Saudi Arabia Banking Pulse

56.7 ------ 219.6 -3.9 61.2 157.3 Improved Stable Worsened 6 Cost of risk improved for seven banks; SNB reported substantial decrease in cost of risk - Cost of risk (bps) – net of reversals -162.9 46.3 20.3 -3.0 البنك السعودي الشرعية ساب SABB بنك الرياض مصرف الراجحي SNB Al Rajhi Bank riyad bank 6.2 Note: Scaling and some numbers might not add up due to rounding Source: Financial statements, investor presentations, A&M analysis 3.1 74.8 80.0 5.2 ! 60.1 100.4 Dangus Fransl anb مصرف الإنماء العربي alinma bank Q2'21 Q3'21 Q2'21 Av Q3'21 Av -40.2 -22.4 89.6 112.0 بنك البلاد Bank Albilad 16 -1- 68.2 68.6 0.3 34.5 76.1 -41.5 البنك السعودي للاستثمار بنك الجزيرة The Saudi Investment Bank BANK ALJAZIRA 108.2 133.8 53.54 103.3 KEY TAKEAWAYS Cost of risk decreased for seven of the ten banks in Q3'21 • SNB reported the highest fall in cost of risk (162.9 bps QoQ) to 0.57% in Q3'21, driven by: ■ SNB reported impairments of SAR 0.7bn in Q3'21 compared to SAR 2.4bn in Q2'21 Impairments decreased substantially by 70% QoQ after it spiked in Q2'21, due to higher reported impairments by SNB following the merger BJAZ reported the highest increase in the cost of risk by ~26 bps to 1.3%, driven by ■ Significant increase in provisioning by 27.3% QoQ compared to last few quarters ALVAREZ & MARSAL

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