----

----

|   |  o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------|------------------------------------------------------------------------------------------------|

|   x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------|--------------------------------------------------------------------------------------|

|   | For the fiscal year ended December 31, 2013 |
|--------|---------------------------------------------|

|   o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------|------------------------------------------------------------------------------------------|

|   o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------|---------------------------------------------------------------------------------------------|

|   | Commission file number: 1-14624 RBS Holdings N.V.(Exact name of Registrant as specified in its charter) The Netherlands(Jurisdiction of incorporation) Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands(Address of principal executive offices) |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Title of each class                                                                                     |   | Name of each exchange on which registered |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|
| Guarantee of 5.90% Non-cumulative Guaranteed Trust PreferredSecurities of RBS Capital Funding Trust V   |   | New York Stock Exchange*                  |
|                                                                                                    |   |                                      |
| Guarantee of 6.25% Non-cumulative Guaranteed Trust PreferredSecurities of RBS Capital Funding Trust VI  |   | New York Stock Exchange**                 |
|                                                                                                    |   |                                      |
| Guarantee of 6.08% Non-cumulative Guaranteed Trust PreferredSecurities of RBS Capital Funding Trust VII |   | New York Stock Exchange***                |
|                                                                                                    |   |                                      |
| 5.90% Non-cumulative Guaranteed Trust Preferred Securities of RBSCapital Funding Trust V                |   | New York Stock Exchange                   |
|                                                                                                    |   |                                      |
| 6.25% Non-cumulative Guaranteed Trust Preferred Securities of RBSCapital Funding Trust VI               |   | New York Stock Exchange                   |
|                                                                                                    |   |                                      |
| 6.08% Non-cumulative Guaranteed Trust Preferred Securities of RBSCapital Funding Trust VII              |   | New York Stock Exchange                   |
|                                                                                                    |   |                                      |
| 4.65% Subordinated Notes due 2018                                                                       |   | Euronext Amsterdam                        |

----

| * | The guarantee is not listed for trading, but is listed only in connection with the registration of the corresponding Non-cumulative Guaranteed Trust Preferred Securities of RBS Capital Funding Trust V. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | The guarantee is not listed for trading, but is listed only in connection with the registration of the corresponding Non-cumulative Guaranteed Trust Preferred Securities of RBS Capital Funding Trust VI. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *** | The guarantee is not listed for trading, but is listed only in connection with the registration of the corresponding Non-cumulative Guaranteed Trust Preferred Securities of RBS Capital Funding Trust VII. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  (Title of each class)                      |   |  (Number of outstanding shares) |
|--------------------------------------------------|--------|--------------------------------------|
| Ordinary shares, par value €0.56 per share |   | 89,287                               |

----

----

|   | 1.   | Financial statements of Saudi Hollandi Bank (a Saudi Joint Stock Company) including the report of the independent accountants, KPMG Al Fozan & Al Sadhan, with respect to such consolidated financial statements. |
|--------|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Exhibit No. |   | Description                                                                                                                                                              |
|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1 (1)     |   | English translation of the amended Articles of Association of RBS Holdings N.V.                                                                                          |
| 7.1(2)      |   | Explanation of ratio calculations                                                                                                                                        |
| 12.1        |   | CEO certification required by Rule 13a-14(a)                                                                                                                             |
| 12.2        |   | CFO certification required by Rule 13a-14(a)                                                                                                                             |
| 13.1        |   | Certification required by Rule 13a-14(b)                                                                                                                                 |
| 15.1(2)     |   | Consent of Deloitte LLP, independent registered public accounting firm with respect to the consolidated financial statements of RBS Holdings N.V.                        |
| 15.2(2)     |   | Consent of Deloitte Accountants B.V., independent registered public accounting firm with respect to the consolidated financial statements of RBS Holdings N.V            |
| 15.3        |   | Consent of KPMG Al Fozan & Al Sadhan, independent accountants, with respect to the audited financial statements of Saudi Hollandi Bank (a Saudi Joint Stock Company) |
| 15.4 (3)    |   | Risk factors of The Royal Bank of Scotland Group plc                                                                                                                     |

----

----

|                           | KPMG Al Fozan & Al Sadhan          | Telephone        | +966 11 874 8500 |
|---------------------------|----------------------------------------|------------------|------------------|
| KPMG Tower                | Fax                                    | +966 11 874 8600 |
| Salahudeen Al Ayoubi Road | Internet                               | www.kpmg.com.sa  |
| P O Box 92876             |                                   |             |
| Riyadh 11663              | License No. 46/11/323 issued 11/3/1992 |
|                      | Kingdom of Saudi Arabia                |             |             |

| To: | The Board of Directors Saudi Hollandi BankA Saudi Joint Stock CompanyRiyadh, Kingdom of Saudi Arabia |
|-----|------------------------------------------------------------------------------------------------------|

|   /s/ Abdullah H. Al Fozan |   |                                                                                                                                                                                                                                              |   |
|--------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Abdullah H. Al FozanLicense No. 348  |   |                                                                                                                                                                                                                                         |
|                                 |   |                                                                                                                                                                                                                                         |
| Date: 18 September 2014              |   |                                                                                                                                                                                                                                         |
|                                 |   |                                                                                                                                                                                                                                         |
|                                 |   |                                                                                                                                                                                                                                         |
|                                 |   |                                                                                                                                                                                                                                         |
|                                 |   | KPMG Al Fozan & Al Sadhan, a partnership registered in Saudi Arabia and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. |   |

----

|                                             |   | Notes  |   |   | 2013   |   |       | 2012   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|------------|--------|--------|
|                                             |   |   |   |   |   |   |       |   |   |
| ASSETS                                           |   |   |   |   |   |   |       |   |   |
| Cash and balances with SAMA                      |   |   | 4      |   |   |   | 6,662,522  |   |   |   | 9,562,455 |   |
| Due from banks and other financial institutions  |   |   | 5      |   |   |   | 1,751,367  |   |   |   | 840,717 |   |
| Investments, net                                 |   |   | 6      |   |   |   | 16,849,162 |   |   |   | 11,378,577 |   |
| Loans and advances, net                          |   |   | 7      |   |   |   | 53,652,325 |   |   |   | 45,276,199 |   |
| Investment in an associate                       |   |   | 8      |   |   |   | 17,233     |   |   |   | 18,050 |   |
| Property and equipment, net                      |   |   | 9      |   |   |   | 504,802    |   |   |   | 488,767 |   |
| Other assets                                     |   |   | 10     |   |   |   | 1,030,850  |   |   |   | 940,748 |   |
|                                             |   |   |   |   |   |   |       |   |   |   |   |   |
| Total assets                                     |   |   |   |   |   |   | 80,468,261 |   |   |   | 68,505,513 |   |
|                                             |   |   |   |   |   |   |       |   |   |   |   |   |
|                                             |   |   |   |   |   |   |       |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY       |   |   |   |   |   |   |       |   |   |   |   |   |
|                                             |   |   |   |   |   |   |       |   |   |   |   |   |
| Liabilities                                      |   |   |   |   |   |   |       |   |   |   |   |   |
| Due to banks and other financial institutions    |   |   | 12     |   |   |   | 2,494,278  |   |   |   | 1,474,923 |   |
| Customers’ deposits                        |   |   | 13     |   |   |   | 61,875,449 |   |   |   | 53,913,672 |   |
| Subordinated debt                                |   |   | 14     |   |   |   | 4,625,000  |   |   |   | 2,900,000 |   |
| Other liabilities                                |   |   | 15     |   |   |   | 2,072,106  |   |   |   | 1,910,939 |   |
|                                             |   |   |   |   |   |   |       |   |   |   |   |   |
| Total liabilities                                |   |   |   |   |   |   | 71,066,833 |   |   |   | 60,199,534 |   |
|                                             |   |   |   |   |   |   |       |   |   |   |   |   |
| Shareholders’ equity                       |   |   |   |   |   |   |       |   |   |   |   |   |
| Share capital                                    |   |   | 16     |   |   |   | 3,969,000  |   |   |   | 3,969,000 |   |
| Statutory reserve                                |   |   | 17     |   |   |   | 3,081,128  |   |   |   | 2,705,726 |   |
| General reserve                                  |   |   |   |   |   |   | 130,000    |   |   |   | 130,000 |   |
| Other reserves                                   |   |   | 18     |   |   |   | 21,690     |   |   |   | (5,790 | ) |
| Reserve for bonus shares                         |   |   | 16     |   |   |   | 793,800    |   |   |   | - |   |
| Retained earnings                                |   |   |   |   |   |   | 915,348    |   |   |   | 1,051,286 |   |
| Proposed gross dividends                         |   |   | 26     |   |   |   | 468,342    |   |   |   | 444,528 |   |
| Staff share based plan reserve                   |   |   | 39     |   |   |   | 22,120     |   |   |   | 11,229 |   |
|                                             |   |   |   |   |   |   |       |   |   |   |   |   |
| Total shareholders’ equity                 |   |   |   |   |   |   | 9,401,428  |   |   |   | 8,305,979 |   |
|                                             |   |   |   |   |   |   |       |   |   |   |   |   |
| Total liabilities and shareholders’ equity |   |   |   |   |   |   | 80,468,261 |   |   |   | 68,505,513 |   |

----

|                                                |   | Notes  |   |   | 2013   |   |      | 2012   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Special commission income                           |   |   | 20     |   |   |   | 2,095,505 |   |   |   | 1,719,767 |   |
| Special commission expense                          |   |   | 20     |   |   |   | 471,793   |   |   |   | 347,433 |   |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Net special commission income                       |   |   |   |   |   |   | 1,623,712 |   |   |   | 1,372,334 |   |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Fee and commission income, net                      |   |   | 21     |   |   |   | 732,225   |   |   |   | 627,705 |   |
| Exchange income, net                                |   |   |   |   |   |   | 121,133   |   |   |   | 117,092 |   |
| Trading income, net                                 |   |   | 22     |   |   |   | 136,399   |   |   |   | 97,661 |   |
| Dividend income from available for sale investments |   |   |   |   |   |   | 3,276     |   |   |   | - |   |
| (Losses) / gains on non-trading investments, net    |   |   | 23     |   |   |   | (750      | )      |   |   | 4,555 |   |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Total operating income                              |   |   |   |   |   |   | 2,615,995 |   |   |   | 2,219,347 |   |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Salaries and employee-related expenses              |   |   | 24     |   |   |   | 508,856   |   |   |   | 474,103 |   |
| Rent and premises-related expenses                  |   |   |   |   |   |   | 83,899    |   |   |   | 73,073 |   |
| Depreciation and amortisation                       |   |   | 9      |   |   |   | 96,112    |   |   |   | 110,741 |   |
| Other general and administrative expenses           |   |   |   |   |   |   | 206,208   |   |   |   | 188,843 |   |
| Impairment charge for credit losses, net            |   |   | 7(b)   |   |   |   | 218,497   |   |   |   | 139,904 |   |
| Release of impairment charge of investments         |   |   | 6(g)   |   |   |   | -         |   |   |   | (20,000 | ) |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Total operating expenses                            |   |   |   |   |   |   | 1,113,572 |   |   |   | 966,664 |   |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Operating income                                    |   |   |   |   |   |   | 1,502,423 |   |   |   | 1,252,683 |   |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Share in (loss) / earning of an associate           |   |   | 8      |   |   |   | (817      | )      |   |   | 300 |   |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Net income for the year                             |   |   |   |   |   |   | 1,501,606 |   |   |   | 1,252,983 |   |
|                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Basic and diluted EPS                               |   |   | 25     |   |   |   | 3.78      |   |   |   | 3.16 |   |

----

|                                                      |   | Note   |   |   | 2013   |      |      | 2012   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|-----------|-----------|--------|--------|
| Net income for the year                                   |   |   |   |   |   | 1,501,606 |      |   |   | 1,252,983 |   |
|                                                      |   |   |   |   |   |      |      |   |   |   |   |
| Other comprehensive income:                               |   |   |   |   |   |      |      |   |   |   |   |
|                                                      |   |   |   |   |   |      |      |   |   |   |   |
| Items that can be recycled back to consolidated statement |   |   |   |   |   |      |      |   |   |   |   |
| of income in future                                       |   |   |   |   |   |      |      |   |   |   |   |
| Available for sale investments:                           |   |   |   |   |   |      |      |   |   |   |   |
| - Net change in fair value                                |   |   | 18     |   |   |      | 19,329    |   |   |   | 4,395 |   |
| - Transferred to the consolidated statement of income     |   |   | 18     |   |   |      | 1,796     |   |   |   | 4,536 |   |
|                                                      |   |   |   |   |   |      | 21,125    |   |   |   | 8,931 |   |
| Cash flow hedges:                                         |   |   |   |   |   |      |      |   |   |   |   |   |
| - Transferred to the consolidated statement of income     |   |   | 18     |   |   |      | 6,355     |   |   |   | 5,519 |   |
|                                                      |   |   |   |   |   |      |      |   |   |   |   |   |
| Total other comprehensive income                          |   |   |   |   |   |      | 27,480    |   |   |   | 14,450 |   |
|                                                      |   |   |   |   |   |      |      |   |   |   |   |   |
| Total comprehensive income for the year                   |   |   |   |   |   |      | 1,529,086 |   |   |   | 1,267,433 |   |

----

|                           |   |   |   |   |         |      |      |             |   |      |           |   |   | Other reserves               |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |
|--------------------------------|--------|--------|--------|--------|--------------|-----------|-----------|------------------|--------|-----------|----------------|--------|--------|------------------------------|---------|--------|-----------------|--------|--------|------------------------|--------|--------|------------------|--------|--------|------------------------|---------|--------|-----------------------------|-----------|
|                           |   | Notes  |   |   | ShareCapital |      |      | Statutoryreserve |   |      | GeneralReserve |   |   | Availablefor saleinvestments |    |   | Cash flowhedges |   |   | Reservefor bonusshares |   |   | Retainedearnings |   |   | Proposedgrossdividends |    |   | Staff sharebasedplanreserve |      |   | Totalshareholders'equity |   |
| 2013                           |   |   |   |   |         |      |      |             |   |      |           |   |   |                         |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |   |   |   |
| Balance at beginning of the    |   |   |   |   |         |      |      |             |   |      |           |   |   |                         |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |   |   |   |
| year                           |   |   |   |   |         | 3,969,000 |      |             |   | 2,705,726 |           |   |   | 130,000                      |    |   |            | 565    |   |                   |   | (6,355 | )                |   |   | -                      |    |   |                        | 1,051,286 |   |   |   | 444,528 |   |   |   | 11,229 |   |   |   | 8,305,979 |   |
| Total comprehensive income     |   |   |   |   |         |      |      |             |   |      |           |   |   |                         |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for the year                   |   |   |   |   |         | -         |      |             |   | -         |           |   |   | -                            |    |   |            | 21,125 |   |                   |   | 6,355  |             |   |   | -                      |    |   |                        | 1,501,606 |   |   |   | - |   |   |   | - |   |   |   | 1,529,086 |   |
| Staff share based plan         |   |   |   |   |         |      |      |             |   |      |           |   |   |                         |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| transactions                   |   |   | 39     |   |         |      | -         |             |   |      | -              |   |   |                         | -       |   |            |   | -      |                   |   |   | -                |   |   |                   | -       |   |                        |      | - |   |   |   | - |   |   |   | 10,891 |   |   |   | 10,891 |   |
|                           |   |   |   |   |         |      |      |             |   |      |           |   |   |                         |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer to statutory reserve  |   |   | 17     |   |         |      | -         |             |   |      | 375,402        |   |   |                         | -       |   |            |   | -      |                   |   |   | -                |   |   |                   | -       |   |                        |      | (375,402 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                           |   |   |   |   |         |      |      |             |   |      |           |   |   |                         |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proposed bonus shares          |   |   | 16     |   |         |      | -         |             |   |      | -              |   |   |                         | -       |   |            |   | -      |                   |   |   | -                |   |   |                   | 793,800 |   |                        |      | (793,800 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                           |   |   |   |   |         |      |      |             |   |      |           |   |   |                         |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends paid                 |   |   |   |   |         |      | -         |             |   |      | -              |   |   |                         | -       |   |            |   | -      |                   |   |   | -                |   |   |                   | -       |   |                        |      | - |   |   |   | (444,528 | ) |   |   | - |   |   |   | (444,528 | ) |
|                           |   |   |   |   |         |      |      |             |   |      |           |   |   |                         |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proposed gross dividends       |   |   | 26     |   |         |      | -         |             |   |      | -              |   |   |                         | -       |   |            |   | -      |                   |   |   | -                |   |   |                   | -       |   |                        |      | (468,342 | ) |   |   | 468,342 |   |   |   | - |   |   |   | - |   |
|                           |   |   |   |   |         |      |      |             |   |      |           |   |   |                         |    |   |            |   |   |                   |   |   |             |   |   |                   |    |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at the end of the year |   |   |   |   |         |      | 3,969,000 |             |   |      | 3,081,128      |   |   |                         | 130,000 |   |            |   | 21,690 |                   |   |   | -                |   |   |                   | 793,800 |   |                        |      | 915,348 |   |   |   | 468,342 |   |   |   | 22,120 |   |   |   | 9,401,428 |   |

| 2012                           |   |   |   |   |   |      |      |   |   |      |      |   |   |    |    |   |   |   |   |   |   |    |   |   |   |    |     |   |   |      |      |   |   |
|--------------------------------|--------|--------|--------|--------|--------|-----------|-----------|--------|--------|-----------|-----------|--------|--------|---------|---------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|----------|--------|--------|-----------|-----------|--------|--------|
| Balance at beginning of the    |   |   |   |   |   |      |      |   |   |      |      |   |   |    |    |   |   |   |   |   |   |    |   |   |   |    |     |   |   |      |      |   |   |
| year                           |   |   |   |   |   | 3,307,500 |      |   |   | 2,392,480 |      |   |   | 130,000 |    |   |   | (8,366 | )      |   |   | (11,874 | )      |   |   | 661,500 |     |   |   | 556,077   |      |   |   | 377,055 |   |   |   | 3,950 |   |   |   | 7,408,322 |   |
| Total comprehensive income     |   |   |   |   |   |      |      |   |   |      |      |   |   |    |    |   |   |   |   |   |   |    |   |   |   |    |     |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |
| for the year                   |   |   |   |   |   | -         |      |   |   | -         |      |   |   | -       |    |   |   | 8,931  |   |   |   | 5,519   |   |   |   | -       |     |   |   | 1,252,983 |      |   |   | - |   |   |   | - |   |   |   | 1,267,433 |   |
| Staff share based plan         |   |   |   |   |   |      |      |   |   |      |      |   |   |    |    |   |   |   |   |   |   |    |   |   |   |    |     |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |
| transactions                   |   |   | 39     |   |   |      | -         |   |   |      | -         |   |   |    | -       |   |   |   | -      |   |   |    | -      |   |   |    | -        |   |   |      | -         |   |   |   | - |   |   |   | 7,279 |   |   |   | 7,279 |   |
|                           |   |   |   |   |   |      |      |   |   |      |      |   |   |    |    |   |   |   |   |   |   |    |   |   |   |    |     |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer to statutory reserve  |   |   | 17     |   |   |      | -         |   |   |      | 313,246   |   |   |    | -       |   |   |   | -      |   |   |    | -      |   |   |    | -        |   |   |      | (313,246  | )      |   |   | - |   |   |   | - |   |   |   | - |   |
|                           |   |   |   |   |   |      |      |   |   |      |      |   |   |    |    |   |   |   |   |   |   |    |   |   |   |    |     |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bonus shares issued            |   |   |   |   |   |      | 661,500   |   |   |      | -         |   |   |    | -       |   |   |   | -      |   |   |    |   |   |   |    | (661,500 | )      |   |      | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                           |   |   |   |   |   |      |      |   |   |      |      |   |   |    |    |   |   |   |   |   |   |    |   |   |   |    |     |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends paid                 |   |   |   |   |   |      | -         |   |   |      | -         |   |   |    | -       |   |   |   | -      |   |   |    | -      |   |   |    | -        |   |   |      | -         |   |   |   | (377,055 | ) |   |   | - |   |   |   | (377,055 | ) |
|                           |   |   |   |   |   |      |      |   |   |      |      |   |   |    |    |   |   |   |   |   |   |    |   |   |   |    |     |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proposed gross dividends       |   |   | 26     |   |   |      | -         |   |   |      | -         |   |   |    | -       |   |   |   | -      |   |   |    | -      |   |   |    | -        |   |   |      | (444,528  | )      |   |   | 444,528 |   |   |   | - |   |   |   | - |   |
|                           |   |   |   |   |   |      |      |   |   |      |      |   |   |    |    |   |   |   |   |   |   |    |   |   |   |    |     |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at the end of the year |   |   |   |   |   |      | 3,969,000 |   |   |      | 2,705,726 |   |   |    | 130,000 |   |   |   | 565    |   |   |    | (6,355 | )      |   |    | -        |   |   |      | 1,051,286 |   |   |   | 444,528 |   |   |   | 11,229 |   |   |   | 8,305,979 |   |

----

|                                                                                 |   | Notes  |   |   | 2013   |                                                     |        | 2012   |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|----------------------------------------------------------|-------------|--------|--------|
| OPERATING ACTIVITIES                                                                 |   |   |   |   |   |                                                     |        |   |   |
| Net income for the year                                                              |   |   |   |   |   | 1,501,606                                                |        |   |   | 1,252,983 |   |
| Adjustments to reconcile net income to net cash from operating activities:           |   |   |   |   |   |                                                     |        |   |   |   |   |
|                                                                                 |   |   |   |   |   |                                                     |        |   |   |   |   |
| (Accretion of discounts) and amortisation of premium on non-trading investments, net |   |   |   |   |   | (80,491                                                  | )           |   |   | (44,880 | ) |
| Gain on sale of property and equipment                                               |   |   |   |   |   | (73                                                      | )           |   |   | - |   |
| Losses / (gains) on non-trading investments, net                                     |   |   |   |   |   | 750                                                      |        |   |   | (4,555 | ) |
| Depreciation and amortisation                                                        |   |   | 9      |   |   |                                                     | 96,112      |   |   |   | 110,741 |   |
| Impairment charge for credit losses, net                                             |   |   | 7(b)   |   |   |                                                     | 218,497     |   |   |   | 139,904 |   |
| Share in loss / (earning) of an associate                                            |   |   | 8      |   |   |                                                     | 817         |   |   |   | (300 | ) |
| Release of impairment charge of investments                                          |   |   | 6(g)   |   |   |                                                     | -           |   |   |   | (20,000 | ) |
| Staff share based plan transactions                                                  |   |   |   |   |   |                                                     | 10,891      |   |   |   | 7,279 |   |
|                                                                                 |   |   |   |   |   |                                                     | 1,748,109   |   |   |   | 1,441,172 |   |
| Net (increase) / decrease in operating assets:                                       |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| Statutory deposit with SAMA                                                          |   |   |   |   |   |                                                     | (496,551    | )      |   |   | (348,626 | ) |
| Due from banks and other financial institutions maturing after                       |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| ninety days from the date of acquisition                                             |   |   |   |   |   |                                                     | (937,000    | )      |   |   | - |   |
| Investments held as FVIS (including trading investments)                             |   |   |   |   |   |                                                     | -           |   |   |   | 11,110 |   |
| Loans and advances, net                                                              |   |   |   |   |   |                                                     | (8,594,623  | )      |   |   | (8,006,505 | ) |
| Other assets                                                                         |   |   |   |   |   |                                                     | (189,032    | )      |   |   | 82,627 |   |
| Net increase / (decrease) in operating liabilities:                                  |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| Due to banks and other financial institutions                                        |   |   |   |   |   |                                                     | 1,019,355   |   |   |   | (136,168 | ) |
| Customers’ deposits                                                            |   |   |   |   |   |                                                     | 7,961,777   |   |   |   | 9,224,936 |   |
| Other liabilities                                                                    |   |   |   |   |   |                                                     | 161,167     |   |   |   | (78,398 | ) |
|                                                                                 |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| Net cash from operating activities                                                   |   |   |   |   |   |                                                     | 673,202     |   |   |   | 2,190,148 |   |
|                                                                                 |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                 |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| Proceeds from sale and maturity of non-trading investments                           |   |   |   |   |   |                                                     | 8,503,821   |   |   |   | 15,966,576 |   |
| Purchase of non-trading investments                                                  |   |   |   |   |   |                                                     | (13,866,435 | )      |   |   | (15,775,362 | ) |
| Purchase of property and equipment                                                   |   |   | 9      |   |   |                                                     | (112,147    | )      |   |   | (110,009 | ) |
| Proceeds from sale of property and equipment                                         |   |   |   |   |   |                                                     | 73          |   |   |   | - |   |
|                                                                                 |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| Net cash (used in) / from investing activities                                       |   |   |   |   |   |                                                     | (5,474,688  | )      |   |   | 81,205 |   |
|                                                                                 |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                 |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| Proceeds from issuance of subordinated debt                                          |   |   |   |   |   |                                                     | 2,500,000   |   |   |   | 1,400,000 |   |
| Repayment of subordinated debt                                                       |   |   |   |   |   |                                                     | (775,000    | )      |   |   | - |   |
| Dividends paid net of Zakat and income tax recovered from shareholders               |   |   |   |   |   |                                                     | (346,348    | )      |   |   | (198,450 | ) |
| Net cash from financing activities                                                   |   |   |   |   |   |                                                     | 1,378,652   |   |   |   | 1,201,550 |   |
| Net (decrease) / increase in cash and cash equivalents                               |   |   |   |   |   |                                                     | (3,422,834  | )      |   |   | 3,472,903 |   |
| Cash and cash equivalents at beginning of the year                                   |   |   |   |   |   |                                                     | 7,796,044   |   |   |   | 4,323,141 |   |
| Cash and cash equivalents at end of the year                                         |   |   | 27     |   |   |                                                     | 4,373,210   |   |   |   | 7,796,044 |   |
| Special commission received during the year                                          |   |   |   |   |   |                                                     | 2,071,901   |   |   |   | 1,678,131 |   |
| Special commission paid during the year                                              |   |   |   |   |   |                                                     | 446,430     |   |   |   | 306,215 |   |
| Supplemental non-cash information                                                    |   |   |   |   |   |                                                     |        |   |   |   |   |   |
| Net change in fair value and transfers to consolidated statement of income           |   |   |   |   |   |                                                     | 27,480      |   |   |   | 14,450 |   |
| ────────                             |   |   |   |   |   | ──────── |        |   |   |   |   |

----

| 1   | GENERAL |
|---------------|---------|

| 2 | BASIS OF PREPARATION |
|---|----------------------|

| -   | derivatives which are held at fair value; |
|---------------|-------------------------------------------|

| -   | available for sale investments; and |
|---------------|-------------------------------------|

| -   | recognised financial assets and financial liabilities designated as hedged items in qualifying fair value hedge relationships which are adjusted for changes in fair value attributable to the risk being hedged. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | liabilities for share based payments |
|---------------|--------------------------------------|

----

| -   | In the principal market for the asset or liability, or |
|---------------|--------------------------------------------------------|

| -   | In the absence of a principal market, in the most advantageous market for the asset or liability |
|---------------|--------------------------------------------------------------------------------------------------|

|   | Level 1 — | Quoted (unadjusted) market prices in active markets for identical assets or liabilities |
|--------|-----------------|-----------------------------------------------------------------------------------------|

|   | Level 2 — | Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 — | Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------|

----

| 3   | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|---------------|--------------------------------------------|

|   | (i)   | New standards |
|--------|-----------------|---------------|

|   | -   | IFRS 10 Consolidated financial statements: IFRS 10 replaces the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities. The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in ’special purpose entities’). |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | IFRS 12 Disclosure of Interests in Other Entities: Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows. |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | IFRS 13 Fair value measurements: The IFRS defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value. Additional disclosures wherever required, are provided in the relevant notes relating to the assets and liabilities whose fair values have been determined. Fair value hierarchy is provided in Note 33. |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii)   | Amendments to existing standards |
|--------|------------------|----------------------------------|

|   | -   | Amendments to IAS 1 Presentation of financial statements: amends IAS 1 to revise the way other comprehensive income is presented. |
|--------|---------------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | -   | Amendments to IFRS 7 Financial Instruments: Disclosure: Amends the disclosure requirements in IFRS 7 to require information about all recognised financial instruments that are set off in accordance with paragraph 42 of IAS 32 and also require disclosure of information about recognised financial instruments subject to enforceable master netting arrangements and agreements even if they are not set off under IAS 32. |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | IAS 19 Employee Benefits – Amendments: The amendments to IAS 19 remove the option to defer the recognition of actuarial gains and losses, i.e., the corridor mechanism. All changes in the value of defined benefit plans will be recognised in profit or loss and other comprehensive income. |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | IAS 27 Separate Financial Statements (2011): Now only deals with the requirements for separate financial statements, which have been carried over largely unamended from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements. |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | IAS 28 Investments in Associates and Joint Ventures (2011): The majority of these revisions result from the incorporation of Joint ventures into IAS 28 (2011) and the fundamental approach to accounting for equity accounted investments has not changed. |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | The IASB has published Annual Improvements to IFRSs: 2009-2011 cycle of improvements that contain amendments to the following standards with consequential amendments to other standards: |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | IFRS 1 - First time adoption of IFRS: Repeated application of IFRS 1 and borrowing cost exemption; |
|--------|---------------|----------------------------------------------------------------------------------------------------|

|   | -   | IAS 1 – Presentation of financial statements: Comparative information beyond minimum requirements and presentation of the opening statement of financial position and related notes; |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | IAS 16 – Property, plant and equipment: Classification of servicing equipment; |
|--------|---------------|--------------------------------------------------------------------------------------|

|   | -   | IAS 34 – Interim Financial Reporting: Segment assets and liabilities. |
|--------|---------------|-----------------------------------------------------------------------------|

|   | -   | Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee) |
|--------|---------------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | -   | Exposure, or rights, to variable returns from its involvement with the investee, and |
|--------|---------------|--------------------------------------------------------------------------------------|

|   | -   | The ability to use its power over the investee to affect its returns when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | The contractual arrangement with the other vote holders of the investee |
|--------|---------------|-------------------------------------------------------------------------|

|   | -   | Rights arising from other contractual arrangements |
|--------|---------------|----------------------------------------------------|

|   | -   | The Group’s voting rights and potential voting rights |
|--------|---------------|-------------------------------------------------------------|

----

|   | - | Derecognises the assets (including goodwill, if any) and liabilities of the subsidiary |
|--------|---|----------------------------------------------------------------------------------------|

|   | - | Derecognises the carrying amount of any non-controlling interests |
|--------|---|-------------------------------------------------------------------|

|   | -   | Derecognises the cumulative translation differences recorded in equity |
|--------|---------------|------------------------------------------------------------------------|

|   | -   | Recognises the fair value of the consideration received |
|--------|---------------|---------------------------------------------------------|

|   | -   | Recognises the fair value of any investment retained |
|--------|---------------|------------------------------------------------------|

|   | -   | Recognises any surplus or deficit in profit or loss |
|--------|---------------|-----------------------------------------------------|

|   | -   | Reclassifies the parent’s share of components previously recognised in OCI to profit or loss or retained earnings, as appropriate, as would be required if the Group had directly disposed of the related assets or liabilities. |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b)   | Investments in associates |
|--------|----------------|---------------------------|

|   | c) | Trade date accounting |
|--------|----|-----------------------|

----

----

----

|   | •   | Portfolio and other management advisory and service fees are recognised over the period of applicable service contracts usually on time proportionate basis. |
|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •   | Fee received on asset management, wealth management, financial planning, custody services and other similar services that are provided over an extended period of time, are recognised over the period when the services are being provided. |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •   | Loan commitment fees for loans that are likely to be drawn down and other credit related fees are deferred (together with any incremental costs) and recognised as an adjustment to the effective commission rate on the loan. When a loan commitment is not expected to result in the draw-down of a loan, loan commitment fees are recognised on a straight-line basis over the commitment period. |
|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •   | Fee and commission expense relate mainly to transaction and service fees and are expensed as the services are received and are disclosed net of the related fee and commission income. |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv)   | Dividend income |
|--------|-----------------|-----------------|

|   | v) | Net trading income / (loss) |
|--------|----|-----------------------------|

|   | h) | Day one profit |
|--------|----|----------------|

|   | i) | Sale and repurchase agreements |
|--------|----|--------------------------------|

----

|   | j) | Investments |
|--------|----|-------------|

|   | ·   | If the investments would have met the definition of "held at amortised cost” and had not been required to be classified as held for trading at initial recognition, these may be reclassified if the Group has the intention and ability to hold the investments for the foreseeable future or until maturity. |
|--------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | If the investments would not have met the definition of held at amortised cost, and then it is reclassified out of the trading category only in ‘rare circumstances’. |
|--------|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i) | Held as FVIS |
|--------|----|--------------|

|   | ii) | Available for sale |
|--------|-----|--------------------|

----

|   | iii) | Held to maturity |
|--------|------|------------------|

|   | •   | Sales or reclassifications that are so close to maturity that the changes in market rate of commission would not have a significant effect on the fair value; |
|--------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •   | Sales or reclassifications after the Group has collected substantially all the assets’ original principal; and |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------|

|   | •   | Sales or reclassifications attributable to non recurring isolated events beyond the Group’s control that could not have been reasonably anticipated. |
|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv) | Other investments held at amortised cost |
|--------|-----|------------------------------------------|

|   | k) | Loans and advances |
|--------|----|--------------------|

|   | l) | Impairment of financial assets |
|--------|----|--------------------------------|

----

|   | (i) | Impairment of financial assets held at amortised cost |
|--------|-----|-------------------------------------------------------|

|   | (ii) | Impairment of available-for-sale financial assets |
|--------|------|---------------------------------------------------|

|   | m) | Other real estate |
|--------|----|-------------------|

----

|   | n) | Impairment of non–financial assets |
|--------|----|------------------------------------------|

|   | o) | Property and equipment |
|--------|----|------------------------|

| Buildings                                              | 33 years                                     |
|--------------------------------------------------------|----------------------------------------------|
| Leasehold improvements                                 | Over the shorter of lease period or 10 years |
| Furniture and fixtures, computer hardware and software |                                         |
| and motor vehicles                                     | 4 to 10 years                                |

|   | p) | Financial Liabilities |
|--------|----|-----------------------|

----

|   | q) | Financial guarantees |
|--------|----|----------------------|

|   | r) | Provisions |
|--------|----|------------|

|   | s) | Accounting for leases |
|--------|----|-----------------------|

|   | t) | Cash and cash equivalents |
|--------|----|---------------------------|

|   | u) | Derecognition of financial instruments |
|--------|----|----------------------------------------|

|   | -   | The contractual rights to receive cash flows from the asset have expired; or |
|--------|---------------|------------------------------------------------------------------------------|

|   | v) | Staff Share based plan transactions |
|--------|----|-------------------------------------|

|   | w) | End of service benefits |
|--------|----|-------------------------|

----

----

| 4   CASH AND BALANCES WITH SAMA |   |   |      |   |   |   |
|------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                           |   | 2013   |      |   | 2012   |   |
| Cash in hand                                   |   |   | 390,803   |   |   |   | 395,250 |   |
| Statutory deposit                              |   |   | 3,103,679 |   |   |   | 2,607,128 |   |
| Current accounts                               |   |   | 177,061   |   |   |   | 298,120 |   |
| Reverse repo with SAMA                         |   |   | 2,990,979 |   |   |   | 6,261,957 |   |
| Total                                          |   |   | 6,662,522 |   |   |   | 9,562,455 |   |

| 5 DUE FROM BANKS AND OTHER FINANCIAL INSTITUTIONS |   |           |    |   |          |   |    |   |        |   |   |   |   |   |      |   |
|--------------------------------------------------------|--------|----------------|---------|--------|---------------|--------|---------|--------|-------------|--------|--------|--------|--------|--------|-----------|--------|
|                                                   |   |           |    |   |          |   |    |   |        |   |   |   |   | 2013   |      |   | 2012 |   |
| Current accounts                                       |   |           |    |   |          |   |    |   |        |   |   |   |   |   | 804,827   |   |   |   | 840,717 |   |
| Money market placements                                |   |           |    |   |          |   |    |   |        |   |   |   |   |   | 946,540   |   |   |   | - |   |
| Total                                                  |   |           |    |   |          |   |    |   |        |   |   |   |   |   | 1,751,367 |   |   |   | 840,717 |   |
| 6   INVESTMENTS, NET                    |   |           |    |   |          |   |    |   |        |   |   |   |   |   |      |   |   |   |   |   |
| a) Investment securities are classified as follows:    |   |           |    |   |          |   |    |   |        |   |   |   |   |   |      |   |   |   |   |   |
|                                                   |   |  Domestic |    |   | International |   |    |   |  Total |   |
|                                                   |   | 2013           |    |   | 2012          |   |    | 2013   |        |   | 2012   |   |   |   | 2013      |   |   |   | 2012 |   |
| i) Available- for- sale, net                           |   |           |    |   |          |   |    |   |        |   |   |   |   |   |      |   |   |   |   |   |
| Fixed rate securities                                  |   |           | 51,850  |   |          |   | 70,430  |   |        |   | -      |   |   |   | -         |   |   |   | 51,850 |   |   |   | 70,430 |   |
| Floating rate securities                               |   |           | 168,000 |   |          |   | 30,000  |   |        |   | -      |   |   |   | 93,765    |   |   |   | 168,000 |   |   |   | 123,765 |   |
| Mutual funds                                           |   |           | 52,031  |   |          |   | 42,104  |   |        |   | -      |   |   |   | -         |   |   |   | 52,031 |   |   |   | 42,104 |   |
| Equities                                               |   |           | 259,714 |   |          |   | 4,188   |   |        |   | -      |   |   |   | -         |   |   |   | 259,714 |   |   |   | 4,188 |   |
| Total available-for-sale, net                          |   |           | 531,595 |   |          |   | 146,722 |   |        |   | -      |   |   |   | 93,765    |   |   |   | 531,595 |   |   |   | 240,487 |   |

|                                           |   | Domestic |       |   | International |          |      | Total  |   |
|------------------------------------------------|--------|----------|------------|--------|---------------|---------------|-----------|--------|--------|
|                                           |   | 2013     |       |   | 2012          |          |      | 2013   |   |   | 2012 |   |   | 2013 |   |   | 2012 |   |
| ii) Other investments held at amortised cost   |   |     |       |   |          |          |      |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate securities                          |   |     | 13,488,239 |   |          |          | 8,883,229 |   |   |   | 1,241,612 |   |   |   | 1,059,581 |   |   |   | 14,729,851 |   |   |   | 9,942,810 |   |
| Floating rate securities                       |   |     | 1,094,876  |   |          |          | 657,011   |   |   |   | 397,011 |   |   |   | 432,814 |   |   |   | 1,491,887 |   |   |   | 1,089,825 |   |
| Total other investments held at amortised cost |   |     | 14,583,115 |   |          |          | 9,540,240 |   |   |   | 1,638,623 |   |   |   | 1,492,395 |   |   |   | 16,221,738 |   |   |   | 11,032,635 |   |
|                                           |   |     |       |   |          |          |      |   |   |   |   |   |   |   |   |   |   |
|                                           |   |     | Domestic   |   |          | International |      |   | Total  |   |
| iii) Held to maturity                          |   |     | 2013       |   |          |          | 2012      |   |   |   | 2013 |   |   |   | 2012 |   |   |   | 2013 |   |   |   | 2012 |   |
| Fixed rate securities                          |   |     | 35,821     |   |          |          | 45,445    |   |   |   | - |   |   |   | - |   |   |   | 35,821 |   |   |   | 45,445 |   |
| Floating rate securities                       |   |     | -          |   |          |          | -         |   |   |   | 60,008 |   |   |   | 60,010 |   |   |   | 60,008 |   |   |   | 60,010 |   |
| Total held to maturity                         |   |     | 35,821     |   |          |          | 45,445    |   |   |   | 60,008 |   |   |   | 60,010 |   |   |   | 95,829 |   |   |   | 105,455 |   |
| Total investments, net                         |   |     | 15,150,531 |   |          |          | 9,732,407 |   |   |   | 1,698,631 |   |   |   | 1,646,170 |   |   |   | 16,849,162 |   |   |   | 11,378,577 |   |

----

| The following table shows carrying values and fair values of the reclassified investments: |   |           |    |   |       |   |    |           |   |   |       |   |
|--------------------------------------------------------------------------------------------|--------|----------------|---------|--------|------------|--------|---------|----------------|--------|--------|------------|--------|
|                                                                                       |   | 2013           |    |   | 2012       |   |
|                                                                                       |   | Carrying value |    |   | Fair value |   |    | Carrying value |   |   | Fair value |   |
| AFS securities reclassified to OI                                                          |   |           | 146,482 |   |       |   | 142,457 |           |   |   | 144,590    |   |   |   | 135,172 |   |

| c) The composition of investments is as follows: |   |   |      |   |     |   |       |   |   |   |       |   |   |     |      |   |   |   |
|--------------------------------------------------|--------|--------|-----------|--------|----------|--------|------------|--------|--------|--------|------------|--------|--------|----------|-----------|--------|--------|--------|
|                                             |   |   |      |   | 2013     |   |       |   |   |   |       |   |   | 2012     |      |   |   |   |
|                                             |   | Quoted |      |   | Unquoted |   |       | Total  |   |   | Quoted     |   |   | Unquoted |      |   | Total  |   |
| Fixed rate securities                            |   |   | 1,508,437 |   |     |   | 13,309,085 |   |   |   | 14,817,522 |   |   |     | 1,368,378 |   |   |   | 8,690,307 |   |   |   | 10,058,685 |   |
| Floating rate securities                         |   |   | 1,251,895 |   |     |   | 468,000    |   |   |   | 1,719,895  |   |   |     | 1,273,600 |   |   |   | - |   |   |   | 1,273,600 |   |
| Mutual funds                                     |   |   | 52,031    |   |     |   | -          |   |   |   | 52,031     |   |   |     | 42,104    |   |   |   | - |   |   |   | 42,104 |   |
| Equities                                         |   |   | 256,276   |   |     |   | 3,438      |   |   |   | 259,714    |   |   |     | -         |   |   |   | 4,188 |   |   |   | 4,188 |   |
| Total investments, net                           |   |   | 3,068,639 |   |     |   | 13,780,523 |   |   |   | 16,849,162 |   |   |     | 2,684,082 |   |   |   | 8,694,495 |   |   |   | 11,378,577 |   |

|                     |   |     |       |   | 2013       |   |   |       |   |   |    |   |   |     |       |   | 2012       |   |       |       |   |   |   |   |
|--------------------------|--------|----------|------------|--------|------------|--------|--------|------------|--------|--------|---------|--------|--------|----------|------------|--------|------------|--------|------------|------------|--------|--------|--------|--------|
|                     |   |     |       |   | Gross      |   |   | Gross      |   |   |    |   |   |     |       |   | Gross      |   |       | Gross      |   |   |   |   |
|                     |   | Carrying |       |   | unrealised |   |   | unrealised |   |   | Fair    |   |   | Carrying |       |   | unrealised |   |       | unrealised |   |   | Fair   |   |
|                     |   | value    |       |   | gains      |   |   | losses     |   |   | value   |   |   | value    |       |   | gains      |   |       | losses     |   |   | value  |   |
| i) Other investments     |   |     |       |   |       |   |   |       |   |   |    |   |   |     |       |   |       |   |       |       |   |   |   |   |
| held at amortised cost   |   |     |       |   |       |   |   |       |   |   |    |   |   |     |       |   |       |   |       |       |   |   |   |   |
| Fixed-rate securities    |   |     | 14,729,851 |   |       |   | 44,047 |       |   |   | (64,906 | )      |   |     | 14,708,992 |   |       |   | 9,942,810  |       |   |   | 76,266 |   |   |   | (20,793 | ) |   |   | 9,998,283 |   |
| Floating rate securities |   |     | 1,491,887  |   |       |   | 8,601  |       |   |   | (4,033  | )      |   |     | 1,496,455  |   |       |   | 1,089,825  |       |   |   | 11,340 |   |   |   | (9,440 | ) |   |   | 1,091,725 |   |
| Total                    |   |     | 16,221,738 |   |       |   | 52,648 |       |   |   | (68,939 | )      |   |     | 16,205,447 |   |       |   | 11,032,635 |       |   |   | 87,606 |   |   |   | (30,233 | ) |   |   | 11,090,008 |   |
|                     |   |     |       |   |       |   |   |       |   |   |    |   |   |     |       |   |       |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |     |       |   |       |   | 2013   |       |   |   |    |   |   |     |       |   |       |   |       |       |   |   | 2012   |   |   |   |   |   |   |   |   |   |
|                     |   |     |       |   |       | Gross  |   |       | Gross  |   |    |   |   |     |       |   |       |   |       | Gross      |   |   | Gross  |   |   |   |   |   |
|                     |   | Carrying |       |   | unrealised |   |   | unrealised |   |   | Fair    |   |   | Carrying |       |   | unrealised |   |       | unrealised |   |   | Fair   |   |
|                     |   | value    |       |   | gains      |   |   | losses     |   |   | value   |   |   | value    |       |   | gains      |   |       | losses     |   |   | value  |   |
| ii) Held to maturity     |   |     |       |   |       |   |   |       |   |   |    |   |   |     |       |   |       |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed-rate securities    |   |     | 35,821     |   |       |   | 2,753  |       |   |   | -       |   |   |     | 38,574     |   |       |   | 45,445     |       |   |   | 4,471  |   |   |   | - |   |   |   | 49,916 |   |
| Floating rate securities |   |     | 60,008     |   |       |   | -      |       |   |   | (2,724  | )      |   |     | 57,284     |   |       |   | 60,010     |       |   |   | -      |   |   |   | (5,972 | ) |   |   | 54,038 |   |
| Total                    |   |     | 95,829     |   |       |   | 2,753  |       |   |   | (2,724  | )      |   |     | 95,858     |   |       |   | 105,455    |       |   |   | 4,471  |   |   |   | (5,972 | ) |   |   | 103,954 |   |

----

| e) The analysis of investments by counter party is as follows: |   |   |       |   |   |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                           |   | 2013   |       |   | 2012   |   |
| Government and quasi-government                                |   |   | 13,748,486 |   |   |   | 9,320,666 |   |
| Corporates                                                     |   |   | 1,334,965  |   |   |   | 902,517 |   |
| Banks and other financial institutions                         |   |   | 1,710,242  |   |   |   | 1,109,102 |   |
| Others                                                         |   |   | 55,469     |   |   |   | 46,292 |   |
| Total investments, net                                         |   |   | 16,849,162 |   |   |   | 11,378,577 |   |

|                   |   | 2013   |       |   | 2012   |   |
|------------------------|--------|--------|------------|--------|--------|--------|
| Saudi Sovereign bonds  |   |   | 11,849,560 |   |   |   | 8,240,306 |   |
| Investments grade      |   |   | 4,376,903  |   |   |   | 2,874,979 |   |
| Unrated                |   |   | 622,699    |   |   |   | 263,292 |   |
| Total investments, net |   |   | 16,849,162 |   |   |   | 11,378,577 |   |

| 7   | LOANS AND ADVANCES, NET |
|---------------|-------------------------|

|                                       |   |      |      |   | Credit |   |    | Consumer |     |   | Commercial |       |   |   |       |
|--------------------------------------------|--------|-----------|-----------|--------|--------|--------|---------|----------|----------|--------|------------|------------|--------|--------|------------|
| 2013                                       |   | Overdraft |      |   | Cards  |   |    | loans    |     |   | loans      |       |   | Total  |       |
| Performing loans and advances-gross        |   |      | 2,189,802 |   |   |   | 249,392 |     |     |   | 8,066,492  |       |   |   | 43,600,583 |   |   |   | 54,106,269 |   |
| Non performing loans and advances, net     |   |      | 336,080   |   |   |   | 4,879   |     |     |   | 46,836     |       |   |   | 350,824    |   |   |   | 738,619 |   |
| Total loans and advances                   |   |      | 2,525,882 |   |   |   | 254,271 |     |     |   | 8,113,328  |       |   |   | 43,951,407 |   |   |   | 54,844,888 |   |
| Allowances for impairment of credit losses |   |      | (521,815  | )      |   |   | (11,326 | )        |     |   | (62,822    | )          |   |   | (596,600   | ) |   |   | (1,192,563 | ) |
| Total loans and advances, net              |   |      | 2,004,067 |   |   |   | 242,945 |     |     |   | 8,050,506  |       |   |   | 43,354,807 |   |   |   | 53,652,325 |   |
|                                       |   |      |      |   |   |   |    |     |     |   |       |       |   |   |       |   |   |
|                                       |   |      |      |   |   | Credit |    |     | Consumer |   |       | Commercial |   |   |       |   |   |
| 2012                                       |   | Overdraft |      |   | Cards  |   |    | Loans    |     |   | loans      |       |   | Total  |       |
| Performing loans and advances-gross        |   |      | 2,574,597 |   |   |   | 235,638 |     |     |   | 5,176,167  |       |   |   | 37,671,231 |   |   |   | 45,657,633 |   |
| Non performing loans and advances, net     |   |      | 333,184   |   |   |   | 9,034   |     |     |   | 37,646     |       |   |   | 342,251    |   |   |   | 722,115 |   |
| Total loans and advances                   |   |      | 2,907,781 |   |   |   | 244,672 |     |     |   | 5,213,813  |       |   |   | 38,013,482 |   |   |   | 46,379,748 |   |
| Allowances for impairment of credit losses |   |      | (642,383  | )      |   |   | (11,326 | )        |     |   | (56,942    | )          |   |   | (392,898   | ) |   |   | (1,103,549 | ) |
| Total loans and advances, net              |   |      | 2,265,398 |   |   |   | 233,346 |     |     |   | 5,156,871  |       |   |   | 37,620,584 |   |   |   | 45,276,199 |   |

----

| b) Movements in allowances for impairment of credit losses |   |      |     |   |   |   |    |     |     |   |       |       |   |   |    |
|------------------------------------------------------------|--------|-----------|----------|--------|--------|--------|---------|----------|----------|--------|------------|------------|--------|--------|---------|
|                                                       |   |      |     |   | Credit |   |    | Consumer |     |   | Commercial |       |   |   |    |
| 2013                                                       |   | Overdraft |     |   | Cards  |   |    | Loans    |     |   | loans      |       |   | Total  |    |
| Balance at beginning of the year                           |   |      | 642,383  |   |   |   | 11,326  |     |     |   | 56,942     |       |   |   | 392,898 |   |   |   | 1,103,549 |   |
| Provided during the year                                   |   |      | 81,738   |   |   |   | 16,774  |     |     |   | 66,620     |       |   |   | 238,933 |   |   |   | 404,065 |   |
| Bad debts written off                                      |   |      | (91,890  | )      |   |   | (6,501  | )        |     |   | (31,092    | )          |   |   | -       |   |   |   | (129,483 | ) |
| Recoveries of amounts previously provided                  |   |      | (110,416 | )      |   |   | (10,273 | )        |     |   | (29,648    | )          |   |   | (35,231 | ) |   |   | (185,568 | ) |
| Balance at the end of the year                             |   |      | 521,815  |   |   |   | 11,326  |     |     |   | 62,822     |       |   |   | 596,600 |   |   |   | 1,192,563 |   |
|                                                       |   |      |     |   |   |   |    |     |     |   |       |       |   |   |    |   |   |
|                                                       |   |      |     |   |   | Credit |    |     | Consumer |   |       | Commercial |   |   |    |   |   |
|                                                       |   | Overdraft |     |   | Cards  |   |    | Loans    |     |   | loans      |       |   | Total  |    |
| 2012                                                       |   |      |     |   |   |   |    |     |     |   |       |       |   |   |    |   |   |   |   |   |
| Balance at beginning of the year                           |   |      | 608,540  |   |   |   | 11,326  |     |     |   | 38,722     |       |   |   | 411,060 |   |   |   | 1,069,648 |   |
| Provided during the year                                   |   |      | 184,410  |   |   |   | 21,125  |     |     |   | 74,256     |       |   |   | 54,595  |   |   |   | 334,386 |   |
| Bad debts written off                                      |   |      | (67,366  | )      |   |   | (13,170 | )        |     |   | (25,467    | )          |   |   | -       |   |   |   | (106,003 | ) |
| Recoveries of amounts previously provided                  |   |      | (83,201  | )      |   |   | (7,955  | )        |     |   | (30,569    | )          |   |   | (72,757 | ) |   |   | (194,482 | ) |
| Balance at the end of the year                             |   |      | 642,383  |   |   |   | 11,326  |     |     |   | 56,942     |       |   |   | 392,898 |   |   |   | 1,103,549 |   |
| c) Credit quality of loans and advances                    |   |      |     |   |   |   |    |     |     |   |       |       |   |   |    |   |   |   |   |   |
| i) Loans and advances neither past due nor impaired        |   |      |     |   |   |   |    |     |     |   |       |       |   |   |    |   |   |   |   |   |

|         |   |      |      |   | Credit |   |    | Consumer |     |   | Commercial |       |   |   |       |
|--------------|--------|-----------|-----------|--------|--------|--------|---------|----------|----------|--------|------------|------------|--------|--------|------------|
| 2013         |   | Overdraft |      |   | Cards  |   |    | Loans    |     |   | loans      |       |   | Total  |       |
| Strong       |   |      | 742,008   |   |   |   | 225,809 |     |     |   | 7,991,544  |       |   |   | 23,579,152 |   |   |   | 32,538,513 |   |
| Satisfactory |   |      | 1,348,061 |   |   |   | 14,773  |     |     |   | 15,084     |       |   |   | 19,383,338 |   |   |   | 20,761,256 |   |
| Watch        |   |      | 70,224    |   |   |   | 1,654   |     |     |   | 12,608     |       |   |   | 380,845    |   |   |   | 465,331 |   |
| Total        |   |      | 2,160,293 |   |   |   | 242,236 |     |     |   | 8,019,236  |       |   |   | 43,343,335 |   |   |   | 53,765,100 |   |
|         |   |      |      |   |   | Credit |    |     | Consumer |   |       | Commercial |   |   |       |   |   |
| 2012         |   | Overdraft |      |   | Cards  |   |    | Loans    |     |   | loans      |       |   | Total  |       |
| Strong       |   |      | 1,135,773 |   |   |   | 211,087 |     |     |   | 5,103,446  |       |   |   | 20,090,390 |   |   |   | 26,540,696 |   |
| Satisfactory |   |      | 1,355,124 |   |   |   | 16,310  |     |     |   | 9,873      |       |   |   | 17,201,793 |   |   |   | 18,583,100 |   |
| Watch        |   |      | 37,533    |   |   |   | 1,812   |     |     |   | 16,930     |       |   |   | 320,152    |   |   |   | 376,427 |   |
| Total        |   |      | 2,528,430 |   |   |   | 229,209 |     |     |   | 5,130,249  |       |   |   | 37,612,335 |   |   |   | 45,500,223 |   |

----

| ii) Ageing of past due but not impaired loans and advances |   |      |   |   |   |   |   |     |     |   |       |       |   |   |    |
|------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|----------|----------|--------|------------|------------|--------|--------|---------|
|                                                       |   |      |   |   | Credit |   |   | Consumer |     |   | Commercial |       |   |   |    |
| 2013                                                       |   | Overdraft |   |   | Cards  |   |   | Loans    |     |   | loans      |       |   | Total  |    |
| From 1 day to 30 days                                      |   |      | 21,523 |   |   |   | 4,831  |     |     |   | 33,315     |       |   |   | 111,839 |   |   |   | 171,508 |   |
| From 31 days to 90 days                                    |   |      | 3,456  |   |   |   | 2,325  |     |     |   | 13,941     |       |   |   | 117,378 |   |   |   | 137,100 |   |
| From 91 days to 180 days                                   |   |      | 4,530  |   |   |   | -      |     |     |   | -          |       |   |   | -       |   |   |   | 4,530 |   |
| More than 180 days                                         |   |      | -      |   |   |   | -      |     |     |   | -          |       |   |   | 28,031  |   |   |   | 28,031 |   |
| Total                                                      |   |      | 29,509 |   |   |   | 7,156  |     |     |   | 47,256     |       |   |   | 257,248 |   |   |   | 341,169 |   |
|                                                       |   |      |   |   |   | Credit |   |     | Consumer |   |       | Commercial |   |   |    |   |   |
| 2012                                                       |   | Overdraft |   |   | Cards  |   |   | Loans    |     |   | loans      |       |   | Total  |    |
| From 1 day to 30 days                                      |   |      | 29,184 |   |   |   | 3,543  |     |     |   | 20,277     |       |   |   | 9,999   |   |   |   | 63,003 |   |
| From 31 days to 90 days                                    |   |      | 10,756 |   |   |   | 2,886  |     |     |   | 25,641     |       |   |   | 48,897  |   |   |   | 88,180 |   |
| From 91 days to 180 days                                   |   |      | 6,227  |   |   |   | -      |     |     |   | -          |       |   |   | -       |   |   |   | 6,227 |   |
| Total                                                      |   |      | 46,167 |   |   |   | 6,429  |     |     |   | 45,918     |       |   |   | 58,896  |   |   |   | 157,410 |   |

| 2013                                        |   | Performing |       |   | Nonperforming |   |    | Allowancesforimpairment |   |   | Loans andadvances, net |   |
|---------------------------------------------|--------|------------|------------|--------|---------------|--------|---------|-------------------------|--------|--------|------------------------|--------|
| Government and quasi-government             |   |       | 1,535,354  |   |          |   | -       |                    |   |   | -                      |   |   |   | 1,535,354 |   |
| Banks and other financial institutions      |   |       | 2,723,433  |   |          |   | -       |                    |   |   | -                      |   |   |   | 2,723,433 |   |
| Agriculture and fishing                     |   |       | 914,817    |   |          |   | -       |                    |   |   | -                      |   |   |   | 914,817 |   |
| Manufacturing                               |   |       | 9,445,016  |   |          |   | 99,701  |                    |   |   | (99,701                | )      |   |   | 9,445,016 |   |
| Mining and quarrying                        |   |       | 290,965    |   |          |   | -       |                    |   |   | -                      |   |   |   | 290,965 |   |
| Electricity, water, gas and health services |   |       | 1,872,189  |   |          |   | 8,300   |                    |   |   | (8,300                 | )      |   |   | 1,872,189 |   |
| Building and construction                   |   |       | 6,076,752  |   |          |   | 231,321 |                    |   |   | (231,321               | )      |   |   | 6,076,752 |   |
| Commerce                                    |   |       | 14,943,638 |   |          |   | 275,291 |                    |   |   | (275,291               | )      |   |   | 14,943,638 |   |
| Transportation and communication            |   |       | 768,524    |   |          |   | 7,800   |                    |   |   | (7,800                 | )      |   |   | 768,524 |   |
| Services                                    |   |       | 4,166,079  |   |          |   | 2,495   |                    |   |   | (2,495                 | )      |   |   | 4,166,079 |   |
| Consumer loans and credit cards             |   |       | 8,315,884  |   |          |   | 51,715  |                    |   |   | (51,715                | )      |   |   | 8,315,884 |   |
| Others                                      |   |       | 3,053,618  |   |          |   | 61,996  |                    |   |   | (52,983                | )      |   |   | 3,062,631 |   |
|                                        |   |       | 54,106,269 |   |          |   | 738,619 |                    |   |   | (729,606               | )      |   |   | 54,115,282 |   |
| Portfolio impairment allowance              |   |       | -          |   |          |   | -       |                    |   |   | (462,957               | )      |   |   | (462,957 | ) |
| Total                                       |   |       | 54,106,269 |   |          |   | 738,619 |                    |   |   | (1,192,563             | )      |   |   | 53,652,325 |   |

----

| 2012                                        |   | Performing |       |   | Nonperforming |   |    | Allowancesfor impairment |   |   | Loans andadvances, net |   |
|---------------------------------------------|--------|------------|------------|--------|---------------|--------|---------|--------------------------|--------|--------|------------------------|--------|
| Government and quasi-government             |   |       | 1,368,093  |   |          |   | -       |                     |   |   | -                      |   |   |   | 1,368,093 |   |
| Banks and other financial institutions      |   |       | 1,227,766  |   |          |   | -       |                     |   |   | -                      |   |   |   | 1,227,766 |   |
| Agriculture and fishing                     |   |       | 474,081    |   |          |   | 21,488  |                     |   |   | (21,488                | )      |   |   | 474,081 |   |
| Manufacturing                               |   |       | 8,583,687  |   |          |   | 72,228  |                     |   |   | (72,228                | )      |   |   | 8,583,687 |   |
| Mining and quarrying                        |   |       | 284,984    |   |          |   | -       |                     |   |   | -                      |   |   |   | 284,984 |   |
| Electricity, water, gas and health services |   |       | 1,958,132  |   |          |   | 8,300   |                     |   |   | (8,300                 | )      |   |   | 1,958,132 |   |
| Building and construction                   |   |       | 5,795,073  |   |          |   | 129,487 |                     |   |   | (129,487               | )      |   |   | 5,795,073 |   |
| Commerce                                    |   |       | 13,372,435 |   |          |   | 369,069 |                     |   |   | (369,069               | )      |   |   | 13,372,435 |   |
| Transportation and communication            |   |       | 735,580    |   |          |   | -       |                     |   |   | -                      |   |   |   | 735,580 |   |
| Services                                    |   |       | 3,239,010  |   |          |   | 7,787   |                     |   |   | (7,787                 | )      |   |   | 3,239,010 |   |
| Consumer loans and credit cards             |   |       | 5,411,805  |   |          |   | 46,680  |                     |   |   | (54,280                | )      |   |   | 5,404,205 |   |
| Others                                      |   |       | 3,206,987  |   |          |   | 67,076  |                     |   |   | (64,910                | )      |   |   | 3,209,153 |   |
|                                        |   |       | 45,657,633 |   |          |   | 722,115 |                     |   |   | (727,549               | )      |   |   | 45,652,199 |   |
| Portfolio impairment allowance              |   |       | -          |   |          |   | -       |                     |   |   | (376,000               | )      |   |   | (376,000 | ) |
| Total                                       |   |       | 45,657,633 |   |          |   | 722,115 |                     |   |   | (1,103,549             | )      |   |   | 45,276,199 |   |

| 8   INVESTMENT IN AN ASSOCIATE |   |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                          |   | 2013   |   |   | 2012   |   |
| Balance at beginning of the year              |   |   | 18,050 |   |   |   | 17,750 |   |
| Share in (loss) / earning                     |   |   | (817   | )      |   |   | 300 |   |
| Balance at end of the year                    |   |   | 17,233 |   |   |   | 18,050 |   |

----

| 9 | PROPERTY AND EQUIPMENT, NET Property and equipment details are as follows: |
|---|----------------------------------------------------------------------------|

|                                         |   |            |    |   |         |   |    | Computer   |   |   |      |   |   |     |    |   | Capital Work |   |   |   |   |
|----------------------------------------------|--------|-----------------|---------|--------|--------------|--------|---------|------------|--------|--------|-----------|--------|--------|----------|---------|--------|--------------|--------|--------|--------|--------|
|                                         |   | Land and        |    |   | Leasehold    |   |    | hardware / |   |   | Furniture |   |   | Motor    |    |   | In Progress  |   |   |   |   |
|                                         |   | Buildings  |    |   | Improvements |   |    | software   |   |   | /Fixtures |   |   | Vehicles |    |   | (CWIP)       |   |   | Total  |   |
| Cost:                                        |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |
| Balance at beginning of the year             |   |            | 187,577 |   |         |   | 275,819 |       |   |   | 693,481   |   |   |     | 181,650 |   |         |   | 4,597  |   |   |   | 124,198 |   |   |   | 1,467,322 |   |
| Additions during the year                    |   |            | -       |   |         |   | -       |       |   |   | -         |   |   |     | -       |   |         |   | 842    |   |   |   | 111,305 |   |   |   | 112,147 |   |
| Disposal during the year                     |   |            |    |   |         |   |    |       |   |   | (4,964    | )      |   |     |    |   |         |   | (285   | )      |   |   | - |   |   |   | (5,249 | ) |
| Transfers from CWIP during the year          |   |            | -       |   |         |   | 11,081  |       |   |   | 88,117    |   |   |     | 6,663   |   |         |   | -      |   |   |   | (105,861 | ) |   |   | - |   |
| Balance at end of the year                   |   |            | 187,577 |   |         |   | 286,900 |       |   |   | 776,634   |   |   |     | 188,313 |   |         |   | 5,154  |   |   |   | 129,642 |   |   |   | 1,574,220 |   |
| Accumulated depreciation/ amortisation:      |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at beginning of the year             |   |            | 41,894  |   |         |   | 233,308 |       |   |   | 545,110   |   |   |     | 154,421 |   |         |   | 3,822  |   |   |   | - |   |   |   | 978,555 |   |
| Charge for the year                          |   |            | 5,266   |   |         |   | 15,276  |       |   |   | 64,902    |   |   |     | 10,284  |   |         |   | 384    |   |   |   |   |   |   |   | 96,112 |   |
| Disposal during the year                     |   |            | -       |   |         |   | -       |       |   |   | (4,964    | )      |   |     | -       |   |         |   | (285   | )      |   |   | - |   |   |   | (5,249 | ) |
| Balance at end of the year                   |   |            | 47,160  |   |         |   | 248,584 |       |   |   | 605,048   |   |   |     | 164,705 |   |         |   | 3,921  |   |   |   | - |   |   |   | 1,069,418 |   |
| Net book value:                              |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| As at 31 December 2013                       |   |            | 140,417 |   |         |   | 38,316  |       |   |   | 171,586   |   |   |     | 23,608  |   |         |   | 1,233  |   |   |   | 129,642 |   |   |   | 504,802 |   |
| As at 31 December 2012                       |   |            | 145,683 |   |         |   | 42,511  |       |   |   | 148,371   |   |   |     | 27,229  |   |         |   | 775    |   |   |   | 124,198 |   |   |   | 488,767 |   |
| 10   OTHER ASSETS             |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Accrued special commission receivable:       |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 2013 |   |   |   | 2012 |   |
|                                         |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   |   |   |   |   |   |
| Banks and other financial institutions       |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 10,109 |   |   |   | 43 |   |
| Investments                                  |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 44,797 |   |   |   | 37,601 |   |
| Loans and advances                           |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 200,567 |   |   |   | 191,035 |   |
| Others                                       |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 65,211 |   |   |   | 68,401 |   |
| Total accrued special commission receivable  |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 320,684 |   |   |   | 297,080 |   |
| Accounts receivable                          |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 419,834 |   |   |   | 386,232 |   |
| Positive fair value of derivatives (note 11) |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 286,343 |   |   |   | 253,524 |   |
| Others                                       |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 3,989 |   |   |   | 3,912 |   |
| Total                                        |   |            |    |   |         |   |    |       |   |   |      |   |   |     |    |   |         |   |   |   |   |   | 1,030,850 |   |   |   | 940,748 |   |

----

|                        |   | 2013   |   |   | 2012   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|
|                        |   |   |   |   |   |   | 1-3 years |   |   |   |   |   |   |   | 1-3 years |   |
| Cash inflows (assets)       |   |   | -      |   |   |   | - |   |   |   | 3,630 |   |   |   | - |   |
| Cash outflows (liabilities) |   |   | -      |   |   |   | - |   |   |   | (10,068 | ) |   |   | - |   |
| Net cash outflows           |   |   | -      |   |   |   | - |   |   |   | (6,438 | ) |   |   | - |   |

----

|                       |   |       |    |   |       |   |    |     |   |     | Notional amounts by maturity |   |   |                               |       |
|----------------------------|--------|------------|---------|--------|------------|--------|---------|----------|--------|----------|------------------------------|--------|--------|------------------------------------|------------|
|                       |   |       |    |   |       |   |    | Notional |   |     | Within                       |   |   |                               |       |   |   |   |   |   |   |   |   |   |
| Derivative financial       |   | Positive   |    |   | Negative   |   |    | amount   |   |     | three                        |   |   |                               | 3-12       |   |   |   | 1-5 |   |   | Over 5 |   |   | Monthly |   |
| instruments 2013           |   | fair value |    |   | fair value |   |    | total    |   |     | months                       |   |   | Months                             |       |   | Years |   |   | Years |   |   | Average |   |
| Held for trading:          |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |
| Commission rate swaps      |   |       | 139,669 |   |       |   | 70,968  |     |   |     | 23,343,399                   |   |   |                               | 937,977    |   |   |   | 2,726,619 |   |   |   | 18,170,022 |   |   |   | 1,508,781 |   |   |   | 22,301,487 |   |
| Foreign exchange and       |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| commodity forward          |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| contracts                  |   |       | 81,976  |   |       |   | 34,313  |     |   |     | 15,641,511                   |   |   |                               | 9,439,627  |   |   |   | 6,201,884 |   |   |   | - |   |   |   | - |   |   |   | 18,441,155 |   |
| Currency and commodity     |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| options                    |   |       | 64,653  |   |       |   | 64,653  |     |   |     | 27,548,514                   |   |   |                               | 5,997,229  |   |   |   | 12,970,597 |   |   |   | 8,580,688 |   |   |   | - |   |   |   | 29,771,908 |   |
| Forward rate agreements    |   |       | 44      |   |       |   | -       |     |   |     | 200,000                      |   |   |                               | -          |   |   |   | 200,000 |   |   |   | - |   |   |   | - |   |   |   | 200,000 |   |
| Commission rate options    |   |       | 1       |   |       |   | 1       |     |   |     | 1,219,279                    |   |   |                               | 219,279    |   |   |   | - |   |   |   | 1,000,000 |   |   |   | - |   |   |   | 1,219,279 |   |
| Held as fair value hedges: |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission rate swaps      |   |       | -       |   |       |   | 5,958   |     |   |     | 375,630                      |   |   |                               | 1,000      |   |   |   | 163,772 |   |   |   | 173,353 |   |   |   | 37,505 |   |   |   | 464,754 |   |
| Held as cash flow hedges:  |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission rate swaps      |   |       | -       |   |       |   | -       |     |   |     | -                            |   |   |                               | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 347,123 |   |
| Total                      |   |       | 286,343 |   |       |   | 175,893 |     |   |     | 68,328,333                   |   |   |                               | 16,595,112 |   |   |   | 22,262,872 |   |   |   | 27,924,063 |   |   |   | 1,546,286 |   |   |   |   |   |
|                       |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |       |    |   |       |   |    |     |   |     |                         |   |   |  Notional amounts by maturity |       |   |   |   |   |
|                       |   |       |    |   |       |   |    |     |   | Notional |                         |   | Within |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial       |   | Positive   |    |   | Negative   |   |    | amount   |   |     | three                        |   |   |                               | 3-12       |   |   |   | 1-5 |   |   | Over 5 |   |   | Monthly |   |
| instruments 2012           |   | fair value |    |   | fair value |   |    | total    |   |     | months                       |   |   | Months                             |       |   | Years |   |   | Years |   |   | Average |   |
| Held for trading:          |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission rate swaps      |   |       | 132,136 |   |       |   | 105,144 |     |   |     | 18,682,591                   |   |   |                               | 1,042,188  |   |   |   | 3,098,570 |   |   |   | 12,970,323 |   |   |   | 1,571,510 |   |   |   | 17,397,804 |   |
| Foreign exchange and       |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| commodity forward          |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| contracts                  |   |       | 99,614  |   |       |   | 97,450  |     |   |     | 21,742,440                   |   |   |                               | 13,481,898 |   |   |   | 8,260,542 |   |   |   | - |   |   |   | - |   |   |   | 28,034,814 |   |
| Currency and commodity     |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| options                    |   |       | 21,722  |   |       |   | 21,501  |     |   |     | 21,556,764                   |   |   |                               | 5,326,374  |   |   |   | 13,110,207 |   |   |   | 3,120,183 |   |   |   | - |   |   |   | 29,399,035 |   |
| Forward rate agreements    |   |       | 19      |   |       |   | -       |     |   |     | 200,000                      |   |   |                               | -          |   |   |   | - |   |   |   | 200,000 |   |   |   | - |   |   |   | 475,000 |   |
| Commission rate options    |   |       | 33      |   |       |   | 33      |     |   |     | 1,219,279                    |   |   |                               | -          |   |   |   | - |   |   |   | 1,219,279 |   |   |   | - |   |   |   | 969,279 |   |
| Held as fair value hedges: |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission rate swaps      |   |       | -       |   |       |   | 22,717  |     |   |     | 651,835                      |   |   |                               | 2,118      |   |   |   | 17,867 |   |   |   | 594,344 |   |   |   | 37,506 |   |   |   | 812,666 |   |
| Held as cash flow hedges:  |   |       |    |   |       |   |    |     |   |     |                         |   |   |                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission rate swaps      |   |       | -       |   |       |   | 6,355   |     |   |     | 350,000                      |   |   |                               | -          |   |   |   | 350,000 |   |   |   | - |   |   |   | - |   |   |   | 350,000 |   |
| Total                      |   |       | 253,524 |   |       |   | 253,200 |     |   |     | 64,402,909                   |   |   |                               | 19,852,578 |   |   |   | 24,837,186 |   |   |   | 18,104,129 |   |   |   | 1,609,016 |   |   |   |   |   |

----

|                              |   |   |    |   | Hedge     |   |    |   |       |   |       |   |   |       |   |
|-----------------------------------|--------|--------|---------|--------|-----------|--------|---------|--------|------------|--------|------------|--------|--------|------------|--------|
|                              |   | Fair   |    |   | inception |   |    |   | Hedging    |   | Positive   |   |   | Negative   |   |
| Description of hedged items       |   | value  |    |   | value     |   | Risk    |   | Instrument |   | fair value |   |   | fair value |   |
| 2013                              |   |   |    |   |      |   |    |   |       |   |       |   |   |       |   |
|                              |   |   |    |   |      |   |    |   | Commission |   |       |   |   |       |   |
| Fixed commission rate investments |   |   | 370,464 |   |      |   | 348,797 |   | Fair Value |   | rate swaps |   |   | -          |   |   |   | 5,680 |   |
|                              |   |   |    |   |      |   |    |   |       |   | Commission |   |   |       |   |   |   |   |   |
| Loans and advances                |   |   | 27,998  |   |      |   | 27,333  |   | Fair Value |   | rate swaps |   |   | -          |   |   |   | 278 |   |
|                              |   |   |    |   |      |   |    |   |       |   |       |   |   |       |   |   |   |   |
|                              |   |   |    |   |      | Hedge  |    |   |       |   |       |   |   |       |   |   |   |   |
|                              |   | Fair   |    |   | inception |   |    |   | Hedging    |   | Positive   |   |   | Negative   |   |
| Description of hedged items       |   | value  |    |   | value     |   | Risk    |   | Instrument |   | fair value |   |   | fair value |   |
| 2012                              |   |   |    |   |      |   |    |   |       |   |       |   |   |       |   |   |   |   |   |
|                              |   |   |    |   |      |   |    |   |       |   | Commission |   |   |       |   |   |   |   |   |
| Fixed commission rate investments |   |   | 379,242 |   |      |   | 348,806 |   | Fair Value |   | rate swaps |   |   | -          |   |   |   | 16,583 |   |
|                              |   |   |    |   |      |   |    |   |       |   | Commission |   |   |       |   |   |   |   |   |
| Subordinated debt                 |   |   | 355,349 |   |      |   | 350,000 |   | Cash Flow  |   | rate swaps |   |   | -          |   |   |   | 6,355 |   |
|                              |   |   |    |   |      |   |    |   |       |   | Commission |   |   |       |   |   |   |   |   |
| Loans and advances                |   |   | 319,638 |   |      |   | 294,207 |   | Fair Value |   | rate swaps |   |   | -          |   |   |   | 6,134 |   |

| 12   DUE TO BANKS AND OTHER FINANCIAL INSTITUTIONS |   |   |       |   |   |   |
|-------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                              |   | 2013   |       |   | 2012   |   |
| Current accounts                                                  |   |   | 1,302,974  |   |   |   | 591,858 |   |
| Money market deposits                                             |   |   | 1,191,304  |   |   |   | 883,065 |   |
| Total                                                             |   |   | 2,494,278  |   |   |   | 1,474,923 |   |
|                                                              |   |   |       |   |   |   |   |   |
| 13   CUSTOMERS’ DEPOSITS                     |   |   | 2013       |   |   |   | 2012 |   |
| Time                                                              |   |   | 35,575,566 |   |   |   | 30,129,109 |   |
| Demand                                                            |   |   | 24,951,832 |   |   |   | 22,698,615 |   |
| Saving                                                            |   |   | 434,877    |   |   |   | 411,420 |   |
| Others                                                            |   |   | 913,174    |   |   |   | 674,528 |   |
| Total                                                             |   |   | 61,875,449 |   |   |   | 53,913,672 |   |
|                                                              |   |   |       |   |   |   |   |   |
|                                                              |   |   | 2013       |   |   |   | 2012 |   |
| Time deposits include:                                            |   |   |       |   |   |   |   |   |
| i)  Deposits under repurchase agreements with customers |   |   | 3,367,370  |   |   |   | 3,690,000 |   |
| ii)  Islamic deposits                                   |   |   | 16,914,356 |   |   |   | 12,516,277 |   |

----

|   |   | 2013   |      |   | 2012   |   |
|--------|--------|--------|-----------|--------|--------|--------|
| Time   |   |   | 4,952,255 |   |   |   | 6,012,648 |   |
| Demand |   |   | 2,761,124 |   |   |   | 2,661,663 |   |
| Saving |   |   | 27,765    |   |   |   | 22,732 |   |
| Others |   |   | 123,349   |   |   |   | 97,702 |   |
| Total  |   |   | 7,864,493 |   |   |   | 8,794,745 |   |

| 14   | SUBORDINATED DEBT |
|----------------|-------------------|

| 15   OTHER LIABILITIES        |   |   |      |   |   |   |
|----------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Accrued special commission payable:          |   | 2013   |      |   | 2012   |   |
| Banks and other financial institutions       |   |   | 195       |   |   |   | 126 |   |
| Customer deposits                            |   |   | 143,977   |   |   |   | 115,596 |   |
| Subordinated debt                            |   |   | 6,603     |   |   |   | 3,149 |   |
| Others                                       |   |   | 76,534    |   |   |   | 83,075 |   |
| Total accrued special commission payable     |   |   | 227,309   |   |   |   | 201,946 |   |
| Accrued expenses and accounts payable        |   |   | 1,322,238 |   |   |   | 1,056,914 |   |
| Negative fair value of derivatives (note 11) |   |   | 175,893   |   |   |   | 253,200 |   |
| Others                                       |   |   | 346,666   |   |   |   | 398,879 |   |
| Total                                        |   |   | 2,072,106 |   |   |   | 1,910,939 |   |

----

| 16 | SHARE CAPITAL |
|----|---------------|

| The ownership of the Bank’s share capital is as follows: |   |       |   |   |   |   |      |   |   |
|----------------------------------------------------------------|--------|------------|--------|--------|--------|--------|-----------|--------|--------|
|                                                           |   | Percentage |   |   | 2013   |   |      | 2012   |   |
| Saudi shareholders                                             |   |       | 60     | %      |   |   | 2,381,400 |   |   |   | 2,381,400 |   |
| ABN AMRO Bank N.V.  (The Netherlands)                |   |       | 40     | %      |   |   | 1,587,600 |   |   |   | 1,587,600 |   |
| Total                                                          |   |       | 100    | %      |   |   | 3,969,000 |   |   |   | 3,969,000 |   |

| 17 | STATUTORY RESERVE |
|----|-------------------|

| 18 | OTHER RESERVES |
|----|----------------|

|                                                                            |   | Available for |   |   |      |   |    |   |   |
|---------------------------------------------------------------------------------|--------|---------------|--------|--------|-----------|--------|---------|--------|--------|
|                                                                            |   | sale          |   |   | Cash flow |   |    |   |   |
|                                                                            |   | investments   |   |   | hedges    |   |    | Total  |   |
| 2013                                                                            |   |          |   |   |      |   |    |   |   |
| Balance at beginning of the year                                                |   |          | 565    |   |      |   | (6,355  | )      |   |   | (5,790 | ) |
| Net change in fair value                                                        |   |          | 19,329 |   |      |   | -       |   |   |   | 19,329 |   |
| Transfer to consolidated statement of income                                    |   |          | 1,796  |   |      |   | 6,355   |   |   |   | 8,151 |   |
| Balance at end of the year                                                      |   |          | 21,690 |   |      |   | -       |   |   |   | 21,690 |   |
|                                                                            |   |          |   |   |      |   |    |   |   |   |   |
|                                                                            |   | Available for |   |   |      |   |    |   |   |   |   |
|                                                                            |   | sale          |   |   | Cash flow |   |    |   |   |   |
| 2012                                                                            |   | investments   |   |   | hedges    |   |    | Total  |   |
| Balance at beginning of the year                                                |   |          | (8,366 | )      |      |   | (11,874 | )      |   |   | (20,240 | ) |
| Net change in fair value / effective portion of change in fair value recognised |   |          | 4,395  |   |      |   | 5,519   |   |   |   | 9,914 |   |
| Transfer to consolidated statement of income                                    |   |          | 4,536  |   |      |   | -       |   |   |   | 4,536 |   |
| Balance at end of the year                                                      |   |          | 565    |   |      |   | (6,355  | )      |   |   | (5,790 | ) |

| 19 | COMMITMENTS AND CONTINGENCIES |
|----|-------------------------------|

----

| 2013                                     |   | Within 3months |      |   | 3 to 12months |   |       | 1 to 5Years |   |   | Over 5Years |   |   | Total  |      |
|------------------------------------------|--------|----------------|-----------|--------|---------------|--------|------------|-------------|--------|--------|-------------|--------|--------|--------|-----------|
| Letters of credit                        |   |           | 2,166,986 |   |          |   | 3,385,254  |        |   |   | 157,073     |   |   |   | -         |   |   |   | 5,709,313 |   |
| Letters of guarantee                     |   |           | 2,111,972 |   |          |   | 7,966,129  |        |   |   | 9,259,428   |   |   |   | 174,901   |   |   |   | 19,512,430 |   |
| Acceptances                              |   |           | 2,155,141 |   |          |   | 516,792    |        |   |   | 17,962      |   |   |   | -         |   |   |   | 2,689,895 |   |
| Irrevocable commitments to extend credit |   |           | 31,879    |   |          |   | 4,031      |        |   |   | 358,557     |   |   |   | 1,782,148 |   |   |   | 2,176,615 |   |
| Total                                    |   |           | 6,465,978 |   |          |   | 11,872,206 |        |   |   | 9,793,020   |   |   |   | 1,957,049 |   |   |   | 30,088,253 |   |
|                                     |   |           |      |   |          |   |       |        |   |   |        |   |   |   |      |   |
|                                     |   | Within 3       |      |   | 3 to 12       |   |       | 1 to 5      |   |   | Over 5      |   |   |   |      |   |
| 2012                                     |   | months         |      |   | months        |   |       | Years       |   |   | Years       |   |   | Total  |      |
| Letters of credit                        |   |           | 2,923,339 |   |          |   | 2,934,003  |        |   |   | 445,998     |   |   |   | -         |   |   |   | 6,303,340 |   |
| Letters of guarantee                     |   |           | 1,671,574 |   |          |   | 7,123,593  |        |   |   | 6,608,379   |   |   |   | 67,325    |   |   |   | 15,470,871 |   |
| Acceptances                              |   |           | 1,897,045 |   |          |   | 346,029    |        |   |   | 28,807      |   |   |   | -         |   |   |   | 2,271,881 |   |
| Irrevocable commitments to extend credit |   |           | -         |   |          |   | -          |        |   |   | 240,208     |   |   |   | 963,478   |   |   |   | 1,203,686 |   |
| Total                                    |   |           | 6,491,958 |   |          |   | 10,403,625 |        |   |   | 7,323,392   |   |   |   | 1,030,803 |   |   |   | 25,249,778 |   |

|                                                              |   | 2013   |       |   | 2012   |   |
|-------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| ii) Commitments and contingencies by counterparty are as follows: |   |   |       |   |   |   |
| Government and quasi-government                                   |   |   | 202,070    |   |   |   | 38,833 |   |
| Corporate                                                         |   |   | 26,233,613 |   |   |   | 22,170,671 |   |
| Banks and other financial institutions                            |   |   | 3,375,331  |   |   |   | 2,745,393 |   |
| Other                                                             |   |   | 277,239    |   |   |   | 294,881 |   |
| Total                                                             |   |   | 30,088,253 |   |   |   | 25,249,778 |   |

----

|   | d) Operating lease commitments                                                                                        |   |   |      |   |   |   |
|--------|-----------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|   | The future minimum lease payments under non-cancellable operating leases where the Group is a lessee, are as follows: |   |   |      |   |   |   |
|   |                                                                                                                  |   | 2013   |      |   | 2012   |   |
|   | Less than 1 year                                                                                                      |   |   | 49,657    |   |   |   | 45,395 |   |
|   | 1 to 5 years                                                                                                          |   |   | 150,963   |   |   |   | 118,038 |   |
|   | Over 5 years                                                                                                          |   |   | 127,673   |   |   |   | 66,878 |   |
|   | Total                                                                                                                 |   |   | 328,293   |   |   |   | 230,311 |   |
| 20     | SPECIAL COMMISSION INCOME AND EXPENSE                                                                                 |   |   |      |   |   |   |   |   |
|   | Special commission income                                                                                             |   |   |      |   |   |   |   |   |
|   | Investments:                                                                                                          |   |   | 2013      |   |   |   | 2012 |   |
|   | Available for sale                                                                                                    |   |   | 4,960     |   |   |   | 9,761 |   |
|   | Held to maturity                                                                                                      |   |   | 3,497     |   |   |   | 4,748 |   |
|   | Other investments held at amortised cost                                                                              |   |   | 192,613   |   |   |   | 138,200 |   |
|   |                                                                                                                  |   |   | 201,070   |   |   |   | 152,709 |   |
|   | Due from banks and other financial institutions                                                                       |   |   | 22,766    |   |   |   | 19,384 |   |
|   | Loans and advances                                                                                                    |   |   | 1,871,669 |   |   |   | 1,547,674 |   |
|   | Total                                                                                                                 |   |   | 2,095,505 |   |   |   | 1,719,767 |   |
|   |                                                                                                                  |   |   |      |   |   |   |   |   |
|   | Special commission expense                                                                                            |   |   | 2013      |   |   |   | 2012 |   |
|   | Due to banks and other financial institutions                                                                         |   |   | 7,276     |   |   |   | 4,813 |   |
|   | Customers’ deposits                                                                                             |   |   | 375,993   |   |   |   | 287,458 |   |
|   | Subordinated debt                                                                                                     |   |   | 88,524    |   |   |   | 55,162 |   |
|   | Total                                                                                                                 |   |   | 471,793   |   |   |   | 347,433 |   |
| 21     | FEE AND COMMISSION INCOME, NET                                                                                        |   |   |      |   |   |   |   |   |
|   | Fee and commission income:                                                                                            |   |   | 2013      |   |   |   | 2012 |   |
|   |                                                                                                                  |
|   | Share brokerage and fund management                                                                                   |   |   | 48,368    |   |   |   | 55,030 |   |
|   | Trade finance                                                                                                         |   |   | 262,859   |   |   |   | 235,867 |   |
|   | Corporate finance and advisory                                                                                        |   |   | 347,616   |   |   |   | 269,465 |   |
|   | Credit card products                                                                                                  |   |   | 100,431   |   |   |   | 86,718 |   |
|   | Other banking services                                                                                                |   |   | 47,967    |   |   |   | 44,410 |   |
|   | Total fee and commission income                                                                                       |   |   | 807,241   |   |   |   | 691,490 |   |
|   | Fee expenses:                                                                                                         |   |   |      |   |   |   |   |   |
|   | Credit card products                                                                                                  |   |   | 60,296    |   |   |   | 53,322 |   |
|   | Other banking services                                                                                                |   |   | 14,720    |   |   |   | 10,463 |   |
|   | Total fee expenses                                                                                                    |   |   | 75,016    |   |   |   | 63,785 |   |
|   | Fee and commission income, net                                                                                        |   |   | 732,225   |   |   |   | 627,705 |   |

----

| 22    TRADING INCOME, NET                              |   | 2013   |    |   | 2012   |   |
|----------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Foreign exchange, net                                                      |   |   | 58,639  |   |   |   | 56,522 |   |
| Investments held for trading                                               |   |   | 355     |   |   |   | 1,073 |   |
| Derivatives                                                                |   |   | 77,405  |   |   |   | 40,066 |   |
| Total                                                                      |   |   | 136,399 |   |   |   | 97,661 |   |
| 23    (LOSSES) / GAINS ON NON-TRADING INVESTMENTS, NET |   |   |    |   |   |   |   |   |
|                                                                       |   |   | 2013    |   |   |   | 2012 |   |
| Available for sale investments                                             |   |   | (750    | )      |   |   | 7,689 |   |
| Other investments held at amortised costs                                  |   |   | -       |   |   |   | (3,134 | ) |
| Total                                                                      |   |   | (750    | )      |   |   | 4,555 |   |

| 24 | SALARIES AND EMPLOYEE-RELATED EXPENSES |
|----|----------------------------------------|

| 2013                                                       |   |               |   |   |                  |   |    | Variable Compensation |   |
|------------------------------------------------------------|--------|--------------------|--------|--------|-----------------------|--------|---------|-----------------------|--------|
| Categories of employees                                    |   | Number ofemployees |   |   | Fixedcompensationpaid |   |    | Cash                  |   |   | Shares |   |   | Total |   |
| Senior executives who require SAMA's no objection          |   |               | 16     |   |                  |   | 22,101  |                  |   |   | 6,629 |   |   |   | 6,624 |   |   |   | 35,354 |   |
| Employees engaged in control and risk management functions |   |               | 96     |   |                  |   | 28,055  |                  |   |   | 3,361 |   |   |   | 1,402 |   |   |   | 32,818 |   |
| Employees engaged in risk taking activities                |   |               | 452    |   |                  |   | 105,706 |                  |   |   | 16,276 |   |   |   | 6,385 |   |   |   | 128,367 |   |
| Other employees                                            |   |               | 1,620  |   |                  |   | 206,824 |                  |   |   | 23,911 |   |   |   | 4,862 |   |   |   | 235,597 |   |
| Total                                                      |   |               | 2,184  |   |                  |   | 362,686 |                  |   |   | 50,177 |   |   |   | 19,273 |   |   |   | 432,136 |   |
| Variable Compensation accrued during the year:             |   |               |   |   |                  |   | 51,700  |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Other employee related expenses paid during the year       |   |               |   |   |                  |   | 83,398  |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Other employee related expenses accrued during the year    |   |               |   |   |                  |   | 11,072  |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Salaries and employee related expenses               |   |               |   |   |                  |   | 508,856 |                  |   |   |   |   |   |   |   |   |   |   |   |   |

| 2012                                                       |   |               |   |   |                  |   |    | Variable Compensation |   |
|------------------------------------------------------------|--------|--------------------|--------|--------|-----------------------|--------|---------|-----------------------|--------|
| Categories of employees                                    |   | Number ofemployees |   |   | Fixedcompensationpaid |   |    | Cash                  |   |   | Shares |   |   | Total |   |
| Senior executives who require SAMA's no objection          |   |               | 15     |   |                  |   | 21,253  |                  |   |   | 5,604 |   |   |   | 5,117 |   |   |   | 31,974 |   |
| Employees engaged in control and risk management functions |   |               | 93     |   |                  |   | 24,038  |                  |   |   | 2,556 |   |   |   | 1,046 |   |   |   | 27,640 |   |
| Employees engaged in risk taking activities                |   |               | 445    |   |                  |   | 94,803  |                  |   |   | 14,927 |   |   |   | 6,460 |   |   |   | 116,190 |   |
| Other employees                                            |   |               | 1,568  |   |                  |   | 189,885 |                  |   |   | 18,956 |   |   |   | 4,378 |   |   |   | 213,219 |   |
| Total                                                      |   |               | 2,121  |   |                  |   | 329,979 |                  |   |   | 42,043 |   |   |   | 17,001 |   |   |   | 389,023 |   |
| Variable Compensation accrued during the year              |   |               |   |   |                  |   | 46,209  |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Other employee related expenses paid during the year       |   |               |   |   |                  |   | 81,245  |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Other employee related expenses accrued during the year    |   |               |   |   |                  |   | 16,670  |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Salaries and employee related expenses               |   |               |   |   |                  |   | 474,103 |                  |   |   |   |   |   |   |   |   |   |   |   |   |

----

| 25   | EARNINGS PER SHARE |
|----------------|--------------------|

| 26   | PROPOSED GROSS DIVIDENDS, ZAKAT AND INCOME TAX |
|----------------|------------------------------------------------|

----

| 27   | CASH AND CASH EQUIVALENTS |
|----------------|---------------------------|

|                                                                         |   | 2013   |      |   | 2012   |   |
|------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Cash and balances with SAMA excluding statutory deposit (note 4)             |   |   | 3,558,843 |   |   |   | 6,955,327 |   |
| Due from banks and other financial institutions maturing within three months |   |   |      |   |   |   |   |   |
| or less from the acquisition date                                            |   |   | 814,367   |   |   |   | 840,717 |   |
| Total                                                                        |   |   | 4,373,210 |   |   |   | 7,796,044 |   |

| 28   | OPERATING SEGMENTS |
|----------------|--------------------|

----

| a) The following is an analysis of the Group's assets, revenues and results by operating segments for the years ended December 31, 2013 and 2012. |
|---------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                    |   |      |       |   |     |   |       |     |   |      | Investment  |       |     |        |      |     |   |   |
|-------------------------------------------------------------------------|--------|-----------|------------|--------|----------|--------|------------|----------|--------|-----------|-------------|------------|----------|-------------|-----------|----------|--------|--------|
|                                                                    |   |      |       |   |     |   |       |     |   |      | banking and |       |     |        |      |     |   |   |
|                                                                    |   | Corporate |       |   | Personal |   |       |     |   |      | investment  |       |     |        |      |     |   |   |
| 2013                                                                    |   | Banking   |       |   | Banking  |   |       | Treasury |   |      | services    |       |     | Others      |      |     | Total  |   |
| Total assets                                                            |   |      | 44,297,447 |   |     |   | 9,552,567  |     |   |      | 21,608,741  |       |     |        | 505,568   |     |   |   | 4,503,938 |   |   |   | 80,468,261 |   |
| Total liabilities                                                       |   |      | 31,552,195 |   |     |   | 20,331,500 |     |   |      | 2,494,278   |       |     |        | 24,362    |     |   |   | 16,664,498 |   |   |   | 71,066,833 |   |
| Net special commission income                                           |   |      | 986,160    |   |     |   | 562,704    |     |   |      | 215,876     |       |     |        | 4,808     |     |   |   | (145,836 | ) |   |   | 1,623,712 |   |
| Fee and commission income, net                                          |   |      | 596,565    |   |     |   | 138,600    |     |   |      | -           |       |     |        | 54,106    |     |   |   | (57,046 | ) |   |   | 732,225 |   |
| Trading income, net                                                     |   |      | 85,445     |   |     |   | 7,573      |     |   |      | 45,898      |       |     |        | 4,356     |     |   |   | (6,873 | ) |   |   | 136,399 |   |
| Total operating income                                                  |   |      | 1,760,259  |   |     |   | 737,734    |     |   |      | 265,050     |       |     |        | 63,270    |     |   |   | (210,318 | ) |   |   | 2,615,995 |   |
| Impairment charge for credit losses, net                                |   |      | 173,174    |   |     |   | 45,323     |     |   |      | -           |       |     |        | -         |     |   |   | - |   |   |   | 218,497 |   |
| Depreciation and amortisation                                           |   |      | 32,985     |   |     |   | 55,226     |     |   |      | 7,901       |       |     |        | -         |     |   |   | - |   |   |   | 96,112 |   |
| Total operating expenses                                                |   |      | 454,467    |   |     |   | 547,557    |     |   |      | 69,914      |       |     |        | 41,634    |     |   |   | - |   |   |   | 1,113,572 |   |
| Net operating income for the year                                       |   |      | 1,305,792  |   |     |   | 190,177    |     |   |      | 195,136     |       |     |        | 21,636    |     |   |   | (210,318 | ) |   |   | 1,502,423 |   |
|                                                                    |   |      |       |   |     |   |       |     |   |      |        |       |     |        |      |     |   |   |   |   |   |   |   |
|                                                                    |   |      |       |   |     |   |       |     |   |      |        |       |     | Investment  |      |     |   |   |   |   |   |   |   |
|                                                                    |   |      |       |   |     |   |       |     |   |      |        |       |     | banking and |      |     |   |   |   |   |   |   |   |
|                                                                    |   | Corporate |       |   | Personal |   |       |     |   |      |        | investment |     |        |      |     |   |   |   |   |   |
| 2012                                                                    |   | Banking   |       |   | Banking  |   |       | Treasury |   |      | services    |       |     | Others      |      |     | Total  |   |
| Total assets                                                            |   |      | 38,933,880 |   |     |   | 6,447,887  |     |   |      | 18,499,301  |       |     |        | 491,818   |     |   |   | 4,132,627 |   |   |   | 68,505,513 |   |
| Total liabilities                                                       |   |      | 26,792,582 |   |     |   | 17,526,608 |     |   |      | 1,474,923   |       |     |        | 23,716    |     |   |   | 14,381,705 |   |   |   | 60,199,534 |   |
| Net special commission income                                           |   |      | 895,796    |   |     |   | 466,281    |     |   |      | 167,279     |       |     |        | 4,561     |     |   |   | (161,583 | ) |   |   | 1,372,334 |   |
| Fee and commission income, net                                          |   |      | 494,920    |   |     |   | 120,583    |     |   |      | -           |       |     |        | 67,159    |     |   |   | (54,957 | ) |   |   | 627,705 |   |
| Trading income, net                                                     |   |      | 59,740     |   |     |   | 5,514      |     |   |      | 32,406      |       |     |        | 3,810     |     |   |   | (3,809 | ) |   |   | 97,661 |   |
| Total operating income                                                  |   |      | 1,536,551  |   |     |   | 623,249    |     |   |      | 199,685     |       |     |        | 75,529    |     |   |   | (215,667 | ) |   |   | 2,219,347 |   |
| Impairment charge for credit losses, net                                |   |      | 77,810     |   |     |   | 62,094     |     |   |      | -           |       |     |        | -         |     |   |   | - |   |   |   | 139,904 |   |
| Release of impairment charge of investments                             |   |      | -          |   |     |   | -          |     |   |      | (20,000     | )          |     |        | -         |     |   |   | - |   |   |   | (20,000 | ) |
| Depreciation and amortisation                                           |   |      | 38,880     |   |     |   | 62,818     |     |   |      | 9,043       |       |     |        | -         |     |   |   | - |   |   |   | 110,741 |   |
| Total operating expenses                                                |   |      | 308,529    |   |     |   | 533,550    |     |   |      | 71,768      |       |     |        | 52,817    |     |   |   | - |   |   |   | 966,664 |   |
| Net operating income for the year                                       |   |      | 1,228,022  |   |     |   | 89,699     |     |   |      | 127,917     |       |     |        | 22,712    |     |   |   | (215,667 | ) |   |   | 1,252,683 |   |
| b) The Group’s credit exposure by business segment is as follows: |   |      |       |   |     |   |       |     |   |      |        |       |     |        |      |     |   |   |   |   |   |
|                                                                    |   |      |       |   |     |   |       |     |   | Corporate |        |       | Personal |        |      |     |   |   |   |   |   |   |
| 2013                                                                    |   |      |       |   |     |   |       |     |   | Banking   |        |       | Banking  |        |      | Treasury |   |   | Total |   |
| Non derivative financial assets                                         |   |      |       |   |     |   |       |     |   |      | 44,297,447  |       |     |        | 9,552,567 |     |   |   | 18,617,762 |   |   |   | 72,467,776 |   |
| Commitments and contingencies                                           |   |      |       |   |     |   |       |     |   |      | 14,523,365  |       |     |        | -         |     |   |   | - |   |   |   | 14,523,365 |   |
| Derivatives                                                             |   |      |       |   |     |   |       |     |   |      | -           |       |     |        | -         |     |   |   | 1,312,922 |   |   |   | 1,312,922 |   |
|                                                                    |   |      |       |   |     |   |       |     |   | Corporate |        |       | Personal |        |      |     |   |   |   |   |   |   |
| 2012                                                                    |   |      |       |   |     |   |       |     |   | Banking   |        |       | Banking  |        |      | Treasury |   |   | Total |   |
| Non derivative financial assets                                         |   |      |       |   |     |   |       |     |   |      | 38,933,880  |       |     |        | 6,447,887 |     |   |   | 12,237,344 |   |   |   | 57,619,111 |   |
| Commitments and contingencies                                           |   |      |       |   |     |   |       |     |   |      | 11,739,866  |       |     |        | -         |     |   |   | - |   |   |   | 11,739,866 |   |
| Derivatives                                                             |   |      |       |   |     |   |       |     |   |      | -           |       |     |        | -         |     |   |   | 1,132,341 |   |   |   | 1,132,341 |   |

----

| 29   | CREDIT RISK |
|----------------|-------------|

|                                            |   | 2013   |       |   | 2012   |   |
|-------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Due from banks and other financial institutions |   |   | 1,751,367  |   |   |   | 840,717 |   |
| Investments, net                                |   |   | 16,849,162 |   |   |   | 11,378,577 |   |
| Loans and advances, net                         |   |   | 53,652,325 |   |   |   | 45,276,199 |   |
| Derivatives                                     |   |   | 1,312,922  |   |   |   | 1,132,341 |   |
| Credit related commitments and contingencies    |   |   | 14,523,365 |   |   |   | 11,739,866 |   |
| Total                                           |   |   | 88,089,141 |   |   |   | 70,367,700 |   |

----

| 30   | GEOGRAPHICAL CONCENTRATION |
|----------------|----------------------------|

|                                                 |   |   |       |   | Other       |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |
|------------------------------------------------------|--------|--------|------------|--------|-------------|--------|-----------|--------|--------|--------|---------|--------|--------|-----------|---------|--------|-----------|--------|--------|--------|--------|
|                                                 |   | Saudi  |       |   | GCC and     |   |      |   |   |   | North   |   |   | South     |    |   | Other     |   |   |   |   |
| 2013                                                 |   | Arabia |       |   | Middle East |   |      | Europe |   |   | America |   |   | East Asia |    |   | Countries |   |   | Total  |   |
| Assets                                               |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |
| Cash and balances with SAMA                          |   |   | 6,662,522  |   |        |   | -         |   |   |   | -       |   |   |      | -       |   |      |   | -      |   |   |   | - |   |   |   | 6,662,522 |   |
| Due from banks and other financial                   |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| institutions                                         |   |   | 632,663    |   |        |   | 453,663   |   |   |   | 481,263 |   |   |      | 166,699 |   |      |   | 2,665  |   |   |   | 14,414 |   |   |   | 1,751,367 |   |
|                                                 |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |
| Investments, net                                     |   |   | 15,150,531 |   |        |   | 1,223,963 |   |   |   | 375,050 |   |   |      | -       |   |      |   | -      |   |   |   | 99,618 |   |   |   | 16,849,162 |   |
| Loans and advances, net                              |   |   | 53,211,260 |   |        |   | 441,065   |   |   |   | -       |   |   |      | -       |   |      |   | -      |   |   |   | - |   |   |   | 53,652,325 |   |
| Total                                                |   |   | 75,656,976 |   |        |   | 2,118,691 |   |   |   | 856,313 |   |   |      | 166,699 |   |      |   | 2,665  |   |   |   | 114,032 |   |   |   | 78,915,376 |   |
| Commitments and                                      |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Contingencies                                        |   |   | 27,287,819 |   |        |   | 366,408   |   |   |   | 604,424 |   |   |      | 148,218 |   |      |   | 2,023  |   |   |   | 1,679,361 |   |   |   | 30,088,253 |   |
| Maximum credit exposure (stated at credit equivalent |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |
| amounts)                                             |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Commitments and                                      |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| contingencies                                        |   |   | 13,149,403 |   |        |   | 262,938   |   |   |   | 376,165 |   |   |      | 62,394  |   |      |   | 1,011  |   |   |   | 671,454 |   |   |   | 14,523,365 |   |
| Derivatives                                          |   |   | 564,855    |   |        |   | 41,276    |   |   |   | 703,235 |   |   |      | 3,554   |   |      |   | 2      |   |   |   | - |   |   |   | 1,312,922 |   |
|                                                 |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |       |   |        | Other  |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | Saudi  |       |   | GCC and     |   |      |   |   |   |    | North  |   |      | South   |   |      | Other  |   |   |   |   |   |
| 2012                                                 |   | Arabia |       |   | Middle East |   |      | Europe |   |   | America |   |   | East Asia |    |   | Countries |   |   | Total  |   |
| Assets                                               |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Cash and balances with SAMA                          |   |   | 9,562,455  |   |        |   | -         |   |   |   | -       |   |   |      | -       |   |      |   | -      |   |   |   | - |   |   |   | 9,562,455 |   |
| Due from banks and other financial                   |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| institutions                                         |   |   | 213,239    |   |        |   | 146,087   |   |   |   | 454,918 |   |   |      | 21,184  |   |      |   | 1,484  |   |   |   | 3,805 |   |   |   | 840,717 |   |
|                                                 |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |
| Investments, net                                     |   |   | 9,732,407  |   |        |   | 1,265,386 |   |   |   | 281,295 |   |   |      | -       |   |      |   | -      |   |   |   | 99,489 |   |   |   | 11,378,577 |   |
| Loans and advances, net                              |   |   | 44,833,214 |   |        |   | 442,985   |   |   |   | -       |   |   |      | -       |   |      |   | -      |   |   |   | - |   |   |   | 45,276,199 |   |
| Total                                                |   |   | 64,341,315 |   |        |   | 1,854,458 |   |   |   | 736,213 |   |   |      | 21,184  |   |      |   | 1,484  |   |   |   | 103,294 |   |   |   | 67,057,948 |   |
| Commitments and                                      |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Contingencies                                        |   |   | 22,862,646 |   |        |   | 262,932   |   |   |   | 599,744 |   |   |      | 115,882 |   |      |   | 684    |   |   |   | 1,407,890 |   |   |   | 25,249,778 |   |
| Maximum credit exposure (stated at credit equivalent |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |
| amounts)                                             |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Commitments and                                      |   |   |       |   |        |   |      |   |   |   |    |   |   |      |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| contingencies                                        |   |   | 10,638,255 |   |        |   | 202,477   |   |   |   | 370,436 |   |   |      | 60,364  |   |      |   | 589    |   |   |   | 467,745 |   |   |   | 11,739,866 |   |
| Derivatives                                          |   |   | 496,688    |   |        |   | 90,324    |   |   |   | 536,936 |   |   |      | 8,343   |   |      |   | 49     |   |   |   | 1 |   |   |   | 1,132,341 |   |

----

| 31   | MARKET RISK |
|----------------|-------------|

|                 |   | Foreign exchange |   |   | Special Commission |   |   | Foreign Exchange |   |   | Overall |   |
|----------------------|--------|------------------|--------|--------|--------------------|--------|--------|------------------|--------|--------|---------|--------|
|                 |   | rate risk        |   |   | rate risk          |   |   | Forwards         |   |   | Risk    |   |
| 2013 (VaR)           |   |             |   |   |               |   |   |             |   |   |    |   |
| As at December 31    |   |             | 108    |   |               |   | 871    |             |   |   | 34      |   |   |   | 1,013 |   |
| Average for the year |   |             | 172    |   |               |   | 499    |             |   |   | 70      |   |   |   | 741 |   |
|                 |   | Foreign exchange |   |   | Special Commission |   |   | Foreign Exchange |   |   | Overall |   |
|                 |   | rate risk        |   |   | rate risk          |   |   | Forwards         |   |   | Risk    |   |
| 2012 (VaR)           |   |             |   |   |               |   |   |             |   |   |    |   |   |   |   |   |
| As at December 31    |   |             | 200    |   |               |   | 422    |             |   |   | 10      |   |   |   | 632 |   |
| Average for the year |   |             | 155    |   |               |   | 309    |             |   |   | 63      |   |   |   | 527 |   |

----

| Currency         | Increase/ (decrease) in basis points | Sensitivity ofspecialcommission | Sensitivity of equity |
|------------------|--------------------------------------|---------------------------------|-----------------------|
| 6 months or less | 6 to12 months                        |   1-5 Yrs             | Over 5Years           | Total  |
| USD              | 25(25)                               | (5)5                            | --                    | -- | -- | -- | -- |
| SAR              | 25(25)                               | 32(32)                          | (7)7                  | (17)17 | (155)155 | -- | (179)179 |
| Others           | 25(25)                               | 1(1)                            | --                    | -- | -- | -- | -- |

| Currency         | Increase/ (decrease) in basis points | Sensitivity ofspecialcommission | Sensitivity of equity |
|------------------|--------------------------------------|---------------------------------|-----------------------|
| 6 months or less | 6 to12 months                        | 1-5 Yrs                    | Over 5Years           | Total  |
| USD              | 25(25)                               | (5)5                            | --                    | -- | -- | -- | -- |
| SAR              | 25(25)                               | 43(43)                          | (7)7                  | (17)17 | (308)308 | -- | (332)332 |
| Others           | 25(25)                               | --                              | --                    | -- | -- | -- | -- |

|                                          |   |     |       |   |    |   |       |   |   |   |      |   |   | Non        |      |   |   |   |
|-----------------------------------------------|--------|----------|------------|--------|---------|--------|------------|--------|--------|--------|-----------|--------|--------|------------|-----------|--------|--------|--------|
|                                          |   | Within 3 |       |   | 3 to 12 |   |       | 1 to 5 |   |   | Over 5    |   |   | commission |      |   |   |   |
| 2013                                          |   | Months   |       |   | Months  |   |       | years  |   |   | Years     |   |   | bearing    |      |   | Total  |   |
| Assets                                        |   |     |       |   |    |   |       |   |   |   |      |   |   |       |      |   |   |   |
| Cash and balances with SAMA                   |   |     | 2,990,979  |   |    |   | -          |   |   |   | -         |   |   |       | -         |   |   |   | 3,671,543 |   |   |   | 6,662,522 |   |
| Due from banks and other  financial |   |     |       |   |    |   |       |   |   |   |      |   |   |       |      |   |   |   |   |   |   |   |   |   |
| institutions                                  |   |     | 946,540    |   |    |   | -          |   |   |   | -         |   |   |       | -         |   |   |   | 804,827 |   |   |   | 1,751,367 |   |
| Investments, net                              |   |     | 4,952,099  |   |    |   | 9,223,435  |   |   |   | 617,250   |   |   |       | 1,744,633 |   |   |   | 311,745 |   |   |   | 16,849,162 |   |
| Loans and advances, net                       |   |     | 32,310,142 |   |    |   | 10,584,318 |   |   |   | 6,455,174 |   |   |       | 4,302,691 |   |   |   | - |   |   |   | 53,652,325 |   |
| Investment in an associate                    |   |     | -          |   |    |   | -          |   |   |   | -         |   |   |       | -         |   |   |   | 17,233 |   |   |   | 17,233 |   |
| Property and equipment, net                   |   |     | -          |   |    |   | -          |   |   |   | -         |   |   |       | -         |   |   |   | 504,802 |   |   |   | 504,802 |   |
| Other assets                                  |   |     | -          |   |    |   | -          |   |   |   | -         |   |   |       | -         |   |   |   | 1,030,850 |   |   |   | 1,030,850 |   |
| Total                                         |   |     | 41,199,760 |   |    |   | 19,807,753 |   |   |   | 7,072,424 |   |   |       | 6,047,324 |   |   |   | 6,341,000 |   |   |   | 80,468,261 |   |

----

|                                          |   |     |       |   |    |   |       |   |   |   |       |   |   | Non        |       |   |   |   |
|-----------------------------------------------|--------|----------|------------|--------|---------|--------|------------|--------|--------|--------|------------|--------|--------|------------|------------|--------|--------|--------|
|                                          |   | Within 3 |       |   | 3 to 12 |   |       | 1 to 5 |   |   | Over 5     |   |   | commission |       |   |   |   |
| Liabilities and shareholders’ equity    |   | Months   |       |   | Months  |   |       | years  |   |   | Years      |   |   | bearing    |       |   | Total  |   |
| Due to banks and other financial              |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |
| institutions                                  |   |     | 1,185,154  |   |    |   | 1,150      |   |   |   | 5,000      |   |   |       | -          |   |   |   | 1,302,974 |   |   |   | 2,494,278 |   |
| Customers’ deposits                     |   |     | 30,734,219 |   |    |   | 5,244,082  |   |   |   | 717,453    |   |   |       | -          |   |   |   | 25,179,695 |   |   |   | 61,875,449 |   |
| Subordinated debt                             |   |     | -          |   |    |   | 4,625,000  |   |   |   | -          |   |   |       | -          |   |   |   | - |   |   |   | 4,625,000 |   |
| Other liabilities                             |   |     | -          |   |    |   | -          |   |   |   | -          |   |   |       | -          |   |   |   | 2,072,106 |   |   |   | 2,072,106 |   |
| Shareholders’ equity                    |   |     | -          |   |    |   | -          |   |   |   | -          |   |   |       | -          |   |   |   | 9,401,428 |   |   |   | 9,401,428 |   |
| Total liabilities and shareholders' equity    |   |     | 31,919,373 |   |    |   | 9,870,232  |   |   |   | 722,453    |   |   |       | -          |   |   |   | 37,956,203 |   |   |   | 80,468,261 |   |
| Commission rate sensitivity - financial       |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |   |
| position gap                                  |   |     | 9,280,387  |   |    |   | 9,937,521  |   |   |   | 6,349,971  |   |   |       | 6,047,324  |   |   |   | (31,615,203 | ) |   |   | - |   |
| Commission rate sensitivity on                |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |   |
| derivative financial instruments              |   |     | 1,045,442  |   |    |   | (722,274   | )      |   |   | (406,335   | )      |   |       | (7,659     | )      |   |   | 90,826 |   |   |   | - |   |
| Total commission rate sensitivity gap         |   |     | 10,325,829 |   |    |   | 9,215,247  |   |   |   | 5,943,636  |   |   |       | 6,039,665  |   |   |   | (31,524,377 | ) |   |   | - |   |
| Cumulative commission rate                    |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |   |
| sensitivity gap                               |   |     | 10,325,829 |   |    |   | 19,541,076 |   |   |   | 25,484,712 |   |   |       | 31,524,377 |   |   |   | - |   |   |   | - |   |
|                                          |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |
|                                          |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   | Non    |   |   |   |   |   |
|                                          |   | Within 3 |       |   | 3 to 12 |   |       | 1 to 5 |   |   | Over 5     |   |   | commission |       |   |   |   |   |
| 2012                                          |   | Months   |       |   | Months  |   |       | years  |   |   | Years      |   |   | bearing    |       |   | Total  |   |
| Assets                                        |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |   |
| Cash and balances with SAMA                   |   |     | 6,261,957  |   |    |   | -          |   |   |   | -          |   |   |       | -          |   |   |   | 3,300,498 |   |   |   | 9,562,455 |   |
| Due from banks and other  financial |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |   |
| institutions                                  |   |     | -          |   |    |   | -          |   |   |   | -          |   |   |       | -          |   |   |   | 840,717 |   |   |   | 840,717 |   |
| Investments, net                              |   |     | 2,327,270  |   |    |   | 8,435,127  |   |   |   | 119,888    |   |   |       | 450,000    |   |   |   | 46,292 |   |   |   | 11,378,577 |   |
| Loans and advances, net                       |   |     | 29,821,857 |   |    |   | 9,637,150  |   |   |   | 4,297,687  |   |   |       | 1,519,505  |   |   |   | - |   |   |   | 45,276,199 |   |
| Investment in an associate                    |   |     | -          |   |    |   | -          |   |   |   | -          |   |   |       | -          |   |   |   | 18,050 |   |   |   | 18,050 |   |
| Property and equipment, net                   |   |     | -          |   |    |   | -          |   |   |   | -          |   |   |       | -          |   |   |   | 488,767 |   |   |   | 488,767 |   |
| Other assets                                  |   |     | -          |   |    |   | -          |   |   |   | -          |   |   |       | -          |   |   |   | 940,748 |   |   |   | 940,748 |   |
| Total                                         |   |     | 38,411,084 |   |    |   | 18,072,277 |   |   |   | 4,417,575  |   |   |       | 1,969,505  |   |   |   | 5,635,072 |   |   |   | 68,505,513 |   |
|                                          |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |
|                                          |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   | Non    |   |   |   |   |   |
|                                          |   | Within 3 |       |   | 3 to 12 |   |       | 1 to 5 |   |   | Over 5     |   |   | commission |       |   |   |   |   |
| Liabilities and shareholders’ equity    |   | Months   |       |   | Months  |   |       | years  |   |   | Years      |   |   | bearing    |       |   | Total  |   |
| Due to banks and other financial              |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |   |
| institutions                                  |   |     | 881,350    |   |    |   | 1,715      |   |   |   | -          |   |   |       | -          |   |   |   | 591,858 |   |   |   | 1,474,923 |   |
| Customers’ deposits                     |   |     | 25,136,543 |   |    |   | 5,492,231  |   |   |   | 639,157    |   |   |       | -          |   |   |   | 22,645,741 |   |   |   | 53,913,672 |   |
| Subordinated debt                             |   |     | -          |   |    |   | 2,900,000  |   |   |   | -          |   |   |       | -          |   |   |   | - |   |   |   | 2,900,000 |   |
| Other liabilities                             |   |     | -          |   |    |   | -          |   |   |   | -          |   |   |       | -          |   |   |   | 1,910,939 |   |   |   | 1,910,939 |   |
| Shareholders’ equity                    |   |     | -          |   |    |   | -          |   |   |   | -          |   |   |       | -          |   |   |   | 8,305,979 |   |   |   | 8,305,979 |   |
| Total liabilities and shareholders' equity    |   |     | 26,017,893 |   |    |   | 8,393,946  |   |   |   | 639,157    |   |   |       | -          |   |   |   | 33,454,517 |   |   |   | 68,505,513 |   |
| Commission rate sensitivity - financial       |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |   |
| position gap                                  |   |     | 12,393,191 |   |    |   | 9,678,331  |   |   |   | 3,778,418  |   |   |       | 1,969,505  |   |   |   | (27,819,445 | ) |   |   | - |   |
| Commission rate sensitivity on                |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |   |
| derivative financial instruments              |   |     | 685,139    |   |    |   | 248,109    |   |   |   | (1,055,653 | )      |   |       | 122,405    |   |   |   | - |   |   |   | - |   |
| Total commission rate sensitivity gap         |   |     | 13,078,330 |   |    |   | 9,926,440  |   |   |   | 2,722,765  |   |   |       | 2,091,910  |   |   |   | (27,819,445 | ) |   |   | - |   |
| Cumulative commission rate                    |   |     |       |   |    |   |       |   |   |   |       |   |   |       |       |   |   |   |   |   |   |   |   |   |
| sensitivity gap                               |   |     | 13,078,330 |   |    |   | 23,004,770 |   |   |   | 25,727,535 |   |   |       | 27,819,445 |   |   |   | - |   |   |   | - |   |

----

| Currency exposure | Change in         | Effect on       |
|-------------------|-------------------|-----------------|
|              | Currency Rate (%) | Net Income      |
| USD               | 5 (5)             | (12,667) 12,667 |
| CHF               | 5 (5)             | (3,484) 3,484   |
| EUR               | 5 (5)             | 898 (898)       |
| GBP               | 5 (5)             | (25) 25         |
| JPY               | 5 (5)             | 20 (20)         |
| Others            | 5 (5)             | 155 (155)       |

|              | Change in         | Effect on       |
|-------------------|-------------------|-----------------|
| Currency exposure | Currency Rate (%) | Net Income      |
| USD               | 5 (5)             | (22,021) 22,021 |
| CHF               | 5 (5)             | (7) 7           |
| EUR               | 5 (5)             | 101 (101)       |
| GBP               | 5 (5)             | 1 (1)           |
| JPY               | 5 (5)             | 12 (12)         |
| Others            | 5 (5)             | 485 (485)       |

| At the end of the year, the Group had the following significant net exposures denominated in foreign currencies: |   |           |     |   |   |   |
|------------------------------------------------------------------------------------------------------------------|--------|----------------|----------|--------|--------|--------|
|                                                                                                             |   | Long / (short) |     |
|                                                                                                             |   | SAR ' 000      |     |
|                                                                                                             |   | 2013           |     |   | 2012   |   |
| US Dollar                                                                                                        |   |           | (253,344 | )      |   |   | (440,423 | ) |
| Swiss Franc                                                                                                      |   |           | (69,676  | )      |   |   | (131 | ) |
| Euro                                                                                                             |   |           | 17,955   |   |   |   | 2,028 |   |
| Pound Sterling                                                                                                   |   |           | (505     | )      |   |   | 27 |   |
| Japanese Yen                                                                                                     |   |           | 409      |   |   |   | 235 |   |
| Others                                                                                                           |   |           | 3,101    |   |   |   | 9,702 |   |

----

|    |   | 2013            |   |   |           |   |    | 2012                    |   |   |           |   |
|---------|--------|-----------------|--------|--------|----------------|--------|---------|-------------------------|--------|--------|----------------|--------|
|    |   | Change inequity |   |   | Effect inSAR m |   |    | Change inequity prices% |   |   | Effect inSAR m |   |
| Tadawul |   |            | + 5    |   |           |   | 12,814  |                    |   |   | + 5            |   |   |   | - |   |
|    |   |            | - 5    |   |           |   | (12,814 | )                       |   |   | - 5            |   |   |   | - |   |
|    |   |            | + 10   |   |           |   | 25,628  |                    |   |   | + 10           |   |   |   | - |   |
|    |   |            | - 10   |   |           |   | (25,628 | )                       |   |   | - 10           |   |   |   | - |   |

| 32   | LIQUIDITY RISK |
|----------------|----------------|

|                                            |   | No fixed |      |   | Within 3 |   |       | 3 to 12 |   |   | 1 to 5     |   |   | Over 5 |       |   |   |   |
|-------------------------------------------------|--------|----------|-----------|--------|----------|--------|------------|---------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|
| 2013                                            |   | maturity |      |   | Months   |   |       | Months  |   |   | Years      |   |   | Years  |       |   | Total  |   |
| Assets                                          |   |     |      |   |     |   |       |    |   |   |       |   |   |   |       |   |   |   |
| Cash and balances with SAMA                     |   |     | 3,103,679 |   |     |   | 3,558,843  |    |   |   | -          |   |   |   | -          |   |   |   | - |   |   |   | 6,662,522 |   |
| Due from banks and other financial institutions |   |     | 804,827   |   |     |   | 946,540    |    |   |   | -          |   |   |   | -          |   |   |   | - |   |   |   | 1,751,367 |   |
| Investments, net                                |   |     | 311,745   |   |     |   | 3,471,204  |    |   |   | 9,060,942  |   |   |   | 1,721,639  |   |   |   | 2,283,632 |   |   |   | 16,849,162 |   |
| Loans and advances, net                         |   |     | 1,735,858 |   |     |   | 15,783,093 |    |   |   | 11,128,130 |   |   |   | 16,570,573 |   |   |   | 8,434,671 |   |   |   | 53,652,325 |   |
| Investment in an associate                      |   |     | 17,233    |   |     |   | -          |    |   |   | -          |   |   |   | -          |   |   |   | - |   |   |   | 17,233 |   |
| Property and equipment, net                     |   |     | 504,802   |   |     |   | -          |    |   |   | -          |   |   |   | -          |   |   |   | - |   |   |   | 504,802 |   |
| Other assets                                    |   |     | 1,030,850 |   |     |   | -          |    |   |   | -          |   |   |   | -          |   |   |   | - |   |   |   | 1,030,850 |   |
| Total                                           |   |     | 7,508,994 |   |     |   | 23,759,680 |    |   |   | 20,189,072 |   |   |   | 18,292,212 |   |   |   | 10,718,303 |   |   |   | 80,468,261 |   |

----

|                                          |   | No fixedmaturity |       |   | Within 3Months |   |       | 3 to 12Months |   |   | 1 to 5Years |   |   | Over 5Years |    |   | Total  |   |
|-----------------------------------------------|--------|------------------|------------|--------|----------------|--------|------------|---------------|--------|--------|-------------|--------|--------|-------------|---------|--------|--------|--------|
| Liabilities and shareholders’ equity    |   |             |       |   |           |   |       |          |   |   |        |   |   |        |    |   |   |   |
| Due to banks and other financial institutions |   |             | 1,302,974  |   |           |   | 1,185,154  |          |   |   | 1,150       |   |   |        | 5,000   |   |   |   | - |   |   |   | 2,494,278 |   |
| Customers’ deposits                     |   |             | 26,809,105 |   |           |   | 28,804,809 |          |   |   | 5,544,082   |   |   |        | 717,453 |   |   |   | - |   |   |   | 61,875,449 |   |
| Subordinated debt                             |   |             | -          |   |           |   | -          |          |   |   | -           |   |   |        | -       |   |   |   | 4,625,000 |   |   |   | 4,625,000 |   |
| Other liabilities                             |   |             | 2,072,106  |   |           |   | -          |          |   |   | -           |   |   |        | -       |   |   |   | - |   |   |   | 2,072,106 |   |
| Shareholders’ equity                    |   |             | 9,401,428  |   |           |   | -          |          |   |   | -           |   |   |        | -       |   |   |   | - |   |   |   | 9,401,428 |   |
| Total                                         |   |             | 39,585,613 |   |           |   | 29,989,963 |          |   |   | 5,545,232   |   |   |        | 722,453 |   |   |   | 4,625,000 |   |   |   | 80,468,261 |   |

| 2012                                            |   | No fixedmaturity |      |   | Within 3Months |   |       | 3 to 12Months |   |   | 1 to 5Years |   |   | Over 5Years |       |   | Total  |   |
|-------------------------------------------------|--------|------------------|-----------|--------|----------------|--------|------------|---------------|--------|--------|-------------|--------|--------|-------------|------------|--------|--------|--------|
| Assets                                          |   |             |      |   |           |   |       |          |   |   |        |   |   |        |       |   |   |   |
| Cash and balances with SAMA                     |   |             | 2,607,128 |   |           |   | 6,955,327  |          |   |   | -           |   |   |        | -          |   |   |   | - |   |   |   | 9,562,455 |   |
| Due from banks and other financial institutions |   |             | 840,717   |   |           |   | -          |          |   |   | -           |   |   |        | -          |   |   |   | - |   |   |   | 840,717 |   |
| Investments, net                                |   |             | 46,292    |   |           |   | 464,283    |          |   |   | 7,860,497   |   |   |        | 2,260,884  |   |   |   | 746,621 |   |   |   | 11,378,577 |   |
| Loans and advances, net                         |   |             | 2,193,163 |   |           |   | 17,016,104 |          |   |   | 9,275,744   |   |   |        | 12,795,600 |   |   |   | 3,995,588 |   |   |   | 45,276,199 |   |
| Investment in an associate                      |   |             | 18,050    |   |           |   | -          |          |   |   | -           |   |   |        | -          |   |   |   | - |   |   |   | 18,050 |   |
| Property and equipment, net                     |   |             | 488,767   |   |           |   | -          |          |   |   | -           |   |   |        | -          |   |   |   | - |   |   |   | 488,767 |   |
| Other assets                                    |   |             | 940,748   |   |           |   | -          |          |   |   | -           |   |   |        | -          |   |   |   | - |   |   |   | 940,748 |   |
| Total                                           |   |             | 7,134,865 |   |           |   | 24,435,714 |          |   |   | 17,136,241  |   |   |        | 15,056,484 |   |   |   | 4,742,209 |   |   |   | 68,505,513 |   |
| Liabilities and shareholders’ equity    |   | No fixedmaturity |       |   | Within 3Months |   |       | 3 to 12Months |   |   | 1 to 5Years |   |   | Over 5Years |    |   | Total  |   |
|-----------------------------------------------|--------|------------------|------------|--------|----------------|--------|------------|---------------|--------|--------|-------------|--------|--------|-------------|---------|--------|--------|--------|
| Due to banks and other financial institutions |   |             | 591,858    |   |           |   | 881,351    |          |   |   | 1,714       |   |   |        | -       |   |   |   | - |   |   |   | 1,474,923 |   |
| Customers’ deposits                     |   |             | 24,112,128 |   |           |   | 23,670,157 |          |   |   | 5,492,231   |   |   |        | 639,156 |   |   |   | - |   |   |   | 53,913,672 |   |
| Subordinated debt                             |   |             | -          |   |           |   | -          |          |   |   | -           |   |   |        | -       |   |   |   | 2,900,000 |   |   |   | 2,900,000 |   |
| Other liabilities                             |   |             | 1,910,939  |   |           |   | -          |          |   |   | -           |   |   |        | -       |   |   |   | - |   |   |   | 1,910,939 |   |
| Shareholders’ equity                    |   |             | 8,305,979  |   |           |   | -          |          |   |   | -           |   |   |        | -       |   |   |   | - |   |   |   | 8,305,979 |   |
| Total                                         |   |             | 34,920,904 |   |           |   | 24,551,508 |          |   |   | 5,493,945   |   |   |        | 639,156 |   |   |   | 2,900,000 |   |   |   | 68,505,513 |   |

| 2013                                          |   | No fixedmaturity |       |   | Within 3months |   |       | 3 to 12months |   |   | 1 to 5years |   |   | Over 5years |      |   | Total  |   |
|-----------------------------------------------|--------|------------------|------------|--------|----------------|--------|------------|---------------|--------|--------|-------------|--------|--------|-------------|-----------|--------|--------|--------|
| Financial Liabilities                         |   |             |       |   |           |   |       |          |   |   |        |   |   |        |      |   |   |   |
| Due to banks and other financial institutions |   |             | 1,302,974  |   |           |   | 1,186,198  |          |   |   | 1,159       |   |   |        | 5,290     |   |   |   | - |   |   |   | 2,495,621 |   |
| Customers’ deposits                     |   |             | 26,809,105 |   |           |   | 28,903,917 |          |   |   | 5,595,905   |   |   |        | 842,229   |   |   |   | - |   |   |   | 62,151,156 |   |
| Subordinated debts                            |   |             | -          |   |           |   | 6,603      |          |   |   | 112,910     |   |   |        | 1,086,934 |   |   |   | 5,356,397 |   |   |   | 6,562,844 |   |
| Derivatives                                   |   |             | -          |   |           |   | -          |          |   |   | -           |   |   |        | -         |   |   |   | - |   |   |   |   |   |
| Contractual amounts payable                   |   |             | -          |   |           |   | (65,752    | )             |   |   | (208,396    | )      |   |        | (657,724  | )      |   |   | (155,513 | ) |   |   | (1,087,385 | ) |
| Contractual amounts receivable                |   |             | -          |   |           |   | 70,064     |          |   |   | 227,042     |   |   |        | 680,639   |   |   |   | 168,266 |   |   |   | 1,146,011 |   |
| Total undiscounted financial liabilities      |   |             | 28,112,079 |   |           |   | 30,101,030 |          |   |   | 5,728,620   |   |   |        | 1,957,368 |   |   |   | 5,369,150 |   |   |   | 71,268,247 |   |

----

| 2012                                          |   |   |       |   |   |   |       |   |   |   |      |   |   |   |      |   |   |   |
|-----------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|
| Financial Liabilities                         |   |   |       |   |   |   |       |   |   |   |      |   |   |   |      |   |   |   |
| Due to banks and other financial institutions |   |   | 591,858    |   |   |   | 881,459    |   |   |   | 1,718     |   |   |   | -         |   |   |   | - |   |   |   | 1,475,035 |   |
| Customers’ deposits                     |   |   | 24,112,128 |   |   |   | 23,708,410 |   |   |   | 5,523,905 |   |   |   | 719,810   |   |   |   | - |   |   |   | 54,064,253 |   |
| Subordinated debts                            |   |   | -          |   |   |   | 3,154      |   |   |   | 74,572    |   |   |   | 535,688   |   |   |   | 3,235,459 |   |   |   | 3,848,873 |   |
| Derivatives                                   |   |   |       |   |   |   |       |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   | - |   |
| Contractual amounts payable                   |   |   | -          |   |   |   | (68,216    | )      |   |   | (204,360  | )      |   |   | (507,228  | )      |   |   | (68,841 | ) |   |   | (848,645 | ) |
| Contractual amounts receivable                |   |   | -          |   |   |   | 62,517     |   |   |   | 200,748   |   |   |   | 491,196   |   |   |   | 74,409 |   |   |   | 828,870 |   |
| Total undiscounted financial liabilities      |   |   | 24,703,986 |   |   |   | 24,587,324 |   |   |   | 5,596,583 |   |   |   | 1,239,466 |   |   |   | 3,241,027 |   |   |   | 59,368,386 |   |

| 33   | FAIR VALUES OF FINANCIAL INSTRUMENTS Determination of fair value and the fair value hierarchy |
|----------------|-----------------------------------------------------------------------------------------------|

|   | Level 1: | Quoted prices in active markets for the same instrument (i.e., without modification or repacking): |
|--------|----------|----------------------------------------------------------------------------------------------------|

|   | Level 2: | Quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; and |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | valuation techniques for which significant inputs are not based on observable market data. |
|--------|----------|--------------------------------------------------------------------------------------------|

| 2013                                     |   |    |    |   |    |   |    |    |   |   |   |   |
|------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|--------|--------|
| Financial assets                         |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total  |   |
| Derivative financial instruments         |   |    | -       |   |    |   | 286,343 |    |   |   | -      |   |   |   | 286,343 |   |
| Financial investments available for sale |   |    | 308,307 |   |    |   | 219,850 |    |   |   | 3,438  |   |   |   | 531,595 |   |
| Total                                    |   |    | 308,307 |   |    |   | 506,193 |    |   |   | 3,438  |   |   |   | 817,938 |   |
| Financial liabilities                    |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Derivative financial instruments         |   |    | -       |   |    |   | 175,893 |    |   |   | -      |   |   |   | 175,893 |   |
| Total                                    |   |    | -       |   |    |   | 175,893 |    |   |   | -      |   |   |   | 175,893 |   |
| 2012                                     |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Financial assets                         |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total  |   |
| Derivative financial instruments         |   |    | -       |   |    |   | 253,524 |    |   |   | -      |   |   |   | 253,524 |   |
| Financial investments available for sale |   |    | 165,869 |   |    |   | 70,430  |    |   |   | 4,188  |   |   |   | 240,487 |   |
| Total                                    |   |    | 165,869 |   |    |   | 323,954 |    |   |   | 4,188  |   |   |   | 494,011 |   |
| Financial liabilities                    |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Derivative financial instruments         |   |    | -       |   |    |   | 253,200 |    |   |   | -      |   |   |   | 253,200 |   |
| Total                                    |   |    | -       |   |    |   | 253,200 |    |   |   | -      |   |   |   | 253,200 |   |

----

| 34   | RELATED PARTY TRANSACTIONS |
|----------------|----------------------------|

| ABN AMRO Bank N.V.                                                                                 |   | 2013   |      |   | 2012   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Due from banks and other financial institutions                                                    |   |   | 175,888   |   |   |   | 39,392 |   |
| Investments                                                                                        |   |   | 93,763    |   |   |   | 187,530 |   |
| Due to banks and other financial institutions                                                      |   |   | 45,932    |   |   |   | 17,545 |   |
| Derivatives at fair value, net                                                                     |   |   | (1,559    | )      |   |   | (8,689 | ) |
| Commitments and contingencies                                                                      |   |   | 101,234   |   |   |   | 97,114 |   |
| Associates & other major shareholders and their affiliate entities with significant influence: |   |   |      |   |   |   |   |   |
| Loans and advances                                                                                 |   |   | 590,166   |   |   |   | 521,055 |   |
| Derivatives at fair value, net                                                                     |   |   | (14,747   | )      |   |   | 2,321 |   |
| Investments                                                                                        |   |   | 40,000    |   |   |   | 40,000 |   |
| Customers’ deposits                                                                          |   |   | 5,650,999 |   |   |   | 4,869,777 |   |
| Subordinated debt                                                                                  |   |   | 794,000   |   |   |   | 520,000 |   |
| Commitments and contingencies                                                                      |   |   | 5,743     |   |   |   | 2,112 |   |
| Mutual funds managed by the Group:                                                                 |   |   |      |   |   |   |   |   |
| Investments                                                                                        |   |   | 52,031    |   |   |   | 42,104 |   |
| Subordinated debt                                                                                  |   |   | 17,500    |   |   |   | 2,500 |   |
| Customers’ deposits, net                                                                     |   |   | 71,209    |   |   |   | 45,500 |   |

|                                          |   | 2013   |   |   | 2012   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Special commission income                     |   |   | 20,186 |   |   |   | 16,136 |   |
| Special commission expense                    |   |   | 87,458 |   |   |   | 57,320 |   |
| Fees from banking services, net               |   |   | 1,998  |   |   |   | 2,784 |   |
| Fees from management services                 |   |   | 14,317 |   |   |   | 15,854 |   |
| General and administrative expenses           |   |   | 609    |   |   |   | 567 |   |
| Directors’ remuneration                 |   |   | 3,720  |   |   |   | 3,850 |   |
| Compensation paid to key management personnel |   |   | 35,354 |   |   |   | 31,974 |   |

| 35   | CAPITAL ADEQUACY |
|----------------|------------------|

----

| The components of risk weighted assets (RWA), capital and ratios are as follows: |   |   |       |   |   |   |
|----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                             |   | 2013   |       |   | 2012   |   |
| Credit Risk RWA                                                                  |   |   | 71,695,801 |   |   |   | 58,831,550 |   |
| Operational Risk RWA                                                             |   |   | 3,653,600  |   |   |   | 3,625,338 |   |
| Market Risk RWA                                                                  |   |   | 440,854    |   |   |   | 738,672 |   |
| Total RWA                                                                        |   |   | 75,790,255 |   |   |   | 63,195,560 |   |
| Tier I Capital                                                                   |   |   | 8,910,966  |   |   |   | 7,841,197 |   |
| Tier II Capital                                                                  |   |   | 4,970,076  |   |   |   | 3,278,204 |   |
| Total Tier I & II Capital                                                    |   |   | 13,881,042 |   |   |   | 11,119,401 |   |
| Capital Adequacy Ratio %                                                         |   |   |       |   |   |   |   |   |
| Tier I                                                                           |   |   | 11.76      |   |   |   | 12.41 |   |
| Tier I + Tier II                                                                 |   |   | 18.32      |   |   |   | 17.60 |   |

| 36   | BASEL III - CAPITAL STRUCTURE |
|----------------|-------------------------------|

| 37   | BASEL III PILLAR 3 DISCLOSURE |
|----------------|-------------------------------|

| 38   | INVESTMENT MANAGEMENT AND BROKERAGE SERVICES |
|----------------|----------------------------------------------|

| 39   | STAFF SHARE BASED PLAN RESERVE |
|----------------|--------------------------------|

|   | -   | Eligible employees are required to continue their employment with the Group for a period of two years from the grant date to have half of their shares vest and another year for the remainder to vest; and |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   | The Group achieves specific growth thresholds as approved by the Board of Directors where each threshold will accrue a certain value of shares to the eligible employees. |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      | Grant in 2013       |   | Grant in 2012       |   | Grant in 2011       |
|-------------------------------------------|---------------------|--------|---------------------|--------|---------------------|
| Plan Commencement date                    | March 2013          |   | March 2012          |   | March 2011          |
| Value of shares granted on the grant date | 18,623,988          |   | 15,775,890          |   | 11,850,637          |
| Fair value per share at grant date        | 27.24               |   | 30                  |   | 40.51               |
| Vesting period                            | As above            |   | As above            |   | As above            |
| Number of shares granted                  | 683,700             |   | 525,863             |   | 292,521             |
| Vesting period                            | March 2015 - 2016   |   | March 2014 - 2015   |   | March 2013 - 2014   |
| Method of settlement                      | Bank’s shares |   | Bank’s shares |   | Bank’s shares |

| The following is the movement in number of shares in grant at December 31: |   |             |      |   |   |   |
|----------------------------------------------------------------------------|--------|------------------|-----------|--------|--------|--------|
|                                                                       |   | Number of shares |      |
|                                                                       |   | 2013             |      |   | 2012   |   |
| Beginning of the year                                                      |   |             | 878,729   |   |   |   | 272,231 |   |
| Granted during the year                                                    |   |             | 707,555   |   |   |   | 743,383 |   |
| Shares vested during the year                                              |   |             | (141,309  | )      |   |   | - |   |
| Forfeited during the year                                                  |   |             | (101,364  | )      |   |   | (136,885 | ) |
| Shares expected to vest at the reporting date                              |   |             | 1,343,611 |   |   |   | 878,729 |   |

| 40   | PROSPECTIVE CHANGES IN THE INTERNATIONAL FINANCIAL REPORTING FRAMEWORK |
|----------------|------------------------------------------------------------------------|

----

| 41   | COMPARATIVE FIGURES |
|----------------|---------------------|

| 42   | BOARD OF DIRECTORS’ APPROVAL |
|----------------|------------------------------------|

----

| CONSOLIDATED STATEMENT OF INCOME                          |   |   |      |   |   |   |      | Appendix |   |
|-----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|----------|--------|
| For the years ended December 31                           |   |   |      |   |   |   |      |     |   |
| Amounts in SAR’000                                  |   |   |      |   |   |   |      |     |   |
|                                                      |   | 2013   |      |   | 2012   |   |      | 2011     |   |
| Special commission income                                 |   |   | 2,095,505 |   |   |   | 1,719,767 |     |   |   | 1,523,706 |   |
| Special commission expense                                |   |   | 471,793   |   |   |   | 347,433   |     |   |   | 234,111 |   |
| Net special commission income                             |   |   | 1,623,712 |   |   |   | 1,372,334 |     |   |   | 1,289,595 |   |
| Fee and commission income, net                            |   |   | 732,225   |   |   |   | 627,705   |     |   |   | 519,203 |   |
| Exchange income, net                                      |   |   | 121,133   |   |   |   | 117,092   |     |   |   | 109,526 |   |
| Trading income, net                                       |   |   | 136,399   |   |   |   | 97,661    |     |   |   | 76,030 |   |
| Dividend income from available for sale investments       |   |   | 3,276     |   |   |   | -         |     |   |   | - |   |
| (Losses) / gains on non-trading investments, net          |   |   | (750      | )      |   |   | 4,555     |     |   |   | 5,852 |   |
| Income from financial instruments designated as FVIS, net |   |   | -         |   |   |   | -         |     |   |   | 5,040 |   |
| Total operating income                                    |   |   | 2,615,995 |   |   |   | 2,219,347 |     |   |   | 2,005,246 |   |
| Salaries and employee-related expenses                    |   |   | 508,856   |   |   |   | 474,103   |     |   |   | 440,432 |   |
| Rent and premises-related expenses                        |   |   | 83,899    |   |   |   | 73,073    |     |   |   | 75,953 |   |
| Depreciation and amortisation                             |   |   | 96,112    |   |   |   | 110,741   |     |   |   | 101,775 |   |
| Other general and administrative expenses                 |   |   | 206,208   |   |   |   | 188,843   |     |   |   | 200,196 |   |
| Impairment charge for credit losses, net                  |   |   | 218,497   |   |   |   | 139,904   |     |   |   | 160,776 |   |
| Release of impairment charge of investments               |   |   | -         |   |   |   | (20,000   | )        |   |   | 10,000 |   |
| Total operating expenses                                  |   |   | 1,113,572 |   |   |   | 966,664   |     |   |   | 989,132 |   |
| Operating income                                          |   |   | 1,502,423 |   |   |   | 1,252,683 |     |   |   | 1,016,114 |   |
| Gain on sale of property                                  |   |   | -         |   |   |   | -         |     |   |   | 18,057 |   |
| Share in (loss) / earning of an associate                 |   |   | (817      | )      |   |   | 300       |     |   |   | (2,250 | ) |
| Net income for the year                                   |   |   | 1,501,606 |   |   |   | 1,252,983 |     |   |   | 1,031,921 |   |
| Basic and diluted EPS                                     |   |   | 3.78      |   |   |   | 3.16      |     |   |   | 2.60 |   |

----

| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME            |   |   |      |   |   |   |      | Appendix |   |
|-----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|----------|--------|
| For the years ended December 31                           |   |   |      |   |   |   |      |     |   |
| Amounts in SAR’000                                  |   |   |      |   |   |   |      |     |   |
|                                                      |   | 2013   |      |   | 2012   |   |      | 2011     |   |
| Net income for the year                                   |   |   | 1,501,606 |   |   |   | 1,252,983 |     |   |   | 1,031,921 |   |
| Other comprehensive income:                               |   |   |      |   |   |   |      |     |   |   |   |   |
| Items that can be recycled back to consolidated statement |   |   |      |   |   |   |      |     |   |   |   |   |
| of income in future                                       |   |   |      |   |   |   |      |     |   |   |   |   |
| Available for sale investments:                           |   |   |      |   |   |   |      |     |   |   |   |   |
| -  Net change in fair value                     |   |   | 19,329    |   |   |   | 4,395     |     |   |   | 3,395 |   |
| - Transferred to the consolidated statement of income     |   |   | 1,796     |   |   |   | 4,536     |     |   |   | 7,335 |   |
|                                                      |   |   | 21,125    |   |   |   | 8,931     |     |   |   | 10,730 |   |
| Cash flow hedges:                                         |   |   |      |   |   |   |      |     |   |   |   |   |
| - Transferred to the consolidated statement of income     |   |   | 6,355     |   |   |   | 5,519     |     |   |   | (1,054 | ) |
| Total other comprehensive income                          |   |   | 27,480    |   |   |   | 14,450    |     |   |   | 9,676 |   |
| Total comprehensive income for the year                   |   |   | 1,529,086 |   |   |   | 1,267,433 |     |   |   | 1,041,597 |   |

----

| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY |   |         |      |   |             |   |      |           |   |   |                         |   |   |            | Appendix |   |
|-----------------------------------------------------------------|--------|--------------|-----------|--------|------------------|--------|-----------|----------------|--------|--------|------------------------------|--------|--------|-----------------|----------|--------|
| For the years ended December 31                                 |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts in SAR’000                                        |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |         |      |   |             |   |      |           |   |   | Other reserves               |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   | ShareCapital |      |   | Statutoryreserve |   |      | GeneralReserve |   |   | Availablefor saleinvestments |   |   | Cash flowhedges |     |   | Reservefor bonusshares |   |   | Retainedearnings |   |   | Proposedgrossdividends |   |   | Staff sharebasedplanreserve |   |   | Totalshareholders'equity |   |
| 2013                                                            |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at beginning of the                                     |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| year                                                            |   |         | 3,969,000 |   |             |   | 2,705,726 |           |   |   | 130,000                      |   |   |            | 565      |   |   |   | (6,355 | ) |   |   | - |   |   |   | 1,051,286 |   |   |   | 444,528 |   |   |   | 11,229 |   |   |   | 8,305,979 |   |
| Total comprehensive income                                      |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for the year                                                    |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | 21,125   |   |   |   | 6,355 |   |   |   | - |   |   |   | 1,501,606 |   |   |   | - |   |   |   | - |   |   |   | 1,529,086 |   |
| Staff share based plan                                          |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| transactions                                                    |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,891 |   |   |   | 10,891 |   |
| Transfer to statutory reserve                                   |   |         | -         |   |             |   | 375,402   |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | (375,402 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Proposed bonus shares                                           |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | 793,800 |   |   |   | (793,800 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Dividends paid                                                  |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (444,528 | ) |   |   | - |   |   |   | (444,528 | ) |
| Proposed gross dividends                                        |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | (468,342 | ) |   |   | 468,342 |   |   |   | - |   |   |   | - |   |
| Balance at the end of the year                                  |   |         | 3,969,000 |   |             |   | 3,081,128 |           |   |   | 130,000                      |   |   |            | 21,690   |   |   |   | - |   |   |   | 793,800 |   |   |   | 915,348 |   |   |   | 468,342 |   |   |   | 22,120 |   |   |   | 9,401,428 |   |
| 2012                                                            |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at beginning of the                                     |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| year                                                            |   |         | 3,307,500 |   |             |   | 2,392,480 |           |   |   | 130,000                      |   |   |            | (8,366   | )      |   |   | (11,874 | ) |   |   | 661,500 |   |   |   | 556,077 |   |   |   | 377,055 |   |   |   | 3,950 |   |   |   | 7,408,322 |   |
| Total comprehensive income                                      |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for the year                                                    |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | 8,931    |   |   |   | 5,519 |   |   |   | - |   |   |   | 1,252,983 |   |   |   | - |   |   |   | - |   |   |   | 1,267,433 |   |
| Staff share based plan                                          |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| transactions                                                    |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,279 |   |   |   | 7,279 |   |
| Transfer to statutory reserve                                   |   |         | -         |   |             |   | 313,246   |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | (313,246 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Bonus shares issued                                             |   |         | 661,500   |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   |   |   |   |   | (661,500 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Dividends paid                                                  |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (377,055 | ) |   |   | - |   |   |   | (377,055 | ) |
| Proposed gross dividends                                        |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | (444,528 | ) |   |   | 444,528 |   |   |   | - |   |   |   | - |   |
| Balance at the end of the year                                  |   |         | 3,969,000 |   |             |   | 2,705,726 |           |   |   | 130,000                      |   |   |            | 565      |   |   |   | (6,355 | ) |   |   | - |   |   |   | 1,051,286 |   |   |   | 444,528 |   |   |   | 11,229 |   |   |   | 8,305,979 |   |
| 2011                                                            |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at beginning of the                                     |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| year                                                            |   |         | 3,307,500 |   |             |   | 2,134,500 |           |   |   | 130,000                      |   |   |            | (19,096  | )      |   |   | (10,820 | ) |   |   | - |   |   |   | 820,691 |   |   |   | - |   |   |   | 24,181 |   |   |   | 6,386,956 |   |
| Total comprehensive income                                      |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for the year                                                    |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | 10,730   |   |   |   | (1,054 | ) |   |   | - |   |   |   | 1,031,921 |   |   |   | - |   |   |   | - |   |   |   | 1,041,597 |   |
| Staff share based plan                                          |   |         |      |   |             |   |      |           |   |   |                         |   |   |            |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| transactions                                                    |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (20,231 | ) |   |   | (20,231 | ) |
| Transfer to statutory reserve                                   |   |         | -         |   |             |   | 257,980   |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | (257,980 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Bonus shares issued                                             |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | 661,500 |   |   |   | (661,500 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Proposed gross dividend                                         |   |         | -         |   |             |   | -         |           |   |   | -                            |   |   |            | -        |   |   |   | - |   |   |   | - |   |   |   | (377,055 | ) |   |   | 377,055 |   |   |   | - |   |   |   | - |   |
| Balance at the end of the year                                  |   |         | 3,307,500 |   |             |   | 2,392,480 |           |   |   | 130,000                      |   |   |            | (8,366   | )      |   |   | (11,874 | ) |   |   | 661,500 |   |   |   | 556,077 |   |   |   | 377,055 |   |   |   | 3,950 |   |   |   | 7,408,322 |   |

----

| CONSOLIDATED STATEMENT OF CASH FLOWS                                                 |   |   |        |   |   |   |        | Appendix |   |
|--------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|----------|--------|
| For the years ended December 31                                                      |   |   |        |   |   |   |        |     |   |
| Amounts in SAR’000                                                             |   |   |        |   |   |   |        |     |   |
|                                                                                 |   | 2013   |        |   | 2012   |   |        | 2011     |   |
| OPERATING ACTIVITIES                                                                 |   |   |        |   |   |   |        |     |   |
| Net income for the year                                                              |   |   | 1,501,606   |   |   |   | 1,252,983   |     |   |   | 1,031,921 |   |
| Adjustments to reconcile net income to net cash from operating activities:           |   |   |        |   |   |   |        |     |   |   |   |   |
| (Accretion of discounts) and amortisation of premium on non-trading investments, net |   |   | (80,491     | )      |   |   | (44,880     | )        |   |   | (176,706 | ) |
| Gain on sale of property and equipment                                               |   |   | (73         | )      |   |   | -           |     |   |   | (18,057 | ) |
| Losses / (gains) on non-trading investments, net                                     |   |   | 750         |   |   |   | (4,555      | )        |   |   | (5,852 | ) |
| Depreciation and amortisation                                                        |   |   | 96,112      |   |   |   | 110,741     |     |   |   | 101,775 |   |
| Impairment charge for credit losses, net                                             |   |   | 218,497     |   |   |   | 139,904     |     |   |   | 160,776 |   |
| Share in loss / (earning) of an associate                                            |   |   | 817         |   |   |   | (300        | )        |   |   | 2,250 |   |
| Release of impairment charge of investments                                          |   |   | -           |   |   |   | (20,000     | )        |   |   | 10,000 |   |
| Staff share based plan transactions                                                  |   |   | 10,891      |   |   |   | 7,279       |     |   |   | 3,950 |   |
|                                                                                 |   |   | 1,748,109   |   |   |   | 1,441,172   |     |   |   | 1,110,057 |   |
| Net (increase) / decrease in operating assets:                                       |   |   |        |   |   |   |        |     |   |   |   |   |
| Statutory deposit with SAMA                                                          |   |   | (496,551    | )      |   |   | (348,626    | )        |   |   | (30,277 | ) |
| Due from banks and other financial institutions maturing after                       |   |   |        |   |   |   |        |     |   |   |   |   |
| ninety days from the date of acquisition                                             |   |   | (937,000    | )      |   |   | -           |     |   |   | 750 |   |
| Investments held as FVIS (including trading investments)                             |   |   | -           |   |   |   | 11,110      |     |   |   | 104,468 |   |
| Loans and advances, net                                                              |   |   | (8,594,623  | )      |   |   | (8,006,505  | )        |   |   | (2,550,983 | ) |
| Other assets                                                                         |   |   | (189,032    | )      |   |   | 82,627      |     |   |   | 71,514 |   |
| Net increase / (decrease) in operating liabilities:                                  |   |   |        |   |   |   |        |     |   |   |   |   |
| Due to banks and other financial institutions                                        |   |   | 1,019,355   |   |   |   | (136,168    | )        |   |   | (1,245,921 | ) |
| Customers’ deposits                                                            |   |   | 7,961,777   |   |   |   | 9,224,936   |     |   |   | 3,104,705 |   |
| Other liabilities                                                                    |   |   | 161,167     |   |   |   | (78,398     | )        |   |   | 454,511 |   |
| Net cash from operating activities                                                   |   |   | 673,202     |   |   |   | 2,190,148   |     |   |   | 1,018,824 |   |
| INVESTING ACTIVITIES                                                                 |   |   |        |   |   |   |        |     |   |   |   |   |
| Proceeds from sale and maturity of non-trading investments                           |   |   | 8,503,821   |   |   |   | 15,966,576  |     |   |   | 16,181,262 |   |
| Purchase of non-trading investments                                                  |   |   | (13,866,435 | )      |   |   | (15,775,362 | )        |   |   | (15,878,548 | ) |
| Purchase of property and equipment                                                   |   |   | (112,147    | )      |   |   | (110,009    | )        |   |   | (106,501 | ) |
| Proceeds from sale of property and equipment                                         |   |   | 73          |   |   |   | -           |     |   |   | 28,500 |   |
| Net cash (used in) / from investing activities                                       |   |   | (5,474,688  | )      |   |   | 81,205      |     |   |   | 224,713 |   |
| FINANCING ACTIVITIES                                                                 |   |   |        |   |   |   |        |     |   |   |   |   |
| Proceeds from issuance of subordinated debt                                          |   |   | 2,500,000   |   |   |   | 1,400,000   |     |   |   | - |   |
| Repayment of subordinated debt                                                       |   |   | (775,000    | )      |   |   | -           |     |   |   | - |   |
| Dividends paid net of Zakat and income tax recovered from shareholders               |   |   | (346,348    | )      |   |   | (198,450    | )        |   |   | - |   |
| Net cash from financing activities                                                   |   |   | 1,378,652   |   |   |   | 1,201,550   |     |   |   | - |   |
| Net (decrease) / increase in cash and cash equivalents                               |   |   | (3,422,834  | )      |   |   | 3,472,903   |     |   |   | 1,243,537 |   |
| Cash and cash equivalents at beginning of the year                                   |   |   | 7,796,044   |   |   |   | 4,323,141   |     |   |   | 3,079,604 |   |
| Cash and cash equivalents at end of the year                                         |   |   | 4,373,210   |   |   |   | 7,796,044   |     |   |   | 4,323,141 |   |
| Special commission received during the year                                          |   |   | 2,071,901   |   |   |   | 1,678,131   |     |   |   | 1,647,128 |   |
| Special commission paid during the year                                              |   |   | 446,430     |   |   |   | 306,215     |     |   |   | 301,906 |   |
| Supplemental non-cash information                                                    |   |   |        |   |   |   |        |     |   |   |   |   |
| Net change in fair value and transfers to consolidated statement of income           |   |   | 27,480      |   |   |   | 14,450      |     |   |   | 9,676 |   |

----

|              | RBS Holdings N.V.(Registrant) |                  |
|-------------------|-------------------------------|-----------------------|
|              |                          |                  |   |
|              |                          |                  |   |
| December 30, 2014 | By:                           |  /s/ C. Visscher |   |
|              | Name:                         |  C. Visscher     |   |
|              | Title:                        |  CFO             |   |
|              |                          |                  |   |   |
|              |                          |                  |   |   |
|              |                          |                  |   |   |

|   | By:    |  /s/ J.A. De Ruiter |   |
|--------|--------|--------------------------|--------|
|   | Name:  |  J.A. De Ruiter     |   |
|   | Title: |  Chairman           |   |
|   |   |                     |   |   |

----