#1AL AHLI BANK OF KUWAIT INVESTOR PRESENTATION Q1 2023 الأهلي авк#2DISCLAIMER . • • 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 analysis 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. 2#3TABLE OF CONTENTS SECTION 01 4 ABK Overview and Footprint SECTION 02 Operating Environment 13 SECTION 03 Strategy and Business Overview 17 SECTION 04 Financial Performance Highlights 29 SECTION 05 Appendix 32#4SECTION 01 ABK Overview and Footprint#5AL AHLI BANK OF KUWAIT ABK Overview ABK Egypt Subsidiary Acquired 2015 44 Branches 109 ATMs • • ABK Kuwait Parent Entity Established 1967 29 Branches Headquarters in Kuwait EGYPT LEASING CO SUBSIDIARY OF ABK-EGYPT EGYPT INVESTMENTS CO SUBSIDIARY OF ABK-EGYPT ABK UAE Established 1977 2 Branches 1 DIFC (Off-shore Banking with Category 1 License) ABK Capital Subsidiary ABK Cayman Island Limited Subsidiary 5#6ABK OVERVIEW ABK Overview & Background Established in 1967, by the Behbehani family, ABK has steadily become one of the leading Kuwaiti Banks retaining the same core shareholder base since its establishment Headquartered in Kuwait City, the Group has three subsidiaries: Ahli Capital Investment Company, Al Ahli Bank of Kuwait - Egypt and ABK Cayman Island Limited, a branch network in UAE including an off-shore banking branch in DIFC with Category 1 license. Provides a wide range of financial and banking services and products across all its markets which include, Corporate Banking, Retail Banking, Treasury & Investments Has a total of 76 branches in three countries: 29 in Kuwait, 2 full-service branches in Abu Dhabi and Dubai and 1 offshore banking branch in the Dubai International Financial Centre (DIFC), and 44 branches in Egypt. Strong and well-established access to market as witnessed by the issuances of USD500 million senior unsecured bond in Mar-17, USD300 million perpetual AT1 bond in Sep-18, KD50 million subordinated Tier II bond in Oct-21 and In 2022, successful closing of 37 month syndicated loan financing for USD 825 million. 9.5% 6.8% 9.8% Ownership Structure 5.0% 6.8% Others 11.2% Public Instituition for Social Security Behbehani Investment Ali Morad Yousaf Behbehani Behbehani General Trading Co 50.9% Heirs of Mohammed Saleh Yousef Behbehani Behbehani Financials 9#7OVERVIEW OF ABK'S AWARDS & RATINGS Credit Ratings & Outlook MOODY'S Last Affirmed | April-23 Long Term Rating | A2 Outlook | Stable BEST CREDIT CARD KUWAIT 2022 Fitch Ratings Last Affirmed | March-23 Long Term Rating | A Outlook | Stable International Finance Award Best Credit Card Award 2022 7#8ABK KEY FINANCIAL HIGHLIGHTS & SUMMARY FINANCIALS $ Self-funded balance sheet Customer Deposits: KD4.1bn Customer deposits / Total liabilities: 75% اس Stable operating performance Net Interest Margin: 2.0% Operating Profit / Average Assets: 1.4% Strong capital position Tier 1 Ratio: 13.2% CAR: 15.6% $ Robust asset quality with excess provisions Non-performing Loans Ratio: 1.5% Loan Loss Coverage Ratio: 365% Excess Provisions: KD 192mm High liquidity & stable funding Net Stable Funding Ratio: 108% Liquidity Coverage Ratio: 336% Solid investor demand & established market access In Sep-18, the Bank issued a USD300mm Tier 1 bond In Oct-21, the Bank issued a KD50mm Tier 2 bond In 2022, successful closing of 37month syndicated loan financing for USD 825mm, largest syndicated loan financing in ABK history which is evidence of the trust of world wide investors in ABK and its future outlook 8#9FINANCIAL SNAPSHOT (KD'Bn) 6 Net Loans & Advances 9 Total Assets 6.4 4.0 4.0 6.1 3.6 6 5.6 5.8 3.4 4.9 3.1 3 3 0 0 2020 2021 2022 Q1 2022 Q1 20231 2020 2021 2022 Q1 2022 Q1 2023 6 Customer Deposits 4.4 4.1 4.1 3.9 3.5 3 Total Equity 1 0.6 0.6 0.6 0.6 0.6 0 0 2020 2021 2022 Q1 2022 Q1 2023 2020 2021 2022 Q1 2022 Q1 2023 6#10FINANCIAL SNAPSHOT (KD'000) Total Operating Income Net Profit/ (Loss) 180 171.6 50 160 153.9 40 141.5 32.4 27.4 30 140 20 8.3 10.8 120 10 0 100 - -10 80 -20 60 -30 41.6 43.2 -40 40 -50 20 -60 0 2020 2021 2022 Q1 2022 Q1 2023 I -69.5 2020 2021 2022 I Q1 2022 Q1 2023 Non-Performing Loans Ratio (%) Loans to Deposits Ratio (%) 3 90 80 77.1 78.5 71.4 72.6 71.7 70 60 1.6 1.6 1.4 1.5 1.5 50 40 30 20 10 0 0 2020 2021 2022 Q1 2022 Q1 2023 2020 2021 2022 I Q1 2022 Q1 2023 L 10#113 FINANCIAL SNAPSHOT (KD'000) Net Interest Margin (%) Cost/Income Ratio Return on Average Equity (%) 15 55 50 48.1 49.0 48.5 46.6 47.2 12 2.4 2.3 2.3 45 2.2 2.0 40 35 30 25 20 15 10 5 -12 96 303697 6.1 5.0 4.1 3.9 -6 -9 2020 2021 2022 Q1 2022 Q1 2023 I 2020 2021 2022 Q1 2022 Q1 2023 I -13.9 2020 2021 2022 Q1 2022 Q1 2023 Tier 1 Ratio (%) Total Capital Adequacy Ratio (%) 21 21 18.3 18 18 17.3 17.7 16.1 15.8 15.2 15.6 15.6 15 13.3 15 13.2 12 12 9 6 6 6 3 3 0 0 2020 2021 2022 Q1 2022 Q1 2023 2020 2021 2022 I Q1 2022 Q1 2023 L = 11#12KEY HIGHLIGHTS पण S Stable funding base and good liquidity buffers • 75% of the total liabilities consist of customer deposits Liquidity coverage ratio and net stable funding ratio of 336% and 108% against regulatory requirement of 100% for each benchmark • Leverage of 8.1%, above the 3.0% required by the CBK Basel III leverage ratio $ Solid well-diversified revenue-generating capacity with high growth opportunities • Group's geographical Footprint supports revenue generation, loan distribution and deposit collection Group's international operations comprise the operations of its UAE branches and its ABK Egypt subsidiary contributing around 39% of operating income and 35% of assets • Consistent strategy in Kuwait along with risk managed opportunistic growth in regional markets including Egypt and UAE Robust capitalization, strong credit ratings along with a fortress balance sheet Recognized as a D-SIB with Tier 1 ratio of 13.2% and CAR of 15.6% • Well above the Tier 1 ratio and CAR levels of 11.0% and 13.0% respectively required as per the CBK's regulation • Maintained by strong internal capital generation with sound track record of profitability and solid revenue generating capacity Strong credit rating of A2 and A from Moody's and Fitch respectively Clearly defined group strategy and five-year transformational plan Group has clearly defined three strategic pillars and 10 strategic priority areas for the five years to 2026 • Scale and create value in its core business • Sustain and de-risk its business • Innovate and enable to support the other two strategic pillars Committed shareholder base and a well-experienced management team • Established in 1967 by the Behbehani family, ABK has retained the same core shareholder base since its establishment • Well-diversified shareholding base backing the long-term vision of the Bank • Has a strong and stable Board and a long-serving executive team with a proven track record in Kuwait Banking on a sustainable journey - strong performance across ESG indicators • Alignment with GRI, UN SDGS, New Kuwait Vision 2035, UAE Vision 2030, and the Egypt Vision 2030 • Select ESG Indicators include commitment to gender diversity (54% Females amongst new hires), focus on customers satisfaction (94% rating) improving work processes (Implementation RPAs), commitment to ethical business practice (zero incidents), investment in local procurement (83%), managing greenhouse gas emission, electric and water consumption 12 22#13SECTION 02 Operating Environment#14SNAPSHOT OF KUWAIT'S ECONOMY Key Economic Indicators (% Population 2023 Inflation Feb 2023 CBK Benchmark Rate 4.4 million 3.2% 4.0% Evolution of oil price and Kuwait's - average daily crude oil production Oil Price (USD/bl) 75.3 78.5 77.8 63.5 51.8 114.8 107.9 89.5 78.1 78.1 GCC GDP per capita (2023) (USD'000) 65 47 27 24 22 199 Qatar UAE Kuwait Bahrain KSA Oman Fiscal Oil price breakeven (April 2022) compared to other GCC countries (USD/bl) Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Average Crude Oil production (millions bbl/day) Sep-22 Dec-22 Mar-23 53 56 56 73 76 79 128 2.9 2.9 2.9 3.0 2.7 2.7 2.7 2.4 2.6 2.7 2.7 Kuwait Qatar Oman UAE KSA 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 F Bahrain 14 GDP per Capita Source: IHS Markit 2023#15SNAPSHOT OF KUWAIT BANKING SECTOR $ USD 142.5 Bn of local bank cash loans 12 foreign bank branches A 100% Principal Deposit Guarantee Law in effect % 三 Stringent Basel III requirements 23 Banks $ All banks are regulated by Central Bank of Kuwait % 5 local Islamic Banks 6 Conventional Banks % $ The banking sector is highly regulated by the CBK. Leading supervisory practices are in place to monitor interest rates charged, lending limits and concentrations, investment limits, liquidity, and capital adequacy Provisions required by CBK instructions have been more precautionary and higher than the ECL calculated under IFRS 9 according to CBK guidelines creating additional buffers in the banking system The government's financial strength reinforce both capacity and willingness to provide support to the banking sector Capital adequacy standards under the Basel III framework were implemented by CBK in June 2014 Guarantee on customer deposits held with local banks under the Deposits Guarantee Law 15#16PEER COMPARISON Loans & Advances (KD billions) الوطني NBK بنك الخليج ، GULF BANK 5.1 بنك برقان BURGAN BANK 4.2 الأهلي 4.0 авк Al-Tijari 2.4 Commercial Bank of Kuwait Net interest margin (%) الوطني NBK الأهالي авк بنك الخليج GULF BANK بنك برقان BURGAN BANK Al-Tijari Commercial Bank of Kuwait Note: All numbers are as of 31 Dec-2022 2.2% 2.2% 2.0% 2.3% 21.0 Customer Deposits (KD billions) الوطني NBK الأهلي авк 4.4 بنك الخليج . GULF BANK 4.2 بنك برقان BURGAN BANK 3.9 Al-Tijari Commercial Bank of Kuwait 2.3 Capital Adequacy Ratio (%) Al-Tijari Commercial Bank of Kuwait 2.3% ية الوطني NBK بنك برقان BURGAN BANK بنك الخليج لل GULF BANK الأهالي авк 20.2 17.8% 17.4% 16.8% 16.4% 15.6% 16#17SECTION 03 Strategy and Business Overview#18ABK: VISION, MISSION, & VALUES The Foundation of ABK's Strategy ABK's strategy supports our Vision and Mission across our values that define our holistic approach to each element of our organization from processes and product development to talent management and client service. CORE VALUES (S.I.T.E) Simplicity Ensure business activities and tasks are executed in an efficient and effective manner. MISSION To consistently provide experiences that simplify and enrich people's lives VISION Reimagining a Simpler Bank Integrity Being honest and showing a consistent and uncompromising adherence to ethical values. Transparency ($ Being open, straightforward, and unbiased in all our dealings. Excellence Always strive to exceed our customers and colleagues expectations. 18#19ABK'S STRATEGIC PRIORITY AREAS 01 Core business & risk areas Scale & Create Value $ Kuwait: Scale franchise in retail, private banking, and wholesale Egypt: Maintain growth momentum, continuous focus on risk UAE: Grow selectively; focus on diversification/synergy benefits Cross-group: Leverage synergies across network $ Sustain & De-Risk Risk strategy & appetite: Develop commensurate risk appetite enabling prudent growth across geographies, sectors & products Next-gen risk capabilities: Revamp risk processes & tools and leverage data & AA to enhance effectiveness and efficiency Efficient capital & liquidity mgmt.: Deploy efficient capital and funding supporting our growth ambitions 19#20ABK'S STRATEGIC PRIORITY AREAS 02 Core enablers areas: Innovate & Enable $ Digital & Advanced Analytics transformation: Implement comprehensive digital and AA roadmap focused on customer experience as well as efficiency gains Technology & operational excellence Build modern, agile, and secure IT function, unlock efficiencies through disciplined spend management and structural operating model shifts. Winning talent & culture: Maintain winning & performance culture, develop & retain talent (incl. digital talent), nurture future Kuwaiti leaders 20 20#21OVERVIEW OF ABK'S BUSINESS SEGEMENTS Breakdown by Operating Income S (S $ Commercial Banking A holistic range of credit and deposit services provided to corporate and institutional customers 13% 18% 32% 36% 43% 2020 50% 47% 48% 2021 2022 Q1 2022 47% Q1 2023 50% 37% 35% 16% 21% 7% KD 141.5 million KD 153.9 million KD 171.6 million KD 41.6 million KD 43.2 million ●Retail Banking Full set of retail banking products and services including loans, credit cards, deposits, and wealth management Treasury & Investment Breakdown by Assets (KD million) 6,293 5,933 5,517 12% 5,703 13% 14% 4,748 14% 30% 15% 25% 32% 35% Treasury services provided to customers and balance sheet management activities, including money market, derivatives and proprietary investment activities 30% 58% 62% 54% 55% 51% 2020 Retail Treasury 2021 2022 Q1 2022 Q1 2023 Commercial Banking 21#22COMMERCIAL & 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 Operating Income (KD million) 124 126 143 57% 57% 57% 40 33 Operations from the Group's Head Office in Kuwait is responsible for the Bank's relationship with major international banks and correspondent banks around the world, including 43% 43% 43% 53% 59% 41% 47% the Nostro and Vostro accounts for and within the Group 2020 2021 2022 Q1 2022 Q1 2023 Commercial Banking Retail Banking • The international banking division manages the Group's institutional and multi-national corporate loan portfolio through relationship managers Retail Banking Target additional growth through enhanced digital offerings & continued focus on simplicity Segment Assets (KD million) 4,418 3,323 3,610 • 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 Key Stats - Kuwait 4,436 3,849 83% 83% 79% 78% 77% • 29 branches, 147 ATMs & 3 ITMs (interactive teller machines) as of March-23 Key Stats - Egypt 23% 22% 17% 21% 17% • 44 branches and 109 ATMs across major cities as of March-23 2020 2021 2022 Q1 2022 Q1 2023 Commercial Banking Retail Banking 22 222#23TREASURY AND INVESTMENTS Treasury & Investment The Group's Treasury manages the Group's assets and liabilities and liquidity requirements under the supervision of the Asset and Liabilities Committee (ALCO) 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 government treasury bills and bonds to meet relevant regulatory requirements and to manage surplus domestic currency liquidity The Group's investment unit is responsible for managing the Group's proprietary portfolio with the objective of realizing income while minimizing the risk of default 1,425 Segment Assets (KD million) 1,904 1,876 1,854 1,497 2020 2021 2022 Q1 2022 Q1 2023 23#24INTERNATIONAL OPERATIONS The Group's International operations encompass the operations of its UAE branches & its ABK Egypt subsidiary contributing around 39% of operating income & 35% 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 Apr-18 and was granted the Category 1 license in Jan-22 Al Ahli Bank of Kuwait-Egypt • Acquired in Nov-15, since renamed Al Ahli Bank of Kuwait - Egypt • Provides revenue and asset diversification and an opportunity to leverage economic links between Kuwait and Egypt Operating Income (KD million) 68 62 56 18 17 2020 2021 2022 Q1 2022 Q1 2023 Total assets (KD million) 2,189 2,095 2,109 1,940 1,428 • Higher margins and growth rate potential in Egypt vis-à-vis Kuwait • 44 branches and 109 ATMS spread across major cities in Egypt as of March-2023 2020 2021 2022 Q1 2022 Q1 2023 24 24#25ABK SUSTAINABILITY FRAMEWORKS GRI COMIGOALS MSCI FTSE JUSTA ALYTICI S&P Global MORNINGSTAR لاوات النارية NEWKUN Main Reporting Framework Global Reporting Initiative A sustainability reporting standard widely used by various organizations around the world ⚫ It is composed of a set of universal standards (general disclosures), as well as topic- specific standard disclosures International Framework for Sustainability United Nations Sustainable Development Goals (SDGs) 17 goals which cover the following dimensions: Economy Environment Community Labor rights Equality International ESG Rating and Scoring • ESG ratings address information about companies that is not reported in standard annual reports • The rating agencies evaluate the ESG performance abased on industry scores • ESG ratings help investors gain a clear insight of the Environmental, Social and Governance-related risks and opportunities facing companies Kuwait Frameworks for Sustainability Kuwait National Development Plan (KNDP) • Global positioning High quality healthcare Creative human capital • Sustainable living environment . Developed infrastructure • Sustainable diversified economy Effective government administration 25 25#26ABK SUSTAINABILITY: 2021 REPORT HIGHLIGHTS Focused on Customers • • • 79.8% Customer Satisfaction Index (CSI) 11 branches provide special needs support 83% Net Promoter Score (NPS) Invested in Our People • • 32,803 total training hours provided 15.64 training hours per employee Invested in Digital Transformation KD 140,767,663 invested towards technology, digital transformation, and automation Sustainable Finance Projects Financed 2 major ESG-related projects Committed to Gender Diversity Total workforce: . • 61% male, 39% female • 31% women in management positions (12% increase from 2020) 13% women in executive positions (0% change) Dos Invested in Local Procurement 96% of all suppliers are local (15.66% increase from 83% in 2020) Reduced Electricity Consumption • 2% decrease in electricity consumption intensity & Monitored Water Consumption 88,725,552 liters 42,311 liters/employee 000 Dedicated to Our Community KD 201,932 total investment into Corporate Social Responsibility (CSR) and sponsorships Supported Community Economic Development • 867 Small and Medium-sized Enterprises (SMEs) clients KD 79,665,355 SME-specific loans sponsorships Measured our GHG Emissions • Total: 10,975 mtCO2e . Scope 1: 1,934 mtCO2e • Scope 2: 6,662 mtCO2e Scope 3: 2,418 mtCO2e • Total GHG emissions per employee: 5.2 mtCO2e For more information about our sustainable journey, please scan the below QR. code 26 26#27LOANS PORTFOLIO, FUNDING, AND LIQUIDITY Loan Portfolio (KD million) 4,039 4,019 3,602 3,387 3,117 Gross Maximum Exposure by Credit Risk 16% 17% 17% 20% 17% 15% Others 7.8% 7.4% 7.6% 7.7% 7.5% Provision of credit losses 1.57% 1.43% 1.55% 1.48% 1.45% Personal 20% 23% 25% Government and related entities Construction and real estate Banks and other institution Non performing loans ratio. Trading and Manufacturing 2020 2021 2022 Q1 2022 Q1 2023 I I 18% 15% 15% 13% 17% 17% 13% 11% 11% 2020 2021 2022 Funding Profile (KD million) Maturity Profile for Liabilities 6,271 5,890 5,490 596 5,672 301 578 614 4,715 610 302 201 953 201 591 793 883 31% Equity 766 33% 151 38% 487 Medium Terms Notes FY 2020 FY 2021 Due to Bank & Other Financial Insituation Customer Deposit 4,421 | 3,913 4,064 4,127 3,486 36% 32% 21% 30% 38% FY 2022 2020 2021 2022 Q1 2022 Q1 2023 | less then one month one month to one year over one year 44% 27 22#28ASSET QUALITY OVERVIEW Non-Performing Loan Ratio (%) Stage-wise Breakdown of Gross Loans (KD million, %) 4,324 3,633 1.6% 62 235 1.5% 5.4% 52 3,340 328 1.6% 9.8% 56 296 8.1% 1.60 1.50 1.40 1.48 1.45 2020 2021 2022 Q1 2002 Q1 2023 Loan Loss Coverage Ratio and Excess Provisions (%) 339% 357% 366% 368% 365% 186% 220% 224% 232% 220% 2020 2021 Loan Loss Coverage Ratio Excess Provisions1 2022 Q1 2002 Q1 2023 4,027 3,281 93.1% 2,960 90.3% 88.6% 2020 2021 2022 Stage 3 Stage 2 Stage 1 Expected credit losses on credit facilities determined under IFRS 9 according to the CBK guidelines amounted to KD127.1mm, which is KD191.7 lower than the provision of KD318.8mm for credit losses under CBK Instructions Impairment of credit facilities are recognized at higher of ECL on credit facilities under IFRS9 according to CBK guidelines or the provisions required by CBK instructions relating to classification of credit facilities and calculation of provisions 28#29SECTION 04 Financial & Performance Highlights#30OPERATING PERFORMANCE Operating Income (KD million) & Cost to Income (%) Breakdown of Operating Income 48.1% 46.6% 49.0% 47.2% 172 154 142 48.5% 7% 8% 8% 12% 8% 18% 19% 19% 18% 19% 42 43 74% 73% 73% 74% 69% 2020 2021 2022 Q1 2022 Q1 2023 2020 2021 Other Income C/I Ratio (%) Operating Income (KD Mn) Net Fee and Commission Income Operating Profit / Average Assets (%) 1.6% 1.5% 1.5% 1.5% 1.4% Net Interest Income Return on Average Equity (%) 2022 Q1 2022 Q1 2023 6.1% 4.1% 5.0% 3.9% -13.9% 2020 2021 2022 Q1 2022 Q1 2023 2020 2021 2022 Q1 2022 Q1 2023 30#31CAPITALISATION OVERVIEW Tier 1 Ratio and Capital Adequacy Ratio (%) Regulatory Capital (KD) 692 633 95 44 682 689 668 103 97 102 18.3% 17.7% 17.3% 15.6% 15.6% 589 597 579 592 568 16.1% 15.8% 15.2% 13.3% 13.2% 2020 2021 2022 Total Capital Adequacy Ratio (%) Q1 2022 Tier 1 ratio (%) Q1 2023 2020 2021 2022 Q1 2022 Q1 2023 Tier 2 Capital Tier 1 Capital Net Stable Funding Ratio and Liquidity Coverage Ratio Key Central Bank of Kuwait Regulations & Requirements 329% 272% 441% 225% Common Equity Tier 1 9.50% 336% Tier 1 Capital Ratio 11% Capital Adequacy Ratio 13% D-SIB surcharge 0.50% 112% 113% 113% 108% 108% 2020 2021 2022 Q1 2022 Q1 2023 Liquidity Coverage Ratio Net Stable Funding Ratio Net Stable Funding Ratio Equal to at least 100% on an ongoing basis effective from 1st January 2018 Liquidity Coverage Ratio Loan to Deposit Ratio Investment Limits Minimum of 100% Capped at 90% Total ratio of securities portfolio excluding government bonds shouldn't exceed 50% of bank's capital base 31#32Appendix#33BALANCE SHEET Based on consolidated IFRS financials KD'000 Assets Cash and balances with banks Kuwait Government Treasury bonds Central Bank of Kuwait bonds Loans and advances Investment Securities Investment in Associate Premises and equipment Intangible Assets Other assets 2020 2021 2022 31-Mar-2022 31-Mar-2023 912,266 1,147,795 1,138,750 1,051,212 770,101 63,500 54,500 20,500 38,500 20,500 138,617 139,101 167,884 139,682 170,990 3,117,095 3,387,000 4,038,940 3,601,880 4,018,968 403,988 653,482 797,363 733,731 827,260 25,323 26,952 29,376 27,639 28,769 62,877 60,275 56,706 60,331 54,185 18,538 17,960 11,406 17,854 9,069 109,615 140,273 161,175 150,174 161,372 4,851,819 5,627,338 6,422,100 5,821,003 6,061,214 Total Assets Liabilities and shareholders' equity Liabilities Due to banks and other financial institutions 486,974 765,617 952,959 792,895 883,192 Customer's deposits 3,485,545 3,913,337 4,421,247 4,064,428 4,127,144 Medium-term borrowings 151,461 200,636 302,218 201,393 302,449 Other liabilities 136,856 137,463 149,685 148,148 170,107 Total liabilities 4,260,836 5,017,053 5,826,109 5,206,864 5,482,892 Shareholders' equity Share Capital 161,917 170,012 178,513 170,012 178,513 Share premium 108,897 108,897 108,897 108,897 108,897 Treasury shares (5,135) (5,135) (5,135) (5,135) (5,135) Reserves 233,247 244,286 221,827 248,101 204,238 Equity attributable to shareholders of the Bank 498,926 518,060 504,102 521,875 486,513 Perpetual Tier 1 Capital Securities 90,750 90,750 90,750 90,750 90,750 Non-controlling interests 1,307 1,475 1,139 1,514 1,059 Total equity 590,983 610,285 Total liabilities and shareholders' equity 4,851,819 5,627,338 595,991 6,422,100 614,139 578,322 5,821,003 6,061,214 33#34INCOME STATEMENT Based on consolidated KD'000 Interest income Interest expense Net Interest Income 2020 2021 2022 31-Mar-2022 31-Mar-2023 205,105 202,033 269,327 55,488 95,816 (99,654) (89,538) (143,950) (27,001) (63,983) 105,451 112,495 125,377 28,487 31,833 Fees and commissions 25,795 28,742 32,519 7,771 7,941 Net gains from dealing in foreign currencies 5,911 4,343 4,289 1,621 1,187 Gain/ (Loss) on sale of investments 427 2,049 1,907 1,084 37 IFRS financials Dividend income 1,445 1,072 1,638 1,056 921 Share of results of associates Other income Operating Income Staff expenses Other operating expenses Depreciation and amortisation Operating expenses 1,973 2,427 3,382 687 592 462 2,735 2,455 863 673 141,464 153,863 171,567 41,569 43,184 (35,606) (38,855) (45,830) (10,992) (11,232) (25,464) (26,140) (28,121) (7,335) (8,227) (6,938) (6,738) (7,110) (2,039) (1,474) (68,008) (71,733) (81,061) (20,366) (20,933) 73,456 82,130 90,506 21,203 22,251 Operating profit for the year Provision On credit Facilities (136,461) (45,400) (46,969) (9,747) (9,595) Net (impairment)/release on investment securities (22) (350) (459) (165) (211) and others Profit /(loss) for the year (63,027) 36,380 43,078 11,291 12,445 Directors' fee (570) (760) Taxation (6,482) (8,415) (9,940) (2,932) (1,598) Net Profit/(loss) for the year (69,509) 27,395 32,378 8,359 10,847 Attributable to: Shareholders of the Bank (69,684) Non controlling Interest 175 EPS (fils) -45 27,212 32,291 183 87 12 14 8,321 10,780 38 67 3 4 34#35ABK REPORTS Annual Report 2022 The Beginning of a Journey of Transformation الأهلي авк 2022 SUSTAINABILITY REPORT الأهلي авк 35#36☑ in Al Ahli Bank of Kuwait O @abk_kuwait Ahlan Ahli 1 899 899 | eahli.com Investor Relations: [email protected] +965 2240 0900 Ext. 6704 الأهلي авк