Annual Report 2022 - The Beginning of a Journey of Transformation

KEY HIGHLIGHTS पण S Stable funding base and good liquidity buffers • 70% of the total liabilities consist of customer deposits • Liquidity coverage ratio and net stable funding ratio of 239% and 106% against regulatory requirement of 100% for each benchmark • Leverage of 7.9%, 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 40% of operating income and 37% 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 12.4% and CAR of 14.7% • Well above the Tier 1 ratio and CAR levels of 11.0% and 13.5% respectively (including D-SIB) 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 (38% Females amongst new hires Q2 2023), 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

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