#1KUWAIT INTERNATIONAL BANK INVESTOR PRESENTATION 2Q/ 1H 2023 EARNINGS CALL THURSDAY 13:00 KST 17 AUG 2023 KIB BANK FOR LIFE#2DISCLAIMER This presentation has been prepared by KIB (Kuwait International Bank KSCP) (the "Bank"), is strictly confidential and is being furnished to each recipient solely for its own information. It may not be reproduced or redistributed to any other person, and it may not be published anywhere, in whole or in part, for any purpose. It is expressly forbidden to disclose the information in this presentation to any other person. No representation or warranty, express or implied, is or will be made in relation to, and no responsibility, liability or duty of care is or will be accepted by the Bank and affiliated persons, or any directors, partners, officers, representatives, employees, advisers or agents of the Bank ("Relevant Persons") as to, or in relation to, the accuracy, reliability, or completeness of this presentation or any information herein. Accordingly, none of the Bank or any Relevant Persons shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on the accuracy of any information or any statement in this presentation or any errors or omissions in this presentation. No responsibility, liability or duty of care is or will be accepted by the Bank or any Relevant Persons for providing the recipient with access to any additional information, updating this presentation or correcting any inaccuracies herein which may become apparent. IMPORTANT NOTICE This presentation has been prepared by KIB and is subject to the applicable laws and regulations in the State of Kuwait. It is for information purposes only and it shall not be reproduced or redistributed to any other person without obtaining KIB's prior written consent. It does not and shall not constitute either an offer to purchase or buy or a solicitation to purchase or buy or an offer to sell or exchange or a solicitation to sell or exchange any securities of KIB. Neither this presentation nor anything contained herein shall form the basis of any contract, commitment or advice whatsoever. This Presentation must be read in conjunction with all other publicly available information. To the maximum extent permitted by law, KIB and its directors, employees, agents, consultants, affiliates and subsidiaries expressly exclude all liability and responsibility for any loss or damage arising from the use of, or reliance on, the information contained in this presentation or the website whether or not caused by any negligent act or omission. Neither KIB nor any of its directors, employees, agents, consultants, affiliates, or subsidiaries warrant or represent the correctness, accurateness or completeness of the information provided herein. This document is not to be relied upon in any manner as legal, tax or investment advice. Each recipient hereof shall be responsible for conducting its own investigation and analysis of the information contained herein and shall familiarize and acquaint itself with, and adhere to, the applicable local legislations. Except where otherwise expressly indicated herein, this presentation contains time-sensitive information which is based on currently available information to KIB as of the date stated or, if no date is stated, as of the date of this preparation and accordingly does not guarantee specific future results, performances or achievements. The information and the opinions contained herein are subject to change without notice. None of KIB/its subsidiaries or affiliates assume any obligation to update or otherwise revise any such information to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof. FORWARD-LOOKING STATEMENTS All statements included or incorporated by reference in this presentation, other than statements or characterizations of historical fact, are forward-looking statements. Such forward-looking statements are based on KIB's current expectations, predictions and estimates and are not guarantees of future performance, achievements or results. Forward-looking statements are subject to and involve risks and uncertainties and actual results, performance or achievements of KIB may differ materially or adversely from those expressed or implied in the forward-looking statements as a result of various factors. In addition, even if KIB's results of operations, financial condition and the development of the industry in which it operates are consistent with forward-looking statements contained herein, those results or developments may not be indicative of results or developments in subsequent periods. KIB does not undertake to update any forward-looking statements made herein. Past results are not indicative of future performance. This presentation contains certain data based on internal management estimates, which may have not been independently verified by a third party. Information has been obtained from various sources and are provided to assist the recipient in the evaluation of matters described herein. They may be based on subjective assessments, adjustments and assumptions and may use one among alternative methodologies that produce different results and to the extent they are based on historical information, they should not be relied upon as an accurate prediction of future performance. 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 2 KIB Copyright © 2023 by KIB. All rights reserved#317-Aug-2023 Index Strategy update Financial Performance Expectations Q&A Annexures INVESTOR PRESENTATION 2Q/ 1H2023 4 8 14 16 17 3 KIB Copyright © 2023 by KIB. All rights reserved#4STRATEGY UPDATE 17-Aug-2023 KIB BANK FOR LIFE 4 INVESTOR PRESENTATION 2Q/ 1H2023#5Capital Increase Kuwait International Bank K.S.C.P. Rights Issue KIB successfully completes capital increase via rights issue (KD 60 MIn) in June 2023 Oversubscribed by 687% KIB successfully completed the subscription process to increase its capital by offering 429 million shares, at a value of KD 60 million. The right issue was oversubscribed by 687%, and the capital increase comes in line with KIB's strategy to achieve further development and growth. Following the completion of the capital increase, KIB's paid-up capital increased by 35% to reach KD 165.4 million which strengthens KIB's financial position. KIB will use the proceeds of the capital increase to support the regulatory capital ratios and its growth plans. In addition, the proceeds will be utilized in developing digital infrastructure for offering digital banking services of high quality. Kamco Investment Company K.S.C.P. (Kamco Invest) managed the offering in their capacity as the Issuance Advisor and Subscription Agent, and Meysan Partners were appointed by KIB as the Legal Advisors. KAMCO INVEST 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 5 مايلات MEYSAN PARTNERS KIB Copyright © 2023 by KIB. All rights reserved#6KIB launches three new digital platforms KIB 17-Aug-2023 3m KIB wwww Embrace The Power Of Corporate Online Banking Where Innovation Meets Security Corporate Online Banking KIB Discover KIB Aqari One Stop For All Your Real Estate Needs <KIB Discover A Whole New Banking Experience Download KIB App Now! Properties Q Search by name or location Arkah Residence Kuwait City Occupancy Al Aziziya Apartments Vuwait City Occupancy Rent in 39% B 89 M KIB Aqari Platform Cards KIB 3- Faisal Qadri 5408993839 10/25 Fay Card Manage 350.000 1,108.000 кир KIB App New vehicle financing 21 Nov 2001 INVESTOR PRESENTATION 2Q/ 1H2023 GET IT ON Google Play Available on Download on the App Store Available on Download on the GETTON Google Play App Store 6 KIB Copyright © 2023 by KIB. All rights reserved#7External Ratings & Awards Fitch Ratings Fitch Affirms KIB Ratings at 'A'; Outlook Stable Long-Term IDR: A Long-Term IDR (xgs) BB- (RWN) Short-Term IDR: F1 Short-Term IDR (xgs): B Viability Rating: bb- (RWN) Government Support Rating: a KIB Sukuk Ltd - Rating Affirmed 02 May 2023 Awards BONDS, LOANS & SUKUK MIDDLE EAST Islamic Syndication Deal of the Year ASSETA 2022 ASIAN AWARDS THE Asset TRIPLE A The Asset Triple A Islamic Finance Awards 2022 Best Social Impact Sukuk Co-Manager - Islamic Development Bank US$2.5Bn Sustainability Sukuk 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 KIB Copyright © 2023 by KIB. All rights reserved#8Financial Performance KIB BANK FOR LIFE 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 8#9Financial Performance Financial Results for the 6 months period ended 30th June 2023 17-Aug-2023 Highlights 1H 2023 1H 2022 % Total Assets 'KD Billion' Financing Receivables 'KD Billion' Customer Deposits 'KD Billion' 3.4 3.5 (3%) 2.5 2.6 (5%) 1.9 2.3 (18%) Financing Income 'KD Million' 81.7 45.8 78% Non-finance Income 'KD Million' 12.0 8.1 49% Operating Income 'KD Million' 35.4 31.1 14% Net Profit attributable to shareholders 'KD Million' 5.9 3.2 88% Earnings Per Share 'Fils' 2.87 0.49 486% INVESTOR PRESENTATION 2Q/ 1H2023 6 KIB Copyright © 2023 by KIB. All rights reserved#1017-Aug-2023 Income/ Profitability Trend FINANCING INCOME OPERATING INCOME (KD MIn) (KD Min) 39.9 45.8 81.7 ■1H 2021 ■ 1H 2022 ■1H 2023 NET PROFIT (ATTRIBUTABLE TO SHAREHOLDERS) 3.2 2.2 ■1H 2021 ■1H 2022 ■ 1H 2023 (KD Min) ■ 1H 2021 * 34.1 35.4 31.1 ■1H 2022 * Before expenses & provisions OPERATING PROFIT ■1H 2023 (BEFORE PROVISIONS/ IMPAIRMENT) 5.9 14.8 INVESTOR PRESENTATION 2Q/ 1H2023 (KD MIn) 10.1 ■1H 2021 ■1H 2022 ■1H 2023 13.2 10 KIB Copyright © 2023 by KIB. All rights reserved#1117-Aug-2023 Key Balance Sheet Parameters (KD Min) (KD Min) TOTAL ASSETS 2,889 3,515 ■ 30-Jun-21 ■ 30-Jun-22 ■30-Jun-23 CUSTOMER DEPOSITS 2,289 1,777 1,887 ■ 30-Jun-21 ■ 30-Jun-22 ■30-Jun-23 3,406 INVESTOR PRESENTATION 2Q/ 1H2023 (KD MIn) (KD Min) FINANCING RECEIVABLES 2,124 2,606 2,473 ■ 30-Jun-21 ■30-Jun-22 ■30-Jun-23 INVESTMENT SECURITIES 298 309 241 ■30-Jun-21 ■ 30-Jun-22 ■30-Jun-23 11 KIB Copyright © 2023 by KIB. All rights reserved#12Asset Liability Mix 9% 10% ASSET MIX LIABILITY MIX 8% 5% 12% 10% 10% 11% 2% 1% 3% 3% 73% 74% 74% 7% 30-Jun-21 8% 30-Jun-22 11% 30-Jun-23 62% 21% 65% 21% 12% ៖៖ 3% 3% 55% 27% 30-Jun-21 30-Jun-22 30-Jun-23 ■Due from banks & Deposit with CBK ■Financing receivables Investments Others ■Due to banks and OFI's Depositors' accounts ■Sukuk issued Other liabilities ■ Equity 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 12 KIB Copyright © 2023 by KIB. All rights reserved#13* Relaxed regulatory ratios due to Covid 19 Pandemic Capital/ Liquidity Analysis CAR (Basel III) 17-Aug-2023 20.5% 12.0% 10.5% 16.6% 19.8% 13.0% 11.5% 11.8% 9.0% 1H 2021 1H 2022 ■Total CAR ■CET 1 ■Regulatory Requirement (CAR) LEVERAGE RATIO 101.0% NSFR 110.9% 100.6% 100% 90% 80% 1H 2023 1H 2021 1H 2022 1H 2023 ■NSFR ■Regulatory Requirement 10.0% 7.8% 10.1% LLL 3% 3% 3% 1H 2021 1H 2022 1H 2023 ■Leverage ratio Regulatory Requirement INVESTOR PRESENTATION 2Q/ 1H2023 LCR 100.3% 99.0% 90% 80% 1H 2021 ■LCR 1H 2022 ■Regulatory Requirement 170.4% 100% 1H 2023 13 KIB Copyright © 2023 by KIB. All rights reserved#142023 EXPECTATIONS KIB BANK FOR LIFE 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 14#15YE 2023 Expectations ✓ Maintain capital ratios ✓ Maintain asset quality ✓ Align core assets in line with strategy ✓ Improved profitability ✓ Operating expenses expected to be in line with industry/market trends 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 15 KIB Copyright © 2023 by KIB. All rights reserved#16? Q&A KIB BANK FOR LIFE 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 16#17Annexures 17-Aug-2023 KIB BANK FOR LIFE INVESTOR PRESENTATION 2Q/ 1H2023 17#18KIB AT A GLANCE 17-Aug-2023 KIB BANK FOR LIFE INVESTOR PRESENTATION 2Q/ 1H2023 18#19KIB AT A GLANCE BACKGROUND AWARDS OWNERSHIP OPERATIONS RATINGS SNAPSHOT In business since 1973, KIB is a publically-traded Kuwaiti bank that in 2007 adapted all its operations and processes to fully comply with Islamic Sharia'. Best Social Impact Sukuk (The Asset Triple A Awards 2022) Islamic Syndication Deal of the Year 2022 (Bonds, Loans & Sukuk Middle East) Best Sharia' Compliant Bank MENA – 2022, 21, 20, 19, 18, 17, 16 & 15 (CFI.co) - Best Banking Vision MENA - 2022 & 21 (CFI.co) Best Customer Focused Islamic Banking Products and Services in Kuwait 2022 (World Finance) Listed on the Boursa Kuwait since 1984, Bukhamseen Group Holding & its affiliates hold 37.38% shares of KIB. Govt. of Kuwait holds around 6.43% through PIFSS as of 30th June 2023. KIB's market capitalization at 30th June 2023 was KD 281 million. KIB's business covers all Sharia compliant banking services including acceptance of deposits, financing, investments, Murabaha (auto, real estate and commodities), Ijara Muntahia Bittamleek (lease-to-own), Istisna'a, Tawarruq, credit cards, Wakala, and other products in addition to corporate and project finance, treasury services, issuing letters of credit and letters of guarantee. Subsidiaries: Al Dawli Takaful Insurance Company - Kuwait, KIB Invest Company - Kuwait, KIB Tier 1 Sukuk Limited - Cayman Islands (SPV) and KIB Sukuk Limited - Cayman Islands (SPV) Long-Term IDR "A" with "Stable Outlook" Fitch Ratings 2nd May 2023 KD million Total Assets Financing Receivables Customer Deposits Total Equity Operating income SUMMARY 1H 2023 1H 2022 3,406 3,515 2,473 2,606 1,887 2,289 409 340 35 31 Net Operating profit after provisions 6 со 3 Net Profit attributable to shareholders Net Financing Margin (%) 6 3 1.5% 1.5% 0.4% 0.2% 3.38% 1.86% Total Coverage Ratio* Return on Average Equity (%) Tier 1 Ratio (%) CET 1 Ratio (%) 173.9% 275.1% 4.2% 2.5% 15.1% 12.1% 11.8% 9.0% 19.8% 16.6% 16 16 Net Profit Margin (%) NPL Ratio (%) CAR (%) No of Branches * Total coverage ratio includes collateral. 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 19 KIB Copyright © 2023 by KIB. All rights reserved#20Consolidated Income Statement & Balance Sheet 17-Aug-2023 KIB BANK FOR LIFE INVESTOR PRESENTATION 2Q/ 1H2023 20 20#2117-Aug-2023 Income Statement Consolidated (6M - 1H'23 & '22) STATEMENT OF PROFIT OR LOSS (UNAUDITED) KWD 000's Financing income 1H 2023 1H 2022 81,703 Finance costs and distribution to depositors (58,347) 45,805 (22,722) NET FINANCING INCOME Fees and commission income Net gain from foreign exchange Investment income Other income TOTAL OPERATING INCOME 23,356 23,083 6,100 5,665 609 522 4,684 1,476 611 390 35,360 31,136 Staff costs (11,289) (11,758) General and administrative expenses (7,531) (7,086) Depreciation (3,345) (2,213) TOTAL OPERATING EXPENSES (22,165) (21,057) Profit from operations before provisions and impairment 13,195 10,079 Provisions and impairment (6,866) (6,688) PROFIT FROM OPERATIONS 6,329 3,391 Taxes (283) (146) PROFIT FOR THE PERIOD 6,046 3,245 Attributable to: Shareholders of the Bank Non-controlling interests INVESTOR PRESENTATION 2Q/ 1H2023 5,943 3,165 103 80 21 KIB Copyright © 2023 by KIB. All rights reserved#22Balance Sheet Consolidated (As at 30 June '23 & '22) STATEMENT OF FINANCIAL POSITION (UNAUDITED) 17-Aug-2023 KWD 000's Cash and balances with banks Deposits with Central Bank of Kuwait 30-Jun-23 30-Jun-22 97,965 187,949 284,944 106,481 Due from banks Financing receivables Investment securities Investment in an associate Investment properties 105,880 189,911 2,472,740 2,605,556 308,546 297,724 1,761 1,709 59,867 53,447 Other assets 33,130 34,603 Property and equipment 40,784 37,882 TOTAL ASSETS 3,405,617 3,515,262 Due to banks and financial institutions 932,424 727,872 Depositors' accounts 1,887,388 2,289,158 Sukuk issued (AT2) 91,821 91,677 Other liabilities 85,203 66,334 TOTAL LIABILITIES Share capital Share premium 2,996,836 3,175,041 165,377 117,807 66,623 49,480 Treasury shares (45,161) (45,234) Other reserves 127,432 123,555 EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE BANK 314,271 245,608 Perpetual Tier 1 Sukuk 91,035 91,035 Non-controlling interests 3,475 TOTAL EQUITY 408,781 3,578 340,221 TOTAL LIABILITIES AND EQUITY 3,405,617 3,515,262 INVESTOR PRESENTATION 2Q/ 1H2023 222 KIB Copyright © 2023 by KIB. All rights reserved#23в CONTACT FOR FURTHER INFORMATION [email protected] 17-Aug-2023 INVESTOR PRESENTATION 2Q/ 1H2023 23 KIB Copyright © 2023 by KIB. All rights reserved#24と 17-Aug-2023 Thank you KIB BANK FOR LIFE Private & Confidential