#1البنك السعودي للاستثمار The Saudi Investment Bank Investor Presentation 9M 2023 November 2023 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 1#2The Saudi Investment Bank - 3Q 2023 Investor Presentation Contents SAIB Overview KSA Operating Environment Strategy Financial Performance 3 ml 7 10 23 2023 Guidance 36 Segmental Performance 38 Appendix 45 P. 2#3The Saudi Investment Bank-3Q 2023 Investor Presentation SAIB Overview P. 3#4Strong corporate and private banking franchise with well capitalized balance sheet Total assets +19% YTD Number of branches Unchanged YTD % of Digital transactions Unchanged YTD Number of customers +11% YTD Credit ratings S&P/Fitch / Moody's 129.8 SAR bn 51-> 99.6% +840 k ▲ BBB / A- / A3 ▲ Total Assets by Segment (%) Retail Corporate 36% Treasury & Investments Asset Mgmt. & Brokerage Others 1%2% 17% Key financial metrics 12.2% ▲ ROTE 3.07% ▲ NIM Key stock market indicators SAR 15.8 bn Market Cap. +33% Share Price (in last 3 years) 18.6% ▲ 45% T1 201.6% LCR SAR 7.2 mn ADTV (LTM) 4.7% Div. Yield The Saudi Investment Bank - 3Q 2023 Investor Presentation All figures as at the end of 30 June 2023, Dividend yield calculated on 2022 declared dividend P. 4#5Robust financial performance with double digit net profit growth and improved profitability Total Operating Income NIM Operating Expenses +5% CAGR +6% CAGR 3,265 2,713 2,818 2,846 2,753 1,433 1,133 1,234 1,214 1,270 Net Income 576 239 +27% CAGR 1,508 980 1,062 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2.57% 2.52% 2.59% 2.64% - 2.92% 2018 2019 2020 2021 2022 The Saudi Investment Bank - 3Q 2023 Investor Presentation Cost To Income Ratio 41.8% 46.1% 43.8% 42.7% 43.9% 2018 2019 2020 2021 2022 Cost of risk 0.40% 2.11% 0.77% 0.43% 0.25% 2018 2019 2020 2021 2022 P. 5#6Resilient asset quality, adequate capital and liquidity position to accelerate growth and returns Loans & Advances Deposits +4% CAGR +2% CAGR 68.9 69.1 69.6 63.7 59.4 57.1 55.1 57.8 60.1 61.5 ROTE 4.21% 1.01% +569bps 9.90% 6.95% 6.92% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 NPL Ratio 1.76% 3.99% Capital Ratios -Tier 1 ratio CAR Liquidity Ratios SAMA LTD -O-LCR NSFR 21.2% 20.8% 18.3% 19.3% 199.6% 2.04% 1.86% 18.2% 17.6% 1.57% 16.3% 20.3% 20.1% 107.8% - 77.8% - 17.5% 2018 2019 2020 2021 2022 The Saudi Investment Bank - 3Q 2023 Investor Presentation 2018 2019 2020 2021 2022 219.9% 114.6% 79.0% 2018 2019 2020 2021 2022 P. 6#7Operating Environment The Saudi Investment Bank-3Q 2023 Investor Presentation P. 7#8The Saudi Economy is healthy, though 2023 GDP growth impacted by oil production cuts Real GDP Growth (%) +0.8% Interest Rates (%) 8.7% 3.9% 4.0% 4.2% 1-11 0.8% 2021 2022 2023 2024 2025 Oil Prices (USD) Brent Oil Price / Barrel (avg) --WTI Oil Price / Barrel (avg) 80.5WT 96.4 94.8 80.5 79.9 ° 0 69.3 68.0 ° 76.0 72.6 77.3 76.9 2021 2022 2023 2024 2025 SAIBOR 3M Avg Inflation (%) Current A/C Balance (%) 2.5% 5.85% 5.37% 3.13% 4.57% 3.1% 2.5% 2.5% 2.2% 13.6% 5.1% 5.9% 5.4% 4.4% 2.0% 0.81% 2021 2022 2023 2024 2025 The Saudi Investment Bank - 3Q 2023 Investor Presentation Source: IMF 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 P. 8#9The Saudi Banking sector is profitable and showing solid growth momentum, though liquidity is tighter amidst higher rate environment Bank Credit (SARbn) Bank Deposits (SARbn) Profitability (%) ROE -ROA 12.9% ROE +12% CAGR +8% CAGR 2,349 2,411 2,059 2,104 2,295 2,401 13.9% 1,783 1,443 1,552 1,674 1,796 1,943 12.5% 11.9% 12.9% 10.8% 2018 2019 2020 2021 2022 2Q 23 2018 2019 2020 2021 2022 2Q 23 8.6% Capitalization (%) CAR -- T1 Ratio Liquidity (%) Headline LTD 1.8% 1.8% 2.1% Liquid assets to total assets 2.1% a 1.2% 2.2% 20.3% 20.3% 19.9% 19.9% 19.4% 20.0% 86.4% 91.7% 97.9% 102.3% 2018 2019 100.4% 2020 2021 2022 1H 23 86.2% 18.5% 18.4% 18.7% 25.4% 26.8% 24.7% 22.8% NPL Ratio (%) 18.1% 18.2% 18.4% 22.3% o 23.4% 1.9% 2.2% 1.9% 1.8% 2.0% 1.7% 2018 2019 2020 2021 2022 2Q 23 2018 2019 2020 2021 2022 2Q 23 2018 2019 2020 2021 2022 2Q 23 The Saudi Investment Bank - 2Q 2023 Investor Presentationn Source: SAMA P. 9#10The Saudi Investment Bank-3Q 2023 Investor Presentation Strategy P. 10#11SAIB has started to see real growth momentum, reaching Revenue of SAR1 bn in 3Q 2023 Revenue (3Q 2014 to 3Q 2023) SAR 1.0 bn Net Loans (3Q 2014 to 3Q 2023) SAR 80 bn Γ 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 Total Deposits (3Q 2014 to 3Q 2023) SAR 85 bn 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 11#12This is underpinned by the Bank's strategy to build on its agility, culture of innovation and focus on corporate and HNW customer relationships... SAIB's size allows agility Shareholders Equity (FY22, SARbn) 166.8 16.8 100.2 56.2 54.7 38.7 31.9 SAIB SNB RAJHI RIYAD SAB BSF ALINMA Corporate and Private Banking Focus Total Assets by Segment (3Q23, %) ☐ Retail Corporate 36% Treasury & Investments Asset Mgmt. & Brokerage Others Innovation is key to SAIB's success "Flexx" Transfer "100 Currency" Travelcard Deep Customer Relationships فلکس FLEX البنك السعودي للاستثمار The Seedi Investment Bank 1234 5678 9123 4567 12/23 VISA MOHAMMED ABDULLAH Platinum The Saudi Investment Bank - 3Q 2023 Investor Presentation 1%2% 17% 13 Years Mid-corporate average length of relationship 45% Corporate and HNW customers are in SAIB's DNA Corporate Financing (SARbn) +28% CAGR 52.5 55.5 58.3 47.3 37.9 39.9 41.5 43.1 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Private Banking Financing (SARbn) +9% CAGR 9.5 9.7 10.2 10.7 10.5 11.0 11.1 10.1 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 P. 12#13...and a real focus on building on market opportunities Corporate banking is still underpenetrated in KSA with... Saudi Arabia Credit to GDP 63% by 2025 21% 63% 1996 2000 2004 2008 2012 2016 2020 2024 The Saudi Investment Bank - 3Q 2023 Investor Presentation ...ample room to grow - SAIB market shares have upside from today SAIB Market Share by Corporate Loans (FY22, %) Large & Medium Corporate Medium Enterprises Small Enterprises 1.50% Micro Enterprises 2.20% 3.40% 3.40% P. 13#14We have identified key areas for improvement and are addressing them... Further Upside - Cost Efficiency from Digitization of Branches Total assets per branch (2Q23, SARM) 2,423 SAIB 2,084 KSA Average Room for Improvement - product penetration vs. KSA average Average Products per Customer (FY22) 1.9 3.0 Significant opportunity to improve the NIBD ratio NIBD % of Total Deposits (2Q23, %) 40% SAIB 54% KSA Average SAIB deployment of new customer coverage and digital channels to improve CIR Cost/Income Ratio (1H23, %) 42.4% 35.8% SAIB Average Products DM Average Products SAIB KSA Average per Customer per Customer The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 14#15Strategic priorities for out core segments and enablers Core 1 Segments Corporate Banking Public Institutions Private Banking Consumer Banking Key Strategic Priorities Key Strategic Objectives • Serve large corporates and mid-market through differentiated coverage Enhance cross-sell and industry focus Improve digital platform and products Digitize credit, trade finance, account opening and servicing • Increase coverage for prioritized customer segments Implement target public institution organization Introduce B2B, mobile and priority services for high value clients Digitize account opening and maintenance • Increase focus on high value private banking customers Elevate private banking organization Introduce new products and services, revamp investment offerings Digitize credit, onboarding and account maintenance Segregate coverage of affluent and mass affluent Introduce dedicated branches for corporate, affluent and private banking Develop and launch new digital app, new products and services Digitize credit, onboarding and account maintenance Revisit segmentation and coverage Redesign the 56 operating model Revamp value proposition Streamline and automate key processes Key Enablers Support strategy through مممم The Saudi Investment Bank - 3Q 2023 Investor Presentation Treasury Optimal risk- return investments, funding, and prudent capital management IT/Digital Strengthen digital and analytics capabilities Human Resources Enhance organization effectiveness and culture Risk Enhance enterprise risk management and capabilities P. 16#16Corporate Banking Strategy: Accelerate profitable growth Status quo Strong corporate franchise with a large number of borrowing customers served through RMs with standard coverage model Key Strategic Priorities Key Strategic Initiatives Revisit segmentation and coverage Serve large corporates and mid-market through differentiated coverage Serve customers with more systematic and proactive digital enabled account planning Review capacity and hire RMs, product and industry specialists Revise corporate scorecard and KPIs • . . • Redesign the 500 operating model Enhance cross-sell capabilities and increase industry focus Implement new operating model consisting of 3 segments (large corporate, corporate, MSME) Embed transaction banking specialists, treasury and ICAP specialists Industry specialists' pilot (for central region) Revamp value proposition Enhance digital capabilities with new CIB platform (Ecorp, m-corp, B2B solution etc.) Broaden product suite in transaction banking and credit product offering • • Streamline and automate key processes Simplify and automate: credit processes/policy • account opening and maintenance process • trade processes Explore and prioritize other corporate processes The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 17#17Public Institutions Strategy: Increase penetration and grow DDA and fees Status quo Current PI franchise with a good number of depositing customers contributing a significant percentage of DDA deposits Key Strategic Priorities Key Strategic Initiatives Revisit segmentation and coverage Review capacity and hire RMs as needed Implement account planning and re-equip RMS with tools Revise scorecard and KPIs The Saudi Investment Bank - 3Q 2023 Investor Presentation Redesign the Revamp value proposition 500 operating model • Redefine Pl operating model • Introduce . Implement target public institutions organization Streamline and automate key processes • Redesign: • dedicated employee team, • B2B, . mobile and priority services for high value client • account opening and • maintenance process for public institutions P. 18#18Private Banking Strategy: Accelerate profitable growth Status quo Strong private banking franchise with many customers served through RMs with same coverage for HNW & UHNW Key Strategic Priorities Key Strategic Initiatives Revisit segmentation and coverage Redesign the 500 operating model • Elevate private banking organization • Implement target private • Revise customer segments, introducing 2 segments - Private and Private+ Increase focus on high value private banking customers Revise capacity and hire RMs Update RM performance KPIs, train RMs and integrate into tool performance tracking module banking organization • 2 segments Introduce UHNW segment within private banking to ensure right service and offering for different segment needs Expand product offering, esp. in investment and lending to further penetrate this segment The Saudi Investment Bank - 3Q 2023 Investor Presentation Revamp value proposition Streamline and automate key processes Introduce new products and services • Redesign: • credit, Revamp investment offering from ICAP • • onboarding and account maintenance journeys P. 19#19Consumer Banking Strategy: Build differentiated value proposition Status quo Affluent are the key contributors to volume and profitability with a significant number of customers Key Strategic Priorities Key Strategic Initiatives . Revisit segmentation and coverage Segregate coverage of affluent and mass affluent with virtual remote RMS for mass affluent and centralized team for affluents Revise capacity of affluent RMS after separating mass affluent, fix load allocation across them Redesign the 500 operating model Revamp value proposition Streamline and automate key processes . Rethink branch footprint: • . Revise branch coverage Introduce new products and services • Redesign: • credit, • • Introduce dedicated branches for corporate, Launch new digital app for consumer customers • onboarding and • account maintenance affluent and private banking Repurpose space journeys for affluent banking The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 20#20Strategic Enablers Key Enablers مممم Treasury IT/Digital Human Resources Risk Key Strategic Priorities Optimize funding structure to support growth plans and enhance NII Prudent management of liquidity ratios Increase and diversify investment portfolio, optimizing risk return profile Develop treasury products for corporate and PB clients • Test automation by writing and running tests to assure quality Complete adaption of infrastructure automation and version control • Redesign organization • Deploy best-in-class • DevSecOps tool chain . • Formalize data governance policies and automate critical activities Adopt agile ways of working with cross-functional teams/squads and run short development cycle (sprints) • structure based on strategic direction Update bank-wide incentive and performance management Hire needed talents to support business growth Improve organizational health and culture to uplift employee satisfaction and performance • appetite statement Review and simplify risk Establish an EWS unit with • direct reporting to CRO • • • • Review delegation of authority and empowerment matrix as well as exception grid Automate credit proposal and limit management Enhance risk organization Introduce unified MIS The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 21#21We aim to grow market share, increase fee income and improve efficiency to drive higher ROTE Grow Market Share in Corporate Loans Corporate KSA Market Share 5.3% 4.2% 4.2% 2022A 1H 23A 2027E Improve Funding Costs NIBD Share of Deposits 45% 37% Grow Market Share in Retail Loans Retail KSA Market Share SAIB has already started to close the gap towards KSA peers' return on equity 1.3% Return on Tangible Equity 1.0% 1.0% 2022A 1H 23A 2027E Improve Efficiency Cost / Income Ratio 50% 44% 42% 41% 2022A 3Q 23A 2027E The Saudi Investment Bank - 2Q 2023 Investor Presentationn 2022A 9M 23A 2027E 1.0% 7.0% 6.9% 9.9% 13.0% 12.7% 12.2% 2019 2020 2021 2022 9M 23 KSA 2027 Peers Target Average 1H 23 Return on Tangible Equity Target, 2027E 12.7% Return on Tangible Equity is calculated using net income attributable to shareholders in the numerator, after deducting Tier 1 Sukuk costs | KSA Peers include SAB, BSF and ARNB P. 22#22Financial Performance 9M 2023 The Saudi Investment Bank-3Q 2023 Investor Presentation P. 23#23SAIB is focused on delivering strong results across key performance indicators 9M 2023 LOANS & ADVANCES SAR 80.2bn +16% YTD Balance Sheet DEPOSITS SAR 85.5bn +23% YTD NET INTEREST MARGIN 3.07% +24bps YoY Profitability COST TO INCOME RATIO RETURN ON TANGIBLE EQUITY 41.7% -2.9ppt YoY 12.2% +1.5ppt YoY COST OF RISK 0.43% +59bps YoY Asset Quality NPL RATIO 1.48% -9bps YTD NPL COVERAGE RATIO 169.1% +6.1 ppt YTD TIER 1 RATIO Capital & Liquidity SAMA LTD RATIO 18.6% +1.0ppt YTD 74.4% -4.5ppt YTD DRIVERS Strong growth in Corporate (+23%) and Private Banking (+6%) loans Strong growth in IBDs (+41%) mainly from public institutions, while NIBDS were stable YTD; CASA ratio moderated -8.2ppts to 36.7% NIM expansion YoY from higher benchmark rates, but 5bps contraction QoQ from shift in deposit mix Operating expenses rose 18% from spend on strategic initiatives, but positive jaws improve cost to income ratio ROTE improvement as net income growth YoY of 15% to SAR 1,314mn exceeds growth in tangible common equity (+4% YoY) Cost of risk remains low at 43bps, but rose YoY due to elevated recoveries in the prior year NPL ratio on improving trend from benign credit environment Improved stage 3 and overall coverage as additional provisions were made for certain corporate NPL exposures Capitalization improvement mainly driven by RWA decline following new SAMA regulations which allow share collaterals as RWA reductions Improvement driven by strong deposit growth YTD. The Saudi Investment Bank - 3Q 2023 Investor Presentation Return on Tangible Equity calculated using net income attributable to shareholders in the numerator, after deducting Tier 1 Sukuk costs P. 24#24Growth momentum sustained in 9M 2023 demonstrating solid progress Loans +16% YTD Deposits +23% YTD SAR 80.2 bn ▲ SAR 85.5 bn A 9M 2023 Operating Income +26% YoY 9M 2023 Net Income +14% YoY SAR 2,954 mn SAR 1,314 mn ▲ Loan growth of 16% YTD driven by corporate segment while deposits grew 23% YTD on higher time deposits Double digit growth in operating income underpinned by 19% YTD growth in assets and higher profit margins Maintained cost discipline with cost to income ratio declining to 41.7% Return on tangible equity at 12.2%, maintains an upwards trajectory Asset quality continued to improve with NPL ratio declining by 9bps to 1.48% with NPL coverage ratio at 169% Strong capital ratios with T1 ratio at 18.6% Solid liquidity position with LCR of 202% and SAMA LTD at 74.4% Net Income (SARMn) SAR 462 mn -16% 9M 2023 ROTE +151 bps YoY 12.2% 550 444 462 409 350 3Q 2023 T1 Ratio 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation +1.0 ppt YTD 18.6% Return on Equity calculated using net income attributable to shareholders in the numerator, after deducting Tier 1 Sukuk costs 3Q 2023 NPL -9 bps YTD 1.48% 3Q 2023 LCR -18.3 ppt YTD 201.6% ▼ P. 25#25Growth across assets, funded largely by increase in deposits Total assets increased by 19% YTD as loans grew 16% and investments rose 16%, further supported by increase in SAMA and bank placements Total liabilities increased 23% YTD, mainly driven by growth in deposits of 23% YTD Total equity was stable YTD as solid retained earnings generation was offset by reduction (net of repayment and issuance) in Tier 1 sukuk and payment of 2022 final and 2023 interim dividends Loans & Advances (SARbn) Retail Corporate | Other +16% 73.6 77.3 80.2 68.9 64.7 1.8 1.7 1.8 1.8 2.2 SAR Million 3Q 2023 2Q 2023 A 4Q 2022 A 55.5 43.1 47.3 52.5 58.3 Cash and balances with SAMA 9,739 8,149 +20% 6,401 +52% 19.4 19.8 19.3 20.0 20.2 Due from banks and financial Institutions, net 2,486 2,179 +14% 1,305 +91% Investments, net 32,754 31,707 +3% 28,180 +16% 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Loans and advances, net Other assets, net Total assets 80,201 4,646 129,826 +4% Due to banks and other financial institutions, net Customers' deposits Other liabilities Total liabilities Share capital 25,885 85,455 1,948 113,288 10,000 10,000 Retained earnings 1,771 1,725 +3% 77,305 68,883 +16% 4,255 +9% 4,302 +8% 123,595 +5% 109,071 +19% 22,287 +16% 20,892 +24% 82,664 +3% 69,579 +23% 1,949 +0% 1,810 +8% 106,900 +6% 92,281 +23% +0% 10,000 957 Deposits (SARbn) Retail Corporate ☐ Other +23% 79.2 82.7 85.5 Other reserves 2,053 2,255 -9% 2,618 +0% +85% -22% 67.6 69.6 43.2 52.1 54.0 32.3 34.7 10.9 10.2 9.3 Shareholders' equity 13,824 13,980 -1% 13,575 +2% 24.3 24.7 26.7 7.8 22.8 8.2 23.2 Tier 1 sukuk 2,715 2,715 +0% Total equity 16,539 16,695 -1% 3,215 16,790 -16% 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 -1% The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 26#26Loan growth continues to gain momentum driven by corporate lending 16% YTD growth in loans driven by 23% increase in corporate lending Active participation in syndicated loan market for infrastructure projects, well supported by demand from other key sectors such as commerce, financial institutions, building & construction and services Retail lending grew 2% YTD as consumer loans declined 4% YTD, partially offset by an increase of 6% in private banking lending Loans & Advances Movement YTD (SAR bn) +16% 5.3 2.1 1.7 1.7 1.6 68.9 +4% Loans QoQ Loans & Advances by segment (%) Retail Private Banking Corporate 73% +16% Loans YTD Others (0.4) (0.6) Loans & Advances by economic activity (%) Commerce Banks & FI 2% 11% 14% 17% 80.2 26% ☐ Consumer Private Banking 4Q 22 Govt./ Commerce Banks & Fl Services Quasi Govt. Building Consumer & Const. Others 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation Building & Const. Others 14% 7% Govt. / Quasi Govt. 10% 13% 14% P. 27#27Investments grew 16% YTD driven by debt securities 96% of investments were fixed rate debt securities as of 9M 2023 61% of investments were accounted for at fair value through other comprehensive income and 38% at amortized cost High-grade investment portfolio with 60% of investment securities issued by government, 26% by banks and other financial institutions Increase in investments during 9M 2023 was mainly driven by new securities to lock-in and benefit from high rate environment (mainly in fixed-rate debt securities issued by international financial institutions) Investments, Gross by type (%) 3%1 1% Fixed rate securities ☐ Floating rate securities Funds & equity Investments (SARbn) +16% 31.7 32.8 30.1 26.9 28.2 Investments by accounting classification (%) 1% 0% Debt securities - Amortized cost Debt securities - FVOCI 61% ☐ Equity securities - FVOCI 96% FVTPL Investments (SARbn) 38% Government & quasi-government Corporate Banks & other financial institutions +16% 30.1 31.7 32.8 26.9 28.2 7.9 8.5 4.8 7.3 5.5 4.5 4.7 4.4 4.8 4.3 18.9 18.1 19.5 19.5 17.1 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 28#28Customer deposits increased 23% driven by IBDS Deposits grew 23% YTD during 9M 2023 mainly driven by increase in interest-bearing deposits IBDs rose 41% YTD from large inflows to time deposits amid higher interest rate environment NIBDs were stable YTD Retail and Corporate deposits declined by 6% and 19% respectively; Treasury and Investment deposits grew 56% due to inflow from public institutions Deposits Movement YTD (SAR bn) +23% 15.8 0.4 69.6 Deposits by segment (%) +23% Deposits YTD Retail 27% Corporate 63% 10% +3% Deposits QoQ Others (0.3) (0.1) NIBD % of total 44.9% 85.5 49.6% a 39.9% 40.3% 36.7% FY 22 Time Demand Other Savings 9M 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 29#2914% growth in 9M 2023 earnings driven by NCSI growth moderated by lower recoveries Net income increased 14% YoY in 9M 2023 driven by strong growth of 26% in operating income, partially offset by an increase of 18% in operating expenses and a rise in impairment charges from elevated recoveries in the prior year Net income during 3Q 2023 declined 16% YoY despite 17% income growth due to elevated recoveries in 3Q 2022, while it increased by 4% QoQ Total Operating Income Movement YoY (SARMn) +26% 2,663 30 2,954 SAR Million 3Q 2023 3Q 2022 A 9M 2023 9M 2022 A 2,348 Net special commission income 887 758 +17% Fee and other income 118 100 +17% 2,592 362 Total operating income 1,005 858 +17% Operating expenses before impairments (405) Provisions for credit and other losses (87) 149 (364) +11% -159% 2,954 (1,232) (248) 58 2,017 331 2,348 +26% (1,048) +18% -531% +29% (2,087) +9% 9M 22 SCI SCE Fee & Other Inc. 9M 23 Net Operating Income 512 643 -20% 1,473 Share in earnings of associates 24 28 -12% 55 1,357 55 +9% Net Income Movement YoY (SARMn) Income before provisions for Zakat 537 671 -20% 1,528 1,412 +1% +8% +14% Provisions for Zakat (75) (121) -38% (214) Net Income attributed to equity holders 462 550 -16% 1,314 (254) -16% 1,158 +14% 576 30 0 40 1,314 Earnings per share 0.45 0.53 -16% 1.21 1.10 Net interest margin 2.98% Cost to income ratio Cost of risk 40.3% 0.43% Return on tangible common equity 13.3% 16.4% 3.05% -7bps 3.07% 42.4% -2.1ppt -0.95% +139bps 12.2% -3.1ppt 41.7% 0.43% +11% 2.83% +24bps 44.7% -2.9ppt -0.16% +59bps 10.7% +1.5ppt 1,158 (184) (306) 9M 22 NSCI Fee & Other Inc. Operating Impairments Associates Inc. exp. Zakat 9M 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 30#30NSCI growth of 29% YoY on 19% growth in earning assets and a 24bps NIM expansion NSCI growth of 29% YoY was underpinned by 19% growth in average earnings assets as well as NIM expansion of 24 bps reflecting higher asset yield from increased benchmark rates NIM NIM -- Asset yield --COF Average Earning Assets (SARbn) 3.07% ▲ Consumer loans Corporate & other loans ☐ Investments 6.07% 6.23% Asset yield increased by 2.55 ppts YoY to 6.37% in 9M 2023 while of cost of funding increased by 2.53 ppts to 3.63% 6.37% 107.4 SAMA & bank placements 110.3 112.9 95.2 96.8 4.20% 6.1 6.9 6.6 5.9 6.0 3.82% 3.23% 3.44% NIM also increased by 24bps YoY in to 3.07% in 9M 2023, however it declined by 5bps QoQ due to the shift in the deposit mix 2.83% 3.63% 3.07% 29.4 29.8 30.8 28.4 28.3 2.92% 3.18% 3.12% 1.10% 1.42% 50.7 52.1 61.5 63.3 65.4 10.3 10.5 10.3 10.2 10.2 9M 22 FY 22 1Q 23 1H 23 9M 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 NSCI Movement YoY (SARmn) NIM Movement YoY +24bps▲ +29% 471 221 42 1,930 0.42% +24bps 0.25% 1.90% 2,592 2.83% 3.07% 2,017 (2,087) -0.02% -2.32% 9M 22Corporate & other loamsestments SAMA & bank placements Consumer loans COF 9M 23 9M 22 Corporate & other loans Inv. SAMA & Consumer bank placements loans COF 9M 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 31#31Growth in fee and other income driven by foreign exchange and investment income Fee & other income increased 9% YoY in 9M 2023, mainly driven by foreign exchange and investment income Foreign exchange income was well supported by strong transaction volumes in travel card and remittance products Investment related losses decreased due to lower mark to market fair value losses Fee from banking services declined due to lower fees from other banking services Fee & Other Income Movement YoY (SARmn) +9% 21 14 331 Fee And Other Income (SARMn) +14% 126 118 118 103 102 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation (4) 362 9M 22 FX Inv.-related Banking services 9M 23 Fee & Other Income by segment (%) - 9M 23 Fee Income From Banking Services (SARmn) -9% Banking services 44% 65% - EX Inv.-related | Trading & Fund Mgmt. Trade finance ☐ Corporate & retail finance Other 81 82 69 71 58 57 73 3 13 6 31 31 25 30 30 33 39 35 27 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 P. 32#32An 18% increase in operating expenses reflects implementation of strategic initiatives Operating expenses increased 18% YoY in 9M 2023, mainly due to increase in general & administration expenses and employee related costs as bank continued to execute on its digital transformation and strategic growth initiatives Cost to income ratio continued to fall, reaching 41.7% in 9M 2023, a decline of 2.9ppts YoY Operating expenses were stable QoQ in 3Q 2023 given better cost controls, resulting in cost to income ratio for the quarter reaching 40.3% Operating Expenses Composition (%) -9M 23 Employee-related 5% 10% G&A Operating Expenses (SARmn) +11% 421 364 384 406 405 48% ☐ Depreciation & amortization Premises 37% Operating Expenses Movement YoY (SARmn) +18% 123 44 9 1,048 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Cost to income ratio 43.9% 43.9% 00 8 1,232 44.7% o 42.4% 41.7% 9M 22 G&A Employee-related Depreciation & amortization Premises 9M 23 9M 22 FY 22 1Q 23 1H 23 9M 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 33#33Credit quality improved further with NPL ratio at low levels Impairment for loans Other impairments Cost of risk 249 10 81 80 87 239 Total impairments increased SAR 306mn YoY in 9M 2023 mainly due elevated recoveries in 9M 2022 totaling SAR 294mn vs. SAR 45mn in 9M 2023 Cost of risk at 0.43% in 9M 2023 remained low Non-performing loans ratio decreased by 9bps YTD to reach 1.48% NPL coverage ratio at 169.1% as of 9M 2023 improved by 6.1 ppts YTD, stage 3 expected credit loss coverage also moved up to 49.3% on additional provisioning of certain exposures Impairments (SARmn) 7 NPL Ratio 81 80 87 -0.16% 0.45% 0.43% 0.25% 0.43% (156) (149) 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 9M 22 FY 22 1Q 23 1H 23 9M 23 NPL Coverage Ratio ECL Coverage -- Stage 1 Stage 2 Stage 3 47.0% 44.4% 49.3% 47.3% 43.9% 1.80% o 1.57% 1.50% 1.43% 163.0% 165.8% 169.8% 174.4% 1.48% 169.1% 12.2% a 9.6% 8.7% 9.0% 9.6% 0.6% 0.6% 0.5% 0.5% 0.5% 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 34#34Solid liquidity, funding and capital position with adequate buffers LCR declined by 18.3ppts during 9M 2023 to 201.6%, while NSFR moderated 3.6ppts to 111.1% Liquidity Ratios -LCR --NSFR Loans to Deposits Ratio SAMA LTD --Headline LTD As of 9M 2023, the SAMA regulatory LTD ratio was within required levels at 74.4% 219.9% 204.7% 99.0% Total capital (Tier 1 + Tier 2 regulatory capital) declined modestly by 3% during 9M 2023 as net income generation was offset by the dividend payments and reduction in Tier 1 sukuk 190.3% 93.0% 93.5% 206.8% 201.6% 95.7% o 75.3% - о 93.9% 74.4% 111.1% 116.8% 79.0% 76.4% 75.6% 114.6% 118.0% 110.8% RWAs declined 8% YTD during 9M 2023 CAR was 19.3% and the Tier 1 ratio stood at 18.6% 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Total Regulatory Capital Movement (SARbn) Risk Weighted Assets (SARbn) Credit risk Capital Ratios CAR -CET1 ratio - Tier 1 ratio Operational risk 20.7% Market risk 20.1% -3% 1.3 17.9 91.6 98.2 17.4 85.1 87.2 90.2 19.3% a 18.6% a 18.2% 20.0% 19.4% 19.3% 18.6% 0.9 5.1 3.0 4.6 5.4 7.1 6.9 17.6% 4.0 4.0 4.0 (0.6) (0.9) (0.4) 16.8% 85.6 89.8 15.1% 76.2 81.7 74.0 16.3% 15.3% 14.4% 4Q 22 Net Income T1 Sukuk Dividend Other paid 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 35#35The Saudi Investment Bank-3Q 2023 Investor Presentation 2023 Guidance P. 36#362023 Guidance and Outlook 2022A 9M 2023A 2023 GUIDANCE +19% +16% YTD Balance Sheet LOANS & ADVANCES YoY NET INTEREST MARGIN 2.92% +33bps YoY 3.07% Mid to high teens 3.00% 3.05% +24bps YoY Profitability COST TO INCOME RATIO 43.9% 41.7% 41% -42% -2.5ppt YoY -2.9ppt YoY RETURN ON TANGIBLE EQUITY Asset Quality COST OF RISK Capital TIER 1 RATIO 9.9% +3.Oppt YoY 12.2% +1.5ppt YoY 0.25% -17bps YoY 17.6% -2.5ppt YoY 0.43% > 12.0% 0.45% -0.50% +59bps YoY 18.6% -1.Oppt YTD DRIVERS Strong growth in Corporate and Private Banking loans; guidance unchanged from 2Q 23 Guidance downgraded from 3.10% - 3.20% on faster than expected shift in deposit mix Guidance upgraded from 42% - 43% on improved cost control Guidance modestly upgraded to >12.0% from >11.5% on increased certainty Guidance tightened from 0.45%- 0.55% on increased certainty > 18.75% Guidance unchanged as 4Q 23 net income generation to improve T1 FOCUSED ON DELIVERING STRONG RESULTS ACROSS KEY PERFORMANCE INDICATORS The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 37#37The Saudi Investment Bank-3Q 2023 Investor Presentation Segmental Performance P. 38#38Strong operating performance across segments Total Operating Income Movement YoY (SARmn) +26% 316 10 2,348 98 213 (31) Net Income Before Zakat Movement YoY (SARmn) 2,954 1,412 (22) (100) +8% 259 10 (31) 1,528 9M 22 Retail Corporate Treasury Asset Mgmt. Other & Inv. & Brokerage 9M 23 9M 22 Retail Corporate Treasury Asset Mgmt. & Inv. & Brokerage Other 9M 23 Loans & Advances Movement YTD (SARbn) +16% 11.0 68.9 0.4 (0.1) Deposits Movement YTD (SARbn) 80.2 69.6 +23% 19.1 0.2 85.5 (1.5) (1.9) 4Q 22 Retail Corporate Other 3Q 23 4Q 22 Retail Corporate Treasury Other 3Q 23 & Inv. The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 39#39Segmental breakdown Total Operating Income (SARmn) Retail Corporate Net Income Before Zakat (SARmn) Treasury & Investment Other Asset Mgmt. & Brokerage +17% 858 917 960 989 1,005 51 56 52 42 38 147 208 346 301 311 385 356 337 368 382 307 412 292 318 324 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Retail Treasury & Investment ☐ Other Corporate Asset Mgmt. & Brokerage -20% 671 17 475 516 537 137 23 33 25 300 11 243 205 227 463 82 79 235 268 216 108 191 97 61 82 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Loans & Advances (SARbn) Retail Corporate Other Deposits (SARbn) ☐ Retail Corporate Treasury & Investment Other +16% +23% 64.7 68.9 73.6 77.3 80.2 79.2 82.7 85.5 1.8 1.8 1.7 67.6 69.6 2.2 1.8 0.9 1.1 1.1 1.8 0.9 43.1 47.3 52.5 55.5 58.3 42.3 50.9 52.9 30.5 33.8 10.9 10.2 9.3 7.8 8.2 19.4 19.8 20.2 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 19.3 20.0 24.3 24.7 26.7 22.8 23.2 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 40#40Corporate SAR Million 3Q 2023 3Q 2022 A 9M 2023 9M 2022 Δ Net Income Before Zakat Movement YoY (SARMn) Net Special Commission Income 328 302 +9% 939 732 +28% -12% Fee & other income 55 54 +1% 149 143 +4% 207 5 Total operating income 382 356 +7% 1,088 875 +24% 818 718 (31) Operating expenses (72) (67) +7% (220) (189) +17% (281) Provision for credit and other losses (43) 174 -124% (149) 132 -213% 9M 22 NSCI Net income before zakat 268 463 -42% 718 818 Fee & other Operating income Expenses Impairments 9M 23 -12% Loans & Advances (SARbn) Deposits (SARbn) Net Income Before Zakat (SARmn) +23% -19% 52.5 55.5 58.3 10.9 463 10.2 47.3 9.3 43.1 7.8 8.2 -42% 268 216 235 79 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 41#41Retail SAR Million 3Q 2023 3Q 2022 A 9M 2023 9M 2022 Δ Net Income Before Zakat Movement YoY (SARMn) Net Special Commission Income 294 278 +6% 846 740 +14% Fee & other income 30 29 +4% 89 97 -8% -8% Total operating income 106 324 307 +5% 934 837 +12% 262 240 (8) Operating expenses (198) (173) +14% (596) (500) +19% (97) (23) Provision for credit and other losses (44) (26) +70% (98) (75) +31% 9M 22 NSCI Fee & other income Net income before zakat 82 108 -25% 240 262 -8% Operating Expenses Impairments 9M 23 Loans & Advances (SARbn) +2% 19.4 19.8 19.3 20.0 20.2 Deposits (SARbn) Net Income Before Zakat (SARmn) -6% -25% 26.7 24.3 24.7 22.8 23.2 191 108 97 82 61 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 42#42Treasury and Investments SAR Million 3Q 2023 3Q 2022 A 9M 2023 9M 2022 A Net Income Before Zakat Movement YoY (SARMn) Net Special Commission Income Fee & other income 261 163 +60% 802 527 +52% 50 44 +13% 156 115 +36% +62% Total operating income 311 208 +50% 958 642 +49% 275 41 675 Operating expenses (108) (99) 416 +9% (338) (282) +20% (56) (2) Provision for credit and other losses (0) 1 -146% (1) 1 -147% Share in earnings of associates 24 28 -12% 55 55 +1% 9M 22 NSCI Net income before zakat Fee & other Operating Impairments Associates income Expenses 9M 23 227 137 +65% 675 416 +62% Investments (SARbn) +16% 26.9 28.2 30.1 31.7 32.8 Deposits (SARbn) Net Income Before Zakat (SARmn) +56% 50.9 52.9 42.3 137 33.8 30.5 82 +65% 243 227 205 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 43#43Asset management and brokerage SAR Million 3Q 2023 3Q 2022 A 9M 2023 9M 2022 Δ Net Income Before Zakat Movement YoY (SARMn) Net Special Commission Income 15 13 +12% 42 34 +23% Fee & other income 37 29 +28% 117 115 +2% +15% 8 3 0 71 52 42 +23% 159 149 +7% Total operating income Operating expenses Provision for credit and other losses Net income before zakat AUM Related Fee Income (SARmn) 14.8 10.4 81 (0) (27) (25) +8% (78) (78) -0% 0 0 -100% (0) (0) +80% 9M 22 NSCI 25 17 +45% 81 71 +15% Fee & other Operating Impairments income Expenses 9M 23 Brokerage related fee income (SARmn) Net Income Before Zakat (SARmn) +42% +16% +45% 22.8 16.3 33 21.1 21.1 13.6 23 25 11.7 11.6 11.9 17 11 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 The Saudi Investment Bank - 3Q 2023 Investor Presentation P. 44#44The Saudi Investment Bank-3Q 2023 Investor Presentation Appendix P. 45#45البنك السعودي للاستثمار The Saudi Investment Bank SAIB Investor Relations For more information, please visit www.saib.com.sa/en/investor-relations or contact SAIB Investor Relations at [email protected] The Saudi Investment Bank-3Q 2023 Investor Presentation P. 46