Saudi Banking Sector - H1 2016

Transcription

1. Sector : Banks and Financial Services August 29, 2016 Saudi Banking Sector H1 2016 The report reviews all listed Saudi Banks performance in H1 2016  EPS (SAR) PE (x) RIBL 10.,. 01,,10 1.06 ...2 BJAZ 11.60 ,,6,2 1.81 6.,0 SAIB 11.1, .,80, 1.,9 ..00 SHB 10.,, 11,9,, 1.., ,.99 BSFR 20.89 2,,180 0.,0 6.1, SABB 1..,0 26,29, 2.91 6.02 ARNB 16.,0 16,,00 2.90 ,.61 SAMBA 18.20 06,,00 2.,9 ..00 Al Rajhi ,,.92 89,2,, ,..6 11.,0 AL Bilad 1,.16 9,096 1.28 11.8. Alinma 12.69 19,00, 1.0, 12.19 NCB 0,.98 69,960 ,.60 ..61 0,.,,20 2.62 ..9, Total   Sector Performance Summary Closing Market Cap. Price (SAR) (SAR Million) Summary        The growth in net loans slowed downed to 8.1% in H1 2016 compared to 8..% in H1 201,, thus net loans hit SAR 1,,,0 billion (USD 08, billion). Deposit decreased by 2.,% totaling SAR 1,662 billion (USD ,,0.2 billion), while it shifted up by 8.2% in H1 201,. Aggregate investments amounted to SAR 09,.6 billion (USD 10,.1 billion) in H1 2016 revealing a negative growth rate of 22% YoY. Banking assets rose by 2.2% compared to 8.2% in H1 201,, the first half end at SAR 2,22, billion (USD ,90.1 billion). Bank profits grew only by 0..,% in H1 2016 compared to 6..% in H1 201,, thus the total profit hit SAR 20.02 billion (6.2 billion). As the growth of deposits was slower than the growth rate of loans, loans to deposits ratio in H1 2016 shifted up by 8,, basis points to 8.% compared with .8% in the same period last year. Corporate loans led the loan growth constituting 69% of total loans, while the retail segment contributed 02% of the net loans. Capital adequacy Tier I ratio posted 16.,1% in H1 2016 compared to 1,.90% in the same period last year while Total capital adequacy Tier I + Tier II ratio posted 18.02% in H1 2016 compared to 1...9% in the same period last year. Credit provisions/total loans fell 2 bps to 1.9,% in H1 2016. Interest margin in the sector continued to drop reaching 0.00% at the end of the first half of 2016 recording a decline by 9, bps. As of closing prices of Aug 28, 2016. Source: Saudi Banks Financial statements, Tadawul and SAMA Total Operating Income and Net Income with Growth Rates - H1 2016 Total Operating Income 10,000 7% 9% Mohammed Alghalbi Financial Analyst Malghalbi@albilad-capital.com 2% 18% 4,000 -5% -1% -1% 1% 5% 2% 2% 2,000 1% 3% -2% 0% -25% 11% -2% -2%13% -7% -42% -29% -6% 0 NCB ALRAJHI RIBL SAMBA SABB BSFR ANB SHB ALINMA BJAZ ALBILAD SAIB Net Loans and Total Deposits with Growth Rates - H1 2016 Total Deposits 350,000 SAR billion Turki Fadaak Research & Advisory Manager TFadaak@albilad-capital.com SAR million 8,000 6,000 Net Income 300,000 250,000 200,000 150,000 100,000 50,000 0 (13%) 13% Net Loans 30% 1% 20% 7% 1% (2%) (0%) 13% (1%) 3% (3%) (2%) 4% 6% 10% 3%9% 22% (9%) (3%) 25% 7% 4% 10% 0% 17% (10%) (20%) 1
2. Sector : Banks and Financial Services H1 2016 August 29, 2016 Economic Review The total deposits decreased by 2.,% in H1 2016 YoY compared to 8.,% in the H1 201, due to the decrease in national revenue oil. The decline in oil price trimmed the liquidity level as result of several treasury bond issuances in Riyal to finance public spending. This increased the bank liabilities from the public sector by 11.% from the same period last year to reach SAR 20,., billion (USD ,,., billion), of which government bonds amounted to SAR 1,6.6 billion (USD ,1.8 billion) as the end of Q2 2016. As for money supply, M2 growth retreated to 2.,% in Q2 2016 compared with 12.,% in Q2 201,. Moreover, M0 growth dwindled to 2.6% in Q2 2016 compared to 10.,% in Q2 201,. Lower liquidity levels in banking sector led to an increase in the three-month SIBOR rate from 0...09% in Q2 201, to 2.0.29% in Q2 2016. Furthermore, the Saudi government will issue an international bonds in US dollar next October; the first of its kind in the international market. A roadshow will be launched in September. The bonds are expected to lure international financial institutions and investors especially from Europe and Japan due to lower interest rate in these two areas. We believe this international issuance will decrease the pressure on liquidity that resulted from the growth of credit by 8.1% by the end of H1 2016 and will reflect positively on the Saudi banking sector whose assets accounted for 88% of the GDP* after loan/deposit ratio increased to 86.6.% by the end of June. Money Supply Growth Rates (YoY) M2 M3 12.4% 10.5% 9.7% 8.5% 2.5% 2.6% (0.4%) (2.2%) Q2 2015 Q3 2015 Q4 2015 Q1 2016 (2.5%) (2.6%) Q2 2016 Saudi Interbank Offered Rate 2.50 2.0729 2.00 1.50 1.00 0.50 0.00 GDP in fixed prices 2
3. Sector : Banks and Financial Services H1 2016 Sector Performance Overview Profits of Saudi banks edged up 0..,% in H1 2016 YoY, thus the total profits hitting SAR 20.02 billion (USD 6.22 billion) up from SAR 20.1, billion (USD 6.1. billion) driven by the growth of special commission income by18.0% YoY where the net special commissions income increased by .% YoY due to the increase of special commission expanses. Net special commissions income contribution to total operating income rose from 6,% to 68% YoY. The fees and bank charges income decreased by 0.2% YoY whilst the other operating income slumped 09.1% YoY. Therefore, total operating income rose slightly by 1.9% YoY. August 29, 2016 Net income Growth - H1 2016 * * ALRAJHI 18% ALINMA 13% BSFR 3% NCB 2% SABB 2% RIBL 1% SAMBA * (1%) ANB (2%) SHB (2%) ALBILAD On the side of the balance sheet, assets rose by 2.2% YoY coming in at SAR 2,22, billion (USD ,90 billion) compared to SAR 2,1., billion (USD ,80 billion), as net loans and financing shifted upwards by 8.1% YoY posting SAR 1,,,0 billion (USD 08, billion) compared to SAR 1002 billion (USD 0,, billion) while net investments edged down 22% YoY to SAR 09, billion (USD 10, billion) compared to SAR ,06 billion (USD 10, billion). The decline in deposits decelerated to 2.,% YoY ending the first half at SAR 1,662 billion (USD ,,0 billion) versus SAR 1,.00 billion (USD ,,, billion). As the growth of deposits was slower than the growth rate of loans, loans to deposits ratio in H1 2016 shifted up by 8,, basis points (bps) to 8.% compared with .8% in the same period last year. In terms of asset quality, Non-performing loans increased ..6% to reach SAR 16 billion in H1 2016 compared to the same period last year. With the high growth of total loans, nonperforming loan ratio tumbled by 1 basis point reaching 1.09% by the end of first half compared to 1.10% last year. Credit provisions/total loans fell 2 bps to 1.9,% in H1 2016. On the other hand, credit provisions totaled SAR 0,012 million shifting up by ,.2% YoY. NPLs coverage came in at 1.8% compared to 180% at the end of H1 2016. Corporate loans led the loan growth constituting 69% of total loans, while the retail segment contributed 02% of the net loans. Regarding liquidity, total cash rose by 1,.9% by the end of H1 2016 compared to the same period last year. Cash to total assets amounted to 1,.,% at the end of H1 2016, and the cash/ total deposits ratio hit 19.,%. On the other side, cash/ current deposits ratio rose to 01% compared to 2,% YoY. Furthermore, demand deposits dropped by 12% to SAR 1,02. billion in H1 2016 while time deposits recorded a 20% increase to SAR 6,, billion. In addition, savings deposits increased by 16.0% while other deposits decreased by 1,.1%. Capital adequacy Tier I ratio posted 16.,1% in H1 2016 compared to 1,.90% in the same period last year while Total capital adequacy Tier I + Tier II ratio posted 18.02% in H1 2016 compared to 1...9% in the same period last year (6%) SAIB BJAZ (29%) (42%) * Includes a capital gain of SAR 208.6 million for BJAZ and SAR 201.1 million for RIBL Total Assets Growth - H1 2016 ALINMA 20% ALBILAD 11% SHB 6% BSFR 4% SAIB 4% SAMBA 4% RIBL 2% ALRAJHI 1% BJAZ 1% ANB SABB NCB 0% (0%) (2%) Total Deposits Growth - H1 2016 ALINMA 22% ALBILAD 10% SHB 3% SAMBA 1% ALRAJHI 1% SABB (1%) RIBL (2%) ANB (2%) BSFR (3%) SAIB BJAZ (3.39%) (9%) NCB (13%) Net Loans Growth - H1 2016 ALINMA 25% ALBILAD 17% NCB 13% RIBL 13% SHB 9% SAIB 7% ALRAJHI 7% ANB 6% BJAZ 4% BSFR 4% SABB SAMBA 3% 0% 3
4. Sector : Banks and Financial Services H1 2016 August 29, 2016 Income Statement Overview Net income Growth H1 2015 Growth Net income Banks' profits amounted to SAR 20.02 billion at the end of H1 2016 surging 0..,% over H1 201,; 6 banks recorded growth in profits versus 6 banks recorded decline in profits, the bottom line of BJAZ, SAIB, ALBILAD, SHB, ANB and SAMBA tumbled by ,2%, 29%, ,.8%, 2.,% and 1.,% respectively. As for BJAZ and SAIB, the decrease in net income resulted mainly from declining net special commission income, fees and commission income and other operating income, and also the increase in operating expenses was a big factor for SAIB. For ALBILAD, the increase in operating expenses was the main reason for profit slump. Decline in Fees and commission income, exchange income and increase in operating expenses lead the slumping net income of SHB and ANB while decreasing in fees and commission income and other operating income was the main reason of lower net income for SAMBA. Special Commission Income Total special commission income amounted to SAR 0,..2 billion by the end of H1 2016 increasing 18.0% compared to the same period last year. Net special commission income amounted to SAR 28., billion skyrocketing .% compared to the same period last year, thus representing 68% of operating income compared to 6,% YoY. Income and Expenses of Operations BJAZ 195% (42%) SAIB 9% (29%) SHB 19% 3% 1% 2% 7% SABB ANB (2%) SAMBA ALRAJHI (1%) (5%) ALBILAD (6%) 5% 18% 1% 18% 13% ALINMA (1%) NCB 2% Fees and Commissions Growth H1 2015 YoY Growth RIBL BJAZ (6%) SAIB (7%) 17% 28% 6% (12%) 8% 2% (7%) (7%) SABB 15% ANB (22%) SAMBA ALRAJHI H1 2016 YoY Growth 70% (15%) BSFR Gross income from fees, charges, currency remittances and other operating income decreased by ..0% in H1 2016 compared to the same period last year thus accounting for 02% of total banking income compared to 0,% the comparable period. 20% (2%) BSFR SHB By the end of H1 2016, total revenues for Saudi banks stood at SAR ,1.86 billion increasing 1.9% versus H1 201,. NCB and Al Rajhi Bank contributed 22.0% and 18.1%, respectively, of total revenues. On the other hand, operating expenses totaled SAR 18.6 billion displaying growth of 0% compared to the same period last year. H1 2016 Growth 4% 1% RIBL 10% (11%) (11%) 28% 13% ALBILAD 6% ALINMA 5% 2% 8% NCB 140% Net Special Commission Income Growth - H1 2016 21% 13% Revenues Breakdown per Bank - H1 2016 Net Special Commi ssion Income Trading Currencies 2% Commission & Fees Other (6%) RIB L BJAZ 65% 5% 56% SAIB 4% SHB 65% 65% 6% SABB 65% 7% 68% SAMBA 67% ALBILAD ALINMA NCB 18% 5% ANB 6% 21% 72% (3%) 7% 21% 4% Net Special commis sion 1% Trading Currencies 1% Commission & Fees 22% 6% 5% 5% 33% 4% Banking Sector Revenues Breakdown - H1 2016 19% 6% 12% 77% 8% 23% 8% 70% 7% 23% 8% 53% 7% 16% 6% BSFR 6% 10% 10% 9% 24% 69% ALRAJHI 21% 2% 5% 9% 20% 0% 20% Other 21% 6% 68% 2% 4
5. Sector : Banks and Financial Services H1 2016 August 29, 2016 A look at the Performance of the Banking Segments Retail Segment Retail Net Income Growth - H1 2016 RIBL 115% SAMBA 81% NCB 76% SHB 32% SAIB In H1 2016, profits of the retail segment in the banking sector surged 00..% versus H1 201, coming in at SAR .., billion increasing its share in total net profits from 2,% in H1 201, to 01% in 2016. Al Rajhi bank generated 09.2% of total retail profits, whereas NCB and Riyad contributed 2,.,% and 10.0%, respectively. Total operating income of the retail segment amounted to SAR 1..9 billion up 11.2% compared to SAR 16.1 billion YoY accounting for ,0% of total segment income compared to 09%. Al Rajhi captured 01% of total segment income while NCB accounted for 22%. Corporate Segment The corporate segment profit reached SAR 8., billion in H1 2016, down 10.2% YoY. The contribution of the sector declined to 0.% of total banks' profits, compared with ,1% in the same period last year. NCB, BSFR, and Riyad accounted for 16.2%, 1,.,% and 1,.0% respectively of the segment profits. Operating income of the segment declined by 2.,% YoY posting SAR 10 billion compared to SAR 10., billion contributing to 01% of the segment revenue compared to 00%. NCB generated 1..2% of the segment operating income while SABB, BSFR and Riyad accounted for 12.,%, 12% and 18.8% respectively. Treasury Segment 23% ALRAJHI 19% ALINMA 1% SABB (6%) BSFR (14%) ALBILAD (35%) ANB BJAZ (47%) (276%) Corporate Net Income Growth - H1 2016 ALINMA 17% SABB 11% SHB 11% BSFR 4% SAMBA 0% ALBILAD (7%) ANB (13%) NCB (15%) RIBL (31%) SAIB The treasury profit amounted to SAR 6.2 billion in H1 2016, a slump of ,.1% YoY. The share of the segment in total banking profits slipping at 26% compared to 28% YoY. As for major players, NCB acquired 2,..% of the total segment profit, followed by Al Rajhi and SAMBA which accounted for 10..%.and 10.,% respectively. The revenues of the segment posted SAR ..0 billion in H1 2016 down 2.9% versus SAR ..6 billion in H1 201, constituting 1..6% of total segment revenue. NCB acquired 2,% of the income followed by A l Rajhi and SAMBA by 12.,% and 12.2%, respectively. Brokerage and Investment Segment (41%) ALRAJHI BJAZ (56%) (80%) Treasury Net Income Growth - H1 2016 ALBILAD 66% ALRAJHI 51% ANB 48% BSFR Profits of the segment hit SAR 921 billion in H1 2016 tumbling 26.1% YoY and capturing ,% of the segment profits. Samba and Al Rajhi generated 29.0% and 2,.,%, respectively of the segment profits , NCB acquired 1,.9% of the aggregate figure. The segment revenues slipped by 10.9% YoY posting SAR 1.. billion compared to SAR 1.9 billion generating ,% of aggregate banks’ revenue compared to ,%. Samba and Al rajhi constituted 21.9% and 19.6%, respectively of the total figure followed by NCB with 19%. 12% SAIB 7% BJAZ 5% ALINMA 3% SABB 1% SAMBA (18%) RIBL (19%) NCB SHB (24%) (95%) Net Income Breakdown per Segment for Each Bank - H1 2016 Retail RIBL BJAZ (8%) ANB SAMBA ALINMA NCB 45% Brokerage Net Income Growth - H1 2016 Other 19% 3% 5% 35% 27% 30% 23% 0% 9% 1%1% 58% 19% 31% 50% 12% 30% 41% 15% 9% 37% 42% 32% 71% 2% 54% 18% 37% 27% 3% 17% 31% SAMBA (12%) NCB (19%) RIBL (34%) 1% ANB (35%) 11% 26% 59% 51% (6%) 3% 2% 21% ALINMA ALRAJHI 19% 75% ALRAJHI ALBILAD Brokerage 53% 5% 20% SHB BSFR Treasury 33% 18% SAIB SABB Corporate 6% 8% 6% 3% BSFR (36%) ALBILAD (37%) SHB (38%) BJAZ (71%) SABB SAIB (74%) (95%) 5
6. Sector : Banks and Financial Services H1 2016 August 29, 2016 Net Loans Growth - H1 2016 Balance Sheet Items Overview H1 2015 Growth Loans H1 2016 Growth RIBL -3% 12.8% BJAZ Loans portfolio of Saudi banks hit SAR 1,,00 billion in H1 2016 surging 8.1% YoY. As for the breakdown of the portfolio, corporate loans totaled SAR 990., billion, rising ..8% YoY and representing 68.,% of total banking loans. Simultaneously, retail loans concluded the first half at the level of SAR ,,9.0 billion, recording growth of 8..6 YoY as well as seizing 01.6% of total loans. Maturity terms of personal loans as follows; short term 00%, medium term 28% and long term ,2%. As for the major economic segments, loans are distributed among 10 segments. Four of these segments acquired 80% of total loans: other 09%, Commerce 21%, manufacturing 10% and construction 8%, while the rest of the figure is split among the remaining segments. 8% 4% 4% SAIB 7% SHB 18% 9% BSFR 6% 4% SABB 12% 3% ANB SAMBA 21% 6% 7% 0% 5% ALRAJHI 7% ALBILAD 17% 18% 8% ALINMA 25% 13% 13% NCB Sector Net Loans Contribution - H1 2016 Provisions 18% Total credit provisions edged up ,.2% in H1 2016 compered to the same period last year reaching SAR 0,012 million as the corporate segment allocations increased by 02..% to SAR 1,,,0 million, while retail provisions slumped by 12.6% to SAR 1,099 million. 16% 3% 3% 4% 5% 5% 8% 9% 9% 9% 11% Lending Structure for Each Bank - H1 2016 Retail Loans RIB L Corporate Loans 25% BJAZ 39% 61% SAIB 26% 74% SHB 24% 76% BSFR SABB ANB SAMBA 9% 39 .5 % 91% 20% 19 .7%18 .5 % 16 .2% 13.5 % 10 .9 %10 .0 % 4.7% 4.0 % 80% 23% 77% 16% 84% ALRAJHI 73% ALBILAD ALINMA Loans Breakdown per Economic Segment Growth– H1 2016 YoY 75% 27% 34% 21% NCB 2.2% 1.3% 66% 79% 34% 66% Provision Charge Growth - H1 2016 Non-performing loans (NPLs) Non-performing loans increased by ..6%, leading to an increase of 1 basis point in the NPLs ratio reaching 1.09% by the end of the H1 2016. The coverage rate tumbled to 1.8% compared to 180% in H1 201,. Investments Aggregate investments amounted to SAR 090., billion in H1 2016 revealing a negative growth rate of 22.2% YoY . NCB represented 29.2% of total investments in the sector, while Samba came second with 1,.9% of aggregate investments. SAIB 155% ALBILAD 144% NCB 46% ANB 18% ALRAJHI 10% SAMBA 9% SABB 9% BSFR (2%) SHB (3%) BJAZ RIBL (44%) (57%) ALINMA (75%) Short Term: one year and less Medium Term: 1-3 years Long Term: over 3 years 6
7. Sector : Banks and Financial Services H1 2016 August 29, 2016 Total Deposits Growth - H1 2016 Customer Deposits By the end of H1 2016, total customer deposits decreased by 2.,% YoY reaching SAR 1,662 billion. H1 2015 NCB H1 2016 3% -13% ALINMA Four banks held ,,..% of total deposits. NCB accounted for 18.9% of total deposits versus 16.0% for Al Rajhi Bank, while Samba and Riyadh held 10.,% and 9.9% of the deposits market. ALBILAD The structure of deposits in the Saudi market was as follows: demand deposits dropped by 12% YoY posting SAR 1,02. billion; representing 61.8% of total deposits, time deposits grew by 22.8% to SAR ,60.6 billion, representing 00.9% of total deposits, while savings increased 16.0% and other deposit declined by 1,.1%. SABB NCB and Al Rajhi Bank controlled ,,.6% of demand deposits in the market, while the other ten banks captured the remaining ,,.,% share. RIBL ALRAJHI 1% SAMBA 1% ANB 10% 11% 6% 12% -2% 9% -1% BSFR 9% -3% SHB 18% 3% SAIB 12% -3% BJAZ 14% -9% 4% -2% Sector Deposits per Bank - H1 2016 Deposits Breakdown for Each Bank - H1 2016 Demand Deposits Time Deposits 16% Saving Accounts Other Deposits 3% RIB L 44% BJAZ SAIB SHB 50% 49% 39% ANB 58% SAMBA 61% ALRAJHI ALINMA NCB 0% 3% 39% 5% 1% 47% 3% 31% 4% 92% ALBILAD 63% 53% 4% 7% 1% 25% 0% 46% 70% 4% 5% 10% 6% 1% 2% 35% 51% 4% 10% 9% 8% 5% 2% 62% 55% 3% 8% 19% 2% 61% BSFR SABB 0% 50% 32% 36% 22% 21% 1% 3% Demand Deposits Time Deposits 34% Saving Accounts 11% 1% 26% Sector Deposits Breakdown - H1 2016 62% Other Deposits 4% Assets The total assets of the 12 banks soared 2.,% in H1 2016 coming in at SAR 2,22, billion; of which NCB contributed 20.,%. In the second place, Al Rajhi bank captured 1,.9% of total assets of the sector, followed by 10.,% for Samba and 10.2% for Riyad Bank. Profitability Average return on shareholders' equity tumbled by the end of H1 2016 to 1,.0.% YoY, yielding a P/BV* of 1.0.x, and a P/E* of ..9,x. Interest margin in the sector continued to drop reaching 0.00% at the end of the first half of 2016 recording a decline by 9, bps. Loans to Deposits Ratio H1 2015 H1 2016 82% RIBL 76% BJAZ 94% 87% 81% SAIB 90% 86% 90% 88% 93% 84% 87% 84% 91% SHB BSFR SABB ANB 77% 76% 78% 83% 83% 88% 88% 90% SAMBA ALRAJHI ALBILAD ALINMA 65% NCB 84% Net Interest Margin Change –H1 2016 BSFR (0.51%) SAMBA (0.62%) SABB (0.63%) SHB (0.73%) SAIB (0.76%) ANB (0.85%) RIBL (0.88%) ALBILAD (1.06%) ALRAJHI BJAZ ALINMA *As of closing prices of Aug 28, 2016 NCB (1.89%) (1.09%) (1.26%) (1.36%) 7
8. Sector : Banks and Financial Services H1 2016 August 29, 2016 Pro Forma Income Statement and Balance Sheet of Banking Sector Income Statement (SAR million) H1 210, H1 2016 Growth Special Commission Income 00,190.6 0,,.22.. 18.0% Special Commission Expense 0,68,.2 .,0,..0 99..% Net Special Commission Income 26,,06., 28,06,., ..0% Exchange Income, Net 2,,01., 2,.00.0 6..% Fees and Commission Income, Net 8,920.2 8,902.0 -0.2% Other Operating Income 0,10,.0 1,890., -09.1% Total Operating Income ,1,060., ,1,8,8., 1.9% Salaries and Employees Expense 8,,.1.8 8,,09.6 -1.9% Rent Expense 1,0,0.0 1,,8,., 10.0% Provision for Credit Losses 0,1,9.1 0,012., ,.2% Provision for Investment Losses 11..0 180.9 ,,.2% Depreciation and Amortization 0,,06.. 0,82,.2 8.2% General and Administration Expenses 1,292.2 1,0,... ,.1% ,1.9 02.8 -06..% Total Operating Expense 18,069.0 18,600.2 0.0% Net Income 20,0,1., 20,00,.8 1.1% ,2.0 6..0 ,9.,% 20,1,2.. 20,016.2 0..% Other Expenses Minority Net Income Available to Shareholders Balance Sheet (SAR million) H1 210, H1 2016 Growth Cash and Balances with SAMA 1.,,.10., 16,,,0,.8 -,.0% Due from Banks and Other Financial Institutions 100,106.0 1,6,,0,.2 ,1..% 1,002,,81.9 1,,,0,1.2., 8.1% ,0,,890.. 090,,,,., -22.2% Long Term Investments, Net 0,292.2 0,028.9 1.1% Property and Equipment, Net 20,99,.0 22,981., 9.,% Other Assets 0,,,0..1 ,1,8,,.2 21.0% Total Assets 2,1.,,98..0 2,220,820.6 2.2% .6,290.8 106,,,..8 .9.0% 1,166,9,0., 1,026,.21.. -12.0% Savings 16,912.0 19,668.2 16.0% Time Deposits ,,8,806.0 ,60,621.6 22.8% Loans and Advances, Net Investments, Net Due to Banks and Other Financial Institutions Demand Deposits Other Deposits 60,.,1., ,1,,.0.. -1,.1% 1,.00,,00., 1,661,,82.2 -2.,% Long Term Liabilities ,2,01,.8 ,1,,,1., -2.1% Other Liabilities ,1,009.6 ,8,08,.8 1,.,% Total Liabilities 1,8.0,0,9.6 1,89.,9,6., 1.0% 001,90..0 02,,86..2 ..9% 2,1.,,98..0 2,220,820.6 2.2% Total Customer Deposits Shareholders’ Equity Total Liabilities and Shareholders’ Equity 8
9. Sector : Banks and Financial Services H1 2016 August 29, 2016 Financial Indicators EPS (SAR) PE BV (SAR) P/BV RoE Capital Adequacy (Tier 1) RIBL 10.,. 0,000 1,,.0 ,,069 0.,.98 01,,10 1.06 ...2 12.,9 0.80 %10.9, %16.22 %18.,0 BJAZ 11.60 ,00 0,, .20 .,811 ,,6,2 1.81 6.,0 19.,2 0.,9 %11.81 %1,.,0 %18... SAIB 11.1, .00 ,0, 1,111 11,8,1 .,80, 1.,9 ..00 16.92 0.6, %9.00 %10.80 %16.82 SHB 10.,, 1,1,0 01, 1,996 12,.,6 11,9,, 1.., ,.99 11.1, 0.90 %16..2 %12.0. %16.09 BSFR 20.89 1,20, 6,8 ,,096 28,6,1 2,,180 0.,0 6.1, 20..6 0.8. %1,.,8 %1,.10 %1..1. SABB 1..,0 1,,00 ,88 ,,0.1 29,802 26,29, 2.91 6.02 19.86 0.88 %1,.02 %1,..0 %1...6 ARNB 16.,0 1,000 ,86 2,926 22,008 16,,00 2.90 ,.61 22.0 0..0 %10.06 %10.68 %1,.,, SAMBA 18.20 2,000 1,00, ,,1., ,0,10. 06,,00 2.,9 ..00 20.06 0.9 %12.9, %19.,, %20.0, Al Rajhi ,,.92 1,62, 1,180 .,.09 ,9,0,8 89,2,, ,..6 11.,0 00.18 1.81 %16.62 %19.82 %20.90 AL Bilad 1,.16 600 018 .66 6,810 9,096 1.28 11.8. 11.0, 1.00 %11.88 %1,.,0 %1,.,1 Alinma 12.69 1,,00 1,110 1,,61 18,088 19,00, 1.0, 12.19 12.2, 1.00 %8.60 %19.9. %20.,8 NCB 0,.98 2,000 .10 9,189 ,8,2,6 69,960 ,.60 ..61 29.12 1.2 %1..10 %16.2, %18.06 16,6.0 8,,9. ,0,.2, 020,,86 0,.,,20 2.62 ..9, 19., 1.0. %1,.0. %16.,1 %18.02 Bank Total Issued Floating Shares Shares Net Income* Equity (SAR Market Cap. Closing Price (mm Shares) (mm Shares) (SAR mm) mm) (SAR mm) Capital Adequacy (Tier 1+2) * Last twelve months ending Q2 2016 As of closing prices of Aug 29, 2016. 9
10. Sector : Banks and Financial Services H1 2016 August 29, 2016 Banks Financial Statements Summary by the End of H1 2016 Special Commission Income Bank Market Share H1 2015 H1 2016 YoY H1 2015 H1 2016 RIBL 2,8.1 0,,.. %21.1 %9., %9.. BJAZ 909 1,090 %16., %0.1 %0.1 SAIB 1,18, 1,,90 %2,.. %0.9 %,.2 SHB 1,0,. 1,8.8 %08.0 %,., %,.0 BSFR 2,0,0 2,800 %19.0 %..8 %..8 SABB 2,066 2,88, %21.9 %..8 %8.1 ARNB 2,186 2,.0. %20.9 %..2 %..6 SAMBA 2,,08 0,11, %2,.2 %8.0 %8.. Al Rajhi ,,108 ,,,91 %8.8 %1..0 %1,.. AL Bilad ,8, 829 %,2.1 %1.9 %2.0 Special Commissions Expense Bank RIBL BJAZ SAIB SHB BSFR SABB ARNB SAMBA Al Rajhi AL Bilad H1 2015 H1 2016 Market Share YoY H1 2015 H1 2016 296 8,0 %186.9 %8.0 %11., 109 008 %1,2.6 %0.8 %,.6 02, 6,6 %102.8 %8.8 %8.9 2,8 6.2 %160.. %..0 %9.1 0., 696 %86.2 %10.2 %9., 268 ,86 %118.8 %..0 %8.0 206 660 %1.9.2 %6., %9.0 21. ,20 %1,0.9 %,.9 %..1 161 260 %61.9 %,., %0., 2, 1,, %,16.1 %0.. %2.1 Alinma 1,281 1,,00 %1..1 %,.2 %,.2 Alinma 121 019 %16,.0 %0.0 %,.0 NCB .,,21 8,0,9 %12.6 %2,.6 %20., NCB 1,26, 1,6,2 %29.8 %0,.0 %22.0 Total 00,191 0,,.20 %18.0 %100.0 %100.0 Total 0,68, .,0,. %99.. %100.0 %100.0 Net Special Commissions Income Bank RIBL BJAZ SAIB SHB BSFR SABB ARNB SAMBA Al Rajhi AL Bilad Alinma NCB Total Market Share H1 2015 H1 2016 YoY H1 2015 H1 2016 %9.0 RIBL 9.6 828 (%1,.2) %10.9 %9.0 (%,.6) %0.0 %2.. BJAZ 0,9 029 (%,..) %0.9 %0.. 800 (%0.0) %0.0 %2.9 SAIB 200 216 (%..1) %2.6 %2., 1,100 1,206 %9.. %,.1 %,.0 SHB ,80 ,22 (%12.,) %,., %,.. 1,9.9 2,10, %6.0 %.., %.., BSFR .12 .2. %2.1 %8.0 %8.2 2,099 2,299 %9., %..9 %8.1 .,, (%..0) %9.1 %8., 2,0,8 %,.0 %.., %..2 SABB 811 1,9,0 ARNB .00 ,6. (%22.2) %8.2 %6., 2,291 2,,91 %10.1 %8.6 %9.1 900 801 (%10.9) %10., %9.0 ,,9.8 ,,001 %..1 %18.8 %18.8 SAMBA 1,6.. %2..9 %1,.. %18.8 ,,8 6., %20.8 %2.1 %2., Al Rajhi 1,012 ,1. %6.0 %,., %,.. 1,181 %1.8 %,., %,.2 AL Bilad 090 1,160 6,1,6 6,.1. %9.1 %20.2 %20.. Alinma 290 00, %,.0 %0.2 %0., 1,800 %..6 %19.1 %20.6 28,06, %..0 %100.0 %100.0 NCB 1,.00 26,,06 Total 8,920 8,902 (%0.2) %100.0 %100.0 YoY 2,,., 2,62. %2.0 800 .,, 862 RIBL BJAZ SAIB SHB BSFR SABB ARNB SAMBA Al Rajhi AL Bilad Alinma NCB Total H1 2015 H1 2016 Market Share H1 2015 ,,216 H1 2016 YoY ,,01, (%,.8) 1,809 1,0,0 1,290 1,200 1,8,, H1 2015 H1 2016 Bank Market Share %9.. H1 2015 H1 2016 Revenues Bank Net Commission and Fees Operating Expenses Bank %10.0 %9.6 RIBL (%2,.2) %,., %0.2 BJAZ (%6.9) %0.1 %2.9 1,86, %0., %,., %,., SHB 0,169 0,200 %1.9 %... %... BSFR 0,092 0,,,. %,.8 %8.0 %8., SABB 0,006 0,021 %0., %..0 %..2 ARNB 0,922 0,890 (%0..) %9.6 %9.0 SAMBA 6,9,. .,,9, %9.2 %16.9 %18.1 Al Rajhi 1,1,0 1,26, %10.9 %2.8 %0.0 AL Bilad 1,,., 1,,,2 (%2.1) %0.8 %0.. Alinma 8,.00 9,022 %6.8 %21.0 %22.0 NCB ,1,060 ,1,8,8 %1.9 %100.0 %100.0 Total SAIB Market Share H1 2015 H1 2016 1,.10 (%11.,) 8,6 .98 616 .0. ... 1,902 YoY H1 2015 H1 2016 %10.. %9.2 (%,.6) %,.. %,.0 %19.6 %0., %,.0 810 %,., %,.0 %,., 1,10. 1,10. %0.0 %6.1 %6.0 1,221 1,28, %,.2 %6.8 %6.9 1,,20 1,,68 %0., %..9 %..9 1,011 1,019 %0.6 %..0 %..1 0,,9. 0,,2, %0.8 %19., %19.0 .,9 90, %19.2 %,.2 %,.9 860 .06 (%1,..) %,.8 %,.0 0,.20 ,,200 %12.9 %20.6 %22.6 18,069 18,600 %0.0 %100.0 %100.0 All numbers are in SAR million unless specified Sources: Financial statements 10
11. Sector : Banks and Financial Services H1 2016 August 29, 2016 Banks Financial Statements Summary by the End of H1 2016 Net Income Market Share Bank H1 2015 H1 2016 YoY H1 2015 H1 2016 RIBL 2,000 2,020 %0.86 %9.9 %9.9 BJAZ 960 ,,9 (%,2.0) %,.2 %2., SAIB .,9 ,01 (%29.1) %0.2 %2.0 SHB 1,0.8 1,0,1 (%2.,) %,.. %,., BSFR 2,066 2,126 %2.9 %8.9 %9.1 SABB 2,2,2 2,290 %1.8 %9.. %9.8 ARNB 1,606 1,,6. (%2.,) %6.9 %6.. SAMBA 2,610 2,,.2 (%1.,) %11.0 %11.0 Al Rajhi 0,,60 ,,069 %1..6 %1,.0 %1.., AL Bilad 081 0,8 (%,.8) %1.6 %1., Alinma .09 800 %12.9 %0.1 %0., NCB ,,968 ,,068.06 %2.0 %21., %21.. Total 20,1,0 20,016 %0.. %100.0 %100.0 Retail Banking Net Income Bank Contribution to YoY Bank Net Income Sector Net Income Corporate Banking Net Income Contribution to Bank YoY Bank Net Income Sector Net Income H1 2015 H1 2016 RIBL 0,, .61 %11,., %6., %10.0 RIBL 1,.60 1,221 (%00.6) %18.6 %1,.0 BJAZ ,.- 100 (%2.6.2) %1.0- %1., BJAZ 1,. 00 (%.9.,) %1.6 %0., SAIB 11, 1,2 %20.0 %2.1 %1.9 SAIB ,1, 2,6 (%,0.9) %,., %2.9 SHB 18. 2,. %02.1 %0., %0.0 SHB .06 .8, %11.0 %.., %9.2 BSFR 218 186 (%1,.,) %0.9 %2., BSFR 1,1., 1,220 %,.2 %12., %1,., SABB ,,, ,2. (%6.2) %8.2 %,.8 SABB 1,00, 1,1,, %11., %10.9 %10., ARNB 00. 180 (%,6.,) %6.1 %2., ARNB .09 6,6 (%12.6) %..8 %..6 H1 2015 H1 2016 SAMBA 220 099 %81., %,.0 %,., SAMBA 1,0.0 1,0.. %0., %11.0 %12.6 Al Rajhi 2,,,, 2,901 %18.. %,,.1 %09.2 Al Rajhi 20. 90 (%,6.,) %2.2 %1.1 AL Bilad ,1 00 (%0,.0) %0.9 %0., AL Bilad 208 19, (%6.,) %2.2 %2.0 1,1 1,0 %1.0 %2.6 %1.9 Alinma ,00 ,.2 %1..1 %,.0 %,., NCB 1,0.0 1,880 %.,.. %19.0 %2,., NCB 1,619 1,082 (%1,.6) %1..1 %16.2 Total ,,,0, .,099 %00.. %100.0 %100.0 Total 9,,8. 8,,22 (%10.2) %100.0 %100.0 Alinma Treasury Net Income Contribution to Brokerage & Investment Net Income Contribution to Bank Sector Net Income Bank H1 2015 H1 2016 YoY Bank Net Income RIBL ,,, ,,0 (%18.,) %8.2 %..0 BJAZ 20. 2,9 %,.2 %0.6 %0.9 SAIB 198 210 %.., %0.0 %0., SHB 16. 8 (%9,.,) %2., BSFR ,89 661 %12., SABB 681 691 ARNB 092 SAMBA H1 2015 H1 2016 YoY Bank Net Income Sector Net Income RIBL 116 .. (%00.8) %9.0 %8.0 BJAZ 102 29 (%.1.2) %8.2 %0.2 SAIB 00 2 (%9,..) %2., %0.2 %0.1 SHB 18 11 (%0..8) %1., %1.2 %8.8 %10., BSFR 86 ,, (%06.0) %6.9 %6.0 %1., %10.2 %10.9 SABB 81 21 (%.0..) %6., %2.0 ,82 %,8., %,.9 %9.2 ARNB 06 2, (%0,.8) %2.9 %2.6 1,012 829 (%18.1) %1,.2 %10.1 SAMBA 00. 2.0 (%11.9) %2,.6 %29.0 Al Rajhi ,60 8,, %,0.8 %8., %10.0 Al Rajhi 2,0 20, (%6.0) %20.0 %2,., AL Bilad ,, 92 %66.1 %0.8 %1., AL Bilad 18 11 (%0..0) %1., %1.2 Alinma 102 106 %0.1 %2.0 %2.1 Alinma 02 ,9 %,1.2 %2.6 %,.0 NCB 2,091 1,,8, (%2,.2) %01., %2,.0 NCB 1.0 108 (%19.0) %10.6 %1,.9 Total 6,6,8 6,00, (%,.9) %100.0 %100.0 Total 1,2,6 921 (%26.1) %100.0 %100.0 All numbers are in SAR million unless specified Sources: Financial statements 11
12. Sector : Banks and Financial Services H1 2016 August 29, 2016 Banks Financial Statements Summary by the End of H1 2016 Retail Banking Revenue Contribution to Corporate Banking Revenue H1 2015 H1 2016 YoY Bank Revenue Sector Revenue RIBL 1,011 1,2.2 (%0.0) %01.. %..1 RIBL 1,82. BJAZ ,02 ,9. %1,.1 %06.. %2.8 BJAZ 02. SAIB ,06 ,,, %00.8 %,,.2 %0.0 SAIB SHB ,06 .06 %01.. %0..9 %0.9 Bank Contribution to YoY Bank Revenue Sector Revenue 1,,,, (%1,.,) %08., %11.8 201 (%29.0) %1..1 %1.8 ,66 ,,6 (%21.2) %0..1 %0., SHB 1,062 1,06. %0., %,..0 %8.2 Bank H1 2015 H1 2016 BSFR .,1 .6, %0.0 %20.. %,.0 BSFR 1,,0, 1,,6. %2.0 %,8., %12.0 SABB 1,16. 1,16, (%0.2) %02.. %6., SABB 1,,8, 1,626 %9., %,,.. %12., ARNB 1,220 1,088 (%11.0) %06.0 %6.1 ARNB 1,1,, 1,0,2 (%8.1) %0,.8 %8.1 SAMBA 1,010 1,201 %21., %01.6 %6.9 SAMBA 1,,12 1,,01 (%0.8) %06.0 %10.. Al Rajhi ,,1,1 ,,,,0 %... %.0.1 %01.0 Al Rajhi 889 .9, (%10.,) %10., %6.1 AL Bilad 61. 6,6 %,.. %,1.1 %0.6 AL Bilad 0,, 096 %12.0 %01., %0.0 Alinma ,10 ,,1 %.., %0,.. %0.1 Alinma .0. 6., (%,..) %,0.. %,.2 NCB 2,9.2 0,866 %00.1 %,1., %21.6 NCB 2,0.6 2,2,0 %8.0 %2,.1 %1..2 Total 16,081 1.,881 %11.2 %,2.. %100.0 Total 10,08, 10,0,0 (%2.,) %01.2 %100.0 Treasury Revenue Contribution to Brokerage & Investment Revenue Bank Sector Revenue Bank H1 2015 H1 2016 YoY Bank Revenue RIBL ,.8 ,10 (%11.2) %12.8 %..0 BJAZ 02, 06, %12.2 %26.9 %,.0 SAIB 2.2 002 %11.1 %2,.1 SHB 21, ,9 (%.2..) BSFR .0, .,9 %6.1 SABB .,1 .6. %0., %21.6 Contribution to H1 2015 H1 2016 YoY Bank Revenue Sector Revenue RIBL 19. 1,0 (%22.1) %0.8 %9.1 BJAZ 180 10, (%,2.6) %..8 %6.0 %,.1 SAIB ., ,0 (%,1.,) %0.6 %2.6 %0.1 %0.8 SHB ,0 02 (%2,.,) %1.. %1.9 %20.2 %10.2 BSFR 18. 1,9 (%20.,) %,.6 %8.9 %10., SABB - - - - - ,,0 6,, %,6.6 %21., %8.8 ARNB .6 .0 (%..6) %2.0 %,.2 SAMBA 1,090 890 (%18.0) %22.9 %12.2 SAMBA ,0, 068 (%9.0) %9., %21.9 Al Rajhi ,89 921 %,6.2 %12.1 %12., Al Rajhi 028 029 %0.0 %,.0 %19.6 AL Bilad 81 120 %,2.0 %9.. %1.. AL Bilad ,0 08 (%,.9) %0.0 %2.2 ARNB 28. 200 (%18.9) %1,.1 %0.2 Alinma 68 8, %20., %,., %,.0 NCB 2,208 1,.81 (%20.,) %19.1 %2,.2 NCB 0,0 00. (%12.0) %0.0 %18.0 Total .,,6, .,0,8 (%2.9) %1..6 %100.0 Total 1,9,9 1,6.8 (%10.9) %,.0 %100.0 Alinma All numbers are in SAR million unless specified Sources: Financial statements 12
13. Sector : Banks and Financial Services H1 2016 August 29, 2016 Banks Financial Statements Summary by the End of H1 2016 Contribution of Segments Revenue for Each Bank Bank Retail Corporate Treasury Brokerage Others Total RIBL %01.. %08., %12.8 %0.8 %10.2 %100 BJAZ %06.. %1..1 %26.9 %..8 %11., %100 SAIB %,,.2 %0..1 %2,.1 %0.6 %10.9- %100 SHB %0..9 %,..0 %0.1 %1.. %0.0 %100 BSFR %20.. %,8., %20.2 %,.6 %0.0 %100 SABB %02.. %,,.. %21.6 %0.0 %0.0 %100 ARNB %06.0 %0,.8 %21., %2.0 %,., %100 SAMBA %01.6 %06.0 %22.9 %9., %0.0 %100 Al Rajhi %.0.1 %10., %12.1 %,.0 %0.0 %100 AL Bilad %,1.1 %01., %9.. %0.0 %,.9 %100 Alinma %0,.. %,0.. %1,.1 %,., %0.0 %100 NCB %,1., %2,.1 %19.1 %0.0 %12.1 %100 Total %,2.. %01.2 %1..6 %,.0 %,.6 %100.0 Contribution of Segments Net Income for Each Bank Bank Retail Corporate Treasury Brokerage Others Total RIBL %02.8 %,2.6 %19.1 %0.0 %..9- %100 BJAZ %18.0 %,., %,,.6 %,.2 %26.8 %100 SAIB %20.2 %0,.0 %00.0 %0.2 %18.9 %10, SHB %20., %.,.. %0.. %1.1 %0.0 %100 BSFR %8.8 %,.., %01.1 %2.6 %0.0 %100 SABB %18.6 %,0.0 %00.1 %0.9 %0.0 %100 ARNB %11., %,1.2 %0..1 %1., %8.6 %100 SAMBA %1,., %,1.9 %02.2 %10., %0.1- %100 Al Rajhi %.1.0 %2.2 %20.. %,.8 %0.0 %100 AL Bilad %9.2 %,,.0 %2,.. %0.2 %..6 %100 Alinma %1..9 %,9.0 %1..0 %6.1 %0.0 %100 NCB %0..1 %2..0 %01.0 %2.. %1.6 %100 Total %01., %06.0 %2..0 %0.9 %1.0 %100 All numbers are in SAR million unless specified Sources: Financial statements 13
14. Sector : Banks and Financial Services H1 2016 August 29, 2016 Banks Financial Statements Summary by the End of H1 2016 Net Loans Bank RIBL BJAZ SAIB SHB BSFR SABB ARNB SAMBA Al Rajhi AL Bilad Alinma NCB Total Market Share H1 2015 10.,102 H1 2016 YoY RIBL BJAZ SAIB SHB BSFR SABB ARNB SAMBA Al Rajhi AL Bilad Alinma NCB Total %10.0 %10.. ,2,,01 ,,,212 %,.0 RIBL 1,196 %0.2 %0.1 ,.,1., 61,2,1 %..1 BJAZ %,.0 %,.0 .1,,66 ..,900 %9.0 SAIB %,., %,., 12,,008 129,60. %0.. %9., 126,9,8 101,101 %0.0 111,,90 11.,8.. %,.. 100,882 100,820 (%0.0) %9.8 %9.1 210,621 22,,,20 %6.6 SAMBA %1,.8 %1,.6 01,680 06,900 %16.6 %2., %2.6 ,0,086 66,,88 %2,., %,.0 %,.6 20,,282 26,,.66 %10.0 %1..6 %18., 1,002,,82 1,,,0,1.0 %8.1 NCB %100.0 %100.0 Total 09,000 H1 2016 YoY 08,.09 (%0..) 1,,.69 1.,088 %10.0 12,121 1,,80, 10,,00 18,998 9,.92 YoY H1 2015 H1 2016 1,08. %16.0 %8.0 %8.. ,29 0., (%12..) %2.9 %2.0 ,28 ,68 %9.0 %2.9 %2.9 910 %,., %,.8 %,.. %0.1 %..2 %6.9 SHB 860 %9.0 BSFR 1,0.2 1,10, %9., %9.1 SABB 1,,08 1,,,8 %2.. %10.1 %9.. %8., %8.2 ARNB 1,1., 90, (%22.9) %..9 %,.6 1,6,6 1,208 (%2,.8) %11.0 %... Al Rajhi 2,682 0,291 %22.. %18.0 %20., AL Bilad ,99 ,22 %,.6 %0.0 %0.0 ,,0 %16.. %2.6 %2.8 0,02, 0,80, %26.8 %20.0 %20.9 1,,906 16,00, %..6 %100.0 %100.0 Market Share H1 2015 Market Share H1 2015 H1 2016 %12.8 H1 2015 %9.2 H1 2016 086 Alinma Corporate Loans Bank Market Share H1 2015 H1 2016 YoY H1 2015 H1 2016 %8., RIBL 98,8,9 116,6.8 %18.0 %10.. %11.. %0.. %0.8 BJAZ 26,9.8 2.,0.. %0., %2.9 %2.. %00.6 %2.9 %0., SAIB ,,,,20 ,,,9,0 %1.1 %,.9 %,.6 %,0.. %0.2 %,.1 SHB ,8,,0. ,9,,20 %1.. %6., %6.0 11,1,0 %10.9 %2.0 %2., BSFR 116,,.0 119,.62 %2.8 %12.6 %12.1 26,0,0 26,86, %1.9 %6.2 %,.8 SABB 101,,90 10,,2,8 %0.. %11.0 %10.6 26,,1, 2.,,,2 %0.9 %6.0 %6.0 ARNB 86,0,1 92,002 %6.6 %9., %9.0 20,006 20,,18 %0., %,.8 %,., SAMBA 111,,69 111,211 (%0.0) %12.1 %11.2 1,.,,,, 16,,,2. %,.1 %0..2 %06.0 Al Rajhi ,,,.89 62,118 %11.0 %6.1 %6.0 11,116 12,610 %10., %2.6 %2.. AL Bilad 20,908 2,,..0 %18.0 %2.0 %2., 12,.22 1,,2,9 %12.1 %0.0 %0.1 Alinma ,1,08, ,2,,6. %2..9 %,., %,.0 .8,,29 90,002 %1,.8 %18., %19.6 NCB 1,.,81. 1.6,,60 %11.8 %1..1 %1..8 ,20,098 ,,9,000 %8.6 %100.0 %100 Total 921,296 990,099 %..8 %100.0 %100.0 Net Investments Bank Bank 1,,,66. Retail Loans Bank H1 2015 H1 2016 Non-Performing Loans Market Share H1 2015 H1 2016 Total Assets Bank Market Share H1 2015 H1 2016 YoY H1 2015 H1 2016 22.,..6 2.,% 10.2% 10.2% 68,0,2 1.1% 0.1% 0.1% 92,,09 96,0,, 0.8% ,.0% ,.0% SHB 102,2.0 108,60, 6.2% ,..% ,.9% BSFR 18,,9,0 190,912 ,.0% 8.,% 8..% SABB 192,028 191,8.1 (0.2%) 8.8% 8.6% 166,,.8 0.1% ...% ..,% H1 2015 H1 2016 YoY RIBL ,.,,., ,2,.8. (%9.9) %9., %10.9 RIBL 222,,8, BJAZ 11,,00 16,,0, %,2., %2.0 %,.2 BJAZ 6.,600 SAIB 2,,182 20,,60 (%1,.,) %,.8 %,.2 SAIB SHB 20,,,1 20,816 %1.0 %,.1 %,.0 BSFR 09,.0. 20,889 (%09.8) %..8 %6.1 SABB ,,,61. 28,129 (%0..0) %8.8 %..1 (%02.0) %6.. %,.9 ARNB 166,,2, ,8,6,, (%,.,) %12.1 %1,.9 SAMBA 22,,900 200,992 0.6% 10.,% 10.,% 0,,922 (%,0..) %12.0 %9.1 Al Rajhi 02.,0.0 001,081 1.0% 1,.0% 1,.9% 2,990 %2..0 %0., %0.8 AL Bilad ,9,1,0 ,,,,10 10..% 2.0% 2.,% ARNB 00,866 20,00. SAMBA 61,0,6 Al Rajhi 60,,,6 AL Bilad 2,0,1 8,,68 ,,.08 (%00.,) %1.. %1., Alinma 81,809 98,186 20.0% 0.8% ,.,% NCB 1,1,1,2 11,,.28 (%2,.1) %29.9 %29.2 NCB ,61,,06 ,,2,6.2 (1.9%) 21.2% 20.,% Total ,0,,891 090,,,, (%22.2) %100.0 %100.0 Total 2,1.,,98. 2,220,82, 2.2% 100.0% 100.0% Alinma All numbers are in SAR million unless specified Sources: Financial statements 14
15. Sector : Banks and Financial Services H1 2016 August 29, 2016 Banks Financial Statements Summary by the End of H1 2016 Provisions Market Share Bank RIBL BJAZ SAIB SHB BSFR SABB ARNB SAMBA Al Rajhi AL Bilad Alinma NCB Total Retail Provisions Bank H1 2015 RIBL ,20 BJAZ -10, SAIB 10 SHB ,1 BSFR -1 SABB 11, ARNB 109 SAMBA .6 Al Rajhi ,., AL Bilad 0, Alinma 18 NCB 2.. Total 1,600 H1 2015 H1 2016 ,,0 10, 69 19, 80 229 2.0 .6 989 ,, 1,8 ,9. 0,1,9 190 ,8 1.6 188 .8 2,8 022 80 1,090 110 08 .28 0,012 Market Share H1 2016 YoY H1 2015 H1 2016 - - 0.2% ,0 (90.,%) 9, 81..6% 0.6% 29 - - 2 106 160.0% 02..% 2.6% 10, 1..,% ..1% ,9 (20.2%) ,.8% 00 (10.9%) 102 (,2.0%) 18, ,,, 2, 1,099 02.6% 0.6% 6..% ..6% 2.1% 9.6% 8..% 10.2% 16.8% 29.6% 09.6% 09.9% 1.1% 1.8% (12.6%) 2.2% 1..0% 100.0% ,.2% 2.1% 9.,% 100.0% YoY H1 2015 (,..1%) (,,.,%) 1,,.1% (0.1%) (2.0%) 8.6% 1..9% 8..% 10.,% 1,0.9% (.,.,%) ,6.,% ,.2% Corporate Provisions Bank H1 2015 RIBL 80 BJAZ 0 SAIB ,9 SHB 1,0 BSFR 81 SABB 11, ARNB 10, SAMBA 00 Al Rajhi ,1, AL Bilad 10 Alinma 101 NCB -109 Total 1,1.0 H1 2016 1,.1% 0.0% 2.2% 6.2% 2.,% ..0% 8..% 2.,% 01.,% 1.,% ,..% 1,.8% 100.0% ,..% 1.8% ,.0% ,..% 2.,% ..,% 9..% 2.,% 00.0% 0.0% 1.1% 22.0% 100.0% Market Share H1 2016 YoY H1 2015 H1 2016 - 0.0% 0.6% 1,0 .,.6% 82 09.,% ,6 6.8% ,.0% 82 (,6.,%) 10.1% 11, (0.0%) 9.8% ,9 108 (09.,%) 2..% 11.,% ,.6% ,,.1% (90.1%) 11.2% 02..% 100.0% 2, (20.2%) 80 6.6.,% 20, - ,09 10 1,,,0 6.9% 2.6% 0.9% - 9.0% ,.0% ,.0% 0.2% ..,% 8.9% 1.6% 0,..% ,.2% 0.8% 1,.1% 100.0% All numbers are in SAR million unless specified Sources: Financial statements, 15
16. Sector : Banks and Financial Services H1 2016 August 29, 2016 Banks Financial Statements Summary by the End of H1 2016 Customer Deposits Bank Gross Loan / Deposit Ratio Market Share H1 2015 H1 2016 YoY Bank H1 2015 H1 2016 H1 2015 H1 2016 YoY RIBL 16.,0., 16,,0,0 (1.8%) 9.8% 9.9% RIBL 82.1% 9,.0% 12.22% BJAZ ,,,962 ,0,.00 (9.0%) 0.0% 0.1% BJAZ .,.8% 8..2% 11.08% SAIB .0,,.. 68,08. (0.,%) ,.1% ,.1% SAIB 81.1% 90.0% 8.8,% SHB 80,,60 86,,1, 0.,% ,.9% ,.2% SHB 8,.,% 90.1% ,.60% BSFR 1,2,601 108,810 (2..%) 8.,% 8.,% BSFR 8...% 90.,% ,..0% SABB 1,1,100 1,0,269 (0.6%) 8.9% 9.0% SABB 8,.0% 8..2% 0.22% ARNB 102,,1. 129,1,9 (2.,%) ..8% ..8% ARNB 8,.2% 91.0% ..0.% SAMBA 1.0,881 1.2,121 0..% 10.0% 10.,% SAMBA .6.6% .6.00% (0.,9%) Al Rajhi 269,,2, 2.0,9,8 0.6% 1,.8% 16.0% Al Rajhi .8.2% 82.9% ,.69% AL Bilad 08,002 ,2,118 10.0% 2.2% 2.,% AL Bilad 82..% 8...% ,.96% Alinma 60,,89 .,,166 22.,% 0.6% ,.,% Alinma 88.1% 89.6% 1.,,% NCB 060,9.. 01,,.08 (12.8%) 21.2% 18.9% NCB 6,.9% 8,.1% 19.20% Total 1,.00,,00 1,661,,82 (2.,%) 100.0% 100.0% Total .8.2% 86..% 8.,,% Customer Deposits Breakdown On Demand Bank Saving Accounts Market Share H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 YoY RIBL 90,2,8 .2,.06 (22.0%) ..1% BJAZ 26,,92 2,,66, (..0%) 2.,% - - SAIB 21,102 22,010 ,.2% 2.1% 869 0,108 SHB 02,9,0 0,,0.2 0.,% 0.0% ,,, ,,8 (1.6%) BSFR 106,66, 86,02, (19.1%) 8.,% ,.8 ,02 SABB 98,008 82,088 (1,.9%) 8.0% .,669 .,..1 ARNB .,,,82 6,,021 (10.,%) 6.,% 11, SAMBA 11,,.9. 10,,9.0 (9.0%) 10.2% Al Rajhi 2,0,20, 2,8,86, (1..%) 2,.2% AL Bilad 29,.10 26,.20 (10.1%) Alinma 06,090 09,110 ..,% 0,6 006 YoY Time Deposits Market Share H1 2016 H1 2015 H1 2016 (11.,%) YoY Market Share H1 2016 1.6% 62,962 81,969 00.2% 1,.,% - - 28,110 2,,190 (10.,%) ,.,% 261.0% 16.0% ,.,2,0 ,1,80, (11.,%) ..,% 2.0% ,8,8.1 ,0,010 2.9% 8.9% ,.2% 2.6% 01,,0, ,.,900 ,2.0% 8.,% 1.0% 09.,% ,2,60. ,8,2.. 06.8% 10.0% 82 (28.6%) 0.,% ,2,0,1 60,,0. 16.1% 10..% 6,820 .,260 6.,% 06.9% ,0,,1, ,2,8,2 00.,% 9.,% - - - - 11,601 18,,22 ,8.8% 0.0% 2.6% - - - - ,,012 10,6,0 1,6..% 1.9% 0.8% - - - - 20,,08 0,,006 ,6.,% 6.1% NCB 2..,.0, 219,,,0 (21.0%) 21.,% 1,9 1,8 (0.0%) 0.8% 6,,,,0 81,,82 2,.0% 1,.,% Total 1,166,9,0 1,026,.22 (12.0%) 100.0% 16,912 19,668 16.0% 100.0% ,,8,806 ,60,622 22.8% 100.0% Shareholders Equity Bank Contribution H1 2015 H1 2016 YoY H1 2015 H1 2016 RIBL 06,,,8 0.,.98 0.,% 12.1% 11.6% BJAZ .,1,, .,811 9.0% 2.,% 2.,% SAIB 11,968 11,8,1 (1.0%) ,.0% 0.6% SHB 11,12. 12,.,6 1,.,% 0..% 0.9% BSFR 2.,9,0 28,6,1 2.,% 9.0% 8.8% SABB 2.,2,2 29,802 9.,% 9.0% 9.1% ARNB 21,,19 20,020 ..,% ..1% ..1% SAMBA 09,91. ,0,2,, 0.8% 10.2% 12.0% Al Rajhi ,,,09. ,9,0,8 11.2% 1,.6% 1,.1% 2.1% AL Bilad 6,090 6,810 11.8% 2.0% Alinma 1.,906 18,088 2..% ,.9% ,.6% NCB ,0,,08 ,9,.0, 18.2% 16..% 18.0% Total 001,90. 02,,86. ..9% 100.0% 100.0% All numbers are in SAR million unless specified Sources: Financial statements 16
17. Sector : Banks and Financial Services H1 2016 August 29, 2016 Banks Financial Statements Summary by the End of H1 2016 Return on Equity Return on Assets Bank H1 2015 H1 2016 YoY Bank H1 2015 H1 2016 YoY RIBL 2.00% 1.81% (0.22%) RIBL 12.6% 10.9,% (1..%) BJAZ 1.81% 1.00% (0.,1%) BJAZ 18.,% 11.81% (6.6%) SAIB 1.66% 1.18% (0.,8%) SAIB 10.1% 9.00% (0..%) SHB 2.09% 1.89% (0.20%) SHB 19.1% 16..2% (2.,%) BSFR 2.08% 2.16% 0.08% BSFR 1,.,% 1,.,8% 0.0% SABB 2.00% 2.28% (0.0,%) SABB 16..% 1,.02% (1.0%) ARNB 1.90% 1..,% (0.18%) ARNB 1,.0% 10.06% (1.0%) SAMBA 2.00% 2.2,% (0.08%) SAMBA 10.,% 12.9,% (0.6%) Al Rajhi 2.10% 2.0,% 0.22% Al Rajhi 1,..% 16.62% 0.9% AL Bilad 1.92% 1.,8% (0.,,%) AL Bilad 1,.0% 11.88% (0.1%) Alinma 1.80% 1..0% (0.0.%) Alinma ..8% 8.60% 0.8% NCB 1.90% 2.01% 0.08% NCB 18.,% 1..10% (1.,%) Total 2.09% 1.99% (0.092%) Total 1,.62% 1,.0.% (0.,,%) Demand Deposits to Equity (x) Bank H1 2015 H1 2016 Cash and Equivalent to Total Deposits YoY Bank H1 2015 H1 2016 YoY RIBL 2.,, 1.92 (62.6%) RIBL 20.,% 16.1% (,.0%) BJAZ 0..2 0.16 (,6.,%) BJAZ 21..% 12.2% (9.6%) SAIB 1... 1.86 9.2% SAIB 10.,% 1,.2% ,.8% SHB 2.96 2.6. (28..%) SHB 9.8% 8.6% (1.2%) BSFR 0.82 0.01 (80.2%) BSFR 11.2% 2,..% 1,.,% SABB 0.60 2..6 (80.2%) SABB 10.9% 19.0% 8.2% ARNB 0.,2 2.8, (68..%) ARNB 12.8% 1,.2% 2.,% SAMBA 2.90 2.61 (29.0%) SAMBA 16.1% 21.0% ,.9% Al Rajhi ,.., ,.0. (66.9%) Al Rajhi 16.8% 21.8% ,.0% AL Bilad ,.88 0.92 (9,.,%) AL Bilad 06.8% 02.1% (,.6%) Alinma 2.00 2.10 9.,% Alinma 28.1% 00.8% 2.6% NCB ,.,0 0.68 (182.2%) NCB 1..,% 1..8% 0.,% Total 0.86 0.1, (.1.,%) Total 16.0% 19.,% 0.0.% Cash and Equivalent to Total Assets Cash and Equivalents to Demand Deposit Bank Bank H1 2015 H1 2016 YoY H1 2015 H1 2016 YoY RIBL 1,.28% 11.,8% (0..1%) RIBL 06% 06% (0.2%) BJAZ 18.00% 9.0,% (8.9,%) BJAZ ,6% 2,% (20..%) SAIB ..91% 10..6% 2.8,% SAIB 0,% ,.% 12.0% SHB ..98% 6.8,% (1.1,%) SHB 2,% 22% (0.0%) BSFR 8.,6% 18.08% 9.81% BSFR 1,% ,1% 26.,% SABB 8.,,% 1,.92% 6.0.% SABB 1.% 0,% 18.0% ARNB 10.22% 11.81% 1.,9% ARNB 20% 00% ..6% SAMBA 12.1,% 1,.,2% 0.28% SAMBA 2,% 0,% 10..% Al Rajhi 10.8,% 1..8,% 0.98% Al Rajhi 18% 2,% ,.9% AL Bilad 28.6.% 2,.88% (0..9%) AL Bilad ,.% ,1% 0.2% Alinma 20.81% 20.20% 2.,2% Alinma ,.% ,8% 11.,% NCB 10.6,% 12.,0% (1.2,%) NCB 20% 26% 2.9% Total 12...% 1,.,% 1..0% Total 2,% 01% ..,,% Sources: Financial statements 17
18. Sector : Banks and Financial Services H1 2016 August 29, 2016 Banks Financial Statements Summary by the End of H1 2016 NPL/Total Loans NPLs Coverage Ratio (x) Bank H1 2015 H1 2016 YoY Bank H1 2015 H1 2016 YoY RIBL 1.60 1.,2 (10.6%) RIBL 0.86% 0.88% 0.02% BJAZ 1.80 1.68 (12.9%) BJAZ 0.99% 0.8,% SAIB 1.86 2.12 26.2% SAIB 0..,% 0..,% (0.16%) 0.01% SHB 1.66 1.68 1.6% SHB 1.18% 1.1,% (0.0,%) BSFR 2.1, 2.16 1.0% BSFR 0.8,% 0.8,% (0.00%) SABB 1.,9 1.66 ..0% SABB 1.1.% 1.16% (0.01%) ARNB 2.1. 2.88 .0.,% ARNB 1.00% 0..,% (0.28%) 0.90% (0.00%) SAMBA 1.62 1.6, 0.1% SAMBA 1.20% Al Rajhi 1.9. 1.9, (2.6%) Al Rajhi 1.2,% 1.,0% 0.18% AL Bilad 1.., 1.8. 12.2% AL Bilad 1.,0% 1.08% (0.16%) Alinma 2.09 1.., (0,.1%) Alinma 0..1% 0.6.% (0.0,%) NCB 1.6, 1.,, (19.8%) NCB 1.26% 1.,2% 0.1,% Total 1.80 1..8 (1.6%) Total 1.10% 1.09% (0.00%) Provisions to Loans Ratio Net Interest Margin H1 2015 H1 2016 YoY H1 2015 H1 2016 YoY RIBL 0.,9% 2..1% (0.88%) RIBL 1.,0% 1.0,% (0.0,%) BJAZ ,.00% 2...% (1.26%) BJAZ 1..9% 1.,0% (0.09%) SAIB 2.80% 2.0.% (0..6%) SAIB 1.0.% 1.,9% 0.22% SHB 0.21% 2.,8% (0..0%) SHB 1.9.% 1.92% (0.0,%) BSFR 0.10% 2.61% (0.,1%) BSFR 1.81% 1.80% (0.00%) SABB 0.29% 2.6.% (0.6%) SABB 1.8,% 1.92% 0.0.% ARNB 0.,9% 2..,% (0.9%) ARNB 2.2,% 2.16% (0.08%) SAMBA 0.21% 2.,9% (0.6%) SAMBA 2.00% 1.,,% (0.,6%) Al Rajhi ,.98% 0.88% (1.1%) Al Rajhi 2.,,% 2..8% 0.02% AL Bilad ,.61% 0.,,% (1.1%) AL Bilad 2.6.% 2.,.% (0.10%) Alinma ,.81% 0.,,% (1.,%) Alinma 1.,9% 1.1.% (0.02%) NCB ,.09% 0.,0% (1.9%) NCB 2.08% 2.06% (0.00%) Total 0.9.% 0.00% (0.9,%) Total 1.9.% 1.9,% (0.00%) Bank Bank Sources: Financial statements 18
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