Public

Establishing Samba’s ESG

credentialsSamba Financial Group's approach to ESG

Riyadh

27 APRIL 2020

1

1

Public 2

Content

1. Samba Financial Group at a glance Page 3

2. Society & Environment Page 16

3. Corporate Governance Page 24

- Case in point: Samba's Covid-19 response Page 32

4. Appendix Page 37

Samba Financial Group's Approach to ESG

Public 3

1. Samba Financial Group at a glance

Public 4

Introducing Samba Financial Group

65-year heritage with international pedigree, strong

governance and responsible banking principles

Samba operates through four segments

Samba is a domestic systemically important bank with 73 branches and 3,614 employees

1955 1980 2003

Created by

CitiBank

Launched as

Saudi American

Bank

Renamed Samba

Financial Group

after Citi exit

Public 52%

PIF 23%

PPA 15%

GOSI 10%

Business

Model

CORPORATEBANKINGGROUP

CONSUMERBANKING

GROUP

TREASURY &INVESTMENTS

INVESTMENT BANKING

Business

Model

35.3%37.3%

21.6%5.8%

Samba consistently captures ~10% market share in Saudi Arabia Samba's Shareholder Structure*

Operating

income

contribution

(FY 2019)

11% 11% 11%

FY2017 FY2018 FY2019

Total Assets

8% 8% 9%

FY2017 FY2018 FY2019

Loans

10% 10% 10%

FY2017 FY2018 FY2019

Deposits

11%9% 9%

FY2017 FY2018 FY2019

Attributable Profit

*Shareholdings include Hassana (GOSI) and Raidah (PPA)

Public 5

Samba's operating income and net income generation

Sustainable financial performance though market cycles

7.00 7.11 6.906.56 6.69

7.007.38

7.75 7.76 7.898.16

8.60

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Total Operating Income (SRbn)

4.44 4.55 4.43 4.30 4.334.51

5.015.21

5.01 5.02

5.55

4.62

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Net Income before zakat and taxation (SRbn)

Public 6

Samba has a track record of sustainable performance

Samba’s balance sheet strength, low NPL and high Capital ratios are key sources of its competitive strength179

186

187

193

197

205

217 235

231

228

230 25

60.0

50.0

100.0

150.0

200.0

250.0

300.0

Total Assets SRbn

134 147

133

137 149 158

164

172

172

168

170 180

-

20

40

60

80

100

120

140

160

180

200

Customer Deposits SRbn

98

84

80 89 1

03 113

124

130

125

118

114

14

2

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Net Loans SRbn

1.8

2

3.3

2 3.7

4

2.9

9

2.2

1

1.7

3

1.3

1

0.8

4

0.8

5

0.9

4

1.2

8

1.3

3

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

NPL Ratio %

Managing NPLs during the financial crisis

14.1

0

17.1

0

18.9

0

19.2

0

20.0

0

19.4

0

19.9

0

20.1

0

22.5

0

21.1

0

22.7

0

21

.10

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Total Capital Ratio %

13.1

0

16.0

0

17.8

0

18.1

0

19.0

0

18.6

0

19.2

0

19.5

0

21.8

0

20.6

0

22.1

0

20

.50

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Tier 1 Capital Ratio %

Public 7

Samba's sound credit ratings highlights key strengths

Rating agencies recognize Samba's management team, financial standing and performance

A1Stable

"Samba Financial Group's (Samba) A1 deposit ratings are at the same level as Saudi Arabia's A1 issuer rating and capture: (1) the bank's solid Baseline Credit Assessment of a2; and (2) a one-notch uplift based on our expectation of a very high likelihood of government support."

A-"SAMBA has a well-entrenched corporate franchise, which is the fifth-largest in the kingdom with a 10% market share of corporate credit. SAMBA banks the largest companies in the kingdom and is a key player in advisory, trade finance and capital markets."

BBB+Stable

"We believe SFG has a leading domestic franchise, with experienced senior management delivering superior profitability."

Public 8

We are building a sustainable bank for the future

Samba has the desire to become one of the most sustainable commercial banks in the region

We adhere to the principle of social solidarity, which is a key value underlying our humanitarian mission and

contribution to society

We are working to reduce our ecological footprint; starting with our new 'green' head office

We engage in an ongoing dialogue with our stakeholders

Society &

Environment

Samba operates a highly efficient bank and is performing well in a challenging business environment

The bank's capital adequacy ratio (21.1%) is one of the highest in the region

Solid

Foundation

The board of directors and senior management strongly uphold the highest standards of corporate

governance in Saudi Arabian banking sector

We believe that strong corporate governance is vital to the continuous growth of the group

Strong Corporate

Governance

SR256 bnAssets

SR142 bnLoans

SR180 bnCustomer Deposits

SR85 bnInvestments

SR45 bnEquity

Public 9

We are focused on digitalizing Samba

91% of bank-wide transactions

(financial and non-financial)

have been executed via digital

channels with 43% stemming

from SambaMobile.

The bank strives to transform customer experience through innovation and digital channels; 2019 highlights

51% of Samba customers are

registered in digital channels.

99% of main financial

transactions were performed

digitally with 54% stemming

from SambaMobile.

36% of overall cards payments

have been executed through

mobile payments and NFC

contactless technology In 2019.

91%

99% 36%

51%

Public 10

Samba's future value creation builds on an ESG mindset

Given the nature of our business, we seek to create and sustain long-term value for all our stakeholders

Profitable

Growth

Empowerment &

Transformation

Human

Development

Shareholder

Returns

Customer

benefits

Societal

Impact

What we depend on What we deliver

Human

Capital

Innovation

Capital

Relationship

Capital

Social

Capital

Financial

Capital

Natural

Capital

Strategic

Input

New SegmentsLaunch new propositions to Mass,

SME, Wealth segments

DigitalTransform customer experience

through digital transformation

TechnologyBuild a modern, flexible data &

technology foundation to support

digitization

CapabilitiesStrengthen core foundations

through talent acquisition &

partnerships

ProductivityAccelerating customer acquisition

& cross-sell

HealthDrive organization wide cultural

and mindset change

Strategic

Outcome

What we focus on

Public 11

To Samba, ESG "is just good business"

"ESG is simply

a new name for

the way we

have always

done business."

Rania Nashar, CEO

Rania Nashar is the first female CEO of a listed commercial bank in Saudi Arabia

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Good business - the Samba Way 2.0We pride ourselves on having our own unique way of life called the SambaWay, encouraging trust and mutual support amongst our customers, employees and shareholders.

Respect and Balance We believe that equality and treating everyone fairly is something we are known for.

Customer Focus A customer's satisfaction is of prime importance to us and we make sure that our customers are happy with every facet of our banking services.

Integrity We inspire confidence in our customers, shareholders and ourselves by keeping a deep hold on our traditional values.

Learning Every single day, we strive to learn and grow from our experience as individuals and as an organization.

Accomplishment We take great pride in delivering quality products and services.

Public 13

The Saudi Market & Financial System is in transition

Samba operates in a fundamentally strong and well-regulated market environment

SAMA and CMA oversee a world-class regulatory environment

Excellent

Regulation

Vision 2030 has already transformed the nation; this trend will continue

to accelerate

Country

Transformation

KSA Market Value USD 2.3 trillion (incl. Aramco)

Host to world's largest-ever IPO

Largest Capital

Market in MENA

Public 14

Samba plays an active role in delivering Vision 2030

Three key themes are driving both Vision 2030 and Samba's approach to the future

A Vibrant Society A Thriving Economy An Ambitious Nation

95% of staff Saudi Nationals

Gender Balance - 11% female

workforce in 2019 up 1.7x since 2017

Engaged workforce - Staff

engagement levels are high and

rising

Outstanding training and

development via Samba Academy

The next generation - Highly

successful graduate programs

Samba disbursed SR1.9bn in new

mortgage loans in 2019 to help

people own a home

Private sector growth and

imminent round of privatisations

SME lending in focus – Samba has

lent more than SR18bn to SMEs

Public-Private partnerships -

Samba is a major player in

infrastructure and project finance

The banking sector is crucial to

delivery of Vision 2030

Capital Markets - Samba has a

strong investment banking track

record and was the lead collecting

bank for Saudi Aramco's IPO

Infrastructure and project finance:

Samba is #1 Saudi bank

Samba is fully supportive of and committed to the Saudi Government

Public 15

Samba's Vision and Values

‸

Samba's Vision directly translates into the bank's core values

We have a strong resolution and commitment to provide the right

solutions, advice and choices while consistently delivering top-notch

services.

Dedication to

customers

We pride ourselves on a work environment that embraces excellence as

a discipline.

Commitment to

our people

We focus relentlessly on delivering quality. We encourage innovation

and initiative, place great emphasis on communicating freely and

transcending business boundaries.

Improving

ourselves

We believe in never compromising on our integrity. We hold laws and

regulations in the highest regard and undertake regular community

programmes.

Sound corporate

citizenship

Our business strategy has a long-term perspective and is finely attuned

to market conditions.

Superior returns

to investors

Samba Vision

To be the foremost

financial institution in

Saudi Arabia.

Providing world-class

solutions to our

customers.

Not just meeting

customer needs, but

exceeding expectations.

Investing in people.

Benefiting local

communities.

Delivering superior

returns to our investors.

Core Values

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2. Society and Environment

Public 17

Samba brings positive change in people's lives

"The core of

our excellence

is Samba's

commitment

towards the

society."

Ammar Alkhudairy,

Chairman

Samba actively contributes to the national development, as well as the prosperity and well-being of Saudi Arabia

Public 18

People are Samba's finest asset

Samba makes consistent efforts to identify,

attract, and retain the best talent.

In line with nationwide efforts to employ Saudi

nationals, Samba achieved over 95% Saudization

rate in 2019

The bank's brand, infrastructure for growth and

development, HR policies, and talent

management practices have resulted in low

regrettable staff turnover of only 1.4% in 2019.

The bank continually strives to align itself to the needs and aspirations of its people

3,360

3,290

3,614

3100

3200

3300

3400

3500

3600

3700

FY 2017 FY 2018 FY 2019

Total Headcount

Public 19

0.50% 0.50% 0.7%

1.10%1.80%

3.7%

5.10%

4.90%

6.5%6.70%

7.30%

11.1%

FY2017 FY2018 FY2019

Female employees as % of total workforce

% females in senior management roles

% females in middle management roles

% females in junior roles

Samba has started to diversify its gender balance

Samba is the only Saudi bank with a female

CEO

The bank made a significant push and

increased its female talent to 11.1% from

6.7% in 2017

In 2019, Samba doubled the number of

women in middle management roles

As part of Samba's recruitment and

management policies, Samba affords equal

employment opportunity and

compensation to women

Hiring and promoting more women is a bank-wide strategic imperative

1.7x

Public 20

Samba focuses on training and development

Samba Academy has been delivering world class training with state of the art facilities since 1980

Samba Academy has delivered over

250 sessions of training courses

covering various fields, including:

Credit, Risk Management,

Compliance, Technology, Product

Knowledge, Leadership and

Management, FinTech, and Digital

Transformation.

Training Topics

covered in 2019

12,15213,421

16,722

FY2017 FY2018 FY2019

Total Training Days Delivered

3,869

4,840

5,545

FY2017 FY2018 FY2019

Total Number of Staff Trained

Public 21

37 38

108

FY 2018 FY 2019 FY 2020

Annual Budget (SRm)

Community contributions

Samba has always been an active contributor to Saudi society under its broad CSR program

Housing Support Program

Samba has pledged to provide

500 fully furnished houses to needy

families. Until now 2600 citizens have

benefitted from this program.

Education Support Program

Samba has developed a list of programs

that are designed to attract fresh young

Saudi graduates and prepare a new

generation of national talent and

leadership.

Needy Families Support Program

Samba's program to support needy

families includes a wide range of in-

kind and financial assistance to support

and develop the humanitarian and

social role of a long list of charities and

social institutions. Healthcare program

Samba pays special attention to an integrated care

program aimed at supporting cancer patients and

the disabled and providing them with the means to

overcome their illnesses.

SME support program

Samba’s contribution to the SME

financing program (Kafala) helps to

support business start-ups and owners

of SMEs.

Financial Literacy Program

The financial literacy program

developed by Samba intends to raise

awareness amongst citizens about the

importance of financial discipline and

to promote a saving habit.

Hiring, Training and Development Program

Samba makes consistent and rigorous

efforts to identify, attract, and retain

the best Saudi talent.

SR70m

increase

Covid-19 contribution

Samba contributed SR16.5 million to

the Health Endowment Fund as part of

the private sector initiative offered to

face the Covid-19 crisis.

Public 22

Samba's SME lending program in focus

Samba recognizes the importance of SMEs to the health and development of the national economy

In 2019, SME financing facilities totalled SR17.4bn

Samba increased 2019 SME lending by +12.3% year-on-

year

Samba operates an integrated credit program that

includes all the banking products SMEs need.

The bank also helps to support business start-ups and

owners through the Kafalah program, a loan guarantee

program.

In addition, we provide education workshops for SMEs

0.4

3.0 14.0

17.4

- 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

Total

SME Facilities in SRm

Facilities provided to SMEs

Micro Enterprises Small Enterprises Medium Enterprises

62 1 6 16

85

0 10 20 30 40 50 60 70 80 90

Total

# of customers

Kafalah: Number of Customers

Kafalah Customers Under Approval with Kafalah

Under Circulation Pipeline

252.7

8.5

26.0 58.0

345.2

0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0

Total

Facility Size SRm

Kafalah: Facility Size

Kafalah Customers Under Approval with Kafalah Under Circulation

Public 23

Environmental Impact

Samba will transfer 720 employees to its

new headquarters in King Abdullah

Financial District in 2020.

The new "Green Building" is LEED Gold

(Leadership in Energy and Design; gold

rating level) certified and is a good example

of Samba's desire to reduce energy

consumption.

Samba's branch footprint is low compared

to other banks in Saudi Arabia.

We are actively managing Samba's facilities to reduce the bank's carbon and energy footprint

64 68 73

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Samba's historically low branch footprint...

544

434

310

132 138 110 95 87 78 73 52

...compared to # of branches of Saudi banks

Source: SAMA, Jan 2020

Public 24

3. Corporate Governance

Public 25

Samba's board of directors and management team uphold the highest standards of corporate governance, in order to:

Conduct business in a transparent and responsible manner, with full accountability

Safeguard shareholders' investments and, ultimately, enhance their value

Ensure that the group's internal controls, risk management, and reporting procedures are well in place and functioning as they should

Board members apply high ethical standards in their decision-making process, considering the interests of all stakeholders.

Corporate Governance

Samba fully complies with both SAMA and CMA regulations

Samba firmly believes that good corporate governance is vital to the continued success of the group

ة ا دارة ا كا ة ا ا ر

General Directorate of Banking Control

-0-

دي ر ا د ا ة اSaudi Arabian Monetary Agency

______________________

ك ة ادئ ارئ ة ـا

ة د ة ا ر كة ا ا ة ا ك ا ا

Principles of Corporate Governance

for Banks Operating in Saudi Arabia

ث ا د ارس / اFirst Update / March 2014

Public 26

Adherence to the Code of Conduct and Ethics

Group-wide Coverage

Samba is always focused on maintaining the highest

ethical standards and reputation for integrity

Tone from the top

Starting with the Board of Directors, Samba ensures

adherence to policies and implements rules that

apply to every employee of the bank

Samba Code of Conduct and Ethics

Samba's Code of Conduct sets minimum standards of behaviour that are supplemented by additional policies

Code of Conduct

and Ethics

Samba Financial Group

More policies & guidelines that frame our business and conduct :

Performance Appraisals

Compensation Policy

Corporate Governance Guidelines Conflicts of Interest

Staff Responsibilities Leave Policy

Accounting Policy and Disclosure Manual Anti Money Laundering Anti Financial crime

Charter of the Board of DirectorsGender Equality

Corporate Social Responsibility

Performance Goals, Job Standards & Ranking

Salary and Title

Administration

Operational Risk

Risk Framework

Meritocracy

Bonus Program

Related Party Policy

Whistleblowing procedures

Clawback Provisions

Employee Trading

Policy

General Principles of

Consumer Protection

Public 27

Board of Directors

Directors' annual remuneration SR4.685m

Allowances SR685k

Samba's new Board of Directors has been in place since January 2019

Mr. Ali Husein Alireza

Board Member

Dr. Ibrahim Almojel

Board Member

H.E. Dr. Khalid AlSweilem

Board Member

Dr. Walid Abanumay

Board Member

Mr. Yazeed AlHumied

Deputy Chairman

Mr. Fahd Almufarrij

Board Member

Mr. Eyad Alhusain

Board Member

Mr. Ali Almansour

Board Member

Eng. Ammar Alkhudairy

Chairman

Mr. Abdullah Alrowais

Board Member

Information on the composition of the Board of Directors*

5/10

Non-Executive

Directors

5/10

Independent

Directors

10/10

Financial

Services

Experience

Remuneration of board members

10/10

Saudi Nationals

The Board of Directors

Attendance of Board Meetings

Meetings attended in FY2019

98.6%

Public 28

Senior Management

Samba has an experienced and seasoned senior management team

83%

17%

Diversity

Male Female

First female CEO of a listed commercial bank

(% of "top six" management team)

Samba's team of senior executives

Maan I. Al-KahmousHead of Consumer Banking

Khalid FagihHead of Corporate Banking

Rania Mahmoud Nashar

Chief Executive Officer

Abdulhaleem Sheikh

Chief Financial Officer

Beji Tak-TakChief Risk Officer

Mohammed Al-ShaikhDeputy CEO & Chief of Staff

Dr. Shujaat NadeemDeputy CEO for Business

Aiman GustiChief Auditor

Saleh Al-GethamiHead of Private Banking

Naif Al-SaifTreasurer

Suliman AlobaidChief Operating Officer

Ali Al-HawasHead of Sales & Trading

Fahad A. Al-GhannamHead of Compliance

Sakhar Al-RubyanHead of HR

Abdulaziz I. Al-MissaindHead of Legal

Sami Al-RowaitheyChief Digital Officer

Public 29

Samba's Governance Framework

Samba’s governance framework is monitored by the Board with the support of various committees

Board Executive Committee

Highest decision-making

body within the group.

Mandate includes setting the

risk culture, governance

structure and processes to

ensure adequate risk systems

and controls

Board Risk Committee

Helps the Board oversee

group- wide risk

management by following up

on various operations.

Ensures the established

framework is in line with the

bank’s objectives

Board Audit Committee

Helps the Board monitor

financial reporting, internal

control systems,

external/internal auditors,

financial statements,

accounting policies and

regulatory compliance

Capital Planning Committee

Oversees the capital planning process (Pillar I

& II risks, capital adequacy assessments,

stress testing)

Credit Risk Policy Committee

Oversees credit risk architecture and policies

that conform to regulations and internal

guidelines

Market Risk Policy Committee

Oversees the management, measurement

and monitoring of market and liquidity

risk items

Investment Committee

Reviews and approves

investment proposals for

various asset classes

managed by Treasury

Group Risk and Compliance

Committee

Supervises overall operational,

fraud and compliance risk

management activities

Assets Liability

Management Committee

Oversees the bank’s balance

sheet in line with approved

risk strategy

Independent Shariah Committee that is appointed by the Board for Islamic financing transactions

Board

Committees

Management

Committees

Shariah

Committee

Board Nomination and Remuneration

Committee

Helps identify skill requirements for

membership of the board and review the

board and its structure. It is also responsible

for establishing and reviewing Samba’s

compensation policies regarding rewards

and employee retention incentives.

Human Resource Committee

Manages all HR related activities and matters

including policies, staff development

programs and compensation framework

across the bank.

Public 30

Risk Management Framework (I)Samba has procedures and structures in place that enable effective operation of the bank and enable it to identify, monitor, manage and mitigate risk exposures

Top down approach based on evaluation of prevailing & prospective economic situation, identification of favourable

business segments and successful players within those segments

Objective assessment of opportunities for predictable and sustainable earning growth

Risk approval process has clear rules, exceptions and escalating approval authority of Senior Credit Officers (SCOs)

SCOs are bankers with proven judgement and experience in a variety of business and risk roles

Corporate

Credit Process

Credit culture based on focused Target Market and Eligibility Criteria, state-of-the-art- systems, well built collection and

service infrastructure, and fully automated fraud tracking system.

Stringent Risk Acceptance Criteria and Lending Controls are applied through well-trained staff and a strong monitoring

process and compliance with rules of responsible lending

Detailed management information system provides a strong backbone for consumer lending

Consumer

Credit Process

Samba's risk management systems are

designed to manage credit, market,

treasury, cross-border and operational risk

Internal audit and risk review (ARR) are in

place to perform independent audit and

control review functions

International best practice risk

management culture is embedded across

the bank

Public 31

Risk Management Framework (II)

Samba's Vision directly translates into the bank's core values

A highly focused and disciplined approach to the HNWI segment / target market supported by stringent control on

unsecured credit at < 5% of the portfolio

Exposure controlled with a continuous review of Credit Program / Lending Guidelines and an automated on-line real time

system to monitor exposure/collateral, report shortfalls and perform stress tests

Private Banking

Credit Process

Risk Committees (i.e. ALCO; Market Risk Policy Committee; Investment Committee) set policies and limits, monitor Treasury

activities and approve new products and investments

Responsible for independent monitoring of treasury exposures. Market Risk Manager reports to the Chief Risk Officer

Mark-to-Market positions are calculated by independent risk systems and verified by the independent Treasury Operations

Treasury Credit Risk is approved by Independent Risk SCOs

Market Risk

Process

Samba’s operational risk policies, in place since 2003, while already at a high standard are undergoing improvement with

investment and refinement of systems to allow for modelling operational risks

Samba meets Basel II standards for operational risk policy

Operational Risk

Process

Public 32

Case in point: Samba’s readiness and quick response to COVID-19 risks and proactive measures taken update

Public 33

Case in point: Samba's COVID-19 ResponseSamba contributed SR16.5 million to the Health Endowment Fund as part of the private sector initiative offered to face the Covid-19 crisis.

Samba has structured its response to COVID-19 across 5 key themes:

Ensure resilient operations Prepare, test and execute plans to ensure stable operations, continuity of business channels and safety of employees

Stand by customers and employees

Provide concrete and immediate support to customers and broader society in this "moment of truth"

Engage governments and regulators

Promote cross-banks governments and regulators engagement to advocate support in mitigating impacts on banks, financial institutions and overall economy

Mitigate P&L and B/S impacts

Identify and execute a portfolio of mitigating actions under different evolutive scenarios

Revise strategy and operating model

Understand customers, employees and other stakeholders (post- crisis) responses and review strategy/operating model accordingly

Internal and external communication strategy

Regulatory communication through Compliance department covering all required updates. Public communication through Call-Center and Social Media. Internal communication of employee safety guidelines via email.

Public 34

Samba's COVID-19 Response

‸

Samba has proactively taken concrete actions in response to COVID-19

Key Actions

Cross functional senior management team directly under the CEO, comprising of all key Group

Heads

Responsible for health safety measures, internal & external communication, assessing impact of

COVID-19 on banks portfolio (e.g. liquidity management, impairments, credit demand from

customers)

>70% of employees working from home in the spirit of social distancing. Only critical employees

working from office premises to ensure undisrupted customer service

Consumer Bank: Operating at reduced capacity (i.e. only 40 branches are open across all three

regions)

Digital Banking & Alternate channels: Increased bandwidth of digital channels (e.g. Samba online,

Phone Banking, ATM & POS) to manage high traffic

Set up remote working environment for employees working from home i.e., Laptops with access

to Video calling (Webex) and digital collaboration tools (i.e. file sharing)

Established Samba

COVID-19 crises

management

committee

Activated business

continuity

protocols as per

guidelines of SAMA

Ensured continuity

of central functions

Proactively reached out to customers and offered credit and transaction support to customers

experiencing significant disruptions from lockdowns and value-chain implications

On health and safety, ensuring the supply of necessary masks and sterilization tools in all

workplaces

Provided concrete

support to

customers and

employees

Priorities

Ensure resilient

operations

Stand by

customers and

employees

1

2

Public 35

Samba's COVID-19 Response

‸

Samba has proactively taken concrete actions in response to COVID-19

Key Actions

Saudi Arabian Monetary Authority – (SAMA)

- Proactively working with SAMA to design the right stimulus package for customers

- Full compliance with all SAMA guidelines (e.g. waiver of fees for services offered through

digital channels, waiver of fees on restructuring of loans, offering credit to SME customers)

Capital Market Authority - (CMA)

- Full compliance with all CMA guidelines and circulars (e.g. suspension of freezing investment

accounts, extending submission deadlines for certain reports)

- Proactively providing CMA with the challenges/suggestions of the Authorized Persons during

the Pandemic situation of COVID-19.

Defined evolutive scenarios and evaluated impact on impairments by sector/customer

Refined the business plan in the wake of COVID-19, interest rate cuts and oil prices

Maintaining strong liquidity profile and highly liquid asset portfolio

Actively engaging

all key external

stakeholders

Defined scenarios

and stress-tested

for resilience

Reprioritized initiatives which are relevant in COVID-19 & low interest rate environment e.g.

Advisory & Debt financing for key Public sector projects

Accelerated delivery of mission critical initiatives (e.g. Digital Banking, Business efficiency)

Adapt to post-crisis

structural shifts

Priorities

Engage

governments

and regulators

Revise strategy

and operating

model

3

5

Mitigate P&L

and B/S impact4

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Cybersecurity

SAMA mandates all banks to employ high levels

of security and protection

Samba complies with or exceeds these rules

Employs KPIs to measure and ensure monitoring

and effectiveness of cyber threat detection:

Vulnerabilities detection

Access control

Threat intelligence patching

Information Security operation center works 24/7

to detect, analyze, and respond to cybersecurity

incidents using a combination of technology

solutions and a strong set of processes

Ensures protection of customer data through:

Detailed policy guidelines that govern the data

infrastructure, information asset management

and information security

Encryption of Data at rest and in transit

Access Control

Activities and Logs Monitoring

Classification-based prevention measures

National Cyber Security Authority Framework

Samba is currently fully compliant with the

essential cyber security controls (ECC: 2018).

All staff are trained on Information Security with frequent refreshers as needed

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4. Appendix

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General Principles for Financial Consumer Protection

Samba adheres to the G20 High-Level Principles on Financial Consumer Protection

Equitable and fair treatment

Banks should deal fairly and honestly with consumers at all stages of their relationship, so that it is an integral part of the culture of a bank. Care should also be made and special attention given to the needs of vulnerable persons and groups.

Disclosure and transparency

Banks should provide up to date information about products and services to consumers. This information should be easily accessible, clear, simple to understand, accurate, not misleading and include any potential risks for the consumer. It should include the rights and responsibilities of each party, including the mechanism for either party to end the banking relationship, as well as details of fees, pricing and any potential penalties that the consumer may incur.

Financial education and awareness

Banks should develop programmes and appropriate mechanisms to help existing and future consumers develop the knowledge, skills and confidence to appropriately understand risks, including financial risks and opportunities, make informed choices, know where to go for assistance when they need it.

Behavior and work ethic

Banks should work in a professional manner for the benefit of clients during their relationship, where a bank is primarily responsible for the protection of the financial interests of the client.

Protection against fraud

Banks should protect and monitor consumer deposits and savings and other similar financial assets through the development of control systems with a high level of efficiency and effectiveness to reduce fraud, embezzlement or misuse.

Protection of privacy

Consumers' financial and personal information should be protected through appropriate control and protection mechanisms. These mechanisms should define the purposes for which the data may be collected, processed, held, used and disclosed (especially to third parties).

Complaints handling

Consumers should have access to adequate complaints handling mechanisms that are accessible, affordable, independent, fair, accountable, timely and efficient and based on SAMA rules.

CompetitionConsumers should be able to search, compare and where appropriate, switch between products, services and providers easily and clearly at a reasonable cost.

Third partiesBanks and their authorized agents should have as an objective, to work in the best interest of their consumers and be responsible for upholding financial consumer protection. Banks should also be responsible and accountable for the actions of their authorized agents.

Conflict of interestBanks should have a written policy on conflict of interest, and ensure that this policy will help to detect potential conflicts of interest. When the possibility of a conflict of interest arises between the bank and the third party , this should be disclosed to the consumer.

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18 Awards and Recognitions in 2019

Global Finance Magazine

Best Bank in Saudi Arabia (14th year in a row)

Best Private Bank in Saudi Arabia

Best Trade Finance Provider in Saudi Arabia

Best Treasury & Cash Management Bank in Saudi Arabia

Best Islamic Corporate Bank in the world

Best Islamic Investment Bank in the world

Best Investment Management Services in Saudi Arabia

Best Online Cash Management in Saudi Arabia

Best Trade Finance Services in Saudi Arabia

Best Information Security and Fraud Management in Saudi Arabia

Best Online Treasury Services in Saudi Arabia

Best in Social Media Marketing and Services in Saudi Arabia

Most Innovative Digital Bank in Saudi Arabia

International Business Magazine

Banking CEO of the year in Saudi Arabia

Best Retail Bank in Saudi Arabia

Best Corporate Bank in Saudi Arabia

The Banker

Islamic Window (Global Winner)

International Investor

Bank Of The Year // Saudi Arabia

Samba is one of the most recognised banks in the Middle East

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Useful Links

Vision and Values

https://www.samba.com/en/about-us/our-group/vision-and-values.aspx

Corporate Social Responsibility

http://www.csr.samba.com

General Principles for Financial Consumer Protection

https://www.samba.com/en/about-us/our-group/General_Financial_Consumer_Protection.aspx

Annual Reports

https://www.samba.com/en/about-us/investor-relations/annual-reports.aspx

Additional information about Samba's approach to sustainability can be found here

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Disclaimer

Samba Financial Group is a Saudi Joint Stock Company. Capital of 20.000.000.000 Saudi Riyal. C.R. No. 1010035319. P.O. Box: 833. Phone: 00966114774770. National Address: 6965 KingAbdul Aziz Road- AlMalaz District, Unit No.1, Riyadh 12629-3046, Saudi Arabia. Website: www.samba.com. Formed pursuant to Royal Decree No. M/3, dated 26/03/1400H (February12.1980) and subject to the supervision and oversight of Saudi Arabian Monetary Authority (“SAMBA”) has prepared this Presentation (the “Presentation”) on a proprietary basis in orderto provide certain general background information about SAMBA’s approach to ESG. The information contained in this Presentation is provided in a summary form and for generaldiscussion purposes only. Notwithstanding the previous sentence, some of the information contained in this this Presentation and is relied upon by SAMBA has been either directly orindirectly, obtained, from and not limited to third sources believed to be reliable, but SAMBA (nor any of its directors, officers, employees, agents, affiliates or subsidiaries) do notguarantee the accuracy, correctness or completeness of any information produced in this Presentation and obtained third party sources, and SAMBA disclaims all liability or responsibilityfor any loss or damage, without limitation, whether based on an action or claim in contract, tort (including negligence), breach of statutory duty or otherwise arising out of, or in relationto this Presentation or any act taken as a result of the information in this Presentation. This Presentation including the information covered therein is not intended either to be relied uponor construed as an advertisement for, or an offer, solicitation or invitation to sell or issue, or to subscribe, underwrite or otherwise acquire any securities in any jurisdiction. It should andmust not be treated as giving tax, legal, investment or other specialist advice or a recommendation to investors or potential investors and does not take into account the investmentobjectives, financial situation or needs of any particular investor. Neither shall any part of this Presentation nor any information contained herein nor the fact of its distribution form partof or be relied on in connection with any contract or investment decision or commitment relating thereto, nor does it constitute a recommendation regarding the subject of thisPresentation.

All statements included in this Presentation other than statements of historical facts, including, without limitation, those regarding financial position, business strategy, plans andincluding objectives of SAMBA’s management for future operations (including development plans and objectives) are forward-looking statements and may thus include words like"anticipate", "believe", "intend", "estimate", "expect", "will", "may", "project", "plan" and such other words of similar meaning. Such forward-looking statements are based on numerousassumptions regarding present and future business strategies and the relevant future business environment. Any forward-looking statements speak only as of the date of this presentationand SAMBA hereby expressly disclaims to the fullest extent permitted by law any obligation or undertaking to disseminate any updates or revisions to any forward-looking statementscontained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. Nothing in theforegoing is intended to or shall exclude any liability for, or remedy in respect of, fraudulent misrepresentation. Due to rounding, numbers and percentages presented throughout thisPresentation may not add up precisely to the totals provided.

SAMBA is not under any obligation to update, complete, amend, revise or keep current any information contained in this Presentation, and any opinions expressed herein are subject tochange materially without any further notice. Accordingly, no representation or warranty, express or implied, is or will be made by SAMBA, their respective advisors or any such persons’directors, officers or employees, or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation, and any reliance aninvestor may place on them will be at the investor’s sole risk and responsibility. An investor must rely solely on their own examinations of the Offering Documentation (“OfferingDocumentation”) along with any other relevant documentation that accompanies the Offering Documentation, when making a determination as to whether to invest in the securitiesdescribed. An investor should seek independent professional advice when deciding if an investment is appropriate. Securities that may be discussed herein may not be suitable for all orany particular type of investor(s). An investors should make their own independent investigation and appraisal of the business and financial condition of SAMBA and its subsidiaries, thenature of the securities and the merits or suitability of the securities or any transaction to any investor’s particular situation and objectives, including the possible risks and benefits ofpurchasing any securities. Any such determination should involve an assessment of the legal, tax, accounting, regulatory, financial, credit or other related aspects of the offering or thesecurities. Without prejudice to the foregoing, SAMBA, their advisors and any such persons’ directors, officers or employees expressly disclaim any liability whatsoever, in negligence orotherwise without limitation, whether based on an action or claim in contract, tort (including negligence), breach of statutory duty or otherwise arising out of, or in relation to thisPresentation, for any loss howsoever arising, directly or indirectly, from use of, or reliance on, this Presentation or its contents or otherwise arising in connection therewith.

The information contained in this Presentation shall not be reproduced, distributed, delivered, or furnished to any person without the prior written approval of SAMBA.