LEADING THROUGH 2020 INNOVATION Annual Report AND CUSTOMER EXPERIENCE Custodian of the Two Holy Mosques His Royal Highness Prince King Salman bin Abdulaziz Al Saud Mohammed bin Salman bin Abdulaziz Al Saud Crown Prince, Deputy Prime Minister and Minister of Defense The Late Chairman Dr. Abdulrahman Ibrahim AlHumaid 1949 - 2021 BANK PROFILE STRATEGIC REVIEW CORPORATE GOVERNANCE AT A GLANCE

Net Profit before Zakat  Total Assets  ROAA% 

Financial Highlights SAR MILLION SAR MILLION 1,502 95,744 1.5% Net Profit before Zakat 2020 1,502 2020 95,744 2020 1.5% amounted to 2019 1,387 2019 86,003 2019 1.6% SAR 1,502 million,

while Operating Operating Income  Customer Deposits  ROAE%  Income was SAR 4,262 million SAR MILLION SAR MILLION 4,262 71,553 13.4%

2020 4,262 2020 71,553 2020 13.4% 2019 3,945 2019 67,106 2019 14.4%

Operating Expenses  Cost to Income  EPS 

SAR MILLION SAR 2,760 48.5% 1.81

2020 2,760 2020 48.5% 2020 1.81 2019 2,559 2019 51.1% 2019 1.67

CONTENTS

Bank Profile 28 Financial Review Corporate Governance 06 At a Glance 30 Risk Management 54 Board of Directors 08 About Us 36 Operating Review 56 Executive Management 10 Year in Review 42 Accelerating our Transformation 58 Governance 12 Our Value Creation Story through Digitalization 44 COVID-19 Impact and Response Strategic Review 46 Our People 48 Sustainability 16 Chairman’s Statement 18 Leading through Innovation and Customer Experience 20 CEO’s Statement 24 Our Strategy 26 Our Marketplace

6 BANK ALBILAD ANNUAL REPORT 2020 7 BANK PROFILE STRATEGIC REVIEW CORPORATE GOVERNANCE

AT A GLANCE (continued)

Operating Highlights About Us exchangers: Mohammad & Abdullah AlSubaiei Exchange Bank Albilad is a Saudi joint stock company, established Co., Heirs of Abdulaziz bin Sulaiman AlMugairin, AlRajhi by Royal Decree in 1425H (corresponding to 2004) with Trading Exchange Est., AlRajhi Trading Est., Mohammad a current corporate capital of SAR 7,500,000,000. It Salih Sayrafi Est., Abdulmohsen AlOmari Est., Yousef is headquartered in , Kingdom of , Abdulwahab Numatallah Co. and Ali Hazaa’ & Partners and listed (ALBILAD) on , the Saudi Stock for Trading & Exchange. These shareholders contributed 79% Exchange. The Bank operates over 150 branches across SAR 1.5 billion towards Bank Albilad, while the public Increase in customer registration on online the Kingdom of Saudi Arabia including 7 sales centres also paid SAR 1.5 billion. channels and more than 175 Enjaz remittance centres. The Bank provides Shari’a-compliant services to personal, corporate Bank Albilad owns Albilad Investment Company,(Albilad and SME clients, supporting the latter through specialized Capital) which undertakes investment and asset centers in a number of cities throughout the Kingdom. management activities. It also owns Albilad Real Estate Company Ltd, which performs registration procedures OUR HISTORY for real estate guarantees obtained by the bank from 173,926 64% Established in 2004, Bank Albilad was the Kingdom’s its clients. It also possesses strategic shares in other Increase in Mobile Banking transactions 11th bank. The original shareholders to invest in companies. Accounts opened digitally in 2020, volume the Bank were eight of the country’s leading money a 68% increase over 2019

68% Awards and honors in 2020 Increase in account opened digitally over the same period last year

6,437 YouGovBrandIndex Finnovex Awards MEA FINANACE Awards Training seats Bank Albilad among the best 10 Excellence in Innovative Best Mobile Banking Solution KSA improved brands in KSA-2020 Banking-KSA Awards-2020 379,718 Hours of training delivered

Point Checkout 32,475 MEA FINANACE Awards International Business Magazine Mukafaat Albilad among Best Customer complaints addressed Best Online Banking Service Best Digital Banking KSA-2020 Loyalty Programs-Middle East

8 BANK ALBILAD ANNUAL REPORT 2020 9 BANK PROFILE STRATEGIC REVIEW CORPORATE GOVERNANCE YEAR IN REVIEW

JANUARY MARCH SEPTEMBER DECEMBER Bank Albilad introduced a WhatsApp The Bank launched Enjaz App. The Bank launched the Enjaz Digi Account Bank Albilad signed a Cooperation Service for clients allowing for expedited as the first to do so in KSA. Agreement with the Tourism Development. transactions / communications. JUNE The Bank launched instant POS Terminal OCTOBER DECEMBER FEBRUARY issuance in its branches, the first to do so in Bank Albilad won the Best Mobile Banking Wins CGI Excellence Award (Alfaisal Announced record high profit in 2019. KSA. Solution and Online Banking Awards from University). MEA Finance. FEBRUARY JUNE The Bank was recognized with the Best Bank Albilad was listed as #15 in Forbes NOVEMBER Digital Banking Award by International Middle East Top 100 Companies. Bank Albilad was recognized for Excellence Business Magazine. in Innovative Banking by the Finnovex AUGUST Awards. MARCH The solar energy system in the HO building Bank Albilad implemented a savings became functional. DECEMBER program initiative in schools and The Bank was listed in the 10 Best universities. Improved Brands in Saudi Arabia by the YouGov Brand Index.

Albilad App Enjaz App IR App

10 BANK ALBILAD ANNUAL REPORT 2020 11 BANK PROFILE STRATEGIC REVIEW CORPORATE GOVERNANCE OUR VALUE CREATION STORY

The Bank’s value creation story reflects the Bank Albilad has beaten the average personal finance, consumer finance, evolving demands and expectations of growth in the Kingdom’s banking mortgage lending and corporate the Saudi customer. value it creates for customers. industry for years measured by asset lending has been well-targeted and Bank Albilad works closely with growth, as well as in terms of the effective. It also evidences a strong government agencies to enhance increase in its deposit base. This appetite to leverage the Bank’s the quality of life for consumers and demonstrates the Bank’s successful investment capabilities, and increase business owners alike, whatever their penetration into key segments such as its market share by aligning with the stage of development.

OUR APPROACH OUR DIFFERENTIATORS LEVERAGED ACROSS OUR BUSINESS VERTICALS TO CREATE VALUE

• Diligent and risk-based Strong foothold in the KSA Shareholder value Retail Corporate Enjaz Treasury decision making Islamic banking segment We continue to deliver Banking Banking • Customer centricity With a strong proposition around returns to shareholders • Innovative products and customized solutions, we have solidified and long-term value for services tailored to meet our position as a key institution investors. customer needs providing Islamic banking solutions. • Focus on quality and TO FACILITATE PRODUCTS AND SERVICES efficiency Diversification across business Long-term verticals, products and services • Cards • Financing solutions • Operators relationships with Our continuous efforts to stimulate • Bank accounts • Cash management • Trading stakeholders growth and innovate has been a Our ongoing commitment • Personal financing • Trade finance • Money Market cornerstone of our success. to customers have made • Auto financing • Treasury • Foreign Exchange us a part of their personal Exceptional customer service • Banking Agent • Enjaz Easy • Islamic Financial and professional journey. Derivatives Customer centricity is in our DNA. • Real Estate Financing • Enjaz SWIFT • E-services • Money transfer • Other Treasury services Our continuous investment in enhancing • Corporate account • Direct Investment Employee customer experience keeps. services engagement We have been able to Our people engage with employees Our most important asset are the people FOR OUR CUSTOMERS and create a highly who make our growth path possible. motivated and capable Our training and development enable SMEs Retail Consumers Financial workforce. career progression and operational institutio