#1INVESTOR PRESENTATION November 2019 Simpler Banking KUWAIT EGYPT UAE الأهلي авк#2Disclaimer الأهلي авк 2 THE INFORMATION SET OUT IN THIS PRESENTATION AND PROVIDED IN THE DISCUSSION SUBSEQUENT THERETO DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. This presentation has been prepared by (and is the sole responsibility of) Al Ahli Bank of Kuwait K.S.C.P. (the "Bank"). The information herein may be amended and supplemented and may not as such be relied upon for the purposes of entering into any transaction. This presentation may not be reproduced (in whole or in part), distributed or transmitted to any other person without the Bank's prior written consent. The information in this presentation and the views reflected therein are those of the Bank and are subject to change without notice. All projections, valuations and statistical analyses are provided to assist the recipient in the evaluation of the matters described herein. They may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results and, to the extent that they are based on historical information, they should not be relied upon as an accurate prediction of future performance. These materials are not intended to provide the basis for any recommendation that any investor should subscribe for or purchase any securities. This presentation does not disclose all the risks and other significant issues related to an investment in any securities/transaction. Past performance is not indicative of future results. Al Ahli Bank of Kuwait is under no obligation to update or keep current the information contained herein. No person shall have any right of action against the Bank or any other person in relation to the accuracy or completeness of the information contained in this presentation. No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation, and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of the Bank. This presentation does not constitute an offer or an agreement, or a solicitation of an offer or an agreement, to enter into any transaction (including for the provision of any services). No assurance is given that any such transaction can or will be arranged or agreed. Certain statements in this presentation may constitute forward-looking statements. These statements reflect the Bank's expectations and are subject to risks and uncertainties that may cause actual results to differ materially and may adversely affect the outcome and financial effects of the plans described herein. You are cautioned not to rely on such forward-looking statements. The Bank does not assume any obligation to update its view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein.#3Table of Contents Section 1 Section 2 Section 3 ABK Introduction & Key Highlights Kuwait Country and Banking Snapshot ABK Strategy and Business Overview Section 4 Financial Performance Section 5 Appendix الأهلي авк 2 3 Page # 4 7 11 17 21#4الأهلي Al Ahli Bank of Kuwait ("ABK") Overview V авк 2 Overview of Al Ahli Bank of Kuwait Established on 23rd May 1967, Al Ahli Bank of Kuwait K.S.C.P. ("ABK", the "Issuer" or "the Bank") is a leading bank headquartered in Kuwait and regulated by the Central Bank of Kuwait ("CBK") Operates through three major segments: ► Commercial banking ►Retail banking Treasury and Investments 31 branches in Kuwait, 2 branches in the United Arab Emirates as well as a wholly owned investment banking subsidiary in Kuwait and through the acquisition of Piraeus Bank Egypt, now renamed as "ABK - Egypt", operates 42 full service branches in Egypt ▸ DIFC Branch opened in April 2018 Ranked amongst the top 10 safest banks in the Middle East by Global Finance in 2017 and 2018 Established by the Behbehani family, with approximately 37.5% ownership (direct and indirect) USD million (1) Net Loans & Advances Total Assets Customer Deposits Total Equity Total Operating Income Net Profit Consolidated IFRS Financials 2014 2015 2016 2017 2018 CAGR 9M 9M 2019 2018 10,518 10,302 8,273 10,040 9,898 10,189 9,977 4.8% 11,950 14,363 14,000 14,452 14,995 5.8% 6,620 8,225 9,475 9,739 10,267 11.6% 1,907 15,870 15,265 10,651 10,362 402 423 482 1,831 1,816 1,895 2,230 4.0% 520 557 8.5% ' 2,218 2,201 427 418 128 100 106 118 139 2.0% i 51 89 2.5 2.3 2.6 1.7 1.8 2.1 2.0 84.6 82.5 83.3 83.4 79.0 82.7 82.1 29.8 32.0 39.4 6.8 5.5 5.8 22.7 16.0 16.5 37.7 38.6 38.9 37.9 6.3 7.3 2.4 6.3 16.0 17.9 17.1 17.7 Total Capital Adequacy ratio (%) 23.7 17.2 17.7 17.2 19.2 18.3 18.9 Non performing loans ratio (%) Loans to Deposits ratio (%) Cost income ratio Return on average equity Tier 1 ratio (%) Ownership Structure (as at 31st December 2018) Kuwait Investment Co. The Bank's Credit Ratings Rating Agency Last affirmed Long Term Rating Outlook 49.8% MOODY'S Fitch Ratings July 2019 A2 Stable Sept 2019 A+ Stable 10.1% 9.5% Behbehani Telecommunications Co. Wafra International Investments Co. Behbehani Investment Co. 9.1% (direct and indirect) Ali Murad Yousuf Behbehani 8.8% Heirs of Mohamed Saleh Yousuf Behbehani 6.3% 6.4% Others Note: KD/USD Rates for 2014, 2015, 2016, 2017, 2018, Q3 2019 and Q3 2018 respectively - 0.2928, 0.3035, 0.3060, 0.3018, 0.3033, 0.3040 & 0.3031#5ABK Key Highlights Stable macro environment & solid banking system • Kuwait represents one of the strongest macro profiles with solid fundamentals in the GCC, stable Aa2/AA rating • Stable banking sector with prudent regulatory • environment Highly liquid banking system supported by government spending, enabling healthy operating conditions • • Stable funding base & good liquidity buffers 78% of the total liabilities consist of customer deposits Liquidity coverage ratio 261% & Net Stable Funding Ratio of 108% Leverage of 12%, above the 3% required by the CBK Basel III leverage ratio • • • • • • • الأهلي авк 2 Strong Profitability & sound asset quality 2% Growth in Operating Income Total Assets reached KD 4.8 billion, up 7% from Dec 2018 Customer Deposits at KD 3.2 billon, up 4% from Dec 2018 NPL ratio at 2.1% and provision coverage at 285% Excess credit provisions of KD 75.5 million over and above CBK prescribed IFRS 9 requirements Pre-provision income to average asset ratio at 2.3% One of the highest NIM's among all conventional banks in Kuwait Robust capitalization & strong balance sheet • Tier 1 ratio of 17.1% & CAR of 18.3% Committed shareholder base and a well-experienced management team In September 2018 the Bank issued a US$ 300 Million Perpetual Tier 1 capital bond on the International Capital Markets, which was oversubscribed with very strong interest from investors outside the MENA region Established in 1967 by the Behbehani family, ABK has retained the same core shareholder base since then Has a strong and stable Board and a long-serving executive team with a proven track record in Kuwait 5#6Agenda Section 1 Section 2 Section 3 Introduction to ABK & Key Highlights Kuwait Country and Banking Snapshot ABK Strategy and Business Overview Section 4 Financial Performance Section 5 Appendix الأهلي авк 2 Page # 4 7 11 17 21 9#7Overview of Kuwait Population Nominal GDP (2018E) Oil Revenues (2018) Oil Revenues as % of GDP (2018) Oil Reserves (2018) Key Economic Indicators 4.4 million USD 130 billion / KD 43 billion USD 65.7 billion الأهلي авк Rating Outlook STANDARD AA Stable & POOR'S 46.6% 5th largest in the world at 101.5bn barrels; more than 6% of the world's total oil Fitch Ratings AA Stable reserve 15.4% MOODY'S Aa2 Stable USD 592 billion Public Debt/GDP (2018) Sovereign Wealth Fund AUM Stable Production, amongst the top 10 globally 2.9 2.9 3.0 2.9 2.7 2.7 2013 2014 2015 2016 2017 2018 Average Crude Oil production (millions bbl/day) Current Account Balance (USD billions) Kuwait 7.60 22.00 -5.10 2016 2017 (P) 2018 (P) Source: (1) Public Authority for Civil Information (2) Kuwait Central Statistical Bureau (3) Rating agencies (4) International Monetary fund (5) Sovereign Wealth Fund Institute 2 7#8Overview of Kuwait Banking Sector الأهلي авк 2 6 Conventional Banks 5 local Islamic Banks All banks regulated by the Central Stringent Basel III requirements Bank of Kuwait 23 Banks 12 Kuwaiti banking sector snapshot foreign bank branches 100%(z) Principal Deposit Guarantee Law in effect USD 229bn(¹) of banking assets The Kuwaiti banking sector comprises of 23 banks, including six conventional banks ( one specialised bank), five Shari'a-compliant local banks and branches of 12 international banks which includes a non-Kuwaiti Islamic bank. Highly regulated sector by the CBK with a number of regulations and supervisory practices in place monitoring interest rates charged, lending limits and concentrations, investment limits, liquidity and capital adequacy. The government's financial strength underpins its capacity to provide support to the banking sector with historical evidence of support. Most recently, in 2008, the State of Kuwait offered capital support to a bank as well as introduced a guarantee on customer deposits under the Deposits Guarantee Law following the global financial crisis. Capital adequacy standards under the Basel III framework were implemented by CBK In June 2014. The Tier I ratio and the total capital adequacy ratio required by the CBK are 11% and 13% respectively from December 31, 2016. ABK has been designated as a domestically systemic important bank ("D-SIB") with an additional Common Equity Tier 1 D-SIB surcharge of 0.5% required from December 31, 2016. (1) (2) Central Bank of Kuwait, KD/USD = 0.3040 as of 30 September 2019 The Kuwaiti government passed Law No.30 of 2008 (the "Deposits Guarantee Law") to guarantee deposits held with local banks. Under the Deposit Guarantee Law, the Kuwaiti government has undertaken to guarantee the principal, but not interest, of all deposits held with local banks in Kuwait, including savings and current accounts 80#9Peer Comparison A well established Kuwaiti Bank الوطني NBK BURGAN BANK بنك الخليج . GULF BANK الأهلي авк Al-Tijari Commercial Bent of wat الوطني NBK BURGAN BANK بنك الخليج GULF BANK الأهلي авк Total Assets (USD billions) 22.2 20.2 15.9 15.5 Customer Deposits (USD billions) Al-Tijari 7.9 Commercia Benk of Bowat 13.0 12.5 10.7 All financials are as of 30 Sept'19 Using KD/USD = 0.3040, as of 30 Sept 2019 * As of 31st March 2019 51.9 الوطني 95.1 NBK الأهلي авк Loans and Advances (USD billions) BURGAN BANK 13.9 بنك الخليج ، GULF BANK الاهلي авк Al-Tijari Commercial Bank of Kuwa * الأهـ авк Al-Tijari Commercial Bank of Ku 7.4 10.5 13.6 Capital Adequacy Ratio BURGAN BANK 16.6% بنك الخليج ، GULF BANK الوطني NBK 16.5% 15.8% 18.3% 18.2% 53.8#10Agenda Section 1 Section 2 Section 3 Introduction to ABK & Key Highlights Kuwait Country and Banking Snapshot ABK Strategy and Business Overview Section 4 Financial Performance Section 5 Appendix الأهلي авк 2 10 Page # 4 7 11 17 21#11ABK's Strategy الأهلي авк 2 The Group's Vision is "reimagining a simpler bank" and its Mission is "to consistently provide experiences that simplify and enrich people's lives" Transparency Integrity Simplicity | Retail Banking Excellence Best-in-class turnaround times "make banking easy" • SME & Wealth Management • Cross Border offerings • Account Opening • • Loans and Cards Simplification Direct Sales agents) • All other services at Branch levels New Products and Segments • Footprint expansion ( ATMs, Kiosks, Introduce Digital Wallet • • Re-engineer our credit approval process Redesigned CAR and Credit Approval process Standardized ORR and FRR models Redefine our core competencies Exit or curtail non-core businesses Outsource non-core activities • Rationalize retail product offerings • Remodel ACIC around Issuers and Investors Key Enablers Upgrade our Infrastructure: AML System, Risk Monitoring & Reporting Tools Empower our People: • • Performance Management ("Pay for Performance") Talent Management ("Promote the High Potential") Digital Transformation : Data Repository & Analytics Robotic Process automation • Best in Class cyber-security • Wholesale Banking . • Cash Management and Global Trade Services Corporate Finance and Advisory UAE Commercial Business Growing regional and domestic business Investing outside Kuwait for diversification and increased revenues . DIFC Branch • Cross border products • Wealth/Private Bank 11#12Overview of ABK's Business Segments Commercial Banking comprises a full range of credit, deposit and related banking services provided to its corporate and institutional customers FY 2018 10% الأهلي авк Breakdown by Operating Income 9M 2018 10% 2 9M 2019 7% 37% 34% 56% 34% 56% 56% KD 168.8 million KD 126.8 million KD 129.7 million Retail Banking comprises a full range of products and services to retail customers, including loans, credit cards, deposits and wealth management services Treasury & Investment Note: (1) (2) Breakdown by Assets 1,2 (KD million) 4,280 4,480 4,556 4,739 I 4,215 4,281 24% 23% 25% 24% 28% 29% 12% 13% 14% 14% 14% 15% provided to 64% 64% 61% 62% 57% 56% comprises treasury services customers and balance sheet management activities, including money market, derivatives, proprietary investment activities and the residual impact of inter-segment fund transfer pricing 2015 2016 2017 2018 ■Commercial banking ■Retail banking Sep-18 Treasury & Investments Sep-19 International results included under Commercial Banking, Retail Banking and Treasury & Investment based on segmental regrouping undertaken by the bank in 2017 Excludes unallocated assets for 2015, 2016, 2017, 2018, Sept 18 & Sept 19 respectively - KD 79 million, KD 70 million, KD 80 million, KD 79 million, KD 68 million, KD 71 million and KD 85 million 12#13Commercial & Retail Banking Commercial Banking Corporate Banking: • • Split into 8 specialized business units, each with a broad product range for corporate clients Services range from traditional working capital finance to complex structured financial products for large projects and multinational companies International Banking: Operates from the Group's head office in Kuwait is responsible for the Group's relationship with major international banks and correspondent banks around the world, including the Nostro and Vostro accounts for and within the Group The international banking division manages the Group's institutional and multi- national corporate loan portfolio through relationship managers Retail Banking الأهلي авк 2 Operating Income¹ (KD million) Commercial banking Retail banking 153 146 144 121 116 114 34% 37% 39% 30% 38% 40% 70% 66% 62% 60% 63% 61% 2015 2016 2017 2018 9M 2018 9M 2019 • Target additional growth through acquisition of retail portfolios Segment Assets¹ (KD million) • Co-branding arrangement with Emirates Airlines in place for its credit and prepaid cards as well as the first bank in Kuwait to offer a single multi-currency card Commercial banking Retail banking Key Stats - Kuwait • 31 branches and 160 ATMs as of 30th September 2019 3,235 3,247 3,193 3,206 3,269 3,343 • 175,207 active cards in circulation with a total spend of KD 922mn in 2018 16% 17% 19% 21% 20% 20% • 92,618 registered SMS and mobile application banking customers 221,242 transaction executed for such subscribers during 2019 • 2,994,168 telebanking calls in 2019 • 36-member direct sales force in Kuwait 84% 83% 81% 79% 80% 80% Key Stats - Egypt • 42 branches and 108 ATMs across major cities as of 30th September 2019 2015 2016 2017 2018 Sep-18 Sep-19 Note: (1) International results included under Commercial Banking, Retail Banking and Treasury & Investment based on segmental regrouping undertaken by the bank in 2017 13#14Treasury and Investments & Ahli Capital الأهلي авк Treasury and Investments • The Group's Treasury manages the Group's assets and liabilities and liquidity requirements under the supervision of the Assets and Liabilities Committee Manages the money market books and money market funding positions for the Group's own account to fund its domestic and international foreign- currency assets; • Undertakes a range of foreign exchange business, across both spot and forward markets, largely on behalf of the Group's customer base, and conducts a limited amount of proprietary foreign exchange trading within the constraints of what the Group considers to be prudent risk guidelines; • Maintains a portfolio of Kuwaiti government treasury bills and bonds to meet relevant CBK requirements and to manage surplus domestic currency liquidity • The Group's investment unit is responsible for managing the Group's fixed income proprietary portfolio with the objective of realising income while minimizing the risk of default Segment Assets¹ (KD million) 1,396 1,274 1,287 1,046 1,089 969 2015 2016 2017 2018 Sep-18 Sep-19 Ahli Capital • Established in June 2006 to be the main investment arm of the Group أهلي كابيتال AHLICAPITAL • • • • Currently manages the Al Ahli Kuwaiti Fund, Al Ahli International Multi asset holding fund, Al Ahli Gulf Fund and also manages client investment portfolios. As at 30th September 2019, Ahli Capital had KD 522 million assets under management The Al Ahli Kuwait Fund aims to achieve capital growth through active investment management, targeting the securities of companies listed on the Kuwait Stock Exchange The Al Ahli Gulf Fund aims to achieve capital growth through investment in the securities of companies listed on GCC stock exchanges Ahli Capital has recently partnered with BlackRock to manage Ahli International Multi - Assets Holding Fund which aims to provide long term capital appreciation while diversifying risk globally with International investment spread across different asset classes Source: ABK Note: (1) International results included under Commercial Banking, Retail Banking and Treasury & Investment based on segmental regrouping undertaken by the bank in 2017 14#15International operations The Group's International operations encompass the operations of its UAE branches and its ABK Egypt subsidiary contributing 22% of Operating income and 20% of assets • Al Ahli Bank of Kuwait - UAE First Kuwaiti bank in the UAE and currently has three branches, located in Dubai, Abu Dhabi and DIFC, respectively Operating for over 40 years in Dubai where its branch was originally opened to support the needs of Kuwaiti businesses in Dubai Abu Dhabi branch opened in 2009, since then the Group has expanded its UAE activities to provide retail deposit taking services to customers in the UAE, as well as a range of financing and treasury solutions to corporate customers DIFC Branch opened in April 2018 الأهلي авк 2 Operating Income¹ (KD million) 37 39 22 35 32 28 15 Al Ahli Bank of Kuwait - Egypt • Acquired Piraeus Bank Egypt in November 2015, since renamed Al Ahli Bank of Kuwait - Egypt 2015 2016 2017 2018 9M 2018 9M 2019 • Provides revenue and asset diversification and an opportunity to leverage economic links between Kuwait and Egypt Total Assets¹ (KD million) • Higher margins and growth rate potential in Egypt vis-à-vis Kuwait • • 42 Branches and 108 ATMS spread across major cities in Egypt as of 30 September 2019 Over 172,000 retail customers as of 30th September 2019 • Retail Banking accounts for 38% of total deposits and 31% of total loans as of 30th September 2019 • Corporate Banking accounts for 62% of total deposits and 69% of total loans as of 30th September 2019 1,013 1,047 835 875 909 958 • Assets attributable to ABK Egypt constituted 13.2% of the Group's total assets as of 30th September 2019 2015 2016 2017 2018 Sep-18 Sep-19 Note: (1) International results included under Commercial Banking, Retail Banking and Treasury & Investment based on segmental regrouping undertaken by the bank in 2017 15#16Agenda Section 1 Section 2 Section 3 Introduction to ABK & Key Highlights Kuwait Country and Banking Snapshot ABK Strategy and Business Overview Section 4 Financial Performance Section 5 Appendix الأهلي авк 2 16 Page # 4 7 11 17 21#17Loans portfolio, Funding and Liquidity Loan Growth (KD million) 7.8% 7.3% 6.5% 7.1% 6.5% 6.8% 5.9% CAGR 5.6% FY 2017 الأهلي авк Gross Maximum Exposure by Credit Risk¹ (as at 31 December 2018) FY 2018 14.6% 16.0% 20.7% 22.1% 8.8% 13.0% 22.5% 22.1% 10.9% 609 666 509 536 587 627 363 2,538 2,493 2,488 2,399 2,758 2,739 13.1% 2,059 2.10% ◆ 2.45% 2.55% 2.28% 1.98% 1.67% 1.78% 2014 2015 2016 2017 2018 Sep-18 Sep-19 Corporate and Banks ◆ Non Performing Loans Ratio Funding Profile (KD million) ■Retail ■Provision for credit losses 18.2% 18.0% ■ Personal ■Construction and real estate ■Trading and manufacturing ■ Government and related entities ■Banks and financial institutions ■ Others Maturity Profile for Liabilities 4,443 4,520 4,699 FY 2017 FY 2018 4,251 4,190 4,258 674 676 667 3,420 556 555 572 152 150 151 150 558 735 1,199 596 501 562 635 24% 28% 23% 31% 924 2,496 2,900 2,939 3,115 3,141 3,238 1,938 2014 2015 Customer Deposits 2016 2017 2018 Sep-18 Sep-19 Due to banks and other financial institutions Medium term notes Equity 2 48% Less than one month One month to one year Over one year Note: (1) (2) Gross Maximum Exposure includes Loans and advances, Inter bank placement, Investments and Un-funded exposures Attributable to shareholders of the Bank excluding non-controlling interests and includes Perpetual Tier 1 capital securities of KD 91m issued in Sep 18 46% 17#18Operating Performance Note: Operating Income (KD million) & Cost to Income (%) الأهلي авк Breakdown of Operating Income 2 39.4% 37.7% 38.6% 37.9% 38.9% 32.0% 29.8% 9% 10% 5% 20% 7% 21% 19% 8% 11% 8% 20% 18% 19% 20% 168.8 147.5 157.0 117.6 128.5 126.8 129.7 74% 72% 71% 72% 73% 71% 73% 2014 2015 2016 2017 2018 9M 2018 9M 2019 2014 2015 2016 2017 2018 9M 2018 9M 2019 Operating income Cost to income ratio (%) I Net interest income Other income¹ Net fee and commission income Profitability (KD million) 32.0% 25.0% 23.6% 22.0% 22.7% 21.4% Operating metrics (%) 7.3% 6.8% 6.3% 6.3% 5.8% 5.5% 12.0% 42.1 37.6 2.4% 35.7 30.4 32.5 27.1 1.10% 0.80% 0.80% 0.82% 0.95% 0.79% 15.6 0.30% 2014 I T 2015 2016 2017 2018 9M 2018 9M 2019 2014 2015 2016 2017 2018 Sep 18 Sep 19 Net profit Net profit margin ROAA ROAE (1) Includes Net foreign exchange gain, Net (loss)/gain on investment securities, Dividend income, Share of results of associate & Other income 18#19Capitalisation Overview Capital Adequacy Ratio Basel III 650 الأهلي авк Regulatory Capital (KD, million) 2 690 683 45 43 19.2% 600 576 18.3% 562 17.7% 17.2% 17.2% 546 550 40 38 40 640 644 17.9% 17.1% 38 16.0% 16.0% 16.5% 500 13.5% 13.5% 13.5% 13.0% 524 535 508 12.5% 450 2015 2016 2017 2018 Sept 19 11.0% 11.5% 11.5% 11.5% 10.5% Tier 1 Tier 2 capital 2015 2016 2017 2018 Min Required Tier 1 -Min. Required CAR* Sept 19 Tier 1 CAR *Including D-SIB charge. The Group has been designated as a domestically systemic important bank ("D-SIB") with an additional Common Equity Tier 1 D-SIB surcharge of 0.5 per cent. required from 31 December 2016. As a result, the Group's total minimum capital requirement from that date is 13.5 per cent., which includes a capital conservation buffer. The principal factor behind the Group's falling capital ratios in 2015 was the significant increase in its risk weighted exposures, reflecting the increase in its portfolio of loans and advances in 2015 and to a lesser extent a decrease in the available capital as a result of the acquisition of Pireaus Bank Egypt. 2018 Capital ratio increase is driven by issuance of Additional Tier 1 capital securities of KD 91m Key Central Bank of Kuwait Regulations & Requirements* Common Equity Tier 1 Tier 1 Capital Ratio Capital Adequacy Ratio D-SIB surcharge Net Stable Funding Ratio Liquidity Coverage Ratio Loan to Deposit Ratio Investment Limits 9.5% 11.0% 13.0% 0.5% Equal to at least 100% on an ongoing basis effective from 1st January 2018 Minimum of 70% which will later reach 100% by 2019 Capped at 90% Total ratio of securities portfolio shouldn't exceed 50% of bank's capital Increase is because of issuance of Additional Tier 1 capital of USD 300m in September 2018 19#20Agenda Section 1 Section 2 Section 3 Introduction to ABK & Key Highlights Kuwait Country and Banking Snapshot ABK Strategy and Business Overview Section 4 Financial Performance Section 5 Appendix الأهلي авк 2 20 Page # 4 7 11 17 21#21Awards and Accolades Business 'Bank of the Year' by Arabian Business for four consecutive years Banker MIDDLE FAST INDUSTRY AWARDS 2016 'Best Commercial Bank in Kuwait' for three consecutive years and 'Best New Brand in Egypt 2017' & Fastest Growing Bank in Egypt 2017 2016 The Banker Awards 2016 THE ASIAN BANKER 'Best Bank Transformation in the Middle East' by Euromoney 'Deal of the Year' 2017 & 2019 by The Banker - an FT Affiliate 'Best Retail Bank in Kuwait' by Asian Banker for three consecutive years naseba 'Employer of the Year' by NASEBA for three consecutive years ST BANK SAFEST AWARD. GLORAKCE One of the top 10 safest banks in Middle East by Global Finance for two consecutive years الأهلي авк 2 INTERNATIONAL FINANCE 'Most Innovative Bank in Egypt 2018' and 'Fastest Growing Bank in Egypt 2018 & 2019' by International Finance Magazine 21#22Awards and Accolades 100 INTERNATIONAL FINANCE 'Best Digital Transformation 2019' by International Finance Magazine The Banker DEALS OF THE YEAR 'Deal of the Year Asian Banking & Finance - 2019 2019 THE ASIAN BANKER STRATEGIES INCONVICES COMMUTE 'Best Digital Transformation' by Asian Banker EUROPEAN 'Most innovative bank in Egypt by 'The European' a Thomson Reuters Affiliate EUROPEAN ' Best Retail Bank by The European' a Thomson Reuters Affiliate for two consecutive years Global Business Outlook Best Mobile Banking - Kuwait 2018 الأهلي авк 2 22 22#23Balance Sheet Based on consolidated IFRS financials الأهلي авк 2 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 (KD, 000) CAGR ! (%) Sept 18 Sept 19 Assets Cash and balances with banks 144,825 432,173 494,678 495,519 702,233 48.39% 783,147 864,248 Kuwait Government treasury bonds 279,831 204,246 223,142 344,590 257,161 -2.09% 249,733 188,343 Central Bank of Kuwait bonds 221,228 179,713 173,715 125,595 127,646 -12.85% 115,040 136,929 Loans and advances 2,422,297 3,047,143 3,029,384 3,075,065 3,025,992 5.72% 3,122,496 3,197,388 Investment securities Investment in an associate Premises and equipment Intangible assets Other assets 345,011 343,809 237,905 182,545 289,917 -4.26% 223,649 277,379 14,865 16,572 18,263 19,556 21,896 10.17% 20,882 23,116 33,826 53,125 46,695 53,675 55,710 13.28% 54,957 65,659 41,217 17,698 17,294 16,865 n.m³ 0* 16,918 18,047 37,156 41,066 43,333 47,887 51,008 8.24% ! 39,886 53,358 3,499,039 4,359,064 4,284,813 4,361,726 4,548,428 6.78% 4,626,708 4,824,467 Total assets Liabilities and shareholders' equity Liabilities Due to banks and other financial institutions 923,752 1,199,192 734,771 596,444 501,134 -14.18% 561,631 635,449 Customers' deposits 1,938,297 2,496,278 2,899,908 2,939,349 3,114,504 12.59% 3,140,864 3,237,799 Medium-term borrowing 149,712 150,612 150,481 151,696 Other liabilities Total liabilities Share capital 78,642 2,940,691 107,135 3,802,605 94,331 3,729,010 103,482 105,813 7.70% i 106,678 125,218 3,788,987 3,872,063 7.12% ! 3,959,654 4,150,162 Shareholders' equity 161,917 161,917 161,917 161,917 161,917 0.00% 161,917 161,917 Share premium 108,897 108,897 108,897 108,897 108,897 0.00% 108,897 108,897 Treasury shares (2,303) (4,528) (4,958) (5,053) (5,053) 21.71% (5,053) (5,054) Reserves 289,837 289,314 289,301 306,249 319,042 2.43% 309,762 316,767 Equity attributable to shareholders of the Bank 558,348 555,600 555,157 572,010 584,803 1.16% 575,523 582,527 Perpetual Tier 1 Capital Securities 90,750 90,750 90,750 Non-controlling interests 859 Total equity 558,348 556,459 646 555,803 Total liabilities and shareholders' equity 3,499,039 4,359,064 4,284,813 729 572,739 4,361,726 812 676,365 4,548,428 781 1,028 4.91% 6.78% 667,054 4,626,708 674,305 4,824,467 *Not measurable 23#24Income Statement Based on consolidated IFRS financials الأهلي авк 2 2014 2015 2016 2017 2018 CAGR 9M 2018 9M 2019 (KD, 000) % Interest income Interest expense 111,829 127,003 179,408 188,965 221,067 18.57% 161,745 184,711 (27,469) (32,610) (70,222) (76,533) (99,285) 37.88% (71,676) (89,444) Net interest income 84,360 94,393 109,186 112,432 121,782 9.61% 90,069 95,267 Net fee and commission income 22,030 25,228 30,317 29,047 31,148 9.04% 23,044 24,147 Net foreign exchange gain 2,973 3,134 3,970 4,625 5,053 14.18% i 4,409 3,824 Net (loss)/gain on investment securities 1,860 (1,008) (2,549) 4,943 3,922 20.50% 4,010 1,952 Dividend income 2,671 3,478 2,162 1,999 2,614 -0.54% 2,551 1,690 Share of results of associate 1,976 2,506 2,571 2,173 3,220 12.98% 2,206 2,180 Other income 1,740 801 1,860 1,773 1,076 -11.32% 514 644 Operating income 117,610 128,532 147,517 156,992 168,815 9.46% 126,803 129,704 Staff expenses Other operating expenses (22,181) (25,608) (34,236) (34,161) (35,327) 12.34% (26,211) (28,325) (11,524) (13,849) (19,435) (21,182) (24,882) 21.22% (18,251) (18,160) Depreciation and amortisation (1,366) (1,729) (4,417) (3,835) (4,932) 37.85% (3,647) (4,034) Operating expenses (35,071) (41,186) (58,088) (59,178) (65,141) 16.74% (48,109) (50,519) Operating profit for the year 82,539 87,346 89,429 97,814 103,674 5.87% ! 78,694 79,185 Net gain from business combination 8,005 Provisions on credit facilities General (21,604) (43,993) (21,488) (25,336) Specific (20,196) (14,686) (29,325) (32,186) (11,649) (44,530) -14.31% 21.86% (48,435) (60,597) Net impairment on investment securities and (581) (2,750) (1,626) (431) others -100.00% ! Profit for the year 40,158 33,922 36,990 39,861 47,495 4.28% 30,259 18,588 Directors' fees (360) (480) (375) (495) (593) 13.29% Taxation (2,212) (3,074) (4,103) (3,616) (4,693) 20.69% (3,136) (3,037) Net profit for the year 37,586 30,368 32,512 35,750 42,209 2.94% 27,123 15,551 Attributable to: Shareholders of the Bank 37,586 30,360 32,472 35,661 42,115 2.89% 27,058 15,428 Non-controlling interests 8 40 89 94 65 123 24