#1INVESTOR PRESENTATION February 2020 Simpler Banking KUWAIT EGYPT UAE الأهلي авк 2#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#4Al Ahli Bank of Kuwait ("ABK") Overview الأهلي авк Overview of Al Ahli Bank of Kuwait Established on 23rd May 1967, Al Ahli Bank of Kuwait K.S.C.P. ("ABK", 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", it operates 42 full service branches in Egypt ►DIFC Branch opened in April 2018 ► Signed a Sale & Purchase Agreement in Jan 2020 with Bank & Clients PLC (B&C) which is a licensed and registered Bank in UK, for a full acquisition. The acquisition is subject to the approvals of the regulatory authorities in Kuwait & UK ► 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) The Bank's Credit Ratings USD million (1) Net Loans & Advances Total Assets Customer Deposits Consolidated IFRS Financials 2014 2015 2016 2017 2018 2019 CAGR 8,273 10,040 9,898 10,189 9,977 10,614 5.1% 11,950 14,363 14,000 14,452 14,995 16,116 6.2% Total Equity 6,620 8,225 9,475 9,739 10,267 1,907 1,831 1,816 1,895 2,230 10,957 10.6% 2,281 3.6% Total Operating Income 402 423 482 520 557 569 7.2% Net Profit 128 100 106 118 139 95 -5.8% Non performing loans ratio (%) 2.5 2.3 2.6 1.7 1.8 1.5 Loans to Deposits ratio (%) 84.6 82.5 83.3 83.4 79.0 80.8 Cost/income ratio 29.8 32.0 39.4 37.7 38.6 38.9 Return on average equity 6.8 5.5 5.8 6.3 7.3 3.7 22.7 16.0 16.5 16.0 17.9 17.5 Total Capital Adequacy ratio (%) 23.7 17.2 17.7 17.2 19.2 18.6 Tier 1 ratio (%) 44.8% Rating Agency Last affirmed Long Term Rating Outlook Ownership Structure (as at 31st December 2019) 10.1% 9.5% Kuwait Investment Co. Behbehani Telecommunications Co. Wafra International Investments Co. Behbehani Investment Co. (direct and indirect) MOODY'S Fitch Ratings Dec 2019 A2 Stable Sept 2019 A+ Stable Note: KD/USD Rates for 2014, 2015, 2016, 2017, 2018 and 2019 respectively - 0.2928, 0.3035, 0.3060, 0.3018, 0.3033,0.3030 9.1% Ali Murad Yousuf Behbehani 8.8% Heirs of Mohamed Saleh Yousuf Behbehani Watani Investment Co 6.3% 6.4% Others 5.0%#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 79% of the total liabilities consist of customer deposits Liquidity coverage ratio 315% & Net Stable Funding Ratio of 108% Leverage of 12%, above the 3% required by the CBK Basel III leverage ratio • • • • • • • • الأهلي авк Strong Profitability & sound asset quality 2% Growth in Operating Income 2 Total Assets reached KD 4.9 billion, up 7% from Dec 2018 Customer Deposits at KD 3.3 billon, up 7% from Dec 2018 NPL ratio at 1.46% and provision coverage at 365% Excess credit provisions of KD 77.2 million over and above CBK prescribed IFRS 9 requirements Pre-provision income to average asset ratio at 2.24% One of the highest NIM's among all conventional banks in Kuwait Second best rated conventional bank in Kuwait Robust capitalization & strong balance sheet Committed shareholder base and a well-experienced management team Tier 1 ratio of 17.5% & CAR of 18.6% 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 (2019E) Oil Revenues as % of GDP (2019 E) Oil Reserves (2018) Key Economic Indicators 4.4 million USD 130 billion / KD 40 billion الأهلي авк 2 Rating Outlook STANDARD 44.7% AA Stable & POOR'S 5th largest in the world at 101.5bn barrels; more than 8% of the world's total oil Fitch Ratings AA Stable reserve 14.4% MOODY'S Aa2 Stable Public Debt/GDP (2019E) Sovereign Wealth Fund AUM USD 592 billion Stable Production, amongst the top 10 globally 2.9 2.9 2.9 3.0 2.7 2.7 2013 2014 2015 2016 2017 2018 Average Crude Oil production (millions bbl/day) Current Account Balance (USD billions) 7.60 Kuwait 22.00 13.80 -5.10 2016 2017 2018 (P) 2019 (P) Source: (1) Public Authority for Civil Information (2) Kuwait Central Statistical Bureau (3) Rating agencies (4) Organization for petroleum Exporting countries (5) Sovereign Wealth Fund Institute 7#8Overview of Kuwait Banking Sector الأهلي авк 23 6 Conventional Banks 5 local Islamic Banks Stringent All banks regulated by the Central Basel III requirements Bank of Kuwait 23 Banks 12 Kuwaiti banking sector snapshot foreign bank branches 100%(2) Principal Deposit Guarantee Law in effect USD 234bn(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 = 0.3030 as of 31 December 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 8#9Peer Comparison A well established Kuwaiti Bank الوطني NBK BURGAN BANK بنك الخليج GULF BANK الأهلي авк Al-Tijari Commercial Bank of الوطني NBK Total Assets (USD billions) 22.2 20.2 15.9 15.5 Customer Deposits (USD billions) BURGAN BANK 13.0 بنك الخليج GULF BANK ABK Al-Tijari Commercial Bank of Euwat 7.9 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 BURGAN BANK بنك الخليج الى GULF BANK الأهلى авк Al-Tijari Commercial land of الاهلي авк * Al-Tijari Commercial bank of Kuwa BURGAN BANK بنك الخليج . GULF BANK ية الوطني NBK الأهلي авк 2 Loans and Advances (USD billions) 7.4 10.5 13.9 13.6 Capital Adequacy Ratio 16.6% 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 الأهلي авк 2 Page # 4 7 11 Section 4 Financial Performance Section 5 Appendix 10 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 Retail Banking Treasury & Investment comprises a full range of credit, deposit and related banking services provided to its corporate and institutional customers comprises a full range of products and services to retail customers, including loans, credit cards, deposits and wealth management services الأهلي авк Breakdown by Operating Income FY 2018 9% FY 2019 7% 36% 55% 37% 56% KD 168.8 million KD 172.5 million Breakdown by Assets 1,2 (KD million) 4,795 4,477 4,280 4,215 4,281 29% 24% 23% 25% 29% 12% 13% 14% 15% 15% provided to 64% 64% 61% 56% 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 2 2015 2016 2017 2018 2019 ■Commercial banking ■Retail banking Treasury & Investments Note: (1) (2) 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 & 2019 respectively - KD 79 million, KD 70 million, KD 80 million, KD 71 million & KD 88 million respectively 12#13Commercial & Retail Banking الأهلي авк 2 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 Operating Income¹ (KD million) ■Commercial banking ■Retail banking 160 153 146 144 116 34% 39% 40% 37% 30% 60% 70% 66% 63% 61% 2015 2016 2017 2018 2019 • Target additional growth through acquisition of retail portfolios, enhanced digital offerings & continued focus on simplicity 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 Key Stats - Kuwait ■Commercial banking ■Retail banking 31 branches, 160 ATMs & 3 ITMs (interactive teller machines) as of 31 December 2019 3,379 3,235 3,247 3,193 3,187 • 165,290 Retail Banking customers as of 31 December 2019 16% 17% 21% 19% 21% • 166,665 active cards in circulation with a total spend of KD 957mn in 2019 • 96,614 registered SMS and mobile application banking customers • 317,695 transaction executed for such subscribers during 2019 84% 83% 81% 79% 79% • 2,35,183 telebanking calls in 2019 • 41-member direct sales force in Kuwait Key Stats - Egypt • 42 branches and 108 ATMs across major cities as of 31 December 2019 2015 2016 2017 2018 2019 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 2 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) 1,416 1,290 1,046 1,089 969 2015 2016 2017 2018 2019 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 31 December 2019, Ahli Capital had KD 537 million of 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 around 30% of Operating income and 25% 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 15 الأهلي авк 2 Operating Income¹ (KD million) 49 49 37 39 32 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 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 31 December 2019 Over 176,000 retail customers as of 31 December 2019 • Retail Banking accounts for 36% of total deposits and 31% of total loans as of 31 December 2019 1,168 1,013 • Corporate Banking accounts for 64% of total deposits and 69% of total loans as of 31 December 2019 835 875 909 • Assets attributable to ABK Egypt constituted 14.5% of the Group's total assets as of 31 December 2019 2015 2016 2017 2018 2019 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 Introduction to ABK & Key Highlights Kuwait Country and Banking Snapshot الأهلي авк 2 Page # 4 7 Section 3 ABK Strategy and Business Overview Section 4 Financial Performance Section 5 Appendix 16 11 17 21#17Loans portfolio, Funding and Liquidity Note: (1) (2) Loan Growth (KD million) الأهلي авк 2 Gross Maximum Exposure by Credit Risk¹ (as at 31 December 2019) FY 2018 7.8% 7.1% 6.5% 6.8% 6.2% 16% 18% FY 2019 16% 18% 5.9% CAGR 7.1% 509 536 363 2,059 2,538 2,493 587 2,488 627 672 12% 13% 16% 19% 2,399 2,544 ◆ 2.45% 2.28% 2.55% 1.67% 1.78% 1.46% 15% 20% 18% 19% 2014 2015 2016 2017 2018 2019 Corporate and Banks ◆ Non Performing Loans Ratio Funding Profile (KD million) Personal Retail ■Provision for credit losses Construction and real estate Trading and manufacturing Government and related entities Banks and financial institutions Others Maturity Profile for Liabilities 4,761 4,443 FY 2018 FY 2019 4,251 4,190 4,258 690 3,420 556 555 572 676 151 150 151 600 558 1,199 735 596 501 24% 25% 31% 30% 924 2,496 2,900 2,939 3,115 3,320 1,938 2014 45% 2015 2016 2017 2018 2019 Customer Deposits Medium term notes Due to banks and other financial institutions Equity 2 I Less than one month One month to one year Over one year 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 45% 17#18Operating Performance Operating Income (KD million) & Cost to Income (%) الأهلي авк Breakdown of Operating Income 39.4% 37.7% 38.6% 38.9% 32.0% 29.8% 9% 11% 5% 10% 18% 20% 7% 21% 19% 8% 20% 20% 147.5 157.0 168.8 172.5 117.6 128.5 72% 73% 74% 72% 71% 71% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 Operating income Cost to income ratio (%) Net interest income Other income¹ Profitability (KD million) 32.0% 25.0% 23.6% 22.0% 22.7% 2018 2019 Net fee and commission income Operating metrics (%) 6.8% 6.3% 5.8% 5.5% 7.3% 16.6% 3.7% 42.1 37.6 30.4 32.5 35.7 28.7 1.10% 0.80% 0.80% 0.82% 0.95% 0.47% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Net profit Net profit margin ROAA ROAE Note: (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 2 Regulatory Capital (KD, million) 705 683 43 45 45 19.2% 600 576 18.6% 562 17.7% 17.2% 17.2% 546 40 550 660 17.5% 38 640 17.9% 38 16.0% 16.0% 16.5% 500 13.5% 13.5% 13.5% 535 13.0% 524 508 12.5% 450 2015 2016 2017 2018 2019 11.5% 11.0% 11.5% 11.5% 10.5% Tier 1 ■Tier 2 capital 2015 2016 2017 2018 2019 Min Required Tier 1 -Min. Required CAR* 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 excluding government bonds shouldn't exceed 50% of bank's capital base 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 الأهلي авк 2 Page # 4 7 11 Section 4 Financial Performance Section 5 Appendix 20 17 21#21Awards and Accolades الأهلي авк 2 Business 'Bank of the Year' by Arabian Business for four consecutive years INTERNATIONAL! FINANCE 'Best Digital Transformation 2019' by International Finance Magazine Banker 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 The Banker DEALS OF THE YEAR 2019 'Deal of the Year Asian Banking & Finance - 2019 TheBanker Awards 2016 EUROMONEY 2016 'Deal of the Year' 2017 & 2019 by The Banker - an FT Affiliate 'Best Bank Transformation in the Middle East' by Euromoney THE ASIAN BANKER naseba BANK AWARD GIORANCE INTERNATIONAL! 'Best Retail Bank in Kuwait' by Asian Banker for three consecutive years 'Employer of the Year' by NASEBA for three consecutive years One of the top 10 safest banks in Middle East by Global Finance for two consecutive years FINANCE 'Most Innovative Bank in Egypt 2018' and 'Fastest Growing Bank in Egypt 2018 & 2019' by International Finance Magazine THE ASIAN BANKER телок камлитавана намек заисковет 'Best Digital Transformation' by Asian Banker EUROPEAN 'Most innovative bank in Egypt' by The European' a Thomson Reuters Affiliate ' Best Retail Bank' by The European a EUROPEAN Thomson Reuters Affiliate for two Global Business Outlook INTERNATIONAL consecutive years Best Mobile Banking - Kuwait 2018 Fastest Growing Bank - Egypt' by International Finance Magazine 21#22Balance Sheet Based on consolidated IFRS financials الأهلي авк 2 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 (KD, 000) CAGR (%) Assets Cash and balances with banks 144,825 432,173 494,678 495,519 702,233 883,129 43.56% Kuwait Government treasury bonds 279,831 204,246 223,142 344,590 257,161 173,235 -9.15% Central Bank of Kuwait bonds 221,228 179,713 173,715 125,595 127,646 136,621 -9.19% Loans and advances 2,422,297 3,047,143 3,029,384 3,075,065 3,025,992 3,215,696 5.83% Investment securities Investment in an associate Premises and equipment Intangible assets Other assets 345,011 343,809 237,905 182,545 289,917 302,165 -2.62% 14,865 16,572 18,263 19,556 21,896 23,830 9.90% 33,826 53,125 46,695 53,675 55,710 65,615 14.17% 41,217 17,698 17,294 16,865 18,340 n.m* 37,156 41,066 43,333 47,887 51,008 64,464 11.65% 3,499,039 4,359,064 4,284,813 4,361,726 4,548,428 4,883,095 6.89% Total assets Liabilities and shareholders' equity Liabilities Due to banks and other financial institutions 923,752 1,199,192 734,771 596,444 501,134 600,057 -8.27% Customers' deposits 1,938,297 2,496,278 2,899,908 Medium-term borrowing 2,939,349 149,712 3,114,504 3,319,771 11.36% 150,612 151,230 Other liabilities 78,642 107,135 Total liabilities Share capital 2,940,691 3,802,605 94,331 3,729,010 103,482 105,813 121,076 9.01% 3,788,987 3,872,063 4,192,134 7.35% Shareholders' equity 161,917 161,917 161,917 161,917 161,917 161,917 0.00% Share premium 108,897 108,897 108,897 108,897 108,897 108,897 0.00% Treasury shares (2,303) (4,528) (4,958) (5,053) (5,053) (5,135) 17.39% Reserves 289,837 289,314 289,301 306,249 319,042 333,435 2.84% Equity attributable to shareholders of the Bank 558,348 555,600 555,157 572,010 584,803 599,114 1.42% Perpetual Tier 1 Capital Securities 90,750 90,750 Non-controlling interests Total equity 558,348 Total liabilities and shareholders' equity 3,499,039 859 556,459 4,359,064 646 555,803 4,284,813 729 572,739 4,361,726 812 1,097 676,365 4,548,428 690,961 4,883,095 4.35% 6.89% *Not measurable 22#23Income Statement Based on consolidated IFRS financials الأهلي авк 23 2014 2015 2016 2017 2018 2019 CAGR (KD, 000) % Interest income 111,829 127,003 179,408 188,965 221,067 247,889 17.26% Interest expense (27,469) (32,610) (70,222) (76,533) (99,285) (120,258) 34.36% Net interest income 84,360 94,393 109,186 112,432 121,782 127,631 8.63% Net fee and commission income 22,030 25,228 30,317 29,047 31,148 32,387 8.01% Net foreign exchange gain 2,973 3,134 3,970 4,625 5,053 4,910 10.55% Net (loss)/gain on investment securities 1,860 (1,008) (2,549) 4,943 3,922 2,103 2.49% Dividend income 2,671 3,478 2,162 1,999 2,614 1,739 -8.22% Share of results of associate 1,976 2,506 2,571 2,173 3,220 2,894 7.93% Other income 1,740 801 1,860 1,773 1,076 840 -13.55% Operating income 117,610 128,532 147,517 156,992 168,815 172,504 7.96% Staff expenses Other operating expenses Depreciation and amortisation Operating expenses (22,181) (25,608) (34,236) (34,161) (35,327) (37,222) 10.91% (11,524) (13,849) (19,435) (21,182) (24,882) (22,582) 14.40% (1,366) (1,729) (4,417) (3,835) (4,932) (7,219) 39.51% (35,071) (41,186) (58,088) (59,178) (65,141) (67,023) 13.83% 82,539 87,346 89,429 97,814 103,674 105,481 5.03% 8,005 Operating profit for the year Net gain from business combination Provisions on Credit Facilities (41,800) (58,679) (50,813) (57,522) (56,261) (71,134) 11.22% Net (impairment)/release on investment securities (581) (2,750) (1,626) (431) 82 and others (507) -2.69% Profit for the year 40,158 33,922 36,990 39,861 47,495 33,840 -3.37% Directors' fees (360) (480) (375) (495) (593) (395) 1.87% Taxation (2,212) (3,074) (4,103) (3,616) (4,693) (4,620) 15.87% Net profit for the year 37,586 30,368 32,512 35,750 42,209 28,825 -5.17% Attributable to: Shareholders of the Bank 37,586 30,360 32,472 35,661 42,115 28,678 -5.27% Non-controlling interests 8 40 89 94 147 23