#1Banque Saudi Fransi Investor Presentation 3Q 2023 البنك السعودي الفرنسي Banque Saudi Fransi#2INVESTOR PRESENTATION 3Q 2023 Contents BSF Profile Operating Environment Strategy ESG Update Financial Performance Outlook & Guidance Segmental Performance Performance Track Record Appendix 3 7 11 19 24 24 44 41 43 43 49 49 52 52 البنك السعودي الفرنسي Banque Saudi Fransi#3INVESTOR PRESENTATION 3Q 2023 BSF Profile البنك السعودي الفرنسي Banque Saudi Fransi#4PROFILE | PRESENCE We are a leading banking group in Saudi Arabia with a strong focus on domestic operations ■ BSF is the successor to Banque de l'Indochine (est. 1949) ■ BSF was then established by Royal Decree No. M/23 as a Saudi Arabian joint stock company in 1977, in accordance with regulations requiring KSA National majority ownership. ■ BSF was previously affiliated with CA-CIB, a wholly-owned subsidiary of Crédit Agricole S.A., which held a 31.1% interest in the Bank, which was fully divested by 2019. 9M 23 Operating Income Diversity (SAR Mn) Branches 82 +0 year-on-year 7,133 Investment Banking and Brokerage 4.7% Treasury 13.4% 0 Retail 37.0% Corporate Total Assets (Billion) 249.9 +7.9% year-on-year 45.0% Headquartered in Riyadh: 82 branches across the Kingdom Domestically systemic bank Universal Bank model: Corporate DNA (82% of our loan book) Full suite of conventional and Islamic products Growing Retail loan book Core focus on the Saudi market Customers' Deposits (Billion) 166.4 +5.4% year-on-year Employees 3,072 البنك السعودي الفرنسي Banque Saudi Fransi +1.0% year-on-year Subsidiaries in KSA: Saudi Fransi Capital Saudi Fransi Insurance Agency Saudi Fransi for Finance Leasing Sakan Real Estate Financing Company Joint ventures in KSA: Insurance with Allianz Market Capitalization (Billion) 44.0 -13.1% year-on-year 4#5PROFILE | SHARE PROFILE AND CREDIT RATINGS Solid market parameters and credit ratings. Share Parameters Closing price (SAR) 52 weeks range (SAR) Shares issued (million) 30 Sep 2023 36.50 32.5 -45.7 1,205 Market capitalization (SARbn) Market capitalization to KSA bank sector Market cap to KSA stock market 44.00 5.21% 0.39% Price to tangible book value Price to earnings (FY 2022) Dividend yield (FY 2022) Others 74.0% Shareholder Composition* (Mn) 80 60 20 0 -20 ༄ ༄ ༄ ༅ ྂ ¥ སྨཱ ॰ སྨཱ ༈༙ 160 140 120 100 1.28x -40 Dec-18 Jun-19 Dec-19 Jun-20 13.1x 4.5% 1,205 Kingdom Holdings 16.2% Foreign 10.1% Alrashed Family 9.8% Sources: Tadawul, Capital IQ | *Substantial shareholders, being persons with a shareholding of 5% or more Total Shareholder Return (TSR) Dec-20 Jun-21 البنك السعودي الفرنسي Banque Saudi Fransi Dec-21 Jun-22 Dec-22 Jun-23 BSF ■KSA bank peers average (excl. BSF) Foreign Ownership (Mn) Standard & Poor's 1,205 0 BBB+ Postive Moody's A2 Stable. Saudi 89.9% Fitch outlook outlook A- Stable outlook | 5#6PROFILE | MANAGEMENT Experienced and dynamic executive management team Bader Alsalloom Chief Executive Officer ■ BSF: appointed Apr-21 ■ Saudi Investment Bank: Deputy GM Corporate Banking 2 years ■ SABB: Deputy GM Comm. Bnk; 15 years Majed Alsadhan Head of Wholesale Banking ■ BSF: appointed Head of WB Nov-22 Previously over 4 years with BSF as head of Corporate Banking Central Region and Head of Corporate Banking Previously GIB, SABB and SAMBA Zuhair Mardam Chief Treasury and Investment Officer ■ BSF: appointed CTIO Oct-22 ■ BSF: Head of Global Markets Group 3 years; 18 years with BSF May Al-Hoshan Chief Human Capital Officer ■ BSF: appointed Aug-18 ■ Alawwal: Human Resources GM ■ NCB Capital: Head of HR Ramzy Darwish Chief Financial Officer ■ BSF: appointed CFO Dec-22 ■ SNB: 17 years where positions included Head of Treasury, Head of Principal Strategies and Investment, and Head of ALM Mohammed Abdulrahman Alsheikh Head of Retail Banking BSF: appointed Jul-18 Al Rajhi Bank: AGM Retail Banking in 2017 ■ ANB: 6 years SABB: 3 years Thamer M. Yousef Chief Operations Officer BSF: appointed COO Dec-18 ■ SABB: Head of Information Services SAMBA:10 years Abdulmohsen Alrayes Chief Audit Officer BSF: appointed CAO Aug-17 34 years banking experience ■ SABB: Head of Retail operations ANB: Head of Internal Audit Sander Aardoom Deputy Chief Financial Officer ■ Business Lease Group B.V.: CFO & Board member: 3 years ■ING: CFO of Transformation, Technology and Operations, CFO roles in Australia, Romania and Czech Republic: 18 years Mutasim Mufti Chief Risk Officer ■ BSF: appointed CRO Jan-21 ■ BSF: Regional Corporate Banking Group Head for 10 years, Deputy Corporate Banking Group Head for 4 years, Deputy Chief Risk Officer for 3 years Abdallah Alshaikh Head of Legal & Governance ☐ BSF: appointed in 2018 ■ 15 years relevant experience ■ SAMBA: Head of Legal & Corporate Secretary ■ SAMA/CMA: legal positions Yasser Al-Anssari Chief Compliance Officer ■ BSF: appointed CCO in 2021 GIB: Compliance Group Head Al Rajhi Bank: Global Chief of Compliance JPMorgan Chase Riyadh: Head of Compliance & AML البنك السعودي الفرنسي Banque Saudi Fransi 16#7INVESTOR PRESENTATION 3Q 2023 Operating Environment البنك السعودي الفرنسي Banque Saudi Fransi#8OPERATING ENVIRONMENT | ECONOMIC CONDITIONS The macro-economic environment is characterized by rising rates, supportive domestic activity, volatile oil and moderating stock prices. Brent Oil Price / Barrel (USD) ■ Oil prices rose to USD 120/bl in 3Q 2022, following Ukraine-Russia disruption, but declined to USD 75/bl in 2Q 2023 before rising to USD 96/bl in 3Q 2023. ■ Interbank rates increased in 2022 and 9M 2023 from 11 hikes totaling 500bps in the SAMA repo and reserve repo rates to 6.00% and 5.50% respectively. ■ The Saudi Arabia purchasing managers index (PMI) has remained in expansionary territory throughout 2022 and 2023 to date. ■ The Saudi Arabian stock market (Tadawul) increased 6% YTD, while the Banks index declined 10% YoY, both following a declining trend during 2022. KSA PMI (non-oil private sector) 57.2 +1% 96 +16% Tadawul Index 11,056 البنك السعودي الفرنسي Banque Saudi Fransi +6% 120 13,090 107 11,523 89 96 11,405 10,478 10,590 11,459 11,056 83 79 75 +29% QoQ -4% QoQ 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 SAIBOR Trend (%) 5.80% 5.49% 5.66% 5.80% Tadawul Banks Index 10,373 -10% 56.8 57.0 56.6 56.9 58.7 59.6 57.2 3.13% 4.92% 5.02% 5.14% 14,588 12,845 12,636 2.41% 11,542 IIIII 2.04% 1.36% -4% 2.38% QoQ 1.67% 1.01% 0.51% IIIII 10,768 11,278 10,373 -8% QoQ 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 1H 22 9M 22 FY 22 1Q 23 1H 23 9M 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 -O-SOFR/LIBOR: USD 3M (avg) -- SAIBOR: SAR 3M (avg) Sources: IMF, SAMA, EIA, HIS Markit, Tadawul 18#9OPERATING ENVIRONMENT | ECONOMIC OUTLOOK Saudi Arabia's real GDP growth is forecast at 0.8% in 2023 due to lower oil production ■ Real GDP for Saudi Arabia is expected grow by 0.8% in 2023 following 8.7% expected growth in 2022 due to lower oil production. ■ Interest rates arises are expected to tail off during the remainder of 2023; average 3M SAIBOR forecast at 5.93% in 2023 and 5.76% in 2024 compared with 3.13% in 2022. Real GDP growth (%) 0.76% 8.74% Brent Oil Price / Barrel (USD) 80 البنك السعودي الفرنسي Banque Saudi Fransi 83 80 80 77 76 $ O 3.98% 4.23% 0.81% 0.16% O 2021 SAIBOR: SAR 3M (avg) (%) 5.93% 3.92% 0.76% 2021 2022 2023E 2024E 2025E 2021 2022 2023E 2024E 2025E Inflation (%) 2.47% 5.93% 5.76% 5.15% 3.06% 3.13% 5.21% 5.04% 4.37% 2.38% 2.47% 2.47% 2.23% 2.00% 5.10% O 2022 2023E 2024E Current A/C Balance (%) 5.95% 13.60% 5.95% 5.40% 4.41% 2025E 2021 2022 2023E 2024E 2025E 2021 2022 2023E 2024E 2025E -O-SOFR/LIBOR: USD 3M (avg) SAIBOR: SAR 3M (avg) Sources: SAIBOR historical rates - SAMA | SAIBOR/SOFR forecasts - BSF Treasury | Oil price historical prices - EIA | GDP, oil price, inflation & current A/C balance - IMF 19 6#10OPERATING ENVIRONMENT | KSA BANKING SECTOR The Saudi banking sector is well positioned for both resiliency and growth البنك السعودي الفرنسي Banque Saudi Fransi Bank Credit (SAR Bn) 2,520 Capitalization: T1|CAR (%) 18.5% 20.1% NPL Ratio (%) 1.7% +12% 20.3% 19.9% 19.9% 20.1% 19.4% 2,349 2,520 2,059 1,783 1,443 1,552 2.2% 1.9% 1.9% 1.8% 18.7% 18.1% 18.2% 18.4% 18.5% 1.7% о +7% YTD 2018 2019 2020 2021 2022 Aug-23 2019 2020 2021 2022 2Q 23 2019 2020 2021 2022 2Q 23 -0-CAR -O-T1 Ratio Bank Deposits (SAR Bn) 2,466 +9% Liquid Assets To Total Assets (%) 22.6% Profitability: ROE|ROA (%) 12.7% 2.2% 25.4% 26.8% 24.7% 2,466 22.8% 22.6% 12.5% 12.7% 2,295 11.9% 1,674 1,796 1,943 2,104 10.8% 8.6% +7% YTD 1.8% 1.2% 1.8% 2.1% 2.2% 2018 2019 2020 2021 2022 Aug-23 2019 2020 2021 2022 2Q 23 2019 2020 2021 2022 1H 23 -0- ROA -0- ROE Source: SAMA | 10#11INVESTOR PRESENTATION 3Q 2023 Strategy البنك السعودي الفرنسي Banque Saudi Fransi#12STRATEGY | CONTEXT We are refocusing and simplifying our existing strategy for an evolving external environment and an optimized internal structure 2019 ■ Sudden rate declines ■ Covid-19 ■Increased digital adoption Rising rate environment ■ Historic increase in levels of inflation Geopolitical tensions Recessionary fears ■ Accelerating Vision 2030 strategic investments 2020 2021 BSF Management Changes 2022 البنك السعودي الفرنسي Banque Saudi Fransi 2023 2024 2025 5-year 'LEAP' Comprehensive strategy to re- imagine and modernize the bank; comprising 163 strategic initiatives and targeted at growing market share Strategy Refresh Strategy refresh with 102 initiatives to align to post- Covid market realities, growing with market in core segments while improving operating model and digital propositions Strategy Refocus Refocused and simplified strategy to 10 key focus areas, accounting for an evolving market, focusing on our core strengths, including SFL and SFC for the first time, and with balanced targets on profitability and market share |12#13STRATEGY | SUMMARY In 1Q 2023 we refocused and simplified our existing strategy to 10 vital initiatives for an evolving external environment and internal structure Technology Infrastructure Upgrade Wholesale Banking Private Banking Expand FIG & MNC Coverage Expand product suite 1H 2024 Priority Rebranding Revamp GTS Experience centric rewards Personal Banking Scale up financing and leasing Scale up in affluent Provide superior daily banking Leverage opportunities in capital markets Wholesale, Private & Personal Banking and Saudi Fransi Leasing initiatives are continuation of existing Strategy with refinement on the scope, objectives and initiatives for 2023 Strategy Refocus | Saudi Fransi Capital initiatives are new ones that have been defined as part of the 2023 Strategy Refocus exercise Saudi Fransi Leasing Saudi Fransi Capital البنك السعودي الفرنسي Banque Saudi Fransi | 13#14STRATEGY | STRATEGIC FRAMEWORK Our strategy is driven by ambitious aspirations for market position, profitability and customer experience Strategic Goals Position: Be among the top players in our target segments (Top 3 Market Share) ()) ())))) Profitability: Focus on profitability and return on capital (ROE > COC) Strategic Pillars البنك السعودي الفرنسي Banque Saudi Fransi Customer Experience: Continued commitment to leading CX (NPS #1) Wholesale Banking Personal Banking Private Banking Saudi Fransi Leasing Solidify market position Leverage segmentation and synergies Reinforce market leadership Top 3 in Wholesale Banking by ROE Top 2 in Affluent Banking by market share #1 in Private Banking by market share Risk Digital 2.0 Strategic Enablers Technology Treasury Saudi Fransi Capital Expand in new market segments Top 2 in Financing & Leasing by market share Seize existing opportunities and grow Top 3 in Investment Banking by Net Income Customer Experience & Brand Organizational Effectiveness & People | 14#15STRATEGY | STRATEGIC PILLARS Strategic initiatives are built on our core business strengths and opportunities Strategic Goals Wholesale Banking Personal Banking Private Banking Saudi Fransi Leasing ()))))) })) البنك السعودي الفرنسي Banque Saudi Fransi Saudi Fransi Capital )) }))))) Strengths Opportunities ▷ Strong corporate relationships ▷ Corporate & project finance DNA ▷ X-sell, strong value proposition ▷ Vision 2030 opportunities ▷ Address imbalance in market leadership level in coverage (e.g. FIG) & product (e.g. GTS) ▷ Strengthen position as a premier wholesale bank Objectives ▷ Boost fee income, expand offerings to Fls Focused Initiatives GTS revamp Expand FIG&MNC coverage Solid positioning & strong brand in affluent segment ▷ Deep knowledge of affluent clients' needs ▷ Become bank of choice in affluent ▷ Optimize mass retail to enhance margins ▷ Improved segmentation for affluent customers ▷ Serving of non-affluent through streamlined channels Scale up affluent Provide superior daily banking ▷ Leading market position ▷ Strong front-line staff ▷ Regulatory advantage in non- bank personal finance market ▷ Legacy strength in auto finance ▷ Organic market growth ▷ Multi-family office & geographic expansion of investment opportunities ▷ Enhanced product portfolio ▷ Distinctive experience rewards system Broaden product suite Experience-centric rewards ▷ PF, home loans, micro finance ▷ Underpenetrated market ▷ Digitalization Broaden product range ▷ Rebranding ▷ Expand to new segments Digital channels acceleration Product diversification Brand repositioning ▷ Technical talent ▷ Proved excellence and trust ▷ Growth of capital markets ▷ Traditionally managed as a silo: opportunity to leverage with affluent & PB ▷ Focus on collaboration to provide unified suite of wealth management with PBG ▷ Capitalize on Vision 2023 activities in construction sector Synergize wealth management Broaden advisory mandate Attractive investment solutions Strategic Enablers 55 888 888 Wholesale, Private & Personal Banking and Saudi Fransi Leasing initiatives are continuation of existing Strategy with refinement on the scope, objectives and initiatives for 2023 Strategy Refocus | Saudi Fransi Capital initiatives are new ones that have been defined as part of the 2023 Strategy Refocus exercise 888 ---- | 15#16STRATEGY | STRATEGIC PILLARS Strategy execution commenced across the various business pillars with positive momentum in progress البنك السعودي الفرنسي Banque Saudi Fransi Wholesale Banking Personal Banking Private Banking Strategic Goals Solidify market position Leverage segmentation and synergies Reinforce market leadership Focused Initiatives GTS revamp Expand FIG&MNC coverage Scale up affluent Provide superior daily banking Broaden product suite Experience-centric rewards Q3: 56% Q2: 51% 65% Progress Summary Key Highlights Good advancements in the implementation of strategic initiatives ▷ Enhanced the operating model for Global Transaction Banking & customer experience ▷ Finalized scope of cash mgmt. digital solution ▷ Established MNC Unit ▷ Expanded FI & govt. lending 33% Modest progress in affluent segmentation model & value strategy implementation ▷ Kickstarted the affluent strategy implementation ▷ Launched the Omnichannel v2 staff pilot in (digital solution) ▷ Initiated Wholesale partnership model with personal banking 78% Significant strides made in broadening the product suit and enhancing clients' experience ▷ Closed key investment offerings with Saudi Fransi Capital ▷ Secured major deals under a special private banking finance program ▷ Introduced off-plan product ▷ Executed VIP experience events J JB Expand in new market segments جيبى Digital channels acceleration Product diversification Brand repositioning 81% Significant progress in personal financing digitization, digital IT capabilities and SFL repositioning ▷ Introduced JB's new digital personal loan offerings ▷ Expanded personal loans ▷ Launched JB's brand ▷ Expanded JB's reach by initiating cross-selling across BSF branches. Saudi Fransi Capital Seize existing opportunities and grow Synergize wealth management Broaden advisory mandate Attractive investment solutions 37% Modest progress in the execution which was affected by complexities of the initiatives ▷ Finalized SFC's wealth management collaboration strategy ▷ Kicked off wealth mgmt. collaboration implementation initiatives Next steps ▷ Expand digital features & product rollouts ▷ Extend Fl geographical reach ▷ Focus on Increased coverage across FIG segments ▷ Continue affluent initiatives implementation to 2H 2024 ▷ Finalize revamping key branches by 2H 2024 ▷ Institutionalize partnerships ▷ Rollout products and services ▷ Expand RM advisory roles to provide specialized client ▷ Foster new partnerships Wholesale, Private & Personal Banking and Saudi Fransi Leasing initiatives are continuation of existing Strategy with refinement on the scope, objectives and initiatives for 2023 Strategy Refocus | Saudi Fransi Capital initiatives are new ones that have been defined as part of the 2023 Strategy Refocus exercise ▷ Expand digital features & product rollouts ▷ Enhance user experience ▷ Introduce credit card offerings ▷ Roll out collaboration initiatives to 3Q 2025 ▷ Invest in human capital and foster talent development Strengthen real estate division | 16#17STRATEGY KEY MILESTONES In Q3 2023 we successfully realized two pivotal strategic milestones جيبي JB New Brand JB, formerly known as SFL, has strategically pivoted to diversify its offerings, targeting distinct market segments. This strategic realignment was underpinned by a robust marketing campaign in 3Q 2023. We got your solution We provide you with multiple financial solutions that make your life easier, simplify your financial planning, and get to your pocket as quickly as possible. Sur Multifamily Office Introducing the Sur Multifamily Office, a strategic initiative by BSF 100% subsidiary of BSF to cater the needs of our BSF UHNWIS and HNWIS clientele. Consult our team↓ +10 جيبي Your products 9 Personal Finance C 10,000 SAR Dashboard Dear Maha, nion ane yes again 32,500 45,000 Discover products Convenient البنك السعودي الفرنسي Banque Saudi Fransi Cars Cash Pricing About Contact En | € Get a Call &= SUR Personal Finance Countdown 24hr 10,000 SAR | 17#18STRATEGY | STRATEGIC ENABLERS Good progress in the implementation of the four key strategic programs. across the IT & Technology and rebranding priorities Description Key Highlights Integrated Corporate Portal New corporate platform supporting trade & supply chain services, and expanded liquidity and cash management solutions and services ▷ Completed design stage ▷ Finalized cash management scope ▷ Adoption of new branding guidelines ▷ Finalized customer experience enhancements Technology Infrastructure Upgrade Omnichannel New high performance retail platform providing robust digital banking service and enhanced customer experiences and journeys ▷ 50 Staff in Omni pilot by October 31 ▷ Released Omni v2 to staff pilot ▷ Implemented 48% of counter fraud framework controls ▷ Fixes & security controls on track Core Banking System Bank-wide core banking system to enable best-in-class customer experience with leading operational efficiency ▷ Significant progress on 2nd phase of second rollout ▷ Completed 3rd phase re-planning exercise ▷ Ongoing bank-wide change management activities البنك السعودي الفرنسي Banque Saudi Fransi Rebranding Recreating BSF brand identity to differentiate the bank, enhance our connection with clients and improve our market position ▷ New brand applied across branches & digital streams, including subsidiaries - BSF Capital ▷ BSF logo has been successfully registered 9M 2023 Progress ▷ Phase I Back end: build in progress ▷ Regulator approval has been initiated ▷ Phase II Front end: finalized business requirements ▷ Ongoing development and design of features required for the public launch ▷ Executed several rounds of migration testing to ensure smooth readiness for public 1Q 2024 go-live. ▷ Initiated communications and marketing planning ▷ 2nd Phase: testing activities finalized, friends & family (200+ participants) ▷ Pilot implementation will complete in 2H 2023 ▷ Completed brand strategy & guidelines ▷ Concluded design for digital channels ▷ Brand awareness sessions ▷ Finalized go-to-market strategy ▷ Training 4Q 2023 ▷ Phased roll out after 2H 2024 2023 & Beyond ▷ Planned to be launched in 1Q 2024 ▷ Development activities for 3rd Phase (Corporate) will continue throughout 2023 onwards ▷ Finalize physical collateral mass production and distribution ▷ Digital channels release in iterations ▷ Go-to-market execution ▷ Go-Live in 1H 2024 | 18#19INVESTOR PRESENTATION 3Q 2023 ESG Update البنك السعودي الفرنسي Banque Saudi Fransi#20ESG | MATERIALITY MATRIX The BSF materiality matrix defines the most significant ESG topics to the organization and its stakeholders Most Important البنك السعودي الفرنسي Banque Saudi Fransi 1 Governance, Accountability, Transparency and Ethics 2 Financial and Economic Performance 3 Risk Management 4 Responsible Customer Relations and Satisfaction 5 Data Privacy and Security 6 Financial Inclusion and Accessibility Very Important 7 Digitalization 9 Diversity and Inclusion 10 8 Employee Engagement, Wellbeing and Satisfaction Sustainable Lending and Investment 11 Talent Attraction, Retention and Development 12 Community Investment Important 13 Nationalization 14 Environmental Management 15 Responsible Procurement Significance to stakeholders 15 13 14 6 7 10 11 8 12 Significance to organization 1 2 3 5 4 6 | 20#21ESG | ESG FRAMEWORK The ESG Framework consists of 5 pillars and 15 material issues, and was approved by the Board in November 2022 البنك السعودي الفرنسي Banque Saudi Fransi Exemplifying the Highest Ethical and Governance Standards 1 Governance, Accountability, Transparency and Ethics 3 Risk Management 5 Data Privacy and Security انكا Accelerating Sustainable Economic Growth 2 Financial and Economic Performance 10 Sustainable Lending and Investment 15 Responsible Procurement Creating a Thriving Workplace 8 Employee Engagement, Wellbeing and Satisfaction 9 Diversity and Inclusion 11 Talent Attraction, Retention and Development 13 Nationalization Serving our Clients 4 Responsible Customer Relations and Satisfaction 6 Financial Inclusion and Accessibility 7 Digitalization Protecting our communities 12 Community Investment 14 Environmental Management 21 | 21#22ESG | ESG GOVERNANCE A comprehensive ESG governance and policy framework was implemented in November 2022, with Board oversight BSF Board of Directors Executive Committee Audit Committee Board Strategy Committee ESG Board Committee Abdullatif Alothman Chairman Rayan Fayez Member Bader Al Issa Member البنك السعودي الفرنسي Banque Saudi Fransi Board Risk Committee Nomination & Remuneration Committee ESG Board Committee: supports the Board of Directors in achieving its targets in terms of ESG pillars to support BSF's ongoing commitment to sustainability matters which are an integral part of enhancing the Banks's long-term shareholder value. ESG Management Committee ESG Management Committee: represents and assists the ESG Board Committee in fulfilling its oversight responsibilities relating to ESG related matters Head of Corporate Governance & Chief Financial Officer ESG Chief strategy & Group Digital Officer Chief Human Resources Officer Chief Risk Officer Head of Wholesale Banking Group Treasurer Head of Group Marketing & Corp. Comms. Corporate Governance & ESG ESG Champions Division Head of Legal & Governance, Corp. Secretary ESG champions: Nominated champions across all groups/divisions/departments of BSF who are responsible for implementation 122#23ESG | ESG PROGRESS & ROADMAP BSF is making good progress along its ESG roadmap ESG Progress ESG Governance & Framework 1 ESG Board & Management Committees appointed in November 2022 Materiality matrix and framework approved in November 2022 2 3 ESG Policy Framework approved & published in March 2023 Climate Change Greenhouse gas emissions scope 1 and 2 have been calculated Climate risks and opportunities assessment completed ESG Reporting Inaugural 2020 ESG report published 2021 ESG report to be published imminently 2022 ESG report under review ESG Ratings MSCI ESG Rating BBB Medium Risk 23/05/2023 البنك السعودي الفرنسي Banque Sustainalytics ESG Rating 28.2 Saudi Fransi Medium Risk 17/05/2023 | 23#24INVESTOR PRESENTATION 3Q 2023 Financial Performance البنك السعودي الفرنسي Banque Saudi Fransi#25HIGHLIGHTS | FINANCIAL PERFORMANCE Improved profitability in 9M 2023 from NIM expansion and balanced asset growth البنك السعودي الفرنسي Banque Saudi Fransi BALANCE SHEET Loans & Advances ☐ ■ High quality loan growth of 10% YoY driven by 11% commercial and 7% consumer lending growth. Deposit growth of 5% YoY, mainly from IBDs. INCOME STATEMENT ■ 24% top-line growth from 28% NII growth. ■ NIM expansion of +65bps YoY to 3.63% on rising rates. ■ Net income grew 27% as income growth partly offset by increased impairments. ASSET QUALITY ■ Improvement in NPL and coverage ratios ■ Increased COR from previous migration of isolated pockets in the commercial book and coverage enhancement. 174.7 +10% year-on-year SAR Billion Operating Income 7,133 SAR Million NPL Ratio 1.97% +24% year-on-year -76 bps year-on-year T1 Ratio Investments 46.4 SAR Billion NIM Customers' Deposits +7% year-on-year 166.4 +5% SAR Billion year-on-year Net Income 3.63% +65 bps year-on-year 3,395 SAR Million NPL Coverage Ratio 140% LCR +23 ppts year-on-year CAPITAL & LIQUIDITY Capital, funding and liquidity remain strong and comfortably within regulatory limits. Decline in NIBD ratio from shift to IBDs in ☐ rising rate environment. 18.73% +4 bps year-on-year 171% -14 ppts year-on-year Cost of risk +27% year-on-year 0.98% +23 bps year-on-year NIBD % of Total Deposits 55.9% -9.0 ppts year-on-year 125#26FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Balance sheet growth driven by lending, funded by IBD growth. ■ Growth in total assets of 8% YTD, mainly driven by healthy 10% loan growth. ■ Liabilities grew by 9% during 9M 2023 from 6% deposit growth, a 22% increase in interbank and SAMA borrowings, and an 81% rise in debt securities. ■ Total equity increased 1% YTD due to retained earnings generation, partly offset by reserve movements. Total Assets Movement (SAR Bn) 249.9 +8% البنك السعودي الفرنسي Banque Saudi Fransi 232.1 15.7 0.8 249.9 0.3 1.9 SAR (Mn) Cash & SAMA balances Due from banks Investments Loans & advances Other assets Total assets 3Q 2023 2Q 2023 A% 4Q 2022 A% (0.8) 10,483 10,084 +4% 11,326 -7% 5,127 3,795 +35% 4,795 +7% 46,390 49,178 -6% 44,518 +4% Total assets 4Q 22 Cash & SAMA balances Due from banks Investments Loans & advances Other assets Total assets 3Q 23 174,681 169,695 +3% 159,012 +10% Due to banks & SAMA 13,182 249,862 20,540 12,967 +2% 12,428 +6% Total Liabilities Movement (SAR Bn) 245,718 +2% 232,078 +8% 22,766 -10% 16,770 +22% 210.6 Customers' deposits 166,367 161,165 +3% 157,592 +6% Debt securities & term loans 8,175 8,233 -1% 4,515 +81% +9% Other liabilities 15,497 13,859 +12% 14,455 +7% 12.0 3.7 1.0 210.6 Total liabilities 210,580 206,022 +2% 193,333 +9% 193.3 3.8 Share capital 12,054 12,054 +0% 12,054 +0% (3.3) Retained earnings 11,855 11,805 +0% 9,768 +21% Other reserves 10,375 10,837 -4% 11,924 -13% Tier 1 Sukuk 5,000 5,000 +0% 5,000 +0% Total liabilities 4Q 22 Due to banks, other FI & SAMA NIBD IBD Debt securities & term loans Other Total liabilities 3Q 23 Total equity 39,283 39,696 -1% 38,745 +1% | 26#27FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income grew 27% YoY from strong NII growth, partly offset by increased operating expenses and impairments ■ Net income for 9M 2023 grew 27% YoY to SAR 3,395mn from 24% growth in operating income, partly offset by 13% growth in operating expenses and a 34% rise in the impairment charge. Quarterly net income similarly increased 30% YoY and 16% QoQ to SAR 1,245mn. Net Income Movement (SAR Mn) 3,395 SAR (Mn) 1,319 39 9M 2023 9M 2022 A% 3Q 2023 3Q 2022 A% 2,672 +27% البنك السعودي الفرنسي Banque Saudi Fransi 3,395 (245) (297) (93) Net interest income 5,967 4,648 +28% 2,068 1,717 +20% Non-interest income 1,166 1,126 +3% 400 366 +9% Operating income 7,133 5,774 +24% 2,468 2,083 +18% Net income 9M 22 Net interest income Non-interest income Operating expenses Impairment charge Zakat Net income 9M 23 Operating expenses (2,176) (1,930) +13% (740) (678) +9% Net operating income before Operating Income (SAR Bn) 4,957 3,844 +29% 1,728 1,405 +23% impairments Impairment charge (1,181) (884) +34% (345) (348) -1% 2.47 Net Operating Income Before Impairment Charge (SAR Bn) 1.73 Net income before zakat 3,776 2,960 +28% 1,383 1,057 +31% Zakat (381) (288) +32% (137) (96) +43% +18% +23% Net income 3,395 2,672 +27% 1,245 961 +30% 2.24 2.32 2.35 2.47 1.73 2.08 1.82 1.87 1.41 1.52 1.61 1.62 Operating Expenses Impairment Charge 1.22 1.22 +5% QoQ +6% QoQ 740 +9.2% year-on-year 345 -1.0% year-on-year SAR Million SAR Million 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 | 27#28FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy and balanced 10% loan growth during 9M 2023 Total Loans & Advances (SAR Bn) 174.7 +10% 169.7 174.7 159.0 30.4 31.6 29.5 129.5 139.3 143.1 +3% QoQ Commercial Loans Movement YTD (SAR Bn) 143.1 +11% 3.8 1.7 0.7 7.9 129.5 (0.5) (0.5) Commercial 0.5 143.1 81.9% 4Q 22 2Q 23 3Q 23 Commercial Commerce Services Financials Manufacturing Agriculture Contracting Other Commercial 4Q 22 3Q 23 ■Commercial Consumer Other 22.7% ■ Total loans & advances grew 10% during 9M 2023 from both consumer and commercial lending growth. Commercial loans grew 11% during 9M 2023, which was broad-based across sectors. ■ Consumer loans grew 7% YTD mainly from growth in mortgages (+3%), personal loans (+11%) and auto loans (+10%). Consumer Loans Movement YTD (SAR Bn) Utilities 9.7% 31.6 Contracting 11.4% +7% 1.1 29.5 0.5 0.4 0.1 31.6 Auto loans 14.7% البنك السعودي الفرنسي Banque Saudi Fransi Loans & Advances Composition (SAR Mn) 174,681 Consumer 18.1% Commercial Loans Composition (SAR Mn) 143,099 Commerce 25.9% Services 16.4% Manufacturing 14.0% Consumer Loans Composition +3% +11% +10% +15% Consumer 4Q 22 Mortgages Personal loans Auto loans Credit Cards Consumer 3Q 23 Personal loans 34.6% (SAR Mn) 31,582 Credit Cards 2.1% Mortgages 48.7% | 28#29FINANCIAL PERFORMANCE | INVESTMENTS 4% Increase in the investment portfolio in 9M 2023 Investments increased 4% YTD reflecting increased investment in longer-term fixed- rate Government securities. ■ The investment portfolio is of high quality with a significant portion being Saudi Government and investment grade. Investments (SAR Bn) 46.4 +4% 4.8 44.5 Investments Movement by Type (SAR Bn) -2.7 46.4 +4% 0.0 -0.2 البنك السعودي الفرنسي Banque Saudi Fransi Investments Composition by Type (SAR Mn) 46,390 Equities 0.8% 46.4 Floating-rate 13.6% Investments 4Q 22 Fixed-rate Floating-rate Equities Other Investments 3Q 23 49.2 3.2 44.5 46.4 44.5 -6% QoQ Investments Movement by Sector (SAR Bn) 46.4 +4% -1.0 -0.4 Financials 15.8% 46.4 4Q 22 2Q 23 3Q 23 Investments Government Corporate Financials Investments 4Q 22 3Q 23 Investments excludes Investment in Associates Corporate 12.0% Investments Composition by Sector (SAR Mn) 46,390 Other 0.8% Fixed-rate 84.8% Government 72.2% 129#30FINANCIAL PERFORMANCE | CUSTOMERS' DEPOSITS 6% growth in deposits YTD from increased IBDs ☐ Deposits grew 6% during 9M 2023 from increased IBDs. ☐ IBD increased 20% YTD from 50% growth in Corporate, partly offset by a 28% decline in Retail mostly in Private Banking. البنك السعودي الفرنسي Banque Saudi Fransi Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) 166.4 12.0 157.6 +6% ■ NIBD's declined 3% YTD due to a 19% decline in Corporate which was partly offset by 9% growth in Retail, mostly raised from the private banking franchise. 157.6 161.2 166.4 As of 30 September 2023, 55.9% of deposits were non- interest bearing, the 9.0ppts YoY decline is reflective of the rising rate environment. 96.3 95.7 93.0 80.3 +3% QoQ 61.3 65.5 73.4 77.3 NIBD % of Total Deposits (%) 55.9% 4Q 22 2Q 23 3Q 23 IBD ONIBD Interest Bearing Deposits (SAR Bn) 73.4 +20% 166.4 +6% 166.4 -3.3 90.9 75.5 Customers' deposits 4Q 22 IBD NIBD Customers' deposits 3Q 23 Retail Corporate Non Interest Bearing Deposits (SAR Bn) 93.0 -3% 63.6% 64.9% 61.4% 61.1% 57.0% 59.4% 55.9% 72.0 73.4 61.0 61.3 65.5 95.8 96.9 102.5 96.3 95.4 95.7 93.0 54.9 55.3 34.7 37.4 45.4 42.9 41.4 37.0 34.8 49.2 37.4 56.1 37.8 44.9 37.5 49.2 +12% -3% QoQ 61.1 59.5 57.1 53.3 54.0 58.8 58.2 QoQ 17.2 16.1 17.8 24.0 22.8 16.2 17.3 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Retail Corporate Retail Corporate Note: Non-interest-bearing deposits are taken as the sum of Demand and Other deposits. Factually, some of these deposits are in fact interest-bearing, though their average cost is generally nominal. | 30#31FINANCIAL PERFORMANCE | NET INTEREST INCOME NII growth of 28% from margin expansion and earning assets growth ■ NII for 9M 2023 grew 28% YoY to SAR 5,967mn from margin expansion and 6% growth in (simple) average earning assets. ■ Interest income rose 72% YoY to SAR 9,712mn in 9M 2023, while funding costs rose 3.7x to SAR 3,744mn. 4,648 Net Interest Income (SAR Mn) 5,967 +28% 5,967 4,648 442 76 Net Interest Income Movement (SAR Mn) 5,967 +28% 4,296 البنك السعودي الفرنسي Banque Saudi Fransi 5,967 (760) (777) (1,958) Net interest income 9M 22 Investments Cash, SAMA & interbank Loans, gross Cash flow hedging impact Due to banks & debt Customers' deposits Net interest income 9M 23 5,658 Interest Income (SAR Mn) 9,712 +72% 9,712 +72% 1,010 QoQ 9M 22 9M 23 9M 22 9M 23 9M 22 Interest Expense (SAR Mn) 3.744 +271% 3,744 +271% QoQ 9M 23 131#32FINANCIAL PERFORMANCE | NET INTEREST MARGIN Improved loan yields from higher rate environment drive margin expansion ■ The NIM increased 65bps YoY due to improved loan yields, partly offset by the higher funding costs and the hedging impact. The quarterly NIM improved 50bps YoY and 9bps QoQ to 3.66%. Funding costs increased by 200bps YoY to 2.77% in 9M 2023. YTD Net Interest Margin Trend (%) 3.63% 5.69% 5.77% 5.91% 3.16% 3.36% 3.64% 3.96% 3.65% 3.62% 3.63% 0.36% 2.86% 2.90% 2.99% 3.06% 0.55% 0.77% 2.99% 0.24% 0.04% 1.06% 2.46% 2.61% 2.77% SAIBOR Trend (%) Net Interest Margin Movement (%) 3.63% 2.46% +65 bps البنك السعودي الفرنسي Banque Saudi Fransi 3.63% -0.47% -0.47% -1.16% 1Q 22 1H 22 9M 22 -O-Interest yield FY 22 1Q 23 1H 23 9M 23 --Cost of funding. Net interest margin Investments Cash, SAMA & interbank Loans Cash flow hedging impact Due to banks & debt Customers' deposits Net interest margin 9M 22 9M 23 Net interest margin Quarterly Net Interest Margin Trend (%) Average Interest Earning Assets (SAR Bn) Average Interest Bearing Liabilities (SAR Bn) 5.80% 3.66% 219.5 180.9 5.49% 5.66% 5.80% +6% +3% 3.65% 3.57% 3.66% 5.14% 5.02% 2.86% 2.93% 3.16% 3.30% 4.92% 208.0 219.5 176.5 180.9 3.13% 2.41% 5% 3% 0 2.04% 21% 21% 12% 10% 32% 38% 1.36% 2.38% 1.67% 74% 76% 56% 1.01% 52% 0.51% 1Q 22 1H 22 9M 22 FY 22 1Q 23 1H 23 9M 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 9M 22 9M 23 9M 22 9M 23 SOFR/LIBOR: USD 3M (avg) -0- SAIBOR: SAR 3M (avg) Loans Investments Cash, SAMA & interbank NIBD □ IBD Due to banks & debt | 32#33FINANCIAL PERFORMANCE | RATE SENSITIVITY BSF is positively positioned for a rising rate environment • • • • At 31 December 2022, BSF estimated a 1-year NIM sensitivity of a 100bps rates rise at 10bps; this would translate into SAR 219mn higher NII. This reflects the net long position in variable rate assets, reflecting lending concentration towards corporate. There were 11 rate hikes in KSA during 2022 and 9M 2023 totaling 500bps not all of which have repriced on the balance sheet to date. Traditionally BSF mitigated its interest rate risk exposure through cash-flow hedges; the size of the CFH portfolio is driven by the development of BSF's balance sheet structure, IRR appetite & structural market trends. Impact of 100bps Rate Change as at 31 December 2022 (SARmn/%) 219 (219) +0.10% Total assets Exposure to Interest Rate Risk as at 31 December 2022 (SAR Bn) Total liabilities and equity -95.3 22% 70% Interest rate sensitivity - On-BS Interest rate sensitivity - Off-BS Total interest rate sensitivity gap 48% البنك السعودي الفرنسي Banque Saudi Fransi 24% 17% 12% 210.6 29% 26% 26% 19% 115.3 -26.0 60% 100% 26.0 16% 18% 48% 17% 115.3 Within 3 months 3-12 months 1-5 years NIM, Rates and CFH Impact Trends (%) Over 5 years Cash Flow Hedges Swaps (SAR Bn) 3.66% 34.7 5.83% 6.09% 5.49% 5.28% 68.3% 28.5% 22.2% 21.5% 22.2% 28.6% 30.1% о 3.65% 2.86% 2.93% 3.16% 3.30% 3.57% 3.66% -51% +42% 60.0 51.8 1.36% 3.14% 2.71% 32.8 33.0 34.7 -0.10% 0.25% 0.11% -0.01% -0.15% -0.28% -0.36% -0 -0.42% 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 2018 -O-SAIBOR: SAR 3M (avg) -o-Cash flow hedging impact -O-NIM NII NIM +100bps -100bps 27.5 25.6 25.7 25.5 24.4 25.6 26.8 2019 2020 2021 2022 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Total Notional Amount CFH % of IR Sensitivity Gap Note: Exposure to interest rate risk is shown in time buckets based on the earliest of first re-pricing date and contractual maturity; this analysis includes all contractual balances (floating and fixed) and off-balance sheet positions | 33#34FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income increased 3% YoY as higher trading and fee & commission income was partly offset by lower investment income ■ Non-interest income for 9M 2023 increased 3% YoY to SAR 1,166mn as higher trading and fee & commission income was partly offset by lower investment income. Trading income grew 19% YoY to SAR 152mn due to increased activity in the Treasury markets advisory business. ■ Net fee & commission grew 4% to SAR 677mn in 9M 2023 as higher trade finance and other fee income was offset by lower brokerage income. Non-Interest Income Movement (SAR Mn) 1,166 +3% SAR (Mn) 1,126 9M 2023 9M 2022 A% 3Q 2023 3Q 2022 A% 27 24 27 3 (20) البنك السعودي الفرنسي Banque Saudi Fransi 4 1,166 Fee & commission income 1,083 1,045 +4% 381 338 +13% Fee & commission expenses (406) (395) +3% (150) (131) +14% Net fee & commission income 677 650 +4% 231 207 +12% Non-interest income 9M 22 Net fee & commission Exchange Income Trading income Investment-related income Other income income Non-interest income 9M 23 Exchange Income 337 334 +1% 113 136 -16% Trading income 152 127 +19% 72 20 20 Non-Interest Income (SAR Mn) Banking-Related Income (SAR Mn) +267% Banking-related income 1,166 1,111 +5% 417 362 +15% 400 417 Investment-related income Other income 15 (6) 14 -143% (17) 4 -522% 1 +422% 0 0 -35% +9% +15% Non-interest income 1,166 1,126 +3% 400 366 +9% 464 462 406 394 400 400 417 390 354 366 372 349 362 360 Trade Finance 124 +21.9% SAR Million year-on-year Brokerage & Asset Management Income +7% QoQ +16% QoQ 75 +14.7% year-on-year 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 SAR Million | 34#35FINANCIAL PERFORMANCE | OPERATING EXPENSES Operating expenses growth of 13% from higher employee-related expenses ☐ Operating expenses increased 13% YoY to SAR 2,176mn in 9M 2023 due to increased employee-related costs and excess accrual reversals in 1Q 2022. ■ The Yoy cost to income ratio improved by 2.9ppts YoY to 30.5% in 9M 2023 from 33.4% in 9M 2022. Operating expenses as a percentage of average interest-earning assets (AIEA) increased 8bps YoY to 1.32% for 9M 2023. Operating Expenses Movement (SAR Mn) 2,176 +13% 203 1 ■ Quarterly operating expenses increased 2% QoQ due to higher employee-related costs, partly offset by lower G&A expenses. 1,930 Cost To AIEA Ratio (%) Cost To Income Ratio (%) 1.32% 30.5% (0) البنك السعودي الفرنسي Banque Saudi Fransi 42 2,176 Operating expenses 9M 22 Employee-related Premises-related Depreciation G&A Operating expenses 9M 23 Operating Expenses (SAR Mn) 740 9M 23 Operating Expenses Composition (SAR Mn) 2,176 +9% 1.33% 1.32% 1.32% 1.27% 1.23% 1.24% 33.2% 33.9% 33.4% 33.1% 30.7% 30.8% 30.5% 1.21% 604 648 678 723 712 724 740 Depreciation 7.8% +2% QoQ G&A 30.8% 1Q 22 1H 22 9M 22 FY 22 1Q 23 1H 23 9M 23 1Q 22 1H 22 9M 22 FY 22 1Q 23 1H 23 9M 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Premises- related 2.3% Employee- related 59.0% | 35#36FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Cost of risk increased by 24bps YoY to 0.98% for 9M 2023 from improving Commercial coverage Impairment Charge (SAR Mn) 345 Impairment Charge (SAR Mn) 345 Cost of Credit Risk (%) 0.98% -1% -1% 1.16% 1.07% 431 0.85% 4 345 476 348 406 431 427 350 -20% QoQ 348 345 0.63% 0.68% 0.74% 294 241 351 -20% QoQ (1) 3Q 22 2Q 23 (6) 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 1H 22 Credit losses Investments 385 884 Impairment Charge Movement (SAR Mn) 1,181 +34% 1,181 (13) (75) Impairment charge 9M 22 Commercial Consumer Investments & off-balance Impairment charge 9M 23 0.98% 9M 22 FY 22 1Q 23 1H 23 9M 23 البنك السعودي الفرنسي Banque Saudi Fransi Commercial COR 1.22% +29 bps year-on-year Consumer COR -0.16% -5 bps year-on-year ■ The total impairment charge for 9M 2023 increased 34% YoY to SAR 1,181mn, mainly from higher Commercial impairments, partly offset by Consumer and Investment & off-balance reversals. ■ In combination with healthy loan growth, this resulted in a 24pbs YoY increase in cost of risk to 0.98% for 9M 2023. ■ The cost of risk trend was impacted by improving coverage on isolated exposures which previously migrated to NPL in the Commercial book. 136#37FINANCIAL PERFORMANCE | CREDIT QUALITY NPL ratio trend moderating during 9M 2023 following previous migration of isolated exposures in the Commercial book Non Performing Loans & Advances 4.2 4.0 (SAR Bn) 3.5 -15% 0.1 4.2 4.1 Non Performing Loans & Advances (SAR Bn) 3.5 -15% NPL Ratio (%) 1.97% 2.73% 4.5 3.5 4.1 4.2 4.4 4.2 2.54% 2.59% 3.7 2.48% 0.1 3.5 0.2 3.4 -17% QoQ IIIIII 2.36% 2.42% -17% QoQ 4Q 22 2Q 23 3Q 23 Commercial Consumer 1.97% 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Total Non Performing Movement (SAR Mn) 126 26 222 4,170 Total non performing 4Q 22 3,540 -15% 3,540 (708) (287) Contracting Commerce Consumer Services Manufacturing Other Total non performing 3Q 23 البنك السعودي الفرنسي Banque Saudi Fransi Commercial NPL Ratio (%) 2.3% -95 bps year-on-year Consumer NPL Ratio (%) 0.5% +7 bps year-on-year ■ The NPL ratio improved 57bps YTD to 1.97% as NPLs declined 15% on write-offs in the commercial book relative to 10% gross loan growth. ■ The trends in credit metrics were impacted by additional coverage on isolated exposures which previously migrated to NPL in the Commercial book. 137#38FINANCIAL PERFORMANCE | CREDIT QUALITY NPL coverage improved 19.6ppts YTD to 139.5% Allowance For Impairment (SAR Bn) Allowance For Impairment (SAR Bn) NPL Coverage Ratio (%) 4.9 4.9 139.5% -1% 5.7 5.0 4.9 4.9 19 0.3 0.3 0.3 5.4 4.7 4.7 -13% QoQ 4Q 22 2Q 23 3Q 23 ■Commercial Consumer ■ NPL coverage improved 19.6ppts YTD to 139.5% as of 30 Sept. 2023 due to additional coverage on isolated exposures which previously migrated to NPL in the Commercial book. Stage 3 coverage improved 8.4ppts during 9M 2023, stage 2 coverage improved 1.6ppts to 16.3%, while stage 1 coverage declined 10bps to 0.19%. البنك السعودي الفرنسي Banque Saudi Fransi Commercial NPL Coverage (%) - 138% +25 ppts year-on-year 139.5% -1% 133.3% 131.3% 5.2 5.2 5.4 5.7 126.5% 5.0 4.9 122.9% 119.9% 116.8% Consumer NPL Coverage (%) -13% QoQ 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Stage-Wise Gross Financing (SAR Bn) 179.6 +10% Stage-Wise ECL Allowances (SAR Bn) 4.9 -5% 165% -70 ppts year-on-year Stage-Wise Provision Coverage (%) 73.4% 76.6% 71.7% 73.4% 63.0% 62.6% 63.9% 65.0% 175.4 179.6 163.7 2.4% 2.0% 42 5.7 5.2 4.9 2.8% 8.2% 7.5% 6.8% 55.8% 58.0% 53.2% 89.0% 90.0% 91.2% 37.6% 35.7% 40.5% 6.5% 6.3% 6.3% 3Q 22 2Q 23 3Q 23 3Q 22 2Q 23 3Q 23 1Q 22 2Q 22 14.5% 15.3% 14.6% 14.8% 14.5% 15.3% 16.3% ° 0.28% 0.26% 0.23% 0.29% 0.24% 0.23% 0.19% ○ -O о 3Q 22 4Q 22 1Q 23 2Q 23 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 -o-Stage 1 -0- Stage 2 3Q 23 Stage 3 | 38#39FINANCIAL PERFORMANCE | CAPITALIZATION Strong capital ratios despite modest decline YTD ■ Total capital (Tier 1 + Tier 2 regulatory capital) declined 1% to SAR 42.1bn during 9M 2023 as net income generation was more than offset by dividend payments and movements in FVOCI & other reserves. ■ RWAs increased 2% during 9M 2023 to SAR 219.3bn from lending growth. ■ CAR was 19.21% and the Tier 1 ratio was 18.73% as of 30 Sept. 2023. CAR (%) 19.21% Total Capital (SAR Bn) 42.1 -1% 42.8 41.5 41.9 42.8 43.5 43.4 42.1 RWA (SAR Bn) 219.3 البنك السعودي الفرنسي +2% Banque Saudi Fransi 207.8 216.0 211.8 214.7 209.6 217.3 219.3 2.3 2.4 2.3 2.2 2.1 2.1 1.1 40.5 -3% 39.0 39.6 40.6 41.4 41.3 41.1 191.0 199.5 195.9 199.3 200.5 206.8 209.6 QoQ +1% QoQ 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 ■T1 OT2 Credit Operational ■Market Total Capital Movement (SAR Bn) 42.1 -1% 20.59% 20.73% 19.76% 19.92% 19.99% 19.20% 19.21% 3.4 42.8 42.1 19.73% 19.48% 18.68% 18.90% 19.00% 18.73% 18.07% (2.2) (0.2) (1.6) 17.35% 17.08% 16.32% 16.57% 16.70% 16.45% 15.76% 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Total Capital 4Q 22 Net income Dividends paid Tier 1 sukuk costs Reserves Total Capital 3Q 23 -O-T1 Ratio -O-CET1 Ratio -O-CAR | 39#40FINANCIAL PERFORMANCE | LIQUIDITY Liquidity remains strong and comfortably within regulatory limits ■ LCR declined by 25ppts during 9M 2023 to 171%. ■ NSFR moderated 6ppts to 116% as of 30 Sept. 2023. ■ The SAMA regulatory LTD ratio was within required levels at 84.0% as of 30 September 2023, while the headline ratio increased to 105.0%. Leverage ratio (%) 13.5% LCR & NSFR (%) 171% HQLA (SAR Bn) 42.4 البنك السعودي الفرنسي Banque Saudi Fransi +12% 201% 194% 196% 200% 185% 180% 119% 116% 122% 113% 119% 116% 171% о 116% 42.4 39.5 40.5 38.6 37.7 38.5 38.1 +11% QoQ 1Q 22 2Q 22 3Q 22 NSFR 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 -O-LCR LTD Ratios (%) 84.0% 105.3% 105.0% 101.3% 101.1% 100.4% 100.9% 15.6% 98.4% 15.0% 15.1% 14.5% 14.4% 13.8% 13.5% ° 84.9% 83.4% 83.4% 83.3% 84.0% 80.9% 82.0% Available Stable Funding (SAR Bn) 156.3 +2% 146.1 147.4 146.4 153.1 156.0 155.8 156.3 +0% QoQ 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 -O-Headline LTD Ratio 2Q 23 -O-LTD SAMA ratio 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 | 40#41INVESTOR PRESENTATION 3Q 2023 Outlook and Guidance البنك السعودي الفرنسي Banque Saudi Fransi#42FINANCIAL PERFORMANCE | GUIDANCE Improving profitability expected in 2023 from solid loan growth, continued NIM expansion, positive jaws and lower cost of risk Metric 9M 2023 Outcome 2023 Guidance Revision Drivers البنك السعودي الفرنسي Banque Saudi Fransi LOANS & ADVANCES GROWTH NET INTEREST MARGIN COST OF RISK Financing Growth +9.9% SAR 174.7 bn NIM 3.63% +65bps YOY YTD Financing Growth Low double-digit NIM 3.50 -3.60% REVISED UP FROM HIGH SINGLE-DIGIT REVISED UP FROM 3.45-3.55% Balanced growth of consumer and commercial lending expected in 2023 with upward revision from strong commercial lending momentum NIM expected to rise in 2023 from higher average benchmark rates, with upward revision arising from more hawkish US monetary policy than expected. COR 98bps +23bps CIR COST TO INCOME RATIO 30.5% -293bps RETURN ON EQUITY ROAE 11.5% +227bps COR 85-95bps UNCHANGED YoY CIR <32% UNCHANGED YOY ROAE 11-13% YoY Cost of risk for 2023 to gradually normalize while improving coverage on isolated corporate exposures. Expect Cl-ratio below 32% for 2023, mainly from higher income on more modestly rising cost base. UNCHANGED Increase in ROAE from lending growth, higher NIMS, and improving operating efficiency and risk cost. CET1 CET1 17-18% UNCHANGED -12bps YTD Modest increase in CET1 during 2023 from robust earnings generation, partial reversal of MTM through FVOCI, while maintaining dividend payout levels. CORE EQUITY TIER 1 RATIO 16.4% | 42#43INVESTOR PRESENTATION 3Q 2023 Segmental Performance البنك السعودي الفرنسي Banque Saudi Fransi#44SEGMENTAL PERFORMANCE | SUMMARY Profitability driven by growth in Retail and Corporate, partly offset by lower Treasury and Investment Banking and Brokerage Operating Income Movement (SAR Mn) 726 1,074 5,774 7,133 +24% (443) Net Income Before Zakat Movement (SAR Mn) 287 2 7,133 980 2,960 3,776 +28% البنك السعودي الفرنسي Banque Saudi Fransi 3,776 (450) (1) Operating income 9M 22 Retail Corporate Treasury Investment Banking and Brokerage Operating income 9M 23 Net income before zakat 9M 22 Retail Corporate Treasury Investment Banking and Brokerage Net income before zakat 9M 23 Loans & Advances Movement (SAR Bn) 174.7 +10% 12.3 0.0 174.7 159.0 3.4 157.6 Customers' Deposits Movement (SAR Bn) (1.9) 166.4 +6% 10.6 166.4 Loans & advances Retail Corporate 4Q 22 Investment Banking and Brokerage Loans & advances 3Q 23 Customers' deposits Retail Corporate 4Q 22 Customers' deposits 3Q 23 | 44#45SEGMENTAL PERFORMANCE | RETAIL Higher profits YoY from higher net interest income 534 1,119 Net Income Before Zakat Movement (SAR Mn) 1,514 +184% (44) (188) Total Operating Income (SAR Mn) 950 +63% 950 94 1,514 883 582 851 917 +8% QoQ 536 Net income before zakat Net interest income Fee & other income Expenses Impairments Net income before zakat 3Q 22 2Q 23 3Q 23 9M 22 9M 23 Net interest income Fee & other income Retail Loans (SAR Bn) 40.4 +9% Retail Deposits (SAR Bn) 75.5 -2% 34.3 36.2 37.0 37.0 37.9 38.8 40.4 78.3 75.6 74.9 77.3 76.8 75.0 75.5 +4% QoQ Net Income Before Zakat (SAR Mn) 258 +1% QoQ IIIIIII 551 +114% 551 505 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 2Q 23 البنك السعودي الفرنسي Banque Saudi Fransi Net Interest Income 917 +71.1% SAR Million year-on-year Fee & other income 33 SAR Million -29.1% year-on-year Expenses 408 SAR Million +13.5% year-on-year Impairments +9% QoQ 3Q 23 J..... -9 SAR Million -73.7% year-on-year 145#46SEGMENTAL PERFORMANCE | CORPORATE Increased Corporate profitability from net interest income growth partly offset by increased impairments Net Income Before Zakat Movement (SAR Mn) 125 601 1,098 1,386 +26% Total Operating Income (SAR Mn) 1,137 +17% 1,137 969 1,024 1,386 154 (58) 113 132 (381) 856 892 984 +11% QoQ Net income before zakat Net interest income Fee & other income Expenses Impairments Net income before zakat 3Q 22 2Q 23 9M 22 9M 23 Net interest income Corporate Loans (SAR Bn) 132.8 +10% 116.5 121.5 119.8 120.5 125.6 129.4 132.8 IIIIII +3% QoQ Corporate Deposits (SAR Bn) 90.9 3Q 23 Fee & other income Net Income Before Zakat (SAR Mn) 609 +13% -47% 90.6 82.3 82.9 86.2 90.9 609 80.3 72.5 414 392 +5% QoQ +55% QoQ 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 2Q 23 3Q 23 البنك السعودي الفرنسي Banque Saudi Fransi Net Interest Income 984 SAR Million +15.0% year-on-year Fee & other income 154 SAR Million +36.1% year-on-year Expenses 191 SAR Million +11.7% year-on-year Impairments 338 SAR Million -11.9% year-on-year | 46#47SEGMENTAL PERFORMANCE | TREASURY Net income declined 39% YoY due to higher funding costs. 1,156 (445) Net Income Before Zakat Movement (SAR Mn) 705 -39% 2 3 Net income before Net interest income Fee & other income zakat 9M 22 (11) Total Operating Income (SAR Mn) 253 -42% 433 332 705 130 253 135 146 304 -24% 197 107 QoQ 3Q 23 Expenses Impairments Net income before zakat 3Q 22 2Q 23 9M 23 Net interest income Investments (SAR Bn) 46.4 42.9 43.5 43.3 44.5 44.8 +4% Fee & other income Net Income Before Zakat (SAR Mn) 162 -52% 49.2 339 46.4 229 -6% QoQ البنك السعودي الفرنسي Banque Saudi Fransi Net Interest Income 107 SAR Million Fee & other income -64.7% year-on-year Iulm 146 SAR Million +12.5% year-on-year Expenses 75 -21.0% year-on-year SAR Million 162 -29% QoQ Impairments 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 2Q 23 3Q 23 Investments excludes Investment in Associates 15.4 SAR Million -1294.8% year-on-year 147#48SEGMENTAL PERFORMANCE | INVESTMENT BANKING AND BROKERAGE Modest profitability decline due to lower brokerage fees Net Income Before Zakat Movement (SAR Mn) 45 173 171 -1% Total Operating Income (SAR Mn) 128 +29% 128 108 171 99 20 67 (43) 72 77 22 +19% QoQ 61 35 22 Net income before zakat 9M 22 Net interest income Fee & other income Expenses Net income before zakat 9M 23 3Q 22 2Q 23 3Q 23 Net interest income Fee & other income Brokerage Trading Value (Bn) 25.7 -13% Assets Under Management (SAR Bn) 29.6 +24% Net Income Before Zakat (SAR Mn) 61 +33% اس البنك السعودي الفرنسي Banque Saudi Fransi Net Interest Income 61 +178.7% SAR Million year-on-year Fee & other income 67 -13.1% year-on-year SAR Million Expenses 66 SAR Million +25.4% year-on-year 55.5 48.1 29.5 27.5 21.8 24.0 25.7 28.4 29.0 29.6 29.6 26.0 27.2 23.9 46 -0% QoQ 67 61 46 Brokerage Trading Value (9M 22) +7% -8% QoQ QoQ Ilum 71.5 -46.3% year-on-year 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 2Q 23 3Q 23 SAR Billion Investments excludes Investment in Associates | 48#49INVESTOR PRESENTATION 3Q 2023 Performance Track Record البنك السعودي الفرنسي Banque Saudi Fransi#50PERFORMANCE TRACK RECORD Balance Sheet Metrics Loans & Advances (SAR Bn) Total Assets (SAR Bn) Customers' Deposits (SAR Bn) CAR (%) البنك السعودي الفرنسي Banque Saudi Fransi 159.0 232.1 157.6 19.92% 21.57% +7% +5% +2% 21.09% 19.77% 19.92% 19.20% 159.0 232.1 157.6 20.56% 147.8 215.8 148.4 142.0 19.94% 120.6 125.7 130.6 190.3 194.1 132.8 178.1 127.1 17.71% 18.32% 18.90% +8% YOY +8% YoY +11% YoY 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 -O-T1 Ratio -O-CAR 81.3% Headline LTD Ratio (%) 100.9% 398% 102.7% 104.1% 100.9% 94.6% 324% 85.8% 86.9% 82.3% 83.3% 72.2% 2018 2019 ―0 LTD SAMA ratio 2020 2021 LCR (%) 196% 199% 196% 179% NPL Ratio (%) 2.54% NPL Coverage Ratio (%) 120% 2.91% 2.78% 2.64% 2.53% 2.54% 125% 123% 120% 112% 109% 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 -o-Headline LTD Ratio | 50#51PERFORMANCE TRACK RECORD Income Statement Metrics Operating Income (SAR Mn) 8,017 +4% Net Interest Margin (%) 3.06% البنك السعودي الفرنسي Banque Saudi Fransi Cost To Income Ratio (%) Cost Of Risk (%) 33.1% 3.04% 2.85% 2.97% 3.02% 3.06% 33.7% ° 33.3% 33.6% 34.3% 33.1% 8,017 6,799 6,873 7,045 7,128 +12% YoY 0.85% 2.07% 0.72% 0.79% 0.85% Q.67% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Net Income Before Zakat (SAR Mn) 4,004 +5% 3,619 3,307 2,010 3,837 4,004 1,403 +4% YOY Net Income (SAR Mn) 3,575 +26% 3,115 1,546 9.66% Returns (%) 9.24% 1.94% 1.75% 8.80% 9.24% 3,450 3,575 4.43% 4.47% +4% YoY 1.67% 1.66% 1.58% 0.74% 0.80% 0.74% 2018 2019 2020 2021 2022 2018 2019 2018 2019 2020 2021 2020 2021 2022 2022 2018 -O-ROAA -O-ROAE ROAA (%) 1.58% 1.85% 1.77% 1.67% 1.66% 1.04% 1.58% 2019 0.80% 2020 2021 2022 -O-ROAA -O-ROAA - before zakat 151#52INVESTOR PRESENTATION 3Q 2023 Appendix البنك السعودي الفرنسي Banque Saudi Fransi#53EARNINGS PRESENTATION 3Q 2023 Please contact the Investor Relations team for additional information or download BSF's IR App For more information, please contact us at: Banque Saudi Fransi P.O. Box 56006, Riyadh 11554 Kingdom of Saudi Arabia [email protected] Access our IR website: BSF IR Website Find our financial disclosures: Financial Disclosures BSF Investor Relations Contact: Yasminah Abbas Head of Investor Relations E: [email protected] T: +966 11 289 1406 M: +966 50 418 7484 BSF Investor Relations App: 1:10 My Account Banque Saudi Fransi (1050) 36.50 SAR High 37.15 36.30 +100 10 Volume 264.03к 15:00 40.00 Download on the App Store GET IT ON Google Play Financial Calendar See all FINANCIAL RESULTS 2nd Quarter Results 2023 ©2009 (UTC+04:00) DIVIDEND Distribut Half of 2 البنك السعودي الفرنسي Banque Saudi Fransi | 53#54INVESTOR PRESENTATION 3Q 2023 Disclaimer البنك السعودي الفرنسي Banque Saudi Fransi This presentation is being provided to you for general information purposes. The information contained in the presentation has been obtained from sources believed by Banque Saudi Fransi ("BSF") to be up to date, correct and reliable, but BSF does not make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy reasonableness or completeness of the information and opinions. The information provided does not constitute or form part of any legal advice or legal opinion. No advisory, fiduciary or other relationship is created between BSF and you or any person accessing or otherwise using any information of the presentation provided, nor does it constitute an offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, securities nor should it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. It is not a recommendation by BSF to purchase securities. Before using the information provided, you should seek your own independent advice in relation to any investment, financial, legal, Shariah, tax, accounting or regulatory issues discussed and the presentation should not be construed as constituting tax, investment or legal advice. Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed. Nothing contained herein shall constitute any representation or warranty as to future performance of any financial instrument, credit, currency, rate or other market or economic measure. Furthermore, past performance is not necessarily indicative of future results. BSF and its affiliates, and any of its directors, officers, suppliers, agents and employees disclaim liability and will not be liable for any loss, damages, actions or course of actions arising out of or in connection with using of, or reliance on, this presentation. Any opinion, estimate or projection in this presentation constitutes an opinion, estimate or projection as of the date of this presentation, and there can be no assurance that future results will be consistent with any such opinion, estimate or projection. There is no obligation to update, modify or amend this communication or to otherwise notify the Recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning BSF. This document has been furnished to you solely for your information. It is not intended for distribution to the press or other media and may not be reproduced or redistributed by mail, facsimile, electronic or computer transmission or by any other means to any other person. By accepting this document you agree to be bound by the limitations set out in this disclaimer. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. You understand the in order to be eligible to view the Information, you must be a "sophisticated investor" within the meaning of the Offers of Securities Regulations issued by the Capital Market Authority of the Kingdom of Saudi Arabia and should have (alone or with a financial advisor) the expertise to evaluate the performance of securities under changing conditions. The costs of such an evaluation will be of your account.