Saudi National Bank · TADAWUL:1180
Saudi National Bank — The National Commercial Bank — Q2 2019 Earnings Presentation
20 slides from Saudi National Bank's earnings presentation, 2019
Slide 1: Earnings Presentation 2Q 2019 Results
The National Commercial Bank Earnings — Presentation \ Y 20 2019 Result
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
Slide 3: 2Q 2019 Results
: 2Q 2019 Results
Slide 4: NCB is Saudi Arabia's leading bank
NCB is Saudi Arabia’s leading bank, with a vision to be the premier financial services group in the region 4
Slide 5: NCB Strategy and 1H 2019 Achievements
NCB Strategy and 1H 2019 Achievements Share Narrowing the gap with competition Retail financing market up 80bps in 10 2019 to reach 21.5% Retail Financing up 6% YTD to SAR 110bn 21% Mortgage Financing growth YTD to SAR 29bn Digital Transformation . NCB Investor Relations | 2Q 2019 Earnings Presentat
Slide 6: NCB Strategy and 1H 2019 Achievements: Subsidiaries
NCB Strategy and 1H 2019 Achievements | Subsidiaries Grow Value contribution of Subsidiaries _ Cell enieis . __ _thtenmettome ‘ f 77 = ee Juyiowlail Ry Tiirkiye ®. NCBC is the Largest Investment Bank & Asset Manager TFKB is an efficient. growing franchise in a large in KSA regional market = Continue
Slide 7: Financial Results 2Q 2019 Results Update
Financial Results 42019 Resul Update esults Net Income after Zakat and Income Tax attributed To Equity = 15% net income after Zakat growth Holders (SARbn) 024 0330.08 010 5.46 = 3% NSCI growth 477: (ss es ee = igen = 13% increase in fee and other income | (0.05) | Statement = 2% lower operating expe
Slide 8: Guidance and Outlook
Guidance and Outlook | 2019 Macroeconomic Outlook = Average Arabian light oil price of USD 65 per barrel = 1-2 25bps US Fed rate cuts in 2019 (revised from two 25bps rate hikes} = 2019's expansionary fiscal policy is expected to underpin GDP and Credit growth KSA 2019 Budget Projections = Real GDP g
Slide 9: Financial Results Update
Financial Results Update 2Q 2019 Results mat —
Slide 10: Income Statement
Income Statement — Higher 2Q 2019 net income derived from higher operating income and lower Zakat and Tax Profitability Trends SAR (mn) 20 2019 10 2019 2a2oie YON % 1H 2019 tH2018 YOY % change change Net special commission income 3.669 3,562 3,573 43% 7.231 6.992 43% Fee and other income : : 1386 13
Slide 11: Balance Sheet
Balance Sheet 6% YTD increase in total assets on the back of growth in Financing and Investments Balance Sheet SAR (mn) za2019 = 102019» 202018. | YY % ey agg = YTD % change change Cash & Banks 45,621 45,728 53,861 -15% 48,479 -6% Investments, net 126.630 123,419 114,978 +10% 118.090 +7% Financing a
Slide 12: Operating Income
Operating Income Highlights Total Operating Income (SARbn) 5.05 2Q 19 Total Operating Income Movement (SARbn) 0.36 466 012 co — — (0.09) Higher 2Q 2019 total operating income driven by net special commission income, fees and investment related income Domestic 2018 1019 2019 2018 NSCI Fee and other i
Slide 13: Net special commission income trends
Net special commission income trends Net Special Commission Income SAR (mn) Special commission income Special commission expense Net special commission income Commission yield (%) Funding cost (%) : Net special commission margin (%) Net Special Commission Margin (%) aay, 466% 452% 3.87% 3.48% 362% 3
Slide 14: Fee and other income trends
Fee and other income trends acome Fees from Banking services 2Q 2019 fess and other income grew by 27% YoY due to higher fee and investment SAR (mn) 2Q 2019 1Q 2019 2Q 2018 Years 22 1H 2019 1H 2018 Years 22 change change Finance and lending 423 364 358 +18% 786 716 +10% Trade finance 99 104 121 -19%
Slide 15: Expense highlights
Expense highlights savings in 2Q 2019 Operating Expenses (SARmn) 1 -2% 1.698 1.618 1.670 i i I : I : 20 18 1019 2019 mEmployee-related mRent & premises ODepreciation & amortization mOther G&A 1H 19 Operating Expenses Movement (SARmn) Digitization, productivity enhancement and optimization delivered
Slide 16: Financing and advances credit quality
Financing and advances credit quality NPL (SARbn) 20 18 30 18 40 18 1019 2019 ‘mCorporate Consumer and credit card international wOthers Impairment Allowance (SARbn) 779 20 18 30 18 40 18 1019 20:19 Corporate Consumer and credit card Olnternational mOthers NCB Investor Relations | 2Q 2019 Earnings P
Slide 17: Financing and advances credit quality (Continued)
Financing and advances credit quality (Continued) NPL Ratios (%) NPL Coverage Ratios (%] 5.2% 185% | Stable NPL ratio and higher NPL coverage maintained 50) 161% 154% 142% 145% 145% O ) oy 14% 16% 16 15% 15% 96% 93% 90% 83% Bie —o— Domestic ome international = © = Group NPL ratio —o—= Domestic ome i
Slide 18: Domestic financing and advances credit quality
Domestic financing . Corporate NPL ratio have improved while consumer and credit card NPL ratio and advances credit ‘ maintained quality NPL Ratios (%) NPL Coverage Ratios (%] 25% 25% p 8s 20% 24% 23% 305% —— =) 288% 279% 264% 257% oO 7 4 © 164% 5 05% 05% 06% 05% oes ee 136% 141% 142% —O =o==Corpora
Slide 19: Additional Information
Additional Information 2Q 2019 Results
Slide 20: Additional Information
Additional Information NCB welcomes your feedback and inquiries Contact Us More information National Commercial Bank Visit: http://wwwalahliicom/en-us/Investor Relation P.O. Box 3555 21481 Jeddah, Kingdom of Saudi Arabia to access NCB’s current and previous Investor Publications including: Financial
The National Commercial Bank — Q2 2019 Earnings Presentation on 6ix