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

The National Commercial Bank Investor Presentation 4Q & FY 2019 Results

Investor Presentation Content Page 42 Segmental Review Page 3 NCB at a glance Page 4 NCB Investment Case Page 49 Additional Information Page 18 Strategy Overview Page 20 Financial Results Highlights Page 28 Financial Results Details NCB Investor Relations | 4Q 2019 Investor Presentation 2

NCB at a glance NCB is the leading bank in Saudi Arabia NCB Group up Pr Prese sence ce NCB's s busi usiness mo ss model delivers s diversi sified operating i inco come me NCB G Gro roup 4.4bn Inte nterna nati tiona nal: Subsidiary i y in n Turkey 21% Headqu dquartered i d in Saudi di A Arabi bia Türkiye Finans Katılım Bankası (TFKB) 310 branches, 635 ATMs 434 branches, 3,625 ATMs CORPORATE 3,461 employees 138 Remittance centers 0.8bn 1.5bn 10.1bn SAR 20.6bn 7% 7,499 Employees 49% 4% 89% Offices in Seoul & RETAIL 3.9bn Shanghai 19% NCB Ca CB Capital Capital Markets International Wholesale branches Saudi Arabia NC NCB in Bahrain & Singapore TREASURY 22 Branches 244 Employees Employees* Assets Deposits Market Cap Operating Income Net Income C/I Ratio CoR ROE SAR 20.6 bn SAR 11.4 bn 30.7 % 0.51 % 18.4 % 12,883 SAR 507 bn SAR 353 bn SAR 145 bn Customers & D & Dig igit itiz izatio ion Stro trong & & Stable Cre Credit t Rati tings NC NCB Long ng term rm Short T Term Outlook ook Clients Digital Financial Transactions Robotics 8 m >97 % +55 bots S&P BBB+ A-2 Stable Fitch A- F1 Stable Moody’s* A1 P-1 Stable Capital Intelligence A+ A1 Stable Digi gital Sales P Pene netra ration n Digi gital A Account nt Openi ning ng Gove overnment of of Sa Saudi A Arabia 71% 51% S&P A- Stable 28% Fitch A Stable 19% Moody’s A1 Stable Capital Intelligence A+ Stable 2018 2019 2018 2019 *Includes Alahli Esnad (1,679 employees) - fully owned subsidiary engaged in outsourcing and manpower services in KSA NCB Investor Relations | 4Q 2019 Investor Presentation 3

NCB INVESTMENT CASE  Supportive macro environment  Attractive banking market  Leading, diversified franchise  Strong execution track record

Supportive macro environment Non-Oil GDP pickup expected, supported by progress of ongoing Vision Realization Programs (1/4) Re Real G GDP DP Twin Ba Balances es ( (%) %) 4.1% 3.7% 20.0% 0 5.0% 2.4% 9.7% 9.2% 8.6% 1.7% 0 15.0% 3.0% 1.3% 0 2.9% 10.0% 1.4% 0.0% -0.7% 2.1% 1.0% 0.8% 0.4% 5.0% 0 2.3% 1.6% 1.3% -1.0% 0 0.9% 0.0% 0.6% -5.0% 0 -3.0% -1.4% 0.0% -0.1% -3.5% -3.7% -10.0% -4.7% (0) -5.9% -2.8% -5.0% -8.7% -9.2% -15.0% (0) -0.1% -12.9% -7.0% -20.0% (0) -15.8% 0.0% -25.0% (0) -9.0% 2014 2015 2016 2017 2018 2019P 2014 2015 2016 2017 2018 2019P Oil Sector Non-oil Private Budget Balance / GDP Import Duties Real GDP Current Account Balance / GDP Monetary ary Supply g gro rowth th Inflat In ation Rat ate ( (%) 2.5% 0 0 2.2% 11.9% 2.0% 2.0% 0 0 1.3% 0 7.1% 0 0 0 2.8% 2.5% 0 0.8% 0.2% 0 0 (0) (M3) Monetary Supply growth (0) -0.9% -1.0% (0) (0) 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019P 2020F Source: Thomson Reuters, Ministry of Finance, SAMA and Tadawul NCB Investor Relations | 4Q 2019 Investor Presentation 5

Supportive macro environment Fiscal policy to underpin economic growth (2/4) Oil il P Productio ion Gover ernmen ent R Rev even enue e (SARbn) Gover ernmen ent E Expen enditure ( e (SARbn) 1,044 25 1,200 1,110 1,079 1,048 1,020 140.0 917 905 1,200 978 131 833 930 1,000 20 97.2 120.0 830 1,000 692 315 294 616 800 100.0 320 740 15 519 800 10.5 10.3 10.2 10.0 9.8 9.7 874 714 9.8 80.0 256 877 169 847 600 722 913 600 696 186 10 60.0 70.1 602 400 64.0 400 60.0 611 446 513 40.0 52.4 50.2 436 334 370 5 200 264 40.9 200 208 205 172 173 20.0 134 0 0 0 0.0 2014 2015 2016 2017 2018 2019P 2020F 2014 2015 2016 2017 2018 2019P 2020F 2014 2015 2016 2017 2018 2019 2020F Oil Production Capex Oil Revenues Current Expenditure (Opex) Average Oil Price (USD) Non-oil Revenues Fiscal al B Bal alan ance Forei eign R Res eser erves es ( (USDbn) Gover ernmen ent D Deb ebt (SARbn) 24.0% -3.5% 768 -15.8% -12.9% -9.2% -5.9% -4.7% -6.4% 17.2% 19.0% 400 900 22.0% 1,000 670 0.0% 300 43 800 754 13.1% 200 678 568 17.0% 700 60 517 800 -20.0% 481 100 560 471 600 39 35 12.0% 0 5.8% 33 443 32 600 296 500 -40.0% (100) 7.0% 317 255 1.6% 725 400 610 (200) 184 400 -100 529 -60.0% -131 70 300 2.0% 482 -187 87 448 439 142 (300) -174 382 -238 44 200 305 (400) 200 247 260 -80.0% -311 -3.0% 142 100 (500) 44 -389 0 -8.0% 0 (600) -100.0% 2014 2015 2016 2017 2018 2019P 2020F 2014 2015 2016 2017 2018 2019P 2014 2015 2016 2017 2018 2019P 2020F Domestic Fiscal Balance SAMA International Fiscal Balance as % of GDP Banks Debt to GDP Ratio (%) Source: Thomson Reuters, Ministry of Finance, SAMA and Tadawul NCB Investor Relations | 4Q 2019 Investor Presentation 6

Vision 2030 continues to drive economic growth and Supportive macro environment progress. NCB is fully committed to the success of (3/4) The National Agenda Pilla llars A T Thrivi ving Econ onom omy A V Vibra brant nt Society y An A Ambitiou ous Nation on  National Transformation Program  Quality of Life Program  National Companies Promotion Program  Fiscal Balance Program  Housing Program  Saudi Character Enrichment Program  PIF Program  National Industrial Development and  Enriching the Hajj and Umrah Experience Vis isio ion R Realiz izatio ion  Financial Sector Development Program Logistics Program Program Pro rogra rams  Privatization Program  Strategic Partnerships Program Vis isio ion 2030 K 030 Key Mil ilestones Fiscal Private Sector Home SME GDP 65 % 0% Debt 70 % <30 % 35 % Deficit Contribution Ownership Contribution to GDP SME Contribution to GDP Private sector contribution to Balancing the budget and Public debt to GDP to remain Raise Saudi home ownership targeted to reach 35% by GDP to reach 65% by 2030 eliminating the fiscal deficit by below 30% to 70% by 2030 2030 2023 Female Capital Market Foreign Direct Non-Cash Unemployment 45 % 45 bn 30 % 28 % 7 % Workforce Assets Investment Transactions Rate Participation Increase share of capital FDI to reach 1.46% of GDP by Increase share (in absolute Women economic participation Lower the rate of markets assets to 45% by 2020 (~SAR45 billion) number) of non-cash rate to reach 30% by 2030 unemployment to 7% 2020 transactions to 28% NCB Investor Relations | 4Q 2019 Investor Presentation 7

Supportive Macro Environment NCB Is a key contributor to economic transformation and the FSDP (4/4) NCB Con ontribution ons to t o the Sa Saudi V Vision on 2030 Financial Se Sector or D Deve velop opment P Prog ogram Ena nabl bling ng fina nanc ncial ins nstitutions ns to Developing a ng an a n adv dvanc nced d capital Promoting ng and nd ena nabl bling ng fina nanc ncial support private s sector g growth marke ma ket planni nning ng Corporate Home KSA 129bn 69bn 37bn lending finance bonds NCB leverages competitiveness Leading provider of financing to the Primary Dealer in local government Provided home financing for 58,000 and scale to unlock opportunities full spectrum of KSA businesses; securities with a SAR 69bn KSA Saudi families with a portfolio of in the national agenda and deliver 15.1% Corporate market share (3Q Government Bond investment SAR 37bn value to stakeholders 2019) and SAR 129bn portfolio portfolio Customers SME 6mn 23bn Capital Markets Advisor Corporate Savings Advisor in KSA credit Expanding participation in the Ara ramco co I IPO PO joint global Largest Asset Manager and financial services sector with 6 A leader in the SME segment, with coordinator, book runner and Corporate Savings Advisor, with million KSA based customers SAR 23bn of credit extended to underwriter more than 50,000 individual through a comprehensive physical SMEs across KSA (2018) USD 7.5bn KSA Sovereign bond participants and full suite of Takaful and digital distribution network USD 12bn Saudi Aramco bond protection and savings products NCB Investor Relations | 4Q 2019 Investor Presentation 8