Saudi Investment Bank : SAIB Integrated Annual Report 2021

INTEGRATED REPORT 2021

The Custodian of the Two Holy Mosques	His Royal Highness Crown Prince
King Salman Bin Abdulaziz Al Saud	Mohammad Bin Salman Bin Abdulaziz
	Al Saud

2 I The Saudi Investment Bank I Integrated Report 2021

GRI 102-12

GRI 102-48

GRI 102-53

GRI 102-49, 102-50, 102-51, 102-52

GRI 102-46

ABOUT THIS REPORT

This is The Saudi Investment Bank's GRI 102-1 (the Bank) fifth Integrated Annual Report (IR). The Bank uses the IR to convey to its Stakeholders its strategy, governance, performance, and prospects within the context of the operating environment and how it creates value in the short, medium, and long-term.

Integrated reports balance the need to communicate effectively through concise, relevant information while providing comprehensive compliance-related disclosures. The Report is available in print and PDF format.

Report boundary

The Report only covers the operations of The Saudi Investment Bank, unless otherwise stated. The financial reporting includes the Bank, its subsidiaries and associate companies (referred to as the Group).

Reporting period

This report covers the period from January 1 to December 31, 2021 and is consistent with our usual annual reporting cycle for financial and sustainability reporting. There are no restatements of information provided in previous

reports and no significant changes from previous reporting periods in the scope and aspect boundaries.

This IR is issued in both English and Arabic. In the event of a discrepancy, the Arabic version shall prevail.

Compliance

The information contained herein, as in the past, is in compliance with all applicable laws, regulations, and standards.

Integrated reporting framework

In preparing this IR, we have drawn on concepts, principles, and guidelines given in the International (IR) Framework.

The International (IR) Framework does not require organizations preparing an integrated report

to adopt the (IR) Framework categorization of capitals. Accordingly, we have categorized the capitals differently in our business model diagram to better describe our value creation process. Our value creation story is a discussion based on our strategic imperatives and their implementation.

Financial reporting standards

The Consolidated Financial Statements for the year ended December 31, 2021 have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed in the Kingdom of Saudi Arabia (KSA), and other standards and pronouncements issued by the Saudi Organization for Certified Public Accountants (SOCPA). They are in compliance with the provisions of the Banking Control Law, the Regulations for Companies in the KSA, and the Bylaws of the Bank.

Sustainability reporting disclosures GRI 102-54

The revised Global Reporting Initiative (GRI)'s Universal Standards 2021, which have been released for public use, are still in the process of developing sector standards for the banking industry. We have therefore prepared this report in accordance with the GRI Standards 2016: Core option. The effective date for implementing the GRI Universal Standards 2021 is January 1, 2023.

Queries

The Bank's Marketing Department is the custodian of this IR. For comments or queries, please contact the Chief Marketing Officer at The Saudi Investment Bank, PO Box 3533, Riyadh, 11481, Kingdom of Saudi Arabia.

Forward looking statements

Certain information contained in this report may constitute 'forward looking statements'. These may involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Group and its subsidiaries to be materially different from the future results, performance or achievements stated or implied.

The Group has no obligation to publicly update or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document, or to reflect the occurrence of anticipated events. These have also not been reviewed or reported on by the Group's Auditors.

REPORT NAVIGATION ICONS

The following key elements of The Saudi Investment Bank strategy are highlighted throughout the IR:

Digitization Innovation Focus

Agility Speed

The SAIB Integrated Report online

The PDF version is published online on the same date as the date of issue of this Integrated Report at https://www.saib.com.sa/integratedreport2021

4 I The Saudi Investment Bank I Integrated Report 2021

TABLE

OF CONTENTS

01	2021 AT A GLANCE GRI 102-7
2021 VALUE CREATION HIGHLIGHTS	10
OUR APPROACH TO VALUE CREATION	12
LETTER FROM THE CHAIRMAN	14

02	THE SAUDI INVESTMENT
	BANK IN CONTEXT
A BRIEF PROFILE			20
OUR LEADERSHIP TEAM		24
THE SAUDI INVESTMENT		28
BANK CORPORATE IDENTITY
OUR SUSTAINABILITY		29
FRAMEWORK
SAUDI VISION 2030		30
OUR CHANGING OPERATING ENVIRONMENT	34
OUR SUSTAINABLE BUSINESS MODEL	38

03	STRATEGIC REVIEW
CHIEF EXECUTIVE OFFICER'S REPORT	44
OUR MATERIAL RISKS AND OPPORTUNITIES	48
MATERIALITY MATRIX		52
OUR STRATEGIC FRAMEWORK	54
FINANCIAL CAPITAL		58

04	PERFORMANCE REVIEW
INSTITUTIONAL CAPITAL	78
INVESTOR CAPITAL		84
CUSTOMER CAPITAL		86
EMPLOYEE CAPITAL		96
BUSINESS PARTNER CAPITAL	104
SOCIAL AND ENVIRONMENTAL CAPITAL	108

05	GOOD STEWARDSHIP
CORPORATE GOVERNANCE	118
RISK MANAGEMENT		121
COMPLIANCE		125

06	FINANCIAL STATEMENTS
FINANCIAL STATEMENTS	126

07	Annexes
ANNEXES	170
ACRONYMS	176
CORPORATE INFORMATION	178

2021 AT	01
A GLANCE GRI 102-7

2021 VALUE CREATION HIGHLIGHTS	10
OUR APPROACH TO VALUE CREATION	12
LETTER FROM THE CHAIRMAN GRI 102-14	14