Login Get Started
HelpDesk
 Embed  Download
  of  

or
Sign in to continue reading...

National Commercial Bank: Investor Presentation 3Q 2018 Results

IM Insights
By IM Insights
5 years ago
National Commercial Bank: Investor Presentation 3Q 2018 Results

Participation, Sales

Organisation Tags (6)


Create FREE account or Login to add your comment
Comments (0)


Transcription

  1. National Commercial Bank Investor Presentation 3Q 2018 Results NCB Investor Relations 3Q 2018 Investor Presentation 1
  2. 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 otherwise 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. NCB Investor Relations 3Q 2018 Investor Presentation 2
  3. Investor Presentation Contents NCB Investor Relations 3Q 2018 Investor Presentation 04 NCB – The leading KSA bank 12 Grow with KSA, Grow with NCB 18 Strategy Overview 29 Financial Results Highlights 37 Financial Results Details 51 Segmental Overview 59 Additional Information 3
  4. National Commercial Bank The leading KSA bank 3Q 2018 Results NCB Investor Relations 3Q 2018 Investor Presentation 4
  5. NCB is the leading banking group in Saudi Arabia (1) Established in 1953; IPO in 2014 NCB Snapshot (9M 2018) 7mn Clients SAR 13,293 459bn Employees* Assets SAR 325bn Deposits SAR >130bn Market Cap Wholesale branch in Bahrain Offices: Singapore, Seoul, Shanghai Subsidiary in KSA: NCB Capital Subsidiary in Turkey: Türkiye Finans Katılım Bankası Jeddah HQ *Includes Alahli Esnad (1,541 employees) - fully owned subsidiary engaged in recruitment services within KSA NCB Investor Relations 3Q 2018 Investor Presentation 5
  6. NCB is the leading banking group in Saudi Arabia (2) NCB has a strong market and financial position (FY 2017) Market Position by KSA Assets #1 Corporate banking Financing Retail banking Overall banking Treasury Asset Management Brokerage Financial Position KSA GCC Assets #1 #4 #1 Financing #1 #4 Financing #2 Deposits #1 #3 Investments #1 Investments #1 #1 AUMs #1 Total Operating Income #1 #3 Value Traded #3 Net Income #1 #3 Assets (SARbn) Financing (SARbn) Deposits (SARbn) 500 450 400 350 300 250 200 150 100 50 0 300 350 444 250 249 200 343 228 300 234 193 200 139 100 122 118 50 Rajhi NCB Investor Relations 3Q 2018 Investor Presentation Samba Riyad BSF 168 150 154 151 Riyad BSF 100 50 0 0 NCB 273 250 150 216 309 NCB Rajhi Riyad 6 BSF Samba NCB Rajhi Samba
  7. NCB is the leading banking group in Saudi Arabia (3) Key KPIs compared to Saudi Arabian banking peers (FY 2017) Industry Peers (ex NCB) SR (bn) CAGR +4% 500 400 300 Financing and 200 advances, net 249 221 100 300 +4% 35 18 16 +1% 300 200 100 100 139 133 2017 +5% 200 2017 35 35 30 25 25 16 8 8 15 10 5 5 5 0 0 0 14 Net income 12 10 attributable 8to equity holders 6 2014 2017 +10% 18 16 8.7 9.8 14 12 10 4 6.8 9.1 2014 15 20 7 6 6 6 4 4 4.4 2014 2017 8 6 10 3.5 3.5 4 8 2 2 2 2 0 0 0 0 NCB Investor Relations 3Q 2018 Investor Presentation 2017 2014 2017 2014 2017 7 50 40 5.0 5.0 2014 2017 2017 +2% 32.8 35.2 2014 2017 30 20 4 2 2014 60 +0% 6 0 2014 2017 12 10 68 60 0 2014 14 +0% 12 +5% 60 20 14 3.9 8 0 18 8 80 0 16 10 14 40 18 8 2017 120 100 5 16 -3% -17% 5 18 12 2014 0 2017 15 16 14 1,129 1,000 10 2017 1,045 500 25 20 10 2017 +4% 25 20 118 2014 30 14 124 0 2017 35 15 +4% 200 30 +0% 1,500 100 2014 10 18 122 117 0 2014 -2% 300 100 10 16 +2% 300 +3% 2,000 400 30 20 2014 500 400 0 2014 35 30 20 234 206 200 2017 500 400 0 2014 Total operating 15 income 500 400 0 25 +4% 500 10 0 2014 2017
  8. NCB has a well-diversified business model Total operating income contribution 3 .8bn 20% TREASURY SAR 16.1bn 88% 1.6bn 9% 636mn 3% 4.5bn 25% CORPORATE Capital Markets NCB 401 branches, 3,624 ATMs 153 Remittance centers 7,714 Employees 96% Saudization 100% CEO DRs International 7.9bn Türkiye Finans Katılım Bankası (TFKB) 301 branches, 600 ATMs 3,751 employees 43% RETAIL Notes: KSA based recruitment services firm Alahli Esnad (fully owned subsidiary) employs 1,541 persons Operating Income as of FY 2107 NCB Investor Relations 3Q 2018 Investor Presentation 8 NCB Capital Largest Asset Manager in KSA Largest Shariah-compliant Asset Manager worldwide Top 3 Broker 22 locations 287 Employees
  9. NCB has a strong financial position Key KPIs Total Equity (SARbn) Total Assets (SARbn) 120 +11% +4% 800 100 700 600 449 435 377 500 443 444 80 60 400 300 43 47 2013 2014 56 60 64 2015 2016 2017 40 200 20 100 0 0 2013 2014 2015 2016 2017 CAGR CAGR Capital Ratios (%) Liquidity Ratios (%) 22.0% 19.2% 20.0% 18.0% 17.1% 17.2% 17.2% 16.9% 2 20.0% 16.2% 14.0% 17.7% 1 1 15.7% TC ratio T1 ratio 0 CET1 ratio 2014 2015 78.1% 80.7% Liquidity coverage ratio (LCR) Financing to customer deposit ratio 2013 2015 0 2016 2017 2014 LCR is based on 4Q average numbers LCR was not reported before 2015 Capital ratios are based on Pillar I RWA NCB Investor Relations 3Q 2018 Investor Presentation 66.3% 1 10.0% 2013 62.4% 0 13.5% 12.0% 80.3% 1 1 15.3% 14.7% 177.3% 2 15.1% 16.0% 172.5% 152.3% 2 9 2016 2017
  10. NCB has a strong performance track record Key KPIs Total Operating Income (SARbn) 35 +5% 30 18 +6% 16 25 20 14.9 16.2 15 4.8 4.8 10 5 Net Income Attributed To Equity Holders (SARbn) 11.4 10.1 17.5 18.6 18.3 4.9 5.1 4.7 14 12 10 7.9 8.7 9.1 9.3 9.8 2014 2015 2016 2017 8 13.7 13.5 12.6 6 4 2 0 0 2013 2014 2015 2016 2017 Net special commission income Fee and other income 2013 CAGR Net Special Commission Margin (%) CAGR Cost to Income Ratio (%) 5.00% Returns (%) 0 50.0% 45.0% 4.00% 3.00% 2.99% 2.91% 3.04% 3.35% 3.48% 30.0% 39.0% 39.0% 19.2% 7.0% 17.8% 37.4% 37.7% 17.4% 35.2% 0 0 15.0% 6.0% 5.0% 20.0% 1.00% 8.0% 0 25.0% 2.00% 20.1% 0 40.0% 35.0% 20.0% 4.0% 2.2% 2.2% 2.1% 2.1% 2.2% 3.0% 2.0% 10.0% 0 1.0% 5.0% 0.00% ROE common shares (%) 0.0% 2013 2014 NCB Investor Relations 3Q 2018 Investor Presentation 2015 2016 2017 ROA (%) 0 2013 2014 2015 10 2016 2017 0.0% 2013 2014 2015 2016 2017
  11. NCB Group listed on Tadawul in November 2014 Ranked third in Tadawul , S&P Pan Arab and MSCI Indices with significant weightings Share parameters 30 Sep 2018 Closing Price (SAR) 45.05 52 week range (SAR) 31-49 Free Float 36% Shares issued (mn) MSCI Saudi Arabia Index Float Adj. Mcap (USDb) Weighting (%) SABIC 24.72 18.10 3,000 Al Rajhi Bank 18.30 13.40 Tangible Book Value (SARmn) 55.315 Tangible BVPS 18.44 National Commercial Bank 14.08 10.31 P/TBV Ratio 2.4x Saudi Telecom (STC) 8.99 6.58 Samba Financial Group 8.19 6.00 P/E Ratio (FY 2017 earnings) 14.26x Div Yield (FY 2017 dividends) 2.52% 3m Avg Daily Volume (shares) 1,010.525 Source: NCB, Bloomberg Source: MSCI, 28 September 2018 Share price performance since IPO (SAR) (Adj price) 55 50 45 40 35 30 25 20 15 10 5 0 Nov-14 Ratings LT ST Outlook S&P BBB+ A-2 Stable Fitch A- F1 Stable Moody’s* A1 P-1 Stable Capital Intelligence A+ A1 Negative National Commercial Bank Government of Saudi Arabia Apr-15 Source: Bloomberg Sep-15 Feb-16 Jul-16 Dec-16 May-17 Oct-17 Mar-18 Aug-18 A- Stable Fitch A+ Stable Moody’s A1 Stable Capital Intelligence A+ Negative *Moody’s rating is unsolicited Trading commenced 12/11/2014. Day 1 at SAR 33 NCB Investor Relations 3Q 2018 Investor Presentation S&P 11
  12. National Commercial Bank Grow with KSA , Grow with NCB 3Q 2018 Results NCB Investor Relations 3Q 2018 Investor Presentation
  13. Improving economic conditions Domestic economic and fiscal indicators continue to improve Global macro headwinds persist Oil Market Twin Balances (%) 12 140 10 120 100 8 18.1% 9.7% 6.4% 15.0% 80 6 11.3% 2.2% 5.0% 60 4 40 2 20 0 0 2009 Title 2010 2011 2012 2013 2014 2015 2016 2017 2018 Title Foreign Reserves (USDbn) 900 754 768 800 36 43 670 568 2013 529 538 10,000 39 35 9,000 500 300 -25.0% 610 529 490 503 2016 2017P -3.5% 2018F 7,000 6,000 100 5,000 0 2014 2015 -12.9% -9.2% 8,000 200 2013 2014 -3.7% 11,000 39 725 -8.7% -14.8% 12,000 600 718 -2.3% -15.0% Stock Market 60 700 -5.0% Budget Balance / GDP Current Account Balance / GDP Saudi Oil Production, LHS Arabian Light Spot Price, RHS 400 25.0% 2015 2016 2017 8M 2018 SAMA Banks Source: Thomson Reuters, Ministry of Finance, SAMA, Tadawul, and NCB Economics Forecasts NCB Investor Relations 3Q 2018 Investor Presentation 13 4,000 Dec-13 Jul-14 Tadawul Index Feb-15 Sep-15 Apr-16 Nov-16 Jun-17 Jan-18 Aug-18
  14. Saudi banking sector Banking profitability likely to remain resilient on the back of rising rates , as well as ongoing and upcoming government stimuli in support of private sector and individuals Bank Lending (SARbn) 3,500 12.0% 11.6% 8.9% 15.0% 2.9% 3,000 2,500 2,000 1,500 1,121 1,251 1,362 Bank Deposits (SARbn) Interbank Rates (%) 1,400 -1.0% 1,387 0.9% 1,430 2.72% 0 4,000 10.0% 0 3,500 5.0% 0 3,000 0.0% 0 -5.0% -10.0% 2.40% 0.99% 12.4% 11.2% 10.0% 2,500 0 2,000 0 1,500 0 1,000 1,402 1,576 -15.0% 1,000 -20.0% 0.30% (0) 500 -25.0% -30.0% 0 2013 2014 2015 2016 2017 9M 2018 (0) 2013 3M SAR SAIBOR 3M USD LIBOR 2014 2015 2016 2016 5.7% 140 120 100 69.4 75.8 80.0 3.8% 83.1 4.3% 4.7% 86.6 60 42.9 40 20 44.9 0 2014 2015 0.1% 1.0% 2016 2017 9M 2018 0.0% -5.0% 2017 9M 2018 2018 -10.0% 2013 2014 2015 Profits (SARbn) 80 2013 0.8% 1.9% 5.0% Deposits Growth Rate (YoY%) 9.1% 160 1,636 1,617 0 2013 Total Operating Income (SARbn) 6.8% 1,619 1,605 500 Bank credit, private and public sectors Growth Rate (YoY%) 180 15.0% 2016 2017 10.1% 100 8.1% 90 6.1% 80 4.1% 70 2.1% 60 0.1% 50 -1.9% 40 -3.9% 30 -5.9% 20 -7.9% 10 -9.9% 0 2018 7.2% 9.5% 12.0% 10.0% 5.4% 37.6 41.5 8.0% 43.7 41.3 45.0 4.0% 2.0% 0.0% -2.0% -5.4% 23.0 25.1 2017 2018 -4.0% -6.0% -8.0% 2014 Profits (1H) Profits Growth Rate (YoY%) 14 8.7% 6.0% 2013 Profits (1H) Profits (FY) Growth Rate (YoY%) Source: Thomson Reuters, SAMA, Banks’ Annual Reports NCB Investor Relations 3Q 2018 Investor Presentation 10.2% 2015 2016
  15. Vision 2030 Saudi Arabia ’s vision 2030 establishes a clear roadmap to accelerate economic growth Pillars Objectives Grow & diversify the economy A Thriving Economy Increase employment A Vibrant Society Strengthen Islamic values & national identity Offer a fulfilling & healthy life An Ambitious Nation Enhance government effectiveness Enable social responsibility NCB Investor Relations 3Q 2018 Investor Presentation Selected Goals & KPIs  Lower the rate of unemployment from 11.6% to 7%  Increase the Public Investment Fund’s assets to over SAR 7 trillion Vision Realization Programs Enriching the Hajj and Umrah Experience National Transformation Program PIF Program  Increase the private sector’s contribution from 40% to 65% of GDP National Industrial Development and Logistics Program  Raise the share of non-oil exports in non-oil GDP from 16% to 50% Financial Sector Development Program  Increase the localization of oil and gas sectors from 40% to 75%  Increase SME contribution to GDP from 20% to 35%  Increase FDI from 3.8% to the international level of 5.7% of GDP  Raise non-oil government revenue from SAR 163 billion to SAR 1 trillion  Increase women’s participation in the workforce from 22% to 30% 15 Lifestyle Improvement Program National Companies Promotion Program Strategic Partnerships Program The Housing Program Privatization Program Saudi Character Enrichment Program Fiscal Balance Program
  16. NCB is aligned with Government priorities NCB is a key contributor to economic transformation and the Financial Sector Development Program (FSDP) objectives Enabling financial institutions to support private sector growth  Leading lender for KSA companies with a portfolio of SAR 133bn; 15% Corporate market share (2Q 2018)  A leading supporter of the development of the SME market, working with over 115,000 SMEs across KSA  Primary Dealer in local government securities  SAR 51bn KSA Gov. Bond investment portfolio Vision 2030 Objectives Directly Related to the FSDP Developing an advanced capital market  Trusted partner and lead advisor in Capital Markets and M&A Activities (KSA Government, ARAMCO, SEDCO Capital REIT Fund, Ma’aden Phosphate Company, Ma’aden Aluminum Company, Taiba Holding Company)  Largest Corporate Savings Advisor, with approximately 50,000 individual participants  Provided home financing for more than 32,000 Saudi families with a portfolio of SAR 22.5bn Promoting and enabling financial planning NCB Investor Relations 3Q 2018 Investor Presentation  Driving inclusive financial services access in KSA through extensive branch network as well as digitization and mobile penetration  Expanding participation in the financial services sector with 6 million KSA based customers, large POS network and full suite of Takaful protection and savings products 16 NCB leverages competitiveness and scale to deliver value to its stakeholders and support the national agenda
  17. Projected economic upturn Rising government expenditure is expected to offset a higher interest rate environment Ongoing expansion of non-oil private GDP should reflect positively on banking growth Government Revenue (SARbn) 106 97 2,000 1,500 1,000 500 1,156 1,044 121 131 1,035 913 50 616 169 446 41 519 186 334 52 692 256 436 73 73 66 90 70 926 1,025 1,064 326 289 368 2015 2016 800 10 600 -30 200 -50 5.4% 2,900 2,400 2.7% 3.7% 3.4% 1,900 1,400 917 664 370 312 2014 2.4% 3.0% 1.7% 1.2% 0.1% -0.8% 1.0% 2.4% 4.0% 5.0% 1.8% 0.0% -5.0% 3,000 2,500 2,000 10.9% -15.0% 400 (100) -20.0% 2016 714 696 722 825 888 915 600 264 134 2% 2% 60 44 2013 2014 400 208 205 218 200 228 2015 2016 2017P 2018F 2019F 2020F 2017 2018F 2019F 2020F Non-Oil Private GDP Growth Rate (YoY%) Non-Oil private sector Growth Rate (YoY%) Real GDP 6% 317 17% 443 19% 576 21% 678 24% 1,545 25% 754 14.0% 3,500 12.0% 3,000 10.0% 2,500 8.0% 2,000 6.0% 1,500 4.0% 1,000 2.0% 500 0.0% 0 1,500 2.5% 0.8% 0.2% 500 1.7% 4.3% 4.8% 0 2013 2014 2015 2016 Money Supply Growth Rate (YoY%) Source: Ministry of Finance, Fiscal Balance Program, and NCB Economics Forecasts NCB Investor Relations 3Q 2018 Investor Presentation 15% 10% 5% 142 0% -5% -10% 2015 2016 2017 2018F 2019F 2020F 2017 2018F 2019F 2020F 12.0% 11.6% 8.9% 2.9% -1.0% 5.4% 2.4% 4.6% 1,564 1,362 1,400 1,387 1,420 1,485 1,251 1,121 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% -30.0% 2013 2014 2015 2016 2017 2018F 2019F 2020F Bank credit, private and public sectors Growth Rate (YoY%) 17 20% Bank Lending (SARbn) 1,899 1,991 1,729 1,773 1,787 1,791 1,821 1,000 30% Domestic Public Debt Debt to GDP Ratio (%) 11.9% 900 2015 13% 800 Money Supply (SARbn) 967 999 1,000 1,012 1,022 1,046 1,088 2014 1,000 Capex Current Expenditure (Opex) -10.0% 2013 1,200 0 2013 10.0% 4.1% 740 830 930 1,106 1,143 0 2017P 2018F 2019F 2020F Real GDP - Total vs. non-oil private sector (SARbn) 7.0% 978 1,030 400 Oil Revenues Non-oil Revenues Average Oil Price (USD) 3,400 976 1,000 30 -10 637 699 696 1,200 50 -70 2014 1,110 110 0 2013 Government Debt (SARbn) Government Expenditure (SARbn)
  18. National Commercial Bank Strategy Overview 3Q 2018 Results NCB Investor Relations 3Q 2018 Investor Presentation
  19. NCB ’s strategic plan is all about execution Our strategic objectives are supported by productivity enablers Expand reach with lean branches Lean Distribution Strategic enablers Anywhere, anytime, instant banking Digitization Expand share of retail profits Retail Banking Grow in Vision 2030 targeted sectors and resilient SME’s Corporate Banking Strategic objectives NCB Investor Relations 3Q 2018 Investor Presentation Diversify funding, sustain investment returns and cross-sell Treasury NCBC Generate AUMs and cater to GRE’s growing needs TFKB Increase profit contribution 19
  20. NCB continues to deliver on its strategic plan 9M 2018 Highlights Lean Distribution Digitization Retail Banking Corporate Banking Treasury NCB Investor Relations 3Q 2018 Investor Presentation Optimization of branch network for productivity on going , 3 new format branches added year to date at 6 FTEs Sustain increase in active digital users, with digital channels capturing 97% of branch financial transactions Retail portfolio increased by 7% mainly on growth in mortgage including strong progress on REDF acquisition Achieved double digit growth in Corporate financing, up 11% Active Primary Dealer in local government securities YoY NOR growth driven by double digit increase in NSCI NCBC Continued growth in Net Income from YoY AUM increase, while maintaining cost discipline TFKB Maintained strong liquidity and capitalization levels. Improved branch and employee productivity. Increased loan and deposit market share 20
  21. Lean distribution We accelerated expansion of our distribution platform in Saudi Arabia and are streamlining branch formats to enhance productivity gains Cost to Income Ratio (%) Strategic Imperatives  Continue expanding our distribution reach to acquire customers and grow market share 1 -10% 1 1  Optimize costs of existing branch network 0  Equip branches with self-service/assisted-service technologies 0  Enhance the in-branch sales and service model to improve customer experience 39.0% 35.2% 200 100 0 0 2014 2017 2014 1 -0% -9% 20 +22% 4 +18% 2017 Operating Income / FTE (SARmn) Front / Back Office Ratio (%) 1 3 12,000 10,000 342 300 0 FTE / branch 400 500 400 0 14,000 +17% 700 600  Expand with smaller branches that are headcount efficient Bank Headcount (NCB employees) Number of Branches 8,021 7,991 15 12.1 1 11.0 1 8,000 10 60% 71% 2 1 6,000 1.65 2.02 2 0 4,000 3 1 5 0 2,000 0 2017 NCB Investor Relations 3Q 2018 Investor Presentation 0 0 0 2014 1 2014 2014 2017 21 2017 2014 2017
  22. Digitization Migrate customers to digital through superior user experiences Strategic Focus Areas  Mobile first - anytime, anywhere  Consistently lead KSA banks in functionality and userexperience  Expand end-to-end digital sales capability  Expand subscription base and incentivize usage  Leverage data and analytics to drive sales effectiveness Digital Transactors (% of total base) Branch Financial Transactions (% of total) Digital Transactions (mn) 1 +54% 1 +47% 90 -21% 0 80 0 70 1 37% 50.1 60 8% 0 0 50 0 0 19.4 40 15.8 30 10% 20 0 13.0 10 0 2.8 30.7 0 0 0 2014 2017 CAGR NCB Investor Relations 3Q 2018 Investor Presentation 4% 0 0 Online Mobile 2014 2017 2014 CAGR 22 2017 CAGR
  23. Retail Banking We are transforming retail distribution to increase share of profits Strategic Focus Areas  Grow market share in consumer finance  Grow deposits in key segments (Mass/ Affluent/ GRE)  Expand and optimize branch network  Drive digital migration  Continue improving customer satisfaction Consumer Financing & Advances, net (SARbn) Operating Income (SARbn) 35.0% +6% 160 16 7 +12% 14 140 Net Income (SARbn) 12 120 100 74 89 25.0% 20.0% 60 20 17.4% 19.5% 4 3 1.6 2 15.0% 1 2 10.0% NCB Investor Relations 3Q 2018 Investor Presentation 5.7 6 4 0 2014 Market Share (%) 3.8 5 8.1 10 8 80 40 +35% 6 30.0% 2017 0 0 2014 2017 CAGR 2014 CAGR 23 2017 CAGR
  24. Corporate Banking Grow selectively and increase risk-adjusted returns Strategic Focus Areas  Build a deal pipeline in V2030 target sectors  Cross sell treasury and cash management  Focus on portfolio quality and proactively manage risk  Drive migration to digital channels  Expand collection capacity and increase recoveries Corporate Financing & Advances, net (SARbn) Total Operating Income (SARbn) +5% 8 200 150 108 4 6 5 4.2 3.7 -13% 5 +4% 7 124 Net Income (SARbn) 3.2 2.1 3 4 100 2 3 2 50 1 1 0 0 2014 2017 0 2014 2017 CAGR NCB Investor Relations 3Q 2018 Investor Presentation 2014 CAGR 24 2017 CAGR
  25. Treasury Broaden and deepen liquidity access while sustaining investment returns and cross-sell Strategic Focus Areas  Execute international hubs strategy  Expand wholesale funding program  Maintain the high quality/liquidity and profitability of the investment book  Support the development of the sukuk capital markets  Underpin Islamic product innovation Saudi Government and Investment Grade Investments as % of Total Investments as % of Total Assets 2 2 1 1 1 94% 91% 0 1 200 -10% 1 -1% 2 HQLA and Liquidity Coverage (SARbn/%) 180 35% 140 120 26% 0 0 0 0 0 2014 2017 2017 CAGR NCB Investor Relations 3Q 2018 Investor Presentation 160.0% 100 95 CAGR 25 140.0% 120.0% 100.0% 80 80.0% 60 60.0% 40 40.0% 20 20.0% 0 2014 200.0% 180.0% 100 0 0 152.3% 160 1 1 177.3% 0.0% 2015 High quality liquid assets (HQLA) Liquidity coverage ratio (LCR) HQLA is group-wide 4Q average LCR shows 4Q average 2017
  26. NCB Capital KSA ’s leading investment bank and asset manager; well positioned to capture future growth Strategic Focus Areas  Grow recurring revenues by gathering more AUMs, launching new products, growing Corporate Savings business  Set the stage for future market upturn by growing brokerage market share and continuing to invest in NCBC capabilities  Build on market leadership, landmark IB mandates to support GREs as well as local and foreign institutional clients  Continue to focus on increasing efficiency, improving productivity to bolster resilience Tadawul Traded Value (SARbn) & TASI Index 5,000 9,000 4,500 4,000 8,000 8,333 7,226 3,500 3,000 2,500 7,000 NCBC Traded Value (SARbn) & Market Share (%) 1,000 900 11.4% 11.8% 800 NCBC Share of Sector Net Income (%) (SARbn) 0 250 14.0% +134% 12.0% 0 200 490 129 10.0% 150 5,000 0 2,000 0 400 836 6.0% 100 198 3,000 300 55 0 4.0% 2,000 1,000 500 1,000 0 0 2017 Tadawul Traded Value TASI Index NCB Investor Relations 3Q 2018 Investor Presentation 10.1% 0 200 50 0 2.0% 2014 17.6% 8.0% 500 4,000 1,500 +7.5ppt 0 700 6,000 600 2,147 NCBC Assets under Management (SARbn) 100 0 0 0.0% 2014 0 2014 2017 NCBC Traded Value Market Share (%) 26 2017 2014 2017
  27. T ürkiye Finans Katılım Bankası We are executing a transformation program to grow TFKB’s net income Strategic Focus Areas  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) Total Assets (TRYbn) Total Operating Income (TRYmn) 3,500 +5% 70 60 50 40 34 39 Net Income (TRYmn) 0 700 +10% TFKB Contribution to NCB Net Income (%) +4% 3,000 600 0 2,500 500 0 2,000 1,914 400 1,446 334 375 0 1,500 300 0 20 1,000 200 0 10 500 100 0 30 0 0 2014 2017 CAGR 0 2014 2017 Note: Figures according to BRSA accounting standards NCB Investor Relations 3Q 2018 Investor Presentation 27 2.9% 3.2% 0 2014 CAGR +3% 2017 CAGR 2014 2017 CAGR
  28. Three Strategic Priorities for 2018 NCB ’s strategy continues to be all about execution 9M 2018 Update  Win mandates in vision 2030 targeted sectors Position Corporate Banking for growth  Resume growth in SMEs by targeting resilient sectors  Optimize operating model to improve platform productivity  Reduce cost of credit through proactive remedial management and recoveries 2. Grow Residential Finance  Position NCB as the preferred funding partner  Leverage National housing initiatives  Leverage branch expansion for customer acquisition 3. Current Account and Capital Base Focus  Drive focus on current account growth to maintain funding advantage  Sustain capital base to support credit growth 1. NCB Investor Relations 3Q 2018 Investor Presentation 28 Grew Corporate loan portfolio by 11% Grew mortgage portfolio by 13% Grew Current Accounts by 9%
  29. National Commercial Bank Financial Results Highlights 3Q 2018 Results NCB Investor Relations 3Q 2018 Investor Presentation
  30. Key messages 9M 2018 Results Financing (SARbn)  3% increase in total assets 600 +8% +5% 700 500  Strong financing growth of 8% Balance Sheet Deposits (SARbn) 800 600 400  2% investments growth 268 249 300 500 400 309 325 4Q 17 3Q 18 300 200  5% growth in customers’ deposits 200 100 100  Deposit mix improved 2% towards CASA (79%) 0 3Q 18  CoR improved to 48bps NPL & CoR (%)  Group NPL ratio at 1.8% NPL coverage at 154% Asset Quality, Capital & Liquidity  Capital position: CET1 of 15.9% and T1 ratio of 17.8%  Strong liquidity with LTD ratio of 82%, 0 1.9% 0 0 0 1.5% 1.3% 90% 82% 81% 80% 1.1% 0.9% 0 0.7% 8.02 CET1 and LTD (%) 0 0 15.7% 15.9% 70% 60% 0.7% 0 0 50% 0.5%0 0.5% 40% 0.3%  Average 3Q 2018 LCR of 184.4% 0 0 0  Leverage Ratio of 12.9% at 3Q 2018 0 4Q 17 Group NPL ratio Group CoR YTD NCB Investor Relations 3Q 2018 Investor Presentation 1.8% 0.04 9M 18  Impairments improved by 36% (0.18) 0.58 Other 9M 17  4% operating expenses increase (0.00) Expenses  Fee and other income stable 0.34 7.25 Non-NSCI 4 4 3 3 2 2 1 1 0 NSCI  3% NSCI growth Impairments Net Income Attributed to Equity Holders Movement (SARbn)  10.7% growth of net income Income Statement 0 4Q 17 30 3Q 18 30% 0.1% -0. 1% 20% 4Q 17 CET1 LTD 3Q 18
  31. Income Statement Higher 9M 2018 net income derived from higher operating income and lower impairments , partly offset by higher operating expenses Profitability Trends SAR (mn) 3Q 2018 2Q 2018 3Q 2017 YoY % change 9M 2018 9M 2017 YoY % change Net special commission income 3,637 3,573 3,453 +5% 10,629 10,286 +3% Fee and other income 1,094 1,087 1,038 +5% 3,542 3,544 -0% Total operating income 4,732 4,661 4,492 +5% 14,171 13,830 +2% Operating expenses (1,606) (1,692) (1,587) +1% (4,972) (4,792) +4% Total impairment charge (616) (340) (709) -13% (1,034) (1,611) -36% Income from operations, net 2,510 2,628 2,195 +14% 8,166 7,426 +10% Net income attributed to equity holders 2,454 2,579 2,126 +15% 8,020 7,246 +11% Total Operating Income (SARmn) Net Income Attributed to Equity Holders (SARmn) +5% 8,000 +15% 5,000 7,000 6,000 5,000 4,860 388 4,478 393 4,492 406 4,516 407 4,779 372 4,661 427 4,000 4,732 401 2,703 3,000 2,417 55 4,000 3,000 4,472 2,000 4,085 4,086 4,108 4,407 4,234 2,000 4,331 66 2,126 78 2,579 125 63 2,647 2,352 2,063 2,431 1Q 17 2Q 17 3Q 17 4Q 17 1,000 2,987 2,556 83 2,908 2,454 2,496 2,388 2Q 18 3Q 18 1,000 0 0 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 International Operating Income International net income Domestic net income Domestic Operating Income NCB Investor Relations 3Q 2018 Investor Presentation 31 1Q 18 65
  32. Balance Sheet 3 % increase in total assets; excluding 38% Turkish Lira depreciation the growth would have been 8% Balance Sheet Trends SAR (mn) 3Q 2018 2Q 2018 3Q 2017 YoY % change FY 2017 YTD % change Investments, net 116,504 114,978 116,900 -0% 114,578 +2% Financing and Advances, net 268,245 266,043 256,852 +4% 249,234 +8% Total assets 459,080 454,374 446,191 +3% 443,866 +3% 48,112 50,024 57,833 -17% 48,558 -1% 325,461 317,653 302,593 +8% 308,942 +5% 8,636 8,754 10,166 -15% 10,250 -16% 395,805 389,342 383,456 +3% 379,590 +4% Equity attributable to shareholders 55,504 57,007 54,433 +2% 56,041 -1% Total equity 63,274 65,032 62,736 +1% 64,276 -2% Due to banks and other financial institutions Customers' deposits Debt securities issued Total liabilities Financing & Advances, net (SARbn) 500 Customers' Deposits (SARbn) +5% +8% 450 Customers' Deposits Mix (SARbn) 500 400 350 300 250 200 254 257 257 249 253 266 268 27 9 27 8 27 8 26 10 25 12 24 16 20 16 99 95 90 91 88 93 93 150 100 130 132 131 50 120 123 131 133 0 400 300 315 314 66 12 55 12 59 12 58 13 61 325 318 309 309 303 11 53 13 55 12 International Deposits 6% 500 309 325 4Q 17 3Q 18 400 300 200 200 236 248 232 238 237 251 258 100 0 100 0 1Q 17 2Q 17 3Q 17 Corporate Consumer and credit card Others International 4Q 17 NCB Investor Relations 3Q 2018 Investor Presentation 1Q 18 2Q 18 3Q 18 1Q 17 2Q 17 3Q 17 4Q 17 CASA Time Others 32 1Q 18 2Q 18 3Q 18 Domestic Deposits 94%
  33. Segmental Information (1/3) 9M 2018 Total operating income growth mainly from retail and treasury. 3Q 18 Total Operating Income Movement (SARmn) 9M 18 Total Operating Income Movement (SARmn) 620 3,500 3,000 97 161 13,830 13 14,171 452 1,400 1 1,200 2,500 1,000 (549) 2,000 800 1,500 600 1,000 400 500 200 0 (95) 4,492 (112) 4,732 (5) 0 9M 17 Retail Corporate Treasury Capital Market International 9M 18 3Q 17 Total Operating Income (SARbn) 20 18 13.8 Corporate Treasury Capital Market 14.2 International 9% Retail 47% Capital Market 3% 16 14 4.5 4.7 3Q 17 3Q 18 5 4 12 Treasury 23% Treasury 18% 10 8 6 4 3 2 1 2 0 0 Corporate 18% NCB Investor Relations 3Q 2018 Investor Presentation 9M 17 International 3Q 18 Total Operating Income (SARbn) International 8% Capital Market 4% Retail 9M 18 Corporate 19% 33 Retail 51%
  34. Segmental Information (2/3) 9M 2018 Net income growth driven by retail. 3Q 18 Net Income Attributed to Equity Holders Movement (SARmn) 9M 18 Net Income Attributed to Equity Holders Movement (SARmn) 2,000 671 1,800 43 82 104 486 800 8,020 700 2 2,454 International 3Q 18 1,600 600 1,400 1,200 1,000 (126) 7,246 (74) 500 400 800 300 600 (80) (7) Treasury Capital Market 2,126 200 400 100 200 0 0 9M 17 Retail Corporate Treasury Capital Market International 9M 18 3Q 17 Retail Corporate Net Income Attributed to Equity Holders (SARbn) Net Income Attributed to Equity Holders (SARbn) International 3% International 3% Capital Market 4% 10 9 7.2 8.0 Retail 42% Capital Market 3% 8 7 6 5 4 3 2.1 2.5 3 2 2 4 1 3 1 2 Treasury 32% 1 0 Treasury 35% NCB Investor Relations 3Q 2018 Investor Presentation 9M 17 9M 18 Corporate 16% Corporate 7% 34 0 3Q 17 3Q 18 Retail 55%
  35. Segmental Information (3/3) 9M 2018 financing growth mainly driven by Corporate and Retail segments Total Assets (SARbn) Financing and Advances, net (SARbn) +3% 800 500 700 600 444 454 459 500 38 34 31 400 163 158 160 128 113 143 143 118 124 300 200 100 300 268 266 249 26 24 200 120 131 133 100 93 95 99 4Q 17 2Q 18 3Q 18 20 0 0 Retail 4Q 17 Corporate Treasury Capital Market International 2Q 18 3Q 18 Consumer and credit card Corporate International Other Customers' Deposits (SARbn) 600 Management Commentary  YTD 2018 Total assets increased by 3% due to higher Corporate (+11%) and Retail (+7%) financing and investments (+2%). +5% 500 400 309 22 300 42 8 200 +8% 400 318 47 20 9 325 52 237 242 247 4Q 17 Retail Corporate Treasury International 2Q 18 3Q 18 18  Customers’ deposits increased by 5% from the Retail segment. 8  Deposits mix improved with CASA balances at 79% of total deposits at 3Q 2018 compared with 77% at 4Q 2017. 100 0 NCB Investor Relations 3Q 2018 Investor Presentation 35
  36. Outlook Improved macroeconomic environment expected to drive growth 2018 Macroeconomic Outlook  Average Arabian light oil price of USD 73 per barrel  A total of four US Fed rate hikes Balance Sheet FY 2017 Reported 9M 2018 Reported FY 2018 Guidance FY 2018 Outlook Financing growth -2% +7.6% +5% to 8% Upper end of the range NSCI margin 3.48% 3.60% +5 to 15bps Upper end of the range Cost to income 35.2% 35.1% Below 35% Similar level to YTD of 25bps are expected in 2018 (Mar, Jun, Sep, Dec)  Government’s expansionary budget drives corporate lending activity going forward  Residential financing drives consumer lending growth Profitability  Budget deficit is expected to narrow to SAR 104bn  Real GDP growth is estimated to reach 2.4%  VAT and increased tariffs on utilities increases inflation to around 2.7% NCB Investor Relations 3Q 2018 Investor Presentation Capitalization and Asset Quality Tier 1 CAR 17.7% 17.8% 16% to 18% Upper end of the range Group Cost of Risk 0.7% 0.5% 0.6% to 0.8% Lower end of the range 36
  37. National Commercial Bank Financial Results Details 3Q 2018 Results NCB Investor Relations 3Q 2018 Investor Presentation
  38. Operating Income Highlights Higher 9M 2018 total operating income driven by net special commission income growth Total Operating Income (SARbn) Management Commentary  9M 2018 total operating income increased by 2% YoY from 3% higher net special commission income, while fee and other income remained stable YoY. 10 +2% 25 9 +5% 8 20 7 6 5 4 3 2 4.49 4.66 4.73 1.04 1.09 1.09 3.45 3.57 15 13.83 14.17 3.54 3.54 10.29 10.63 9M 17 9M 18  International operating income increased by 1% despite 20% depreciation of the average Turkish Lira rate as compared with 9M 2017. 10 3.64 5  3Q 2018 total operating income increased 5% YoY from a 5% improvement in both net special commission income and fee and other income. 1 0 0 3Q 17 2Q 18 3Q 18 Fee and other income  Excluding the International business, 3Q 2018 total operating income was 6% higher YoY. Net special commission income 3Q 18 Total Operating Income Movement (SARbn) 9M 18 Total Operating Income Movement (SARbn) 9 8 7 13.83 0.39 1.19 0.01 14.17 1.20 (0.06) 3 International 6 4.49 3 0.22 0.03 (0.01) 0.41 4.73 0.40 International 4.33 Domestic 2 5 2 4 3 12.97 12.64 Domestic 1 4.09 2 1 1 0 0 9M 17 NSCI NCB Investor Relations 3Q 2018 Investor Presentation Fee and other income International NOR 9M 18 3Q 17 38 NSCI Fee and other income International NOR 3Q 18
  39. Net special commission income trends 9M 2018 net special commission income growth of 3 %. Management Commentary Net Special Commission Income  9M 2018 NSCI improved by 3% on higher SCI (+5%), despite 13% increase in cost of fund due mainly to higher SAIBOR/LIBOR, while 3Q 2018 NSCI improved by 4%. SAR (mn)  The 3Q 2018 net special commission margin increased by 12bps YoY to 3.60% due to improved yields (+36bps).  Funding cost for 3Q 2018 was 32% higher YoY mainly due to higher SAIBOR/LIBOR rates. 3Q 2018 2Q 2018 3Q 2017 YoY % change 9M 2018 9M 2017 YoY % change Special commission income 4,700 4,442 4,264 +10% 13,370 12,690 +5% Special commission expense (1,063) (869) (810) +31% (2,740) (2,404) +14% Net special commission income 3,637 3,573 3,453 +5% 10,629 10,286 +3% Commission yield (%) 4.65% 4.50% 4.29% +8% 4.53% 4.32% +5% Funding cost (%) 1.14% 0.95% 0.87% +32% 1.00% 0.88% +13% 3.60% 3.62% 3.48% +4% 3.60% 3.50% +3% Net special commission margin (%) 0 0 3.55% 3.52% 3.52% 0 3.48% 5.00% 3.59% 0 4.00% 3.62% 3.60% 3.00% 0 3.46% 2.00% 3.56% 3.53% 3.43% 3.41% 1.50% Domestic 3Q 17 4Q 17 Group NCB Investor Relations 3Q 2018 Investor Presentation 0 0 2Q 18 International 3Q 18 9.30% 8.54% 8.47% 8.19% 7.55% 7.81% 6.40% 5.94% 5.10% 5.01% 4.27% 4.11% 4.43% 0 2.31% 0 0 1.74% 1.78% 1.79% 1.90% 0 4.08% 3.94% 3.92% 3.94% 4.06% 4.10% 4.19% (0) 0 2.59% 2.72% 2.40% 2.27% 2.34% 1.69% 0 0.50% 1Q 18 11.07% 1.00% 0.00% 2Q 17 0 2.50% 3.48% 0 1Q 17 0 4.50% 3.50% 0 0 4.66% 3.69% 2.89% 0 0 4.44% 3.95% 4.01% SAIBOR and LIBOR Rates (%) Commission Yield and Funding Cost (%) Net Special Commission Margin (%) 1.15% 1.30% 1.33% 0 0.61% 0.49% 0.52% 0.51% 0.51% 0.58% 0.71% 1Q 17 2Q 17 3Q 17 4Q 17 Domestic Yields International Yields 1Q 18 2Q 18 Domestic COF International COF 39 3Q 18 0 1Q 17 2Q 17 3Q 17 3M USD LIBOR (%) 4Q 17 1Q 18 2Q 18 3M SAR SAIBOR (%) 3Q 18
  40. Fee and other income trends Higher 9M 2018 fee and exchange income , offset by lower Investment income Fee and Other Income (SARmn) Fee Income +5% 2,300 6,500 5,500 1,800 1,038 1,300 281 97 1,094 1,087 289 86 369 4,500 22 3,500 809 802 300 3,544 638 890 3,542 466 920 2,385 2,464 1,500 500 (133) (200) (96) (100) (500) 3Q 17 2Q 18 Other operating income (expenses), net Investment-related income Exchange Income, net Fee income from banking services, net 3Q 18 9M 17 (369) 9M 18 (308) 9M 18 Drivers of Fee Income from Banking Services Movement (SARmn) 2,900 2,385 104 10 11 2,400 214 1,900 (13) International 2,297 Domestic 2,171 400 (100) 9M 17 Brokerage Finance & Credit cards & invmnt. lending Mngmnt. NCB Investor Relations 3Q 2018 Investor Presentation Trade finance Other YoY % YoY % 9M 2018 9M 2017 change change 400 109 358 121 373 131 +7% -17% 1,115 368 1,128 400 -1% -8% 129 133 117 +10% 426 311 +37% 24 35 106 39 50 109 32 38 101 -26% -9% +4% 122 122 310 133 112 300 -8% +9% +4% 802 809 793 +1% 2,464 2,385 +3%  Fee and other income for 9M 2018 was stable YoY as 3% growth in fee and FX income was offset by lower investment income. 2,464 167 (33) 3Q 2018 2Q 2018 3Q 2017 Management Commentary 1,400 900 Finance and lending Trade finance Investment management services Shares brokerage Credit cards Others Fee income from banking services, net 2,500 800 793 SAR (mn) -0% 9M 18  3Q 2018 fee and other income increased 5% YoY due to 1% growth in fees from banking services, 25% lower other operating expenses which were offset by lower investment-related income (-77%).  The higher fees from banking services in 3Q 2018 were mainly driven by higher fees from investment management services and financing and lending, partly offset by lower trade finance fees and shares brokerage. 40
  41. Expense highlights VAT , cost of living allowances and growth plans largely contributed to higher expenses in 9M 2018 Operating Expenses (SARmn) 9,000 3,500 4,792 4,972 5,000 1,144 1,274 4,000 501 568 464 572 2,578 2,662 9M 17 9M 18 6,000 2,500 2,000 1,587 1,692 1,606 1,500 404 443 426 1,000 153 197 500 834  9M 2018 expenses grew by 4% YoY, while 3Q 2018 operating expenses increased by 1% YoY. 7,000 +1% 3,000 Management Commentary +4% 8,000 155 196 153 183 899 844 3Q 17 2Q 18 Other G&A Depreciation & amortization Rent & premises Employee-related 3Q 18 0 3,000 2,000  The cost to income ratio for 9M 2018 was 35.08%, higher by 43bps compared to 9M 2017.  The cost base incremental was relatively broad-based, reflecting growing business, cost of living allowances to employees announced this year and the impact of VAT. These were partly offset by the continued strides made in digitization and productivity initiatives, and lower depreciation. 1,000 0 Cost to Income Ratio (YTD %) 9M 18 Operating Expenses Movement Drivers (SARmn) 3,500 3,000 2,500 4,792 84 653 130 4 0 4,972 34.7% 573 International (38) 0 34.3% 34.6% 35.2% 35.7% 35.1% 35.0% 0 2,000 0 1,500 4,399 Domestic 4,139 0 33.3% 32.9% 32.3% 1,000 32.7% 34.1% 33.9% 1H 18 9M 18 33.1% 0 500 Group (%) 0 Excluding International (%) 0 9M 17 Employee-related Rent & premises Depreciation & amortization NCB Investor Relations 3Q 2018 Investor Presentation Other G&A 9M 18 1Q 17 41 1H 17 9M 17 FY 17 1Q 18
  42. Asset highlights and composition 3 % growth in balance sheet as a result of increase in financing Total Assets (SARbn) Management Commentary  Total assets increased 3% due to increase in financing. +3% 800  8% Financing increase driven by 11% increase in domestic financing, despite 22% decline in international financing impacted by 38% Turkish Lira depreciation. 700 600 500 400 300 200 444 454 459 60 115 54 115 55 117 249 266 268  Overall financing trends were reflective of early signs of economic recovery but muted by Turkish Lira depreciation.  Investments increased by 2% as portfolio re-balancing and participation in Saudi Government debt issuance continued. 100 0 4Q 17 Financing and Advances, net Investments, net Cash, bank and SAMA balances Other assets, net 2Q 18 3Q 18 Total Assets Mix (SARbn) Total Assets by Segment (SARbn) Other assets, net 4% Cash, bank and SAMA balances 12% Investments, net 25% 600 444 459 Financing and Advances, net 59% Capital Market 0% International 7% 600 444 459 4Q 17 3Q 18 500 500 Treasury 35% 400 300 200 Retail 27% 400 300 200 100 100 0 0 4Q 17 3Q 18 Corporate 31% NCB Investor Relations 3Q 2018 Investor Presentation 42
  43. Financing and advances Financing growth driven by Corporate and Consumer segments Financing and Advances , net (SARbn) 500 Management Commentary  Domestically, financing grew for the Corporate Segment (+11%) and Consumer segment (+7%) from 4Q 2017. +8% 450 400 350 249 300 26 250 268 266 10 24 16 20 120 131 133 93 95 99 4Q 17 Consumer and credit card Corporate International Other 2Q 18 3Q 18 200 150 100 50  Growth in the Corporate segment was driven across all economic sectors apart from Commerce. 16  International financing declined 22% in 3Q 2018 due principally to the weakened Turkish Lira. 0 Financing and Advances, gross by Economic Sector (SARbn) Building & construction 7% Others, across 6 sectors 16% 350 256 35 250 150 100 50 Manufacturing 12% NCB Investor Relations 3Q 2018 Investor Presentation 276 Other 3Q 18 (7.7) 256 10 0 Services 9% 6.5 1.6 7.5 20 15 3.3 4.8 25 Consumer financing & credit cards 35% 200 4.0 30 276 300 Utilities & health 8% Movement Financing, gross by Economic Sector (SARbn) 4Q 17 3Q 18 Commerce 13% 5 0 4Q 17 43 Building & construction Banking & financial Services Consumer financing & credit cards Transport & comms Commerce
  44. Financing and advances credit quality (1/2) Rise in Corporate NPLs and impairment allowances partly offset by lower International NPL (SARbn) Movement NPLs by Economic Sector (SARbn) +6% 9 1 0.15 8 7 6 5 4 3 2 1 0.03 0.01 1 4.10 4.33 4.67 4.77 4.72 4.75 1.48 0.50 1.50 0.49 1.52 0.56 1.40 0.53 1.40 0.52 1.26 0.53 2.12 2.34 2.59 2.84 2.80 2.94 5.06 0.29 1 1.03 0.51 5.06 (0.08) 1 (0.05) 0 3.51 (0.05) 4.77 0 0 0 1Q 17 2Q 17 Corporate Consumer and credit card International Others 3Q 17 4Q 17 1Q 18 2Q 18 0 3Q 18 0 4Q 17 Impairment Allowances (SARbn) Building & construction Utilities & health Manufacturing Transport & comms Services Consumer financing & credit cards Other 3Q 18 Impairment Charge (SARbn) +15% 14 -14% 1 12 10 8 6 4 2 6.15 6.50 6.65 1.27 1.16 1.29 1.24 1.33 1.32 3.68 3.92 3.96 6.80 1.26 1.34 4.15 7.77 7.66 1.38 1.50 1.21 1.48 7.79 0.96 1.53 4.87 5.21 4.79 1 1 1 0 0 0.42 0.08 0.08 0.26 0.48 0.05 0.17 0.25 0.71 0.08 0.17 0.47 0 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 NCB Investor Relations 3Q 2018 Investor Presentation 1Q 17 Corporate 44 0.34 0.26 0.08 0.03 0.14 0.11 0.06 0.12 0.12 0.14 0.03 0.49 (0.04) (0.01) (0.04) (0) Corporate Consumer and credit card International Others 0.61 2Q 17 3Q 17 Consumer and credit card 4Q 17 International 1Q 18 Others 2Q 18 3Q 18
  45. Financing and advances credit quality (2/2) Stable NPL ratio and higher NPL coverage NPL Ratios (%) 5.3% 0 NPL Coverage Ratios (%) 5.4% 5.4% 5.3% 5.1% 5.1% 2 4.8% 186% 184% 2 0 192% 169% 185% 164% 170% 2 0 2 0 1.6% 1.6% 0 1.8% 1.9% 1.8% 1.7% 1.8% 1.4% 1.6% 1 150% 150% 86% 86% 142% 143% 0 1.3% 1.2% 1.1% 1.5% 1.4% 87% 90% 161% 99% 96% 154% 1 1 0 165% 1 93% 1 (0) Domestic 1Q 17 International 2Q 17 3Q 17 Group NPL ratio 4Q 17 1Q 18 0 2Q 18 3Q 18 1Q 17 CoR Ratios (YTD %) 0.6% 0 0.6% 1.4% 1.0% 0.7% 1.0% 1.1% 0.8% 0.7% 0.8% 0.6% International 1.0% 0.3% 0.7% 0 Domestic 0.0% -0.1% Group CoR ratio 0.1% 0.5% 0.3% (0) 1Q 17 4Q 17 1Q 18 2Q 18 3Q 18  NPL coverage was higher at 154% as at 3Q 2018 from write-offs as well as higher provision stock as a result of IFRS9 adoption adjustments. 0 0 3Q 17 Group NPL coverage ratio  NPL ratio declined in 3Q 2018 vs 4Q 2017 driven by International 2.0% 1.2% 2Q 17 International Management Commentary 0 0 Domestic 1H 17 NCB Investor Relations 3Q 2018 Investor Presentation 9M 17 FY 17 1Q 18 1H 18 9M 18 45
  46. Domestic financing and advances credit quality Corporate NPLs increased while Consumer NPLs were stable NPL Ratios (%) NPL Coverage Ratios (%) 2.5% 0 0 1.6% 0 1.9% 1.7% 2.2% 2.2% 4 2.2% 290% 3 254% 0 3 232% 237% 236% 153% 148% 279% 301% 0 2 0 0.6% 0 0.6% 0.5% 0.6% 0.5% 0.5% 174% 168% 0.5% 171% 166% 149% 2 (0) (0) Corporate 1Q 17 Consumer and credit card 2Q 17 3Q 17 4Q 17 1 1Q 18 2Q 18 3Q 18 1Q 17 CoR Ratios (YTD %) 0 0 0.7% 0.5% 0 0 0.6% 0.5% 0.4% 0.5% 0 Corporate 1Q 17 Consumer and credit card 1H 17 NCB Investor Relations 3Q 2018 Investor Presentation 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 9M 17 FY 17  Consumer and credit card risk metrics remained healthy during the period. 0.1% -0.1% (0) (0) 2Q 17  The Corporate NPL ratio and cost of risk increased and NPL coverage dropped in 3Q 2018, in part due to higher NPL inflows during the quarter. The 9M 2018 impact was limited by IFRS9 adjustments and write-offs during the period. 0.9% 0 0 Consumer and credit card Management Commentary 1.0% 0.8% Corporate 0.2% 0.1% 1H 18 9M 18 -0.2% 1Q 18 46
  47. Investments trends and composition Investments increased 2 % and quality remains strong; ~91% of the investment portfolio remains Saudi Government and investment grade Investments (SARbn) Management Commentary  The investment portfolio is built on high quality securities with ~91% being Saudi governments and investment grade. +2% 200 115 150 100 50  Since the resumption of KSA government debt issuance, NCB has actively participated in issues of longer term debt securities. 117 115 5 6 5 43 46 46 67 63 64  The portfolio has been re-balancing towards floating rate securities in light of the rising interest-rate environment. 0 4Q 17 2Q 18 Equity instruments, Mutual Funds, Hedge Funds and Others Floating rate securities Fixed rate securities 3Q 18 Investments by Credit Grade (SARbn) Saudi Government securities 44% Unrated 6% 140 Non-investment grade 3% Investments by Geography (SARbn) 115 Other countries 20% 117 Turkey 2% 120 100 140 115 117 4Q 17 3Q 18 120 100 80 80 60 60 40 Europe 1% 20 Other investment grade 47% NCB Investor Relations 3Q 2018 Investor Presentation 0 4Q 17 3Q 18 GCC and Middle East 17% 47 40 20 0 Saudi Arabia 60%
  48. Liabilities trends and composition Higher total liability base and a improving deposit mix towards CASA balances (79%) Total Liabilities (SARbn) Management Commentary  4% Increase in total liabilities; excluding Turkish Lira depreciation, the growth would have been 13%. +4% 700 600 500 400 49 396 389 380 10 9 50 48  Customers’ deposits are the main source of funding and rose by 4% in 3Q 2018. 9 300 200  CASA balances account for 79% of customers’ deposits compared to 77% at 4Q 2017. 325 318 309 100  Domestically, CASA balances grew by 8.5% and time deposits declined by 5% from 4Q 2017. 0 4Q 17 2Q 18 Customers' deposits Due to banks and other financial institutions Debt securities issued Other liabilities 3Q 18 Customers' Deposits (SARbn) Total Liabilities Mix (SARbn) 600 Other liabilities 4% Debt securities issued 2% 500 450 380 396 Due to banks and other financial institutions 12% +5% 500 300 350 300 15 43 325 318 309 400 400 7 13 13 40 13 7 11 44 250 200 200 150 100 50 0 4Q 17 3Q 18 100 Customers' deposits 82% 231 244 251 4Q 17 2Q 18 3Q 18 0 CASA - Domestic CASA - International Time - Domestic Time - International Others NCB Investor Relations 3Q 2018 Investor Presentation 48 12 7
  49. Liquidity NCB maintained a strong liquidity profile HQLA and Average Liquidity Coverage (SARbn/%) 200 150 163.8% 166.1% 102 96 172.5% 177.3% 91 95 198.6% 97 Management Commentary 211.9% 99  As at 3Q 2018, the financing to customers’ deposit ratio was 82.4% and comfortably below the regulatory guidelines. 250.0% 184.4% 98 200.0%  HQLA balances rose by 3% compared to 4Q 2017. 150.0%  The average quarterly LCR improved to 184.4% in 3Q 2018 from 177.3% in 4Q 2017. 100 100.0% 50  Basel III leverage ratio was stable at 12.9% as at 3Q 2018 relative to 13.0% at 4Q 2017. 50.0% 0.0% 0 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 High quality liquid assets (HQLA) Liquidity coverage ratio (LCR) Quarterly averages Financing to Customer Deposit Ratio (%) Basel III leverage Ratio (%) 1 1 1 1 81.0% 81.6% 84.9% 80.7% 81.8% 83.8% 0 82.4% 0 1 12.4% 12.2% 12.7% 13.0% 13.5% 13.1% 12.9% 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 1 0 1 1 0 1 1 1 0 1Q 17 2Q 17 NCB Investor Relations 3Q 2018 Investor Presentation 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 49
  50. Capital Capital position comfortably above regulatory minima Capitalisation (SARbn) Pillar I Risk Weighted Assets (SARbn) 140 Capital Ratios (%) 700 +0% 120 0 -0% 600 0 0 100 60 40 73 72 80 7 8 57 7 500 72 8 8 7 58 400 57 200 100 0 0 2Q 18 361 9 361 12 35 35 3Q 18 Tier 2 capital (T2) Additional tier 1 capital (AT1) Common equity tier 1 capital (CET1) 0 12 0 20.4% 20.3% 20.0% 17.7% 18.2% 18.1% 17.8% 15.7% 16.2% 16.2% 15.9% 16.1% 16.0% 16.4% 0 300 20 4Q 17 361 34 18.2% 18.2% 18.5% 20.0% 318 315 314 0 0 0 14.6% 14.1% 14.5% 0 4Q 17 2Q 18 3Q 18 1Q 17 Credit risk Operational risk Market risk 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 CET1 ratio T1 ratio TC ratio Capital ratios are based on Pillar I RWA Total Capital Composition (SARbn) Tier 2 capital (T2) 11%  Capitalization remained strong and comfortably above the regulatory minima with CET1 at 15.9% and T1 at 17.8% 100 90 Additional tier 1 capital (AT1) 10% Management Commentary 72 72 4Q 17 3Q 18  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. 80 70 60 50 40 30 20 10 0 NCB Investor Relations 3Q 2018 Investor Presentation  Common equity Tier 1 capital (CET1) is impacted by one time IFRS9 adjustment adoption. Common equity tier 1 capital (CET1) 79% 50
  51. National Commercial Bank Segmental Review 3Q 2018 Results NCB Investor Relations 3Q 2018 Investor Presentation
  52. NCB Bank (standalone) Strong 9% 9M 2018 net income growth resulting from operating income growth and lower impairment charge Summary Financial Performance Financing and Advances, net (SARbn) +11% 450 400 350 223 300 242 248 250 200 150 100 50 0 4Q 17 2Q 18 3Q 18 Customers' Deposits (SARbn) +7% 500 400 287 298 307 SAR (mn) 3Q 2018 2Q 2018 3Q 2017 YoY % change 9M 2018 9M 2017 YoY % change Total assets 426,410 418,494 405,667 +5% 426,410 405,667 +5% 4,176 3,310 4,057 3,224 3,932 3,095 +6% +7% 12,413 9,645 12,180 9,260 +2% +4% Total operating income Net special commission income Fee income from banking services, net Operating expenses Impairment charge Other income (expenses) Net income for the period 610 582 576 +6% 1,760 1,724 +2% (1,368) (473) (14) 2,321 (1,400) (228) (17) 2,412 (1,294) (629) (20) 1,989 +6% -25% -29% +17% (4,137) (716) (54) 7,506 (3,885) (1,393) (46) 6,857 +6% -49% +18% +9% % of total assets Cost to income (%) NCL (%) ROA (%) 92.9% 32.8% 0.7% 2.2% 92.1% 34.5% 0.4% 2.4% 90.9% 32.9% 1.1% 2.0% +2% -0% -31% +13% 92.9% 33.3% 0.3% 2.4% 90.9% 31.9% 0.8% 2.3% +2% +4% -58% +6% NIM (%) 3.5% 3.6% 3.4% +3% 3.6% 3.5% +2% NPL (%) NPL Coverage Ratio (%) 1.6% 170% 1.4% 185% 1.3% 169% +18% +1% 1.6% 170% 1.3% 169% +18% +1% 300 Management Commentary 200 100 0 4Q 17 2Q 18 3Q 18  9M 2018 net income rose 9% YoY driven principally by 2% operating income growth and a 49% improvement in the impairment charge, while operating expenses increased by 6% mainly due to VAT, Cost of living allowances and business growth.  NSCI for 9M 2018 improved by 4% YoY due to increase in average earning assets and better margins from higher CAs growth. NCB Investor Relations 3Q 2018 Investor Presentation  3Q 2018 net income rose 17% YoY driven principally by 6% operating income growth and a 25% improvement in the impairment charge. 52
  53. Retail Banking Higher 9M 2018 net income from higher operating income and lower impairment charge Summary Financial Performance Financing & Advances, net (SARbn) +7% 160 140 120 93 95 99 100 80 60 40 20 0 4Q 17 2Q 18 3Q 18 Customers' Deposits (SARbn) 450 +4% 400 350 300 237 242 SAR (mn) 3Q 2018 2Q 2018 3Q 2017 YoY % change 9M 2018 9M 2017 YoY % change Total assets 123,856 118,068 111,565 +11% 123,856 111,565 +11% 2,427 2,002 2,188 1,796 1,975 1,723 +23% +16% 6,590 5,441 5,970 5,026 +10% +8% Total operating income Net special commission income Fee income from banking services, net Operating expenses Impairment charge Other income (expenses) Net income for the period 390 343 307 +27% 1,043 897 +16% (1,035) (26) (5) 1,360 (1,055) (117) (7) 1,009 (927) (167) (7) 874 +12% -84% -23% +56% (3,071) (99) (18) 3,402 (2,810) (416) (13) 2,731 +9% -76% +39% +25% % of total assets Cost to income (%) CoR ROA (%) 27.0% 42.6% 0.1% 4.5% 26.0% 48.2% 0.5% 3.6% 25.0% 47.0% 0.7% 3.1% +8% -9% -86% +45% 27.0% 46.6% 0.1% 3.8% 25.0% 47.1% 0.6% 3.3% +8% -1% -78% +16% Management Commentary 247 250  9M 2018 net income increased by 25% YoY driven principally by 10% higher operating income and a 76% improvement in impairment charges.  NSCI for 9M 2018 improved by 8% YoY due to a 7% increase in retail financing and better margins driven by higher current account growth. 200 150 100  Fee income increased by 16% in 9M 2018 YoY, mainly from financing-related activity. 50 0 4Q 17 2Q 18 3Q 18  9M 2018 operating expenses increased 9% YoY and the cost to income ratio reached 46.6% from 47.1% a year earlier due to strong operating income growth.  3Q 2018 net income increased by 56% YoY driven by 23% higher operating income and an 84% improvement in impairment charges. NCB Investor Relations 3Q 2018 Investor Presentation 53
  54. Corporate Banking 9M 2018 net income reduced by 9 % mainly on volume as average balances declined 5% Summary Financial Performance Financing & Advances, net (SARbn) 250 SAR (mn) +11% Total assets 200 150 120 131 133 100 50 0 4Q 17 2Q 18 3Q 18 Customers' Deposits (SARbn) 3Q 2018 2Q 2018 3Q 2017 YoY % change 9M 2018 9M 2017 YoY % change 142,725 142,800 139,843 +2% 142,725 139,843 +2% 878 773 974 -10% 2,572 3,121 -18% 665 632 700 -5% 1,950 2,368 -18% Total operating income Net special commission income Fee income from banking services, net Operating expenses Impairment charge Other income (expenses) Net income for the period 201 201 243 -17% 623 753 -17% (225) (488) (4) 162 (228) (116) (6) 424 (267) (465) (6) 236 -16% +5% -37% -31% (720) (563) (17) 1,272 (737) (972) (14) 1,398 -2% -42% +21% -9% % of total assets Cost to income (%) CoR ROA (%) 31.1% 25.6% 1.4% 0.5% 31.4% 29.4% 0.3% 1.2% 31.3% 27.4% 1.4% 0.7% -1% -7% +2% -33% 31.1% 28.0% 0.5% 1.3% 31.3% 23.6% 1.0% 1.4% -1% +19% -44% -7% 100 +23% 90 Management Commentary 80 70 60 50 42 47 52  9M 2018 net income decreased 9% YoY due to lower operating income (-18%) despite lower impairments (-42%) and operating expenses (-2%).  NSCI for 9M 2018 declined 18% YoY as a result of repayments in 4Q 2017 that reduced average balances during the period by 5% compared with 9M 2017. 40 30 20  Fee income decreased by 17% YoY mainly on lower lending and trade fees. 10 0 4Q 17 2Q 18 3Q 18  The 9M 2018 impairment charge declined 42% YoY due mainly to a significant recovery and one-time IFRS9 adoption adjustment to retained earnings permissible by IFRS9.  3Q 2018 net income decreased 31% YoY due to lower operating income (-10%) and higher impairments (+5%), partly offset by lower operating expenses (-16%). NCB Investor Relations 3Q 2018 Investor Presentation 54
  55. Treasury Higher 9M 2018 net income driven by operating income growth Summary Financial Performance Investments , net (SARbn) +2% 200 115 115 150 117 100 50 0 4Q 17 2Q 18 3Q 18 Total Operating Income (SARmn) 983 3Q 2018 2Q 2018 3Q 2017 YoY % change 9M 2018 9M 2017 YoY % change Total assets 159,829 157,626 154,259 +4% 159,829 154,259 +4% 871 643 1,096 797 983 672 -11% -4% 3,251 2,254 3,090 1,866 +5% +21% Total operating income Net special commission income Fee income from banking services, net Other operating income Operating expenses Impairment charge Other income (expenses) Net income for the period 20 37 26 -24% 94 74 +27% 209 (109) 41 (5) 798 262 (118) 5 (4) 979 285 (100) 2 (7) 879 -27% +9% +1664% -30% -9% 903 (346) (54) (19) 2,833 1,150 (338) (5) (19) 2,728 -21% +2% +1084% +2% +4% Cost to income (%) % of total assets ROA (%) 12.5% 34.8% 2.0% 10.8% 34.7% 2.5% 10.1% 34.6% 2.3% +23% +1% -11% 10.6% 34.8% 2.3% 10.9% 34.6% 2.3% -3% +1% -0% -11% Management Commentary 1,096  9M 2018 net income improved by 4% YoY driven by 5% operating income growth, partly offset by 2% higher expenses and higher investment impairment. 2,000 1,500 SAR (mn) 300 871 1,000 311 500 672 797 643 3Q 17 2Q 18 3Q 18 228  3Q 2018 net income decreased by 9% YoY driven by lower non recurring revenues, partly offset by reversal of credit losses. 0 Net special commission income Fee and other income NCB Investor Relations 3Q 2018 Investor Presentation 55
  56. Capital Markets Higher 9M 2018 net income growth , driven by asset management Summary Financial Performance Assets Under Management (SARbn) +9% 250 200 150 129 144 140 100 50 0 4Q 17 2Q 18 3Q 18 Brokerages Volume (SARbn) SAR (mn) 3Q 2018 2Q 2018 3Q 2017 YoY % change 9M 2018 9M 2017 YoY % change Assets Under Management Brokerages Volume 140,269 30,047 143,850 48,510 139,660 39,500 +0% -24% 140,269 125,547 139,660 148,920 +0% -16% 155 118 23 7 148 (85) 0 70 (2) 176 123 38 6 167 (88) (0) 88 (4) 154 108 31 8 148 (79) 1 76 (2) +0% +8% -26% -11% +0% +7% -100% -9% +6% 559 397 100 40 537 (262) 0 296 (9) 462 315 111 21 447 (254) 2 210 (5) +21% +26% -10% +90% +20% +3% -100% +41% +72% 68 84 74 -9% 287 205 +40% 55.0% 50.1% 51.4% +7% 46.9% 54.9% -15% Total operating income AUM Related Fee Income Brokerage Related Fee Income Other fee income Fee income, net Operating expenses Other income (expenses) Net income Non-controlling interests Net income attributed to equity holders Cost to income (%) 90 -24% 80 Management Commentary 70 60 50 40 49 30 40 30 20  9M 2018 operating income increased by 21% from higher AUM related and other fees, which combined with improving operating efficiency drove strong 40% net income growth YoY.  3Q 2018 net income decreased by 9% YoY due to higher operating expenses (+7%) on stable total operating income. 10 0 3Q 17 NCB Investor Relations 3Q 2018 Investor Presentation 2Q 18 3Q 18 56
  57. International (in SAR) 9M 2018 net income improved 23% YoY due to slightly higher operating income and improved operating efficiency Summary Financial Performance Financing & Advances, net (SARbn) SAR (mn) 3Q 2018 2Q 2018 3Q 2017 YoY % change 9M 2018 9M 2017 YoY % change 31,003 34,306 38,962 -20% 31,003 38,962 -20% 401 324 427 347 406 358 -1% -9% 1,200 977 1,187 1,023 +1% -4% 50 45 -22% 40 35 30 26 24 25 Total assets 20 20 15 10 5 0 4Q 17 2Q 18 3Q 18 Customers' Deposits (SARbn) -18% 35 30 25 22 20 18 20 Total operating income Net special commission income Fee income from banking services, net Operating expenses Impairment charge Other income (expenses) Net income Non-controlling interests Net income attributed to equity holders 44 60 70 -36% 167 214 -22% (153) (143) (8) 97 (32) (204) (112) 13 124 (41) (214) (80) (17) 94 (31) -29% +79% -54% +3% +2% (573) (318) 30 339 (112) (653) (219) (39) 277 (93) -12% +45% -177% +22% +21% 65 83 63 +4% 227 184 +23% % of total assets Cost to income (%) CoR (%) ROA (%) 6.8% 38.1% 2.6% 1.2% 7.6% 47.8% 1.8% 1.4% 8.7% 52.8% 1.1% 1.0% -23% -28% +132% +24% 6.8% 47.8% 2.0% 1.3% 8.7% 55.0% 1.0% 0.9% -23% -13% +90% +41% NSCI margin (%) NPL (%) NPL Coverage Ratio (%) 4.7% 4.8% 93% 4.4% 5.1% 96% 4.0% 5.4% 87% +16% -10% +6% 4.2% 4.8% 93% 3.8% 5.4% 87% +10% -10% +6% 15 Management Commentary 10 5 0 4Q 17 2Q 18 3Q 18  9M 2018 net income rose by 23% driven by modest 1% operating income growth and 12% lower operating expenses, despite 45% higher impairment charges.  The financial performance was impacted by a 40% drop YoY in the 9M average TRY/SAR rate, and 15% decline in the TRY/SAR spot rate since 4Q 2017. NCB Investor Relations 3Q 2018 Investor Presentation  3Q 2018 net income improved 4% YoY on stable operating income and improved operating efficiency. 57
  58. International (in TRY) 9M 2018 net income grew by 50% YoY due to higher operating income despite higher credit % in foreign currency costs Summary Financial Performance Financing & Advances, net (TRYbn) +5% 4Q 17 Reported 1.2 Growth at constant FX TRY (mn) +24% 5.2 26.5 32.9 27.7 3Q 18 Underlying FX translation impact 43% 3Q 18 Reported 43% Customers’ Deposits (TRYbn) +3% +32% 6.6 22.8 0.7 23.5 4Q 17 Reported Growth at constant FX 3Q 18 Underlying xx% 30.0 Total assets 3Q 2018 2Q 2018 3Q 2017 YoY % change 9M 2018 9M 2017 YoY % change 50,224 41,867 36,868 +36% 50,224 36,868 +36% 596 482 496 403 380 335 +57% +44% 1,432 1,166 1,137 980 +26% +19% Total operating income Net special commission income Fee income from banking services, net Operating expenses Impairment charge Other income (expenses) Net income Non-controlling interests Net income attributed to equity holders 66 70 65 +1% 199 205 -3% (227) (212) (12) 145 (48) (237) (130) 16 145 (48) (199) (75) (16) 89 (29) +14% +183% -28% +62% +63% (684) (379) 36 404 (134) (621) (209) (37) 270 (89) +10% +81% -195% +50% +50% 97 97 60 +62% 271 181 +50% Cost to income (%) ROA (%) 38.1% 1.3% 47.8% 1.4% 52.5% 1.0% -27% +30% 47.8% 1.2% 54.6% 1.0% -13% +27% CAR % Tier 1 CAR % LTD ratio % 19.4% 13.4% 114% 18.8% 13.7% 119% 18.3% 14.5% 124% +6% -8% -8% 19.4% 13.4% 114% 18.3% 14.5% 124% +6% -8% -8% Management Commentary FX translation impact 49% 3Q 18 Reported 60%  9M 2018 net income grew by 50% YoY driven by 19% higher NSCI, despite higher operating (+10%) and credit (+81%) charges.  Notwithstanding the higher operating expenses, the 9M 2018 cost to income ratio improved to reach 47.8% from 54.6% in 9M 2017 from very strong income growth.  3Q 2018 net income increased by 62% YoY due to 44% higher NSCI, partly offset by higher operating (+14%) and credit (+183%) costs. Note: Figures according to IFRS accounting standards NCB Investor Relations 3Q 2018 Investor Presentation  FX translation also impacted credit costs 58
  59. National Commercial Bank Additional Information 3Q 2018 Results NCB Investor Relations 3Q 2018 Investor Presentation
  60. Additional Information Please don ’t hesitate to contact NCB Group Investor Relations Mr. Abdulbadie Alyafi More information Head, Investor Relations Download copies of National Commercial Bank’s:  Financial statements P: +966 12 646 3988  Earnings release E: investorrelations@alahli.com  Investor presentation National Commercial Bank  Financial data pack (Excel) P.O. Box 3555 Visit: http://www.alahli.com/en-us/Investor_Relation 21481 Jeddah, Kingdom of Saudi Arabia NCB Investor Relations 3Q 2018 Investor Presentation 60