National Commercial Bank Investor Presentation FY 2018 Results NCB - - PowerPoint PPT Presentation

SLIDE 1

NCB Investor Relations FY 2018 Investor Presentation 1

National Commercial Bank Investor Presentation FY 2018 Results

SLIDE 2

NCB Investor Relations FY 2018 Investor Presentation 2

Investor Presentation

Contents

03 10 17 27 49 56 NCB Group Profile KSA Economic Outlook Strategy Overview Financial Results Highlights Segmental Review Additional Information 35 Financial Results Details

SLIDE 3

NCB Investor Relations FY 2018 Investor Presentation 3

NCB Group Profile FY 2018 Results National Commercial Bank

SLIDE 4

NCB Investor Relations FY 2018 Investor Presentation 4

NCB is the leading banking group in Saudi Arabia (1)

Established in 1953; IPO in 2014

NCB Snapshot (FY 2018)

Jeddah HQ

7mn Clients

13, 3,05 058

Employees* SAR AR

45 453bn

Assets SAR AR

319 319bn

Deposits SAR AR

14 144bn

Market Cap

Who hole lesale le b branch h in B Bahr hrain Offices: Si Singapor

• re, Se

Seou

• ul, Sh

Shanghai Subs bsidi diary ry in T n Turk rkey: y: Türk rkiye ye Fina nans ns Katılım B Bank nkası Subs bsidi diary ry in K n KSA: NCB CB Ca Capi pital

*Includes Alahli Esnad (1,520 employees) - fully owned subsidiary engaged in recruitment services within KSA

SLIDE 5

NCB Investor Relations FY 2018 Investor Presentation 5

NCB is the leading banking group in Saudi Arabia (2)

NCB has a strong market and financial position

459 356 228 226 189 50 100 150 200 250 300 350 400 450 500 NCB Rajhi Samba Riyad BSF

As Assets (S (SARb ARbn)

268 234 146 124 115 50 100 150 200 250 300 NCB Rajhi Riyad BSF Samba

Financing ( (SARbn)

325 289 170 159 147 50 100 150 200 250 300 350 NCB Rajhi Samba Riyad BSF

De Deposits (S (SARb ARbn)

Mar arket P Pos

• sition
• n

by by KSA SA

Overall banking Assets #1 Corporate banking Financing #1 Retail banking Financing #2 Treasury Investments #1 Asset Management AUMs #1 Brokerage Value Traded #3

Finan ancial al P Pos

• sition
• n

KSA SA GC GCC

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

SLIDE 6

NCB Investor Relations FY 2018 Investor Presentation 6

NCB has a well-diversified business model

Total operating income contribution

Capital Markets

NCB Capital Largest Asset Manager in KSA Largest Shariah-compliant Asset Manager worldwide Top 3 Broker 22 locations 281 Employees

16.7bn

88%

NCB

401 branches, 3,661 ATMs 150 Remittance centers 7,596 Employees 97% Saudization 100% CEO DRs are Saudi

8.9bn

47%

3.9bn

21%

3.9bn

20%

RETAIL CORPORATE TREASURY

1.5bn

8%

720mn

4% International

Türkiye Finans Katılım Bankası (TFKB) 306 branches, 610 ATMs 3,661 employees

Notes: KSA based recruitment services firm Alahli Esnad (fully owned subsidiary) employs 1,520 persons Operating Income as of FY 2108

SLIDE 7

NCB Investor Relations FY 2018 Investor Presentation 7

NCB has a strong financial position

Key KPIs

CAGR CAGR

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

43 435 449 449 443 443 445 445 45 453 +1%

100 200 300 400 500 600 700 800

2014 2015 2016 2017 2018

Total As Assets (S (SARb ARbn)

47 47 56 56 60 60 64 4 66 66 +9%

20 40 60 80 100 120

2014 2015 2016 2017 2018

Total tal E Equity ty (SARbn)

17.2% 17.2% 19.2% 20.0% 20.6% 15.1% 16.9% 17.7% 18.5% 14.7% 13.5% 15.3% 15.7% 16.6%

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

2014 2015 2016 2017 2018

Cap apital al R Rati atios ( (%)

TC ratio T1 ratio CET1 ratio

152.3% 172.5% 177.3% 176.0% 66.3% 78.1% 80.3% 80.7% 83.3%

1 1 1 1 1 2 2 2

2014 2015 2016 2017 2018

Liq iquid idit ity Ratio ios ( (%)

Liquidity coverage ratio (LCR) Financing to customers' deposit ratio

SLIDE 8

NCB Investor Relations FY 2018 Investor Presentation 8

NCB has a strong performance track record

Key KPIs

CAGR CAGR

11.4 12.6 13.5 13.7 14.4 4.8 4.9 5.1 4.7 4.6 16.2 6.2 17.5 5 18.6 .6 18.3 .3 18.9 .9 +4%

5 10 15 20 25 30 35

2014 2015 2016 2017 2018

Total tal O Operati rating In Income me (SARbn)

Net special commission income Fee and other income

8. 8.7 9.1 9.1 9.3 9.3 9.8 9.8 10.7 0.7 +5%

2 4 6 8 10 12 14 16 18

2014 2015 2016 2017 2018

Net In Income me Attri ttribute ted T To Equity ty Ho Holders rs ( (SARbn)

2.91% 3.04% 3.35% 3.48% 3.61%

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

2014 2015 2016 2017 2018

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

39.0% 37.4% 37.7% 35.0% 34.1%

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

2014 2015 2016 2017 2018

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

20.1% 19.2% 17.8% 17.4% 18.1% 2.2% 2.1% 2.1% 2.2% 2.4%

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

2014 2015 2016 2017 2018

Ret eturns ( (%) %)

ROE common shares (%) ROA (%)

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NCB Investor Relations FY 2018 Investor Presentation 9

NCB Group listed on Tadawul in November 2014

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

MSCI CI Sau audi A Arab rabia Index ex

Floa

• at Adj. M

Mcap (U p (USDb) Weigh ghting ng (%) %)

SABIC 23.23 17.42 Al Rajhi Bank 18.57 13.93 Nat ational al Co Commercial al Ban Bank 15 15.31 11. 11.48 Saudi Telecom (STC) 9.79 7.34 Samba Financial Group 8.2 6.15 Rati atings

LT LT ST ST Outlook

• ok

Nat ational al Co Commercial al Ban Bank S&P BBB+ A-2 Stable Fitch A- F1 Stable Moody’s* A1 P-1 Stable Capital Intelligence A+ A1 Stable Government of Saudi di Arabia bia S&P A- Stable Fitch A+ Stable Moody’s A1 Stable Capital Intelligence A+ Stable

*Moody’s rating is unsolicited MSCI, 31 December 2018

Share hare parame arameters rs

31 31 Dec c 20 2018

Closing Price (SAR) 47.85 52 week range (SAR) 37-49 Free Float 35.4% Shares issued (mn) 3,000 Tangible Book Value (SARmn) 57.737 Tangible BVPS 19.25 P/TBV Ratio 2.5x P/E Ratio (FY 2018 earnings) 13.91x Div Yield (FY 2018 dividends) 4.39% 3m Avg Daily Volume (shares) 1,.85.721

Trading commenced 12/11/2014. Day 1 at SAR 33

5 10 15 20 25 30 35 40 45 50 55

Nov-14 Aug-15 May-16 Feb-17 Nov-17 Aug-18

Share hare p pri rice p perf rforman rmance since IP IPO (SAR) (Ad (Adj p price)

Dec–18

SLIDE 10

NCB Investor Relations FY 2018 Investor Presentation

National Commercial Bank KSA Economic Outlook FY 2018 Results

SLIDE 11

NCB Investor Relations FY 2018 Investor Presentation 11

Vision 2030

Saudi Arabia continues to drive economic growth through it’s comprehensive Vision 2030 program

A T Thriv ivin ing E g Economy An Ambit bitio ious Natio ion A Vibr Vibrant Socie iety Pilla llars Vis Visio ion R Realiz izatio ion Pro rogra rams

• National Transformation Program
• Fiscal Balance Program
• PIF Program
• Financial Sector Development Program
• Privatization Program
• Quality of Life Program
• The Housing Program
• Enriching the Hajj and Umrah Experience
• Strategic Partnerships Program
• National Industrial Development and Logistics Program
• Saudi Character Enrichment Program
• National Companies Promotion Program
• Private sector contribution to GDP to reach 65%
• Balancing the budget by 2023
• Public debt to GDP to remain below 30%
• Raise Saudi home ownership to 60% by 2020
• SME Contribution to GDP targeted to reach 23% by 2020
• Increase financial sector assets to SAR6.3 trillion by 2020
• Foreign Direct Investment to reach 1.46% of GDP by 2020 (~SAR45 billion)

Key ey Miles estones es Toward rds 20 2030

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NCB Investor Relations FY 2018 Investor Presentation 12

NCB is aligned with Government priorities

NCB is a key contributor to economic transformation and the Financial Sector Development Program (FSDP) objectives

NCB lev evera erages es competit itiv iveness a and d scale to d del eliver er value t e to i its stakeh eholders ers and support rt the n natio ional age genda da Vis Visio ion 203 030 0 Obj Objectiv ives Di Directl tly R Relate ted to to th the FS FSDP DP Enabl blin ing g fin inancia ial insti titu tuti tions to to support rt pri rivate e sec ector g r gro rowth Dev evel eloping an ad advan anced c cap apital al mark rket et Promotin ing g and d enabl blin ing f g fin inancia ial plannin ing

• Leading lender for KSA companies with a 15%

Corporate market share (3Q 2018) and a portfolio of SAR 131bn;

• A leader in the SME segment, working with over

130,000 SMEs across KSA

• Provided home financing for 34,000 Saudi families

with a portfolio of SAR 23.5bn

• Primary Dealer in local government securities with a

SAR 55bn KSA Government Bond investment portfolio

• Trusted partner and lead advisor in Capital Markets

and M&A Activities (KSA Government, ARAMCO, Ma’aden)

• Largest 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

SLIDE 13

NCB Investor Relations FY 2018 Investor Presentation 13

Record Saudi Budget in 2019

Fiscal expansionary policy to underpin economic growth

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

• 100

00

• 389

89

• 31

311

• 238

38

• 136

36

• 131

31

• 3.5%
• 15.8% -12.9%
• 9.2%
• 4.6%
• 4.2%
• 90.0%
• 80.0%
• 70.0%
• 60.0%
• 50.0%
• 40.0%
• 30.0%
• 20.0%
• 10.0%

0.0% (900) (700) (500) (300) (100) 100 300

2014 2015 2016 2017 2018P 2019F

Fiscal al B Bal alan ance

Fiscal Balance Fiscal Balance as % of GDP

142 247 260 305 382 70 184 255 296 44 44 142 42 31 317 443 443 56 560 678 78 1.6 .6% 5. 5.8% 13.1 3.1% 17. 7.2% 19.1 9.1% 21 21.7%

• 8.0%
• 3.0%

2.0% 7.0% 12.0% 17.0% 22.0%

200 400 600 800 1,000

2014 2015 2016 2017 2018P 2019F

Gover ernmen ent D Deb ebt (SARbn)

Domestic International Debt to GDP Ratio (%)

725 610 529 490 490

43 60 39 39 34

768 8 67 670 56 568 8 52 529 524 4

100 200 300 400 500 600 700 800 900

2014 2015 2016 2017 2018

Forei eign R Res eser erves es ( (USDbn)

SAMA Banks

97 7 50 50 41 41 52 52 70 70 65 5

20 40 60 80 100 120

2014 2015 2016 2017 2018 2019F

Aver erage O e Oil Price ( e (USD)

Average Oil Price (USD)

913 446 334 436 607 662 131 169 186 256 288 313 1,044 44 61 616 6 51 519 692 692 89 895 5 975 5

200 400 600 800 1,000 1,200

2014 2015 2016 2017 2018P 2019F

Gover ernmen ent R Rev even enue e (SARbn)

Oil Revenues Non-oil Revenues

370 264 134 208 205 246 740 714 696 722 825 860 1,110 978 8 830 30 930 930 1,030 030 1,106 06

200 400 600 800 1,000 1,200

2014 2015 2016 2017 2018P 2019F

Gover ernmen ent E Expen enditure ( e (SARbn)

Capex Current Expenditure (Opex)

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NCB Investor Relations FY 2018 Investor Presentation 14

Economic growth momentum continues

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

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

9.7 9.7 10.2 0.2 10.5 0.5 10.0 0.0 10.3 0.3 10.4 0.4 97 97.2 .2 50.2 0.2 40.9 0.9 52 52.4 70.1 0.1 65 65.0 .0

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0

5 10 15 20 25

2014 2015 2016 2017 2018P 2019F

Oil P l Prod

• duc

uction

• n

Oil Production Oil Price

11.9% 2.5% 0.8% 0.2% 2.8% 4.5%

(0)

2014 2015 2016 2017 2018 2019F

Monetary ary Supply g gro rowth th

(M3) Monetary Supply growth

2.1% 1.3% 0.6% 0.7% 0.6% 0.5% 0.1% 0.1% 0.5% 2.7 .7% 1.8 .8% 0.1 0.1% 0.7 0.7% 1.2 .2%

• 2.0%
• 1.0%

0.0% 1.0% 2.0% 3.0%

2014 2015 2016 2017 2018P

Rea eal n non-oi

• il G

l GDP

Non-oil Private Non-oil Public Real non-oil GDP

• 2.3

.3%

• 14.

4.8%

• 12.

2.9%

• 9.2

9.2%

• 4.

4.6%

• 4.

4.2% 9.7 9.7%

• 8.

8.7%

• 3.7

3.7% 2.2 .2% 10.6 0.6% 10.5 0.5%

• 25.0%
• 15.0%
• 5.0%

5.0% 15.0% 25.0%

2014 2015 2016 2017 2018P 2019F

Twin Ba Balances es ( (%) %)

Budget Balance / GDP Current Account Balance / GDP 0.9% 2.3% 1.6%

• 1.4%

1.2% 2.7% 1.8% 0.1% 0.7% 1.2%

• 0.1%
• 0.2%

3.7 3.7% 4. 4.1% 1.7 .7%

• 0.7

0.7% 2.2 .2% 2.6 .6%

• 9.0%
• 7.0%
• 5.0%
• 3.0%
• 1.0%

1.0% 3.0% 5.0%

(0) (0)

2014 2015 2016 2017 2018P 2019F

Re Real G GDP DP

Oil Sector Non-oil Sector Import Duties Real GDP

2.2% 1.3% 2.0%

• 0.9%

2.5% 2.3%

(0) (0) (0)

2014 2015 2016 2017 2018 2019F

Infla flation

• n, %

%

General Index…

SLIDE 15

NCB Investor Relations FY 2018 Investor Presentation 15

Saudi banking sector growth capacity

Lending capacity enables KSA banks to capture opportunities as fiscal policy offsets monetary drag from rising interest rates

Source: Thomson Reuters, SAMA, Banks’ Annual Reports

0.9 0.9% 2.98 .98% 0.3 0.3% 2.78 78%

2014 2015 2016 2017 2018

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

3M SAR SAIBOR 3M USD LIBOR

234 4 26 262 2 280 80 29 291 301 301 8% 11% 12% 11% 10%

• 3%
• 1%

1% 3% 5% 7% 9% 11% 13%

100 200 300 400 500 600 700

2014 2015 2016 2017 2018F

Re Retail Mo Mortgages (S (SARb ARbn)

Retail Mortgage Size Mortgages to GDP, %

1,5 ,576 76 1,605 605 1,6 ,617 7 1,61 619 9 1,661 661 12.4% 1.9% 0.8% 0.1% 2.6%

• 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

Ba Bank D k Dep eposits ( (SARbn)

Deposits Growth Rate (YoY%)

75% 80% 81% 80% 77%

1 1 1 1 1 1 1 1 1 1 1 1

2014 2015 2016 2017 2018

Loan ans to to Deposits ts R Rati atio ( (%)

803 903 912 888 903 402 420 440 452 476 1,251 1,362 1,400 1,387 1,426 11.6% 8.9% 2.9%

• 1.0%

2.8%

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

0.0% 5.0% 10.0% 15.0% 500 1000 1500 2000 2500 3000 3500

2014 2015 2016 2017 2018F

Ba Bank L k Len ending (SARbn)

Corporate Retail Growth Rate (YoY%)

SLIDE 16

NCB Investor Relations FY 2018 Investor Presentation 16

Saudi banking sector resilience

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

Source: Thomson Reuters, SAMA, Banks’ Annual Reports

16.2% 16.2% 17.5% 18.3% 18.1%

2014 2015 2016 2017 9M 2018

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

1.12% 1.13% 1.24% 1.45% 1.63% 183% 172% 178% 162% 185%

2014 2015 2016 2017 9M 2018

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

NPL Ratio NPL Coverage Ratio

• 75.

5.8 80.0 0.0 83.1 3.1 86.6 6.6 91 91.3 .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%)

SLIDE 17

NCB Investor Relations FY 2018 Investor Presentation

National Commercial Bank Strategy Overview FY 2018 Results

SLIDE 18

NCB Investor Relations FY 2018 Investor Presentation

Grew Corporate loan portfolio by 9%

18

2018 Strategy update and 12M highlights

NCB delivered strong performance in 2018 in line with its strategy

Grow Residential Finance Current Account and Capital Base Focus Position Corporate Banking for growth

12 12M U Update ates

Grew mortgage portfolio by 19% Grew Current Accounts by 7%

201 018 Strate trategic P Pri rioriti ties

Continued to improve Branch FTE density; newest branches at an average of 6 FTEs

Lean D Dis istribu ibutio ion

Online and Mobile transactions increased 44%; 105 Self-Service Kiosks installed in network; digital sales comprised 29% of total retail sales

Digit igitiz izatio ion

Maintained strong liquidity and capitalization levels; improved branch and employee productivity

TF TFKB KB

Focused on recurring revenue; 11% increase in NSCI

Trea reasury ry

Net Income growth driven by AUM increase and cost discipline

NCBC CBC Additional al Strat rategy Hi Highl hlights hts 12 12M U Update ates

18

SLIDE 19

NCB Investor Relations FY 2018 Investor Presentation 19

NCB’s 2019 Strategy Framework

Sustaining Leadership

Increase returns in Corporate Banking Sustain Treasury revenues & diversify funding Expand market share in Retail Banking Strategic Priorities Focus Areas

• Vision 2030 Targeted Sectors
• Transaction banking
• Credit Lifecycle Management
• Investment returns
• Cross sell & liability products
• Continental hubs
• Current accounts
• Mortgage / REDF
• Credit Card

Guiding Principles Cost efficiency Time to market Customer service Strategic Enablers Lean Distribution Digitization Operational excellence Grow value contribution of subsidiaries

• NCBC: AUMs and GRE related

business

• TFKB: Productivity

SLIDE 20

NCB Investor Relations FY 2018 Investor Presentation

93 93 99 99 19.5 9.5% 20.8 0.8% +7%

10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

20 40 60 80 100 120 140 160 180

FY 17 FY 18

Ret etail Financing & & Advances es, n net et (S (SARb ARbn)

Performing Market Share (%)

Retail Banking

We are positioning the retail business to expand market share

Strategic F Focus cus Areas

• Grow core deposits
• Grow Lending Market Share; focus on mortgages and Credit

Card

• Expand branch network with lean formats enabled by digital

migration

• Continue to enhance customer service across all channels

20

8. 8.1 8.9 .9 +10%

2 4 6 8 10 12 14 16

FY 17 FY 18

Oper erating I Income ( e (SARbn)

3.9 3.9 4.6 .6 +18%

1 2 3 4 5 6 7 8

FY 17 FY 18

Net Net Income ( e (SARbn)

(9M)

SLIDE 21

NCB Investor Relations FY 2018 Investor Presentation 21

Corporate Banking

Grow selectively and increase risk-adjusted returns

Strategic F Focus cus Areas

• Grow lending in V2030 target sectors
• Increase cross sell focus to capture full value of relationships
• Grow Kafalah-based lending
• Expand collections capabilities and strengthen credit lifecycle

management

• Enhance client servicing model via credit process digitization

120 20 131 +9%

50 100 150 200

FY 17 FY 18

Corporate e Financing & & A Advances es, net et (S (SARb ARbn)

4. 4.1 3.9 3.9

• 5%

1 2 3 4 5 6 7 8

FY 17 FY 18

Total tal O Operati rating In Income me (SARbn)

2.0 .0 2. 2.2 2 +13%

1 2 3 4 5

FY 17 FY 18

Net Net Income ( e (SARbn)

SLIDE 22

NCB Investor Relations FY 2018 Investor Presentation

91 91% 91 91%

• 0%

1 1 1 1 1 2 2 2

FY 17 FY 18

Sau audi G Govern rnme ment an and In Investme ment Grad rade In Investme tments ts as as % % o

• f T

Total tal

22

Treasury

Broaden and deepen liquidity access while sustaining revenues

Strategic F Focus cus Areas

• Increase recurring revenues
• Optimize investment portfolio to enhance quality, liquidity and

returns

• Launch continental hubs to expand coverage (Singapore, UK)
• Introduce innovative Shariah compliant products to diversify

liquidity sources and enhance cross sell

2.4 4 2.7 7 +11%

1 2 3 4 5 6

FY 17 FY 18

NSCI (S (SARb ARbn)

3.9 3.9 3.9 3.9

• 1%

1 2 3 4 5 6 7 8 9

FY 17 FY 18

Total tal O Operati rating In Income me (SARbn)

SLIDE 23

NCB Investor Relations FY 2018 Investor Presentation 23

Lean distribution

We will continue to expand with lean distribution in Saudi Arabia by adopting a smaller branch format and implementing extensive digitization

Strategic ic Im Impe perativ ives

• Continue to expand the network in strategic locations to

acquire new customers and expand market share

• Expand with smaller branch format with sales and advisory

focus

• Digitize branch experience and implement assisted self service

technologies

• Optimize the cost of branch network

7,9 7,991 7,5 7,596

• 5%

2,000 4,000 6,000 8,000 10,000 12,000 14,000

FY 17 FY 18

Ba Bank k Hea eadcount ( (NC NCB B em employees ees)

10.4 0.4 9.9 9.9

• 5%

5 10 15 20

FY 17 FY 18

FTE TE / / br branch

71 71% 71 71% +0%

1 1 1 1 1

FY 17 FY 18

Fro ront / t / Bac ack Office R Rat atio (%) %)

2,01 019 9 2,196 96 +9%

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

FY 17 FY 18

Operati rating In Income me / / FTE (S (SARm ARmn)

SLIDE 24

NCB Investor Relations FY 2018 Investor Presentation 24

Digitization

Continue to migrate to digital, drive up digital sales and improve operational excellence to deliver superior customer experiences

Strategic F Focus cus Areas

• Mobile first
• Expand subscription base and grow usage
• Leverage advanced data analytics and grow digital sales
• Implement “digital branch” and improve customer journeys

through agile digitization

• Automate back office processes including robotics process

automation

39 39% 50 50%

1 1 1 1 1 1

FY 17 FY 18

Digital tal P Penetrat ration

60.8% 53.2% 9.6% 7.6% 3.0% 2.6% 26.6% 36.6%

1 1 1 1

FY 17 FY 18

Finan ancial al T Tran ransac acti tion C Chan hannel Migrati ration

ATM Phone Banking Branch Online/Mobile

12% 29 29%

FY 17 FY 18

Digital tal S Sal ales as as a % a % o

• f T

Total tal Retai tail Sales es

SLIDE 25

NCB Investor Relations FY 2018 Investor Presentation

21 21.9% 21 21.3%

• 0.6ppt

1

9M 17 9M 18

NCBC S Share hare of S Sector r Net Net Income ( e (%) %)

198 8 183 83 11.8% 10.5 0.5%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

50 100 150 200 250 300 350 400 450

FY 17 FY 18

NCBC Tr Trade ded V d Value (SARbn) & M Mark arket S t Share hare (%) %)

NCBC Traded Value Market Share (%)

25

NCB Capital

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

Strategic F Focus cus Areas

• Sustain and grow market leadership in Asset Management

through fundraising and product innovation

• Grow recurring revenues by increasing AUMs
• Grow share of brokerage revenue pool
• Continue to enhance efficiency and productivity

836 36 87 871 7,2 7,226 7,8 7,827 7

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

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

FY 17 FY 18

Tad adaw awul T Trad raded Val alue (S (SARb ARbn) ) & T TAS ASI I Index

Tadawul Traded Value TASI Index

123 23 144 44 +17%

50 100 150 200 250 300 350

FY 17 FY 18

NC NCBC BC A Asset ets under er Managem emen ent ( (SARbn)

SLIDE 26

NCB Investor Relations FY 2018 Investor Presentation

39 39 46 46 +20%

10 20 30 40 50 60 70 80 90

FY 17 FY 18

Total A Asse ssets s (TRYbn) n)

1,50 508 8 1,839 39 +22%

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

FY 17 FY 18

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

37 370 445 445 +20%

200 400 600 800 1,000

FY 17 FY 18

Net Net Income ( e (TRYmn)

26

Türkiye Finans Katılım Bankası

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

Strategic F Focus cus Areas s

• Resume branch expansion and expand digital channels to

drive customer acquisition

• Strengthen underwriting and improve collections
• Increase automation and drive capacity optimization
• Instill NCB’s principles (Customer excellence, robust

governance, best-in-class technology)

SLIDE 27

NCB Investor Relations FY 2018 Investor Presentation

National Commercial Bank Financial Results Highlights FY 2018 Results

SLIDE 28

NCB Investor Relations FY 2018 Investor Presentation 28

Key messages

FY 2018 Results

• 2% increase in total assets
• 6% financing growth
• 3% investments growth
• 3% growth in customers’ deposits
• CASA at 80% of deposits
• 9% growth in 2018 net income, 5% growth in NSCI
• 3% Fee and other income decline on lower capital gains
• Stable operating expenses
• Impairments improved by 17%, goodwill written – off

during Q4 2018

• CoR at 52bps
• Group NPL ratio at 1.9% and NPL coverage at 142%
• Capital: CET1 of 16.6% and T1 ratio of 18.5%; Leverage

Ratio 13.5%

• Liquidity; LTD ratio 83%, Average Q4 LCR 176%

Fina nanc ncing ng (SA SARbn) De Deposi sits ( s (SA SARbn) Net Inc Income Attributed t to Equ quity H y Holde ders rs Move

• vement (

(SA SARbn) NPL PL & & CoR

• R (%)

%) CE CET1 and nd LTD ( (%) %)

249 49 265 65 +6%

100 200 300 400 500 600

4Q 17 4Q 18 309 309 31 319 +3%

100 200 300 400 500 600 700 800

4Q 17 4Q 18 1.9 .9% 1.9 .9% 0.7 0.7% 0.5 0.5%

• 0.1%

0.1% 0.3% 0.5% 0.7% 0.9% 1.1% 1.3% 1.5%

4Q 17 4Q 18

Group NPL ratio Group CoR YTD

15.7 .7% 16.6 6.6% 81 81% 83 83%

20% 30% 40% 50% 60% 70% 80% 90%

4Q 17 4Q 18

CET1 LTD

9.8 9.80 0.7 0.71 (0.1 0.13) (0.02 0.02) 0.33 0.33 (0.03 0.03) 10.67 0.67

1 2 3 4 5 6

FY 17 NSCI Non-NSCI Expenses Impair- ments Other FY 18

Balance Sheet Income Statement Asset Quality, Capital & Liquidity

SLIDE 29

NCB Investor Relations FY 2018 Investor Presentation 29

Income Statement

Pro rofitab tability ty T Tre rends

SAR (mn) 4Q Q 20 2018 3Q Q 20 2018 4Q Q 20 2017 YoY % c % change nge FY Y 20 2018 FY Y 20 2017 YoY % c % change nge Net special commission income 3,741 3,637 3,375 +11% 14,370 13,661 +5% Fee and other income 1,015 1,094 1,140

• 11%

4,557 4,684

• 3%

Total o

• pera

rating ng inc ncome 4,75 ,756 4,73 ,732 4, 4,516 +5% 18,927 27 18,345 45 +3% Operating expenses (1,475) (1,606) (1,632)

• 10%

(6,446) (6,424) +0% Total impairment charge (601) (616) (357) +68% (1,635) (1,969)

• 17%

Inc Income from o

• pera

rations ns, ne net 2,680 80 2, 2,510 2, 2,526 26 +6% 10,846 46 9, 9,95 953 +9% Net inc ncome a attri ribu buted t d to equ quity h y holde ders rs 2,647 47 2,45 454 2,556 556 +4% 10, 0,667 667 9, 9,802 02 +9%

2018 Net income growth from higher NSCI and lower impairments

2,445 2,908 2,496 2,388 2,763

111 78 83 65

2,556 556 2,987 87 2,5 ,579 79 2,45 454 2,647 47 +4%

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

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

Net In Income me Attri ttribute ted to to Equity Ho Holders rs ( (SARmn mn)

International net income Domestic net income

4,125 4,407 4,234 4,331 4,429

390 372 427 401 327

4, 4,516 4,779 ,779 4,661 661 4,73 ,732 4,75 ,756 +5%

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

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

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

International Operating Income Domestic Operating Income

SLIDE 30

NCB Investor Relations FY 2018 Investor Presentation

Domestic Deposits 94% International Deposits 6%

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

309 31 319

100 200 300 400 500

4Q 17 4Q 18

30

Balance Sheet

Ba Balance e Sheet eet T Tren ends

SAR (mn) 4Q Q 20 2018 3Q Q 20 2018 4Q Q 20 2017 YoY % c % change nge Investments, net 118,090 116,504 114,578 +3% Financing and Advances, net 265,317 268,245 249,234 +6% Total al as assets 453, 3,390 390 459 59,080 80 444, 444,792 +2% Due to banks and other financial institutions 45,963 48,112 48,558

• 5%

Customers' deposits 318,699 325,461 308,942 +3% Debt securities issued 9,431 8,636 10,250

• 8%

Total l lia iabil ilit itie ies 387,72 7,721 395 395,805 05 380 80,51 516 +2% Equ quity y attri ribu butabl ble to s share reholde ders rs 57,73 7,737 55, 55,50 504 56, 6,04 041 +3% Total e equity 65 65,669 669 63,2 ,274 74 64,2 ,276 76 +2%

2% increase in total assets; excluding 20% Turkish Lira depreciation the growth would have been 5%

120 123 131 133 131 93 93 95 99 99

10 12 16 16 14 26 25 24 20 21

249 49 253 53 266 66 268 68 265 65 +6%

50 100 150 200 250 300 350 400 450 500

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

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

Corporate Consumer and credit card Others International

238 237 251 258 255 58 61 53 55 50

13 11 13 12 14

309 309 309 309 31 318 32 325 31 319 +3%

100 200 300 400 500

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

Custo tome mers rs' D ' Deposits (SARbn)

CASA Time Others

SLIDE 31

NCB Investor Relations FY 2018 Investor Presentation

Retail 49% Corporate 24% Treasury 17% Capital Market 3% International 7%

Total tal O Operati rating In Income me (SARbn)

Retail 47% Corporate 21% Treasury 20% Capital Market 4% International 8%

Total tal O Operati rating In Income me (SARbn)

31

Segmental Information (1/3)

FY 2018 Total operating income growth mainly from retail and Capital Market segment

18,345 45 777 777 (205 05) (23 23) 84 84 (51 51) 18,9 ,927 7

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

FY 17 Retail Corporate Treasury Capital Market International FY 18

FY FY 18 18 Total tal Operati rating In Income me M Moveme ment ( t (SARmn mn)

4, 4,516 157 57 144 44 15 (12) (63 63) 4,75 ,756

200 400 600 800 1,000 1,200

4Q 17 Retail Corporate Treasury Capital Market International 4Q 18

4Q Q 18 18 Total tal O Operati rating In Income me M Moveme ment (SARmn mn)

18.3 18. 8.9

5 10 15 20 25

FY 17 FY 18

4.5 4. 4.8

1 2 3 4 5

4Q 17 4Q 18

SLIDE 32

NCB Investor Relations FY 2018 Investor Presentation

Retail 42% Corporate 26% Treasury 25% Capital Market 3% International

• 4%

Net In Income me Attri ttribute ted to to Equity Ho Holders rs ( (SARbn)

2.6 2.6

1 1 2 2 3 3 4

4Q 17 4Q 18

Retail 43% Corporate 21% Treasury 31% Capital Market 4% International 1%

Net In Income me Attri ttribute ted to to Equity Ho Holders rs ( (SARbn)

32

Segmental Information (2/3)

FY 2018 Net income growth driven by all segments apart from International due to Turkish Lira depreciation and goodwill written - off

9, 9,802 02 71 713 264 64 3 69 69 (183 83) 10, 0,667 667

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

FY 17 Retail Corporate Treasury Capital Market International FY 18

FY FY 18 18 Net In Income me A Att ttri ribute ted to to E Equity ty Ho Holders rs Movem emen ent ( (SARmn)

2,556 556 42 42 191 91 99 99 (14) (227 227) 2,6 ,647 7

100 200 300 400 500 600 700 800 900

4Q 17 Retail Corporate Treasury Capital Market International 4Q 18

4Q Q 18 18 Net In Income me Attri ttribute ted to to E Equity Ho Holders rs Movem emen ent ( (SARmn)

9.8 10.7

2 4 6 8 10 12 14 16 18

FY 17 FY 18

SLIDE 33

NCB Investor Relations FY 2018 Investor Presentation 33

Segmental Information (3/3)

FY 2018 financing growth mainly driven by Corporate and Retail segments

117 124 126 126 143 138 163 160 155

38 31 33

445 445 45 459 45 453 +2%

100 200 300 400 500 600 700 800

4Q 17 3Q 18 4Q 18

Total As Assets (S (SARb ARbn)

Retail Corporate Treasury Capital Market International

93 99 99 120 133 131

26 20 21 10 16 14

249 49 268 68 265 65 +6%

100 200 300 400 500

4Q 17 3Q 18 4Q 18

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

Consumer and credit card Corporate International Other

Ma Manageme ment C Comme mmentary

• FY 2018 Total assets increased by 2% due to higher Corporate

(+9%) and Retail (+7%) financing and investments (+3%).

• Customers’ deposits increased by 3% from the Retail and Corporate

segments.

• Deposits mix improved with CASA balances at 80% of total deposits

at 4Q 2018 compared with 77% at 4Q 2017.

237 247 243 42 52 48

8 8 9 22 18 19

309 309 32 325 31 319 +3%

100 200 300 400 500 600

4Q 17 3Q 18 4Q 18

Custo tome mers rs' D ' Deposits (SARbn)

Retail Corporate Treasury International

SLIDE 34

NCB Investor Relations FY 2018 Investor Presentation 34

Outlook

Improved macroeconomic environment expected to drive growth

• Average Arabian light oil price of

USD 65 per barrel

• Up to 2 US Fed rate hikes of

25bps in 2019

• 2019’s expansionary fiscal policy

is expected to underpin economic growth

• 20% increase in Capital

expenditure will support domestic lending

• The budget deficit projected to

improve, reaching SAR131 billion

• Real GDP growth is estimated to

reach 2.6%

• Inflation to ease to 2.3% as

energy price subsidies remain unchanged

201 019 9 Macro croeco conomic c Outloo

• ok

Financing growth 5% to 8% 6% 4% % to

• 6%

FY Y 201 018 Ta Target FY Y 201 018 Rep eported ed FY Y 201 019 Gui uidance ce

Tier 1 CAR 16% to 18% 18.5% 16 16% t % to 18 18% Group Cost of Risk 0.6% to 0.8% 0.52% 0. 0.6% t % to 0. 0.8% Balance Sheet Profitability Capitalization and Asset Quality NSCI margin 3.53% - 3.63% 3.61% 3.65 65% % - 3.69 69% Cost to income Below 35% 34.1% Below low 34%

SLIDE 35

NCB Investor Relations FY 2018 Investor Presentation

National Commercial Bank Financial Results Details FY 2018 Results

SLIDE 36

NCB Investor Relations FY 2018 Investor Presentation 36

Operating Income Highlights

Ma Manageme ment C Comme mmentary

• FY 2018 total operating income increased by 3% YoY from 5%

higher net special commission income, partially offset by the decrease in investment related income.

• International operating income decreased by 5% due to 22%

depreciation of the average Turkish Lira rate as compared with FY 2017.

• Excluding the International business, FY 2018 total operating

income was 4% higher YoY.

• 4Q 18 total operating income YoY growth of 5% driven by higher

NSCI.

Higher FY 2018 total operating income largely attributable to net special commission income

13.66 14.37 4.68 4.56 18.35 .35 18.93 .93 +3%

5 10 15 20 25 30 35

FY 17 FY 18

18.35 .35 0.7 0.72 (0.09 0.09) (0.05 0.05) 18.93 .93 17.40

1.53

16.77

1.58

2 4 6 8 10 12

FY 17 NSCI Fee and other income International NOR FY 18

FY FY 18 18 Total tal Operati rating In Income me M Moveme ment ( t (SARbn)

Domestic International Domestic International

3.38 3.64 3.74 1.14 1.09 1.02 4. 4.52 4. 4.73 4. 4.76 +5%

1 2 3 4 5 6 7 8 9 10

4Q 17 3Q 18 4Q 18

Total tal O Operati rating In Income me (SARbn)

Fee and other income Net special commission income

4. 4.52 0.33 0.33 (0.03 0.03) (0.06 0.06) 4. 4.76 4.43

0.33

4.13

0.39

1 1 2 2 3 3

4Q 17 NSCI Fee and other income International NOR 4Q 18

4Q Q 18 18 Total tal O Operati rating In Income me M Moveme ment (SARbn)

SLIDE 37

NCB Investor Relations FY 2018 Investor Presentation 37

Net special commission income trends

FY 2018 net special commission income growth of 5%, despite 19% increase in special commission expenses

Ma Manageme ment C Comme mmentary

• FY 2018 NSCI improved by 5% on higher SCI

(+8%), despite 19% increase in cost of funds due mainly to higher SAIBOR/LIBOR, while 4Q 2018 NSCI improved by 11%.

• The 4Q 2018 net special commission margin

increased by 23bps YoY to 3.64% due to improved yields (+48bps).

• Funding cost for 4Q 2018 was 26% higher YoY

mainly due to higher SAIBOR/LIBOR rates. Net Special al C Commi mmission In Income me

SAR (mn)

4Q Q 201 018 3Q Q 201 018 4Q Q 201 017 Yo YoY Y % ch chan ange FY FY 201 018 FY FY 201 017 Yo YoY Y % ch chan ange Special commission income 4,936 4,700 4,291 +15% 18,306 16,981 +8% Special commission expense (1,195) (1,063) (916) +31% (3,936) (3,320) +19% Net s t special c commission inc ncome 3, 3,741 3, 3,637 637 3, 3,37 375 +11 11% 14, 14,370 13, 3,661 661 +5% Commission yield (%) 4.81% 4.65% 4.33% +11% 4.60% 4.32% +6% Funding cost (%) 1.25% 1.14% 0.99% +26% 1.06% 0.91% +17% Net t special commission m margin ( n (%) 3.64 3.64% 3.60 3.60% 3.4 3.41% +7% 3.61 3.61% 3.4 3.48% +4%

1.69% 2.31% 2.34% 2.40% 2.81% 1.90% 2.27% 2.59% 2.72% 2.98%

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

SAI AIBOR a R and LIBOR Ra R Rates (% (%)

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

3.94% 4.06% 4.10% 4.19% 4.32% 0.51% 0.51% 0.58% 0.71% 0.74% 8.54% 8.47% 9.30% 11.07% 11.35% 5.94% 5.01% 5.10% 6.40% 7.51%

(0)

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

Commission Y Yiel eld a and F Funding C Cost ( (%) %)

Domestic Yields Domestic COF International Yields International COF

3.46% 3.59% 3.56% 3.53% 3.64% 3.41% 3.59% 3.62% 3.60% 3.64% 2.89% 3.69% 4.44% 4.66% 3.87%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00%

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

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

Domestic Group International

SLIDE 38

NCB Investor Relations FY 2018 Investor Presentation

3,205 3,282 1,156 1,166

802 514

(479) (405) 4, 4,684 4,557 557

• 3%

(500) 1,500 3,500 5,500 7,500 9,500 11,500

FY 17 FY 18

820 802 819 266 369 246

164 22 48

(110) (100) (97) 1,140 1,094 094 1,015

• 11%

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

4Q 17 3Q 18 4Q 18

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

38

Fee and other income trends

Ma Manageme ment C Comme mmentary

• Fee and other income for FY 2018 declined (-3%) YoY as 2%

growth in fee and FX income was more than offset by lower investment income.

• The higher fees from banking services in FY 2018 were mainly

driven by higher fees from investment management services, credit cards and others, partly offset by lower trade finance fees.

• 4Q 2018 fee and other income decreased 11% YoY due to (-0.2%)

lower fees from banking services, (-71%) investment-related income and (7%) lower Foreign exchange income, partly offset by lower

• ther operating expense by 12%.

Lower FY 2018 fee and other income mainly due to lower investment income partly offset by higher fee and exchange income and lower other operating expenses

Fee Income

SAR (mn)

4Q Q 201 018 3Q Q 201 018 4Q Q 201 017 Yo YoY Y % ch chan ange FY FY 201 018 FY FY 201 017 Yo YoY Y % ch chan ange Finance and lending 367 400 409

• 10%

1,483 1,537

• 4%

Trade finance 79 109 137

• 42%

447 537

• 17%

Investment management services 123 129 124

• 0%

549 435 +26% Shares brokerage 38 24 50

• 23%

161 183

• 12%

Credit cards 16 35 8 +104% 139 120 +16% Others 194 106 94 +107% 504 393 +28% Fee inc ncome from bank nking ng services, ne net 819 19 802 02 82 820

• 0%

3,2 ,282 3, 3,205 05 +2% 2,799

3, 3,205 05 92 92 (54 54) 19 (91 91) 111 3,282 82

212 2,925 281

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

FY 17 Brokerage & invmnt. Mngmnt. Finance & lending Credit cards Trade finance Other FY 18

FY FY 18 18 Driver ers o

• f Fee I

ee Income f e from Ba Banki king S Ser ervices es Movem emen ent ( (SARmn)

Domestic International

SLIDE 39

NCB Investor Relations FY 2018 Investor Presentation

3,409 3,491

771 726 654 607

1,589 1,622 6,42 424 6,446 446 +0%

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

FY 17 FY 18

830 844 829

203 183 154 153 153 144

445 426 348 1,632 632 1,606 606 1,4 ,475 75

• 10%

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

4Q 17 3Q 18 4Q 18

Oper erating E Expen enses es (SARmn)

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

39

Expense highlights

Ma Manageme ment C Comme mmentary

• FY 2018 stable operating expenses YoY, while 4Q 2018 operating

expenses decreased by 10% YoY.

• The cost to income ratio for FY 2018 was 34.1%, lower by 96bps

compared to FY 2017.

• The cost base was negatively impacted by cost of living allowances

to employees announced this year and the impact of VAT. These were partly offset by lower depreciation and productivity initiatives driven by continued digitization.

35.0% 35.0% 35.7% 35.1% 34.1% 33.1% 33.1% 34.1% 33.9% 31.6%

FY 17 1Q 18 1H 18 9M 18 FY 18

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

Group (%) Excluding International (%)

6,42 424 82 82 (45 45) (47 47) 32 32 6,446 446 5,505 942 5,557 867

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

FY 17 Employee-related Rent & premises Depreciation & amortization Other G&A FY 18

FY FY 18 18 Oper erating E Expen enses es Movem emen ent D Driver ers (SARmn)

Domestic International

Despite VAT and cost of living allowances, we maintained operating expenses in 2018

SLIDE 40

NCB Investor Relations FY 2018 Investor Presentation

Financing and Advances, net 58% Investments, net 26% Cash, bank and SAMA balances 11% Other assets, net 5%

Total As Assets Mi Mix (S (SARb ARbn)

Retail 28% Corporate 31% Treasury 34% Capital Market 0% International 7%

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

40

Asset highlights and composition

2% growth in balance sheet as a result of increase in financing and Investments.

Ma Manageme ment C Comme mmentary

• 6% Financing increase driven by 9% increase in domestic financing,

despite 19% decline in international financing impacted by 20% Turkish Lira depreciation.

• Overall financing trends were reflective of early signs of economic

recovery but muted by Turkish Lira depreciation.

• Investments increased by 3% as participation in Saudi Government

debt issuance continued.

249 268 265 115 117 118 60 55 48

21 20 22

445 445 45 459 45 453 +2%

100 200 300 400 500 600 700 800

4Q 17 3Q 18 4Q 18

Total As Assets (S (SARb ARbn)

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

445 45 453

100 200 300 400 500 600

4Q 17 4Q 18

445 45 453

100 200 300 400 500 600

4Q 17 4Q 18

SLIDE 41

NCB Investor Relations FY 2018 Investor Presentation

Consumer financing & credit cards 37% Commerce 13% Manufacturing 12% Services 10% Utilities & health 7% Building & construction 6% Others, across 6 sectors 15%

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

41

Financing and advances

6% Financing growth driven by Corporate and Consumer segments

Ma Manageme ment C Comme mmentary

• Domestically, financing grew for the Corporate Segment (+9%) and

Consumer segment (+7%).

• Growth in the Corporate segment was driven across all economic

sectors apart from Commerce.

• International financing declined 19% in 2018 due principally to the

weakened Turkish Lira.

93 99 99 120 133 131

26 20 21 10 16 14

249 49 268 68 265 65 +6%

50 100 150 200 250 300 350 400 450 500

4Q 17 3Q 18 4Q 18

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

Consumer and credit card Corporate International Other

256 273 73

50 100 150 200 250 300 350

4Q 17 4Q 18

256 56 4.9 .9 3.8 3.8 (6.9 6.9) 4.9 .9 6.5 6.5 0.1 0.1 3.3 3.3 273 73

5 10 15 20 25 30 35

4Q 17 Building & construction Banking & financial Services Consumer financing & credit cards Transport & comms Commerce Other 4Q 18

Movem emen ent Financing, g gross b by E Economic Sec ector (SARbn)

SLIDE 42

NCB Investor Relations FY 2018 Investor Presentation 42

Financing and advances credit quality (1/2)

Rise in Corporate NPLs and impairment allowances, while Consumer remains stable

2.80 2.80 2.94 3.51 3.40

0.57 0.52 0.53 0.51 0.56

1.40 1.40 1.26 1.03 1.23 4. 4.77 4. 4.72 4. 4.75 5.06 .06 5. 5.25 +10%

2 4 6 8 10 12

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

NPL (S (SARb ARbn)

Corporate Consumer and credit card International Others

4.15 4.79 4.87 5.21 4.63 1.34 1.50 1.48 1.53 1.55 1.26 1.38 1.21 0.96 1.11 6.8 6.80 7. 7.77 77 7.66 .66 7. 7.79 79 7.43 43 +9%

2 4 6 8 10 12 14

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

Imp Impai airme rment A Allowan ances (SARbn)

Corporate Consumer and credit card International Others 0.14 (0.04) 0.12 0.49 0.16 0.03 (0.04) 0.12 0.03 0.18 0.08 0.06 0.11 0.14 0.05 (0.04)

0.2 0.29 (0.01 0.01) 0.34 0.34 0.61 0.61 0.4 0.40 +41%

(0) 1 1 1 1

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

Imp Impai airme rment C Charg harge (SARbn)

Corporate Consumer and credit card International Others

4. 4.77 0.2 0.27 0.1 0.17 (0.01 0.01) 0.32 0.32 0.03 0.03 (0.03 0.03) (0.2 0.28) 5. 5.25

1 1 1 1 1 1

4Q 17 Building & construction Utilities & health Manufacturing Transport & comms Services Consumer financing & credit cards Other 4Q 18

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

SLIDE 43

NCB Investor Relations FY 2018 Investor Presentation 43

Financing and advances credit quality (2/2)

Slightly higher NPL ratio at YE 2018, but NPL coverage remained stable

Ma Manageme ment C Comme mmentary

• NPL ratio slightly higher in 4Q 2018 vs 4Q 2017.
• NPL coverage was comfortable at 142% as at 4Q 2018.
• FY 18 cost of risk lower in part due to the IFRS9 adoption

adjustments.

1.5% 1.4% 1.4% 1.6% 1.6% 5.1% 5.3% 5.1% 4.8% 5.5% 1.9% 1.8% 1.7% 1.8% 1.9%

(0)

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

NP NPL Ratios ( (%) %)

Domestic International Group NPL ratio

164% 192% 185% 170% 157% 90% 99% 96% 93% 90% 143% 165% 161% 154% 142%

1 1 1 1 1 2 2 2 2

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

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

Domestic International Group NPL coverage ratio

0.7%

• 0.1%

0.1% 0.3% 0.4% 1.1% 1.0% 1.4% 2.0% 1.6% 0.7% 0.0% 0.3% 0.5% 0.5%

(0) (0)

FY 17 1Q 18 1H 18 9M 18 FY 18

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

Domestic International Group CoR ratio

SLIDE 44

NCB Investor Relations FY 2018 Investor Presentation 44

Domestic financing and advances credit quality

Corporate NPLs increased while Consumer NPLs were stable

Ma Manageme ment C Comme mmentary

• Corporate NPL ratio increased, while COR and NPL coverage ratio

dropped in 4Q 2018, in part due to higher NPL inflows during the

• year. The FY 2018 impact on COR was limited by IFRS9 adoption

adjustments and write-offs during the period.

• Consumer and credit card risk metrics remained healthy during the

period.

2.2% 2.2% 2.2% 2.5% 2.5% 0.6% 0.5% 0.5% 0.5% 0.6%

(0) (0)

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

NP NPL Ratios ( (%) %)

Corporate Consumer and credit card

148% 171% 166% 149% 136% 236% 290% 279% 301% 276%

1 2 2 3 3 4

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

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

Corporate Consumer and credit card

0.9%

• 0.1%

0.1% 0.5% 0.5% 0.5%

• 0.2%

0.2% 0.1% 0.3%

(0) (0)

FY 17 1Q 18 1H 18 9M 18 FY 18

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

Coorporate COR Consumer COR

SLIDE 45

NCB Investor Relations FY 2018 Investor Presentation

Saudi Government securities 47% Other investment grade 44% Non-investment grade 4% Unrated 5%

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

115 118

20 40 60 80 100 120 140

4Q 17 4Q 18

Saudi Arabia 62% GCC and Middle East 16% Europe 0% Turkey 2% Other countries 20%

Inves estmen ents b by G Geo eography (SARbn)

Investments trends and composition

Investments increased 3% and quality remains strong; ~91% of the investment portfolio remains Saudi Government and investment grade

Ma Manageme ment C Comme mmentary

• The investment portfolio is built on high quality securities with ~91%

being Saudi government and investment grade.

• Since the resumption of KSA government debt issuance, NCB has

actively participated in issuances of longer term debt securities.

• The portfolio has been re-balancing towards floating rate securities

in light of the rising interest-rate environment.

45

67 64 63 43 46 49

5 6 6

115 117 118 +3%

50 100 150 200

4Q 17 3Q 18 4Q 18

Inves estmen ents ( (SARbn)

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

115 118

20 40 60 80 100 120 140

4Q 17 4Q 18

SLIDE 46

NCB Investor Relations FY 2018 Investor Presentation

Due to banks and other financial institutions 12% Customers' deposits 82% Debt securities issued 2% Other liabilities 4%

Total Lia iabil ilit itie ies M Mix ix ( (SARbn)

46

Liabilities trends and composition

Higher total liability base and a improving deposit mix towards CASA balances (80%)

Ma Manageme ment C Comme mmentary

• 2% Increase in total liabilities. Excluding Turkish Lira depreciation,

the growth would have been 13%.

• Customers’ deposits are the main source of funding and rose by 3%

during 2018.

• CASA balances accounted for 80% of customers’ deposits

compared to 77% at year end 2017.

• Domestically, CASA balances grew by 7% and time deposits

declined by 13% from 2017.

309 325 319 49 48 46

10 9 9

381 81 396 396 388 88 +2%

100 200 300 400 500 600 700

4Q 17 3Q 18 4Q 18

Total L Lia iabil ilit itie ies (SARbn)

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

381 388 88

50 100 150 200 250 300 350 400 450 500

4Q 17 4Q 18

231 251 248

7 7 7

43 44 38

15 11 12 13 12 14

309 309 32 325 31 319 +3%

100 200 300 400 500 600

4Q 17 3Q 18 4Q 18

Custo tome mers rs' D ' Deposits (SARbn)

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

SLIDE 47

NCB Investor Relations FY 2018 Investor Presentation 47

Liquidity

NCB maintained a strong liquidity profile

Ma Manageme ment C Comme mmentary

• As at 4Q 2018, the financing to customers’ deposit ratio was 83%

and comfortably below the regulatory guidelines.

• HQLA balances rose by 1.5% compared to 4Q 2017.
• The average quarterly LCR remained stable at 176% in 4Q 2018 as

compared to 177.3% in 4Q 2017.

• Basel III leverage ratio was stable at 13.5% as at 4Q 2018 relative to

13.0% at 4Q 2017.

Quarterly averages

95 95 97 97 99 99 98 98 97 97 177.3% 198.6% 211.9% 184.4% 176.0%

0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 50 100 150 200

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

HQLA a and Aver erage L e Liquidity Cover erage ( e (SARbn/%) %)

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

80.7% 81.8% 83.8% 82.4% 83.3%

1 1 1 1 1 1 1 1 1

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

Finan ancing to to Custo tome mer D r Deposit Rat atio ( (%)

13.0% 13.5% 13.1% 12.9% 13.5%

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

Bas asel III l III leverag rage Rati atio ( (%)

SLIDE 48

NCB Investor Relations FY 2018 Investor Presentation

72 74 74

10 20 30 40 50 60 70 80 90 100

4Q 17 4Q 18

Common equity tier 1 capital (CET1) 80% Additional tier 1 capital (AT1) 10% Tier 2 capital (T2) 10%

Total tal C Cap apital tal C Comp mpositi tion ( (SARbn)

Ma Manageme ment C Comme mmentary

• Capitalization remained strong and comfortably above the regulatory

minima with CET1 at 16.6% and T1 at 18.5%.

• Pillar I risk weighted assets remained stable in YTD 2018 despite

growth in financing, which was offset by lower charge on residential real estate financing as recently allowed by SAMA, and Turkish Lira depreciation.

• Common equity Tier 1 capital (CET1) is impacted by one time

IFRS9 adoption adjustment.

48

Capital

Capital position comfortably above regulatory minima

Capital ratios are based on Pillar I RWA

57 57 60

7 7 7 8 8 8

72 72 72 72 74 74 +3%

20 40 60 80 100 120 140

4Q 17 3Q 18 4Q 18

Cap apital alisati ation ( (SARbn)

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

318 314 312 34 35 35

9 12 13

361 361 361 361 360 360

• 0%

100 200 300 400 500 600 700

4Q 17 3Q 18 4Q 18

Pillar I Ri Risk We Weighted As Assets (S (SARb ARbn)

Credit risk Operational risk Market risk

15.7% 16.2% 16.2% 15.9% 16.6% 17.7% 18.2% 18.1% 17.8% 18.5% 20.0 0.0% 20.4 0.4% 20.3 0.3% 20.0 0.0% 20.6 0.6%

4Q 17 1Q 18 2Q 18 3Q 18 4Q 18

Cap apital al R Rati atios ( (%)

CET1 ratio T1 ratio TC ratio

SLIDE 49

NCB Investor Relations FY 2018 Investor Presentation

National Commercial Bank Segmental Review FY 2018 Results

SLIDE 50

NCB Investor Relations FY 2018 Investor Presentation 50

NCB Bank (standalone)

Strong 11% FY 2018 net income growth resulting from operating income growth and lower impairment charge

Ma Manageme ment C Comme mmentary

• FY 2018 net income rose 11% YoY driven principally by 4% operating income growth

and a 36% lower impairment charge, while limited growth in operating expenses came from VAT, Cost of living allowances and business growth partially offset by productivity initiatives driven by continued digitization.

• NSCI for FY 2018 improved by 6% YoY due to increase in average earning assets and

better margins from higher CAs growth.

• 4Q 2018 net income rose 15% YoY driven principally by 9% operating income growth

and lower operating expenses by (-7%). Summary mmary Finan ancial al P Perf rforman rmance

SAR (mn) 4Q Q 201 018 3Q Q 201 018 4Q Q 201 017 Yo YoY Y % ch chan ange FY FY 201 018 FY FY 201 017 Yo YoY Y % ch chan ange Total assets 426,865 434,567 413,376 +3% 426,865 413,376 +3% Tota tal operati ting ng i inc ncome 4,2 ,280 4, 4,17 176 3, 3,937 937 +9% 16, 6,693 693 16 16,118 118 +4% Net special commission income 3,457 3,310 3,126 +11% 13,103 12,386 +6% Fee income from banking services, net 615 610 582 +6% 2,375 2,306 +3% Operating expenses (1,230) (1,369) (1,328)

• 7%

(5,367) (5,218) +3% Impairment charge (351) (473) (275) +28% (1,067) (1,667)

• 36%

Other income (expenses) (0) (14) 7

• 104%

(54) (39) +39% Net i t inc ncome for th the p period 2,698 698 2,3 ,321 2,3 ,341 +15 15% 10, 0,204 04 9, 9,193 93 +11 11% % of total assets 94.1% 94.7% 92.9% +1% 94.1% 92.9% +1% Cost to income (%) 28.7% 32.8% 33.7%

• 15%

32.2% 32.4%

• 1%

NCL (%) 0.6% 0.7% 0.4% +60% 0.4% 0.7%

• 42%

ROA (%) 2.5% 2.2% 2.3% +9% 2.5% 2.3% +8% NIM (%) 3.6% 3.5% 3.5% +5% 3.6% 3.5% +3% NPL (%) 1.6% 1.6% 1.5% +9% 1.6% 1.5% +9% NPL Coverage Ratio (%) 157% 170% 164%

• 4%

157% 164%

• 4%

223 223 248 48 244 44 +9%

50 100 150 200 250 300 350 400 450

4Q 17 3Q 18 4Q 18

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

287 87 307 307 299 99 +4%

100 200 300 400 500

4Q 17 3Q 18 4Q 18

Custo tome mers rs' D ' Deposits (SARbn)

SLIDE 51

NCB Investor Relations FY 2018 Investor Presentation 51

Retail Banking

Higher FY 2018 net income from higher operating income and lower impairment charge

Ma Manageme ment C Comme mmentary

• FY 2018 net income increased by 18% YoY driven principally by 10% higher operating

income and a 39% improvement in impairment charges.

• NSCI for FY 2018 improved by 8% YoY due to a 7% increase in retail financing and

better margins driven by higher current account growth.

• Fee income increased by 16% in FY 2018 YoY, mainly from financing-related activities.
• FY 2018 operating expenses increased 6% YoY and the cost to income ratio reached

45.0% from 46.4% a year earlier due to strong operating income growth.

• 4Q 2018 net income increased by 4% YoY driven by 7% higher operating income and

lower operating expenses by (-3%). Summary mmary Finan ancial al P Perf rforman rmance

SAR (mn) 4Q Q 201 018 3Q Q 201 018 4Q Q 201 017 Yo YoY Y % ch chan ange FY FY 201 018 FY FY 201 017 Yo YoY Y % ch chan ange Total assets 125,908 123,856 116,530 +8% 125,908 116,530 +8% Tota tal operati ting ng i inc ncome 2,3 ,328 2,3 ,327 2,1 ,171 +7% 8,91 918 8,141 141 +10 10% Net special commission income 2,026 1,902 1,919 +6% 7,467 6,945 +8% Fee income from banking services, net 305 390 267 +14% 1,348 1,165 +16% Operating expenses (944) (1,035) (970)

• 3%

(4,015) (3,780) +6% Impairment charge (175) (26) (31) +463% (274) (447)

• 39%

Other income (expenses) (0) (5) (2)

• 98%

(18) (16) +18% Net i t inc ncome for th the p period 1,2 ,209 1,2 ,260 1, 1,16 168 +4% 4, 4,611 11 3, 3,898 98 +18 18% % of total assets 27.8% 27.0% 26.2% +6% 27.8% 26.2% +6% Cost to income (%) 40.5% 44.5% 44.7%

• 9%

45.0% 46.4%

• 3%

CoR 0.7% 0.1% 0.1% +426% 0.3% 0.5%

• 43%

ROA (%) 3.9% 4.2% 4.1%

• 5%

3.8% 3.5% +10%

93 93 99 99 99 99 +7%

20 40 60 80 100 120 140 160

4Q 17 3Q 18 4Q 18

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

237 37 247 47 243 43 +3%

50 100 150 200 250 300 350 400 450

4Q 17 3Q 18 4Q 18

Custo tome mers rs' D ' Deposits (SARbn)

SLIDE 52

NCB Investor Relations FY 2018 Investor Presentation 52

Corporate Banking

Higher FY 2018 net income by 13% from lower operating expense and lower impairment charge.

Ma Manageme ment C Comme mmentary

• FY 2018 net income increased 13% YoY due to lower impairments (-35%) and
• perating expenses (-8%).
• NSCI for FY 2018 declined 2% YoY as a result of repayments in 4Q 2017 that reduced

average balances during the period by 1% compared to 2017.

• Fee income decreased by 12% YoY mainly on lower lending and trade fees.
• The FY 2018 impairment charge declined 35% YoY due mainly to one-time IFRS9

adoption adjustment to retained earnings permissible by IFRS9.

• 4Q 2018 net income increased 33% YoY due to higher operating income 15% and

lower operating expenses (-25%), partly offset by higher impairments by 12%. Summary mmary Finan ancial al P Perf rforman rmance

SAR (mn) 4Q Q 201 018 3Q Q 201 018 4Q Q 201 017 Yo YoY Y % ch chan ange FY FY 201 018 FY FY 201 017 Yo YoY Y % ch chan ange Total assets 138,203 142,725 126,184 +10% 138,203 126,184 +10% Tota tal operati ting ng i inc ncome 1, 1,117 117 998 998 97 974 +15 15% 3,889 889 4,094 094

• 5%

Net special commission income 823 785 671 +22% 2,972 3,040

• 2%

Fee income from banking services, net 295 201 291 +1% 918 1,044

• 12%

Operating expenses (192) (225) (255)

• 25%

(912) (992)

• 8%

Impairment charge (160) (488) (143) +12% (724) (1,115)

• 35%

Other income (expenses) (0) (4) (1)

• 81%

(17) (15) +11% Net i t inc ncome for th the p period 765 65 282 82 574 +33 33% 2,2 ,237 1,97 972 +13 13% % of total assets 30.5% 31.1% 28.4% +7% 30.5% 28.4% +7% Cost to income (%) 17.2% 22.5% 26.2%

• 34%

23.4% 24.2%

• 3%

CoR 0.5% 1.4% 0.5% +3% 0.5% 0.9%

• 40%

ROA (%) 2.2% 0.8% 1.7% +26% 1.7% 1.5% +12%

42 42 52 52 48 48 +13%

10 20 30 40 50 60 70 80 90 100

4Q 17 3Q 18 4Q 18

Custo tome mers rs' D ' Deposits (SARbn)

120 20 133 33 131 31 +9%

50 100 150 200 250

4Q 17 3Q 18 4Q 18

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

SLIDE 53

NCB Investor Relations FY 2018 Investor Presentation 53

Treasury

Stable FY 2018 net income in treasury segment

Ma Manageme ment C Comme mmentary

• Stable FY 2018 net income YoY mainly from lower (-1%) operating income, partly offset

by lower impairment charges.

• FY 2018 operating income declined 1% YoY due to lower gains on non-trading

investments from repositioning the investment portfolio.

• 4Q 2018 net income increased by 16% YoY driven by lower non recurring revenues,

partly offset by reversal of credit losses, and lower operating expenses. Summary mmary Finan ancial al P Perf rforman rmance

SAR (mn) 4Q Q 201 018 3Q Q 201 018 4Q Q 201 017 Yo YoY Y % ch chan ange FY FY 201 018 FY FY 201 017 Yo YoY Y % ch chan ange Total assets 154,763 159,829 162,510

• 5%

154,763 162,510

• 5%

Tota tal operati ting ng i inc ncome 82 822 85 851 806 06 +2% 3, 3,873 3, 3,896 96

• 1%

Net special commission income 609 623 535 +14% 2,663 2,402 +11% Fee income from banking services, net 15 20 24

• 34%

109 97 +12% Other operating income 197 209 248

• 20%

1,101 1,397

• 21%

Operating expenses (94) (109) (103)

• 9%

(440) (441)

• 0%

Impairment charge (16) 41 (101)

• 84%

(70) (105)

• 34%

Other income (expenses) (5) 11

• 99%

(19) (8) +133% Net i t inc ncome for th the p period 712 778 61 614 +16 16% 3, 3,34 345 3, 3,34 342 +0% Cost to income (%) 34.1% 34.8% 36.5%

• 7%

34.1% 36.5%

• 7%

% of total assets 11.4% 12.8% 12.8%

• 11%

11.3% 11.3% +0% ROA (%) 1.8% 2.0% 1.5% +17% 2.1% 2.1% +1%

115 117 118 +3%

50 100 150 200

4Q 17 3Q 18 4Q 18

Inves estmen ents, n net et ( (SARbn)

535 623 609 271 228 213 80 806 851 851 82 822 +2%

500 1,000 1,500 2,000

4Q 17 3Q 18 4Q 18

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

Net special commission income Fee and other income

SLIDE 54

NCB Investor Relations FY 2018 Investor Presentation 54

Capital Markets

Higher FY 2018 net income growth, driven by asset management

Ma Manageme ment C Comme mmentary

• FY 2018 operating income increased by 13% from higher AUM related and other fees,

which combined with improving operating efficiency drove strong 23% net income growth YoY.

• 4Q 2018 net income decreased by 15% YoY due to lower operating income (-7%) due

to lower fee income, offset by lower operating expenses (-9%). Summary mmary Finan ancial al P Perf rforman rmance

SAR (mn) 4Q Q 201 018 3Q Q 201 018 4Q Q 201 017 Yo YoY Y % ch chan ange FY FY 201 018 FY FY 201 017 Yo YoY Y % ch chan ange Assets Under Management 144,096 136,659 123,329 +17% 144,096 123,329 +17% Brokerages Volume 57,580 30,052 48,990 +18% 182,949 197,910

• 8%

Tota tal operati ting ng i inc ncome 162 62 15 155 174

• 7%

720 636 636 +13 13% AUM Related Fee Income 115 118 127

• 10%

512 443 +16% Brokerage Related Fee Income 37 22 39

• 5%

135 150

• 10%

Other fee income 7 8 5 +23% 47 26 +80% Fee income, net 158 148 172

• 8%

695 619 +12% Operating expenses (81) (85) (90)

• 9%

(344) (344)

• 0%

Other income (expenses) (1) 8

• 111%

(1) 11

• 108%

Net i t inc ncome 79 70 92 92

• 14

14% 37 376 303 303 +24% Non-controlling interests (3) (2) (3) +22% (13) (8) +56% Net i t inc ncome attr ttribute ted to to e equity ty holders rs 76 68 68 90 90

• 15

15% 363 363 295 95 +23% Cost to income (%) 50.4% 55.0% 51.7%

• 3%

47.7% 54.1%

• 12%

123 23 137 37 144 44 +17%

50 100 150 200 250

4Q 17 3Q 18 4Q 18

Asset ets Under er M Managem emen ent ( (SARbn)

49 49 30 30 58 58 +18%

(5) 15 35 55 75 95 115

4Q 17 3Q 18 4Q 18

Br Broker kerages es Volume ( e (SARbn)

SLIDE 55

NCB Investor Relations FY 2018 Investor Presentation 55

Türkiye Finans Katılım Bankası (TRY)

FY 2018 net income increased by 20% YoY due mainly to higher operating income

Ma Manageme ment C Comme mmentary

• FY 2018 net income increased by 20% YoY driven by higher operating income (+22%),

which was partially offset by higher operating expenses and impairment charges.

• FY 2018 cost to income ratio reached to 50.0% from 55.5% in FY 2017.
• 4Q 2018 net income increased by 30% YoY due to (+47%) higher Operating income,

and lower impairment charge by (-11%). Summary mmary Finan ancial al P Perf rforman rmance

TRY (mn) 4Q Q 201 018 3Q Q 201 018 4Q Q 201 017 Yo YoY Y % ch chan ange FY FY 201 018 FY FY 201 017 Yo YoY Y % ch chan ange Total assets 46,486 49,901 38,636 +20% 46,486 38,636 +20% Tota tal operati ting ng i inc ncome 475 522 522 32 323 +47 47% 1,839 39 1,508 08 +22% Net special commission income 408 456 255 +60% 1,573 1,235 +27% Fee income from banking services, net 67 66 68

• 1%

266 273

• 3%

Operating expenses (238) (226) (216) +10% (920) (837) +10% Impairment charge (75) (189) (84)

• 11%

(454) (293) +55% Other income (expenses) (32) 5 77

• 142%

(19) (8) +138% Net i t inc ncome 130 30 112 112 100 00 +30 30% 445 445 37 370 +20% Cost to income (%) 50.1% 43.3% 66.9%

• 25%

50.0% 55.5%

• 10%

CAR % 16.8% 19.4% 18.2%

• 8%

16.8% 18.2%

• 8%

Tier 1 CAR % 12.0% 13.4% 14.3%

• 16%

12.0% 14.3%

• 16%

LTD ratio % 110.0% 112.5% 118.8%

• 7%

112.0% 118.8%

• 7%

Note: Figures according to IFRS accounting standards 0.2 0.2 3.4 3.4 Growth at constant FX TFKB FX translation impact 4Q 17 Reported 4Q 18 Reported 4Q 18 Underlying 26.4 6.4 26.6 6.6 30.0 30.0

+1% +14%

Financing & & A Advances es, net et ( (TR TRYbn bn) Custo tome mers rs’ Deposits ( (TR TRYbn bn)

0.5 0.5 4.1 .1 4Q 18 Reported 22.2 4Q 17 Reported Growth at constant FX TFKB FX translation impact 4Q 18 Underlying 22.7 26.8 6.8

+2% +20 20%

42% 39% 49% 59% % in foreign currency xx%

SLIDE 56

NCB Investor Relations FY 2018 Investor Presentation

National Commercial Bank Additional Information FY 2018 Results

SLIDE 57

NCB Investor Relations FY 2018 Investor Presentation 57

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.

SLIDE 58

NCB Investor Relations FY 2018 Investor Presentation 58

NCB Contacts

Please don’t hesitate to contact NCB Group Investor Relations

More re i informat rmation Download copies of National Commercial Bank’s:

• Financial statements
• Earnings release
• Investor presentation
• Financial data supplement

Visit: http://www.alahli.com/en-us/Investor_Relation NC NCB B Inves estor R Rel elations +966 12 646 3988 investorrelations@alahli.com National Commercial Bank P.O. Box 3555 21481 Jeddah Kingdom of Saudi Arabia