

3.77% (454)

• 1,000

FY 18 Financing mix & yield Investments Deposit mix & cost Wholesale funding Other International FY 19

Movem emen ent i in Net Net Spec ecial Commision Income ( e (SARmn) & & NS NSCI Margin (%) %)

Net special commission income

FY 2019 net special commission income grew by 5% YoY

30

Mana nage gement nt Comment ntary ry

• FY 2019 NSCI improved by 5% on higher asset

mix yield partly offset by increase in cost of funds.

• FY 2019 Net special commission margin

decreased by 4bps YoY to 3.77%.

• NSCI margin improvement by 16bps due to

increase in financing portfolio, supported by high-yield mortgages and improved corporate yields; offset by 18 bps decline due to change in deposit mix and increase in cost of funds.

* Excluding the restatement impact of fee amortization

3.79% 3.83% 3.79% 3.73% 3.74% 3.81 81% 3. 3.80% 0% 3. 3.79% 9% 3.75% 5% 3.77% 77% 4.15% 3.48% 3.99% 4.15% 4.22%

FY 18 1Q 19 1H 19 9M 19 FY 19

Net Net Spec ecial C Commission M Margin (%) %)

Domestic Group International

Do Domest stic +SAR 717mn (+5%}

Outlo look @ k @3Q 3.51% Guidan ance ce 3.65%-3.69%

3.52%*

NCB Investor Relations | 4Q 2019 Investor Presentation

Fee and other income

FY 2019 fee and other income grew by 26% YoY due to higher investment income and lower other operating expenses

31

Man anag ageme ment C Comme mmentary tary

• FY 2019 Fee and other income increased

by 26% YoY due to 175% growth in investment-related income and 51% lower

• ther operating expenses.
• 4Q 2019 Fees and other income increased

by 75% YoY mainly due to higher investment income, trade and investment management fees.

523 590 665 246 280 253 48 268 360 (97) (2) (18) 71 719 1,136 1,26 260 +75%

(400) 100 600 1,100 1,600 2,100 2,600

4Q 18 3Q 19 4Q 19

Fee ee and Other er I Income ( e (SARmn)

Other operating income (expenses), net Investment-related income Exchange Income, net Fee income from banking services, net Fees from Bank nking ng Services

• SAR 2mn (-0%)

Domesti tic Inte nterna nati tiona nal.

269 237 3,804 82 (59) 15 (18) (22) (104) 897 205 4,801 4,564 3,535 +26%

500 1,000 1,500 2,000 2,500 3,000

FY 18 Finance & lending Trade finance

• Inv. mgt.

& brokerage Credit cards Others Exchange Income Investment- related income Other

• perating

expenses FY 19

FY 19 F 9 Fee a ee and o

• ther

er Income M e Movem emen ent (SARmn)

NCB Investor Relations | 4Q 2019 Investor Presentation

3,491 3,550 726 355 607 866 1,622 1,560 6,446 446 6, 6,331 331

• 2%

2,000 4,000 6,000 8,000 10,000

FY 18 FY 19

Man anag ageme ment C Comme mmentary tary

• FY 2019 Expenses declined by 2% YoY,
• FY 2019 Cost to income ratio was 30.7%, lower by 334bps compared

to FY 2018.

• The cost base improvement was driven by lower rent and premises

expenses and other G&A expenses, partly offset by higher depreciation and amortization.

• 4Q 2019 Expenses declined by 1% YoY.

Expense Highlights

Digitization, productivity enhancement and optimization delivered further expense savings in 2019

32

829 864 887 154 91 88 144 213 225 348 421 253 1,4 ,475 75 1,59 590 1,45 453

• 1%

500 1,000 1,500 2,000 2,500 3,000

4Q 18 3Q 19 4Q 19

Oper erating E Expen enses es (SARmn)

Employee-related Rent & premises Depreciation & amortization Other G&A

6,446 446 59 59 (371 71) 259 59 (62 62) 6, 6,331 331 5,604 727 5,506 940

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

FY 18 Employee- related Rent & premises Depreciation & amortization Other G&A FY 19

FY 1 19 9 Oper erating E Expen enses es Movem emen ent ( (SARmn)

34. 4.1% 32. 2.2% 2% 32.5% 5% 32. 2.1% 30. 30.7% 31 31.6% 6% 30. 30.1% 30. 30.8% 30. 30.6% 6% 29. 9.3% 3%

FY 18 1Q 19 1H 19 9M 19 FY 19

Cost to to In Income me R Rati atio ( (YTD % %)

Group (%) Excluding International (%) Domestic Intl. Guidan ance ce < 34%

NCB Investor Relations | 4Q 2019 Investor Presentation

Man anag ageme ment C Comme mmentary tary

• Total assets increased 12% due to increase in financing and

investments as well as reverse repo with SAMA for liquidity management.

• 6% Financing increase driven by 8% increase in domestic financing,

despite 8% decline in International financing impacted by Turkish Lira depreciation.

• Investments increased by 14% due to continued participation in

Saudi Government debt issuance.

Asset Highlights and Composition

12% growth in balance sheet as a result of increase in financing and investments

33

265 281 282 118 132 134 48 53 62 21 33 29 45 452 49 498 50 507 +12%

100 200 300 400 500 600 700 800 900 1,000

4Q 18 3Q 19 4Q 19

Total As Assets (S (SARb ARbn)

Financing and Advances, net Investments, net Cash, bank and SAMA balances Other assets, net

Retail 30% Corporate 26% Treasury 37% International 7%

Total Asset ets by S Seg egmen ent ( (SARbn)

452.2 17.2 16.0 13.5 8.4 507.3 +12%

4Q 18 Financing and Advances Invest- ments Cash, Bank & SAMA Other assets 4Q 19

Movem emen ent i in Total A Asset ets (SARbn)

45 452 50 507

4Q 18 4Q 19

NCB Investor Relations | 4Q 2019 Investor Presentation

Consumer financing & credit cards 43% Commerce 13% Services 12% Manufacturing 11% Utilities & health 6% Building & construction 4% Others, across 6 sectors 11%

Financing a and A Advances es, net et b by Economic Sec ector (S (SARb ARbn)

265.1 13.5 5.5 (1.9) 1.8 (1.7) 282.3 +6%

4Q 18 Mortgages Other Corporate FI Inter- national 4Q 19

Movem emen ent i in Financing ( (SARbn) Man anag ageme ment C Comme mmentary tary

• Domestically, financing grew for Retail (+18%) on the back of

mortgages and FI (+19%) portfolios from 4Q 2018.

• Corporate segment declined by 1% from 4Q 2018 due to elevated

corporate repayments during 4Q 2019.

• International financing declined 8% due principally to the weakened

Turkish Lira -11%.

Financing and Advances

6% Financing growth driven by Retail

34

104 112 123 131 137 129 21 19 20 10 12 11 265 65 281 81 282 82 +6%

50 100 150 200 250 300 350 400 450 500

4Q 18 3Q 19 4Q 19

Financing a and A Advances es, net et ( (SARbn)

Consumer and credit card Corporate International Other Reta tail +SAR 19.0bn (+18%) Guidan ance ce +4%-6%

265 65 282 82

4Q 18 4Q 19

NCB Investor Relations | 4Q 2019 Investor Presentation

5.25 (0.05) (0.32) 0.45 5.33 +2%

• 1

4Q 18 Retail Corporate International 4Q 19

Movem emen ent i in NP NPLs (SARbn)

Financing and Advances Credit Quality (1/2)

2019 NPLs rose moderately by 2%, though 2% decline in NPL coverage driven by International segment.

35

3.40 2.91 3.09 0.62 0.65 0.56 1.23 1.84 1.68 5. 5.25 5.40 40 5. 5.33 +2%

1 2 3 4 5 6 7 8 9

4Q 18 3Q 19 4Q 19

NPL (S (SARb ARbn)

Corporate Consumer and credit card International Others

5.25 0.23 (0.16) (0.01) (0.05) 0.01 0.02 0.05 5.33

1 1 1

4Q 18 Commerce Manu- facturing Consumer Agriculture & fishing Building & constr. Services Others 4Q 19

Movem emen ent NP NPLs by Economic S Sec ector ( (SARbn)

264% 279% 257% 258% 290% 136% 141% 142% 151% 151% 90% 90% 83% 3% 81% 1% 56% 6% 62 62% 142% 145% 145% 133% 138%

1 1 2 2 3

4Q 18 1Q 19 2Q 19 3Q 19 4Q 19

NP NPL C Cover erage e Ratios ( (%) %)

Retail Corporate International Group NPL coverage ratio

Domestic

• SAR 370mn (-9%)

NCB Investor Relations | 4Q 2019 Investor Presentation Corp rpora rate

• 8 bps

51 (3) 9 (3) 3 (1) (5) 51 +0 bps

• 5

FY 18 Impairments Recoveries & Other Impairments Recoveries & Other Other International FY 19

Movem emen ent i in Cost of R Risk k (bps)

Financing and Advances Credit Quality (2/2)

Overall cost of risk remained stable at 51bps

36

Man anag ageme ment C Comme mmentary tary

• Cost of risk remained stable due to lower

domestic NPL flow, offset by 3bps international cost of risk increase.

• In International, cost of risk increase

includes impact of Turkish bank regulator’s directives to classify certain exposures to NPL in previous quarter.

Reta tail +6 bps Guidan ance ce 60 - 80 bps

0.4% 0.1% 0.3% 0.4% 0.4% 1.5% 0.9% 1.4% 2.5% 2.2% 0.5% 5% 0.2 .2% 0. 0.3% 3% 0.5% 5% 0.5% 5%

(0) (0) (0) (0)

FY 18 1Q 19 1H 19 9M 19 FY 19

CoR Ra R Ratios (Y (YTD % D %)

Domestic International Group CoR ratio

NCB Investor Relations | 4Q 2019 Investor Presentation

Investments

Investments increased 14% and quality remains strong, ~87% of the investment portfolio is investment grade including Saudi Government securities

37

63 83 85 49 40 39 6 9 9 118 132 32 134 34 +14%

50 100 150 200

4Q 18 3Q 19 4Q 19

Inves estmen ents ( (SARbn)

Equity instruments, Mutual Funds, Hedge Funds and Others Floating rate securities Fixed rate securities

Saudi Government securities 52% Other investment grade 35% Non-investment grade 5% Equity & others 8%

Inves estmen ents b by C Cred edit G Grade ( e (SARbn)

118 134 34

4Q 18 4Q 19

Saudi Arabia 66% GCC and Middle East 13% Europe 1% Turkey 3% Other countries 17%

Inves estmen ents b by G Geo eography (SARbn)

118 134 34

4Q 18 4Q 19

118.1 13.9 (5.1) 3.0 4.2 134.1 +14%

4Q 18 Saudi Government securities Other investment grade Non- investment grade Equity & others 4Q 19

Movem emen ent i in Inves estmen ents (SARbn)

NCB Investor Relations | 4Q 2019 Investor Presentation

Due to banks and other financial institutions 12% Customers' deposits 70% Debt securities issued 0% Other liabilities 4% Total equity 14%

Funding Mi Mix (S (SARb ARbn) Man anag ageme ment C Comme mmentary tary

• 12% increase in funding mainly from growth in time deposits and

inter-bank balances.

• Customers’ deposits increased by 11%.
• T2 Sukuk of SAR 5bn was called in during 1Q 2019.

Funding

Balance sheet growth funded by growth in time deposits and utilization of inter-bank markets

38 319 340 353 46 67 62 9 2 1 12 21 21 66 68 70

45 452 49 498 50 507 +12%

100 200 300 400 500 600 700 800 900 1,000

4Q 18 3Q 19 4Q 19

Funding ( (SARbn)

Total equity Other liabilities Debt securities issued Due to banks and other financial institutions Customers' deposits

45 452 50 507

4Q 18 4Q 19

452.2 34.7 16.2 (8.4) 8.5 4.1 507.3 +12%

4Q 18 Customers' deposits Interbank Debt Other liabilities Total equity 4Q 19

Movem emen ent i in Funding (SARbn)

NCB Investor Relations | 4Q 2019 Investor Presentation

318.7 (6.6) 36.7 (1.7) 2.6 3.6 0.2 +11% 353.4

4Q 18 CASA Time Others CASA Time Others 4Q 19

Moveme ment i t in Custome mers rs' D ' Deposits ts (SARbn) Man anag ageme ment C Comme mmentary tary

• Customers’ deposits increased by 11% during 2019, mainly from 81%

increase in time deposits.

• CASA balances account for 71% of customers’ deposits compared to

80% at 4Q 2018.

Deposits

9% increase in domestic customers’ deposits, 33% increase internationally

39

248 245 241 7 9 9 38 58 74 12 15 16 14 12 13 31 319 340 40 353 53 +11%

100 200 300 400 500 600

4Q 18 3Q 19 4Q 19

Custo tome mers rs' D ' Deposits (SARbn)

CASA - Domestic CASA - International Time - Domestic Time - International Others

31 319 353 53

4Q 18 4Q 19 Domesti tic Deposits ts +SAR 28.4bn (+9%) Inte nterna nati tiona nal Deposits ts +SAR 6.3bn (+33%)

CASA 71% Time 25% Others 4%

Custo tome mers rs' ' Deposits M Mix ( x (SARbn)

NCB Investor Relations | 4Q 2019 Investor Presentation

13.5% 5% 13. 3.6% 6% 13.2% 2% 12. 2.6% 12. 2.8% 83.2% 86.8% 84.4% 82.4% 79.9%

1 1 1 1 1

4Q 18 1Q 19 2Q 19 3Q 19 4Q 19

LDR* an and B Bas asel III III leverag rage R Rati atios ( (%)

Basel III leverage ratio Financing to customers' deposit ratio

Liquidity

NCB maintained a strong liquidity profile

40

Man anag ageme ment C Comme mmentary tary

• As at 4Q 2019, the financing to customers’ deposit ratio was 79.9%

and comfortably below the regulatory guidelines.

• NSFR was 124.4% at 4Q 2019 relative to 128.0% at 4Q 2018.
• The average quarterly LCR marginally declined to 168.9% in 4Q 2019

from 176.0% in 4Q 2018.

• Basel III leverage ratio was 12.8% as at 4Q 2019 relative to 13.5% at

4Q 2018.

* Headline ratio, which does not equate to SAMA regulatory LDR ratio

97 98 92 92 99 55 53 50 53 59 176.0% 183.9% 185.5% 173.2% 168.9%

4Q 18 1Q 19 2Q 19 3Q 19 4Q 19

LCR Ra R Ratio (% (%)

HQLA (SARbn) Net cash outflows (SARbn) LCR

320 319 330 334 343 250 256 263 271 275 128.0% 124.0% 125.5% 123.2% 124.4%

4Q 18 1Q 19 2Q 19 3Q 19 4Q 19

NSFR Ra R Ratio (% (%)

Available stable funding (SARbn) Required stable funding (SARbn) NSFR

NCB Investor Relations | 4Q 2019 Investor Presentation T1 T1 Guidan ance ce 16% - 18%

Mana nage gement nt Comment ntary ry

• Capitalization remained strong and comfortably above the regulatory

minima with CET1 at 16.2% and T1 at 18.0%.

• Common equity tier 1 capital (CET1) is impacted by one-time IFRS

adjustments of SAR 1.5 billion.

• During 1Q 2019, T2 sukuk of SAR 5bn was redeemed, leading to a drop in

the total capital ratio.

• 2019 RWA growth is attributable to the growth in financing as well as right
• f use assets resulting from adoption of IFRS16.

Capital

Capital position comfortably above regulatory minima

41

60 61 63 7 7 7 8 3 3 74 72 73

• 2%

0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00

4Q 18 3Q 19 4Q 19

Cap apital alisati ation ( (SARbn)

Tier 2 capital (T2) Additional tier 1 capital (AT1) Common equity tier 1 capital (CET1)

312 346 337 35 36 36 13 16 17 360 397 390 +8%

0.00 100.00 200.00 300.00 400.00 500.00 600.00 700.00

4Q 18 3Q 19 4Q 19

Pillar ar I R I Risk Weighte hted A Assets ts (S (SARb ARbn)

Credit risk Operational risk Market risk

16.6% 16.5% 16.0% 15.4% 16.2% 18.5% 18.4% 17.8% 17.2% 18.0% 20. 0.6% 6% 19. 9.3% 3% 18. 8.7% 18. 8.0% 18. 8.7%

4Q 18 1Q 19 2Q 19 3Q 19 4Q 19

Cap apital al R Rati atios ( (%)

CET1 ratio T1 ratio TC ratio

74.3 11.4 (0.4) (6.6) (0.5) (5.0) 73.2

• 2%
• 20.0

FY 18 Net Income Tier 1 Sukuk cost Dividends T2 Sukuk Other FY 19

Moveme ment i t in Total al C Cap apital tal ( (SARbn)

SEGMENTAL REVIEW

4Q & FY 2019 Results

NCB Bank (standalone)

Strong 17% FY 2019 net income after Zakat growth resulting from operating income growth

43

Man anag ageme ment C Comme mmentary tary

• FY 2019 Net income after zakat rose 17% YoY

driven principally by 10% operating income growth.

• FY 2019 NSCI improved by 5% YoY due to an

increase in average earning assets.

• 4Q 2019 Net income after zakat rose 12% YoY

driven principally by 14% operating income growth, partly offset by higher zakat.

244 44 261 61 262 62 +8%

50 100 150 200 250 300 350 400 450

4Q 18 3Q 19 4Q 19

Financing a and A Advances es, net et (S (SARb ARbn)

299 99 31 315 32 328 +9%

100 200 300 400 500

4Q 18 3Q 19 4Q 19

Custo tome mers rs' D ' Deposits (SARbn) Summary Financial Performance

SAR (mn) 4Q 20 2019 3Q 3Q 2 201 019 4Q 20 2018 Yo YoY Y % change nge FY FY 20 2019 FY FY 20 2018 Yo YoY Y % change nge Total assets 480,079 470,486 425,652 +13% 480,079 425,652 +13% Total o

• pera

rating ng inc ncome 4,936 936 4, 4,45 456 4, 4,315 +14% 4% 18,338 338 16, 6,693 693 +1 +10% Net special commission income 3,937 3,541 3,753 +5% 14,564 13,855 +5% Fee income from banking services, net 472 407 355 +33% 1,636 1,622 +1% Operating expenses (1,181) (1,328) (1,230)

• 4%

(5,277) (5,367)

• 2%

Total impairment charge (214) (412) (351)

• 39%

(945) (1,067)

• 11%

Other non-operating income (expenses), net (7) 71 (0) +2497% 29 (54)

• 153%

Net et income e for t the e per eriod b bef efore Z e Zakat 3, 3,534 34 2,78 ,787 2,73 ,734 +2 +29% 12, 2,145 10, 0,204 04 +1 +19% Zakat (365) (287) 87

• 519%

(1,329) (958) +39% Net et income e for t the e per eriod a after er Z Zakat 3,1 ,170 70 2,50 500 2, 2,821 21 +12% 2% 10,816 9,245 45 +1 +17% % of total assets 94.6% 94.5% 94.1% +1% 94.6% 94.1% +1% Cost to income (%) 23.9% 29.8% 28.5%

• 16%

28.8% 32.2%

• 11%

NCL (%)

• 0.5%

0.6%

• 0.6%
• 16%

0.4% 0.4%

• 9%

ROA (%) 2.9% 2.2% 2.7% +8% 2.4% 2.2% +8%

Retail Banking

Higher FY 2019 net income before Zakat from higher operating income

44

Mana nage gement nt Comment ntary ry

• FY 2019 NSCI improved by 16% YoY due to an

increase in retail financing and margin improvement

• FY 2019 Net income before zakat increased by 32%

YoY driven principally by 16% higher operating income.

• FY 2019 Operating expenses improved 2% YoY and

the cost to income ratio came down to at 38.9% from 46.2% a year earlier supported by digitization, and productivity enhancements.

• 4Q 2019 Net income before zakat increased by 47%

YoY driven principally by 18% higher operating income and lower impairments.

Summary Financial Performance

SAR (mn) 4Q 20 2019 3Q 3Q 2 201 019 4Q 20 2018 Yo YoY Y % change nge FY FY 20 2019 FY FY 20 2018 Yo YoY Y % change nge Total assets 153,735 143,798 134,021 +15% 153,735 134,021 +15% Total o

• pera

rating ng inc ncome 2,6 ,675 75 2,640 40 2, 2,26 260 +1 +18% 8% 10, 0,05 052 8,6 ,672 72 +1 +16% Net special commission income 2,297 2,221 2,234 +3% 8,711 7,500 +16% Fee income from banking services, net 273 281 30 +801% 1,036 1,073

• 4%

Operating expenses (879) (980) (919)

• 4%

(3,909) (4,005)

• 2%

Impairment charge (72) (114) (175)

• 59%

(446) (274) +63% Other income (expenses) (3) 84 (0) +1892% 69 (18)

• 473%

Net et income e for t the e per eriod b bef efore Z e Zakat 1,72 ,720 1,631 631 1,166 +47 47% 5,76 ,765 4,3 ,375 75 +3 +32% % of total assets 30.3% 28.9% 29.6% +2% 30.3% 29.6% +2% Cost to income (%) 32.9% 37.1% 40.7%

• 19%

38.9% 46.2%

• 16%

CoR 1.5% 0.4% 0.7% +125% 0.4% 0.3% +42% ROA (% before zakat) 4.6% 4.6% 3.5% +33% 4.0% 3.5% +15% 243 43 234 34 229 229

• 6%

50 100 150 200 250 300 350 400 450

4Q 18 3Q 19 4Q 19

Custo tome mers rs' D ' Deposits (SARbn)

104 04 112 123 23 +18%

50 100 150 200 250

4Q 18 3Q 19 4Q 19

Financing & A Advances es, n net et (SARbn)

Corporate Banking

FY 2019 growth in net income before Zakat from higher operating income and lower impairments

45

Man anag ageme ment C Comme mmentary tary

• FY 2019 Operating income grew 8% YoY; NSCI

grew by 5% on improved margining and fee income rose 17% on higher lending fees.

• FY 2019 Net income before zakat increased 21%

YoY due to 8% higher operating income and 23% lower impairments.

• FY 2019 impairments declined by 23% YoY

from lower NPL inflow and higher recoveries.

• 4Q 2019 Net income before zakat increased 7%

YoY due to 7% operating income growth.

131 31 137 37 129 29

• 1%

50 100 150 200 250

4Q 18 3Q 19 4Q 19

Financing & A Advances es, n net et (SARbn) Summary Financial Performance

SAR (mn) 4Q 20 2019 3Q 3Q 2 201 019 4Q 20 2018 Yo YoY Y % change nge FY FY 20 2019 FY FY 20 2018 Yo YoY Y % change nge Total assets 133,425 140,700 134,128

• 1%

133,425 134,128

• 1%

Total o

• pera

rating ng inc ncome 1,191 1,055 55 1,111 +7 +7% 4, 4,385 4,061 061 +8% +8% Net special commission income 1,019 942 1,295

• 21%

3,817 3,623 +5% Fee income from banking services, net 122 112 (184)

• 166%

514 440 +17% Operating expenses (202) (232) (219)

• 8%

(909) (922)

• 1%

Impairment charge (208) (304) (160) +30% (555) (724)

• 23%

Other income (expenses) (1) (5) (0) +107% (17) (17)

• 1%

Net et income e for t the e per eriod b bef efore Z e Zakat 781 81 51 513 73 731 +7 +7% 2,905 905 2,399 399 +21 21% % of total assets 26.3% 28.3% 29.7%

• 11%

26.3% 29.7%

• 11%

Cost to income (%) 16.9% 22.0% 19.7%

• 14%

20.7% 22.7%

• 9%

CoR 1.6% 0.9% 0.5% +245% 0.4% 0.6%

• 26%

ROA (% before zakat) 2.3% 1.5% 2.2% +5% 2.2% 1.8% +18% 48 48 70 70 87 87 +80%

20 40 60 80 100 120 140 160

4Q 18 3Q 19 4Q 19

Custo tome mers rs' D ' Deposits (SARbn)

Treasury

FY 2019 growth in net income before Zakat from lower impairment charge

46

Man anag ageme ment C Comme mmentary tary

• FY 2019 Net income before Zakat improved by

2% YoY driven by lower impairment charges, partly offset by 4% higher operating expenses and marginally lower operating income.

• FY 2019 Operating income declined by 1% as

higher investment income and client revenues were offset by lower NSCI and fee income.

• 4Q 2019 Net income before zakat increased by

7% YoY driven by lower impairment charges. Summary Financial Performance

SAR (mn) 4Q 20 2019 3Q 3Q 2 201 019 4Q 20 2018 Yo YoY Y % change nge FY FY 20 2019 FY FY 20 2018 Yo YoY Y % change nge Total assets 185,235 178,300 149,511 +24% 185,235 149,511 +24% Total o

• pera

rating ng inc ncome 89 891 82 826 908 908

• 2%

2% 3, 3,92 922 3, 3,94 947

• 1%

Net special commission income 456 432 681

• 33%

1,981 2,732

• 27%

Fee income from banking services, net 15 16 15

• 2%

86 109

• 21%

Other operating income 420 378 212 +99% 1,855 1,105 +68% Operating expenses (100) (117) (92) +9% (458) (440) +4% Impairment charge 80 7 (16)

• 603%

56 (70)

• 181%

Other income (expenses) (17) (8)

• 6485%

(23) (19) +22% Net et income e for t the e per eriod b bef efore Z e Zakat 855 855 70 709 80 801 +7 +7% 3, 3,497 97 3,41 418 +2 +2% % of total assets 36.5% 35.8% 33.1% +10% 36.5% 33.1% +10% Cost to income (%) 11.2% 14.1% 10.1% +11% 11.7% 11.2% +5% ROA (% before zakat) 1.9% 1.7% 2.1%

• 10%

2.1% 2.2%

• 5%

118 132 32 134 34 +14%

50 100 150 200

4Q 18 3Q 19 4Q 19

Inves estmen ents, n net et ( (SARbn)

2,732 1,981 1,214 1,941 3, 3,94 947 3, 3,92 922

• 1%

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

FY 18 FY 19

Total tal O Operati rating In Income me (SARmn mn)

Net special commission income Fee and other income

Capital Markets

Higher FY 2019 net income growth, driven by higher operating income

47

Man anag ageme ment C Comme mmentary tary

• FY 2019 Net income before Zakat increased by

22% YoY due to increased operating income (+9%) and lower operating expenses (-5%).

• 4Q 2019 Net income before Zakat increased by

68% YoY due to higher operating income (+39%).

144 44 143 43 156 56 +8%

50 100 150 200 250

4Q 18 3Q 19 4Q 19

Asset ets Under er M Managem emen ent ( (SARbn) Summary Financial Performance

SAR (mn) 4Q 20 2019 3Q 3Q 2 201 019 4Q 20 2018 Yo YoY Y % change nge FY FY 20 2019 FY FY 20 2018 Yo YoY Y % change nge Client assets under management 156,027 143,400 144,096 +8% 156,027 144,096 +8% Brokerages Volume 54,244 36,716 57,580

• 6%

183,375 182,949 +0% Total o

• pera

rating ng inc ncome 225 225 164 64 162 62 +39% 39% 787 87 72 720 +9 +9% Net special commission income 5 5 3 +55% 18 10 +82% Fee income from banking services, net 210 144 158 +33% 715 695 +3% AUM Related Fee Income 127 115 115 +11% 500 512

• 2%

Brokerage Related Fee Income 36 23 37

• 3%

124 135

• 9%

Other operating income (expenses) 10 15 +3120% 53 15 +249% Operating expenses (92) (82) (81) +13% (328) (344)

• 5%

Net et i income e bef efore e Zakat 134 34 81 81 79 79 +6 +68% 8% 45 459 376 76 +22% 22% Cost to income (%) 40.8% 50.3% 50.4%

• 19%

41.6% 47.7%

• 13%

183 83 183 83 +0%

50 100 150 200 250 300 350 400 450

FY 18 FY 19

Br Broker kerages es Volume ( e (SARbn)

International (in TRY)

FY 2019 net income decreased 15% YoY on higher impairment charges and operating expenses

48

Man anag ageme ment C Comme mmentary tary

• Operating income for FY 2019 increased by 19% YoY

boosted by core banking activity, improving financing yields and reduced funding costs.

• BRSA (Turkish Banking Authority) required Banking sector

to classify certain exposures to NPL in 3Q 2019, which led to elevated levels of impairments and decrease in FY 2019 net income.

• FY 2019 operating expenses rose 20% YoY from

inflationary pressures.

• Net income after tax declined 15% due to higher risk cost

and operating expenses.

• 4Q 2019 Net income after tax increased by 69% due to

decrease in funding cost, normalization in impairment charges and collections from NPLs.

Summary Financial Performance

TRY (mn) 4Q 20 2019 3Q 3Q 2 201 019 4Q 20 2018 Yo YoY Y % change nge FY FY 20 2019 FY FY 20 2018 Yo YoY Y % change nge Total assets 52,051 50,203 46,486 +12% 52,051 46,486 +12% Total o

• pera

rating ng inc ncome 659 59 59 590 46 464 +42 42% 2, 2,24 246 1,89 894 +1 +19% Net special commission income 501 498 408 +23% 1,854 1,573 +18% Fee income from banking services, net 70 55 67 +4% 267 266 +0% Operating expenses (278) (272) (238) +17% (1,101) (920) +20% Impairment charge (116) (378) (75) +54% (720) (454) +59% Other income (expenses) 101 38 3 +3267% 176 105 +68% Net et income e for t the e per eriod b bef efore t e tax 279 79 (59 59) 165 65 +69% 69% 47 477 57 570

• 16%

6% Tax (61) 14 (36) +69% (99) (125)

• 21%

Net et i income e after er tax 21 217 (45 45) 129 29 +69% 69% 377 77 445 445

• 15%

5% Cost to income (%) 48.7% 49.2% 50.1%

• 3%

51.9% 50.0% +4% CAR (%) 17.5% 17.7% 16.8% +4% 17.5% 16.8% +4% Tier 1 CAR % 12.9% 13.4% 12.0% +8% 12.9% 12.0% +8% LTD ratio (%) 76.2% 76.0% 110.0%

• 31%

76.2% 110.0%

• 31%

30. 30.0 (0.4) 4) 29.6 .6 1.5 .5 31.0 .0

• 1%

+3%

2 4 6 8 10 12 14 16

4Q 18 Reported Growth at constant FX 4Q 19 Underlying TFKB FX translation impact 4Q 19 Reported

Financing & A Advances es, n net et (TRYbn)

27. 7.2 10.8 .8 38. 8.0 2.7 .7 40 40.7 +40% +49%

10 20 30 40 50 60

4Q 18 Reported Growth at constant FX 4Q 19 Underlying TFKB FX translation impact 4Q 19 Reported

Custo tome mers rs' D ' Deposits (TRYbn)

39% 45% % of balance in foreign currency 59% 62% % of balance in foreign currency

ADDITIONAL INFORMATION

4Q & FY 2019 Results

NCB Investor Relations | 4Q 2019 Investor Presentation

Disclaimer

50

The National Commercial Bank (NCB) prepared this presentation on a proprietary basis as general background information about the activities of NCB. The information contained herein is given in summary form and for discussion purposes only. Some of the information that is relied upon by NCB is

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the accuracy or completeness of such information, and disclaims all liability or responsibility for any loss or damage caused by any act taken as a result

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NCB Investor Relations | 4Q 2019 Investor Presentation

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• Mr. Abdulbadie Alyafi

Head Of Investor Relations +966 12 646 3988 investorrelations@alahli.com

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