Our Journey. The journey begins. Creation of All Rajhi Trading & Exchange Corporation. Conversion of Al Rajhi to a joint Stock Exchange Company

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2 Introduction Founded in 1957, Al Rajhi Bank ( Al Rajhi or ARB ) is one of the largest Islamic banks globally. With assets of USD 59 billion plus, equity of over USD 8 billion and a team of 7,5 employees, Al Rajhi is one of the leading and most progressive banks in the Kingdom of Saudi Arabia ( KSA ). With over 5 years of experience in banking and trading activities, the various individual establishments under the Al Rajhi name were merged into the umbrella Al Rajhi Trading Exchange Corporation in 1978, and it was in 1988 that the Bank was established as a Saudi shareholding company. The Bank operates in multiple segments and continues to grow through the diversification of income resources and the development of the investment and corporate banking sectors, which where built on a strong retail base. Al Rajhi has been one of the most profitable GCC banking entities for the last few years, with the profits of exceeding USD 1.7 billion throughout.

3 Our Journey 1958 The journey begins 1978 Creation of All Rajhi Trading & Exchange Corporation 1987 Conversion of Al Rajhi to a joint Stock Exchange Company 26 Launch of Al Rajhi Corporate Banking

4 Our Journey 27 International Expansion to Malaysia Establishment of Rajhi Capital International expansion to Kuwait International Expansion to Jordon

5 Key statistics No. of branches Over 5 No. of remittance (Tahweel Centers) 154 ATMs 3, Point of Sales (POS) terminals 23, Employees 7,5 Source: Al Rajhi Annual Reports

6 Trade Finance Global Trade Finance Al Rajhi Global Trading Finance is a service designed to facilitate your international and domestic trade procedures. Our dedicated team of experts studies market drivers, analyzes your needs and provides you with solutions that take your business forward. Our cutting edge etrade Solution makes trade easier and enables us to successfully streamline your import and export processes with swift processing, coverage, total transparency and control. This unique solution is completely Shariah compliant and yet meets all essential trade business needs. etrade Finance Integrate our web-based system into your workflow in order to introduce new levels of convenience, security and effectiveness to your company. Al Rajhi Bank s etrade Internet Banking System is one of the most comprehensive platforms and allows you to conduct your Trade Finance business with us electronically. etrade helps maximize the benefits the Internet offers your business with faster document and report preparations, an improved geographical coverage and mobility, and total transparency and control. We continue our innovative efforts to excel competitively and make your success our first priority.

7 Global Trade Finance Products Export & Import Documents Al Rajhi Bank can remit trade documents representing the ownership of merchandise. At maturity or at sight, Al Rajhi Bank receives the funds and pays the exporter. There is no obligation for Al Rajhi Bank to pay the exporter until the full funds are received. Export Letter of Credit The importer s bank irrevocably commits to payment provided that the exporter complies with the terms and specifications of the letter of credit. Al Rajhi Bank advises and negotiates documents and undertakes payment to the exporter, acting on the exporter s behalf by adding its confirmation to the letters of credit, if required (confirmation of letter of credit). Letters of Guarantee A Letter of guarantee is an undertaking by Al Rajhi Bank on behalf of its customer to pay a certain sum of money to a beneficiary in case of default by the applicant in meeting certain terms and conditions of an agreement and contract. Al Rajhi Bank issues or advises all types of letters of guarantee, which comply with international standard, local regulations and the bank s principles.

8 Cash Management Products Al Mubasher ecorporate Al Mubasher ecorporate is an online service designed for corporate customers to perform banking transactions through the Internet. Customers can conduct their banking transactions easily and safely, 24 hours a day, from any location. Payroll Using Al Mubasher ecorporate you can pay your employees salaries easily and safely by either depositing directly into their accounts with Al Rajhi Bank or to any local bank. Our Payroll services are cost and time effective, minimizing the need for physical cheques. Employees salaries can be credited and transferred using Al Mubasher ecorporate. Cash Collection Al Rajhi Cash Collection Service is designed to assist you in managing day-to-day cash collections and regular fund management activities, giving you ample time to focus on other areas of business. Our Cash Collection team of experts coordinate and ensure that your receivables and recurring payments are collected in an efficient and timely manner in order to optimize utilization of funds. We also pioneer the Banking at Your Doorstep concept in the Kingdom by offering cash and cheque collection services from your premises, at your preferred time.

9 Cash Management Products Cash Deposit Transactional Banking Service at Al Rajhi Bank recognizes the needs of its corporate customers and the importance of offering new and progressive services that will enhance the level of service in a quick and convenient way. One of these needs is Cash Management. To make it easier and quicker for our corporate customers to manage cash without effort, we have designed a new service that pioneers the concept of Banking at Your Doorstep in Saudi Arabia. Dividend Distribution Al Rajhi Dividend Distribution Service is aimed at offering wellcoordinated and structured solutions that assist you in optimizing dividend payments to your shareholders. Our Dividend Distribution team is proficient in coordinating your payments and organizing the distribution of dividends in many ways like internal transfer, SARIE, cheques and branch counters Point Of Sale Al Rajhi Point of Sale (POS) service is an innovative electronic money transferring system that allows you to pay for your purchases through your ATM and credit card at any POS enabled retailer. Al Rajhi is the leading POS service provider in the Kingdom, operating the largest network of POS terminals with over 21, terminals across the Kingdom. The national electronic POS network gives you the freedom to transfer money from your Bank account to the beneficiary s bank account, as long as the accounts are within the network of SPAN, GCC Net, MASTERCARD and VISA.

10 Cash Management Products Transaction Referencing The Cash Management Products team has always endeavored to be at the forefront of providing innovative products and services that add value to our corporate customers. The Cash & Cheque Collection service is an already operational service with active customers all across the Kingdom. Understanding our customers and analyzing market offerings helped us recognize the need to offer the service of Transaction Referencing. Transaction Referencing is a new service provided by the Cash Management Department in order to help our corporate customers track their daily transactional inputs by any code the customer defines to his clients or representatives. Escrow Account The escrow account is a new product that targets all the real estate developers in Saudi Arabia who want to sell their units on the map. In April 1, 29, the Ministry of Commerce in Saudi Arabia approved a law that allowed them control over the selling of real estate units (on the map). This means that any real estate company cannot announce or sell real estate units (on the map) in any way, unless it obtained approval from the new committee formed by the Ministry of Commerce to organize all sale activities of real estate developers. Direct Debit Service It is an electronic, easy and quick service designed to directly debit payments from the customer s account for a service or product sold on an installments basis, without the need for the customer to visit the branch in order to pay the due amount. Direct Debit service requires the customer, who has to pay the installments, to fill the Direct Debit form, get it signed and verified by his own Bank stating clearly the amount to be deducted. The form is then submitted to the company in order to add the customer s name and all the information required. Once the steps above are complete, all information will be sent to Al Rajhi Bank in order to debit the due amount according to the information provided from the customer s account and easily deposit all amounts into the company s account.

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12 Financial Institutions As domestic and international financial institutions become increasingly involved in commodity and trade finance, there is a greater need for customized banking and trade services. Al Rajhi seeks to bridge the gap where a financial institution may not be able to address its growing trade finance needs on its own. The Bank is the loyal partner for financial institutions providing top class products and services to their valued partners. It is well-known for its superior partnership knowledge, which is derived from being one of the leading banks in KSA in terms of market value and branch networks. It possesses a highly qualified and experienced FI team, along with skilled product specialists to provide the best in-class services in a Shariah compliant manner. The inspiration of Al Rajhi comes from the ultimate strength of relationships combined with a product expertise that leads to long-term and successful partnership.

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14 International presence Malaysia On the 5th of February 27, Al Rajhi Bank Malaysia was officially launched, making it the first Arab bank to start operations in South East Asia. Al Rajhi Bank established a strong presence by initially opening 12 branches operating in Kuala Lumpur, the capital city, and around Klang Valley. To date, a total of 2 branches are open for business, including 5 branches each in the states of Kelantan, Penang, Johor and Serawak. Jordan Al Rajhi Bank s Jordan branch started operations in March, with two branches located in Shmesani (main branch) and Abdullah Ghosheh street. Kuwait Following the successful entry of Malaysia in 27, Kuwait became the 2nd foray of Al Rajhi Bank into the international banking market and it is an exciting and highly significant development in the history of the Bank. Leveraging on its solid, established principles and operations, Al Rajhi Bank Kuwait strives to serve all the needs of its retail and corporate clientele by using the latest banking technology to provide fast and convenient services and help build long-term and fruitful relationships with its clients.

15 Credit ratings Robust credit ratings of A1 from Moody s and A+ from Fitch were received. These ratings were driven by the Bank s healthy customer franchise in the retail sector, excellent profitability, concentration in loans, deposits and strong capitalization. Agency Short-term Last change Standard & Poor s A1 6/ Moody s A+ 1/212 Fitch A+ 2/212 Source: Rating Agency Reports

16 Key financials (in Million USD) Total assets Total equity Operating income Net income Source: Al Rajhi Annual Reports

17 Key ratios (in %) 9 6 Loans to deposits Cost to income Return on assets CAR* Source: Al Rajhi Annual Reports; Bankscope *Capital Adequacy Ratio as defined by Tier 1 Capital

18 Key facts A financial multi-specialist group focuses on the banking business with a comprehensive spectrum of financial services and products for corporate, institutional and individual customers. Total assets Rank Customer deposits Market capitalization USD 58,883 billion 2 nd (Saudi Arabia) USD billion USD 29.4 billion Rank by total assets Source: Al Rajhi Bank Report, 31 March

19 Total owners equity USD millions Total assets USD millions 9, 6, 7,28 7,664 8,84 8, , 4, 43,566 45,528 49,29 58,883 3, 2, , 32, Customer deposits USD millions 46,247 37,448 32,142 3,962 2,1 1,4 Net income USD millions ,74 1,84 1,85 16,

20 Key awards Euromoney: Best Islamic Bank in the Middle East, February Euromoney Magazine has announced Al Rajhi Bank the winner of the Best Islamic Bank in the Middle East Award for as part of the Islamic Finance Awards, which was unveiled in February. The judging committee stated the reasons why Al Rajhi Bank was selected as the Best Islamic Bank in the Middle East in its report, describing it as the most successful bank in the Saudi market. This is the most essential market in the Middle East, as stated by Euromoney Magazine. Furthermore, the committee highlighted the Bank s Q3 financial results for and marked Al Rajhi Bank as the most profitable bank in the region. Middle East s Most Valuable Banking Brand, Al Rajhi Bank has been named the Most Valuable Banking Brand in the Middle East for as per the Brand Finance Top 5 Banking Brands annual report. The value of the Al Rajhi Bank brand has increased to $1.54 billion in compared to $922 million in, boosting its brand value rank from 149 in to 19 in, with a rating of AA+ in compared to AA in.

21 Responsible Competitiveness Index RCI, For the third year in a row, Al Rajhi Bank received the King Khaled Award for the Responsible Competitiveness Index in attracting and developing local talents. Al Rajhi Bank was the only one to get an Award out of 115 corporations operating in the Kingdom. Best Interactivity Award, November Al Rajhi Bank was awarded the Best Interactivity Award for for Saudi Banks in the Islamic Banking Category. The Award was granted by the Banking Web Awards Organization, a member of the Pan Arab Web Awards. The Pan Arab Web Awards aims to promote professional and customer driven websites and the awards are granted based on the assessment of a panel of industry experts. These Awards are considered by many in the industry as one of the top award programs.

22 Most Outstanding Islamic Bank, May Al Rajhi Bank received the award for Most Outstanding Islamic Bank for. The Award was received in the Kuala Lumpur Islamic Finance Forum (KLIFF). Euromoney Award, May Al Rajhi Bank received the Euromoney Award for being the Best Bank in Saudi Arabia in. The Bank was rewarded during the annual ceremony of Euromoney Magazine, which was held in Beirut.

23 Best Real Estate Finance Program, May Al Rajhi Bank has been awarded the Best Real Estate Finance Program for 29 Award in the banking sector (Retail Finance), in Saudi Arabia. The Award came as a result of the Bank s performance in both finance amount and the number of individuals financed during the year. It was chosen by an independent committee appointed by the organizer of the 13th Riyadh Exhibition for Real Estate and Architecture Development, RESTATEX 13, operating in the Kingdom of Saudi Arabia.