Saudi National Bank · TADAWUL:1180

Saudi National Bank — The National Commercial Bank — Q3 2019 Earnings Presentation

21 slides from Saudi National Bank's earnings presentation, 2019

  1. Slide 1: Earnings Presentation 3Q 2019 Results

    The National Commercial Bank Earnings Presentation 3Q 2019 Results

  2. Slide 2: Disclaimer

    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 NC

  3. Slide 3: CEO Key Messages

    CEO Key Messages ⎮NCB reported 16% net income growth* of SAR 8.0 billion on strong operating performance in Saudi Arabia with a return on equity of 17.5% Operating Income Contribution (SAR) 13.4bn KSA Business 90% 561mn 1.0bn 3% 7% NCB Domestic Banking Capital Markets (NCBC) International (TFKB)  S

  4. Slide 4: Progress update on Strategy (1): Year to date achievements

    Progress update on Strategy (1) ⎮Year to date achievements Retail Corporate Treasury Expand Market Share Consolidate Leadership Sustain Revenue and Diversify Funding  Growing market share  No. 1 in Corporate  No. 1 in Treasury  Financing market share up 110bps in 2Q  Financing market share up 4

  5. Slide 5: Progress update on Strategy (2): Year to date achievements

    Progress update on Strategy (2) ⎮Year to date achievements Subsidiaries Grow Value Contribution Capital Markets International  NCB Capital is the largest Investment Bank  TFKB is an efficient, resilient franchise in a & Asset Manager in KSA large regional market  37% growth in customer deposits Y

  6. Slide 6: Income Statement Highlights

    Income Statement Highlights ⎮9M 2019 net income after Zakat & income tax growth of 16% YoY, derived from higher operating income and lower Zakat and tax Net Income after Zakat and Income Tax attributed to Net Special Commission Margin (YTD %) Equity Holders (SARmn) 6,000.00 +16% 4.24% 4.15% 4.15% 3.

  7. Slide 7: Balance Sheet Highlights

    Balance Sheet Highlights ⎮10% YTD increase in total assets on the back of growth in Financing and Investments 3Q 19 Total Assets Movement (SARbn) Financing and Advances, net (SARbn) +10% +6% 180 500 160 400 11 498 140 120 15 265 10 276 12 281 12 14 300 4 20 100 453 21 19 137 80 60 200 131 135 40 110

  8. Slide 8: Segmental Highlights

    Segmental Highlights ⎮9M 2019 Income and profit growth led by strong Retail performance, while International was impacted by lower TRL / SAR FX rate and higher risk cost 9M 19 Total Operating Income Movement (SARmn) 9M 19 Net Income Before Zakat & Income Tax Movement 6,000 (SARmn) 10,000 +6% 9,000 +

  9. Slide 9: Asset Quality

    Asset Quality ⎮Stable Group NPL ratio and CoR, though 9% decline in NPL coverage driven by International segment NPL Ratios (%) Movement NPLs by Economic Sector (SARbn) 9.2% 0 1 0.06 0.02 0.01 0.22 0 5.5% 5.5% 1 0.01 5.40 4.8% 5.2% 1 5.25 0 1 (0.17) (0.01) 1.9% 1.9% 0 1.8% 1.8% 1.8% 0 0 0 0 0 1.6% 1

  10. Slide 10: Liquidity

    Liquidity ⎮NCB maintained a strong liquidity profile HQLA and Average Liquidity Coverage (SARbn/%) Financing to Customer Deposit Ratio (%) 1 86.8% 1 1 82.4% 83.3% 84.4% 82.4% 1 200.0% 1 200 184.4% 183.9% 185.5% 190.0% 1 1 176.0% 1 173.2% 180.0% 1 1 170.0% 150 1 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 160.0% 9

  11. Slide 11: Capital

    Capital ⎮Capital position comfortably above regulatory minima Capital Ratios (%) Pillar I Risk Weighted Assets (SARbn) 700.00 +10% 600.00 385 397 360 0 500.00 17 16 400.00 13 0 20.6% 35 35 36 300.00 20.0% 334 346 200.00 312 19.3% 0 100.00 18.7% 0.00 0 4Q 18 2Q 19 3Q 19 18.0% Credit risk Operational

  12. Slide 12: Outlook: FY 2019 Outlook mostly within guidance

    Outlook ⎮FY 2019 Outlook mostly within guidance 2019 Macroeconomic FY 2018 9M 2019 FY 2019 FY 2019 Outlook Reported Reported Guidance Outlook  Average Arabian light oil price of Balance Financing Sheet +6% +6% 4% - 6% Within guidance USD 65 per barrel growth  3-4 25bps US Fed rate cuts in 2019  2

  13. Slide 13: Additional Information

    Additional Information 3Q 2019 Results

  14. Slide 14: Income Statement

    Income Statement ⎮20% Higher 3Q 2019 net income after Zakat & income tax YoY, derived from higher operating income and lower Zakat and tax Profitability Trends SAR (mn) 3Q 2019 2Q 2019 3Q 2018 YoY % change 9M 2019 9M 2018 YoY % change Net special commission income 3,682 3,669 3,637 +1% 10,912 10,629

  15. Slide 15: Balance Sheet

    Balance Sheet ⎮10% YTD increase in total assets on the back of growth in Financing and Investments Balance Sheet SAR (mn) 3Q 2019 2Q 2019 3Q 2018 YoY % change FY 2018 YTD % change Cash & banks 52,521 45,621 54,714 -4% 48,479 +8% Investments, net 132,467 126,630 116,504 +14% 118,090 +12% Financing an

  16. Slide 16: Retail

    Retail ⎮Higher 9M 2019 net income before Zakat from higher operating income 9M 19 Net Income Before Zakat & Income Tax Movement Management Commentary (SARmn) 6,000  Net income before zakat for 9M 2019 increased by 29% YoY driven +29% 5,000 principally by 16% higher operating income. 1,044 56 90 4,1

  17. Slide 17: Corporate

    Corporate ⎮9M 2019 growth in net income before Zakat from lower impairment charge 9M 19 Net Income Before Zakat & Income Tax Movement Management Commentary (SARmn)  9M 2019 Net income before zakat increased 12% YoY due to 38% lower 2,500 +12% impairment charges. 2,000 217 0 1,867  9M 2019 Operatin

  18. Slide 18: Treasury

    Treasury ⎮Net income before Zakat in 9M 2019 relatively stable YoY 9M 19 Net Income Before Zakat & Income Tax Movement Management Commentary (SARmn) 1,200  9M 2019 Net income before Zakat improved modestly by 1% YoY driven 1,000 +1% by 81% lower impairment charges, partly offset by 3% higher operat

  19. Slide 19: Capital Markets

    Capital Markets ⎮10% YoY growth in 9M 2019 net income, driven by higher other income and lower operating expenses 9M 19 Net Income Before Zakat & Income Tax Movement Management Commentary (SARmn) 400  9M 2019 Net income before zakat increased by 10% YoY due to lower +10% operating expenses (-10%) a

  20. Slide 20: International

    International ⎮9M 2019 TRY net income before Zakat decreased by 51% YoY, due to NPL inflows and impairment charges, and inflationary pressure on operating expenses 9M 19 Net Income Before Zakat & Income Tax Financing & Advances, net Customers' Deposits (SARbn) Movement (SARmn) (SARbn) 700 50 50 600

  21. Slide 21: NCB welcomes your feedback and inquiries

    Additional Information ⎮NCB welcomes your feedback and inquiries Contact Us More Information The National Commercial Bank Visit: http://www.alahli.com/en-us/Investor_Relation P.O. Box 3555 to access NCB’s current and previous Investor Publications including: 21481 Jeddah, Kingdom of Saudi Arabia  F

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