Investor Presentation 1Q 2019 1 Investor Page Page Page - PowerPoint PPT Presentation

The National Commercial Bank Investor Presentation 1Q 2019 1

Investor Page Page Page Presentation 3 11 18 Content NCB – The Grow with KSA Strategy leading KSA Bank Grow with NCB Overview Page Page Page 28 35 49 Financial Results Financial Results Segmental Details Highlights Overview Page 56 Additional Information 2

The L he Lea eadi ding KS KSA Ban Bank 1Q 2019 Results

Ov Over erview ew The National Commercial Bank - The Nation’s Gateway of Progressive Banking NCB’s vision is to be the premier financial services group in the region. To achieve this, five strategic aspirations have been defined: to be number one in revenues, to be number one in profit, to be the best digital bank, to be the best in customer service, and to be the employer of choice. Since its establishment in 1953, NCB has evolved into a broad-based financial services group and holds a 10. 0.7 leading market position. The banking group has a strong performance track record, mirroring the Kingdom’s progress towards modernization and development. Today, NCB has a unique bond of trust with its customers. The bank leverages its investment in technology and commitment to enhancing the customer experience, delivering a comprehensive suite of financial products and services to 6 million KSA based customers, across all major market segments. Return on average equity to common shareholders reached 18.1% in 2018 BILLION 18. 8.1% % NCB realizes that it can be a powerful force for good in the communities it serves, leading by example and acting responsibly and contributing to the empowerment of the community. NCB NCB made a net profit of SAR empowers financial planning, saving and borrowing to help its customer’s meet their financial 10.7 billion, the highest in its aspirations and invests in community development through its Ahalina CSR Program. It is also a history and the highest among major employer, with a commitment to creating career opportunities for a growing and ambitious Saudi banks for the sixth Nation. Over the past sixth consecutive years NCB has achieved record net profits among Saudi successive year. Return on Banks. Beginning with its IPO 2014, NCB has enjoyed the privileged of sharing its successes with average equity reached 18.1%. widened investor base. As such NCB has effectively partnered with its stakeholders to continue delivering record profitability, and in in 2018 achieved the highest net income level ever in the Saudi Banking Sector at SAR 10.7 billion. NCB Investor Relations | 1Q 2019 Investor Presentation 4

NCB is the leading banking group in Saudi Arabia Established in 1953; IPO in 2014 NCB Snapshot (FY 2018) SAR SAR SAR 7 m 13,058 319 bn 144 bn 453 bn Clients Employees* Deposits Market Cap Assets Who holesa sale branch i ch in Bahr hrain Offices: Singapore, Seoul, Shanghai Sub ubsi sidiary i in Tur urkey Subsid idia iary in in KSA: A: Türkiye Finans Katılım Bankası NCB Capital Jeddah HQ *Includes Alahli Esnad (1,520 employees) - fully owned subsidiary engaged in outsourcing and manpower services in KSA NCB Investor Relations | 1Q 2019 Investor Presentation 5

NCB is the leading banking group in Saudi Arabia NCB has a strong market and financial position (FY 2018) Finan ancial al P Pos osition on Mar arket P Pos osition on by by KSA SA KSA SA GC GCC 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 #3 Net Income #1 #3 Asse ssets ( s (SARb ARbn) Financing ( (SARb ARbn) Deposits (S De (SARb ARbn) 500 300 350 453 319 300 265 250 400 294 234 250 365 200 300 200 150 151 170 170 150 230 230 200 148 121 190 100 114 100 100 50 50 0 0 0 NCB Rajhi Samba Riyad BSF NCB Rajhi Riyad BSF Samba NCB Rajhi Samba Riyad BSF NCB Investor Relations | 1Q 2019 Investor Presentation 6

NCB has a well-diversified business model Total operating income contribution 3.9 bn 20% TREASURY SAR 16.7 bn 1.5 bn 720 mn 88% 4% 8% 3.9 bn 21% Capital Markets International CORPORATE NCB Capital NCB Largest Asset Manager in KSA 8.9 bn Largest Shariah-compliant Türkiye Finans Katılım Bankası (TFKB) Asset Manager worldwide 306 branches, 610 ATMs 401 branches, 3,661 ATMs 47% Top 2 Broker 3,661 employees 150 Remittance centers 22 locations 7,596 Employees 281 Employees 97% Saudization RETAIL 100% CEO DRs are Saudi Notes: KSA based recruitment services firm Alahli Esnad (fully owned subsidiary) employs 1,520 persons Operating Income as of FY 2108 NCB Investor Relations | 1Q 2019 Investor Presentation 7

NCB has a strong financial position Key KPIs Total tal E Equity ty (SARbn) Total As Assets (S (SARb ARbn) 120 +9% +1% 800 100 700 66 66 64 4 449 449 453 45 600 443 443 445 445 435 43 60 60 80 56 56 500 47 47 60 400 300 40 200 20 100 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 CAGR CAGR Cap apital al R Rati atios ( (%) Liq iquid idit ity Ratio ios ( (%) 20.6% 22.0% 177.3% 176.0% 20.0% 172.5% 2 19.2% 152.3% 2 18.5% 20.0% 17.7% 2 17.2% 17.2% 16.9% 1 18.0% 1 83.3% 80.3% 80.7% 78.1% 16.0% 1 66.3% 16.6% 1 15.7% 15.3% 14.0% 14.7% 1 0 13.5% 12.0% Liquidity coverage ratio (LCR) Financing to customers' deposit ratio 0 TC ratio T1 ratio CET1 ratio 0 10.0% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 LCR is based on average quarterly numbers Capital ratios are based on Pillar I RWA LCR was not reported before 2015 NCB Investor Relations | 1Q 2019 Investor Presentation 8

NCB has a strong performance track record Key KPIs Total tal O Operati rating In Income me (SARbn) Net In Income me Attri ttribute ted T To Equity ty Ho Holders rs ( (SARbn) 35 +5% +4% 18 30 16 14 10.7 0.7 25 18.9 .9 18.6 .6 18.3 .3 9.8 9.8 17.5 5 9.3 9.3 9.1 9.1 16.2 6.2 12 8.7 8. 20 4.6 5.1 4.7 10 4.9 4.8 15 8 6 10 14.4 13.5 13.7 12.6 11.4 4 5 2 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Net special commission income CAGR CAGR Fee and other income Ret eturns ( (%) %) Net Net Spec ecial C Commission M Margin (%) %) Cost to to In Income me R Rati atio ( (%) 0 8.0% 5.00% 20.1% 50.0% 19.2% 45.0% 7.0% 0 18.1% 17.8% 4.00% 40.0% 17.4% 6.0% 35.0% 0 39.0% 37.7% 5.0% 37.4% 3.61% 3.00% 3.48% 30.0% 35.0% 3.35% 34.1% 0 4.0% 3.04% 25.0% 2.91% 2.4% 2.2% 2.2% 2.1% 2.1% 2.00% 20.0% 3.0% 0 15.0% 2.0% 1.00% 10.0% 0 1.0% 5.0% ROE common shares (%) ROA (%) 0.00% 0 0.0% 0.0% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 NCB Investor Relations | 1Q 2019 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 Share hare parame arameters rs 31 31 Mar Mar 20 2019 MSCI CI Sau audi A Arab rabia Index ex Floa oat Adj. M Mcap (U p (USDb) Weigh ghting ng (%) %) Closing Price (SAR) 55 52 week range (SAR) 39-55 SABIC 24.76 16.27 Free Float 35.4% Al Rajhi Bank 22.63 14.87 Shares issued (mn) 3,000 Tangible Book Value (SARmn) 67,939 Nat ational al Co Commercial al Ban Bank 17 17.57 11. 11.54 Tangible BVPS 22.65 Saudi Telecom (STC) 11.43 7.51 P/TBV Ratio 2.4x P/E Ratio (FY 2017 earnings) 15.99x Samba Financial Group 10.03 6.59 Div Yield (FY 2017 dividends) 3.82% 3m Avg Daily Volume (shares) 1,250,914 Source: MSCI, 29 March 2019 Source: NCB, Bloomberg Rati atings LT LT ST ST Outlook ook Share hare p pri rice p perf rforman rmance since IP IPO (SAR) Nat ational al Co Commercial al Ban Bank (Ad (Adj p price) S&P BBB+ A-2 Stable 55 Fitch A- F1 Stable 50 Moody’s* A1 P-1 Stable 45 40 Capital Intelligence A+ A1 Stable 35 Govern ernmen ent of Sa Saudi Ara rabia 30 25 S&P A- Stable 20 Fitch A+ Stable 15 10 Moody’s A1 Stable 5 Capital Intelligence A+ Stable 0 Nov-14 Dec-15 Jan-17 Feb-18 Mar-19 *Moody’s rating is unsolicited Source: Bloomberg Trading commenced 12/11/2014. Day 1 at SAR 33 NCB Investor Relations | 1Q 2019 Investor Presentation 10

Gro row w wi with th KSA Gro row w wi with th NCB CB 1Q 2019 Results