Samba Financial Group Investor Presentation H1 2020 Results Aug, 2020 The information contained in this document and any other information presented or discussed in connection therewith (together, the “Information”) is being provided on basis concerning Samba Financial Group (Company). Please refer to slide no 26 for important disclaimers and related 1 information. Public
Table of Contents Samba Financial Group Profile Strategy and Transformation update Key Financial Highlights H1 2020 Forward looking guidance Appendix: Balance Sheet & Income Statement Appendix: Samba’s response on Coronavirus 2 Public
Table of Contents Samba Financial Group Profile Strategy and Transformation update Key Financial Highlights H1 2020 Forward looking guidance Appendix: Balance Sheet & Income Statement Appendix: Samba’s response on Coronavirus 3 Public
Overview Samba Financial Group (“Samba” or the “Bank”) is a leading bank established in 1980 as the Saudi American Bank, later renamed Samba Financial Group in 2003 A well diversified and shariah compliant franchise which operates through following four segments and led by an experienced and cohesive management team: (i) Consumer Banking, (ii) Corporate Banking, (iii) Treasury and (iv) Investment Banking Forerunner in corporate, consumer, private & priority banking, ATMs, Debit & Islamic Credit Cards, Derivatives etc. in KSA Has major market share both in assets and deposits in Saudi Banking Industry Awarded the “Best Investment Bank in KSA” by Euromoney and Global Finance Led the Historic Aramco IPO which was massively over-subscribed A sound corporate governance structure is in place in line with global standards, which oversees the operations of the bank SAR SAR SAR SAR SAR 3,611 187 B 46 B 279 B 148 B 93 B 526 73 Employees Equity Assets Loans Deposits Investments Branches ATMs A1 A+ BBB+ A- Shareholding Total Operating Income, SAR bn Net Income (before Zakat / Tax), SAR bn General Public PIF PPA GOSI +13% +11% 7.09% 4.79 2.61 4.37 2.36 4.23 2.26 11.54% 58.46% 22.91% H1 2019 H2 2019 H1 2020 H1 2019 H2 2019 H1 2020 4 Public
Overview Total Assets, SAR bn Total Performing Loans and Advances, SAR bn +9% +5% Other Assets Consumer loans 279.3 149.4 and Credit cards 255.6 142.8 Cash and balances with 12.5 235.6 19.9 Central Banks and FIs Commercial loans 25.5 7.2 18.5 21.8 116.3 and advances 8.4 Investments, net 32.8 17.6 Loans and Advances, net 93.2 85.0 79.2 129.4 124.2 98.7 148.1 141.6 115.1 H1 2019 H2 2019 H1 2020 H1 2019 H2 2019 H1 2020 Total Net Investments, SAR bn Total Funding, SAR bn International Other Liabilities +9% +10% Domestic Term loan and debt 93.2 279.3 securities 255.6 85.0 7.7 79.2 235.6 Due to banks and 21.4 28.6 5.9 15.6 other Financial 20.9 14.2 18.1 46.4 45.4 Institutions 44.6 Equity Customer deposits 71.8 64.1 187.3 61.1 180.2 168.3 H1 2019 H2 2019 H1 2020 H1 2019 H2 2019 H1 2020 5 Public
Table of Contents Samba Financial Group Profile Strategy and Transformation update Key Financial Highlights H1 2020 Forward looking guidance Appendix: Balance Sheet & Income Statement Appendix: Samba’s response on Coronavirus 6 Public
Summary of Samba’s Strategy and Transformation Themes Transform the core… …digitize & Sales productivity Enhanced productivity (e.g., account planning, branch transformation) (e.g., digital RM workbench, automated lead generation) Operations simplification Customer journey re-imagination (e.g., lean product and credit processes) (e.g., digital customer journeys, automated approvals) Value propositions Ramp-up new digital propositions (e.g., revamping SME and Private Banking) (e.g., tech enabled and personalized propositions) Organization & performance management Digital performance management (e.g., business org re-structuring, KPI setting, new (e.g., automated unit-level and individual target setting) coverage teams, target cascade process) Health (leadership, transparent communication, accountability) 7 Public
We collaborated as “one bank” to deliver progress on our transformation Corporate Banking LCB (SME) 1 Consumer Banking Cross-functional effort with 5 5 7 all functions contributing meaningfully initiatives initiatives initiatives We have also assessed further opportunities in H1: Financial Institutions Digital Culture Asset and Wealth Management Cost optimization 20 6 initiatives initiatives 8 1. LCB stands for Local Corporate Banking Public
Transformation strategy…How? Samba Bank offers full suite of market leading products to institutional and individual customers through experienced and capable relationship teams 9 Public
Cultural paradigm shift Data & analytics to Rapid, high-agility drive portfolio growth execution “One Bank” mentality Rigorous KPI monitoring through collaboration and tracking at all levels 10 Public
Wholesale Banking update Key achievements Corporate Banking: Completed multiple initiatives to drive asset growth, increase cross-sell & mange credit risk e.g., Account planning, KPI cascading and monitoring, New client acquisition, credit process digitization etc. LCB (SME): Launched Government backed Kafala program through consumer branches to drive asset growth in SME sector Treasury: Strong presence in primary and secondary markets, maintain solid liquidity and funding profile Commercial Loans and Corporate Banking Treasury Total Investments, Treasury Operating Income, advances, SAR bn Operating Income, SAR Mn SAR bn SAR Mn +31% +7% +83% +18% 129 93 1,664 1,639 1,561 79 99 897 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 11 Public
Consumer Banking update Key achievements Portfolio growth: Demonstrated record high mortgage sales in June and significant uptake in liabilities Customer centricity: Improved convenience for our customers despite COVID curfews Client service: Adapted our distribution channels to ensure continuous momentum Credit cards Mortgage sales refinancing Evolving the core: Upgraded our digital infrastructure to enable growth campaign campaign Mortgages sold through alternative Liabilities, SARbn Assets, SARbn channels, % +12% +14% 102.0 37.4 40% 36% 91.2 32.9 H1 2019 H1 2020 H1 2019 H1 2020 Q1 2020 Q2 2020 12 Public
We have adopted a two-phased digital strategy that aims to establish the necessary infrastructure and then innovate to leap frog within key segments Digitize the core Leap frog by Innovation Reinvent client experience to catch up with Introduce new propositions to attract and the competition acquire new segments Objectives Boost efficiency and speed by digitizing core Tap into new technologies such as AI to back-end functions build viable business models or enhance existing ones 13 Public
We successfully launched a number of initiatives this year, aimed at digitizing our core operations to remain resilient in the phase of ongoing disruption… Pilot of the New Instant Installed ITMS in Branches New SambaOnline Facelift Credit Card Acquisition Card Printing 2020 National ID and Address New Debit and Credit Card E-promissory Note and Update Services (7 New Services) Digital Signature Public
Table of Contents Samba Financial Group Profile Strategy and Transformation update Key Financial Highlights H1 2020 Forward looking guidance Appendix: Balance Sheet & Income Statement Appendix: Samba’s response on Coronavirus 15 Public
Income statement: Key Metrics X HoH Growth SAR Millions H1’20 vs H1’19 H1’20 vs H2’19 H1 2019 H2 2019 H1 2020 growth growth Special Commission Income, net 3,253 3,123 2,953 -9% -5% Fees, Commission and Exchange Income, net 743 832 832 12% 0% Other Income, net 1 370 279 1,005 Total Operating Income 4,367 4,234 4,790 10% 13% Total Operating Expenses 1,320 1,557 1,532 16% -2% Income Statement figures Pre-provision Income 3,047 2,676 3,258 7% 22% Provision for Credit Impairment, net 782 321 646 Net Income, before Zakat and Taxation 2,264 2,355 2,612 15% 11% Zakat and Income Tax 264 365 383 Net Income, after Zakat and Taxation 2,000 1,990 2,229 11% 12% 1. Includes net income from investment held in FVIS + net trading income + net gain in FVOCI debt + net other operating income 16 Public
Balance sheet: Key Metrics X HoH Growth SAR Millions H1’20 vs H1’19 H1’20 vs H2’19 H1 2019 H2 2019 H1 2020 growth growth Investments, net 79,250 85,013 93,193 18% 10% Loans and Advances, net 115,062 141,595 148,088 29% 5% Commercial Loans and Advances 98,746 124,224 129,411 31% 4% Retail Loans and Advances Period Credit Cards 1,386 1,429 1,212 -13% -15% End Balances Consumer Loans 16,174 17,118 18,727 16% 9% Deposits 168,306 180,166 187,259 11% 4% NIBs 101,875 96,510 104,234 2% 8% Saving & Time Deposits 66,431 83,656 83,026 25% -1% 17 Public
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