Alawwal Bank Thursday, June 13, 2019

Quarterly Research report: Alawwal Bank Thursday, June 13, 2019

Saudi Arabia Edition Alawwal Bank (1040) SAR19.58

Alawwal Bank twelfth best In this Report: performer of All Share Index in Highlights: Page

2019 Summary 1

Alawwal Bank, Saudi Arabia's 9th largest Bank by market Analysis 2 cap, has surged SAR4.48 (or 29.7%) year-to-date (YTD) in Bullish Parameters 2 2019 to close at SAR19.58. This makes the stock the twelfth highest performer in the All Share Index (TASI) which is up Bearish Parameters 6 14.2% in 2019. This also indicates a YTD relative price Period-based Shareholder Returns 7 increase of 15.4%. The average daily volume of 494,371 Price Volume Dynamics 9 shares so far in 2019 was 0.9 times the average daily volume in 2018. Peer Group Analysis 13 Figure 1: Activities Board and Management 16 Regulatory Announcements 17

Alawwal Bank is Offering corporate and personal banking News 18 services which include corporate finance, structured finance, working capital, Islamic banking, asset management, Financials 18 treasury, consumer banking, electronic banking, internet Index and Glossary 23 banking and private banking Further details can be found at http:// www.shb.com.sa Note also: Industry Group Banking Services Section Headers and Figures are mapped as Bookmarks in the PDF menu (left, top) Industry Banks Jun 13, 2019: USD 1 = SAR 3.75 Economic Sector Financials Business Sector Banking & Investment Services

Fig 2: Stock Summary

Shares Outstanding 1,143,072,000 Sector Bank Market Cap SAR22.4 billion (US$6 billion) TSR (10 yrs) 7.0% 52-Week Range SAR13.04-SAR19.58 Relative Strength (3 mo) 95 ISIN SA0007879071 PermID 8589955733

Fig 3: Financials Summary

Quotes from Legends: Earnings Per Share at Balance Date Year ended Dec 2018 Dec 2017 Dec 2016 Sales (USD M) 950.3 989.8 982.6 Pretax (USD) - - 283.9M Net (USD M) 301.5 356.1 283.9

Sales were down 4% from US$989.8 million in 2017 to US$950.3 million in 2018. Net profit was down 15.4% from US$356.1 million in 2017 to US$301.5 million in 2018. www.BuySellSignals.com Index and Glossary at end of this Report. Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Analysis

Bullish Signals

• Rises to Falls: In the last three months the number of rises • In the last three months the stock has hit a new 52-week outnumbered falls 32:26 or 1.2:1. high eleven times, pointing to a significant uptrend. • In the Saudi Arabian market of 180 stocks traded today, • The price to 200-day MAP ratio is 1.29, a bullish indicator. the stock has a 6-month relative strength of 97 which In the past 200 days this ratio has exceeded 1.29 just means it is beating 97% of the market. twice suggesting a resistance level. The stock is trading • A price rise combined with a high relative strength is a above both its MAPs and the 50-day MAP of SAR17.55 is bullish signal. higher than the 200-day MAP of SAR15.16, a bullish • The Moving Average Convergence Divergence (MACD) indicator. The 200-day MAP has increased to SAR15.16. indicator of 12-day Exponential Moving Average (EMA) of An increase is another bullish indicator. 18.55 minus the 26-day EMA of 18.25 is positive suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal. • The Price/MAP 200 of 1.29 for Alawwal Bank is higher than the Price/MAP 200 for the All Share Index (TASI) of 1.2.

Bearish Signals

• The price has risen above the upper Bollinger band of SAR19.41.

Bullish Parameters

Fig 4: Present Value of SAR1000 invested 10 Years Ago

- The present value of SAR1,000 (PV1000) invested ten years ago in Alawwal Bank is SAR1,974, including a capital gain of SAR781 and dividend reinvested of SAR194. - 10 years Multiplier in SAR = 1.974x - Annualized Total Shareholder Returns (TSR) in SAR = 7.0%

www.BuySellSignals.com Page 2 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition

Fig 5: Present Value of USD1000 invested 10 Years Ago

- The present value of USD1,000 (PV1000) invested ten years ago in Alawwal Bank is $US1,973, including a capital gain of $US780 and dividend reinvested of $US193. - 10 years ago USD 1 equalled SAR 3.7467 - 10 years Multiplier in USD = 1.973x - Annualized Total Shareholder Returns (TSR) in USD = 7.0%

Fig 6: Created Market Value [CMV# 12 yrs] (SAR B)

Market Capitalization has increased by SAR9.2 billion from SAR13.1 billion to SAR22.4 billion in the last 12 years. This increase comprises cumulative retained earnings (RETE) of SAR1.4 billion and Created Market Value of SAR7.8 billion. The Created Market Value multiple, defined by the change in MCap for every SAR1 of retained earnings is exemplary at SAR6.51.

Fig 7: MCap - 5 Year Increase

In the past 5 years Market Capitalization has increased by SAR1.9 billion from SAR20.5 billion to SAR22.4 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 2 out of 5 years. MCap (SAR MCap (US$ - Price B) M) Last SAR19.58 22.4 5,968.4 1 Year ago SAR14.18 16.2 4,322.3 2 Years ago SAR11.02 12.6 3,353.2 3 Years ago SAR12.20 13.9 3,719.3 4 Years ago SAR23.0 26.3 7,011.7 5 Years ago SAR17.92 20.5 5,460

www.BuySellSignals.com Page 3 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Fig 8: Moving Annual Return (Past 5 years)

Quotes from Legends: Annual Return Based on a dynamic start date of 5 years ago, the real rate of return has averaged 8.4%. The Moving Annual Return has been positive in 3 of the last 5 years. An investment a year ago in 1040 would have produced a return of 38.1%. Capital Divide Annual Close Gain / 1040 nds % Yield Return (SAR) (Loss) (SAR) % % Jun 13 19.58 - 38.1 - 38.1 1 Yr ago 14.18 - 28.9 - 28.9 2 Yrs ago 11 - (10.6) - (10.6) 3 Yrs ago 12.3 0.25 (46.5) 1.1 (45.4) 4 Yrs ago 23 0.5 28.4 2.8 31.2

Close 5 years ago SAR17.92

Fig 9: Turnover Period Above Average

The turnover rate in the 12 months to date was 9.9% (or a turnover period of 10 years 22 days). This corresponds to an average length of ownership of the stock at 4.3 times the average holding period.

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Fig 10: % Change (Tr. 12 Mo): Stock Fig 11: Past 12 Mo Stock Sector (38.1%) v Index (8.1%) Index (%)

Fig 13: Rank in the All Share Index (TASI) [out of 140 stocks] In the past 12 months Alawwal Bank has outperformed the Description Value Rank All Share index (TASI) by 30.0%. MCap (US$ B) 6 17 Total Assets (US$ B) 21.9 13 Fig 12: Price > Moving Avg Price Revenue (US$ M) 950.3 20 Net Profit (US$ M) 301.5 19 Quotes from Legends: Moving Average Price Net Profit Margin % 31.7 19 PV$1000 (1Year) US$* 1,381 13 % Change YTD 29.7 12 * 1 year ago USD 1 = SAR 3.75; Jun 13, 2019: USD 1 = SAR 3.75

Fig 14: Increased ADVT past five years

Avg. Daily Volume Traded 12 months ended Jun 13, thousand shares

In the last 3 months the share price has exceeded the 200- day Moving Avg Price on 59/60 days; a bullish signal.

In the past five years, Average Daily Volume of Trading (ADVT) has increased 227.7% to 544,298 shares.

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Fig 15: Increased Average Daily Turnover

Past five years, 12 months ended Jun 13 (SAR million)

In the past five years, average daily share turnover has increased 0.5% to SAR7.8 million (US$2.1 million). This suggests increased liquidity.

Bearish Parameters

Fig 16: Rank in the All Share Index Fig 17: Declining VWAP (TASI) [out of 140 stocks] Past five years, 12 months ended Jun 13 (SAR) Description Value Rank Return on Equity % 8.2 55 Price to Book 1.6 64 * 1 year ago USD 1 = SAR 3.75; Jun 13, 2019: USD 1 = SAR 3.75

In the past five years Volume Weighted Average Price (VWAP) has decreased by 22.5% to SAR15.96. Based on a dynamic start date of five years ago, there have been declines in VWAP in 3 out of 5 years.

www.BuySellSignals.com Page 6 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Period-based Shareholder Returns

YEAR-TO-DATE [up SAR4.48 or 29.7%] Alawwal Bank surges 30% in 2019 Alawwal Bank (TASI:1040), surged SAR4.48 (or 29.7%) year-to-date (YTD) in 2019 to close at SAR19.58 today. Compared with the All Share Index (TASI) which has risen 14.2% YTD, this is a relative price increase of 15.4%. PAST YEAR [up SAR5.10 or 35.2%] Alawwal Bank jumps 38% in past year Alawwal Bank (TASI:1040), jumped SAR5.40 (or 38.1%) in the past year to close at SAR19.58 today. Compared with the All Share Index (TASI) which has risen 8.1% over the same period, this is a relative price increase of 30.0%. The value of SAR1,000 invested a year ago is SAR1,381 [vs SAR1,081 for the All Share Index (TASI)] for a capital gain of SAR381. PAST TWO YEARS [up SAR8.58 or 78.0%] Alawwal Bank surges 78% in 2 years Alawwal Bank (TASI:1040), has surged SAR8.58 (or 78.0%) in the past two years to close at SAR19.58 today. Compared with the All Share Index (TASI) which has risen 31.1% over the same period, this is a relative price increase of 46.9%.

Fig 18: Present Value of SAR1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]

Quotes from Legends: Value of $1,000 invested n years ago PVSAR1,000 3 mo ago 1 yr ago 3 yrs ago 1040.TASI SAR1,209 SAR1,381 SAR1,592 Bank sector SAR1,128 SAR1,285 SAR1,893 All Share Index (TASI) SAR1,067 SAR1,081 SAR1,357

The present value of SAR1,000 invested 3 mo ago, 1 Yr ago and 3 Yrs ago has consistently exceeded SAR1,208.

Fig 19: Period-based Price Change %

Quotes from Legends: Price Change 3-Year price change of 59.2% for 1040 outperformed the change of 36.1% in the All Share index (TASI) for a relative price change of 23.1%. Price Change % Quarter Year 3 Years 1040 20.9 38.1 59.2 Bank 12.8 28.5 89.3 All Share index (TASI) 4.9 8.1 36.1

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Fig 20: Annualised Period-based Total Shareholder Returns [TSR %]

TSR % 1 yr 3 yrs 5 yrs 10 yrs 1040.TASI 38.1 16.6 2.7 7

Fig 21: Year-on-Year comparison of key price volume indicators in the past six years

2019 2018 2017 2016 2015 2014 Price 30 May (SAR) 17.96 13.8 11.05 12.02 23.8 17.21 % Price Change 30.1 24.9 -8.1 -49.5 38.3 Avg Daily Volume 507,893 444,931 783,298 247,891 163,028 179,079 VWAP (SAR) 15.77 12.64 11.03 15.03 20.33 17.03 Turnover Period 10 yrs 5 mo 11 yrs 4 mo 6 yrs 5 mo 7 yrs 11 mo 14 yrs 4 mo 127 yrs 11 mo Price Range (SAR) 13.04 - 19.26 10.92 - 14.94 8.25 - 14.2 11.53 - 24.5 15.92 - 25 16.5 - 17.25 Index Change % 6.3 16.6 8 -34.8 -0.7 Relative Price Change % 23.8 8.3 -16.1 -14.7 39

In the past 5 years average daily volume has jumped 183.6% from 179,079 shares to 507,893 shares. Turnover period has decreased from 127 years 11 months to 10 years 5 months.

www.BuySellSignals.com Page 8 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Price Volume Dynamics (Past Quarter)

Fig 22: The past month [up SAR2.58 or 15.2%]

Alawwal Bank outperformed the All Share index (TASI) on 10 days and underperformed it on 7 days. Day Headline Close Price Relative Momentum Comment price change change [SAR] % % Jun 13 In top 2% performers of All Share Index (TASI) 19.6 1.5 3 VI*=2.9

Jun 12 Hits year-high 10th time in three months 19.3 0.5 -0.5 VI*=1.9

Jun 11 Climbs 4.5% strengthening above moving 19.2 4.5 3.6 Top Rise; average price VI*=1.3 Jun 10 Up 2.3% in 2 days 18.4 1.0 -0.7

Jun 09 Increases 1.3% 18.2 1.3 -0.8

May 30 Decreases on slipping relative strength 18.0 -0.2 -1.4 VI*=1.3

May 29 Increases 1.9% strengthening above moving 18.0 1.9 3.5 VI*=1.4 average price May 28 Decreases 1.9%, 5 days' volume in a day 17.7 -1.9 -3.9 Steepest Fall; VI*=4.6 May 27 Consolidates after 2 days of consecutive 18.0 -0.3 VI*=1.98 falls May 26 Falls for a second consecutive day, a two- 18.0 -1.1 0.9 VI*=1.4 day fall of 1.2% May 23 Decreases, 4 days' volume in a day 18.2 -0.1 1.3 VI*=3.7

May 22 Rises to test 18.0 18.2 1.8 1.2 VI*=2.4

May 21 Lifts 2.4% strengthening above moving 17.9 2.4 0.7 VI*=1.4 average price May 20 Falls for a second consecutive day, a two- 17.5 -0.7 -0 day fall of 1.6% May 19 Decreases 17.6 -0.9 0.2

May 16 Lifts 2.3% strengthening above moving 17.8 2.3 0.6 VI*=1.2 average price May 15 Lifts 2.7% on high volume 17.4 2.7 1.5 VI*=2.4

VI= Volume Index, 1 is avg.

www.BuySellSignals.com Page 9 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Fig 23: The Best 3 weeks Fig 24: The Worst 3 weeks

Sun-Thu Change All RPC % Vol Ind Sun-Thu Change All RPC % Vol Ind % Share [1 is % Share [1 is index avg] index avg] (TASI) (TASI) Change Change % % Mar 31-Apr 04 8 3.1 4.8 0.9 May 05-09 -6 -5.4 -0.5 0.6 Apr 14-18 5.4 1.2 4.2 1.1 Apr 07-11 -4.7 0.3 -5 0.9 Mar 17-21 5 1.5 3.5 0.4 Mar 10-14 -3 1.2 -4.2 0.3 In the past quarter the week beginning Sunday March 31 In the past quarter the steepest fall of 6.0% took place in saw the highest weekly rise of 8% for a relative price the week beginning Sunday May 05. increase of 4.8%.

Fig 25: Weekly Price Change (%) and Volume Index (Last 3 months) Week-Ended Thursday

Price increase fuelled by above average Volume Quotes from Legends: Momentum Up Price increase on below average Volume Price decrease fuelled by above average Volume Quotes from Legends: Momentum Down Price decrease on below average Volume

In the last 13 weeks the share price was up 20.9%. It rose in 7/13 weeks. Of the 7 weeks, the stock rose on above average volume in 4 weeks.

www.BuySellSignals.com Page 10 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition

Fig 26: Price Volume Trend: Past Quarter

Alawwal Bank hit a 3-month high of SAR19.58 on Jun 13 and a 3-month low of SAR16.08 on Mar 17.

Fig 27: Fibonacci Retracement of price resistance and support in the Past Quarter

Fig 28: Stock Trading Volume and Turnover in the past 3 months

Turnover US$180.7 million Avg daily turnover US$3 million Volume 37,479,835 Avg daily volume 624,664

www.BuySellSignals.com Page 11 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Price Volume Dynamics (Past Year)

Fig 29: Standard Deviation

SD is a statistical measure of deviation from the mean. The SD - Stock Interpretation of 1.3% gives it a percentile rank of 19 meaning that 19% of Beta 1.0 - stocks in the Saudi Arabian market are less volatile than this stock. Standard 1.3 Less volatile Deviation

Volatility

Quotes from Legends: Volatility The stock traded between a 52-week low of SAR13.04 and a high of SAR19.58. The average daily volatility of 1.7% places the stock in the 3rd quartile in the market meaning it is mildly volatile. Fig 30: Price High Low 3 Mo, 1 Yr, 5 Yrs

Quotes from Legends: Discount to High Quotes from Legends: Premium to Low

The last price of SAR19.58 represents a discount of 21.7% to its 5-year high of SAR25.0 on Mar 17, 2015 and a premium of 137.3% to its 5-year low of SAR8.25 on Oct 18, 2016.

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Fig 31: Relative Strength

Quotes from Legends: Relative Strength

Peer Group Analysis & Ranking

Fig 32: Global Peer Group (all figures in USD): Key Financials

In its Global Peer Group of 9 companies 1040 is ranked first by Relative Strength, PV$1000, fourth by Revenue, fifth by MCap, seventh by Net Profit and eighth by Total Assets. Name (Code) Relative Str. MCap PV $1000 Revenue Net Profit Total Assets (6 mo) (1 yr) Rank of 1040 1 5 1 4 7 8 East West Bancorp (EWBC) 42 6.3B 636.1 1.7B 703.7M 41B Finecobank (FBK) 57 6.3B 981.7 242.7M 18.6B China Minsheng Banking (01988) 55 6B 945.6 7.3B 866.4B Bancolombia (BCOLOMBIA) 79 6B 1,061.3 563.6M 44.6B Alawwal Bank (1040) 89 6B 1,380.8 950.3M 301.5M 21.9B Bank of Baroda (BANKBARODA) 72 6B 861.5 7.6B 158.5M 118.1B Banco de Sabadell (SAB) 35 5.9B 632.1 5.3B 912.5M 250.9B Turkiye Garanti Bankasi (GARAN) 54 5.9B 750.2 1.1B 61.9B Cullen/Frost Bankers (CFR) 50 5.9B 857.4 443.7M 32.3B

www.BuySellSignals.com Page 13 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition

Global Peer Group: Relative Value Indicators

1040 is ranked second by P/Book and ninth by Turnover Rate. Code Country Last Price P/E P/Book Turnover % Disc to 52- Retention Code Rate (%) w Hi Ratio Rank of 1040 2 9 EWBC US $US43.50 9.3 1.6 189.3 38.0 79.5 FBK IT EUR9.15 26.1 7.5 105.3 25.3 13.4 01988 HK HKD5.67 4.4 95.2 10.8 BCOLOMBIA CO COP38,200.0 10.0 1040 SA SAR19.58 1.6 9.9 BANKBARODA IN Rs121.05 30.3 155.3 23.0 SAB ES 93.28c 6.7 138.5 78.6 GARAN TR TRY8.16 599.8 17.8 CFR US $US92.82 13.3 2.2 161.8 18.1 61.0

Fig 33: Global Peer Group - Price Performance

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Fig 34: Global Peer Group - Total Shareholder Returns [TSR in USD]

Fig 35: Compare and Sort: Alawwal Bank vs Bank sector

Company Name Code MCap 52-W 52-W Rel. Str 6- PV$1000 P/NTA P/E Yield (USD, M) High Low Mo 1 year (%) Alawwal Bank 1040 5,968 19.6 13.0 97 1,381 1.6 - -

For Company searches, or for sorting by stocks and variables, an interactive version of current day's Table is available here Fig 36: BuySellSignals Fundamentals Valuation Ranking: Alawwal Bank vs Bank sector

Out of 180 stocks in the Saudi Arabian Market, Alawwal Bank is ranked fourth by Price/Net Tangible Assets, ninth by Premium to 52-Wk Low, ninth by Market Cap SAR and ninth by Revenue. Bank Lowest - 1040 Rank Rank 1 Rank 2 Rank 3 sector Rank Price/Net Tangible Assets 2.2x 1.6x 4 0.7x 1.02x 1.5x 3.7x 1020 1030 1080 1120 Premium to 52-Wk Low (%) 43.6 50.1 9 10.3 22.1 32.7 83.9 1030 1020 1150 1010 Market Cap SAR 64.4 B 22.4 B 9 81.5 B 7.9 B 1010 1020 Revenue SAR 7.6 B 3.6 B 9 18.9 B 17.3 B 9 B 2.7 B 1180 1120 1010 1030 ROA (%) 2.2 1.4 11 2.8 2.8 2.4 1.4 1060 1120 1090 1020 ROE (%) 14.3 8.2 12 21.2 16.2 15.2 8.2 1120 1180 1060 1040

Negative values are shown in brackets.

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Fig 37: Independent Ratings

+ Brand Finance 500: Alawwal Bank was ranked 326 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; an improvement over a year from rank 411 in 2014. Brand Finance valued the brand at US$311 million. + Forbes 2000: It is the 1916th largest by revenue in the Forbes Global 2000. + BuySellSignals/News Bites: It is placed 10/173 in BuySellSignals News Bites' ranking of Saudi Arabian performers in the past year, a percentile ranking of 94.

Board and Management & creation of shareholder value

Fig 38: Board of Directors and years since appointment Fig 39: Profiles and Creation of shareholder value Yrs Since Name Designation Appointment Soren Nikolajsen Director Mubarak Chairman - Mr. Nikolajsen has more than 30 years of experience in Abdullah Al- banking, including in the Kingdom of Saudi Arabia and the Khafrah Middle East. The last eight years he was with the Royal Bank of Scotland based in London and Hong Kong. He has been Abdulhadi Ali Director - with the Board of Alawwal Bank since January 1,2014. Shayif Sulaiman Director - Abdullah Al-Kadi Soren Nikolajsen Director - Lubna Suliman Director - Olayan Ahmed Al-Olaqie Director - Jan Koopman Director - Javier Director - Maldonado Eyad Director - Abdulrahman Al- Hussain Martin Powell Non-Executive Director 1 Yr

www.BuySellSignals.com Page 16 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Regulatory Announcements

Fig 40: Mergers

October 09 2018: SABB-Alawwal merger to further boost growth The Boards of Directors of The Saudi British Bank (SABB) and Alawwal bank have unanimously recommended a merger of the two banks to their shareholders, creating a franchise that will support more opportunity for customers and help deliver new growth in an ambitious Kingdom. Source: Gulfbase For more details click here.

October 05 2018: ALAWWAL BANK ANNOUNCES THAT NO DIVIDENDS WILL BE DISTRIBUTED FOR THE FISCAL YEAR 2018 PURSUANT TO THE MERGER AGREEMENT ENTERED INTO WITH THE SAUDI BRITISH BANK (SABB) Further to the 04/10/2018 announcement on the Tadawul website in connection with the entry into a merger agreement with The Saudi British Bank (SABB) which provided that Alawwal bank has undertaken, pursuant to the merger agreement, not to pay a dividend for 2018, Alawwal bank announces that the Board of Directors resolved on 03/10/2018 to recommend to the General Assembly of Shareholders that no dividends shall be distributed for the fiscal year 2018. For more details click here.

October 05 2018: Alawwal Bank Announces Entry into a Binding Merger Agreement with The Saudi British Bank Further to the 1/9/1439H (corresponding to May 16, 2018G) announcement of a non-binding agreement between the Saudi British Bank ("SABB") and Alawwal bank with respect to the exchange ratio of their proposed merger, Alawwal bank would like to announce to its shareholders that it entered into a binding merger agreement on 3 October 2018G with SABB under which the two banks agreed to take the necessary steps to implement a merger by way of a statutory merger pursuant to Articles 191-193 of the Companies Law and Article 49(a)(1) of the Merger and Acquisition Regulations (the "Agreement"). For more details click here.

Fig 41: Exchange Activity

October 04 2018: Announcement from the Saudi Stock Exchange Company (Tadawul) Regarding the Suspension of Trading the Shares of Alawwal Bank Upon the bank's Request The Saudi Stock Exchange Company (Tadawul) announces suspension of trading shares of Alawwal Bank on the Saudi Stock Exchange starting today 23/01/1440H, corresponding to 03/10/2018G upon the bank's request in accordance with the Listing Rules approved by the Board of the Capital Market Authority pursuant to its Resolution no. For more details click here.

Fig 42: Financial Results announcements

May 07: Alawwal Bank Announces its Interim Financial Results for the Period Ending on 31-03-2019 (Three Months) Source: mubasher.info For more details click here.

October 31 2018: Alawwal Bank Announces its Interim Financial Results for the Period Ending on 30-09-2018 (Nine Months) Source: mubasher.info For more details click here.

July 31 2018: Alawwal Bank Announces the Interim Financial Results for the Period Ending on 30-06-2018 (Six Months) Source: mubasher.info For more details click here.

www.BuySellSignals.com Page 17 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition News

Press Releases

December 20 2018: Alawwal bank Announces the Result of the Zakat Claims Settlement with the General Authority of Zakat and Tax Alawwal bank announces that it had entered into an agreement with the General Authority of Zakat and Tax to settle the Zakat claims of the previous financial years until the end of the 2017 financial year for a total amount of SR 374,475,908. Alawwal bank would like to advise that the settlement would result in changes in shareholders equity with a decrease of SR 100,407,435. For more details click here.

November 15 2018: Alawwal and GCC BDI to improve corporate governance region-wide Alawwal bank has signed a three-year partnership to help develop high-performance boards in the Gulf. The bank will support a program of activity to raise corporate governance standards in Saudi Arabia and the wider GCC. The program is designed by GCC Board Directors Institute (GCC BDI) to build confidence in GCC corporations among shareholders and encourage foreign investment. For more details click here.

November 02 2018: Alawwal bank Announces the Redemption of its 2013 Sukuk Alawwal bank is pleased to announce its intention to call (redeem) its 2013 sukuk, in full, bearing Tadawul symbol: 1047 - Alawwal bank Sukuk 4, at their face value (100% of issue price) at the end of year 5 (12th December 2018). Source: mubasher.info For more details click here.

October 05 2018: Announcement from the Saudi Stock Exchange Company (Tadawul) Regarding Lifting the Suspension on Trading the Shares of Alawwal Bank Referring to the Saudi Stock Exchange (Tadawul) announcement on 23/01/1440H, corresponding to 03/10/2018G to suspend trading the shares of Alawwal Bank on the Saudi Stock Exchange starting from Wednesday 23/01/1440H, corresponding to 03/10/2018G upon the bank's request as it will announce a material development. For more details click here.

Financials

Alawwal Bank 2018 Annual Report: Key Parameters

FY2018 Annual Report: Alawwal Bank Net Profit down 15.4% Release Date: February 28, 2019

Alawwal Bank (SA:1040) reported net profit for the year-ended 31 December 2018 of SAR1.1b ($US301m), down 15.4% from SAR1.3b ($US356m) in the previous year.

Major changes compared with previous year: Favourable Changes: • Retained earnings to total assets up 19.7% to 1.8% Unfavourable Changes: • Operating Cash Flow is negative • Return on Equity down from 9.8% to 8.2% • Working capital to total assets down 3.6% to 18.7%

Annual Report [Year-on-year comparison: 2018 vs 2017]

www.BuySellSignals.com Page 18 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition

Company Name : Alawwal Bank (1040) December 31 2018 2017 2018 2017 Change Description SAR m SAR m $US m $US m (%) Operating Income 3,563.5 3,711.6 950.3 989.8 Down 4 Depreciation 173.3 165.2 46.2 44.1 Up 4.9 Profit/(Loss) after Tax 1,130.5 1,335.5 301.5 356.1 Down 15.4 Working Capital 15,322.8 19,351 4,086.1 5,160.3 Down 20.8 Current Assets 79,895.5 97,626 21,305.5 26,033.6 Down 18.2 Current Liabilities 64,572.7 78,275 17,219.4 20,873.3 Down 17.5 Shareholders' Funds 13,860.4 13,599.7 3,696.1 3,626.6 Up 1.9 Total Liabilities 68,167.8 86,270.1 18,178.1 23,005.4 Down 21 Total Assets 82,028.2 99,869.8 21,874.2 26,632 Down 17.9 Cash and cash equivalents 4,890 15,137 1,304 4,036.5 Down 67.7 Net Assets 13,860.4 13,599.7 3,696.1 3,626.6 Up 1.9 Net Tangible Assets 13,860.4 13,599.7 3,696.1 3,626.6 Up 1.9

Fig 43: Year-on-year comparison of Performance Ratios

December 31 2018 2017 Change (%) Return on Equity (%) 8.2 9.8 Down 16.3

Currency Conversion (December 31, 2018): $US1 = SAR3.75 Currency Conversion (December 31, 2017): $US1 = SAR3.75

Fig 44: Five-year record of growth and performance:

Total Revenue averaged $US946.3B or SAR3.5M over the last 5 years. Net Profit averaged $US393.3B or SAR1.5M over the last 5 years. In the last 5 years Total Revenue averaged SAR3.5B ($US946.3M) and Net Profit averaged SAR1.5B ($US393.3M) Compound Annual Growth Rate (CAGR) averaged 6.4% for Total Revenue and -5.5% for Net Profit. Description Annual (SAR Annual ($US 5-year Avg 5-year Avg 5-year CAGR B) M) (SAR B) ($US M) % Total Revenue 3.6 950.3 3.5 946.3 6.4 Net Profit 1.1 301.5 1.5 393.3 (5.5)

Fig 45: Five-year record of Net Profit, ROE and ROA

In 2018 Net Profit Margin of 31.7% was below its 5-year Avg of 42.0% (All Figures in %) Description 2018 5-year Avg Net Profit Margin 31.7 42 Return on Equity 8.2 12 Return on Assets 1.4 1.5

www.BuySellSignals.com Page 19 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition

Alawwal Bank 2018 Financial Results as reported (Annual)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION (In SAR Thousand, except per share data and shares outstanding)

Fig 46: 2018 Alawwal Bank INCOME STATEMENT AS REPORTED

Description SAR Thousand SAR Thousand Dec 31 2018 2017 Change % Special Commission Income 3,755,276 3,903,289 Down 3.8 Special Commission Expenses 1,000,570 1,137,527 Down 12.0 Net Special Commission Income 2,754,706 2,765,762 Down 0.4 Fees from Services 601,265 689,799 Down 12.8 Exchange Income 125,268 129,885 Down 3.6 Trading Income 75,354 95,916 Down 21.4 Realized Gains on Investments net 30,260 Dividend Income Other Operating Income 6,921 Total Operating Income 3,563,514 3,711,622 Down 4.0 Salaries and Employees Benefits 661,958 670,845 Down 1.3 Rent and Premises 140,825 140,230 Up 0.4 Depreciation 173,292 165,191 Up 4.9 Other General and Admin Expenses 302,347 289,349 Up 4.5 Provision for Credit Losses 1,162,897 1,120,299 Up 3.8 Total Operating Expenses 2,441,319 2,385,914 Up 2.3 Extraordinary item 8,255 9,810 Down 15.9 Net Income from Operations 1,130,450 1,335,518 Down 15.4

Fig 47: 2018 Alawwal Bank BALANCE SHEET AS REPORTED

Description SAR Thousand SAR Thousand Dec 31 2018 2017 Change % Cash in Bank and SAMA 4,890,038 15,137,005 Down 67.7 Due from Banks 1,116,012 2,115,271 Down 47.2 Investments 16,122,300 16,734,254 Down 3.7 Loans and Advances 57,767,123 63,639,483 Down 9.2 79,895,473 97,626,013 Down 18.2 Fixed Assets Net 1,268,639 1,347,009 Down 5.8 Other Assets Net 864,090 896,808 Down 3.6 Trading Securities 2,132,729 2,243,817 Down 5.0 Total Assets 82,028,202 99,869,830 Down 17.9 Due to Banks 1,531,816 3,344,671 Down 54.2 Customer Deposits 64,572,713 78,274,963 Down 17.5 www.BuySellSignals.com Page 20 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition

Other Liabilities 2,063,276 4,650,500 Down 55.6 66,635,989 82,925,463 Down 19.6 Total Liabilities 68,167,805 86,270,134 Down 21.0 Share Capital 11,430,720 11,430,720 Steady General Reserves 130,000 130,000 Steady Statutary Reserves 882,675 600,062 Up 47.1 Retained Earnings 1,443,809 1,469,189 Down 1.7 Fair Value/Cash Flow Hedges Adj Act -26,807 -30,275 Improved 11.5 Shareholders Equity 13,860,397 13,599,696 Up 1.9 Total Liabilities and Shareholder Equity 82,028,202 99,869,830 Down 17.9

Fig 48: 2018 Alawwal Bank CASH FLOW AS REPORTED

Description SAR Thousand SAR Thousand Dec 31 2018 2017 Change % Net Income 1,130,450 1,335,518 Down 15.4 Depreciation 173,292 165,191 Up 4.9 Gain/Loss on Sale of Fixed Assets 49 Provision for Possible Credit Loss 1,162,897 1,120,299 Up 3.8 Net Accrtn of Discnts and Premium Amort 4,220 -4,405 Recovery Net Gains from Investments -15,176 -40,070 Improved 62.1 Due from Banks 729,290 326,273 Up 123.5 Trading Securities Loans and Advances 4,204,685 7,983,315 Down 47.3 Other Assets 158,611 86,307 Up 83.8 Net Change in Operat. Liabilities Due to Banks -1,812,855 1,996,939 Deterioration Deposits -13,702,250 -7,083,825 Deterioration 93.4 Other Liabilities -383,968 236,038 Deterioration Net Cash Used in Operations -8,350,755 6,121,580 Deterioration Proceeds from Mat/Sale Investments 600,397 7,121,398 Down 91.6 Purchase of Investment -2,545,000 Fair Value Purchases of Fixed Assets -94,971 -231,177 Improved 58.9 Proceeds from Sell of Fixed Assets Net Cash from Investing Activities 505,426 4,345,221 Down 88.4 Dividend Paid -2,671,461 Cash Used for Financing Activities -2,671,461 -1,400,000 Deterioration 90.8 Net Changes in Cash and SAMA -10,516,790 9,066,801 Deterioration Cash and Balances with SAMA Beg. Year 13,006,065 3,939,264 Up 230.2 Cash and Balances with SAMA End Year 2,489,275 13,006,065 Down 80.9

www.BuySellSignals.com Page 21 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition

Fig 49: 2018 Alawwal Bank Margins %

Dec 31 2018 2017 Net Income Margin 31.7 36

Fig 50: Five-Year History of key Financials (All figures in SAR)

Sales for FY2018 were SAR3,563.5 million, down 4% from SAR3,711.6 million in FY2017. Net profit for FY2018 were SAR1,130.5 million, down 15.4% from SAR1,335.5 million in FY2017. Description (December 31) 2018 2017 2016 2015 2014 Income Statement Sales (B) 3.6 3.7 3.7 3.6 3.2 Depreciation (M) 173.3 165.2 122 117.5 104.1 Net profit (B) 1.1 1.3 1.1 2 1.8 Balance Sheet Equity Share Capital (B) 13.9 13.6 12.9 12 10.7 Retained Earnings 1.4 B 1.5 B 1.1 B 255.5 M 709.3 M Total Assets (B) 82 99.9 105.1 108.1 96.6 Fixed Asset 1.3 B 1.3 B 1.3 B 801 M 526.4 M Cash Flow Operating Cash Flow (8.4 B) 6.1 B 828 M 967.7 M 5.1 B Investing Cash Flow 505.4 M 4.3 B (487.8 M) (2.8 B) (2 B) Financing Cash Flow (2.7 B) (1.4 B) (297.2 M) (619.2 M) (1.2 B) Net Cash Flow (10.5 B) 9.1 B 42.9 M (2.4 B) 1.9 B

www.BuySellSignals.com Page 22 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Index

Section 1. Alawwal Bank (1040)1 Figure 1: Activities1 Fig 2: Stock Summary1 Fig 3: Financials Summary1

Section 2. Analysis2 Bullish Signals2 Bearish Signals2

Section 3. Bullish Parameters2 Fig 4: Present Value of SAR1000 invested 10 Years Ago2 Fig 5: Present Value of USD1000 invested 10 Years Ago3 Fig 6: Created Market Value [CMV# 12 yrs] (SAR B)3 Fig 7: MCap - 5 Year Increase3 Fig 8: Moving Annual Return (Past 5 years)4 Fig 9: Turnover Period Above Average4 Fig 10: % Change (Tr. 12 Mo): Stock (38.1%) v Index (8.1%)5 Fig 11: Past 12 Mo Stock Sector Index (%)5 Fig 12: Price > Moving Avg Price5 Fig 13: Rank in the All Share Index (TASI) [out of 140 stocks]5 Fig 14: Increased ADVT past five years5 Fig 15: Increased Average Daily Turnover6

Section 4. Bearish Parameters6 Fig 16: Rank in the All Share Index (TASI) [out of 140 stocks]6 Fig 17: Declining VWAP6

Section 5. Period-based Shareholder Returns7 Fig 18: Present Value of SAR1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]7 Fig 19: Period-based Price Change %7 Fig 20: Annualised Period-based Total Shareholder Returns [TSR %]8 Fig 21: Year-on-Year comparison of key price volume indicators in the past six years8

Section 6. Price Volume Dynamics (Past Quarter)9 Fig 22: The past month9 Fig 23: The Best 3 weeks 10 Fig 24: The Worst 3 weeks 10 Fig 25: Weekly Price Change (%) and Volume Index (Last 3 months) Week-Ended Thursday10 Fig 26: Price Volume Trend: Past Quarter11 Fig 27: Fibonacci Retracement of price resistance and support in the Past Quarter11 Fig 28: Stock Trading Volume and Turnover in the past 3 months11

Section 7. Price Volume Dynamics (Past Year)12 Fig 29: Standard Deviation12 Volatility12 Fig 30: Price High Low 3 Mo, 1 Yr, 5 Yrs12 Fig 31: Relative Strength13

Section 8. Peer Group Analysis & Ranking13 Fig 32: Global Peer Group (all figures in USD): Key Financials13 Fig 33: Global Peer Group - Price Performance14 www.BuySellSignals.com Page 23 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Index (continued)

Fig 34: Global Peer Group - Total Shareholder Returns [TSR in USD]15 Fig 35: Compare and Sort: Alawwal Bank vs Bank sector15 Fig 36: BuySellSignals Fundamentals Valuation Ranking: Alawwal Bank vs Bank sector15 Fig 37: Independent Ratings16

Section 9. Board and Management & creation of shareholder value16 Names, Positions, Biographies, Performance Fig 38: Board of Directors and years since appointment16 Fig 39: Profiles and Creation of shareholder value16

Section 10. Regulatory Announcements17 Fig 40: Mergers17 Fig 41: Exchange Activity17 Fig 42: Financial Results announcements17

Section 11. News18 Press Releases18

Section 12. Financials18 Alawwal Bank 2018 Annual Report: Key Parameters Fig 43: Year-on-year comparison of Performance Ratios19 Fig 44: Five-year record of growth and performance:19 Fig 45: Five-year record of Net Profit, ROE and ROA19 Alawwal Bank 2018 Financial Results as reported (Annual) Fig 46: 2018 Alawwal Bank INCOME STATEMENT AS REPORTED20 Fig 47: 2018 Alawwal Bank BALANCE SHEET AS REPORTED20 Fig 48: 2018 Alawwal Bank CASH FLOW AS REPORTED21 Fig 49: 2018 Alawwal Bank Margins %22 Fig 50: Five-Year History of key Financials (All figures in SAR)22

www.BuySellSignals.com Page 24 Quarterly Research report: Alawwal Bank Thursday, June 13, 2019 Saudi Arabia Edition Glossary ADVT (Fig 14): Relative Price Change [RPC] (Fig 21): Average Daily Volume of shares Traded Relative price change is price change of stock with respect to Annual Return (Fig 8): Benchmark Index Dividends Paid In a 12-Month Period/Price at the Beginning of the Relative Strength (n-th Period) (Fig 31, 2, 33): Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%) Price close today/Price close 'n' periods ago, then ranked by Bearish Parameters (Page 6): percentile within the entire market. In charts and benchmarked with Quotes from Legends Return on Equity (Shareholders' Funds) (Fig 13, 16): Bullish Parameters (Page 2): Net Profit/Net Assets (%) In charts and benchmarked with Quotes from Legends TSR (Fig 20): Capital Gain/Loss from n Years Ago to n-1 Years Ago: Total Shareholder Returns is expressed as an annualized rate of return Capital Gain or Loss over 1 Year/Price 1 Year Ago (%) for shareholders after allowing for capital appreciation and dividend Moving Average Price (n periods): TTM: Sum of Prices for each Period/Number of Periods Trailing 12 Months PVSAR1000 (Fig 17, 4, 5, 18): Turnover Period (Fig 9, 21): Present value of SAR1000 invested 1 year/'n' years ago Time Period required for trading all Outstanding Shares Price Close/Moving Avg Price: Turnover Rate (Fig 33, 9, 21): Latest Price/Moving Average Price Saudi Riyal value of annual trading volume as a percentage of Price/Earnings (Fig 33): market capitalisation Share Price/Earnings Per Share (times) Volume Index (VI) (Fig 25): Price/NTA (Fig 13, 16, 33): Number of shares traded in the period/Average number of shares Closing Share Price/Net Tangible Assets Per Share (times) traded for the period Volume Weighted Average Price (VWAP) (Fig 17, 21): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Momentum Up Price increase fuelled by above average Volume

Weak Momentum Up Price increase on below average Volume

Momentum Down Price decrease fuelled by above average Volume

Weak Momentum Down Price decrease on below average Volume

Strong Unchanged Price unchanged on above average Volume

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