National Commercial Bank Investor Presentation FY 2017 Results NCB - PowerPoint PPT Presentation

National Commercial Bank Investor Presentation FY 2017 Results NCB Investor Relations FY 2017 Investor Presentation 1

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 otherwise 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. NCB Investor Relations FY 2017 Investor Presentation 2

Investor Presentation Contents 04 NCB – The leading KSA bank 11 Grow with KSA. Grow with NCB. 17 Strategy Overview 28 Financial Results Highlights 35 Financial Results Details 50 Segmental Overview 56 Additional Information NCB Investor Relations FY 2017 Investor Presentation 3

National Commercial Bank The Leading KSA Bank FY 2017 Results NCB Investor Relations FY 2017 Investor Presentation 4

NCB is the leading banking group in Saudi Arabia Established in 1953; IPO in 2014 NCB Snapshot SA SAR SAR SA SAR SA 13 13,436 >8 >8 m 444 bn 444 30 309 bn >100 bn >1 m Clients bn bn bn Employees* Assets Deposits Market Cap Wh Wholesale branch in Bahrain Offices: Singapore, Seoul, Shanghai Of Subsidiary in KSA: Su SA: NC NCB Capital Subsidiary in Turkey: Su Tü Türkiye Finan ans Kat atılım Ban ankas ası Jeddah HQ *Includes Alahli Esnad (1,381 employees) - fully owned subsidiary engaged in recruitment services within KSA NCB Investor Relations FY 2017 Investor Presentation 5

NCB is the leading banking group in Saudi Arabia NCB has a strong market and financial position (3Q 2017) Market Position Ma by by KS KSA Fin Financia ial Posit itio ion KSA KS GCC GC Overall banking Assets #1 Assets #1 #4 Corporate banking Financing #1 Financing #1 #4 Retail banking Financing #2 Deposits #1 #3 Treasury Investments #1 Investments #1 #1 Asset Management AUMs #1 Total Operating Income #1 #3 Brokerage Value Traded #4 Net Income #1 #3 As Assets (SA SARbn) Fi Financing (SAR ARbn) Deposits (SA De SARbn) 500 300 350 450 300 445 250 303 257 400 233 270 250 350 200 338 300 200 250 150 142 150 167 229 200 156 155 218 129 202 121 100 150 100 100 50 50 50 0 0 0 NCB Rajhi Samba Riyad BSF NCB Rajhi Riyad BSF Samba NCB Rajhi Samba Riyad BSF NCB Investor Relations FY 2017 Investor Presentation 6

NCB has a well-diversified business model Total operating income contribution (FY 2017) 3.3 bn 18% TREASURY SAR 16.1 bn 1.6 bn 636 mn 88% 3% 9% 4.5 bn 25% Capital Markets International CORPORATE Largest Asset Manager in KSA NCB Largest Shariah-compliant Asset Manager worldwide 8.3 bn Türkiye Finans Katılım Bankası (TFKB) Top 3 Broker 287 branches, 587 ATMs 45% 400 branches, 3,488 ATMs 15 locations 3,767 employees 150 Remittance centers 297 Employees 7,991 Employees RETAIL Note: KSA based recruitment services firm Alahli Esnad (fully owned subsidiary) employs 1,381 persons NCB Investor Relations FY 2017 Investor Presentation 7

NCB has a strong financial position Key KPIs Total Assets (SARbn) To n) To Total Equi uity y (SARbn) n) +4% +11% 700 100 600 449 449 443 443 444 444 435 43 5 64 64 377 37 80 60 60 500 56 56 47 47 400 43 43 60 300 40 200 20 100 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 CAGR CAGR Capital Ratios (%) Ca Li Liqui quidi dity y Rat atios (%) 177.3% 22.0% 2 172.5% 20.0% 19.2% 2 152.3% 20.0% 2 17.7% 17.2% 17.2% 17.1% 16.9% 1 18.0% 1 15.1% 80.7% 80.3% 78.1% 1 16.0% 66.3% 62.4% 16.2% 1 15.7% 15.3% 14.0% 1 14.7% 0 13.5% 12.0% 0 Liquidity coverage ratio (LCR) Financing to customer deposit ratio TC ratio T1 ratio CET1 ratio 0 10.0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 LCR is based on 4Q average numbers Capital ratios are based on Pillar I RWA LCR was not reported before 2015 NCB Investor Relations FY 2017 Investor Presentation 8

NCB has a strong performance track record Key KPIs To Total Operating ng Inc ncome (SARbn) n) Net Income Attributed to Equity Ho Holders (SARbn) 18 +6% +5% 30 16 25 14 18. 18.6 6 18.3 18. 17. 17.5 5 9.8 9. 8 9. 9.3 16.2 16. 2 9. 9.1 1 12 8. 8.7 7 14. 14.9 9 20 7. 7.9 9 5.1 4.7 4.9 10 4.8 4.8 15 8 6 10 13.5 13.7 12.6 11.4 10.1 4 5 2 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Net special commission income CAGR CAGR Fee and other income Net Special Commission Margin (%) Ne Cost to Income Ratio (%) Co Re Returns (%) 0 0 8.0% 20.1% 20.0% 1 0 19.2% 7.0% 0 3.48% 0 3.35% 17.8% 1 17.4% 6.0% 3.04% 39.0% 39.0% 2.99% 2.91% 37.4% 37.7% 0 35.2% 0 0 5.0% 0 0 0 4.0% 0 2.2% 2.2% 2.2% 0 2.1% 2.1% 3.0% 0 0 0 2.0% 0 0 0 1.0% 0 ROE common shares (%) ROA (%) 0 0 0.0% 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 NCB Investor Relations FY 2017 Investor Presentation 9