IBL Financial Overview

Peer group companies (cont.) Definitions and/or explanations of certain ratios: • . A capital ratio is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted assets. It is based on regulatory qualifying capital (including common equity tier 1, additional tier 1 and tier 2 capital) as a percentage of risk-weighted assets. Assets are risk- weighted either according to the Standardised Approach in terms of Basel or the Advanced Approach. The leverage ratio is calculated as total tier 1 capital (according to regulatory definitions) divided by total assets (exposure measure). This ratio effectively assumes all assets are 100% risk weighted and is a more conservative measure than the capital adequacy ratio. Regulators are expecting that this ratio should exceed 5%. The gearing ratio is calculated as total assets divided by total equity (according to accounting definitions). The credit loss ratio is calculated as the expected credit loss (ECL) impairment charges on gross core loans as a % of average gross core loans subject to ECL. Stage 3/Default loans largely comprise loans that are impaired and/or over 90 days in arrears. Page 34

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