NCB Investor Presentation...NCB Investor Relations | 3Q 2020 Investor Presentation Investor Presentation Content 2 Page 4 Operating Environment Page 7 Strategy Overview Page 8 Financial

NCB Investor Relations | 3Q 2020 Investor Presentation

Investor Presentation

The National Commercial Bank

3Q 2020 Results


Investor Presentation Content

2

Page 4 Operating Environment

Page 7 Strategy Overview

Page 8 Financial Results Highlights

Page 16 Financial Results Details

Page 3 NCB at a glance Page 30 Segmental Review

Page 37 Additional Information


19%

71%87%

0

0

1

1

1

1

2018 2019 9M 20

Digital Account Opening

NCB at a glance NCB is the leading bank in Saudi Arabia

3

*Includes Alahli Esnad (1,891 employees) - fully owned subsidiary engaged in outsourcing and manpower services in KSA

Employees*

13,353Assets

SAR577 bnDeposits

SAR408 bnMarket Cap

SAR111 bn

NCB Group Presence NCB's business model delivers diversified operating income(FY 2019)

Customers & Digitization Strong Credit Ratings

Operating Income

SAR20.6bnNet Income

SAR11.4 bnC/I Ratio

30.7%ROE

18.4 %CoR

0.51%

9.7bn47%

RETAIL

4.7bn23%

CORPORATE

3.9bn19%

TREASURY

SAR 20.6bn89%

NCB

1.5bn7%

International

0.8bn4%

Capital Markets

Clients

8mnDigital Financial Transactions

>98%Robotics

+100 botsNCB Long term Short Term Outlook

S&P BBB+ A-2 PositiveFitch A- F1 NegativeMoody’s* A1 P-1 NegativeCapital Intelligence A+ A1 Stable

Government of Saudi Arabia

S&P A- StableFitch A StableMoody’s A1 NegativeCapital Intelligence A+ Stable

International: Subsidiary in TurkeyTürkiye Finans Katılım Bankası (TFKB)314 branches, 634 ATMs3,623 employees

Offices in Seoul & Shanghai

Wholesale branches in Bahrain & Singapore

NCB GroupHeadquartered in Saudi Arabia

430 branches, 3,858 ATMs127 Remittance centers

9,453 Employees

NCB CapitalSaudi Arabia

22 Branches252 Employees

28%

51%65%

0

0

1

1

1

2018 2019 9M 20

Digital Sales Penetration


Operating Environment Early signs of recovery and stabilization in recent months; Operating environment remains challenging and uncertain

4

Macroeconomic Indicator Sources: Thomson Reuters, SAMA, IHS, Bloomberg, Tadawul

62 68

37 35 40

0

20

40

60

80

100

120

Average Oil Price (USD)

2.24% 2.23%

1.19%

0.99% 0.85%1.90% 1.91%1.45%

0.30% 0.22%

(0)

(0)

0

0

0

0

0

0

Interbank Rates (%)

3M SAR SAIBOR 3M USD LIBOR

7,744 8,389 6,505 7,224

7,908

(1,000)

1,000

3,000

5,000

7,000

9,000

11,000

13,000

Tadawul Index

6957

175

10788

0

20

40

60

80

100

120

140

160

180

200

CDS Spread (bps)

0.5% 1.3%2.8%

1.5%

1.2%

0.8%

4.0% 1.9%

-1.0%

0.8%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

0

20

40

60

80

100

120

140

160

180

Bank Lending & Deposits Growth

Bank Lending Bank Deposits

58 57

42 48 51

0

10

20

30

40

50

60

70

80

90

100

KSA PMI (manufacturing)


Retail42%

Corporate25%

Treasury27%

Capital Markets4%

International2%

FY 19 Net Income Before Zakat & Income Tax (SARbn)

17.2%

19.2%20.0%

20.6%

18.7%

15.1%

16.9%17.7%

18.5%18.0%

13.5%

15.3% 15.7%16.6% 16.2%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

2015 2016 2017 2018 2019

Capital Ratios (%)

TC ratio T1 ratio CET1 ratio

152.3%172.5% 177.3% 176.0% 168.9%

10.0%

60.0%

110.0%

160.0%

210.0%

2015 2016 2017 2018 2019

LCR Ratio (%)

NCB Strong Track Record Resilience against the challenging environment

5

136.0%119.0%

128.0% 124.4%

78.1% 80.3% 80.7% 83.2% 79.9%

10.0%

30.0%

50.0%

70.0%

90.0%

110.0%

130.0%

150.0%

2015 2016 2017 2018 2019

LTD and NSFR Ratios (%)

NSFR (%) Financing to customers' deposit ratio

10.8 12.9

0

2

4

6

8

10

12

14

16

18

FY 18 FY 19


KSA Total Market NCB Market Share in SARbn NCB Market Share in % Rank KSA

Overall banking (Assets)

SAR 2,633 bn 21.2% #1

Corporate banking (Performing Financing)

SAR 975 bn 14.4% #1

Retail banking(Performing Financing)

SAR 607 bn 23.0% #2

Treasury(Investments)

SAR 590bn 24.8% #1

Asset Management (AUMs)

SAR 516bn 31.3% #1

Brokerage(Value Traded)

SAR 569bn 12.8% #2

Leading, diversified franchise NCB Market Position as of 2Q 2020

6

557

140

140

146

161

146

2,076

835

467

444

355

423

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


2020 Strategy Progress Accelerated focus on Retail & Digital

7

Stra

tegi

cEn

able

rs

Digital Productivity

Accelerate digital transformation Increase Operational Efficiency

Digital sales Advanced analytics

Lean distribution Robotics & AI

9M 2020 Update

Digital Transactors (% of total base): 76.4% Digital Account Opening: 87.2%

NCB 9M20 C/I 30% (NCB Group 31%) 155 bots (+100 YTD) 366 self-service kiosks (+51 YTD)

Funding

Current Accounts Wholesale Funding

Grow Current Accounts

Expand Funding Options

Digital & physical distribution

Cash management Customer coverage

models

Programs across maturity and seniority spectrums

Mix and cost optimization

9M 2020 Update CASA +19% YTD Affluent Banking

proposition enhancements

SAR 5bn long-term diversified funding YTD

SAR 4.2bn T1 Sukuk issued & SAR 1bn Sukuk redemption

Asset Deployment

Retail Corporate Treasury Subsidiaries

Grow Mortgages Improve Returns Sustain Investment Returns

Grow Value Contribution

Sales channels Digitization

Mega financing SME Transaction banking

Recurring revenues Portfolio liquidity &

quality

Key business lines Efficiency &

productivity

9M 2020 Update +67% Mortgage

growth SAR 62bn Mortgage

balance

1Q 2020 Update +10% Financing

growth POS M.S. +2.3ppts;

TRX Value M.S. +1.6ppts (Aug 20)

1Q 2020 Update +18% 3Q 2020 NSCI Stable 185% LCR,

>84% IG portfolio

1Q 2020 Update TFKB 9M NI +269%

(TRY), C/I 41.1% YTD NCBC 9M NI +60%

YoY, CI 30.8% YTD


FINANCIAL RESULTS HIGHLIGHTS

3Q 2020 Results


Financing (SARbn) Deposits (SARbn)

NPL & COR (%) CET1 and LTD (%)

16.2% 15.8%

80% 82%

20%

30%

40%

50%

60%

70%

80%

90%

0

0

0

0

0

0

0

0

0

4Q 19 3Q 20

CET1 LTD

1.8% 1.7%

0.5%0.7%

-0.1%

0.1%

0.3%

0.5%

0.7%

0.9%

1.1%

1.3%

1.5%

0

0

0

0

0

0

4Q 19 3Q 20

NPL ratio CoR YTD

353 408

+16%

0

100

200

300

400

500

600

700

800

900

1,000

4Q 19 3Q 20

282337

+19%

0

100

200

300

400

500

600

700

800

4Q 19 3Q 20

Balance Sheet

Asset Quality, Capital & Liquidity

Financial Results Update 9M 2020 Results highlights

9

* Impairments include impairment charges for financing and investments

8,012463 248

(2)(470) (138)

42

(74)

8,080

+1%

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

9M 19 NSCI Fee &Other

Income

Expenses Impair-ments*

OtherNon-

Operating

Zakat &Tax

Minorities 9M 20

Net Income after Zakat and Income Tax attributed to Equity Holders (SARmn)


Income Statement 9M 2020 net income after zakat and income tax growth of 1% YoY despite Covid-19 impacts

10

Profitability Trends

SAR (mn) 3Q 2020 2Q 2020 3Q 2019 YoY % change 9M 2020 9M 2019 YoY % change

Net special commission income 4,102 3,882 3,873 +6% 11,997 11,534 +4%Fee and other income 1,535 884 1,124 +37% 3,711 3,464 +7%Total operating income 5,638 4,766 4,997 +13% 15,709 14,998 +5%Operating expenses (1,640) (1,530) (1,577) +4% (4,861) (4,859) +0%Total impairment charge (379) (828) (663) -43% (1,603) (1,133) +42%Income from operations, net 3,619 2,408 2,757 +31% 9,244 9,006 +3%Net income before Zakat and income tax 3,569 2,388 2,829 +26% 9,168 9,068 +1%Zakat and Income Tax (379) (260) (288) +32% (979) (1,020) -4%Net income for the period after Zakat and income tax attributable to equity holders

3,158 2,088 2,551 +24% 8,080 8,012 +1%

4,616 5,180 4,830 4,312 5,212

381 429 475 453 4264,997 5,609 5,305 4,766

5,638

+13%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

Total Operating Income (SARmn)

International

Domestic

2,600 3,206 2,691 1,928 3,031

(49)

184 144160

1282,551

3,390 2,8342,088

3,158

+24%

(200)

1,800

3,800

5,800

7,800

9,800

11,800

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

Net income for the period after Zakat and income tax attributable to equity holders (SARmn)

International

Domestic


Balance Sheet 14% YTD increase in total assets from growth in financing and investments

Domestic Deposits93%

International Deposits7%

Customers' Deposits Mix (SARbn)

353 408

0

100

200

300

400

500

4Q 19 3Q 20

11

Balance Sheet

SAR (mn) 3Q 2020 2Q 2020 3Q 2019 YoY % change FY 2019 YTD % change

Cash & banks 56,434 52,510 52,509 +7% 61,948 -9%Investments, net 144,200 146,306 132,467 +9% 134,077 +8%Financing and advances, net 336,860 316,299 279,074 +21% 282,289 +19%Total assets 577,084 557,310 496,585 +16% 507,264 +14%Due to banks and other financial institutions 62,975 74,083 66,927 -6% 62,186 +1%Customers' deposits 408,474 380,398 340,383 +20% 353,389 +16%Debt securities issued 1,177 696 1,664 -29% 1,016 +16%Total liabilities 500,429 483,375 429,887 +16% 437,476 +14%Common equity 65,708 62,888 58,801 +12% 61,888 +6%Total equity 76,655 73,935 66,699 +15% 69,788 +10%

135 127 138 139 140113 124 131 139 15912 11 17 15 15

19 2020 23 23279 282 305 316

337

+19%

0

100

200

300

400

500

600

700

800

900

1,000

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

Financing & Advances, net (SARbn)

Corporate Consumer and credit card Others International

255 251 290 294 29973 90 72 72 9612 13

13 14 14340 353 375 380

408

+16%

0

200

400

600

800

1,000

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

Customers' Deposits (SARbn)

CASA Time Others


Retail45%

Corporate14%

Treasury31%

Capital Markets5%

International5%

9M 20 Net Income Before Zakat & Income Tax (SARbn)

Retail40%

Corporate13%

Treasury37%

Capital Markets6%

International4%

3Q 20 Net Income Before Zakat & Income Tax (SARbn)

Segmental Information (1/3) 9M 2020 total net income before zakat and income tax growth in all segments except Corporate

12

2.8 3.6

0

1

1

2

2

3

3

4

4

5

3Q 19 3Q 20

9,068 274

(880)

188 196322 9,168

0

1,000

2,000

3,000

4,000

5,000

6,000

9M 19 Retail Corporate Treasury CapitalMarkets

International 9M 20

9M 20 Net Income Before Zakat & Income Tax Movement (SARmn)

2,829

(109) (75)

618 128177 3,569

0

500

1,000

1,500

2,000

2,500

3,000

3,500

3Q 19 Retail Corporate Treasury CapitalMarkets

International 3Q 20

3Q 20 Net Income Before Zakat & Income Tax Movement (SARmn)

9.1 9.2

0

2

4

6

8

10

12

14

9M 19 9M 20


Retail45%

Corporate18%

Treasury25%

Capital Markets5%

International7%

3Q 20 Total Operating Income (SARbn)

Retail47%

Corporate19%

Treasury20%

Capital Markets5%

International9%

9M 20 Total Operating Income (SARbn)

Segmental Information (2/3) 9M 2020 total operating income growth in all segments except Corporate

13

5.0 5.6

0

1

2

3

4

5

6

7

3Q 19 3Q 20

4,997

(56) (65)

595122 45 5,638

(100)

100

300

500

700

900

1,100

1,300

1,500

3Q 19 Retail Corporate Treasury CapitalMarkets

International 3Q 20

3Q 20 Total Operating Income Movement (SARmn)

14,998 164

(135)

166 193 322 15,709

0

2,000

4,000

6,000

8,000

10,000

12,000

9M 19 Retail Corporate Treasury CapitalMarkets

International 9M 20

9M 20 Total Operating Income Movement (SARmn)

15.0 15.7

0

2

4

6

8

10

12

14

16

18

20

9M 19 9M 20


Segmental Information (3/3) 3Q 2020 asset growth YTD driven by growth across all segments

Management Commentary

YTD 2020 Total Assets increased by 14% due to higher financing (+19%) and investments (+8%).

Total Financing increased by 19%: Retail increased by 28%, Corporate by 10% and FI by 30%.

Customers’ deposits increased by 16% from Retail, Corporate and International and others (Treasury) segments.

CASA balances at 73% of total deposits at 3Q 2020 compared with 71% at 4Q 2019.

14

124 139 159127 139 140

20 23 2311 15

15282 316

337

+19%

0

100

200

300

400

500

600

700

4Q 19 2Q 20 3Q 20

Financing and Advances, net (SARbn)

Consumer and credit cardCorporateInternationalOther

154 170 189133 146 146185 202 2002 2

333 37

39507 557 577

+14%

0

200

400

600

800

1,000

1,200

4Q 19 2Q 20 3Q 20

Total Assets (SARbn)

RetailCorporateTreasuryCapital MarketsInternational

210 224 228

100 126 13318 218

26 28 30353380 408

+16%

0

100

200

300

400

500

600

700

800

900

4Q 19 2Q 20 3Q 20


RetailCorporateOthersInternational


2020 Guidance Financing guidance revised upwards; Possibility of varied outcomes persists

15

Macroeconomic Indicator Sources: NCB Economics, US Federal Reserve, IMF, KSA MoF*As per guidance revisions in 1H 2020

Macro-Economic Outlook

2020 Original Outlook 2020 Expected Outlook

Oil Price USD 60 / bbl USD 40 / bbl

US Fed Rates Stable Stable rest of 2020

GDP Growth Real GDP 2.3% Real GDP -5.2%

Fiscal Balance Deficit 6.4% of GDP Deficit 12% of GDP

Inflation 2.0% 3.6%

NCB Financial Guidance

FY 2019 Reported

3Q 2020 Reported

FY 2020 Guidance*

FY 2020 Outlook

Financing Growth +6.5% +19% +12% - 14%Revised~ +20%

NSCI Margin 3.77% 3.40% 3.40% - 3.60% Within Guidance

Cost to Income 30.7% 30.9% Below 33% Within Guidance

Cost of Risk 0.51% 0.70% 0.8% - 1.0% Revised Below 0.8%

Tier 1 CAR 18.0% 18.2% 16% - 18% Revised Above 18%


FINANCIAL RESULTS DETAILS

3Q 2020 Results


5.000.21

0.38 0.04 5.64

5.21

0.43

4.62

0.38

0

1

1

2

2

3

3

4

4

5

3Q 19 NSCI Fee and other income International… 3Q 20

3Q 20 Total Operating Income Movement (SARbn)

15.00 0.34 0.050.32 15.71

14.35

1.35

13.97

1.03

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

9M 19 NSCI Fee and otherincome

InternationalNOR

9M 20

9M 20 Total Operating Income Movement (SARbn)


9M 2020 Total operating income increased 5% YoY from a 4% improvement in net special commission income and a 7% increase in fee and other income.

International operating income increased by 31% boosted by core banking activity.

Operating Income Highlights Higher 9M 2020 total operating income driven by higher NSCI and fee & other income

17

3.87 3.88 4.101.12 0.88 1.54

5.00 4.77 5.64

+13%

0

2

4

6

8

10

12

14

16

18

3Q 19 2Q 20 3Q 20

Total Operating Income (SARbn)

Fee and other income

Net special commission income

Domestic

Intl.

Domestic

Intl.

11.53 12.00

3.46 3.7115.00 15.71

+5%

0

5

10

15

20

25

30

9M 19 9M 20


11,534 104

(69)

452

(524)

375122

(18)

11,997

+4%

3.72% +4 bps -40 bps +3 bps -13 bps +16 bps +6 bps -0 bps -0 bps 3.40%

134

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

9M 19 Retail Corporate Other Investments Depositmix &cost

Wholesalefunding

Other International 9M 20

Movement in Net Special Commission Income (SARmn) & NSCI Margin (%)

Net special commission income 9M 2020 net special commission income grew by 4% YoY; Margin impacted by lower rate environment

18

1.26% 1.20%0.85% 0.76% 0.70%

3.64% 3.69% 3.53% 3.42% 3.36%

0

0

0

0

0

0

0

0

0

0

9M 19 FY 19 1Q 20 1H 20 9M 20

Commission Yield & Funding Cost (%)

COF Commission Yield

Financing Mix & Yield+SAR 32mn

Guidance

3.40%-3.60%

3.70% 3.74%

3.51% 3.39% 3.35%

3.72%3.77%

3.59%3.46%

3.40%

4.14%

4.22%

4.72%

4.36%

4.19%

0

0

0

0

0

0

0

0

0

9M 19 FY 19 1Q 20 1H 20 9M 20

Net Special Commission Margin (%)

Domestic Group International


132 3323,464

(102) (29)

238

(8) (32)

111245

(175)

3,711

3,3793,332

+7%

0

1,000

2,000

3,000

4,000

5,000

9M 19 Finance&

lending

Tradefinance

Inv. mgt.&

brokerage

Creditcards

Others ExchangeIncome

Investment-relatedincome

Otheroperatingexpenses

9M 20

9M 20 Fee and other Income Movement (SARmn)

Fee and other income 9M 2020 fee and other income increased from improved investment management and brokerage income, and increase in exchange income and investment-related income

19


9M 2020 Fee and other income increased by 7% YoY due to 23% growth in investment-related income, 14% growth in exchange income, 4% growth in fee income from banking services, partly offset by an increase in other operating expenses.

Fees from Banking Services+SAR 66mn (+4%)

Domestic

International

579 628 601280 316 290

267 20 785

(2) (80) (141)

1,124 884

1,535

+37%

(400)

100

600

1,100

1,600

2,100

2,600

3,100

3,600

3Q 19 2Q 20 3Q 20

Fee and Other Income (SARmn)

Other operating income (expenses), netInvestment-related incomeExchange Income, netFee income from banking services, net



Cost discipline, including ongoing traction on the digitization and productivity initiatives, helped maintain stable 9M YoY operating expenses.

9M 2020 Cost to income ratio was 30.9%, lower by 145bps compared to 9M 2019.

Expense Highlights Stable operating expenses and improved cost to income ratio

20

864 859 88891 75 88213 213 221

408 383 4441,577 1,530 1,640

+4%

0

500

1,000

1,500

2,000

2,500

3,000

3Q 19 2Q 20 3Q 20

Operating Expenses (SARmn)

Other G&ADepreciation & amortizationRent & premisesEmployee-related

32.4%

30.7%

31.9% 32.0%

30.9%

30.9%

29.3%

30.9% 31.0%

30.0%

0

0

0

0

0

0

0

0

0

0

0

0

9M 19 FY 19 1Q 20 1H 20 9M 20

Cost to Income Ratio (YTD %)

Group (%) Excluding International (%)

Domestic

Intl.

Guidance

< 33%4,859

(9) (22)

19 15 4,861

4,308

553

4,312

547

+0%

(500)

500

1,500

2,500

3,500

4,500

5,500

6,500

7,500

8,500

9M 19 Employee-related

Rent &premises

Depreciation &amortization

Other G&A 9M 20

9M 20 Operating Expenses Movement (SARmn)

2,663 2,655268 245641 660

1,287 1,302

4,859 4,861

+0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

9M 19 9M 20


Retail33%

Corporate25%

Treasury35%

Capital Markets0%

International7%

Total Assets Mix by Segment (SARbn)

507 577

0

100

200

300

400

500

600

700

4Q 19 3Q 20


Total assets increased 14% due to increase in financing, investments and other assets, partly offset by decline in cash, bank and SAMA balances due to redeployment of reverse repo balances held with SAMA for liquidity management in 4Q 2019.

19% Financing increase primarily driven by increase in domestic and international financing, despite International financing being impacted by Turkish Lira depreciation.

Asset Highlights and Composition

14% growth in balance sheet as a result of increase in financing and investments

21

282 316 337

134 146 1446253 56

29 42 40507557 577

+14%

0

200

400

600

800

1,000

1,200

4Q 19 2Q 20 3Q 20

Total Assets (SARbn)

Financing and Advances, netInvestments, netCash, bank and SAMA balancesOther assets, net

507.354.6 10.1

(5.5)

3.6 7.1 577.1

+14%

0

100

200

300

400

500

600

700

800

900

1,000

4Q 19 Financing Invest-ments

Cash,Bank &SAMA

PositiveFV of

Derivatives

Other 3Q 20

Movement in Assets (SARbn)


282.3

24.710.3

12.2 3.53.9 336.9

+19%

0

20

40

60

80

100

120

4Q 19 Mortgages Other Corporate FI Inter-national

3Q 20

Movement in Financing (SARbn)

Consumer financing & credit cards

45%

Commerce13%

Manufacturing10%

Services10%

Utilities & health6%

Building & construction4%

Others, across 6 sectors12%

Financing and Advances, net by Economic Sector (SARbn)

124 139 159

127 13914020

23 231115 15282 316

337

+19%

0

100

200

300

400

500

600

4Q 19 2Q 20 3Q 20


Consumer and credit cardCorporateInternationalOther


Financing grew for Retail (+28%) on the back of mortgages (+67%), Corporate (+10%), International (+20%) and FI (+30%) portfolios from 4Q 2019.

Corporate segment increased 10% mainly during 1Q 2020 from underwriting a few large high-quality transactions that were in pipeline from previous quarters.

International financing increased 20% from 58% growth in local currency, partly offset by the weakened Turkish Lira -23%.

Financing and Advances 19% financing growth driven by strong Retail mortgages, Corporate, FI and International

22

Retail

+SAR 35.1bn (+28%)Guidance

~ +20%282 337

0

50

100

150

200

250

300

350

400

450

4Q 19 3Q 20


5,329

(37)

1,017

(357)

5,952

+12%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

4Q 19 Retail Corporate International 3Q 20

Movement in NPLs (SARmn)

Financing and Advances Credit Quality (1/2)

YTD NPLs rose by 12% primarily on Corporate from Covid-19, while NPL coverage remained stable

23

Domestic

+SAR 980mn (+27%)

266%

277%

242%221%

280%

149%152% 146% 150%

142%

56%62% 71%

75%

84%

133%138% 140% 141%

143%

0

1

1

2

2

3

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

NPL Coverage Ratios (%)

Retail Corporate International Group NPL coverage ratio

0.6%0.5% 0.5% 0.5%

0.4%

2.1%2.3% 2.3% 2.6% 2.8%

9.2% 8.2%

6.9%6.1%

5.4%

1.9%1.8% 1.7% 1.8%

1.7%

(0)

0

0

0

0

0

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

NPL Ratios (%)

Retail Corporate International Group NPL Ratio

5,329

547

(2)

5,95295

(54)

37

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4Q 19 Commerce Consumer Building &construction

Manu-facturing

Others 3Q 20

Movement NPLs by Economic Sector (SARmn)


55

(11)

1

30

(3)(1)(2)

70

+15 bps

(10)

10

30

50

70

90

110

130

9M 19 Impairments Recoveries& Other

Impairments Recoveries& Other


Movement in Cost of Risk (bps)

1,146

(158) (31)

781

(14)(9)(56)

1,658

+45%

(200)

300

800

1,300

1,800

2,300

2,800

9M 19 Impairments Recoveries& Other

Impairments Recoveries& Other


Movement in Impairments (SARmn)

Corporate

+28 bps

Financing and Advances Credit Quality (2/2)

Increase in impairments and cost of risk from Covid-19 related adjustments and impacts

24

Retail

-10 bps

Corporate

+SAR 725mn

Retail

-SAR 189mn

0.4% 0.4% 0.4%0.7%

0.6%

2.5%2.2%

2.7%2.3%

2.3%

0.5%0.5% 0.6%

0.8%0.7%

(0)

(0)

0

0

0

0

9M 19 FY 19 1Q 20 1H 20 9M 20

CoR Ratios (%)

Domestic International Group CoR ratio

0.5%

0.4%0.3% 0.3% 0.2%

0.3%

0.4% 0.4%

1.1%

1.0%

0.5%0.5% 0.6%

0.8%

0.7%

0

9M 19 FY 19 1Q 20 1H 20 9M 20

CoR Ratios (%)

Retail Corporate Group CoR ratio

Guidance

< 0.8%


Investments Investments portfolio increased 8% from growth in SGBs and high-quality securities

25

Saudi Government securities50%

Other investment grade34%

Non-investment grade9%

Equity & others7%

Investments Mix by Credit Grade (SARbn)

134 144

0

20

40

60

80

100

120

140

160

4Q 19 3Q 20

Saudi Arabia65%

GCC and Middle East11%

Turkey5%

Other countries19%

Investments Mix by Geography (SARbn)

134 144

0

20

40

60

80

100

120

140

160

4Q 19 3Q 20

85 94 91

39 43 439

9 10134 146 144

+8%

0

50

100

150

200

250

4Q 19 2Q 20 3Q 20

Investments (SARbn)

Equity instruments, Mutual Funds, Hedge Funds and OthersFloating rate securitiesFixed rate securities

134.1 2.9 2.14.4 0.8 144.2

+8%

0

20

40

60

80

100

120

140

4Q 19 SaudiGovernmentsecurities

Otherinvestment

grade

Non-investment

grade

Equity & others 3Q 20

Movement in Investments (SARbn)


Due to banks and other financial institutions

11%

Customers' deposits71%

Other liabilities5%

Total equity13%

Funding Mix (SARbn)


14% increase in funding mainly from growth in deposits and increase other liabilities.

Customers’ deposits increased by 16% mainly driven by CASA deposits (+19%).

Other liabilities increase attributable to negative fair value of derivatives by SAR 5.1 bn resulting from change in the interest rate environment.

Funding Balance sheet growth funded by growth in CASA deposits, interbank balances and other liabilities

26

507 577

0

100

200

300

400

500

600

4Q 19 3Q 20

507.355.1 0.8 0.2 6.9 6.9 577.1

+14%

0

100

200

300

400

500

600

700

4Q 19 Customers'deposits

Interbank Debt Otherliabilities

Total equity 3Q 20

Movement in Funding (SARbn)

353 380 408

62 74631 1

121 28 28

70 7477

507 557577

+14%

0

200

400

600

800

1,000

4Q 19 2Q 20 3Q 20

Funding (SARbn)

Total equity Other liabilities

Debt securities issued Due to banks and other financial institutions

Customers' deposits


353.444.0 6.1 0.8 3.8 0.0 0.2

+16%

408.5

0

100

200

300

400

500

600

700

4Q 19 CASA Time Others CASA Time Others 3Q 20

Movement in Customers' Deposits (SARbn)

CASA73%

Time24%

Others3%

Customers' Deposits Mix (SARbn)


Customers’ deposits increased by 16%, mainly from 19% increase in CASA deposits.

Increase in CASA deposits boosted by focus on strengthening affluent proposition, digital account opening and cash management; as well as lower time deposits from lower rates.

CASA balances account for 73% of customers’ deposits compared to 71% at 4Q 2019.

Deposits Customers’ deposits increased 16%, mainly from CASA deposits

27

Domestic Deposits

+SAR 50.9bn (+16%)

International Deposits

+SAR 4.0bn (+16%)

241 281 2859 13 1374

58 8016 141613 14 14

353 380 408

+16%

0

100

200

300

400

500

600

700

800

900

4Q 19 2Q 20 3Q 20


CASA - DomesticCASA - InternationalTime - DomesticTime - InternationalOthers

353 408

0

100

200

300

400

500

4Q 19 3Q 20


Liquidity NCB maintained a strong and stable liquidity profile

28


As at 3Q 2020, the financing to customers’ deposit ratio was 82.5% and the regulatory LDR ratio was comfortably below SAMA limit.

NSFR was 121.2% at 3Q 2020 relative to 124.4% at 4Q 2019.

The average quarterly LCR was comfortable at 184.9% in 3Q 2020 compared to 168.9% in 4Q 2019.

Basel III leverage ratio was 12.5% as at 3Q 2020 relative to 12.8% at 4Q 2019.

* Headline ratio, which does not equate to SAMA regulatory LDR ratio

92 99 113 112

125

53 59 64 68 68

173.2% 168.9% 176.1% 165.0%

184.9%

(5)

15

35

55

75

95

115

135

1

1

1

1

1

2

2

2

2

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

LCR Ratio (%)

HQLA (SARbn)Net cash outflows (SARbn)LCR

334 343 362 384 405

271 275 309 319 334

123.2% 124.4%117.1% 120.0% 121.2%

(20)

80

180

280

380

480

580

1

1

1

1

1

1

1

1

1

1

2

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

NSFR Ratio (%)

Available stable funding (SARbn)Required stable funding (SARbn)NSFR

12.4% 12.8% 11.4% 12.4% 12.5%

82.0% 79.9% 81.3% 83.1% 82.5%

0

0

0

0

0

1

1

1

1

1

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

LDR* and Basel III leverage Ratios (%)

Basel III leverage ratio Financing to customers' deposit ratio


T1 Guidance

> 18%

15.2%16.2%

14.4%15.6% 15.8%

16.9%18.0%

16.0%

18.0% 18.2%

17.8%18.7%

16.9%

19.0% 19.2%

0

0

0

0

0

0

3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

Capital Ratios (%)

CET1 ratio T1 ratio TC ratio


Capitalization remained comfortably above the regulatory minima

with CET1 at 15.8% and T1 at 18.2%.

Total capital increased 13% from net additional SAR 3.2bn T1 Sukuk

issuance.

RWA 10% growth is attributable to the growth in financing.

Total capital adequacy ratio at 19.2%.

Capital Capital position comfortably above regulatory minima

29

73.2 8.1 3.2

(3.6)

82.7 1.8

+13%

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

4Q 19 Net Income Net SukukIssuance

2019 FinalDividend

Other 9M 20

Movement in Total Capital (SARbn)

63 65 68

7 10 103 4

473 8083

+13%

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

4Q 19 2Q 20 3Q 20

Capitalisation (SARbn)

Tier 2 capital (T2)Additional tier 1 capital (AT1)Common equity tier 1 capital (CET1)

337 372 386

36 3637

17 128390 421 431

+10%

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

4Q 19 2Q 20 3Q 20

Pillar I Risk Weighted Assets (SARbn)

Credit riskOperational riskMarket risk


SEGMENTAL REVIEW

3Q 2020 Results


NCB Bank (standalone)

31


9M 2020 Net income after zakat decreased 4% YoY driven by 66% increase in impairment charge.

NSCI improved by 3% YoY due to an increase in average earning assets.

Financing and advances, net increased 19% YTD from 67% growth in Mortgage and growth across all core portfolios.

Summary Financial Performance

SAR (mn) 3Q 2020 2Q 2020 3Q 2019YoY % change 9M 2020 9M 2019

YoY % change

Total assets 543,552 525,723 469,027 +16% 543,552 469,027 +16%Total operating income 4,927 4,095 4,443 +11% 13,604 13,383 +2%

Net special commission income 3,749 3,552 3,538 +6% 10,959 10,621 +3%Fee income from banking services, net 299 387 398 -25% 1,017 1,151 -12%

Operating expenses (1,395) (1,268) (1,315) +6% (4,075) (4,076) -0%Total impairment charge (249) (711) (412) -40% (1,216) (731) +66%Other non-operating income (expenses), net (51) (27) 71 -171% (94) 36 -363%Net income for the period before Zakat 3,232 2,089 2,788 +16% 8,219 8,611 -5%Zakat (335) (216) (287) +17% (850) (965) -12%

Net income for the period after Zakat 2,898 1,873 2,500 +16% 7,369 7,646 -4%

% of total assets 94.2% 94.3% 94.5% -0% 94.2% 94.5% -0%Cost to income (%) 28.3% 31.0% 29.6% -4% 30.0% 30.5% -2%NCL (%) 0.3% 1.0% 0.6% -46% 0.6% 0.4% +50%ROA (%) 4.1% 1.5% 2.2% +83% 3.7% 2.3% +60%

262 292313

+19%

0

100

200

300

400

500

600

4Q 19 2Q 20 3Q 20


328 352379

+16%

0

100

200

300

400

500

600

700

4Q 19 2Q 20 3Q 20


9M 2020 lower net income after zakat of 4% YoY on higher impairment charges


Retail Banking 9M 2020 net income before zakat growth of 7% YoY from higher operating income

32


9M 2020 NSCI improved by 7% YoY on strong financing growth, with mortgage surging 67% YTD.

Operating expenses decreased 1% YoY and the cost to income ratio improved from 42.2% in 9M 2019 to 40.9% in 9M 2020, supported by

digitization, and productivity enhancements.

Net income before zakat increased by 7% YoY driven principally by 2% higher operating income (despite SAMA deferral modification losses and fee waivers), and lower impairment charge.

210 224 228

+9%

0

50

100

150

200

250

300

350

400

450

4Q 19 2Q 20 3Q 20




YoY % change

Total assets 189,447 169,982 145,706 +30% 189,447 145,706 +30%

Total operating income 2,513 2,526 2,569 -2% 7,359 7,195 +2%

Net special commission income 2,350 2,242 2,155 +9% 6,667 6,228 +7%

Fee income from banking services, net 170 260 276 -38% 659 769 -14%

Operating expenses (1,060) (927) (978) +8% (3,014) (3,036) -1%

Impairment charge (0) (99) (130) -100% (205) (394) -48%

Other income (expenses) (16) (9) 84 -119% (30) 72 -142%

Net income for the period before Zakat 1,436 1,491 1,545 -7% 4,111 3,837 +7%

% of total assets 32.8% 30.5% 29.3% +12% 32.8% 29.3% +12%

Cost to income (%) 42.2% 36.7% 38.1% +11% 40.9% 42.2% -3%

CoR 0.0% 0.3% 0.5% -100% 0.2% 0.5% -60%

ROA (% before zakat & taxes) 3.2% 3.6% 4.3% -25% 3.2% 3.7% -13%

124 139159

+28%

0

50

100

150

200

250

300

4Q 19 2Q 20 3Q 20

Financing & Advances, net (SARbn)


Corporate Banking Net income before zakat impacted by operating environment and higher impairment charges

33


10% YTD net financing growth, focusing on high-quality financing business, and 33% growth in customers’ deposits.

9M 2020 Operating income declined by 4% YoY; NSCI declined by 4% primarily due to lower market rates.

Fee income declined by 8% on slower trade finance environment.

Impairments increased by SAR 725mn YoY, largely attributable to adverse operating environment and Covid-19 impacts.

127 139 140

+10%

0

50

100

150

200

250

4Q 19 2Q 20 3Q 20

Financing & Advances, net (SARbn) Summary Financial Performance


YoY % change

Total assets 145,987 145,500 136,985 +7% 145,987 136,985 +7%

Total operating income 996 941 1,061 -6% 3,050 3,184 -4%

Net special commission income 892 842 955 -7% 2,763 2,873 -4%

Fee income from banking services, net 104 99 107 -3% 288 312 -8%

Operating expenses (227) (217) (221) +3% (695) (681) +2%

Impairment charge (287) (620) (289) -1% (1,052) (327) +222%

Other income (expenses) (10) (7) (5) +97% (22) (16) +40%

Net income for the period before Zakat 472 96 547 -14% 1,281 2,160 -41%

% of total assets 25.3% 26.1% 27.6% -8% 25.3% 27.6% -8%

Cost to income (%) 22.7% 23.1% 20.8% +9% 22.8% 21.4% +6%

CoR 0.8% 1.7% 0.8% -5% 1.0% 0.3% +221%

ROA (% before zakat & taxes) 1.3% 0.3% 1.6% -19% 1.2% 2.1% -42%

100126 133

+33%

0

50

100

150

200

250

300

4Q 19 2Q 20 3Q 20



Treasury Growth in net income before zakat from operating income growth

34


9M 2020 Net income before zakat improved by 7% YoY driven by 5% higher operating income.

Maintained strong portfolio quality with >84% being SGBs and investment grade securities.



YoY % change

Total assets 200,243 202,227 178,649 +12% 200,243 178,649 +12%

Total operating income 1,417 626 822 +72% 3,191 3,025 +5%

Net special commission income 508 469 429 +18% 1,532 1,521 +1%

Fee income from banking services, net 25 28 16 +56% 71 70 +1%

Other operating income 885 129 378 +134% 1,588 1,434 +11%

Operating expenses (108) (124) (116) -7% (367) (359) +2%

Impairment charge 39 8 7 +462% 41 (10) -502%

Other income (expenses) (24) (11) (8) +224% (41) (20) +105%

Net income for the period before Zakat 1,323 499 705 +88% 2,824 2,636 +7%

% of total assets 34.7% 36.3% 36.0% -4% 34.7% 36.0% -4%

Cost to income (%) 7.6% 19.8% 14.1% -46% 11.5% 11.9% -3%

ROA (% before zakat & taxes) 2.6% 1.0% 1.6% +60% 2.0% 2.1% -9%

134 146 144

+8%

0

50

100

150

200

250

300

4Q 19 2Q 20 3Q 20

Investments, net (SARbn)

1,521 1,532

1,504 1,659

3,025 3,191

+5%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

9M 19 9M 20

Total Operating Income (SARmn)

Net special commission income Fee and other income


Capital Markets Higher net income growth driven by higher operating income

35


9M 2020 Net income before zakat increased by 60% YoY driven by 34% higher operating income.

Operating income increased by 34% YoY due to higher brokerage-related fee income (+184%) and AUM-related fee income (+5%).



YoY % change

Client assets under management 178,628 157,572 143,400 +25% 178,628 143,400 +25%

Brokerages Volume 155,063 76,186 36,716 +322% 300,862 129,130 +133%

Total operating income 286 220 164 +75% 755 561 +34%

Net special commission income 4 4 5 -15% 13 13 +1%

Fee income from banking services, net 270 206 144 +87% 726 505 +44%

AUM Related Fee Income 122 128 115 +6% 393 373 +5%

Brokerage Related Fee Income 134 63 23 +482% 250 88 +184%

Other operating income (expenses) 12 9 15 -21% 15 43 -65%

Operating expenses (76) (78) (82) -8% (233) (236) -1%

Net income before Zakat 210 142 81 +158% 522 326 +60%

Cost to income (%) 26.6% 35.5% 50.3% -47% 30.8% 42.0% -27%

156 158179

+14%

0

50

100

150

200

250

300

350

4Q 19 2Q 20 3Q 20

Client Assets Under Management (SARbn)

129

301

+133%

0

100

200

300

400

500

600

700

9M 19 9M 20

Brokerages Volume (SARbn)


40.710.1 50.8

10.3 61.1

+25%

+50%

0

10

20

30

40

50

60

70

80

4Q 19Reported

Growth atconstant FX

3Q 20Underlying

TFKB FXtranslation

impact

3Q 20Reported

Customers' Deposits (TRYbn)

31.0

13.8 44.8 4.2 49.0

+45%

+58%

0

10

20

30

40

50

60

70

80

90

100

4Q 19Reported

Growth atconstant FX

3Q 20Underlying

TFKB FXtranslation

impact

3Q 20Reported

Financing & Advances, net (TRYbn)

International (in TRY) 9M 2020 net income growth YoY on higher operating income

36


9M 2020 Net income after tax grew 269% primarily due to strong growth in operating income, FX/Trading gains and base effect of loss due to loan classifications following BRSA requirement in 3Q 2019.

Operating income increased by 52% YoY boosted by core banking activity and reduced funding costs.

NSCI improved by 35% YoY due to decreasing borrowing costs.

Operating expenses rose 20% YoY from inflationary pressures and additional expenses for Covid-19.

Impairments increased 15% as TFKB intends to increase NPL coverage and additional provisions were required due to Covid-19.

45% 34%% of balance in foreign currency

62% 69%% of balance in foreign currency


TRY (mn) 3Q 2020 2Q 2020 3Q 2019YoY % change 9M 2020 9M 2019

YoY % change

Total assets 79,982 67,904 50,203 +59% 79,982 50,203 +59%Total operating income 815 821 590 +38% 2,407 1,587 +52%

Net special commission income 664 593 498 +33% 1,826 1,353 +35%Fee income from banking services, net 57 71 55 +3% 197 197 -0%

Operating expenses (327) (336) (272) +20% (989) (823) +20%Impairment charge (249) (215) (378) -34% (692) (604) +15%Other income (expenses) 98 171 38 +157% 416 75 +455%Net income for the period before tax 243 284 (59) -512% 758 198 +283%Tax (56) (62) 14 -500% (168) (38) +341%

Net income after tax 187 222 (45) -515% 591 160 +269%

Cost to income (%) 40.1% 40.9% 46.1% -13% 41.1% 51.9% -21%CAR (%) 15.8% 16.9% 17.7% -11% 15.8% 17.7% -11%Tier 1 CAR % 12.1% 12.4% 13.4% -10% 12.1% 13.4% -10%LTD ratio (%) 78.8% 82.1% 76.0% +4% 78.8% 76.0% +4%

All Figures as per IFRS


ADDITIONAL INFORMATION

3Q 2020 Results


Disclaimer

38

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.


Contact UsThe National Commercial Bank

P.O. Box 3555

21481 Jeddah, Kingdom of Saudi Arabia

Mr. Abdulbadie Alyafi

Head Of Investor Relations

[email protected]

More InformationVisit: http://www.alahli.com/en-us/Investor_Relation

to access NCB’s current and previous Investor Publications including:

Financial statements

Earnings releases

Investor presentations

Financial data packs (in Excel)

NCB Contacts NCB welcomes your feedback and inquiries

39

http://www.alahli.com/en-us/Investor_Relation

Investor �PresentationInvestor Presentation ContentNCB at a glanceOperating EnvironmentNCB Strong Track RecordLeading, diversified franchise2020 Strategy ProgressFinancial results HighlightsFinancial Results UpdateIncome StatementBalance SheetSegmental Information (1/3)Segmental Information (2/3)Segmental Information (3/3)2020 GuidanceFinancial Results detailsOperating Income HighlightsNet special commission incomeFee and other incomeExpense HighlightsAsset Highlights and CompositionFinancing and AdvancesFinancing and Advances Credit Quality (1/2)Financing and Advances Credit Quality (2/2)InvestmentsFundingDepositsLiquidityCapitalSegmental ReviewNCB Bank (standalone)Retail BankingCorporate BankingTreasuryCapital MarketsInternational (in TRY)Additional InformationDisclaimerNCB Contacts

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NCB Investor Presentation...NCB Investor Relations | 3Q 2020 Investor Presentation Investor Presentation Content 2 Page 4 Operating Environment Page 7 Strategy Overview Page 8 Financial