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National Commercial Bank Investor Presentation 3Q 2017 Results NCB - - PowerPoint PPT Presentation

National Commercial Bank Investor Presentation 3Q 2017 Results NCB Investor Relations 3Q 2017 Investor Presentation 1 Disclaimer The National Commercial Bank (NCB) prepared this presentation on a proprietary basis as general background


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SLIDE 1

NCB Investor Relations 3Q 2017 Investor Presentation 1

National Commercial Bank Investor Presentation 3Q 2017 Results

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SLIDE 2

NCB Investor Relations 3Q 2017 Investor Presentation 2

Disclaimer

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 obtained from sources believed to be reliable, but NCB (nor any of its directors, officers, employees, agents, affiliates or subsidiaries) does not guarantee 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 of the information. This presentation including the information covered therein is not intended either to be relied upon or construed as an advertisement for, or an offer, solicitation or invitation to sell or issue, or to subscribe, underwrite or

  • therwise acquire any securities in any jurisdiction. It should and must not be treated as giving tax, legal, investment or other specialist advice or a recommendation to

investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Neither shall any part of this information nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision or commitment relating thereto, nor does it constitute a recommendation regarding the subject of this presentation. All statements included in this presentation other than statements of historical facts, including, without limitation, those regarding financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives) are forward-looking statements and may thus include words like "anticipate", "believe", "intend", "estimate", "expect", "will", "may", "project", "plan" and such other words of similar meaning. Such forward-looking statements are based on numerous assumptions regarding present and future business strategies and the relevant future business environment. Any forward-looking statements speak only as of the date of this presentation and NCB expressly disclaims to the fullest extent permitted by law any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in the foregoing is intended to or shall exclude any liability for, or remedy in respect of, fraudulent misrepresentation. Due to rounding, numbers and percentages presented throughout this presentation may not add up precisely to the totals provided. NCB is not under any obligation to update, complete, amend, revise or keep current the information contained herein, and any opinions expressed herein are subject to change materially without notice. Accordingly, no representation or warranty, express or implied, is or will be made by NCB, their respective advisors or any such persons’ directors, officers or employees, or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation, and any reliance you place on them will be at your sole risk. Investors must rely solely on their own examinations of the Offering and relevant documentation in making a determination as to whether to invest in the securities described. An investor should seek independent professional advice when deciding if an investment is appropriate. Securities that may be discussed herein may not be suitable for all investors. Investors are required to make their own independent investigation and appraisal of the business and financial condition of NCB and its subsidiaries, the nature of the securities and the merits or suitability of the securities or any transaction to any investor’s particular situation and objectives, including the possible risks and benefits of purchasing any securities. Any such determination should involve an assessment of the legal, tax, accounting, regulatory, financial, credit or other related aspects of the offering or the securities. Without prejudice to the foregoing, NCB, their advisors and any such persons’ directors, officers or employees expressly disclaim any liability whatsoever, in negligence or otherwise, for any loss howsoever arising, directly or indirectly, from use of, or reliance on, this presentation or its contents or otherwise arising in connection therewith.

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NCB Investor Relations 3Q 2017 Investor Presentation 3

Investor Presentation

Contents

04 12 18 28 48 54 NCB – The leading KSA bank Grow with KSA. Grow with NCB. Strategy Overview Financial Results Highlights Segmental Overview Additional Information 34 Financial Results Details

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SLIDE 4

NCB Investor Relations 3Q 2017 Investor Presentation 4

National Commercial Bank The Leading KSA Bank 3Q 2017 Results

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SLIDE 5

NCB Investor Relations 3Q 2017 Investor Presentation 5

NCB is the leading banking group in Saudi Arabia

Established in 1953; IPO in 2014

NC NCB Snaps pshot

Jeddah HQ

>8 >8m

m Clients

12 12,310 10

Employees

441 441bn

bn Assets

31 316bn

bn Deposits

>1 >100bn

bn Market Cap

Wh Wholesale branch i in B Bahrain Offices: S Singapore, S Seoul, S Shanghai Subsidiary i in T Turkey: Tü Türkiye Finans K Katılım Ba Bankası Subsidiary i in KS KSA: NCB C Capital

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SLIDE 6

NCB Investor Relations 3Q 2017 Investor Presentation 6

NCB is the leading banking group in Saudi Arabia

NCB has a strong market and financial position (FY2016)

Fin Financia ial Posit itio ion

KS KSA GC GCC

Assets #1 #4 Financing #1 #4 Deposits #1 #3 tied Investments #1 #1 Total Operating Income #1 #3 Net Income #1 #3

Ma Market Position

by by KS KSA

Overall banking Assets #1 Corporate banking Financing #1 Retail banking Financing #2 Treasury Investments #1 Asset Management AUMs #1 Brokerage Value Traded #3 441 340 231 218 203 100 200 300 400 500 NCB Rajhi Samba Riyad BSF

Assets ( (SRb Rbn)

254 225 143 129 125 50 100 150 200 250 300 NCB Rajhi Riyad BSF Samba

Finan ancing ( (SRb Rbn)

316 273 172 158 157 50 100 150 200 250 300 350 NCB Rajhi Samba BSF Riyad

Depos

  • sits (

(SRb Rbn)

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SLIDE 7

NCB Investor Relations 3Q 2017 Investor Presentation 7

NCB has a well-diversified business model

Total operating income contribution FY2016

Ca Capital Markets

Largest Asset Manager in KSA Largest Shariah-compliant Asset Manager worldwide Top 3 Broker 17 locations 286 Employees

SR 15.8bn 85%

NC NCB

374 branches, 3,477 ATMs 148 Remittance centers 8,035 Employees

7.5bn

40%

4.6bn

25%

3.7bn

20%

RETAIL CORPORATE TREASURY

2.2bn

12%

581mn

3% In International

Türkiye Finans Katılım Bankası (TFKB) 286 branches, 572 ATMs 3,989 employees

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NCB Investor Relations 3Q 2017 Investor Presentation 8

NCB has a strong financial position

Key KPIs

14.7% 15.1% 16.9% 17.5% 17.1% 17.2% 17.2% 19.2% 16.5% 16.2% 13.5% 15.3%

10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0%

2012 2013 2014 2015 2016

Cap apital al Rat Ratios

  • s (

(%)

T1 ratio TC ratio CET1 ratio

39 39 43 43 47 47 56 56 60 60 +11%

20 40 60 80 100

2012 2013 2014 2015 2016

Tot Total al E Equity ( (SRb Rbn)

345 345 377 377 435 435 449 449 441 441 +6%

100 200 300 400 500 600 700

2012 2013 2014 2015 2016

Tot Total al A Assets ( (SRb Rbn)

CAGR CAGR

LCR is based on 4Q average numbers LCR was not reported before 2015 Capital ratios are based on Pillar I RWA

152.3% 172.5% 59.8% 62.4% 66.3% 78.1% 80.3%

1 1 1 1 1 2 2 2

2012 2013 2014 2015 2016

Liquidity Rat Ratios

  • s (

(%)

Liquidity coverage ratio (LCR) Financing to customer deposit ratio

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SLIDE 9

NCB Investor Relations 3Q 2017 Investor Presentation 9

NCB has a strong performance track record

Key KPIs

9.0 10.1 11.4 12.6 13.6 4.5 4.8 4.8 4.9 5.1 13.5 13.5 14.9 14.9 16.2 16.2 17.5 17.5 18.6 18.6 +8%

5 10 15 20 25 30

2012 2013 2014 2015 2016

Tot Total al O Operat ating I Incom

  • me (

(SRb Rbn)

Net special commission income Fee and other income

2.92% 2.95% 2.87% 3.00% 3.31%

2012 2013 2014 2015 2016

Net S Special al C Com

  • mmission
  • n M

Mar argin ( (%)

38.7% 39.0% 39.0% 37.4% 37.7%

1 1

2012 2013 2014 2015 2016

Cos

  • st t

to I

  • Incom
  • me Rat

Ratio (

  • (%)

CAGR CAGR

6.5 6.5 7.9 7.9 8.7 8.7 9.1 9.1 9.3 9.3 +10%

2 4 6 8 10 12 14 16 18

2012 2013 2014 2015 2016

Net I Incom

  • me at

attributab able t to e

  • equity h

hol

  • lders (

(SRb Rbn)

18.0% 20.0% 20.1% 19.2% 17.8% 2.0% 2.2% 2.2% 2.1% 2.1%

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

2012 2013 2014 2015 2016

Re Returns ( (%)

ROE common shares (%) ROA (%)

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SLIDE 10

NCB Investor Relations 3Q 2017 Investor Presentation 10

NCB has outperformed the Saudi banking sector

Key KPIs compared to Saudi Arabian banking peers

SR ( (bn bn)

Fi Financing and ad advan ances es, net et To Total ope perating in income Ne Net income at attri ributab able e to eq equity holders ers

Source: Company financials

CAGR

163 163 254 254

+12%

100 200 300 400 500

2012 2016

172 172 225 225

+7%

100 200 300 400 500

2012 2016

117 117 143 143

+5%

100 200 300 400 500

2012 2016

103 103 129 129

+6%

100 200 300 400 500

2012 2016

103 103 125 125

+5%

100 200 300 400 500

2012 2016

13.5 13.5 18.6 18.6

+8%

5 10 15 20 25 30 35 40

2012 2016

14.0 14.0 15.3 15.3

+2%

5 10 15 20 25 30 35 40

2012 2016

6.8 6.8 7.7 7.7

+3%

5 10 15 20 25 30 35 40

2012 2016

5.0 5.0 6.4 6.4

+6%

5 10 15 20 25 30 35 40

2012 2016

6.7 6.7 7.8 7.8

+4%

5 10 15 20 25 30 35 40

2012 2016

7.9 7.9 8.1 8.1

+1%

2 4 6 8 10 12 14 16 18 20

2012 2016

3.5 3.5 3.3 3.3

  • 1%

2 4 6 8 10 12 14 16 18 20

2012 2016

3.0 3.0 3.5 3.5

+4%

2 4 6 8 10 12 14 16 18 20

2012 2016

4.3 4.3 5.0 5.0

+4%

2 4 6 8 10 12 14 16 18 20

2012 2016

6.5 6.5 9.3 9.3

+10%

2 4 6 8 10 12 14 16 18 20

2012 2016

842 842 1,141 1,141

+8%

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

2012 2016

51 51 64 64

+6%

20 40 60 80 100 120 140

2012 2016

29 29 32 32

+3%

10 20 30 40 50 60 70

2012 2016

In Industry P Peers (ex (ex NCB)

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NCB Investor Relations 3Q 2017 Investor Presentation 11

NCB Group listed on Tadawul in November 2014

Ranked third in Tadawul, S&P Pan Arab and MSCI Indices with significant weightings

MS MSCI GCC Index

Fl Float Adj. M Mcap ( (USD) We Weighting (%) (%)

Al Rajhi Bank 21.42 8.80 SABIC 20.56 8.44 Na National Co Commercial Bank 10 10.97 4. 4.50 Etisalat 8.19 3.36 Emaar Properties 8.11 3.33 Qatar National Bank 7.74 3.18 Saudi Telecom 7.55 3.10 National Bank of Kuwait 7.31 3.00 Samba Financial Group 7.04 2.89 Almarai 6.85 2.81 Ra Rati tings

LT LT ST ST Ou Outlook

Na National Commer ercial Bank Moody’s* A1 P-1 Stable S&P BBB+ A-2 Stable Fitch A- F1 Stable Capital Intelligence A+ A1 Stable Go Government of Saud udi Arabia Moody’s A1 Stable S&P A- Stable Fitch A+ Stable Capital Intelligence A+ Stable

*Moody’s rating is unsolicited [Source: MSCI, 6 July 2017] Source: Bloomberg Source: NCB, Bloomberg

10 20 30 40 50 60 70 80

Nov-14 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17

Shar are P Price P Perfor

  • rman

ance s since I IPO ( (SR) R) Sh Share re pa parameters

30 S 0 Sept 2 201 017

Closing Price 51.42 52 week range (SR) 32-58 Free Float 36% Shares issued (m) 2,000 Tangible Book Value (SRm) 54,109 Tangible BVPS 27.05 P/TBV Ratio 1.9 x P/E Ratio 10.97x Div Yield 3.11% 3m Avg Daily Volume (Shares) 600,220

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SLIDE 12

NCB Investor Relations 3Q 2017 Investor Presentation

National Commercial Bank Grow with KSA. Grow with NCB. 3Q 2017 Results

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NCB Investor Relations 3Q 2017 Investor Presentation 13

Saudi banking sector

The Saudi banking sector has been maneuvering challenges

Source: Thomson Reuters, SAMA, Banks’ Annual Reports, and NCB Economics Estimates

0.52% 0.49% 0.47% 0.48% 1.01% 0.88%

2012 2013 2014 2015 2016 1H 2017

Cos

  • st of
  • f F

Funds ( (%)

Cost of Funds

960 960 1,076 1,076 1,205 1,205 1,323 1,323 1,351 1,351 1,365 1,365 16.4% 12.1% 11.9% 9.8% 2.2%

  • 1.7%
  • 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

2012 2013 2014 2015 2016 1H 2017

Lending M Mar arket ( (SRb Rbn)

Financing Credit Growth Rate (YoY%)

0.9% 0.9% 1.8% 1.8% 0.5% 0.5% 1.3% 1.3% 13.6% 13.6% 2.4% 2.4%

  • 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% (0)

2012 2013 2014 2015 2016 2017

Liquidity ( (%)

3M SAR SAIBOR 3M USD LIBOR M3 YoY Growth

Aug 2017

23 23 35 35 38 38 41 41 44 44 41 41 11.0% 7.2% 10.2% 5.4%

  • 5.4%
  • 1.5%
  • 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

2012 2013 2014 2015 2016 1H 2017

Prof

  • fits (

(SRb Rbn)

Profits (1H) Profits (FY) Annual Growth (%)

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NCB Investor Relations 3Q 2017 Investor Presentation 14

Economic headwinds

The oil market decline impacted the Kingdom financially

Source: Thomson Reuters, Ministry of Finance, SAMA, Tadawul, and NCB Economics Forecasts

20 40 60 80 100 120 140 2 4 6 8 10 12 2009 2010 2011 2012 2013 2014 2015 2016 2017 USD/bbl MMBD

Oil M Mar arket

Saudi Oil Production, LHS Arabian Light Spot Price, RHS

13.6% 13.6% 6.4% 6.4%

  • 2.3%

2.3%

  • 14.8%

14.8%

  • 12.8%

12.8%

  • 5.8%

5.8% 22.4% 22.4% 18.1% 18.1% 9.7% 9.7%

  • 8.7%

8.7%

  • 4.3%

4.3% 2.3% 2.3%

  • 25.0%
  • 15.0%
  • 5.0%
5.0% 15.0% 25.0%

2012 2013 2014 2015 2016P 1H 2017P

Tw Twin B Bal alan ances ( (%)

Budget Balance / GDP Current Account Balance / GDP

648 718 725 610 529 501 36 36 43 60 39 43 684 684 754 754 768 768 670 670 568 568 544 544

100 200 300 400 500 600 700 800 900

2012 2013 2014 2015 2016 1H 2017

For

  • reign Re

Reserves ( (USDbn)

SAMA Banks

4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17

Stoc

  • ck M

Mar arket

Tadawul Index

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SLIDE 15

NCB Investor Relations 3Q 2017 Investor Presentation 15

Vision 2030

The Kingdom of Saudi Arabia has responded with a bold vision to reduce oil dependency…

Ec Economic ref eform

Move from a government driven economy to one that is market based § Increase the private sector’s contribution from 40% to 65% of GDP § Raise the share of non-oil exports in non-oil GDP from 16% to 50% § Increase FDI from 3.8% to the international level of 5.7% of GDP § Focus on strategic sectors: Mining and Minerals, Petrochemicals, Manufacturing, Retail and Trade, Tourism, Finance and Healthcare

Fi Fiscal s sustainability

Creating sustainable fiscal management § Raise non-oil revenue to SAR 530bn by 2020 § Reduce public wages to 40% of Budget § Create USD 2trn Public Investment Fund

Pr Productivity

Leverage our young population, 50% being younger than 25 § Lower the rate of unemployment from 11.6% to 7% § Increase SME contribution to GDP from 20% to 35% § Increase women’s participation in the workforce from 22% to 30% § Improve education with an uplift of 15% on Math and English attainment

Ar Areas of f Focus Se Selected d Commitments / KPIs

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NCB Investor Relations 3Q 2017 Investor Presentation 16

Economic upturn

…leading to an expected economic rebound in 2018F

Source: Ministry of Finance, Fiscal Balance Program, and NCB Economics Forecasts

690 820 855 860 840 183 156 245 118 (15) 873 873 976 976 1,100 1,100 978 978 825 825 890 890 928 928 950 950 953 953 26.6% 19.0% 28.7% 13.7%

  • 1.8%

0.0%

  • 10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% (150) 50 250 450 650 850 1,050 1,250

2012 2013 2014 2015 2016P 2017F 2018F 2019F 2020F

Fiscal al D Discipline ( (SRb Rbn)

Budget Actual Budget Overrun (%) 99 99 60 60 44 44 14 142 317 317 432 32 549 9 631 631 612 612

4% 2% 2% 6% 13% 17% 21% 23% 21%

  • 10%
  • 5%

0% 5% 10% 15% 20% 25% 200 400 600 800 1,000 1,200

2012 2013 2014 2015 2016P 2017F 2018F 2019F 2020F

Utilizing U Untap apped D Debt M Mar arkets ( (SRb Rbn)

Domestic Public Debt Debt to GDP Ratio (%)

1,145 1,035 913 446 334 477 470 491 521 103 121 131 169 186 200 243 295 359 1,247 1,247 1,156 1,156 1,044 1,044 616 616 519 519 677 677 713 713 786 786 880 880

(100) 100 300 500 700 900 1,100 1,300 1,500 1,700

2012 2013 2014 2015 2016P 2017F 2018F 2019F 2020F

Re Revenue D Diversificat ation

  • n (

(SRb Rbn)

Oil Revenues Non-oil Revenues

5.3% 5.3% 2.7% 2.7% 3.6% 3.6% 4.1% 4.1% 1.8% 1.8%

  • 1.2%

1.2% 0.6% 0.6% 1.2% 1.2% 1.9% 1.9%

(0) (0) (0)

2012 2013 2014 2015 2016P 2017F 2018F 2019F 2020F

Econ

  • nom
  • mic Re

Rebou

  • und (

(%)

Oil Non-oil Public Non-oil Private Real GDP

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SLIDE 17

NCB Investor Relations 3Q 2017 Investor Presentation 17

NCB is aligned with Government priorities

NCB has already made significant contributions to the economic welfare of Saudi Arabia

Government aims to mobilize capital and channel to target sectors NCB plans to target sectors where we have competitiveness and scale

NCB supports +70,000 SME across Saudi Arabia with leading market share Only local and joint lead manager for KSA’s inaugural USD 17.5bn bond issuance and numerous sukuk issuances. NCB is a large investor in Saudi Government Bonds with a portfolio SR 42bn. NCB has provided home financing for more than 20,000 Saudi families with a portfolio of SR 19bn

Achieving f fiscal su sust stainability Opening u up t the Saudi e economy Increase S SME co cont ntribution n to G GDP Increase h home

  • w
  • wnership

Re Reduce Sa Saudi un unemployment Diversify e economy

NCB is the leading lender for KSA companies with a portfolio

  • f SR 137bn; 15% market share

NCB is the number one financial institution in Saudization (95%) and has a 100% Saudi top management team

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SLIDE 18

NCB Investor Relations 3Q 2017 Investor Presentation

National Commercial Bank Strategic overview 3Q 2017 Results

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SLIDE 19

NCB Investor Relations 3Q 2017 Investor Presentation 19

NCB’s strategic plan is about execution

Domestic leadership position drives strategic priorities

Re Retail Ba Banking

Ex Expand sh share o re of reta retail pr profits

Co Corporate Ba Banking

Gro Grow sel selec ectivel ely a and in increase ris isk-ad adjusted retu return rns

TF TFKB

In Increase profit co contri tributi tion

Tr Treasury

Di Diversify funding, sustain investment returns and cross-sel sell

NCBC

Gen Genera erate A e AUMs a s and c cater t er to GR GRE’s g s gro rowing n need eeds

Lean Distribution Di Digitization

Ex Expand rea reach ch w with th l lea ean br branches Anyw Anywhere, anyt nytime, ins nstant nt bank nking ng

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NCB Investor Relations 3Q 2017 Investor Presentation 20

Distribution expansion

We accelerated expansion of our distribution platform in Saudi Arabia…

299 299 322 322 342 342 352 352 374 374 +6%

100 200 300 400 500 600 700

2012 2013 2014 2015 2016

Number of

  • f b

bran anches

28 28 57 57 97 97 138 138 148 148 +52%

50 100 150 200 250

2012 2013 2014 2015 2016

Re Remittan ance C Centers

1,960 1,960 2,252 2,252 2,643 2,643 3,107 3,107 3,477 3,477 +15%

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

2012 2013 2014 2015 2016

Number of

  • f A

ATM TMs

12,775 12,775 14,075 14,075 26,514 26,514 30,803 30,803 39,132 39,132 +32%

10,000 20,000 30,000 40,000 50,000 60,000 70,000

2012 2013 2014 2015 2016

Poi

  • int of
  • f S

Sal ale

CAGR CAGR CAGR CAGR

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SLIDE 21

NCB Investor Relations 3Q 2017 Investor Presentation

60% 60% 69% 69% +15%

1 1 1 1

2014 2016

Fron

  • nt /

/ B Bac ack O Office Rat Ratio

  • (%)

(%)

21

Lean distribution

…and are streamlining branch formats to enhance productivity gains

St Strategic Imperatives

§ Continue expanding our distribution reach to acquire customers and grow market share § Expand with smaller branches that are headcount efficient § Optimize costs of existing branch network § Equip branches with self-service/assisted-service technologies § Enhance the in-branch sales and service model to improve customer experience

39.0% 39.0% 37.7% 37.7% +3%

1 1 1

2014 2016

Cos

  • st /

/ I Incom

  • me Rat

Ratio (

  • (%)

1.35 1.35 1.78 1.78 +32%

1 1 2 2 3

2014 2016

Operat ating I Incom

  • me /

/ F FTE TE (SRm Rm)

12.1 12.1 11.0 11.0

  • 9%

2 4 6 8 10 12 14 16 18 20

2014 2016

FTE TE / / B Bran anch

8,021 8,021 8,035 8,035 +0%

(1,000) 1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000

2014 2016

Ban ank H Head adcou

  • unt

(NCB e employ

  • yees)
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SLIDE 22

NCB Investor Relations 3Q 2017 Investor Presentation 22

Digitization

Migrate customers to digital through superior user experiences

St Strategic Fo Focus Areas

§ Mobile first - anytime, anywhere § Consistently lead KSA banks in functionality and user-experience § Expand end-to-end digital sales capability § Expand subscription base and incentivize usage § Leverage data and analytics to drive sales effectiveness

10% 10% 29% 29% +70%

1 1

2014 2016

Digital al Tr Tran ansac actor

  • rs

(% (% of

  • f t

tot

  • tal

al b bas ase)

CAGR CAGR CAGR

13.0 17.5 2.8 17.9 15.8 15.8 35.4 35.4 +50%

10 20 30 40 50 60

2014 2016

Digital al Tr Tran ansac action

  • ns

(mn mn)

Online Mobile

8% 8% 4% 4%

  • 29%

2014 2016

Bran anch F Finan ancial al Tr Tran ansac action

  • ns

(% of

  • f t

tot

  • tal

al)

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SLIDE 23

NCB Investor Relations 3Q 2017 Investor Presentation

5.7 5.7 7.5 7.5 +15%

2 4 6 8 10 12 14

2014 2016

Tot Total al O Operat ating I Incom

  • me (

(SRb Rbn)

Retail Banking

We are transforming retail distribution to increase share of profits

St Strategic Fo Focus Areas § Grow market share in consumer finance § Grow in high deposit segments (Affluent/ HNW / GRE) § Expand and optimize branch network § Drive digital migration § Continue improving customer satisfaction

CAGR CAGR CAGR

1.6 1.6 3.2 3.2 +43%

1 2 3 4 5 6

2014 2016

Net I Incom

  • me (

(SRb Rbn)

23

72 72 85 85 17.4% 19.7% +8%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

20 40 60 80 100 120 140 160

2014 2016

Con

  • nsumer F

Finan ancing & & A Advan ances, n , net (SRb Rbn)

Consumer Financing & Advances, net (SRbn) Market Share (%)

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SLIDE 24

NCB Investor Relations 3Q 2017 Investor Presentation

3.7 3.7 4.6 4.6 +11%

1 2 3 4 5 6 7 8

2014 2016

Tot Total al O Operat ating I Incom

  • me (

(SRb Rbn)

108 108 130 130 +10%

50 100 150 200 250

2014 2016

Cor

  • rpor
  • rat

ate F Finan ancing & & A Advan ances, n , net (SRb Rbn)

24

Corporate Banking

Grow selectively and increase risk-adjusted returns

St Strategic Fo Focus Areas § Focus on portfolio quality and proactively manage risk § Build a deal pipeline in V2030 target sectors § Cross sell treasury and cash management § Drive migration to digital channels § Expand collection capacity and increase recoveries

CAGR CAGR CAGR

3.2 3.2 2.7 2.7

  • 9%

1 1 2 2 3 3 4 4 5 5

2014 2016

Net I Incom

  • me (

(SRb Rbn)

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SLIDE 25

NCB Investor Relations 3Q 2017 Investor Presentation

35% 35% 25% 25%

  • 15%

1

2014 2016

Investments as as % % of

  • f Tot

Total al A Assets

25

Treasury

Broaden and deepen liquidity access while sustaining investment returns and cross-sell

St Strategic Fo Focus Areas § Execute international hubs strategy § Expand wholesale funding program § Maintain the high quality/liquidity and profitability of the investment book § Support the development of the sukuk capital markets § Underpin Islamic product innovation

100 100 104 104 152.3% 172.5%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% 200.0% 20 40 60 80 100 120 140 160 180 200

2015 2016

HQLA an and L Liquidity C Cov

  • verag

age ( (SRb Rbn/%)

High quality liquid assets (HQLA) Liquidity coverage ratio (LCR) CAGR CAGR

HQLA is group-wide 4Q average LCR shows 4Q average

99% 99% 96% 96%

  • 2%

1 1 1 1 1 2 2

2014 2016

Sau audi G Gov

  • vernment an

and I Investment Grad ade I Investments as as % % of

  • f Tot

Total al

Lo London

Ba Bahrain

Si Singapore Je Jeddah

Es Esta tablished Un Under consideration

Fr Frankfurt Ne New York Ho Hong K Kong

slide-26
SLIDE 26

NCB Investor Relations 3Q 2017 Investor Presentation 26

NCB Capital

KSA’s leading investment bank and asset manager; well positioned to capture future growth

St Strategic Fo Focus Areas § Grow recurring revenues by gathering more AUMs, launching new products, growing Corporate Savings business § Set the stage for future market upturn by growing brokerage market share and continuing to invest in NCBC capabilities § Build on market leadership, landmark IB mandates to support GREs as well as local and foreign institutional clients § Continue to focus on increasing efficiency, improving productivity to bolster resilience

57 57 115 115 +102%

50 100 150 200 250

2014 2016

NC NCBC As Assets under Ma Manageme ment (SRbn)

4,294 4,294 2,314 2,314 8,333 8,333 7,210 7,210

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

2014 2016

Ta Tada dawul ul Tr Trade ded d Value ue (S (SRbn) ) & TASI Index

Traded Value TASI Index

490 490 283 283 11.4% 11.4% 12.2% 12.2%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 100 200 300 400 500 600 700 800 900

2014 2016

NC NCBC Traded Value (SRb Rbn) & & Market Share (%)

10.1% 10.1% 13.0% 13.0%

+2.9ppt 2014 2016

NC NCBC Share of Sector Ne Net In Income (%)

slide-27
SLIDE 27

NCB Investor Relations 3Q 2017 Investor Presentation

4.1% 4.1% 3.0% 3.0%

  • 15%

2014 2016

TF TFKB C Con

  • ntribution
  • n t

to N

  • NCB

Net I Incom

  • me (

(%)

1,446 1,446 2,066 2,066 +20%

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

2014 2016

Tot Total al O Operat ating I Incom

  • me

(TRYm TRYmn)

334 334 296 296

  • 6%

100 200 300 400 500

2014 2016

Net I Incom

  • me (

(TRYm TRYmn)

33.5 33.5 38.8 38.8 +8%

10 20 30 40 50 60 70

2014 2016

Tot Total al A Assets ( (TRYb TRYbn)

27

Türkiye Finans Katılım Bankası

We are executing a transformation program to grow TFKB’s net income

Lo Long-term term stra strateg tegic i c investm estmen ent i t in T TFKB § High-growth and profitable banking sector § Strong position in participation banking and scalable platform § Large, young and skilled workforce St Strategic Fo Focus us Areas § Strengthen underwriting and improve collections § Resume branch expansion and expand digital channels § Increase automation and drive capacity optimization § Instill NCB’s principles (Customer excellence, robust governance, best-in-class technology)

CAGR CAGR CAGR CAGR

slide-28
SLIDE 28

NCB Investor Relations 3Q 2017 Investor Presentation

National Commercial Bank Financial Results Highlights 3Q 2017 Results

slide-29
SLIDE 29

NCB Investor Relations 3Q 2017 Investor Presentation 29

Key messages

3Q 2017 Results

Pr Profitability Ba Balance ce Sh Sheet As Asset Quality, Ca Capit italis isatio ion an and L Liquidity

§ 1% 1% total as assets an and finan ancing growth YTD reflective of subdued environment (domestic financing +2%; international -6%) § 5% 5% YTD inv investment nts growth through Saudi Government debt issuance participation and portfolio re-balancing § 4% 4% YTD de decline in de deposits as the funding mix was

  • ptimized by reducing time deposits, but CASA growth
  • f 4%

§ 1% 1% NS NSCI growth in 3Q YTD as NSCI margin improved by 13bps while average earning assets declined by 3% attributable to international § 7% % dec ecline e in fee ee and other er income e in 3Q YTD due to lower fees primarily from financing, credit cards and trade finance § Ex Expe penses for 3Q YTD im improved 8% due to ongoing digitization and productivity initiatives § 3% 3% growth h in 3Q YTD ne net inc income § Im Impai airment char arge for 3Q YTD im improved 6% on lower retail & international credit charges § Group NPL NPL ratio at 1.8% at 3Q 2017 vs. 1.5% at beginning

  • f year and adequate NPL

NPL coverage at 14 142% § Cap Capital al position comfortably above regulatory minima with CE CET1 of 14.5% and T1 T1 of 16. 6.4% at 3Q 2017 § St Stro rong liquidity with LTD TD ratio of 85% 5%, average 3Q LC LCR

  • f
  • f 172% and Le

Leverage Ratio of f 12.7% at 3Q 2017

254 254 257 257 +1%

100 200 300 400 500 600

4Q 16 3Q 17 Fin Financin ing (SR SRbn) De Deposits (SR SRbn) 316 316 303 303

  • 4%
100 200 300 400 500 600 700 800

4Q 16 3Q 17 7.03 03 0. 0.06 06 (0. 0.27) 0. 0.41 1 0. 0.10 10 (0. 0.08 08) 7.25 7.25

1 1 1 1 1

3Q 16 YTD NSCI Non- SCI Expenses Impair- ments Other 3Q 17 YTD

Ne Net income movement (SR SRbn) NP NPL & Co CoR (% (%) CE CET1 and LTD TD (%) 1. 1.5% 1. 1.8% 0. 0.7% 0. 0.8%

0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4%

4Q 16 3Q 17

NPL CoR (YTD)

15 15.3% 3% 14 14.5% 80% 0% 85% 85%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

4Q 16 3Q 17

CET1 LTD

slide-30
SLIDE 30

NCB Investor Relations 3Q 2017 Investor Presentation 30

Profitability

Pr Profitability Trends

SR (mn) 3Q 2 201 017 2Q 2 201 017 3Q 2 201 016 YoY % % ch chang nge 3Q 2 201 017 Y YTD 3Q 2 201 016 Y 6 YTD YoY % % ch chang nge Net special commission income 3,449 3,473 3,442

+0%

10,283 10,226

+1%

Fee and other income 1,042 1,005 1,221

  • 15%

3,546 3,821

  • 7%

Total o

  • perating i

income 4,492 92 4, 4,47 478 4,663 663

  • 4%

4%

13,830 14,04 047

  • 2%

2%

Operating expenses (1,602) (1,521) (1,702)

  • 6%

(4,811) (5,222)

  • 8%

Total impairment charge (695) (475) (956)

  • 27%

(1,593) (1,698)

  • 6%

Income f from o

  • perations, n

net 2,195 95 2, 2,483 2,005 005

+9 +9%

7,426 6 7, 7,127 7

+4 +4%

Net i income a attributed t to e equity h holders 2,126 6 2, 2,417 1,962 962

+8 +8%

7,246 6 7,03 030

+3% +3%

YTD Net income growth from improved impairments and efficiency, partly offset by lower fee and other income

4.72 4.72 4.66 4.66 4.66 4.66 4.60 4.60 4.86 4.86 4.48 4.48 4.49 4.49

  • 4%

1 2 3 4 5 6 7 8 9 10

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Tot Total al O Operat ating I Incom

  • me (

(SRb Rbn)

14.0 14.0 13.8 13.8

  • 2%

5 10 15 20 25

3Q 16 YTD 3Q 17 YTD

2.63 2.63 2.44 2.44 1.96 1.96 2.29 2.29 2.70 2.70 2.42 2.42 2.13 2.13 +8%

1 2 3 4 5 6

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Net I Incom

  • me A

Attributed t to E

  • Equity H

Hol

  • lders (

(SRb Rbn)

7.0 7.0 7.2 7.2 +3%

(1) 1 3 5 7 9 11 13 15

3Q 16 YTD 3Q 17 YTD

slide-31
SLIDE 31

NCB Investor Relations 3Q 2017 Investor Presentation 31

Balance Sheet

Ba Bala lance Sheet Trends

SR (mn) 3Q 2 201 017 2Q 2 201 017 3Q 2 201 016 YoY % % ch chang nge FY 2 201 016 YTD % % ch chang nge Investments, net 116,900 114,634 111,487 +5% 111,509 +5% Financing and advances, net 256,852 256,901 259,915

  • 1%

253,592 +1% Total a assets 444,67 679 9 449, 9,776 6 438,765 65 +1 +1% 441,491 91 +1 +1% Customers' deposits 302,593 314,690 311,225

  • 3%

315,618

  • 4%

Debt securities issued 10,166 9,926 10,204

  • 0%

9,918 +3% Total l liabilities 381,94 944 388,62 623 379, 9,696 696 +1 +1% 381,566 66 +0% 0% Equity a attributable t to s shareholders 54 54,433 52,876 6 51,95 954 +5 +5% 53,03 038 +3 +3% Total e equity 62 62,736 6 61 61,152 59, 9,069 069 +6% 6% 59, 9,92 926 6 +5 +5%

Growth constrained by economic environment

136 137 135 130 134 135 135 80 83 84 85 85 87 88

38 37 33 28 27 27 27

265 265 265 265 260 260 254 254 254 254 257 257 257 257 +1%

50 100 150 200 250 300 350 400 450

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Finan ancing an and A Advan ances, n , net ( (SRb Rbn)

Corporate Consumer and credit card International Others

231 220 217 224 236 248 232 81 81 78 79 66 55 59 326 326 315 315 311 311 316 316 314 314 315 315 303 303

  • 4%

100 200 300 400 500 600

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Custom

  • mers' D

' Depos

  • sits (

(SRb Rbn)

CASA Time Others

slide-32
SLIDE 32

NCB Investor Relations 3Q 2017 Investor Presentation

Retail 44% Corporate 24% Treasury 20% Capital Market 3% International 9%

Tot Total al O Operat ating I Incom

  • me b

by S Segment ( (SRb Rbn)

32

Segmental Information

YTD Total operating income lower due to depreciation of Turkish Lira, partly offset by higher Retail and Corporate operating income

14.0 13.8 13.8

5,000 10,000 15,000 20,000 25,000

3Q 16 YTD 3Q 17 YTD

4,663 4,663 159 159 (111) (111) (62) (62) 40 40 (197) (197) 4,492 4,492

100 200 300 400 500 600 700 800

3Q 16 Retail Corporate Treasury Capital Market International 3Q 17

QTR Tot TR Total al O Operat ating I Incom

  • me G

Grow

  • wth b

by S Segment ( (SRb Rbn)

14,047 14,047 161 161 185 185 (65) (65) 41 41 13,830 13,830 (539) (539)

200 400 600 800 1,000 1,200

3Q 16 YTD Retail Corporate Treasury Capital Market International 3Q 17 YTD

YTD YTD Tot Total al O Operat ating I Incom

  • me G

Grow

  • wth b

by S Segment ( (SRb Rbn)

104 109 107 143 143 143 152 156 154

41 39 39

441 441 450 450 445 445 +1%

100 200 300 400 500 600 700

4Q 16 2Q 17 3Q 17

Tot Total al A Assets b by S Segment (SRb Rbn)

Retail Corporate Treasury Capital Market International

85 87 88 130 135 135 28 27 27 254 254 257 257 257 257 +1%

50 100 150 200 250 300 350 400 450

4Q 16 2Q 17 3Q 17

Finan ancing an and A Advan ances, n , net by S Segment ( (SRb Rbn)

Retail Corporate International Other

slide-33
SLIDE 33

NCB Investor Relations 3Q 2017 Investor Presentation

Retail 32% Corporate 23% Treasury 38% Capital Market 3% International 4%

Net I Incom

  • me b

by S Segment ( (SRb Rbn)

33

Segmental Information

3Q YoY and YTD net income growth in most segments, except Corporate which was impacted by rising impairments

7.1 7.3 7.3

2 4 6 8 10 12

3Q 16 YTD 3Q 17 YTD

1,976 1,976 476 476 14 14 (404) (404) 43 43 54 54 2,159 2,159

200 400 600 800 1,000 1,200

3Q 16 Retail Corporate Treasury Capital Market International 3Q 17

QTR N TR Net I Incom

  • me G

Grow

  • wth b

by S Segment ( (SRm Rmn)

7,089 7,089 363 363 (436) (436) 180 180 40 40 7,344 7,344 108 108

200 400 600 800 1,000 1,200

3Q 16 YTD Retail Corporate Treasury Capital Market International 3Q 17 YTD

YTD YTD N Net I Incom

  • me G

Grow

  • wth b

by S Segment ( (SRm Rmn)

Ma Management Commentary

§ YTD Total operating income declined 2% YoY due to depreciation

  • f the Turkish Lira impacting International income (-31%), partly
  • ffset by growth in Retail (+3%) and Corporate (+6%).

§ YTD Net income improved 3% YoY respectively due to growth in Retail (+19%) and Treasury (+7%), partly offset by a decline in Corporate net income (-20%) as a result of higher impairments.

slide-34
SLIDE 34

NCB Investor Relations 3Q 2017 Investor Presentation

National Commercial Bank Financial Results Details 3Q 2017 Results

slide-35
SLIDE 35

NCB Investor Relations 3Q 2017 Investor Presentation 35

Income Highlights

Ma Management Commentary

§ 3Q 2017 total operating income declined 4% YoY despite stable net special commission income due to lower investment-related income and Turkish Lira depreciation. § 3Q 2017 YTD total operating income declined 2% YoY despite 1% growth in net special commission income due to lower fees from banking services and Turkish Lira depreciation. § Excluding the International business, 3Q 2017 total operating income grew 1% YoY (+3% 3Q 2017 YTD YoY).

Lower YTD and QTR total operating income largely attributable to lower fee and other income and Turkish Lira depreciation

3.44 3.47 3.45 1.22 1.00 1.04 4.66 4.66 4.48 4.48 4.49 4.49

  • 4%

1 2 3 4 5 6 7 8

3Q 16 2Q 17 3Q 17

Tot Total al O Operat ating I Incom

  • me (

(SRb Rbn)

Net special commission income Fee and other income

10.2 10.3 3.8 3.5 14.0 14.0 13.8 13.8

  • 2%

5 10 15 20 25

3Q 16 YTD 3Q 17 YTD

14.05 14.05 0.47 0.47 (0.15) (0.15) 14.37 14.37 (0.54) (0.54) 13.83 13.83

1 1 2 2 3 3

3Q 16 YTD NSCI Non-NSCI Income

  • Excl. Intn'l

International 3Q 17 YTD

YTD YTD Tot Total al O Operat ating I Incom

  • me M

Mov

  • vement (

(SRb Rbn)

4.66 4.66 0.12 0.12 (0.09) (0.09) 4.69 4.69 (0.20) (0.20) 4.49 4.49

1 1 1 1

3Q 16 NSCI Non-NSCI Income

  • Excl. Intn'l

International 3Q 17

QTR Tot TR Total al O Operat ating I Incom

  • me M

Mov

  • vement (

(SRb Rbn)

slide-36
SLIDE 36

NCB Investor Relations 3Q 2017 Investor Presentation 36

Net special commission income trends

YTD and QTR commission income stable as domestic margin improvement offset by Turkish Lira depreciation

Ma Management Commentary

§ The 3Q 2017 net special commission margin was stable at 3.43% as improved funding costs were

  • ffset by lower commission yields.

§ Special commission expense for 3Q 2017 was 11% lower YoY due to lower SAIBOR rates and a more optimal funding mix. § Excluding the International business, where NSCI was impacted by currency depreciation, domestic NSCI grew by 4% in 3Q 2017. Ne Net Special Commission In Income

SR (mn) 3Q 3Q 2017 2Q 2Q 20 2017 3Q 3Q 2016 Yo YoY Y % ch change 3Q 3Q 2017 YTD 3Q 3Q 2016 YTD Yo YoY Y % ch change Special commission income 4,282 4,268 4,377

  • 2%

12,771 13,103

  • 3%

Special commission expense (833) (794) (935)

  • 11%

(2,488) (2,877)

  • 14%

Ne Net special commission income 3, 3,449 3, 3,473 3 3, 3,442 +0 +0% 10 10,283 10 10,226 +1 +1% Ne Net special commission margin (%) %) 3. 3.43% 3% 3. 3.47% 3. 3.40% +1 +1% 3. 3.46% 3. 3.33% 33% +4%

3.35% 3.24% 3.40% 3.24% 3.48% 3.47% 3.43%

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Net S Special al C Com

  • mmission
  • n M

Mar argin ( (%)

4.29% 4.19% 4.32% 4.31% 4.37% 4.27% 4.25% 1.00% 1.02% 0.96% 1.12% 0.95% 0.84% 0.85%

(0)

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Com

  • mmission
  • n Yi

Yield an and F Funding C Cos

  • st (

(%)

Commission yield (%) Funding cost (%)

1.80% 2.22% 2.36% 2.04% 1.74% 1.78% 1.79% 0.63% 0.65% 0.85% 1.00% 1.15% 1.30% 1.33%

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

SAIBOR an R and L LIBOR Rat R Rates ( (%)

3M SAR SAIBOR (%) 3M USD LIBOR ($)

slide-37
SLIDE 37

NCB Investor Relations 3Q 2017 Investor Presentation

754 790 793 288 285 280 335 78 101 1,221 1,221 1,005 1,005 1,042 1,042

  • 15%

(200) 300 800 1,300 1,800 2,300 2,800

3Q 16 2Q 17 3Q 17

Fee an and O Other I Incom

  • me (

(SRm Rmn)

37

Fee and other income trends

Ma Management Commentary

§ 3Q 2017 fee and other income declined 15% YoY as 5% growth in fees from banking services was more than offset by a 70% decline in investment-related income. § The higher fees from banking services in 3Q 2017 were mainly driven by higher fees from investment management services. § 3Q 2017 YTD fee and other income declined 7% YoY mainly resulting from an 8% reduction in fees from banking services. § The lower fees from banking services in 3Q 2017 YTD were mainly driven by lower financing, credit card and trade finance fees, partly

  • ffset by higher fees from investment management services.

Lower YTD and QTR fees and investment related income

754 754 48 48 15 15 (16) (16) (7) (7) 793 793

20 40 60 80 100 120 140 160

3Q 16

  • Invmnt. Mgmnt.

Financing Credit Cards Others 3Q 17

QTR K TR Key Drivers of

  • f F

Fee I Incom

  • me f

from

  • m B

Ban anking S Services Mov

  • vement (

(SRm Rmn)

2,584 2,584 69 69 (129) (129) (57) (57) (50) (50) (32) (32) 2,385 2,385

(50) 50 150 250 350 450 550 650 750

3Q 16 YTD Invmnt. Mgmnt. Financing Credit Cards Trade Finance Others 3Q 17 YTD

YTD YTD K Key Drivers of

  • f F

Fee I Incom

  • me f

from

  • m B

Ban anking S Services Mov

  • vement (

(SRm Rmn)

2,584 2,385 856 890 687 637 3,821 3,821 3,546 3,546

  • 7%

(400) 600 1,600 2,600 3,600 4,600 5,600 6,600 7,600

3Q 16 YTD 3Q 17 YTD

slide-38
SLIDE 38

NCB Investor Relations 3Q 2017 Investor Presentation 38

Expense highlights

Digitization and productivity enhancement delivered expense savings in 3Q 2017 YTD

Ma Management Commentary

§ 3Q YTD operating expenses improved by 8% YoY. § The YTD cost to income ratio improved by 2.4% YoY to 34.8%. § The cost base improvement was relatively broad-based, reflecting the continued strides made in digitisation and productivity initiatives, and further benefited from the cessation of intangible assets amortisation as well as currency depreciation in the Turkish subsidiary.

5,222 5,222 (80) (80) (10) (10) (147) (147) (175) (175) 4,811 4,811

200 400 600 800 1,000 1,200

3Q 16 YTD Employee- related Rent & premises Depreciation & amortisation Other G&A 3Q 17 YTD

Operat ating E Expenses M Mov

  • vement D

Drivers ( (SRm Rmn)

2,552 2,472

578 568 648 501

1,444 1,269 5,222 5,222 4,811 4,811

  • 8%

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

3Q 16 YTD 3Q 17 YTD

36.0% 37.5% 37.2% 37.7% 34.7% 34.4% 34.8% 33.2% 35.1% 34.9% 36.2% 32.9% 32.4% 32.9%

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Cos

  • st t

to I

  • Incom
  • me Rat

Ratio (

  • (YTD

YTD % %)

Group (%) Excluding International (%)

786 835 797

194 188 197 219 154 153

502 345 455 1,702 1,702 1,521 1,521 1,602 1,602

  • 6%

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

3Q 16 2Q 17 3Q 17

Operat ating E Expenses ( (SRm Rmn)

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

slide-39
SLIDE 39

NCB Investor Relations 3Q 2017 Investor Presentation

Retail 24% Corporate 32% Treasury 35% Capital Market 0% International 9%

Tot Total al A Assets b by S Segment ( (SRb Rbn)

39

Asset highlights and composition

Balance sheet growth reflective of a more subdued economic environment and Turkish Lira depreciation

254 257 257 112 115 117 63 60 52 441 441 450 450 445 445 +1%

100 200 300 400 500 600 700 800

4Q 16 2Q 17 3Q 17

Tot Total al A Assets ( (SRb Rbn)

Financing and advances, net Investments, net Cash and bank balances Other assets

Financing and advances, net 58% Investments, net 26% Cash and bank balances 12% Other assets 4%

Tot Total al A Assets M Mix ( (SRb Rbn)

Ma Management Commentary

§ Total assets grew by 1% during 3Q 2017 YTD due to limited growth in financing (+1%) and moderate growth in investments (+5%). § Overall balance sheet and financing growth was reflective of a more subdued economic environment domestically, and further muted by Turkish Lira depreciation and de-risking at TFKB.

441 445 445

100 200 300 400 500 600

4Q 16 3Q 17

441 445 445

100 200 300 400 500 600

4Q 16 3Q 17

slide-40
SLIDE 40

NCB Investor Relations 3Q 2017 Investor Presentation

Consumer financing and credit cards 34% Commerce 16% Manufacturing 12% Services 8% Utilities & health services 8% Building and construction 8% Others across 6 sectors 14%

Finan ancing an and A Advan ances, g , gros

  • ss b

by E Econ

  • nom
  • mic Sector
  • r )

) (SRb Rbn)

40

Financing and advances

Financing growth diluted by decline in Turkish subsidiary

Ma Management Commentary

§ Domestically, financing grew for the Corporate (+3%) and Consumer (+4%) segments during 3Q 2017 YTD. § International financing declined 6% YTD due to both organic decline and weakened Turkish Lira.

257 260 260

50 100 150 200 250 300 350 400

4Q 16 3Q 17

130 135 135 85 87 88 28 27 27 254 254 257 257 257 257 +1%

100 200 300 400 500 600

4Q 16 2Q 17 3Q 17

Finan ancing an and A Advan ances, n , net ( (SRb Rbn)

Corporate Consumer and credit card International Others

254 257 257

50 100 150 200 250 300 350 400

4Q 16 3Q 17

Corporate 52% Consumer and credit card 34% International 11% Others 3%

Finan ancing an and A Advan ances, n , net b by Ty Type ( (SRb Rbn)

slide-41
SLIDE 41

NCB Investor Relations 3Q 2017 Investor Presentation 41

Financing and advances credit quality (1)

Rise in Corporate NPLs and impairment allowances partly offset by Retail and International

1.57 1.65 1.73 1.93 2.13 2.34 2.63 0.53 0.56 0.63 0.51 0.49 0.49 0.52 1.86 1.62 1.82 1.48 1.48 1.50 1.52 3.96 3.96 3.83 3.83 4.17 4.17 3.93 3.93 4.10 4.10 4.33 4.33 4.67 4.67 +12%

1 2 3 4 5 6 7 8

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

NPL ( (SRb Rbn)

Corporate Consumer and credit card International Others

0.08 0.15 0.19 0.19 0.26 0.25 0.47 0.11 0.02 0.41 0.08 0.17 0.15 0.15 0.21 0.24 0.21 0.08 0.05 0.08 0.35 0.35 0.38 0.38 0.84 0.84 0.36 0.36 0.42 0.42 0.47 0.47 0.69 0.69

  • 17%

1 1 1 1

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Impai airment C Char arge ( (SRb Rbn)

Corporate Consumer and credit card International Others

2.88 2.93 3.13 3.41 3.68 3.92 3.99 1.38 1.27 1.45 1.22 1.16 1.24 1.29 1.49 1.32 1.50 1.26 1.27 1.29 1.33 5.79 5.79 5.56 5.56 6.12 6.12 5.93 5.93 6.15 6.15 6.50 6.50 6.65 6.65 +9%

2 4 6 8 10 12

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Impai airment A Allow

  • wan

ances ( (SRb Rbn)

Corporate Consumer and credit card International Others

2.77 2.72 3.15 3.03 3.06 3.23 3.16 3.02 2.84 2.97 2.90 3.09 3.27 3.49 5.79 5.79 5.56 5.56 6.12 6.12 5.93 5.93 6.15 6.15 6.50 6.50 6.65 6.65 +9%

2 4 6 8 10 12

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Impai airment A Allow

  • wan

ances ( (SRb Rbn)

Portfolio (collective) allowances Specific allowances

slide-42
SLIDE 42

NCB Investor Relations 3Q 2017 Investor Presentation 42

Financing and advances credit quality (2)

Rise in NPL ratio but continued strong NPL coverage

Ma Management Commentary

§ Rising NPL ratio driven by the Corporate segment. § Consumer credit quality remains stable. § International NPL ratio deteriorated over last year, but has been stable since 3Q 2016. § Provision coverage was comfortable at 142% as at 3Q 2017.

0.9% 1.0% 1.0% 1.1% 1.1% 1.2% 1.3% 4.7% 4.3% 5.3% 5.0% 5.3% 5.4% 5.4% 1.5% 1.5% 1.4% 1.4% 1.6% 1.6% 1.5% 1.5% 1.6% 1.6% 1.6% 1.6% 1.8% 1.8%

(0) (0)

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

NPL Rat Ratios

  • s (

(%)

Domestic International Total NPL ratio

205% 192% 196% 191% 186% 184% 169% 80% 81% 83% 85% 86% 86% 87% 146% 146% 145% 145% 147% 147% 151% 151% 150% 150% 150% 150% 142% 142%

(0) 1 1 2 2

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

NPL C Cov

  • verag

age Rat Ratios

  • s (

(%)

Domestic International Total NPL coverage ratio

0.3% 0.3% 0.6% 0.5% 0.6% 0.6% 0.8% 1.5% 1.9% 2.3% 2.7% 1.2% 1.0% 1.0% 0.5% 0.5% 0.5% 0.5% 0.8% 0.8% 0.7% 0.7% 0.6% 0.6% 0.7% 0.7% 0.8% 0.8%

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

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

CoR

  • R Rat

Ratios

  • s (YTD

YTD % %)

Domestic International Total CoR ratio

slide-43
SLIDE 43

NCB Investor Relations 3Q 2017 Investor Presentation 43

Financing and advances credit quality (3)

Consumer NPLs declined while Corporate NPLs increased

1.1% 1.2% 1.3% 1.4% 1.5% 1.7% 1.9% 0.7% 0.7% 0.7% 0.6% 0.6% 0.6% 0.6%

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

NPL Rat Ratios

  • s (

(%)

Corporate Consumer and credit card

184% 177% 181% 177% 173% 168% 152% 260% 229% 232% 237% 238% 254% 246%

1 1 1 2 2 2 2 2 3 3 3

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

NPL C Cov

  • verag

age Rat Ratios

  • s (

(%)

Corporate Consumer and credit card

0.2% 0.3% 0.4% 0.5% 0.8% 0.7% 0.9% 0.6% 0.3% 0.8% 0.6% 0.4% 0.6% 0.6%

(0) (0)

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

CoR

  • R Rat

Ratios

  • s (

(YTD YTD % %)

Corporate Consumer and credit card

Ma Management Commentary

§ Rising Corporate NPL ratio but coverage remains strong at 152% as at 30 September 2017. § Consumer NPL ratio and coverage remain stable.

slide-44
SLIDE 44

NCB Investor Relations 3Q 2017 Investor Presentation

Saudi Arabia 51% GCC and Middle East 19% Europe 1% Turkey 4% Other countries 25%

Investments b by G Geog

  • grap

aphy ( (SRb Rbn)

Investments trends and composition

Investments rose through participation in Saudi Government debt issuance and ~90% of the investment portfolio remains Saudi Government or investment grade

112 117 117

20 40 60 80 100 120 140 160

4Q 16 3Q 17

Ma Management Commentary

§ The investment portfolio is built on high quality securities with ~90% being investment grade. § Since the resumption of KSA government debt issuance , NCB has actively participated in issues of longer term debt securities. § The portfolio has been re-balancing towards floating rate securities during the year in light of the rising interest-rate environment.

Saudi Government Securities 36% Other investment grade 54% Non-investment grade 5% Unrated 5%

Investments b by C Credit G Grad ade ( (SRb Rbn)

44

71 65 66 35 44 44 112 112 115 115 117 117 +5%

50 100 150 200 250

4Q 16 2Q 17 3Q 17

Investments ( (SRb Rbn)

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

112 117 117

20 40 60 80 100 120 140 160 180

4Q 16 3Q 17

slide-45
SLIDE 45

NCB Investor Relations 3Q 2017 Investor Presentation

Due to banks and other financial institutions 15% Customers' deposits 79% Debt securities issued 3% Other liabilities 3%

Tot Total al L Liab abilities M Mix ( (SRb Rbn)

45

Liabilities trends and composition

Stable total liability base and improving deposit mix towards CASA balances

Ma Management Commentary

§ Customers’ deposits are the main source of funding and remained stable during 1H 2017 but declined by 4% during 3Q 2017 as the funding mix was optimized by reducing time deposits. § CASA balances grew by 4% YTD and account for 77% of customers’ deposits.

316 315 303 45 51 58 382 382 389 389 382 382 +0%

100 200 300 400 500 600 700

4Q 16 2Q 17 3Q 17

Tot Total al L Liab abilities ( (SRb Rbn)

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

382 382 382

100 200 300 400 500 600

4Q 16 3Q 17

218 225 6 7 79 59 316 316 303 303

  • 4%

100 200 300 400 500 600

4Q 16 3Q 17

Custom

  • mers' D

' Depos

  • sits (

(SRb Rbn)

CASA - Domestic CASA - International Time Others

slide-46
SLIDE 46

NCB Investor Relations 3Q 2017 Investor Presentation 46

Liquidity

NCB maintained a strong liquidity profile

Ma Management Commentary

§ As at 3Q 2017, the financing to customer deposits ratio was 84.9% and comfortably below the regulatory guidelines. § HQLA balances declined compared to 2Q 2016, but average quarterly LCR improved to 172.5% from 159.8% in 3Q 2016. § Basel III leverage ratio improved to 12.7% from 12.1% in 3Q 2016.

LCR is quarterly average

94 94 101 101 97 97 104 104 102 102 96 96 91 91 145.3% 156.1% 159.8% 172.5% 163.8% 166.1% 172.5%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% 200.0% 50 100 150 200

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

HQLA an and L Liquidity C Cov

  • verag

age ( (SRb Rbn/%)

High quality liquid assets (HQLA) Liquidity coverage ratio (LCR)

81.4% 84.1% 83.5% 80.3% 81.0% 81.6% 84.9%

1 1 1 1 1 1 1 1 1

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Finan ancing t to C

  • Custom
  • mer D

Depos

  • sits Rat

Ratio (

  • (%)

11.5% 11.6% 12.1% 12.2% 12.4% 12.2% 12.7%

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Bas asel I III L Leverag age Rat Ratio (

  • (%)
slide-47
SLIDE 47

NCB Investor Relations 3Q 2017 Investor Presentation

Ma Management Commentary

§ As at 3Q 2017, capitalization remained strong and comfortably above the regulatory minima. § Pillar I risk weighted assets increased by 8% YTD as revised regulatory requirements for the calculation of certain credit risk weighted assets came into effect during 1Q 2017. § During 2Q 2017, additional Tier 1 Sukuk of SR 1.3bn were issued, taking the total to SR 7bn as at 30 September 2017.

Common equity tier 1 capital (CET1) 78% Additional tier 1 capital (AT1) 10% Tier 2 capital (T2) 12%

Tot Total al C Cap apital al C Com

  • mpos
  • sition
  • n (

(SRb Rbn)

47

Capital

Capital position comfortably above regulatory minima

67.7 70.4 70.4

10 20 30 40 50 60 70 80 90 100

4Q 16 3Q 17 Capital ratios are based on Pillar I RWA

54 54 55 6 7 7 8 8 8 68 68 69 69 70 70 +4%

20 40 60 80 100 120

4Q 16 2Q 17 3Q 17

Cap apital alisat ation

  • n (

(SRb Rbn)

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

312 336 33 34 353 353 380 380 +8%

100 200 300 400 500 600 700 800

4Q 16 3Q 17

Pillar ar I I Ri Risk W Weighted A Assets ( (SRb Rbn)

Credit risk Operational risk Market risk

15.5% 16.1% 16.7% 16.9% 16.1% 16.0% 16.4% 17.5% 18.2% 19.0% 19.2% 18.2% 18.2% 18.5% 13.9% 14.5% 15.1% 15.3% 14.6% 14.1% 14.5%

12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0%

1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17

Cap apital al Rat Ratios

  • s (

(%)

T1 ratio TC ratio CET1 ratio

slide-48
SLIDE 48

NCB Investor Relations 3Q 2017 Investor Presentation

National Commercial Bank Segmental Review 3Q 2017 Results

slide-49
SLIDE 49

NCB Investor Relations 3Q 2017 Investor Presentation 49

Retail Banking

Strong YTD and QTR net profit growth resulting from operating income growth, improved efficiency and lower impairments

Ma Management Commentary § 3Q 2017 net income rose 116% YoY driven principally by 8% operating income growth, a 6% improvement in operating efficiency and 64% lower impairments. § NSCI for 3Q 2017 improved by 6% YoY due to a 4% increase in retail financing. § Fee income increased by 7% in 3Q 2017 YoY, mainly resulting from financing-related activity. § 3Q 2017 operating expenses improved by 6% and the cost to income ratio improved 13% YoY to 44.7%. This improvement was relatively broad-based across most expense categories, reflecting the continued strides made in digitisation and productivity initiatives. § 3Q 2017 impairments improved by 64% YoY due higher recoveries and improved risk management.

1,625 1,688 1,722 342 331 404 1,967 1,967 2,019 2,019 2,126 2,126 +8%

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

3Q 16 2Q 17 3Q 17

Tot Total al O Operat ating I Incom

  • me (

(SRm Rmn)

Net special commission income Fee and other income

409 409 768 768 885 885 +116%

200 400 600 800 1,000 1,200 1,400

3Q 16 2Q 17 3Q 17

Net I Incom

  • me (

(SRm Rmn) Su Summary ry Financial Perf erform rmance

SR (mn) 3Q 3Q 2017 2Q 2Q 20 2017 3Q 3Q 2016 Yo YoY Y % ch change 3Q 3Q 2017 YTD 3Q 3Q 2016 YTD Yo YoY Y % ch change Total assets 106,939 109,354 109,687

  • 3%

106,939 109,687

  • 3%

To Total ope perating income 2, 2,126 26 2, 2,019 1, 1,967 +8 +8% 6, 6,08 083 5, 5,923 +3 +3% Net special commission income 1,722 1,688 1,625 +6% 4,979 4,684 +6% Fee income from banking services, net 307 311 288 +7% 897 1,039

  • 14%

Operating expenses (950) (911) (1,013)

  • 6%

(2,825) (3,041)

  • 7%

Impairment charge (148) (171) (408)

  • 64%

(397) (542)

  • 27%

Other income (expenses) (142) (168) (136) +5% (546) (387) +41% Ne Net income 885 885 76 768 40 409 +1 +116% 2, 2,315 1, 1,952 +1 +19% Cost to income (%) 44.7% 45.1% 51.5%

  • 13%

46.4% 51.3%

  • 10%

% of total assets 24.0% 24.3% 25.0%

  • 4%

24.0% 25.0%

  • 4%

ROA (%) 3.3% 2.9% 1.5% +120% 2.9% 2.5% +18%

slide-50
SLIDE 50

NCB Investor Relations 3Q 2017 Investor Presentation 50

Corporate Banking

YTD and QTR Net profit impacted by higher impairments

Ma Management Commentary § 3Q 2017 net income dropped 57% YoY due to a 6% decline in total operating income and a 148% rise in impairments. § NSCI for 3Q 2017 declined 8% YoY despite stable corporate financing balances due to lower commission margins resulting from a drop in SAIBOR in 2Q and 3Q 2017 compared with 2016. § Fee income remained stable YoY and QoQ. § 3Q 2017 operating expenses rose by 7% and the cost to income ratio increased 14% YoY to 25.0%. § The 3Q 2017 impairment charge rose 148% YoY due to adequate provision coverage for non-performing corporate financing formation.

825 820 761 280 280 281 1,104 1,104 1,100 1,100 1,042 1,042

  • 6%

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

3Q 16 2Q 17 3Q 17

Tot Total al O Operat ating I Incom

  • me (

(SRm Rmn)

Net special commission income Fee and other income

715 715 659 659 311 311

  • 57%

200 400 600 800 1,000 1,200

3Q 16 2Q 17 3Q 17

Net I Incom

  • me (

(SRm Rmn) Su Summary ry Fi Financial Performance

SR (mn) 3Q 3Q 2017 2Q 2Q 20 2017 3Q 3Q 2016 Yo YoY Y % ch change 3Q 3Q 2017 YTD 3Q 3Q 2016 YTD YoY % change Total assets 143,378 143,320 141,459 +1% 143,378 141,459 +1% To Total ope perating income 1, 1,042 1, 1,10 100 1, 1,10 104

  • 6%

6% 3, 3,38 385 3, 3,200 +6 +6% Net special commission income 761 820 825

  • 8%

2,510 2,348 +7% Fee income from banking services, net 243 243 245

  • 1%

752 753

  • 0%

Operating expenses (260) (209) (243) +7% (741) (724) +2% Impairment charge (465) (247) (188) +148% (972) (418) +133% Other income (expenses) (6) 16 41

  • 114%

46 97

  • 52%

Ne Net income 31 311 65 659 9 71 715

  • 57

57% 1, 1,719 19 2, 2,154

  • 20

20% Cost to income (%) 25.0% 19.0% 22.0% +14% 21.9% 22.6%

  • 3%

% of total assets 32.2% 31.9% 32.2% +0% 32.2% 32.2% +0% ROA (%) 0.9% 1.8% 2.0%

  • 57%

1.6% 2.0%

  • 21%
slide-51
SLIDE 51

NCB Investor Relations 3Q 2017 Investor Presentation 51

Treasury

Higher NSCI and lower investment impairments partly offset by lower investment gains

Ma Management Commentary § 3Q 2017 net income improved 2% YoY from a 16% improvement in NSCI and lower investment impairments, partly offset by lower investment gains. § Operating income in 3Q 2017 declined 13% YoY due to lower gains on non-trading investments from repositioning the investment portfolio. § Investment impairments were negligible during 3Q 2017, while the comparative quarter was impacted by SR 122mn relating to impairments of certain investments of a non- recurring nature.

521 615 607 353 205 156 874 874 820 820 763 763

  • 13%

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

3Q 16 2Q 17 3Q 17

Tot Total al O Operat ating I Incom

  • me (

(SRm Rmn)

Net special commission income Fee and other income

778 778 872 872 792 792 +2%

500 1,000 1,500 2,000

3Q 16 2Q 17 3Q 17

Net I Incom

  • me (

(SRm Rmn) Su Summary ry Fi Financial Performance

SR (mn) 3Q 3Q 2017 2Q 2Q 20 2017 3Q 3Q 2016 Yo YoY Y % ch change 3Q 3Q 2017 YTD 3Q 3Q 2016 YTD Yo YoY Y % ch change Total assets 153,802 156,203 139,529 +10% 153,802 139,529 +10% To Total ope perating income 76 763 82 820 87 874

  • 13

13% 2, 2,709 2, 2,774

  • 2%

2% Net special commission income 607 615 521 +16% 1,768 1,758 +1% Fee income from banking services, net 26 22 22 +19% 73 80

  • 9%

Other operating income 130 183 331

  • 61%

867 936

  • 7%

Operating expenses (97) (86) (61) +60% (338) (275) +23% Impairment charge (2) (2) (122)

  • 98%

(5) (139)

  • 97%

Other income (expenses) 128 140 88 +47% 457 283 +61% Ne Net income 79 792 87 872 778 778 +2 +2% 2, 2,824 24 2, 2,644 +7 +7% Cost to income (%) 12.7% 10.5% 7.0% +83% 12.5% 9.9% +26% % of total assets 34.6% 34.7% 31.8% +9% 34.6% 31.8% +9% ROA (%) 2.0% 2.2% 2.2%

  • 6%

2.5% 2.4% +3%

slide-52
SLIDE 52

NCB Investor Relations 3Q 2017 Investor Presentation 52

Capital Markets

Growth driven by asset management

Ma Management Commentary § 3Q 2017 net income increased by 130% (SR 43mn) YoY due to higher operating income and improved operating efficiency. § Operating income in 3Q 2017 rose 35% (SR 40mn) YoY due to higher fee and other income, mainly resulting from asset management.

33 33 54 54 76 76 +130%

20 40 60 80 100 120 140 160

3Q 16 2Q 17 3Q 17

Net I Incom

  • me (

(SRm Rmn) Su Summary ry Fi Financial Performance

SR (mn) 3Q 3Q 2017 2Q 2Q 20 2017 3Q 3Q 2016 YoY % change 3Q 3Q 2017 YTD 3Q 3Q 2016 YTD Yo YoY Y % ch change Total assets 1,562 1,465 1,568

  • 0%

1,562 1,568

  • 0%

To Total ope perating income 15 154 14 144 114 114 +3 +35% 46 462 42 421 +1 +10% Net special commission income 1 1 +125% 2 1 +240% Fee income, net 148 140 108 +37% 447 412 +9% Operating expenses (79) (91) (81)

  • 2%

(254) (253) +0% Impairment charge Other income (expenses) 1 1 (0)

  • 1115%

2 3

  • 15%

Ne Net income 76 76 54 54 33 33 +1 +130% 21 210 17 171 1 +2 +23% Cost to income (%) 51.4% 63.2% 70.9%

  • 28%

54.9% 60.1%

  • 9%

% of total assets 0.4% 0.3% 0.4%

  • 2%

0.4% 0.4%

  • 2%

ROA (%) 20.2% 15.2% 8.6% +136% 19.5% 13.3% +47%

114 143 153 114 114 144 144 154 154 +35%

50 100 150 200 250 300

3Q 16 2Q 17 3Q 17

Tot Total al O Operat ating I Incom

  • me (

(SRm Rmn)

Fee and other income Net special commission income

slide-53
SLIDE 53

NCB Investor Relations 3Q 2017 Investor Presentation 53

International

Operating income impacted by depreciating Turkish currency but strong net income growth from declining expenses and lower impairment charges

Ma Management Commentary § 3Q 2017 net income improved 135% YoY as a significant reduction in the cost base and improving credit quality more than offset declining operating income. § 3Q 2017 operating expenses fell 29%. This improvement resulted from the ongoing progress made in cost-optimisation initiatives as well as the cessation of intangible assets amortisation from the start of 2017. § The impairment charge for 3Q 2017 declined 66% due to limited new NPL formation in the Turkish subsidiary over the period, further aided by the Turkish Lira depreciation. Su Summary ry Fi Financial Performance

SR (mn) 3Q 3Q 2017 2Q 2Q 20 2017 3Q 3Q 2016 Yo YoY Y % ch change 3Q 3Q 2017 YTD 3Q 3Q 2016 YTD Yo YoY Y % ch change Total assets 38,998 39,433 46,522

  • 16%

38,998 46,522

  • 16%

To Total ope perating income 40 406 39 396 603 603

  • 33%

33% 1, 1,19 190 1, 1,729

  • 31

31% Net special commission income 358 350 471

  • 24%

1,024 1,435

  • 29%

Fee income from banking services, net 70 73 92

  • 24%

214 299

  • 28%

Operating expenses (214) (223) (304)

  • 29%

(653) (929)

  • 30%

Impairment charge (80) (54) (238)

  • 66%

(219) (599)

  • 64%

Other income (expenses) (17) (20) (21)

  • 17%

(42) (33) +27% Ne Net Income 94 94 98 98 40 40 +1 +135% 27 276 16 168 +6 +65% Cost to income (%) 52.8% 56.4% 50.4% +5% 54.9% 53.7% +2% % of total assets 8.8% 8.8% 10.6%

  • 17%

8.8% 10.6%

  • 17%

ROA (%) 1.0% 1.0% 0.3% +195% 0.9% 0.5% +98%

471 350 358 132 46 48 603 603 396 396 406 406

  • 33%

200 400 600 800 1,000 1,200

3Q 16 2Q 17 3Q 17

Tot Total al O Operat ating I Incom

  • me (

(SRm Rmn)

Net special commission income Fee and other income

40 40 98 98 94 94 +135%

20 40 60 80 100 120 140 160 180 200

3Q 16 2Q 17 3Q 17

Net I Incom

  • me (

(SRm Rmn)

slide-54
SLIDE 54

NCB Investor Relations 3Q 2017 Investor Presentation

National Commercial Bank Additional Information 3Q 2017 Results

slide-55
SLIDE 55

NCB Investor Relations 3Q 2017 Investor Presentation 55

Additional Information

Please don’t hesitate to contact NCB Group Investor Relations

Mo More information Download copies of National Commercial Bank’s: § Financial statements § Earnings release § Investor presentation § Financial data pack (Excel) Visit: http://www.alahli.com/en-us/Investor_Relation Mr

  • Mr. Abdulbadie Alyafi

Head, Investor Relations P: +966 12 646 3988 E: investorrelations@alahli.com National Commercial Bank P.O. Box 3555 21481 Jeddah, Kingdom of Saudi Arabia