Saudi Arabia Banking Pulse

4 NIM declined to multi-period lows in Q3'21 Yield on credit (Quarterly annualized) 5.4% 5.3% 5.2% 5.1% 5.0% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Loan-to-Deposit Ratio (LDR) X 91.5% 89.7% 90.0% 88.1% 87.2% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Cost of Funds (Quarterly annualized) 0.5% 0.4% 0.4% 0.4% 0.4% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Net Interest Margin (%, quarterly annualized) 3.15 3.12 3.02 3.12 Ill 3.01 KEY TAKEAWAYS NIM deteriorated by 11 bps QoQ to reach 3.01% after the sector-wide margin bounced back from its multi- period lows last quarter Yield on credit decreased by 22 bps QoQ, while cost of funds remained flat QoQ at 0.4% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Note: Relation between elements above represents a functionality and not necessarily an exact mathematical formula Source: Financial statements, Investor presentations, A&M analysis 10 ALVAREZ & MARSAL

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