#1AMERIABANK P 30-June-2020 A AMERIABANK INVESTOR PRESENTATION Available on the iPhone f t in App Store งง#2Λ Ameriabank at a Glance 2020 Q2 Snapshot 2020 Q2 Financial Results Strategy Highlights Appendices Content 1#3Λ Overview The Leading Bank in Armenia The largest universal bank in Armenia, offering corporate, investment and retail banking services. 1st in the market by key financial indicators: assets, liabilities and equity Major contributor to Armenian banking sector development Ongoing appreciation and quality recognitions by reputable global institutions Highest possible credit ratings within current sovereign rating constraints. Assets 14.8% Loans 15.8% Liabilities 15.3% Equity 11.9% Net Profit 11.3% Ratings Ameriabank Market Share S&P Long-term B+ Ownership structure EBRD 17.76% Short-term B Outlook stable SACP bb- 19 Branches 1083 Employees 45 Terminals Imast Group (CY) Ltd* 48.95% ESPS Holding Ltd 11.83% Moody's Bank Deposits (LC) Ba3/NP Bank Deposits (FC) B1/NP BCA ba3 146 CRA Ba3(cr)/NP ATMs Outlook stable 2847 POS Terminals 515 Virtual POS Terminals Afeyan Foundation for Armenia Inc. 7.53% ADB 13.94% Ameria Group (CY) Ltd was renamed to Imast Group (CY) Ltd 2#4Λ Investment Highlights Stable and resilient emerging economy, with high GDP growth, low inflation and stable exchange rates The Leading Bank in Armenia 1st in the market by key financial indicators since 2015 Omni channel Distribution Platform with Focus on Digital 88% offloading ratio Attractive Macro Fundamentals Best practice corporate governance system and principles, professional and experienced management team Strong Team and Corporate Culture Superior customer service, proven leadership not only by financials but also by culture and values Innovator and Trend Setter 3#5Λ Ameriabank at a Glance 2020 Q2 Snapshot 2020 Q2 Financial Results Strategy Highlights Appendices Content 4#6Λ Assets of AMD 885 B Liabilities of AMD 780 B 2020 Q2 Achievements 1st 2nd 226 a leader Loans* of AMD 597 B per 2020 Q2 results 2nd Equity of AMD 106 B 1st Profit of AMD 4.6 B 3rd S&P re-affirms Ameriabank's 'B+' Rating with Stable Outlook. Moody's re-affirmed Ameriabank's Ba3 long-term local currency deposit rating with a stable outlook. The offloading ratio reached 88% with online banking penetration rate of 43%. S&P Global Ratings MOODY'S Board renewal with three new Independent NEDS joining the Board - Kaha Kiknavelidze, Richard Ogdon and Tigran Davtyan; replacing Resigning Board members - Ruben Vardanyan, Noubar Afeyan and Pierre Gurdjian. * net of impairment allowances and including TF 5#7Λ COVID-19 in Armenia . · First registered case of COVID-19 in Armenia on March 1. State of Emergency declared on March 16, with almost total lockdown and closure of all non-essential business. Gradual lift of restrictions starting from May 1, with almost all business activities restored as of June 1, with the exception of the services that imply large gatherings (cinema, theatre, museums, schools, etc). Public transport and public kindergartens now fully operational with certain restrictions and strict control. Stricter social distancing and limitations rules enforced starting from May 18, as COVID-19 registered cases started to surge after mid May. COVID-19 cases reached the peak in the end of June with slow down of infection rates starting from July. Government Response The Government has presented its anti-crisis program that will be not only supporting both businesses and households to survive the crises, but will also ensure competitiveness of the post- crises economy. The first anti-crises package has been introduced for AMD 150bn+ (2.3% of GDP) which includes nine support to business programs, mostly to SMEs and companies from the sectors that are hit harder, and thirteen social support and allowance programs. Central Bank of Armenia Response • The refinancing rate was cut by 50 bps reaching 4.5%. Basel III related additional buffers requirements are postponed till 2021 and thresholds for the CAR are reduced (Tier 1 threshold reduced from 10% to 9%). Basel III related liquidity requirements - LCR & NSFR, are postponed till Jan 1, 2021 too. • Banks are offered an unlimited repo window and 2 to 6 month FX swap operations.#8Λ Ameriabank COVID-19 Response Within it comprehensive Business Continuity Plan (BCP) Ameriabank took a number of steps and pre-cautionary actions in order to ensure safety of both employees and clients, continuity of operations and mitigate operational and financial risks. We follow strict social distancing rules within the team and when interacting with clients, with physical split of working desks, only online meetings and certain rules of conduct in the office. 70% of non-client facing staff and 40% of client facing staff have been working remotely from home since March. We implement bi-weekly shifts for the teams that cannot shift fully to remote work. Considering the expected impact on our borrowers, we have granted grace period on principal and interest payments to all retail clients and to those corporate clients who operate in the hardest hit sectors (HORECA, transportation, etc.) We have tightened risk parameters, have been working on cost-cutting and are keeping excessive liquidity and capital adequacy buffers to secure our resilience in the currently unfolding situation. HER BUNK 312 A AMER 12#9Λ Ameriabank at a Glance 2020 Q2 Snapshot 2020 Q2 Financial Results Strategy Highlights Appendices Content 8#10bln AMD bln AMD Λ 543 Loan portfolio 6.5% 578 1.1% 584 120 178 205 48% 15% Loans to 422 -5% -5% 400 379 2018 2019 2Q2020 Corporate loans ■Retail loans Deposit & bonds 44% -15% 643 50 445 255 46 33% 191 63% 338 208 2018 2019 547 60.2 259 ཧོ། ནྟི། -33% 228 2Q2020 ■Demand deposits Time deposits Bonds in local market bln AMD corporates 49% Loan portfolio breakdown Corporate deposits & bonds 69% 330 3 82 -33% 221 195 8 3 57 43% 1% 83 245 82% 134 11 -47% 130 Core Business Loans to individuals and SME 51% ■ HIGHLIGHTS Increased share of retail and SME loans (51%) in line with the Bank's strategy to move to more universal banking model. The latter also explains 15% growth of Retail lending with slightly decreasing corporate loan book. 44% increase as of Q4 2019 and 15% decrease in 2Q2020 of total deposits and bonds portfolio is mainly due seasonality. Time deposit portfolio of both Corporate and Retail slightly increased despite COVID-19 economic impact. ■ Leading the local corporate bond market with 23% market share. bln AMD Retail deposits & bonds 26% 3% 306 317 39 43.0 244 36 173 176 29% 2% 134 27% 4% 93 97 74 2018 2019 2Q2020 2018 2019 2Q2020 ■Demand deposits ■Time deposits Bonds in local market ■Demand deposits Time deposits Bonds in local market#11bln AMD Λ 24% Assets -9% 968 885 780 2018 2019 2Q2020 bln AMD Asset and Liabilities Structure Liabilities and equity 24% -9% 780 968 101 885 106 90 13% 4% 867 780 690 26% -10% 2018 ■TOTAL LIABILITIES 2019 2Q2020 ■ EQUITY Loan portfolio structure by sector Power Structure of assets Real estate Communication 4% 6% Retail trade generation 5% Food and services 1% Manufacturing Other assets 4% Cash and cash equivalent 17% 1% beverage 6% Agriculture, forestry and timber 3% Construction 6% Hotel service. 6% Mining/Metallurgy Transportation Securities 7% 6% Time deposits 33% Other 2% Interbank loans and REPO 5% Loans to retail customers 30% Loans to customers 67% 5% Finance and investment Wholesale 1% trade 18% HIGHLIGHTS 10% YoY decrease in liabilities is due to seasonal outflow of some corporate accounts. Diversified balance-sheet structure with 79% interest earning assets to total assets and 70% customer funds to total liabilities. ■ Maintaining exceptional sectorial diversification of loan portfolio, with balanced exposure to all industries. Structure of liabilities Loans from IFIs 20% Demand deposits 29% Loans from Government 2% Bonds .8% Subordinated debt 5% Other liabilities 2% Deposits and balances from banks 1% 10#12bln AMD Λ Corporate loans 422 76 -5% 400 -5% 379 78 90 347 322 2% 16% 289 -7% -10% 2018 ■Large loans 2019 2Q2020 ■SME loans (Medium business) bln AMD 48% bln AMD Retail loans 178 Corporate and Retail Banking Trade finance and Leasing 2% 17% 21 22 8.2 2.3 5.9 157% 38% 10.7 11.3 0% 10.7 6% 8 -39% 17% 5 6 2018 Balance sheet LC 2019 ■Factoring 15% 205 74.9 120 72.8 27% 3% 32.0 57.5 26.8 51% 19% 17.8 98.6 75% 78.4 26% 44.8 2018 2019 2Q2020 ■Mortgages Retail business loans Consumer loans 25 2Q2020 ■Finance lease HIGHLIGHTS Retail loan portfolio registered robust growth of 15% YoY, with growth registered by all retail loan products. Trade Finance and Leasing portfolio recorded 17% growth with significant growth in all product portfolios. Large loans portfolio decreased by 10% YtD mainly due to limitations on large corporate lending, in line with the Bank's strategy to move to more universal banking model, while SME loans portfolio grew by 16% AMD 379 b corporate loans AMD 205b retail loans 11#13Λ 3.3% NPL (Stage 3) 2.9% 4.2% 86% 2018 2019 2Q2020 1.7% Cost of credit risk 1.3% Loan Portfolio Quality Coverage ratio (Stage 3) 81% 49% HIGHLIGHTS NPL ratio and Cost of credit risk increased by 1.3pp and 0.6pp respectively, mainly due to additional provisioning in some loan buckets, considering COVID- 19 related uncertainty and possible negative impact. 2018 2019 2Q2020 1.9% 2018 2019 2Q2020 4.2% NPL 1.9% Cost of credit risk 49% Coverage ratio 12#14Λ 10.8% Tier 1 Ratio 12.0% 11.4% 694,651 Risk Weighted Assets 759,973 814,589 Capital HIGHLIGHTS CBA has encouraged to utilize Basel III buffers (1%) to support lending. CBA has postponed Basel III related additional buffers implementation and decreased Tier 1 threshold from 10% to 9%. CAR Additionally, Tier 2 limit was 2018 2019 2Q2020 2018 2019 2Q2020 increased from 20% to 30% of Tier 1 capital. 13.7% Capital Adequacy Ratios 14.7% 13.4% 2018 2019 2Q2020 13.4% CAR 13#15bln AMD Λ 163 7.1 -2% Attracted funds 159 13.1 7% 169 14.3 85% 10% 155 146 155 -6% 6% 2018 2019 2Q2020 ■Loans from IFIS ■State Stimulus funds channeled via CBA bln AMD -28% Sub-debts 0% Funding and Liquidity 50 50 36 37 2018 2019 2Q2020 HIGHLIGHTS The bank attracted more than USD 30M new funds from IFIs in 2020. remained flat in Sub-debts 2Q2020, however the CBA increased Tier 2 to Tier 1 limit from 20% to 30% which gives more room for sub-debt attractions. Loans to deposits and borrowings ratio LCR (Liquidity Coverage Ratio) NSFR (Net Stable Funding Ratio) 178.3% 143.3% 86% 81% 125.4% 72% 144.2% 147.5% 130.7% 2018 2019 2Q2020 2018 2019 2Q2020 2018 2019 2Q2020 * Loans from State owned funds to support Armenia private sector (MSME) channeled through banking system. 14#16bln AMD bln AMD Λ Interest income 16% 8% 12% 8% 31.8 29.4 25.3 21% 8% 15.7 16.1 14.6 14.9 13.0 12.3 Interest income ■2Q2018 Interest expense ■2Q2019 Net interest income 2Q2020 -5% 2% 5.9 5.6 5.7 Non interest income 35% 12% 2.3 2.1 1.6 -19% -4% Income HIGHLIGHTS Net interest income increased by 8% YoY, mainly due to significantly higher interest income, which is a result of increased share of Retail and SME loans in total portfolio. Net interest margin decreased by 0.2pp comprising 4.6% mainly due to credit vacations granted to customers and additional liquidity buffers amid COVID-19. Net non interest income remained stable in 2Q2020. NIM (Net Interest Margin) 4.8% 4.8% 4.3 4.6% 3.5 3.4 Non interest income 2Q2018 Non interest expense ■2Q2019 Net non interest income 2018 2019 2Q2020 2Q2020 15#17Λ bln AMD Efficiency and Profitability Net profit -6% -18% CIR (Cost to Income ratio) HIGHLIGHTS Net profit decreased by 18% YoY mainly due to additional provisioning costs amid COVID-19 to tackle possible negative impact. Net Profit before provisioning totaled AMD 9.5B recording 15.5% YoY growth. 42.0% 5.9 40.4% 5.6 4.6 38.2% The 2Q2018 2Q2019 2Q2020 2018 2019 2Q2020 ROA (Return on Assets) ROE (Return on Equity) latter also affected key performance ratios such as ROA and ROE which recorded 0.5pp and 4.0pp decrease respectively. ■ The bank managed to generate higher operating profit, combining with YoY lower admin expense, which resulted in CIR ratio improvement by 1.6pp. 1.5% 1.5% 1.0% 12.6% 12.8% 8.8% 2018 2019 2Q2020 2018 2019 2Q2020 16#18> Ameriabank at a Glance 2020 Q2 Snapshot 2020 Q2 Financial Results Strategy Highlights Appendices Content 17#19Λ Digital transformation Enhanced efficiency and service quality Drivers Absolute Leadership position in Armenia Strong and resilient track record of growth and profitability Strategic Objectives Diversification 18#20Λ *YoY growth rates Mid-term target Mid-term Targets Actual performance ROE > 15% 8.8% CIR < 40% 40% Loan Book double Growth* digit 6.3% Retail + SME Share > 40% 51% Retail + SME > 15% 35.5% Growth* NPL < 5% 4.2% 19#21Λ Omni channel Distribution Platform with Focus on Digital Omni-channel distribution platform, with enhanced distance banking capabilities ↑ 172% yoy 94% yoy Internet Banking Users Internet Banking Transactions 0.5% 11.9% ■Branches $ ■Internet banking 59.9% 27.7% Self service channels 33% yoy 27% yoy Payment Terminal Transactions vPOS Transactions ■ Other Online banking penetration rate 43% 34% 24% Offloading ratio* 88% 82% 77% 2018 2019 2020H1 2018 2019 2020H1 20 * Share of transactions performed via distance and digital channels in total number of bank's transactions. 20#22Λ Omni channel Distribution Platform with Focus on Digital Fully automated scoring based online loans implemented for consumer loans 89% of which 52% Share of scoring based loans in total number of consumer loans Share of web based scoring loans of 40% 66% which Fully automated scoring based online loans implemented for SME loans of 68% which 24% Share of SME scoring loans in total number of business loans ≤ AMD 10 mn Share of web based SME scoring loans 56% of which 43% Share of scoring loans in total volume of consumer loans based Share of web based scoring loans Share of SME scoring loans in total volume of business loans ≤ AMD 10 mn Share of web based SME scoring loans * Data are for the first half of 2020 21 27#23Λ Innovator and Trend Setter Best customer experience and high satisfaction scores Online market platforms/ecosystems Doing business responsibly and giving back to community NPS - 72% CEI* -9.5 NPS ≥ 70% CEI ≥ 9.3 * Client Experience Index with max possible value of 10 current progress launching ecosystems car market mortgage market SME ecosystem 124mn allocated in 2019 for CSR purposes cultural and educational projects, children's health care programs, community development programs mid term targets ecosystems market penetration rate ≥ 50% Following and implementing best practice international ESG standards Green bonds issuance 22 22#24> Ameriabank at a Glance 2020 Q2 Snapshot 2020 Q2 Financial Results Strategy Highlights Appendices: External Environment Content 23#25Λ General GDP: 13.7 bln (2019, current $) GDP per capita: 4,615 (2019, current $) Average real GDP growth (2013-2019):4.4% Moody's: Ba3 (stable) Fitch: BB- (negative) Armenia: country overview High average GDP growth and low inflation 2013-2020, 1st half 5.8% 3.6% 3.7% 3.3% 3.0% 3.2% 7.5% 5.2% 7.6% 2.5% 0.2% 1.4% 1.0% 0.5% -1.4% -5.7% Well Diversified Economy 2013 2014 GDP Structure by production* 2015 GDP real growth, % 2016 2017 2018 2019 1H2020 -Inflation, 12m YoY 21.3% 18.5% Most Stable Currency in the Region (regional currencies vs USD FX rate dynamics)** 320 300 5.8% 11.9% 280 260 6.4% 240 11.3% 220 6.6% 200 7.3% 10.7% 180 160 ■Industry ■Agriculture, hunting, forestry and fishing 140 ■Wholesale and retail trade 120 ■Taxes on products (minus subsidies) 100 ■Real estate activities 80 ■Arts, entertainment and recreation Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 ■Financial and insurance activities ■Construction ■ Other AMD RUB KZT AZN GEL TRY * *most recent 4 quarters, as of Q2 2020 *daily rate changes with 2014 January as basis. Source: Bloomberg Jan-20 24 24#26bln USD bln USD Λ AMD/USD (daily average) 482.1 484.1 AMD/EUR (daily average) 583.8 483.4 546.9 Armenia macro indicators AMD/RUB (daily average) 8.1 7.4 7.0 532.5 HIGHLIGHTS EAI (GDP proxy) for the first six months comprised -4.7% amid COVID-19 0.4% -0.1% -6.3% -2.6% -8.8% -5.7% Emergency. ■ Jan - Jun 2018 Jan - Jun 2019 Jan - Jun 2020 Jan - Jun 2018 Jan - Jun 2019 Jan - Jun 2020 Jan - Jun 2018 Jan - Jun 2019 Jan - Jun 2020 12-month -0.19 1Q2018 Current account (BOP) -0.23 1Q2019 International Reserves -0.20 1Q2020 11% 19% 1.99 2.22 2.65 30-Jun-2018 30-Jun-2019 30-Jun-2020+ mln USD bln USD related State of Import and export 2.31 1.18 2.32 1.17 2.03 1.11 -1.13 Jan - June 2018 Import -0.92 Jan - June 2020 -1.15 Jan - June 2019 Export Net export Remittances 13% -22% 623 705 546 Jan - May 2018 Jan - May 2019 Jan May 2020 cumulative CPI comprised 0.5% (Jun-20) vs 2.0% YoY CPI. Armenian dram slightly (0.2%) appreciated vs US dollar over 6m 2020. Exchange rate fluctuations have been within 1-2% range during the last 5 years. Current account deficit slightly improved in the first half of 2020 vs the same period of previous year. International reserves increased by 19% YoY. Remittances dropped by 22% YoY as of May vs 13% increase a year earlier largely driven by overall economic situation in the world amid Covid-19 crisis. CPI (12m) 102.4 108.7 102.0 100.5 Jun-2018 Jun-2019 Jun-2020 Economic Activity Index (IEA 12m) June-2018 106.4 95.3 June-2019 June-2020 *Updated information is not available yet. +Data are preliminary. The CBA closing entries are not included. **Remittances include total commercial and non-commercial transfers of physical persons through the banking system. Source: Statistical Committee of Armenia, Central Bank of Armenia 25#27Λ Top 5 banks by assets (AMD B) 5,996 Armenian Banking Sector Highlights 14.8% 14.4% 13.4% 7.6% 5.9% 885 863 806 454 353 Banking System A AMERIABANK ABB A Ardshinbank ACBA-CREDIT AGRICOLE INECOBANK ՀԱՅՐԻՁՆՆ ԲԱՆԿ Top 5 banks by loans* (AMD B) 3,771 16.0% 15.8% 14.5% 8.4% 5.9% 602 597 548 316 223 Banking System ABB A AMERIABANK ՀԱՅԲԻԶՆԵՍԲԱՆԿ A Ardshinbank ACBA-CREDIT AGRICOLE INECOBANK *net of impairment allowances HIGHLIGHTS A competitive market, with top five banks representing 56% and 60.6% of the total banking system assets and loans respectively. The top three banks account for 43% of the total assets and 46% of the total loans. The banking system total assets and loans increased by 4.2% and 6.4% respectively in the first half of 2020. 26#28> Ameriabank at a Glance 2020 Q2 Snapshot 2020 Q2 Financial Results Strategy Highlights Appendices: Historic Milestones Content 27 27#29Λ From advisory to banking Our road to success Ameria Advisory was founded by local and Diaspora investors 1st bank acquisition deal in RA acquired shares of one of the oldest yet smallest banks in RA 1st banking merger deal in RA : Ameriabank and Cascade bank signed merger deal. USD 30min equity investment by EBRD.* USD 50mln sub debt from IFC.* 1st published international credit rating (B+ rating with Stable Outlook by Fitch) 1998 2000-2007 |2000-2007 | 2007 | 2008-2009 2010 2011 - 2014 2015 | 2017 - 2019 Ameria became a GROUP of companies with expanded business lines: Legal and Tax Advisory, Business Advisory, Investment Banking, Asset Management rebranded to Ameriabank. Unprecedented growth amid global crisis Became the leading bank in RA. Strategic decision to become a universal bank, significantly increasing Retail Banking share Absolute leader in RA by key financial indicators USD 30mln equity investment by ADB in early 2018** Ba3 rating with stable outlook by Moody's B+ rating with stable outlook by S&P * The largest deal with a Fl in Armenia ** the first equity investment of ADB in Armenia 28#30Λ Our Shareholders 2007-2013 2015 2016 2018 2020 AmeriaGroup (CY) Ltd, with prominent investment banker Ruben Vardanyan and venture capitalist Noubar Afeyan as main beneficiaries, became the 100% shareholder of Ameriabank CJSC EBRD became the first international institution to become a shareholder with investment of USD 30 mn ESPS Holding Limited has been established for holding shares of Ameriabank's management team vested by the Employee Share Ownership Plan. ADB made its first equity investment in Republic of Armenia, joining Ameriabank's shareholders with another USD 30 mn investment Afeyan Foundation for Armenia Inc. has become shareholder of Ameriabank cjsc in the result of redemption of Noubar Afeyan's shares in Ameria Group (CY) Ltd. EBRD 17.76% EBRD 17.8% Ameria Group (CY) Ltd 100% Ameria Group (CY) Ltd 79.3% EBRD 20.7 % Ameria Group (CY) Ltd 65.8% EBRD Ameria Group 20.7 (CY) Ltd Imast Group (CY) Ltd * 48.95% ESPS Holding Ltd 11.83% % 56.5% ESPS Holding Ltd ADB 13.94% ESPS Holding ADB 11.7% 14.0% Afeyan Foundation for Armenia Inc. Ameria Group (CY) Ltd was renamed to Imast Group (CY) Ltd Ltd 13.5% 7.53% 29 29#31Λ GLOBAL FINANCE BEST BAN Recognition and honors for achievements EUROMONEY EUROMONEY AWARDS FOR EXCELLENCE 2018 The Banker AWARD 2019, 2018, 2017, 2016, 2014, 2012, 2011 FT FINANCIAL TIMES Bank of the Year 2017 ARMENIA GLORANCE 2017, 2016, 2015, 2014, 2013, 2012 FT EUROMONEY FINANCIAL TIMES Λ AMERIɅBANK Best Bank in Armenia Numerous awards and recognitions from global institutions, agencies and IFIs in trade finance, investment banking, capital markets and custody services. 2019, 2017, 2016, 2015, 2013, 2010 EUROMONEY GLORANCE EUROMONEY GRANCE EUROMONEY GLORANCE EUROMONEY GLOBA GARANCE FT FT FT FT GLOBAL FINANCE FINANCIAL TIMES GLORAKCE ΕΙΝΑΝΕΤΑΙ TIMES FINANCIAL TIMES FINANCIAL TIMES EUROMONEY EUROMONEY FT FINANCIAL TIMES 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 30#32> Ameriabank at a Glance 2020 Q2 Snapshot 2020 Q2 Financial Results Strategy Highlights Appendices: Corporate Governance Content 31#33Λ Strong Team and Corporate Culture Unique corporate culture driven by a flat One of the most professional and organization and a fully talented teams in the merit based compensation structure Best practice corporate governance system and principles local market Fully functioning Board committees as per international best practice of public companies Most experienced and internationally accomplished board members in the market 32#34Λ Our Board of Directors Andrew Mkrtchyan Chairman of the Board Over 20 years of experience in investment and management advisory by standing at the roots of investment banking establishment in Armenia, board member in a number of private/public organizations. Lindsay M. Forbes Non-executive Board Member Over 35 years of experience in commercial and investment banking, including more than 20 years with European Bank of Reconstruction and Development (EBRD). Before joining EBRD, Mr. Forbes spent 13 years with the British Linen Bank, the Investment Bank subsidiary of Bank of Scotland. Philip Lynch Non-executive Independent Board Member Over 30 years of experience in finance, including more than 20 years with Lehman Brothers in senior positions. Was CEO of Middle East, Asia Pacific and Africa business at Nomura, is currently the founding partner of Stem Capital Partners - an independent direct investment company. Robert von Rekowsky Non-executive Independent Board Member Around 30 years of experience in global asset management, specialized in emerging markets funds, a former vice- president at Emerging Markets Strategy and portfolio manager for Fidelity Investments. Richard P. Ogdon Non-executive Independent Board Member More than 30 years of experience in the financial sector, with senior positions in investment banks, asset management and advisory companies (UBS Warburg, Uralsib and other Fis), serves as the CEO of TRDATA software company. Kaha Kiknavelidze Non-executive Independent Board Member More than 25 years of experience in commercial and investment banking, has been a long time NED and later CEO of Bank of Georgia Group, the leading financial institution in Georgia. Held executive and top managerial positions at UBS, Rioni Capital and other Fls. Tigran Davtyan Non-executive Independent Board Member About 30 years of experience in the financial system, with senior executive positions at the commercial banks, of which more than 8 years as CEO. Held senior positions at the Central Bank of Armenia and Eurasian Economic Commission 33#35Λ Our Management Board Artak Hanesyan CEO, Chairman of the Management Board A distinguished banker with more than 25 years of experience in the banking system of Armenia. Has been the CEO of Ameriabank since 2008. Before that Mr. Hanesyan held key positions in the banking sector of Armenia, including positions of CEO and deputy CEO. Gevorg Tarumyan Deputy CEO, CFO Over 25 years of experience in the banking system of Armenia, including around 20 years of experience serving as CFO both in local banks and global banks represented in Armenia. Has been the CFO of Ameriabank since 2012. Gagik Sahakyan CIB Director Around 10 years of experience in corporate banking and around 15 years experience in management advisory. Starting his career at Ameria and leading Ameria advisory services he later moved to corporate banking and has been heading the business line since 2010. Arman Barseghyan Retail Banking Director A proven career track of more than 20 years in retail banking, of which around 15 years at HSBC bank Armenia. Mr. Barseghyan joined Ameriabank as Retail Banking Director in 2012. Armine Ghazaryan Chief People and Services Officer Andranik Barseghyan Gohar Khachatryan Risk Management Director Chief Accountant Around 20 years of Around 25 years of Around 30 years experience in the banking sector of Armenia, of which around 15 years in human resources management (HRM). Mrs. Ghazaryan had been heading Ameriabank's HRM unit since 2008, prior to becoming CPSO in 2019. experience in financial institutions' risk management and automation technologies. Mr. Barseghyan has been heading Ameriabank's Risk Management Center since 2009. of experience in accounting holding key positions both at the Central Bank of Armenia and private banks, of which more than 10 years as the chief accountant of Ameriabank. 34#36> Ameriabank at a Glance 2020 Q2 Snapshot 2020 Q2 Financial Results Strategy Highlights Appendices: Financial Performance Details Content 35#37Λ ITEMS 2Q2020 Balance sheet 2019 thous AMD Cash and cash equivalents Financial instruments at fair value through profit or loss Available-for-sale financial assets Money market short-term disbursements 146,477,925 248,217,495 8,095,695 8,255,606 8,278,450 10,848,985 47,753,020 50,564,199 Loans and advances to customers* Held-to-maturity investments Property, equipment and intangible assets 597,247,962 45,850,587 21,715,729 585,741,899 33,510,890 22,397,513 Other assets 9,973,692 8,544,630 Total assets 885,393,060 Financial liabilities at fair value through profit or loss 466,653 Liabilities to banks 50,851,499 968,081,217 35,314 34,488,813 Current accounts and deposits from customers 486,628,433 593,223,433 Other borrowed funds 123,235,156 126,685,607 Sub-debt Other liabilities Total liabilities Share capital and premium Revaluation Reserve Retained earnings Equity 36,673,602 36,495,281 81,787,759 75,925,691 779,643,102 866,854,139 54,452,244 504,310 50,793,404 105,749,958 54,356,760 650,042 46,220,276 101,227,078 *net of impairment allowances 36#38Λ ITEMS 2Q2020 Net interest income Net fee and commission income Net profit/loss from trading operations Other operating income (expenses) Operating income Impairment losses Personnel expenses Total administrative expenses Profit/ (loss) before tax Profit tax Net profit/(loss) Profit & loss 2Q2019 thous AMD 16,114,415 14,844,489 1,606,219 1,635,174 2,515,973 2,299,356 (742,228) (423,567) 19,494,379 18,355,452 (6,041,934) (3,352,891) (4,653,195) (4,811,045) (3,220,327) (3,161,813) 5,578,923 (1,005,795) 4,573,128 7,029,703 (1,460,063) 5,569,639 37#39Λ CBA prudential standards ITEMS 2018 2019 2Q2020 CBA requirement Violations Minimum statutory fund (in '000 AMD) 37,300,480 37,347,200 37,386,880 50,000 No violation Minimum total capital (in '000 AMD) 97,770,976 115,150,056 112,926,360 30,000,000 No violation S12 Total capital to risk weighted assets 13.7% 14.7% 13.4% 12% No violation S21 High liquid assets / Total assets 21.9% 27.9% 29.3% 15% No violation S211 High liquid assets of first group of currency / Total assets of first group of currency 11.4% 18.2% 22.6% 4% No violation S22 High liquid assets/Demand liabilities 78.8% 94.5% 112.1% 60% No violation S221 High liquid assets of first group of currency / Demand liabilities of first 41.5% 63.2% 103.4% 10% No violation group of currency S31_Maximum risk on a single borrower 14.6% 13.7% 15.0% 20% No violation S32_Maximum risk on large-scale borrowers 280.9% 211.7% 238.9% 500% No violation S41 Maximum risk on bank related person 2.7% 1.2% 1.2% 5% No violation S42 Maximum risk on all bank related persons 9.6% 6.3% 7.6% 20% No violation Minimum requirement for obligatory reserves allocated with RA CBA: AMD 2% ✗ X No violation 18% Currency Maximum risk of currency position / Total capital of the bank 0.0% 0.1% 0.3% 10% No violation Maximum risk of separate currency positions / Total capital of the bank: -1.29% -2.51% 0.24% USD -0.49% -1.07% -1.78% EUR 7% No violation -0.02% 0.04% 0.00% RUB X X X other 38#40Λ FX exposure Currency structure of loan portfolio EUR 17% Currency structure of deposits EUR 13% Other 2% USD 50% AMD USD AMD 33% 31% 54% Currency structure of corporate loans Currency structure of retail loans Currency structure of trade finance EUR .22% USD 21% EUR 5% USD 46% EUR AMD 12% 36% USD 66% AMD AMD 74% 18% 39 39#41Λ Loans and advances to customers 90% Interest income structure Securities .8% Money _market 2% Other 0% Non Interest Income structure Fee and commission income 41% FX income 38% Income Structure Interest expense structure Due to customers 60% Due to CBA/banks 8% Other 5% Due to IFI 27% Net fee and commission income structure Account service 27% Fines and penalties 8% Credit card maintenance 44% Derivatives Other 3% 10% Guarantee and LCs 12% Money transfers 17% 40 40#42Λ bln AMD 6.9 bln AMD 5.07 7.07 Profit & loss Net profit margin 34% EBT margin 41% 0.84 2.18 4.80 -0.46 1.10 13.47 1.52 1.01 5.58 4.57 OP OP OP OP 0 CB RB TD IB Other Total OP HR PR Mark & Admin Dep & exp amor EBT Taxes NET PROFIT Admin expenses 16% -1% 8.0 7.9 2Q2018 2Q2019 2Q2020 Structure of admin expenses Rent 3% P&L Structure Depreciation 19% Marketing, Rep. costs and CSR 6% Personnel expenses and Trainings 59% Other 9% Maintenance, communication and utility cost 4% 41#43Λ Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein. Neither Ameriabank CJSC, nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document. This document does not constitute any offer and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation may contain forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Ameriabank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. 103730 Copies of this document are readily available upon request or can be downloaded from www.ameriabank.am/ir. AMERIABANK E abank.am | 56 11 16 170 144 Lam 56 11 11 MONTHIYEAR 11/11 ՔԱՐՑԵՐ 42#44Available on the iPhone f t in App Store Shushanik Hovsepyan Head of Investor Relations E-mail: [email protected] Tel: +374 10 561111 Web: www.ameriabank.am/ir Address: 2 V. Sargsyan street, Yerevan, 0010, RA Λ