National Commercial Bank Investor Presentation 2Q 2018 Results › en-us › Investor_Relation ›...
Transcript of National Commercial Bank Investor Presentation 2Q 2018 Results › en-us › Investor_Relation ›...
NCB Investor Relations2Q 2018 Investor Presentation 1
National Commercial Bank Investor Presentation2Q 2018 Results
NCB Investor Relations2Q 2018 Investor Presentation 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 Relations2Q 2018 Investor Presentation 3
Investor Presentation
Contents
04
12
18
29
51
59
NCB – The leading KSA bank
Grow with KSA. Grow with NCB
Strategy Overview
Financial Results Highlights
Segmental Overview
Additional Information
37 Financial Results Details
NCB Investor Relations2Q 2018 Investor Presentation 4
The leading KSA bank2Q 2018 Results
National Commercial Bank
NCB Investor Relations2Q 2018 Investor Presentation 5
NCB is the leading banking group in Saudi Arabia (1)
Established in 1953; IPO in 2014
NCB Snapshot (FY 2017)
Jeddah HQ
>8m Clients13,436Employees*
SAR
444bn Assets
SAR
309bn Deposits
SAR
>100bn Market Cap
Wholesale branch in BahrainOffices: Singapore, Seoul, Shanghai
Subsidiary in Turkey:Türkiye Finans Katılım Bankası
Subsidiary in KSA:NCB Capital
*Includes Alahli Esnad (1,381 employees) - fully owned subsidiary engaged in recruitment services within KSA
NCB Investor Relations2Q 2018 Investor Presentation 6
NCB is the leading banking group in Saudi Arabia (2)
NCB has a strong market and financial position (FY 2017)
444
343
228 216 193
050
100150200250300350400450500
NCB Rajhi Samba Riyad BSF
Assets (SARbn)
249 234
139 122 118
0
50
100
150
200
250
300
NCB Rajhi Riyad BSF Samba
Financing (SARbn)
309 273
168 154 151
0
50
100
150
200
250
300
350
NCB Rajhi Samba Riyad BSF
Deposits (SARbn)
Market Position by KSA
Overall banking Assets #1
Corporate banking Financing #1
Retail banking Financing #2
Treasury Investments #1
Asset Management AUMs #1
Brokerage Value Traded #3
Financial Position KSA GCC
Assets #1 #4
Financing #1 #4
Deposits #1 #3
Investments #1 #1
Total Operating Income #1 #3
Net Income #1 #3
NCB Investor Relations2Q 2018 Investor Presentation
SR (bn)
8.7 9.8
+4%
0
2
4
6
8
10
12
14
16
18
20
2014 2017
16 18
+4%
0
5
10
15
20
25
30
35
40
2014 2017
221 249
+4%
0
100
200
300
400
500
2014 2017
7
NCB is the leading banking group in Saudi Arabia (3)
Key KPIs compared to Saudi Arabian banking peers (FY 2017)
CAGR
Industry Peers(ex NCB)
Total operating income
Net income attributable to equity holders
206 234
+4%
0
50
100
150
200
250
300
350
400
450
2014 2017
133 139
+1%
0
50
100
150
200
2014 2017
117 122
+2%
0
50
100
150
200
2014 2017
124 118
-2%
0
50
100
150
200
2014 2017
1,045 1,129
+3%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2014 2017
14 16 +5%
0
5
10
15
20
25
30
35
2014 2017
8 8 +0%
0
2
4
6
8
10
12
14
16
18
20
2014 2017
6 7
+4%
0
2
4
6
8
10
12
14
2014 2017
14 8
-17%
0
5
10
15
20
25
30
35
40
2014 2017
60 68
+5%
0
20
40
60
80
100
120
2014 2017
6.8 9.1
+10%
0
2
4
6
8
10
12
14
16
18
20
2014 2017
4.4 3.9
-3%
0
1
2
3
4
5
6
7
8
9
10
2014 2017
32.8 35.2
+2%
0
10
20
30
40
50
60
70
2014 2017
3.5 3.5 +0%
0
2
4
6
8
10
12
2014 2017
5.0 5.0
+0%
0
2
4
6
8
10
12
14
2014 2017
Financing and advances, net
NCB Investor Relations2Q 2018 Investor Presentation 8
NCB has a well-diversified business model
Total operating income contribution (FY 2017)
Capital Markets
NCB CapitalLargest Asset Manager in KSA
Largest Shariah-compliant Asset Manager worldwide
Top 3 Broker15 locations
297 Employees
SAR 16.1bn88%
NCB
400 branches, 3,488 ATMs150 Remittance centers
7,991 Employees96% Saudization
100% Saudi Top Management
7.9bn43%
4.5bn25%
3.8bn20%
RETAIL
CORPORATE
TREASURY
1.6bn9%
636mn3%
International
Türkiye Finans Katılım Bankası (TFKB)287 branches, 587 ATMs
3,767 employees
Note: KSA based recruitment services firm Alahli Esnad (fully owned subsidiary) employs 1,381 persons
NCB Investor Relations2Q 2018 Investor Presentation 9
NCB has a strong financial position
Key KPIs
CAGR CAGR
LCR is based on 4Q average numbersLCR was not reported before 2015
Capital ratios are based on Pillar I RWA
377 435 449 443 444
+4%
0
100
200
300
400
500
600
700
800
2013 2014 2015 2016 2017
Total Assets (SARbn)
43 47 56 60 64
+11%
0
20
40
60
80
100
120
2013 2014 2015 2016 2017
Total Equity (SARbn)
17.1% 17.2% 17.2%
19.2%20.0%
15.1%
16.9%17.7%
16.2%
14.7%13.5%
15.3% 15.7%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
2013 2014 2015 2016 2017
Capital Ratios (%)
TC ratio T1 ratio CET1 ratio
152.3%172.5% 177.3%
62.4% 66.3%78.1% 80.3% 80.7%
0
0
0
1
1
1
1
1
2
2
2
2013 2014 2015 2016 2017
Liquidity Ratios (%)
Liquidity coverage ratio (LCR) Financing to customer deposit ratio
NCB Investor Relations2Q 2018 Investor Presentation 10
NCB has a strong performance track record
Key KPIs
CAGR CAGR
10.1 11.4 12.6 13.5 13.7
4.8 4.8 4.9 5.1 4.7 14.9 16.2 17.5 18.6 18.3
+5%
0
5
10
15
20
25
30
35
2013 2014 2015 2016 2017
Total Operating Income (SARbn)
Net special commission incomeFee and other income
7.9 8.7 9.1 9.3 9.8
+6%
0
2
4
6
8
10
12
14
16
18
2013 2014 2015 2016 2017
Net Income Attributed To Equity Holders (SARbn)
2.99% 2.91% 3.04%3.35% 3.48%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
2013 2014 2015 2016 2017
Net Special Commission Margin (%)
39.0% 39.0% 37.4% 37.7%35.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2013 2014 2015 2016 2017
Cost to Income Ratio (%)
20.0% 20.1%19.2%
17.8% 17.4%
2.2% 2.2% 2.1% 2.1% 2.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0
0
0
0
0
0
0
2013 2014 2015 2016 2017
Returns (%)
ROE common shares (%) ROA (%)
NCB Investor Relations2Q 2018 Investor Presentation 11
NCB Group listed on Tadawul in November 2014
Ranked third in Tadawul, S&P Pan Arab and MSCI Indices with significant weightings
MSCI Saudi Arabia Index Float Adj. Mcap (USDb) Weighting (%)
SABIC 25.24 17.62Al Rajhi Bank 18.32 12.79National Commercial Bank 15.55 10.85Saudi Telecom (STC) 9.57 6.68Samba Financial Group 8.49 5.93Saudi Arabian Mining Co (Maaden) 6.24 4.35Riyad Bank 5.20 3.63Saudi Electricity Co (SEC) 4.63 3.23Yanbu Natl Petrochem Co (Yansab) 4.47 3.12Alinma Bank 4.20 2.93
Ratings LT ST Outlook
National Commercial BankS&P BBB+ A-2 StableFitch A- F1 StableMoody’s* A1 P-1 StableCapital Intelligence A+ A1 NegativeGovernment of Saudi ArabiaS&P A- StableFitch A+ StableMoody’s A1 StableCapital Intelligence A+ Negative
*Moody’s rating is unsolicited
[Source: MSCI, 29 June 2018]Source: NCB, Bloomberg
Source: Bloomberg
Share parameters 30 Jun 2018
Closing Price (SAR) 48.652 week range (SAR) 31-49Free Float 36%Shares issued (mn) 3,000Tangible Book Value (SARmn) 56.756Tangible BVPS 18.92P/TBV Ratio 2.6xP/E Ratio (FY 2017 earnings) 15.38xDiv Yield (FY 2017 dividends) 2.33%3m Avg Daily Volume (shares) 956,579
05
10152025303540455055
Nov-14 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17 Nov-17 Mar-18
Share price performance since IPO (SAR)(Adj price)
Trading commenced 12/11/2014. Day 1 at SAR 33
NCB Investor Relations2Q 2018 Investor Presentation
National Commercial Bank Grow with KSA. Grow with NCB2Q 2018 Results
NCB Investor Relations2Q 2018 Investor Presentation 13
Moving towards economic inflectionGrowth and fiscal indicators point to a positive inflection point in the Saudi EconomyHeadwinds including international trade tension persist
Source: Thomson Reuters, Ministry of Finance, SAMA, Tadawul, and NCB Economics Forecasts
718 725 610 529 490
36 43
60 39 39
754 768 670
568 529
0
100
200
300
400
500
600
700
800
900
2013 2014 2015 2016 2017
Foreign Reserves (USDbn)
SAMA
Banks
0
20
40
60
80
100
120
140
0
2
4
6
8
10
12
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018USD/bblMMBD
Oil Market
Saudi Oil Production, LHSArabian Light Spot Price,…
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17
Stock Market
Tadawul Index
6.4%
-2.3%
-14.8% -12.9%-9.3%
-1.3%
18.1%
9.7%
-8.7%-3.7%
2.2%9.6%
-25.0%
-15.0%
-5.0%
5.0%
15.0%
25.0%
2013 2014 2015 2016 2017P 2018F
Twin Balances (%)
Budget Balance / GDPCurrent Account Balance / GDP
NCB Investor Relations2Q 2018 Investor Presentation 14
Saudi banking sectorBanking 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
Source: Thomson Reuters, SAMA, Banks’ Annual Reports, and NCB Economics Estimates
37.6 41.5 43.7 41.3 45.0
7.2%
10.2%
5.4%
-5.4%
8.7%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
10
20
30
40
50
60
70
80
90
100
2013 2014 2015 2016 2017
Profits (SARbn)
ProfitsAnnual Growth (%)
1,402 1,576 1,605 1,617 1,619
11.2% 12.4%
1.9% 0.8% 0.1%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013 2014 2015 2016 2017
Bank Deposits (SARbn)
DepositsDeposit Growth Rate (YoY%)
69 76 80 83 87
6.8%9.1%
5.7%3.8% 4.3%
-9.9%
-7.9%
-5.9%
-3.9%
-1.9%
0.1%
2.1%
4.1%
6.1%
8.1%
10.1%
0
20
40
60
80
100
120
140
160
180
2013 2014 2015 2016 2017
Total Operating Income (SARbn)
Profits (FY)Annual Growth (%)
0.99%
2.59%
0.30%
2.34%
(0)
(0)
0
0
0
0
0
0
0
2013 2014 2015 2016 2017 2018
Interbank Rates (%)
3M SAR SAIBOR 3M USD LIBOR
1,121 1,251 1,362 1,400 1,387
12.0% 11.6%8.9%
2.9%-1.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2013 2014 2015 2016 2017
Bank Lending (SARbn)
Bank credit, private and public sectorsCredit Growth Rate (YoY%)
NCB Investor Relations2Q 2018 Investor Presentation 15
Vision 2030
Saudi Arabia’s vision 2030 establishes a clear roadmap to accelerate economic growth
A Thriving Economy
An Ambitious
Nation
A Vibrant Society
Pillars Selected Goals & KPIsObjectives
Strengthen Islamic values & national identity
Offer a fulfilling & healthy life
Grow & diversify the economy
Increaseemployment
Enhance government effectiveness
Enable social responsibility
Vision Realization Programs
Enriching the Hajj and Umrah Experience
National Transformation Program
PIF Program
National Industrial Development and Logistics Program
Financial Sector Development Program
Lifestyle Improvement Program
National Companies Promotion Program
Strategic Partnerships Program
The Housing Program
Privatization Program
Saudi Character Enrichment Program
Fiscal Balance Program
Lower the rate of unemployment from 11.6% to 7%
Increase the Public Investment Fund’s assets to over SAR 7 trillion
Increase the private sector’s contribution from 40% to 65% of GDP
Raise the share of non-oil exports in non-oil GDP from 16% to 50%
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%
NCB Investor Relations2Q 2018 Investor Presentation 16
NCB is aligned with Government prioritiesNCB is a key contributor to economic transformation and the Financial Sector Development Program (FSDP) objectives
NCB leverages competitiveness and scale
to deliver value to its stakeholders and support
the national agenda
Vision 2030 Objectives Directly Related to the
FSDP
Enabling financial institutions to support private sector growth
Developing an advanced capital market
Promoting and enabling financial planning
Leading lender for KSA companies with a portfolio of SAR 128bn; 14% Corporate market share (1Q 2018)
Supporting +70,000 SMEs across KSA; a leading SME lender and participant in the relaunched Kafalah guarantee program
Appointed as a Primary Dealer in local government securities
Large investor in Saudi Government Bonds with a portfolio SAR 48bn
Major advisor to Government and GRE sukukissuances and debt refinancing (KSA Government, Aramco, Ma’aden Aluminum, SEC, ACWA power, Ma’aden Phosphate)
Provided home financing for more than 30,000 Saudi families with a portfolio of SAR 21bn
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
NCB Investor Relations2Q 2018 Investor Presentation 17
Projected economic upturn progressionBudgetary pro-growth measures, growing CAPEX, and additional stimuli point to continuing economic and banking growth despite the non-oil private sector adjusting to structural shifts
Source: Ministry of Finance, Fiscal Balance Program, and NCB Economics Forecasts
60 44 142
317 443
555 673
749
2% 2%6%
13%17% 19%
22%25%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1,000
1,200
2013 2014 2015 2016 2017 2018F 2019F 2020F
Government Debt (SARbn)
Domestic Public Debt
Debt to GDP Ratio (%)
(
312 370 264 134 208 205 218 228
664 740
714 696
722 773 789 822
976 1,110
978 830
930 978 1,007 1,050
0
200
400
600
800
1,000
1,200
2013 2014 2015 2016 2017P 2018F 2019F 2020F
Government Expenditure (SARbn)
CapexCurrent Expenditure (Opex)
1,035 913 446 334 436 650 661 579
121 131
169 186 256
289 326 368
1,156 1,044
616 519 692
939 987 947
106 97
50 4152
68 65 56
-70
-50
-30
-10
10
30
50
70
90
110
0
500
1,000
1,500
2,000
2013 2014 2015 2016 2017P 2018F 2019F 2020F
Government Revenue (SARbn)
Oil RevenuesNon-oil RevenuesAverage Oil Price (USD)
15451729 1773 1787 1791 1821 1902 1995
10.9%11.9%
2.5%0.8% 0.2%
1.7% 4.4% 4.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0
500
1,000
1,500
2,000
2,500
3,000
2013 2014 2015 2016 2017 2018F 2019F 2020F
Money Supply (SARbn)
Money SupplyMoney Supply Growth Rate (YoY%)
1,121 1,251 1,362 1,400 1,387 1,397 1,460 1,543
12.0% 11.6% 8.9%2.9%
-1.0% 0.7%4.5% 5.7%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2013 2014 2015 2016 2017 2018F 2019F 2020F
Bank Lending (SARbn)
Bank credit, private and public sectors Credit Growth Rate (YoY%)
917 967 999 1,000 1,012 1,023 1,046 1,084
7.0% 5.4%
3.4%0.1%
1.2%
1.1% 2.2%
3.6%
2.7% 3.7%
4.1%1.7%
-0.9%
2.6% 2.7%
1.2%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
(100)
400
900
1,400
1,900
2,400
2,900
3,400
2013 2014 2015 2016 2017 2018F 2019F 2020F
GDP - Real vs. non-oil private sector (SARbn)
Non-Oil Private GDPNon-Oil private sector Annual GrowthReal GDP
NCB Investor Relations2Q 2018 Investor Presentation
National Commercial Bank Strategic Overview2Q 2018 Results
NCB Investor Relations2Q 2018 Investor Presentation 19
NCB’s strategic plan is about execution
Our strategic objectives are supported by productivity enablers
Retail Banking Expand share of retail profits
Corporate Banking Grow in Vision 2030 targeted sectors and resilient SME’s
TFKB Increase profit contribution
TreasuryDiversify funding, sustain investment returns and cross-sell
NCBC Generate AUMs and cater to GRE’s growing needs
Lean Distribution
Digitization
Expand reach with lean branches
Anywhere, anytime, instant banking
Strategic objectives
Strategic enablers
NCB Investor Relations2Q 2018 Investor Presentation 20
NCB continues to deliver on its strategic plan
1H 2018 Highlights
Retail portfolio increased by 3% mainly on growth in mortgageAchieved growth in deposits
Grew Corporate lending 9%Launched Alahli E-Corp app, KSA’s first comprehensive mobile app for companies
Resumed branch expansion and expanded digital channelsGrew lending and deposit base
NCB was appointed as a Primary Dealer in local government securitiesSurge in recurring revenue, resulting in YoY NSCI growth of 25%
Continued expanding net income through increasing AUMs and maintaining cost discipline
Optimized branch network for productivity with 6 FTEs at newest branches
Continued to drive digital migration: digital channel transactions up 39%
Retail Banking
Corporate Banking
TFKB
Treasury
NCBC
Lean Distribution
Digitization
NCB Investor Relations2Q 2018 Investor Presentation 21
Lean distributionWe accelerated expansion of our distribution platform in Saudi Arabia and are streamlining branch formats to enhance productivity gains
Strategic Imperatives
Continue expanding our distribution reach to acquire customers and grow market share
Expand with smaller branches that are headcount efficient
Optimize costs of existing branch network
Equip branches with self-service/assisted-service technologies
Enhance the in-branch sales and service model to improve customer experience
39.0%35.2%
-10%
0
0
0
0
0
1
1
1
2014 2017
Cost to Income Ratio (%)
342 400
+17%
0
100
200
300
400
500
600
700
2014 2017
Number of Branches
8,021 7,991
-0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2014 2017
Bank Headcount (NCB employees)
12.1 11.0
-9%
0
5
10
15
20
2014 2017
FTE / branch
60%71%
+18%
0
0
0
1
1
1
1
1
2014 2017
Front / Back Office Ratio (%)
1.65 2.02
+22%
0
1
1
2
2
3
3
4
2014 2017
Operating Income / FTE (SARmn)
NCB Investor Relations2Q 2018 Investor Presentation
10%
37%
+54%
0
0
0
0
0
1
1
1
2014 2017
Digital Transactors (% of total base)
22
Digitization
Migrate customers to digital through superior user experiences
Strategic Focus Areas
Mobile first - anytime, anywhere
Consistently lead KSA banks in functionality and user-experience
Expand end-to-end digital sales capability
Expand subscription base and incentivize usage
Leverage data and analytics to drive sales effectiveness
CAGR CAGR CAGR
13.0 30.7 2.8
19.4
15.8
50.1
+47%
0
10
20
30
40
50
60
70
80
90
2014 2017
Digital Transactions (mn)
OnlineMobile
8%
4%
-21%
0
0
0
0
0
0
0
2014 2017
Branch Financial Transactions (% of total)
NCB Investor Relations2Q 2018 Investor Presentation
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
CAGR CAGR CAGR
23
5.7
8.3
+13%
0
2
4
6
8
10
12
14
16
2014 2017
Operating Income (SARbn)
74 89
17.4%19.5%
+6%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0
20
40
60
80
100
120
140
160
2014 2017
Consumer Financing & Advances, net (SARbn)
Market Share (%)
1.6
4.0
+38%
0
1
2
3
4
5
6
7
8
2014 2017
Net Income (SARbn)
NCB Investor Relations2Q 2018 Investor Presentation 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
CAGR CAGR CAGR
108 124
+5%
0
50
100
150
200
2014 2017
Corporate Financing & Advances, net (SARbn)
3.7 4.5
+6%
0
1
2
3
4
5
6
7
8
2014 2017
Total Operating Income (SARbn)
3.2
2.3
-10%
0
1
2
3
4
5
2014 2017
Net Income (SARbn)
NCB Investor Relations2Q 2018 Investor Presentation 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
CAGR CAGR
HQLA is group-wide 4Q averageLCR shows 4Q average
94% 91%
-1%
0
0
0
1
1
1
1
1
2
2
2
2014 2017
Saudi Government and Investment Grade Investments as % of Total
35%
26%
-10%
0
0
0
0
0
1
1
2014 2017
Investments as % of Total Assets
100 95
152.3%177.3%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
180.0%
200.0%
0
20
40
60
80
100
120
140
160
180
2015 2017
HQLA and Liquidity Coverage (SARbn/%)
High quality liquid assets (HQLA)Liquidity coverage ratio (LCR)
NCB Investor Relations2Q 2018 Investor Presentation
10.1%
17.6%
+7.5ppt
0
0
0
0
0
0
0
0
0
0
1
2014 2017
NCBC Share of Sector Net Income (%) (SARbn)
490
198
11.4% 11.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0
100
200
300
400
500
600
700
800
900
1,000
2014 2017
NCBC Traded Value (SARbn) & Market Share (%)
NCBC Traded ValueMarket Share (%)
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
2,147
836
8,333 7,226
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2014 2017
Tadawul Traded Value (SARbn) & TASI Index
Tadawul Traded ValueTASI Index
55
129
+134%
0
50
100
150
200
250
2014 2017
NCBC Assets under Management (SARbn)
NCB Investor Relations2Q 2018 Investor Presentation
34 39
+5%
0
10
20
30
40
50
60
70
2014 2017
Total Assets (TRYbn)
1,446
1,914
+10%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2014 2017
Total Operating Income (TRYmn)
334 375
+4%
0
100
200
300
400
500
600
700
2014 2017
Net Income (TRYmn)
2.9% 3.2%
+3%
0
0
0
0
0
0
0
0
2014 2017
TFKB Contribution to NCB Net Income (%) (TRYmn)
27
Türkiye 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)
CAGRCAGRCAGRCAGR
Note: Figures according to BRSA accounting standards
NCB Investor Relations2Q 2018 Investor Presentation
Grew Corporate loan portfolio by 9%
28
Three Strategic Priorities for 2018
NCB’s strategy continues to be about execution
Grow Residential Finance
Current Account and Capital Base
Focus
Position Corporate Banking
for growth
Position NCB as the preferred funding partner
Leverage National housing initiatives
Leverage branch expansion for customer acquisition
Drive focus on current account growth to maintain funding advantage
Sustain capital base to support credit growth
Win mandates in vision 2030 targeted sectors
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.
3.
1.
1 H 2018 Update
Grew mortgage portfolio by 9%
Grew Current Accounts by 6%
NCB Investor Relations2Q 2018 Investor Presentation
National Commercial Bank Financial Results Highlights2Q 2018 Results
NCB Investor Relations2Q 2018 Investor Presentation 30
Key messages
2Q 2018 Results
Income Statement
BalanceSheet
Asset Quality, Capital
& Liquidity
2% increase in total assets. Strong financing growth of 7% driven by domestic. Investment levels stable with ongoing portfolio re-balancing and participation in
Saudi Government debt issuance. Customer’s deposits mix improved, CASA ratio up at 79%. Balance sheet growth limited by ~1.6% from Turkish Lira depreciation.
8.7% YoY growth of net income in 1H 2018, depressed by ~29bps from Turkish Lira depreciation.
2% NSCI growth in 1H 2018 as NSCI margin improved by 9bps. 2% decline in fee and other income in 1H 2018. 5% Operating Expenses increase in 1H 2018 from VAT & Cost of living
allowances. 63% less impairment charges for financing and advances losses, and CoR 26bps.
Group NPL ratio at 1.7% at 2Q 2018 and higher NPL coverage at 161.4%. Capital position comfortably above regulatory minima with CET1 of 16.2% and T1
of 18.1% at 2Q 2018. Strong liquidity with LTD ratio of 83.8%, average 2Q 2018 LCR of 211.9% and
Leverage Ratio of 13.1% at 2Q 2018.
Financing (SARbn) Deposits (SARbn)
Net Income Attributable to Equity Holders Movement (SARbn)
NPL & CoR (%) CET1 and LTD (%)
249 266
+7%
0
100
200
300
400
500
600
4Q 17 2Q 18
309 318
+3%
0
100
200
300
400
500
600
700
800
4Q 17 2Q 18
1.9% 1.7%
0.7%
0.3%
-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 17 2Q 18Group NPL ratioGroup CoR YTD
15.7% 16.2%
81% 84%
20%
30%
40%
50%
60%
70%
80%
90%
0
0
0
0
0
0
0
0
4Q 17 2Q 18CET1LTD
5.12 0.16
(0.06)
(0.16)0.48 0.02 5.57
0
1
1
2
2
3
3
1H 1
7
NSC
I
Non
-NSC
I
Expe
nses
Impa
ir-m
ents
Oth
er
1H 1
8
NCB Investor Relations2Q 2018 Investor Presentation 31
Income Statement
Profitability Trends
SAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY % change 1H 2018 1H 2017 YoY %
change
Net special commission income 3,573 3,419 3,473 +3% 6,992 6,832 +2%
Fee and other income 1,087 1,361 1,005 +8% 2,448 2,506 -2%
Total operating income 4,661 4,779 4,478 +4% 9,440 9,338 +1%
Operating expenses (1,692) (1,673) (1,516) +12% (3,366) (3,205) +5%
Total impairment charge (340) (78) (479) -29% (418) (902) -54%
Income from operations, net 2,628 3,028 2,483 +6% 5,656 5,232 +8%
Net income attributed to equity holders 2,579 2,987 2,417 +7% 5,566 5,120 +9%
2Q 2018 Net income growth from higher operating income and lower impairments, partly offset by higher operating expenses
2,647 2,352 2,063 2,431 2,908 2,496
55 66
62 125
78 83
2,703 2,417 2,126 2,556
2,987 2,579
+7%
0
1,000
2,000
3,000
4,000
5,000
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Net income attributed to equity holders (SARmn)
International net incomeDomestic net income
4,472 4,085 4,083 4,111 4,407 4,234
388 393 409 405 372 427
4,860 4,478 4,492 4,516 4,779 4,661
+4%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Total operating income (SARmn)
International Operating IncomeDomestic Operating Income
NCB Investor Relations2Q 2018 Investor Presentation
309 318
0
50
100
150
200
250
300
350
400
450
500
4Q 17 2Q 18
Domestic Deposits94%
International Deposits6%
Customers' Deposits Mix (SARbn)
32
Balance Sheet
Balance Sheet Trends
SAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY % change FY 2017 YTD %
change
Investments, net 114,978 113,555 114,634 +0% 114,578 +0%
Financing and Advances, net 266,043 252,777 256,901 +4% 249,234 +7%
Total assets 454,374 437,506 450,486 +1% 443,866 +2%
Due to banks and other financial institutions 50,024 37,968 51,303 -2% 48,558 +3%
Customers' deposits 317,653 309,001 314,690 +1% 308,942 +3%
Debt securities issued 8,754 10,528 9,926 -12% 10,250 -15%
Total liabilities 389,342 372,645 389,334 +0% 379,590 +3%
Equity attributable to shareholders 57,007 56,684 52,876 +8% 56,041 +2%
Total equity 65,032 64,861 61,152 +6% 64,276 +1%
Growth indicating signs of economic recovery
133 135 135 124 126 135
86 87 88 89 90 92 9 8 8 10 12 16 27 27 27 26 25 24
254 257 257 249 253 266
+7%
0
50
100
150
200
250
300
350
400
450
500
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Financing & Advances, net (SARbn)
CorporateConsumer and credit cardOthersInternational
236 248 232 238 237 251
66 55 59 58 61 53 12 12 12 13 11 13 314 315 303 309 309 318
+3%
0
100
200
300
400
500
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Customers' Deposits (SARbn)
CASATimeOthers
NCB Investor Relations2Q 2018 Investor Presentation
Retail44%
Corporate19%
Treasury24%
Capital Market4%
International9%
Total Operating Income (SARbn)
Retail42%
Corporate20%
Treasury25%
Capital Market4%
International9%
Total Operating Income (SARbn)
33
Segmental Information (1/3) 2Q 2018 Total operating income higher due to Retail and Treasury income, partly offset by Corporate
9,338 103
(388)
273 96 18 9,440
0
500
1,000
1,500
2,000
2,500
1H 17 Retail Corporate Treasury Capital Market International 1H 18
1H 18 Total Operating Income Movement (SARmn)
4,478 100
(148)
164 32 34 4,661
0
200
400
600
800
1,000
1,200
2Q 17 Retail Corporate Treasury Capital Market International 2Q 18
2Q 18 Total Operating Income Movement (SARmn)
9.3 9.4
0
2
4
6
8
10
1H 17 1H 18
4.5 4.7
0
1
2
3
4
5
2Q 17 2Q 18
NCB Investor Relations2Q 2018 Investor Presentation
2.4 2.6
0
1
1
2
2
3
3
4
2Q 17 2Q 18
Retail35%
Corporate21%
Treasury38%
Capital Market3%
International3%
Net Income attributed to equity holders (SARbn)
Retail33%
Corporate23%
Treasury36%
Capital Market4%
International4%
Net Income attributed to equity holders (SARbn)
34
Segmental Information (2/3)2Q 2018 net income attributable to equity holder growth mainly driven by Treasury and Capital market segment
5,120 118 15
184 89 41 5,566
0
200
400
600
800
1,000
1,200
1,400
1H 17 Retail Corporate Treasury Capital Market International 1H 18
1H 18 Net Income attributed to equity holders Movement (SARmn)
2,417
(6) (26)
146 31 17 2,579
0
100
200
300
400
500
600
2Q 17 Retail Corporate Treasury Capital Market International 2Q 18
2Q 18 Net Income attributed to equity holders Movement (SARmn)
5.2 5.7
0
1
2
3
4
5
6
7
1H 17 1H 18
NCB Investor Relations2Q 2018 Investor Presentation 35
Segmental Information (3/3)
2Q 2018 financing growth mainly driven by Corporate and Retail segments
Management Commentary
2Q 2018 Total Assets increased by 2% due to high Corporate financing (+11%) and Retail financing (+3%) while investments remained stable.
Customers’ Deposits increased by 3% from retail segment.
Deposits’ mix improved toward CAs: CASA balances at 79%
109 104 113
133 141 147
163 154 158 38 36 34
444 438 454
+2%
0
100
200
300
400
500
600
700
800
4Q 17 1Q 18 2Q 18
Total Assets (SARbn)
Retail Corporate Treasury Capital Market International
89 90 92
124 126 135 26 25 24
249 253 266
+7%
0
100
200
300
400
500
600
4Q 17 1Q 18 2Q 18
Financing and Advances, net (SARbn)
Consumer and credit card Corporate International Other
207 209 219
72 71 70 8 9 9 22 21 20 309 309 318
+3%
0
100
200
300
400
500
600
4Q 17 1Q 18 2Q 18
Customers' Deposits (SARbn)
Retail Corporate Treasury Capital Market International
NCB Investor Relations2Q 2018 Investor Presentation 36
Outlook
Improved macroeconomic environment expected to drive growth
• Average Arabian light oil price of USD 67 per barrel
• A total of four US Fed rate hikes of 25bps are expected in 2018 (Mar, Jun, Sep, Dec)
• Government’s expansionary budget for 2018 drives corporate lending activity
• Residential financing drives consumer lending growth
• Budget deficit narrows toSAR 46bn
• Real GDP growth of 2.6%
• VAT and increased tariffs on utilities increases inflation to around 3%
2018 Macroeconomic Outlook
BalanceSheet
Capitalization and Asset
Quality
Profitability
Financing growth -2% +6.7% +5% to 8% Upper end of the
range
FY 2017Reported
2Q 2018Reported
FY 2018Guidance
FY 2018 Outlook
NSCI margin 3.48% 3.61% +5 to 15bps Upper end of the range
Cost to income 35.2% 35.7% Below 35% Similar level to 1H
Tier 1 CAR 17.7% 18.1% 16% to 18% On target
Group Cost of Risk 0.7% 0.3% 0.6% to 0.8% Lower end of the
range
NCB Investor Relations2Q 2018 Investor Presentation
National Commercial Bank Financial Results Details2Q 2018 Results
NCB Investor Relations2Q 2018 Investor Presentation 38
Operating Income Highlights
Management Commentary
2Q 2018 total operating income increased 4% YoY from a 3% improvement in net special commission income, higher investment-related income (8%), Fees revenue (2%) and Other operating expenses (36%)
Excluding the International business, 2Q 2018 total operating income was 4% higher YoY.
International operating income increased despite 11% depreciation of average Turkish Lira rate as compared with 2Q 2017.
1H 2018 total operating income increased by 1% YoY from 2% higher net special commission income.
Higher 2Q 2018 total operating income largely attributable to net special commission income
3.47 3.42 3.57
1.01 1.36 1.09 4.48 4.78 4.66
+4%
0
1
2
3
4
5
6
7
8
2Q 17 1Q 18 2Q 18
Total Operating Income (SARbn)
Fee and other income
Net special commission income
6.83 6.99
2.51 2.45
9.34 9.44
+1%
0
2
4
6
8
10
12
14
16
1H 17 1H 18
4.48 0.10 0.05 0.03 4.66
4.23
0.43
4.09
0.39
0
1
1
2
2
3
3
2Q 17 NSCI Fee and other income InternationalNOR
2Q 18
2Q 18 Total Operating Income Movement (SARbn)
9.34 0.17
(0.09)
0.02 9.44
8.64
0.80
8.56
0.78
0
1
2
3
4
5
6
1H 17 NSCI Fee and other income InternationalNOR
1H 18
1H 18 Total Operating Income Movement (SARbn)
Domestic
International
Domestic
International
NCB Investor Relations2Q 2018 Investor Presentation
2.97%3.25%
3.50% 3.46% 3.38% 4.15%
0
0
0
0
0 Net Special Commission Margin (%)International
39
Net special commission income trends
2Q 2018 net special commission income growth of 3% partly limited by Turkish Lira depreciation
Management Commentary
The 2Q 2018 net special commission margin increased by 16bps YoY to 3.62% due to improved yields (+25bps).
Special commission expense for 2Q 2018 was 19% higher due to higher SAIBOR/LIBOR rates.
1H 2018 NSCI improved by 2% on higher SCI, despite 13% increase in cost of fund due to higher SAIBOR/LIBOR.
Net Special Commission Income
SAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY % change 1H 2018 1H 2017 YoY %
change
Special commission income 4,519 4,342 4,267 +6% 8,862 8,488 +4%
Special commission expense (946) (924) (794) +19% (1,870) (1,655) +13%
Net special commission income 3,573 3,419 3,473 +3% 6,992 6,832 +2%
Commission yield (%) 4.57% 4.56% 4.32% +6% 4.53% 4.37% +4%
Funding cost (%) 1.03% 1.04% 0.93% +11% 1.03% 0.95% +8%
Net special commission margin (%) 3.62% 3.59% 3.46% +5% 3.61% 3.49% +3%
1.15% 1.30% 1.33%1.69%
2.31%
2.34%1.74% 1.78% 1.79% 1.90%2.27%
2.59%
0
0
0
0
0
0
0
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
SAIBOR and LIBOR Rates (%)
3M USD LIBOR (%) 3M SAR SAIBOR (%)
4.08% 3.94% 3.92% 3.94% 4.06% 4.10%
0.61% 0.49% 0.52% 0.51% 0.51% 0.58%
7.76% 8.30% 8.44%9.48% 9.85% 10.29%
5.12% 5.37% 5.24%6.31% 6.80% 6.45%
(0)
0
0
0
0
0
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Commission Yield and Funding Cost (%)
Domestic Yields Domestic COFInternational Yields International COF
3.52% 3.46% 3.45% 3.49% 3.59% 3.62%0
0
0
0
0
Group
3.52% 3.42% 3.43% 3.46% 3.59% 3.56%
0
0
0
0
0
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Domestic
NCB Investor Relations2Q 2018 Investor Presentation
1,592 1,661
610 551 540 444
(236) (209)
2,506 2,448
-2%
(500)
500
1,500
2,500
3,500
4,500
5,500
1H 17 1H 18
40
Fee and other income trends
Management Commentary
2Q 2018 fee and other income increased 8% YoY due to 2% growth in fees from banking services, 8% higher in investment-related income and 36% lower other operating expenses.
The higher fees from banking services in 2Q 2018 were mainly driven by higher fees from investment management services, partly offset by lower financing and lending and trade fees.
1H 2018 lower fee and other income due to lower investment income, as well as FX income.
Higher 2Q 2018 Fee income and lower other operating expenses
Fee IncomeSAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY %
change 1H 2018 1H 2017 YoY % change
Finance and lending 358 358 373 -4% 716 755 -5%Trade finance 121 137 134 -10% 258 269 -4%Investment management services 133 164 106 +25% 297 195 +53%
Shares brokerage 39 60 32 +22% 99 101 -2%Credit cards 50 38 37 +33% 87 74 +19%Others 109 96 106 +2% 205 198 +3%Fee income from banking services, net 809 852 790 +2% 1,661 1,592 +4%
790 852 809
285 262 289 80
359 86
(149) (113) (96)
1,005 1,361
1,087
+8%
(200)
300
800
1,300
1,800
2,300
2Q 17 1Q 18 2Q 18
Fee and Other Income (SARmn)
Other operating income (expenses), netInvestment-related incomeExchange Income, netFee income from banking services, net
1,592 100
(39)
14
(11)
6 1,661
1,539
122
1,448
144
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1H 17 Brokerage& invmnt.Mngmnt.
Finance &lending
Credit cards Tradefinance
Other 1H 18
1H 18 Drivers of Fee Income from Banking Services Movement (SARmn)
Domestic
International
NCB Investor Relations2Q 2018 Investor Presentation 41
Expense highlights
Management Commentary
2Q 2018 operating expenses increased by 12% YoY.
The cost to income ratio for 1H 2018 was 35.7%, higher by 134bps compared to 1H 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.
887 919 899 188 193 196 154 156 155 288 405 443
1,516 1,673 1,692
+12%
(400)
100
600
1,100
1,600
2,100
2,600
3,100
3,600
2Q 17 1Q 18 2Q 18
Operating Expenses (SARmn)
Other G&ADepreciation & amortizationRent & premisesEmployee-related
34.7%34.3%
34.8%35.2% 35.0%
35.7%
32.9%32.3%
31.2%
33.3% 33.1%
34.1%
0
0
0
0
0
0
0
0
0
1Q 17 1H 17 9M 17 FY 17 1Q 18 1H 18
Cost to Income Ratio (YTD %)
Group (%) Excluding International (%)
3,205 58 17
(38)
123 3,366
2,945
420
2,766
439
0
500
1,000
1,500
2,000
2,500
1H 17 Employee-related Rent & premises Depreciation &amortization
Other G&A 1H 18
1H 18 Operating Expenses Movement Drivers (SARmn)
Domestic
International
1,760 1,818
371 389 349 311 724 848
3,205 3,366
+5%
0
1,000
2,000
3,000
4,000
5,000
6,000
1H 17 1H 18
VAT, Cost of living allowances and support growth plans largely contributed to higher expenses in 2Q 2018
NCB Investor Relations2Q 2018 Investor Presentation
Financing and Advances, net59%
Investments, net25%
Cash, bank and SAMA balances12%
Other assets, net4%
Total Assets Mix (SARbn)
Retail25%
Corporate32%
Treasury35%
Capital Market0%
International8%
Total Assets by Segment (SARbn)
42
Asset highlights and composition2% growth in Balance sheet as a result of increase in financing, partially offset by Turkish Lira depreciation
Management Commentary
Total assets increased 2% due to increase in financing.
7% financing increase mainly due to 9% increase in domestic financing partially offset by 10% decline in international financing impacted by 17% Turkish Lira depreciation.
Overall financing trends were reflective of early signs of economic recovery but further muted by Turkish Lira depreciation.
Investments relatively stable while portfolio re-balancing and participation in Saudi Government debt issuance continued.
249 253 266
115 114 115 60 49 54 444 438 454
+2%
0
100
200
300
400
500
600
700
800
900
4Q 17 1Q 18 2Q 18
Total Assets (SARbn)
Financing and Advances, netInvestments, netCash, bank and SAMA balancesOther assets, net
444 454
0
100
200
300
400
500
600
4Q 17 2Q 18
444 454
0
100
200
300
400
500
600
4Q 17 2Q 18
NCB Investor Relations2Q 2018 Investor Presentation
Consumer financing & credit cards
35%
Commerce15%
Manufacturing13%
Services9%
Utilities & health7%
Building & construction6%
Others, across 6 sectors15%
Financing and Advances, gross by Economic Sector (SARbn)
43
Financing and advances
Financing growth driven by Corporate and Consumer & Credit Cards segments
Management Commentary
Domestically, financing grew for the Corporate Segment (+9%) and Consumer & Credit Cards segment (+3%) since 4Q 2017.
Growth in Corporate segment comes from all sectors apart from Commerce.
International financing declined 10% in 2Q 2018 due principally to weakened Turkish Lira.
89 90 92
124 126 135 26 25 24 10 12 16
249 253 266
+7%
0
100
200
300
400
500
600
4Q 17 1Q 18 2Q 18
Financing and Advances, net (SARbn)
Consumer and credit cardCorporateInternationalOther
256 274
0
50
100
150
200
250
300
350
4Q 17 2Q 18
256
5.0 2.0
1.9 3.7
3.7
(1.3)
2.7 274
0
5
10
15
20
25
30
35
4Q 17 Banking &financial
Manufacturing Services Building &construction
Commerce Consumerfinancing &credit cards
Other 2Q 18
Movement Financing, Gross by Economic Sector (SARbn)
NCB Investor Relations2Q 2018 Investor Presentation 44
Financing and advances credit quality (1/2)
Stable credit quality across the board
2.12 2.34 2.63 2.84 2.80 2.94 0.50 0.49 0.52 0.53 0.52 0.53 1.48 1.50 1.52 1.40 1.40 1.26 4.10 4.33 4.67 4.77 4.72 4.75
-0%
0
1
2
3
4
5
6
7
8
9
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
NPL (SARbn)
CorporateConsumer and credit cardInternationalOthers
4.77
0.12
(0.04)(0.03)(0.04)
0.01 0.00
(0.04)
4.75
0
0
0
0
0
1
1
1
4Q 17 Manufacturing Commerce Services Building &construction
Consumerfinancing &credit cards
Transport &comms
Other 2Q 18
Movement NPLs by Economic Sector (SARbn)
3.68 3.92 3.99 4.18 4.79 4.87 1.16 1.24 1.29 1.30 1.50 1.48 1.27 1.29 1.33 1.26 1.38 1.21 6.15 6.50 6.65 6.80
7.77 7.66
+13%
0
2
4
6
8
10
12
14
16
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Impairment Allowances (SARbn)
CorporateConsumer and credit cardInternationalOthers
0.26 0.25 0.47
0.14 (0.04)
0.11
0.08 0.17
0.15
0.05
(0.04)
0.12
0.08 0.05
0.08
0.08
0.06
0.11
0.42 0.48
0.69
0.28
(0.01)
0.34
-29%
(0)
0
0
1
1
1
1
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Impairment Charge (SARbn)
CorporateConsumer and credit cardInternationalOthers
NCB Investor Relations2Q 2018 Investor Presentation 45
Financing and advances credit quality (2/2)
Improved NPL ratio and higher NPL coverage
Management Commentary
NPL ratio declined in 2Q 2018 driven by proactive remedial management and write offs of fully provided loans.
NPL coverage was higher at 161% as at 2Q 2018 because of the write offs as well as higher provision stock as a result of IFRS 9 adoption adjustments.
1.1% 1.2% 1.3% 1.5% 1.4% 1.4%
5.3% 5.4% 5.4% 5.1% 5.3% 5.1%
1.6% 1.6% 1.8% 1.9% 1.8% 1.7%
(0)
0
0
0
0
0
0
0
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
NPL Ratios (%)
Domestic International Group NPL ratio
186% 184%169% 164%
192% 185%
86% 86% 87% 90%99% 96%
150% 150% 142% 143%
165% 161%
0
1
1
1
1
1
2
2
2
2
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
NPL Coverage Ratios (%)
Domestic International Group NPL coverage ratio
0.6% 0.6%0.8%
0.7%
-0.1% 0.1%
1.2%1.0% 1.0% 1.1%
1.0%
1.4%
0.6% 0.7% 0.8% 0.7%
0.0%
0.3%
(0)
0
0
0
0
0
0
0
0
0
1Q 17 1H 17 9M 17 FY 17 1Q 18 1H 18
CoR Ratios (YTD %)
Domestic International Group CoR ratio
NCB Investor Relations2Q 2018 Investor Presentation 46
Domestic Financing and advances credit quality
Consumer NPLs stable while Corporate NPLs decreased
Management Commentary
Corporate NPL ratio declined in 1H 2018, in part due to increase in gross financing.
Corporate NPL coverage ratio improved due to write offs and proactive remedial management as well as higher provision stock as a result of IFRS9 adoption adjustments.
1.5% 1.7%1.9%
2.2% 2.1% 2.1%
0.6% 0.6% 0.6% 0.6% 0.6% 0.6%
(0)
(0)
0
0
0
0
0
0
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
NPL Ratios (%)
Corporate Consumer and credit card
174% 168%152% 147%
171% 166%
232%
254% 246% 245%
290%279%
1
1
1
2
2
2
2
2
3
3
3
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
NPL Coverage Ratios (%)
Corporate Consumer and credit card
0.8% 0.7%
0.9% 0.9%
-0.1%
0.1%0.4%
0.6% 0.6%0.5%
-0.2%
0.2%
(0)
(0)
0
0
0
0
0
0
0
1Q 17 1H 17 9M 17 FY 17 1Q 18 1H 18
CoR Ratios (YTD %)
Corporate Consumer and credit card
NCB Investor Relations2Q 2018 Investor Presentation
Saudi Government securities42%
Other investment grade48%
Non-investment grade5%
Unrated5%
Investments by Credit Grade (SARbn)
115 115
0
20
40
60
80
100
120
140
4Q 17 2Q 18
Saudi Arabia58%
GCC and Middle East18%
Europe0%
Turkey3%
Other countries21%
Investments by Geography (SARbn)
Investments trends and compositionStable Investments and quality remains strong; ~90% of the investment portfolio remains Saudi Government and investment grade
Management Commentary
The investment portfolio is built on high quality securities with ~90% being Saudi governments and investment grade.
Since the resumption of KSA government debt issuance, NCB has actively participated in issues of longer term debt securities.
The portfolio has been re-balancing towards floating rate securities in light of the rising interest-rate environment.
47
67 67 63
43 43 46 5 5 5
115 114 115
+0%
0
50
100
150
200
4Q 17 1Q 18 2Q 18
Investments (SARbn)
Equity instruments, Mutual Funds, Hedge Funds and OthersFloating rate securitiesFixed rate securities
115 115
0
20
40
60
80
100
120
140
4Q 17 2Q 18
NCB Investor Relations2Q 2018 Investor Presentation
Due to banks and other financial institutions
13%
Customers' deposits82%
Debt securities issued2%
Other liabilities3%
Total Liabilities Mix (SARbn)
48
Liabilities trends and composition
Higher total liability base and a high deposit mix towards CASA balances (79%)
Management Commentary
Customers’ deposits are the main source of funding and improved in 2Q 2018.
CASA balances account for 79% of customers’ deposits.
Domestically, CASA balances grew (+6%) and lower time deposits (-7%) since 4Q 2017.
309 309 318
49 38 50 10 11 9 380 373 389
+3%
0
100
200
300
400
500
600
700
4Q 17 1Q 18 2Q 18
Total Liabilities (SARbn)
Customers' depositsDue to banks and other financial institutionsDebt securities issuedOther liabilities
380 389
0
50
100
150
200
250
300
350
400
450
500
4Q 17 2Q 18
231 231 244
7 6 7 43 46 40 15 15 13 13 11 13 309 309 318
+3%
0
100
200
300
400
500
600
4Q 17 1Q 18 2Q 18
Customers' Deposits (SARbn)
CASA - DomesticCASA - InternationalTime - DomesticTime - InternationalOthers
NCB Investor Relations2Q 2018 Investor Presentation 49
Liquidity
NCB maintained a strong liquidity profile
Management Commentary
As at 2Q 2018, the financing to customers’ deposit ratio was 83.8% and comfortably below the regulatory guidelines.
HQLA balances risen by 4% compared to 4Q 2017.
The average quarterly LCR improved to 211.9% from 177.3% in 4Q 2017.
Basel III leverage ratio improved to 13.1% from 13.0% in 4Q 2017.
Quarterly averages
102 96 91 95 97 99
163.8% 166.1% 172.5% 177.3%198.6% 211.9%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
0
50
100
150
200
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
HQLA and Average Liquidity Coverage (SARbn/%)
High quality liquid assets (HQLA)
Liquidity coverage ratio (LCR)
81.0% 81.6%84.9%
80.7% 81.8% 83.8%
1
1
1
1
1
1
1
1
1
1
1
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Financing to Customer Deposit Ratio (%)
12.4% 12.2% 12.7% 13.0% 13.5% 13.1%
0
0
0
0
0
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Basel III leverage Ratio (%)
NCB Investor Relations2Q 2018 Investor Presentation
72 73
0
10
20
30
40
50
60
70
80
90
100
4Q 17 2Q 18 Common equity tier 1 capital (CET1)
80%
Additional tier 1 capital (AT1)9%
Tier 2 capital (T2)11%
Total Capital Composition (SARbn) Management Commentary
Capitalization remained strong and comfortably above the regulatory minima.
Pillar I risk weighted assets remained stable in 1H 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.
Common equity Tier 1 capital (CET1) is impacted by one time IFRS9 adjustment adoption.
50
Capital
Capital position comfortably above regulatory minima
Capital ratios are based on Pillar I RWA
57 58 58
7 7 7 8 8 8 72 73 73
+2%
0
20
40
60
80
100
120
140
4Q 17 1Q 18 2Q 18
Capitalisation (SARbn)
Tier 2 capital (T2)Additional tier 1 capital (AT1)Common equity tier 1 capital (CET1)
318 311 315
34 34 35 9 12 12 361 358 361
-0%
0
100
200
300
400
500
600
700
4Q 17 1Q 18 2Q 18
Pillar I Risk Weighted Assets (SARbn)
Credit riskOperational riskMarket risk
14.6%14.1% 14.5%
15.7% 16.2% 16.2%
16.1% 16.0% 16.4%
17.7%18.2% 18.1%18.2% 18.2% 18.5%
20.0% 20.4% 20.3%
0
0
0
0
0
0
0
0
0
0
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18
Capital Ratios (%)
CET1 ratioT1 ratioTC ratio
NCB Investor Relations2Q 2018 Investor Presentation
National Commercial Bank Segmental Review2Q 2018 Results
NCB Investor Relations2Q 2018 Investor Presentation 52
NCB Bank (standalone)Strong 2Q 2018 net income growth 5% resulting from operating income growth and lower impairment charge
Management Commentary
2Q 2018 net income rose 5% YoY driven principally by 3% operating income growth and a 46% improvement in impairment charge.
NSCI for 2Q 2018 improved by 3% YoY due to increase in average earning assets, better margins, and higher CAs growth.
1H 2018 operating expenses increased by 7%, mainly due to VAT, Cost of living allowances and business growth.
Summary Financial PerformanceSAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY %
change 1H 2018 1H 2017 YoY % change
Total assets 426,577 407,869 418,135 +2% 426,577 418,135 +2%
Total operating income 4,056 4,180 3,938 +3% 8,237 8,249 -0%Net special commission income 3,224 3,111 3,122 +3% 6,335 6,166 +3%Fee income from banking services, net 582 568 576 +1% 1,150 1,148 +0%
Operating expenses (1,400) (1,369) (1,203) +16% (2,769) (2,595) +7%Total impairment charge (228) (14) (425) -46% (243) (763) -68%Other non-operating income (expenses), net (17) (24) (13) +34% (40) (26) +55%
Net income for the period 2,411 2,774 2,298 +5% 5,185 4,865 +7%
% of total assets 93.9% 93.2% 92.8% +1% 93.9% 92.8% +1%Cost to income (%) 34.5% 32.7% 30.6% +13% 33.6% 31.5% +7%NCL (%) 0.4% -0.1% 0.7% -49% 0.1% 0.6% -80%ROA (%) 2.4% 2.8% 2.2% +5% 2.5% 2.4% +5%
NIM (%) 3.6% 3.6% 3.4% +4% 3.6% 3.5% +2%
NPL (%) 1.4% 1.4% 1.2% +16% 1.4% 1.2% +16%NPL Coverage Ratio (%) 185% 192% 184% +1% 185% 184% +1%
223 228 242
+9%
0
100
200
300
400
500
600
4Q 17 1Q 18 2Q 18
Financing & advances (SARbn)
287 288 298
+4%
0
100
200
300
400
500
600
700
4Q 17 1Q 18 2Q 18
Customers' deposits (SARbn)
NCB Investor Relations2Q 2018 Investor Presentation 53
Retail Banking
2Q 2018 net income slightly lower
Management Commentary
2Q 2018 net income slightly dropped 1% YoY driven principally by 17% higher operating expenses, which was partially offset by operating income growth of 5%, and a 31% improvement in impairment charges.
NSCI for 2Q 2018 improved by 2% YoY due to a 3% increase in retail financing, better margins and higher current account growth.
Fee income increased by 10% in 2Q 2018 YoY, mainly from financing-related activity.
2Q 2018 operating expenses increased YoY and the cost to income ratio reached 50.8% from 45.4% a year earlier.
Summary Financial PerformanceSAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY %
change 1H 2018 1H 2017 YoY % change
Total assets 113,479 104,445 110,187 +3% 113,479 110,187 +3%
Total operating income 2,070 1,896 1,970 +5% 3,966 3,863 +3%Net special commission income 1,683 1,571 1,642 +2% 3,254 3,203 +2%Fee income from banking services, net 343 310 311 +10% 653 591 +11%
Operating expenses (1,051) (978) (894) +17% (2,028) (1,874) +8%Impairment charge (118) 45 (171) -31% (73) (250) -71%Other income (expenses) (7) (6) (4) +73% (13) (6) +104%Net income 894 956 901 -1% 1,851 1,733 +7%
Cost to income (%) 50.8% 51.6% 45.4% +12% 51.1% 48.5% +5%% of total assets 25.0% 23.9% 24.5% +2% 25.0% 24.5% +2%ROA (%) 3.3% 3.6% 3.3% -2% 3.3% 3.2% +4%
207 209 219
+5%
0
50
100
150
200
250
300
350
400
450
500
4Q 17 1Q 18 2Q 18
Customers' Deposits (SARbn)
89 90 92
+3%
0
50
100
150
200
250
4Q 17 1Q 18 2Q 18
Financing & advances (SARbn)
NCB Investor Relations2Q 2018 Investor Presentation 54
Corporate Banking2Q 2018 net income dropped by 5% due to lower operating income, offset by improvement in impairment charges
Management Commentary
2Q 2018 net income decreased 5% YoY contributed by lower operating income (-14%) and higher operating expenses (+22%) despite improvements in impairments (-54%).
NSCI for 2Q 2018 declined 12% YoY as a result of repayments in 4Q 2017 that reduced the average balance by 5% compared with 2Q 2017.
Fee income decreased by 17% YoY mainly on lower lending and trade fees.
2Q 2018 operating expenses higher by 22% and the cost to income ratio increased by 43% YoY to 30.5%.
The 2Q 2018 impairment charge declined 54% YoY due mainly to a significant recovery and one-time IFRS 9 adoption adjustment to retained earnings permissible by IFRS 9.
Summary Financial PerformanceSAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY %
change 1H 2018 1H 2017 YoY % change
Total assets 147,389 141,465 143,589 +3% 147,389 143,589 +3%
Total operating income 891 1,000 1,039 -14% 1,891 2,279 -17%Net special commission income 745 724 843 -12% 1,469 1,769 -17%
Fee income from banking services, net 201 222 243 -17% 423 510 -17%
Operating expenses (271) (231) (222) +22% (503) (478) +5%Impairment charge (115) 40 (247) -54% (75) (507) -85%Other income (expenses) 34 (47) (5) -823% (13) (8) +65%Net income 539 761 565 -5% 1,300 1,285 +1%
Cost to income (%) 30.5% 23.1% 21.4% +43% 26.6% 21.0% +27%% of total assets 32.5% 32.3% 31.9% +2% 32.5% 31.9% +2%ROA (%) 1.5% 2.2% 1.6% -6% 1.9% 1.8% +2%
124 126 135
+9%
0
50
100
150
200
250
300
4Q 17 1Q 18 2Q 18
Financing & advances (SARbn)
72 71 70
-2%
0
20
40
60
80
100
120
140
160
180
4Q 17 1Q 18 2Q 18
Customers' Deposits (SARbn)
NCB Investor Relations2Q 2018 Investor Presentation 55
Treasury
Strong 2Q 2018 net income growth from operating income
Management Commentary
2Q 2018 net income increased 18% YoY driven by higher operating income (18%).
2Q 2018 NSCI improved 25% YoY due to net interest margin expansion.
Summary Financial PerformanceSAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY %
change 1H 2018 1H 2017 YoY % change
Total assets 157,626 153,884 155,851 +1% 157,626 155,851 +1%
Total operating income 1,096 1,284 932 +18% 2,380 2,107 +13%Net special commission income 797 815 638 +25% 1,612 1,194 +35%Fee income from banking services, net 37 37 23 +64% 74 48 +54%
Other operating income 262 432 272 -3% 695 865 -20%Operating expenses (118) (119) (86) +37% (237) (239) -1%Impairment charge 5 (99) (6) -177% (95) (7) +1282%Other income (expenses) (4) (10) (7) -40% (14) (12) +20%Net income for the period 979 1,056 833 +18% 2,034 1,850 +10%
Cost to income (%) 10.8% 9.3% 9.2% +17% 10.0% 11.3% -12%% of total assets 34.7% 35.2% 34.6% +0% 34.7% 34.6% +0%ROA (%) 2.5% 2.7% 2.1% +19% 2.5% 2.4% +7%
115 114 115
+0%
0
50
100
150
200
250
300
4Q 17 1Q 18 2Q 18
Investments (SARbn)
550
815 797
+45%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
4Q 17 1Q 18 2Q 18
Net Special Commission Income (SARmn)
NCB Investor Relations2Q 2018 Investor Presentation 56
Capital Markets
Robust 2Q 2018 net income growth, driven by assets management and brokerages fees
Management Commentary
2Q 2018 net income increased by 62% YoY due to higher operating income (22%) and improved operating efficiency.
Operating income in 2Q 2018 rose 22% YoY due to higher AUM and brokerages related fee income.
Cost to income improved to 50.1% in 2Q 2018 from 63.2% in 2Q 2017.
Summary Financial PerformanceSAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY %
change 1H 2018 1H 2017 YoY % change
Assets Under Management 143,850 136,780 142,330 +1% 143,850 142,330 +1%Brokerages Volume 48,510 46,990 47,980 +1% 48,510 47,980 +1%
Total operating income 176 228 144 +22% 404 308 +31%AUM Related Fee Income 120 155 98 +22% 120 98 +22%Brokerage Related Fee Income 38 38 31 +22% 38 31 +22%Other fee income 9 29 11 -19% 231 170 +36%
Fee income, net 167 222 140 +19% 389 300 +30%Operating expenses (88) (89) (91) -3% (177) (175) +1%Other income (expenses) (0) 0 1 -100% (0) 1 -100%Net income 88 139 54 +62% 227 134 +69%Non-controlling interests (4) (4) (1) +208% (7) (3) +109%Net income attributed to equity holders 84 135 53 +59% 220 131 +68%
Cost to income (%) 50.1% 39.0% 63.2% -21% 43.8% 56.7% -23%ROA (%) 22.8% 38.3% 15.2% +50% 30.6% 19.3% +59%
129 137 144
+11%
0
50
100
150
200
250
300
4Q 17 1Q 18 2Q 18
Assets Under Management (SARbn)
49 47 49
-1%
0
20
40
60
80
100
120
4Q 17 1Q 18 2Q 18
Brokerages Volume (SARbn)
NCB Investor Relations2Q 2018 Investor Presentation 57
International (in SAR)2Q 2018 net income higher by 26% YoY due to higher operating income, and lower operating expenses
Management Commentary
1H 2018 net income rose by 34% YTD driven by 2% operating income growth, despite a higher NPL coverage.
2Q 2018 operating expenses improved by 9% YoY, and the cost to income ratio improved to 47.8% from 56.7% a year earlier.
10.7% drop YoY in YTD average TRY/SAR rate, and 17.2% decline in the TRY/SAR spot rate since 4Q 2017.
Summary Financial PerformanceSAR (mn) 2Q 2018 1Q 2018 2Q 2017 YoY %
change 1H 2018 1H 2017 YoY % change
Total assets 34,306 36,199 39,395 -13% 34,306 39,395 -13%
Total operating income 427 372 393 +9% 799 782 +2%Net special commission income 347 306 350 -1% 653 666 -2%Fee income from banking services, net 60 62 73 -18% 122 144 -15%
Operating expenses (204) (216) (223) -9% (420) (439) -4%Impairment charge (112) (63) (54) +105% (175) (139) +26%Other income (expenses) 13 24 (17) -178% 38 (22) -274%Net income 124 117 99 +26% 241 182 +32%Non-controlling interests (41) (38) (33) +26% (80) (61) +30%Net income attributed to equity holders 83 78 66 +26% 162 121 +34%
% of total assets 7.6% 8.3% 8.7% -14% 7.6% 8.7% -14%Cost to income (%) 47.8% 58.1% 56.7% -16% 52.6% 56.1% -6%NCL (%) 1.8% 1.0% 0.8% +130% 1.4% 1.0% +42%ROA (%) 1.4% 1.3% 1.0% +40% 1.3% 1.8% -27%
NIM (%) 4.2% 3.4% 3.3% +28% 3.8% 3.3% +15%NPL (%) 5.1% 5.3% 5.4% -5% 5.1% 5.4% -5%NPL Coverage Ratio (%) 96% 99% 86% +11% 96% 86% +11%
26 25 24
-10%
0
10
20
30
40
50
60
4Q 17 1Q 18 2Q 18
Financing and Advances, net (SARbn)
22 21 20
-9%
0
5
10
15
20
25
30
35
40
45
50
4Q 17 1Q 18 2Q 18
Customers' deposits (SARbn)
NCB Investor Relations2Q 2018 Investor Presentation 58
International (in TRY)2Q 2018 net income grew by 39% YoY due to higher operating income and lower impairment charge
Management Commentary
2Q 2018 total operating income increased by 20% YoY, due to higher NSCI by 10%, and income increased by 39% YoY.
2Q 2018 operating expenses higher by 2%, the impairment charge for 1H 2018 increased by 41%.
2Q 2018 cost to income ratio improved to reach 47.8% from 56.0% in 2Q 2017
Summary Financial PerformanceTRY (mn) 2Q 2018 1Q 2018 2Q 2017 YoY %
change 1H 2018 1H 2017 YoY % change
Total assets 41,867 38,202 36,945 +13% 41,867 36,945 +13%
Total operating income 452 378 378 +20% 867 758 +14%Net special commission income 367 311 334 +10% 709 645 +10%Fee income from banking services, net 63 63 70 -10% 133 139 -5%
Operating expenses (216) (220) (212) +2% (456) (422) +8%Impairment charge (118) (64) (52) +130% (190) (134) +41%Other income (expenses) 14 25 (20) -172% 41 (21) -295%Net income 132 118 95 +39% 262 181 +45%Non-controlling interests (44) (39) (31) +40% (87) (60) +45%Net income attributed to equity holders 88 79 64 +38% 175 121 +45%
Cost to income (%) 47.8% 58.2% 56.0% -15% 52.6% 55.7% -5%ROA (%) 1.3% 1.2% 1.0% +30% 1.3% 1.0% +36%
Note: Figures according to IFRS accounting standards
26 26 29
+9%
0
10
20
30
40
50
60
4Q 17 1Q 18 2Q 18
Financing and advances, net (TRYbn)
22 22 24
+10%
(9)
1
11
21
31
41
51
4Q 17 1Q 18 2Q 18
Customers' deposits (TRYbn)
NCB Investor Relations2Q 2018 Investor Presentation
National Commercial Bank Additional Information2Q 2018 Results
NCB Investor Relations2Q 2018 Investor Presentation 60
Additional Information
Please don’t hesitate to contact NCB Group Investor Relations
More information
Download copies of National Commercial Bank’s:
Financial statements
Earnings release
Investor presentation
Financial data pack (Excel)
Visit: http://www.alahli.com/en-us/Investor_Relation
Mr. Abdulbadie Alyafi
Head, Investor Relations
P: +966 12 646 3988
National Commercial Bank
P.O. Box 3555
21481 Jeddah, Kingdom of Saudi Arabia