Investor Presentaiton

OUR FINANCIAL RESULTS | HIGHLIGHTS Our key messages Balance Sheet Balance sheet contracted by (-1.8% QoQ) mainly due to a decline in cash at interbank placements (SAR 8Bn QoQ) as the Bank decreased its excess cash balance to optimize its balance sheet. Loan portfolio at SAR 124Bn grew by (2.4% QoQ) driven by overall improved credit demand (corporate lending 1.7% QoQ and retail +8.0% QoQ). Total deposits at SAR 142Bn declined by (-1.8% QoQ) driven by lower CBDs which resulted in favorable deposit mix. NCBD / CBD at 53%/47% vs. 52%/48% in Q1 2019. Revenues at SAR 3.4Bn up by (0.6% YoY) driven by net interest income offsetting lower fee income. Revenue growth excluding impact of Allianz Saudi Fransi shares sale that took place in 2018 is (+3.5% YoY). Well-controlled expenses (-11.3% YoY) driven by cost discipline on all expenses items. Loans (SARbn) 121.3 2.44% Deposits (SARbn) -1.79% 124.2 144.8 142.2 Q1'19 Q2'19 Q1'19 Q2'19 Revenue (SARmn) Net Income (SARmn) 0.6% -9.0% Income statement 3,409 Net income before zakat at SAR2.1Bn up (+7.5% YoY) excluding impact of ASF shares sale & up (+2.4% YoY) with ASF shares sale. 3,429 1,891 1,720 Net Income after zakat at SAR 1.7Bn declined by (-9.0% YoY) as zakat expenses increased by (+155% YoY) due to different zakat provisioning calculation. H1'18 H1'19 H1'18 H1'19 NPL (%) Cost of Risk (%) Assets Quality, Capital and Liquidity ■ Total Impairment charges at SAR 303Mn in H1 2019 compared to SAR 201Mn in H1 2018. 2.71% 0.54% ■ Cost of risk ratio is at 0.54%. NPL ratio at 2.66%. Coverage ratio 120.7%. 0.46% 2.66% Capital strength, CAR remains at very solid level of 18.6%. ■ Well positioned loan-to-deposit ratio at 87.4%. Q1'19 H1'19 Q1'19 H1'19 13 BSF Investor Relations

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