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As leaders in the banking industry, Al Rajhi Bank took the initiative of conducting a research study on consumers point of views towards the affluent banking proposition in Kuwait amongst leading banks. The study focused on understanding the mindset of the Kuwaiti market in terms of affluent banking services, assessing and analyzing the requirements of the consumer relative to what is being offered, with a view to developing customer centric Sharia compliant banking products and services. With over 50 years of experience in banking and trading activities and as one of the leading Islamic banks worldwide, Al Rajhi Bank has taken its services to Kuwait to offer its proficiency and expertise to its existing and potential consumers.

Al Rajhi Bank Founded in 1957, Al Rajhi Bank is one of the largest Islamic banks in the world with total assets of SR 184 billion (US$ 49 bn), a paid up capital of US$4 billion and an employee base of over 7,500 associates. With over 50 years of experience in banking and trading activities, the various individual establishments under the Al Rajhi name were merged into the umbrella 'Al Rajhi trading and exchange corporation' in 1978 and it was in 1988 that the bank was established as a Saudi share holding company. Deeply rooted in Islamic banking principles, the Sharia compliant banking group is instrumental in bridging the gap between modern financial demands and intrinsic values, whilst spearheading numerous industry standards and development. With an established base in Riyadh, Saudi Arabia, Al Rajhi Bank has a vast network of over 466 branches, over 100 dedicated ladies branches, more than 2,750 ATMs, 21,000 POS terminals installed with merchants and the largest customer base of any bank in the Kingdom, in addition to 130 remittance centers across the kingdom. In addition to Kuwait, Al Rajhi Bank operates in Malaysia and Jordan.

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Report Compiled By: Research Overview As part of Al Rajhi Banks commitment to understand the requirements of the Kuwait banking sector, Al Rajhi Bank commissioned TNS to conduct primary research into consumer attitudes towards the affluent banking proposition in Kuwait. The research focused on affluent banking customers banking with leading Kuwaiti banks (both conventional and Islamic). Summary of Research Research Objectives Research type Understand needs of affluent banking customers Face to Face Interviews Existing affluent banking customers belonging to banks in Kuwait. Several banks were included in the survey and for the purposes of data aggregation categorized as follows: Islamic Banks = Kuwait Finance House (KFH), Kuwait International Bank (KIB) and Boubyan Bank (BB) Conventional Banks = National Bank of Kuwait (NBK), Gulf Bank of Kuwait (GB) Entry Affluent = Current Account Balance: Less than KD 15,000 Mid Level Affluent = Current Account Balance KD 15,000 to KD 30,000 Upper Affluent = More than KD 30,000 Sample size Research timing 200 respondents Quarter 4, 2009 Yusuf Jehangir Al Rajhi Bank, Riyadh, Kingdom of Saudi Arabia Head of Marketing & Corporate Communications Contact: Jehangiry@alrajhibank.com.sa

Al Rajhi Bank Legal Disclaimer This research report provides general information only. The information, including financial information, contained in this report is provided solely for information purposes only. It is furnished for your private understanding with the express understanding, which the recipient acknowledges, that it does not constitute an offer to sell any product or security, nor does it constitute investment advice and should not be relied upon in making any investment decision.

Target audience

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Expectations & Benefits (By Grouping) Benefits expected from affluent customers were considered in terms of core or hygiene level benefits, secondary benefits that would be expected and tertiary benefits with selective importance. Core Benefits Dedicated Lounge access Dedicated Relationship Managers and Tellers Special ATM/ Credit card Higher ATM cash withdrawal limit Secondary Benefits Emergency cash services International banking services High limit on personal loans Free premium credit card Time deposit accounts (multiple currencies) Discounted travel tickets and travel insurance Instance card cancellation & replacement Tertiary Benefits Family member banking services Discounts on money transfers Safety boxes at special rated Extended business hours Investment & financial planning advice Personalized cheque books Reward programs With one bank With multiple banks 49% 51% Affluent Banking Customer Occupation In terms of primary occupation, the vast majority of affluent banking customers were employed in the government sector. In addition to working for a government organisation, 1 in 3 respondents have their own business. Occupation & Main Occupation Salaried in government employment Have own business Have partnership business Salaried private employment Occupation (multiple responses) 94% 35% 17% 5% Main Occupation 89% 9% 1% 1%

Affluent Banking Relationship 49% of affluent customers report having one banking relationship, whilst 51% say they have multiple banking relationships. The multiple banking relationship increases together with the level of affluence. Banking Relationship Overall Current Account Balance Less 15k to More than 30k KD than 15k KD 30k KD 70% 50% 38% 30% 50% 62%

Expectations & Benefits (Affluence Level) 84% of affluent customers expect discounts on money transfers. 74% expect discounted travel related benefits. Advice on investment and financial products was mentioned by two thirds with importance increasing along with affluence level. Expectations & Benefits Overall Current Account Balance Less 15k KD More than to 30k than 15k KD KD 30k KD 69% 70% 88% 62% 55% 55% 52% 41% 34% 28% 86% 73% 62% 62% 46% 43% 27% 74% 71% 88% 65% 32% 44% 41% Intention to Try a New Bank Affluent banking customers seem to be interested in trying the services of a new bank and comparing with their current bank, with 71% of respondents saying they might be interested in trying a new bank and comparing to their existing bank. 18% of respondents say they are definitely interested in moving to a new bank if their banking needs would be met. Intention to Continue With Existing Bank When asked about overall satisfaction with their current and main bank, 84% of respondents said that they were satisfied overall, with 78% of respondents saying they intended to continue with their existing bank, with highest intention amongst Islamic Banking customers. Intention to Continue (multiple answers) Overall satisfaction Intention to continue Overall 84% 78% Conventional 83% 76% Islamic 85% 88%

Discounts on money transfers Discounted travel tickets and travel insurance Investment and financial planning advice Advice on brokerage services International banking services Reward programs Emergency cash services Time deposit accounts (multiple currencies)

84% 74% 66% 68% 60% 40% 39% 32%

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Affluent Proposition & Treatment Intention to Try a New Bank Not interested in trying/ moving to a new bank Might compare with current bank before making a decision Definitely interested in moving to a new bank Overall 11% 71% 18% When considering the overall affluent proposition offered by their banks 88% of respondents said they needed advice from their bank on investment products. 78% of respondents said they were willing to take a risk to obtain higher financial returns. Face to face interaction is still an important part of the affluent proposition with 7 out of 10 respondents mentioning face to face interaction, this number varies from 86% for entry level customers compared to 62% for upper affluent customers. 66% of respondents mentioned the need for their bank to make them feel important. Affluent Proposition & Treatment Need advice from bank on investments Willing to take a risk for higher return Prefer face to face interaction Prefer a bank that makes me feel important Overall Current Account Balance Less 15k KD More than to 30k than 15k KD KD 30k KD 90% 92% 82% 83% 86% 55% 86% 76% 59% 65% 62% 82%

88% 78% 74% 66%

Reasons For Choosing a Bank (Conventional Versus Islamic) When asked about the main reason for using a particular bank, 56% of affluent customers mentioned superior customer service, whilst Islamic banking practices ranked highly amongst Islamic Banks. Other important reasons mentioned included: the banks financial strength, large network of branches, professional and knowledgeable Relationship Managers. Reasons (multiple answers) Superior customer service Islamic banking practices Financial strength Large network of branches Professional/ Knowledgeable relationship managers Leader in affluent banking International presence Overall 56% 52% 44% 42% 41% 38% 23% Conventional 70% 0% 48% 68% 54% 48% 44% Islamic 45% 80% 42% 30% 35% 31% 9%

Touch Point Interaction All respondents mentioned the need for a dedicated teller when visiting their bank branch. An exclusive lounge was mentioned by 79% and the need for a relationship manager and investment advisor increases along with the level of affluence. Touch Point Interaction Overall Current Account Balance Less 15k KD More than to 30k than 15k KD KD 30k KD 100% 100% 100% 79% 84% 74% 24% 35% 53% 10% 14% 38%

Reasons For Choosing a Bank (Affluence Level) When considering the level of customer affluence, the large network of branches was considered important. Being made to feel special with relationship managers who are knowledgeable and go the extra mile were key factors for all segments, but particularly highly rated by the upper affluent segment. Reasons (multiple answers) Large network of branches Professional/ Knowledgeable relationship managers Willing to go the extra mile Makes me feel taken care of Best investment products Gives good advisory service Overall Current Account Balance Less 15k to More than 30k KD than 15k KD 30k KD 41% 38% 71% 28% 41% 47% 21% 21% 10% 7% 38% 27% 16% 14% 56% 53% 29% 18%

Dedicated Teller Exclusive Lounge Relationship Manager Investment Advisor

100% 79% 38% 21%

Product Usage Not surprisingly, upper affluent customers have a higher proportion of investment products usage, while entry level affluent customers have a higher usage of loans and financing products. Product Usage Overall Current Account Balance Less 15k KD More than to 30k than 15k KD KD 30k KD 14% 51% 56% 28% 27% 50% 31% 16% 15% 17% 8% 3% 3% 11% 9%
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50% 39% 39% 34% 19% 13%

Time Deposits Shares Personal Finance Auto Finance Mutual Funds

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42% 35% 20% 9% 8%

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