BLME Holdings plc Investor Presentation March 2014 Disclaimer The - - PowerPoint PPT Presentation

BLME Holdings plc

Investor Presentation

March 2014

Disclaimer

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The material in this document is general background information about BLME Holdings plc (“BLME”) activities current at the date of the

• document. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice

to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular

• investor. Investors and prospective investors should rely upon their own examination of the Company and the Group. If investors or

prospective investors are in any doubt as to the action they should take , they should seek their own independent financial advice from a stockbroker, bank manager, solicitor, accountant or appropriately authorised independent financial advisor. Any opinions, forecasts or estimates herein constitute a judgement as at the date of this document. There can be no assurances that the future results or events will be consistent with any such opinions, forecasts or estimates. This information is subject to change without notice. This document, has been provided to you solely for your information and any part thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, storage in an information retrieval system, or otherwise, without the prior written permission of the authors. In particular, this document should not be posted on a web site. Unauthorised use, reliance, disclosure or copying of the contents of this document, or any similar action, is prohibited.

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Contents

Introduction to BLME 4 – 13 UK and European Islamic Finance Markets 14 – 16 BLME’s Business Divisions 17 – 25 Financial Highlights 26 – 36 Appendix 1 – BLME Financial Results 37 – 41 Appendix 2 – BLME Corporate Governance 42 – 45 Appendix 3 – BLME Risk Management 46 – 48 Appendix 4 – Human Capital & Key Management 49 – 53 Contact Details 54

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Introduction to BLME

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“We are dedicated to developing competitive Sharia’a compliant products and providing client driven solutions. We believe that forming lasting partnerships founded on the principles of trust, solid risk management and accountability is best practice. Our priority is to listen and understand our clients financing and investment requirements in order to partner their objectives with our proven expertise.”

Bank on Our Principles

Introduction to BLME

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Strong management team

• Strong management team brings together a combination of leading experts in Islamic finance

and experienced international bankers with a proven delivery record to take the business forward within a robust risk management framework.

• BLME received FSA (Financial Services Authority) authorisation in July 2007 and it is the largest

European wholly Sharia’a compliant bank in terms of capital, balance sheet and profit.

• BLME is the only Islamic bank offering a full range of services to the UK mid‐market.
• BLME has three core divisions: Treasury, Corporate Banking, and Wealth Management which

comprises Asset Management, Private Banking and Islamic Capital Markets. Largest Islamic Bank in Europe

• BLME is the first UK bank appointed as a co‐lead on the June 2013 5 year IDB Sukuk of $1 billion.
• BLME’s US$ Income Fund is the only Sharia’a compliant fund that is rated ‘A’ by Moody’s.
• BLME was the first UK Islamic bank to offer a fixed income fund, ABL finance and Acquisition finance.
• BLME was the first Islamic bank in the UK to use the risk management tool Profit Rate Swaps.
• BLME provided the finance for the first Sharia’a compliant ‘green’ energy transaction in Europe.

Innovator of Islamic financial products and services

• BLME has a strong balance sheet in excess of £1.23 billion and healthy capital resources that are

underpinned by a high quality investor base.

• BLME was ranked 11th for capital‐asset ratio and 21st for BIS Ratio by The Banker in their Top 1000

Bank report in 2012.

• Largest shareholders include Boubyan Bank, Kuwait’s Public Institute for Social Security (PIFSS) and

Aref Investment Group. Strong capital base with high quality investors

2009 2010 On-going work with HM Treasury, UK tax authorities, Government, Bank of England and law firms to develop a new template for UK Sukuk and Sharia’a compliant liquidity instruments. 2013 Profit Rate Swaps New Islamic hedging tool for fixed rate risk. Premier Deposit Account An online deposit account for retail clients with a minimum investment of £25,000

• r $ and

€ equivalent. 2008 Energy BLME completes first UK Renewable Energy Deal. Light Industrial Building Fund (UK based) The first of our closed‐ ended asset backed funds. Launch of Sterling & Euro Share Classes for the US$ Income Fund Enabling European investors to access GCC fixed income investments. US$ Income Fund BLME’s Sharia’a $ Income Fund was the first and is the largest Sharia’a compliant fund

• f its kind in Europe.

Rated A by Moody’s in April 2013. 2011 Launch of Global Sukuk Fund Targeting a benchmark of 5%

• ver Libor. Previously

called the US$ High Yield Fund ABL finance BLME launches new ABL finance

• ffering

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Acquisition finance BLME launches Acquisition finance offering 2012 2013 Income Fund and Global Sukuk Fund Both funds move to daily dealing Islamic Capital Markets BLME launches the first UK Islamic Capital Markets offering with our first deal completing early 2011

Pioneering Product and Service Development

BLME has the broadest product and service offering of any of the UK Islamic banks Dubai Office BLME opens a representative

• ffice in the

DIFC BLME Holdings Lists on NASDAQ Dubai

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Awards

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• 2014 Best Islamic Asset Manager in Europe by the Islamic Finance News.
• 2014 Best Islamic Bank in Europe by Euromoney.
• 2013 US$ Income top percentile by Lipper Hindsight, Reuter’s fund ranking service.
• 2013 Sustainable Investment Funds Firm of the Year by Finance Monthly Global Awards.
• 2013 BLME’s Premier Deposit Account shortlisted for the Best Fixed Rate Account Provider in the Moneyfacts Awards.
• 2012 BLME Global Sukuk Fund shortlisted for the MENA Fund Manager Newcomer of the Year award.
• 2012 BLME US $ Income Fund shortlisted for MENA Fund Manager Best Fixed Income Fund of the Year.
• 2012 BLME US $ Income Fund shortlisted for the MENA Fund Manager Best Fixed Income Fund – 3 year performance award.
• 2012 The Global Sukuk Fund was rated as the top performing Sukuk Fund by Zawya.
• 2012 The US$ Income Fund was ranked 6th best performing fund out of 758 funds by Lipper Hindsight.
• 2011 Best Islamic Bank in the UK and Best Real Estate Deal of the Year by Islamic Finance News.
• 2010 – 2013 Best Islamic Institution in the UK by Global Finance Magazine.
• 2009 Best UK Leasing Provider and Best UK Leasing Deal by Islamic Finance News.
• 2009 Institutional Excellence Award by World Islamic Banking Conference.
• 2008 ‐ 2014 Best Islamic Bank in the UK

BLME’s performance and service has been recognised through awards and industry polls.

BLME Business Divisions

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Wealth Management Comprising of three departments:

• Private Banking: BLME Private Banking is dedicated to
• ffering competitive Islamic investment and financing

products to high net‐worth individuals and family offices.

• Asset Management: as an innovative and sophisticated

asset manager, BLME builds long lasting relationships with Islamic, ethically led and conventional banking clients, institutions and individuals within a Sharia’a framework.

• Islamic Capital Markets: BLME is experienced at

structuring and syndication with access to a wide range of investors in Sharia'a compliant assets. Corporate Banking BLME Corporate Banking is one of the few banks in the UK that provides a full range of products and services for the mid‐market, including:

• ABL Finance
• Acquisition Finance
• Lease Finance
• Real Estate Finance
• Trade Finance

Treasury The Treasury’s role is to manage BLME's capital, liquidity and

• funding. It is BLME’s point of contact with international banks,

financial institutions and corporate treasurers. It funds and manages BLME’s liquidity and provides innovative Sharia’a compliant hedging, and FX structures.

BLME Market Environment

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The UK Mid‐Market

• The UK Mid‐Market comprises of companies that fall at the top end of the Small and Medium Enterprise (SME) sector. They are a

growth sector with each firm contributing on average £11 million to GDP per annum (GE Capital, 2013).

• These companies can sustain debt levels of £2 to 20 million, have an enterprise value of between £5‐20 million and have anywhere

between 50‐250 employees.

• The UK mid‐market is a growth sector with total annual turnover increasing by 7% between March 2010 and March 2013

compared to average company growth of 2.9% for the same period (CBI, 2013).

• The large ‘high street’ banks such as HSBC or Lloyds are focused on either large FTSE 250 corporates or SME’s that are a priority for

the UK Government.

• BLME Corporate Banking is one of the few banks in the UK that provides a full range of products and services for the mid‐market.

There are significant opportunities for BLME in this under‐banked growth sector of the UK economy where BLME has already built a positive reputation. The GCC Market

• BLME offers similar non‐retail products to GCC banks; however, BLME’s unique selling point is that it is a UK bank.
• BLME is the only Islamic bank in the UK that has a full service offering to GCC clients including comprehensive Corporate Banking

and Treasury services in addition to Asset Management, Private Banking and Islamic Capital Markets.

• As a UK bank BLME has knowledge of the UK market, from investments to real estate coupled with a firm understanding of the

requirements and objectives of GCC investors.

Diversification

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Geographic Diversification

The Bank has minimised credit exposure to those countries most impacted by the economic crisis in the Eurozone and to the countries most affected by the political instability in the Middle East. The non‐UK EU component represented less than 3% of the Group’s total credit exposure.

1.76% 4.52% 3.14% 7.39% 4.00% 2.26% 0.38% 66.78% 4.27% 5.51%

Exposure by Country as at 31 December 2013

Bahrain Kuwait Qatar Saudi Arabia United Arab Emirates France Luxembourg United Kingdom USA Other Countries

Sector Diversification

The Group’s assets were dispersed across the following economic sectors.

14.07% 9.68% 2.56% 2.44% 0.08% 1.67% 28.91% 13.04% 2.12% 8.15% 1.51% 5.25% 2.74% 2.91% 1.31% 3.54%

Exposure by Sector as at 31 December 2013

GCC financial institutions UK financial institutions European financial institutions Other financial institutions Mining and quarrying Manufacturing Real estate Transportation and storage Government Wholesale / Retail Oil and Gas Commodities Energy Construction Telecoms Others

2013 Business Review

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2013 was a landmark year for BLME Group

• BLME is the largest Islamic bank in Europe and is the only

bank that focuses on the UK corporate mid‐market.

• First UK Islamic Bank to list on NASDAQ Dubai and to open a

representative office in Dubai.

• BLME awarded Best Islamic Bank in the UK by both IFN and

Euromoney and Best Islamic Asset Manager in Europe by IFN. Key highlights of the full year results

• 24.3% increase in Total Deposits over the period.
• 18.7% increase in Total Assets.
• Fee Income increased by over 50%.
• Net Operating Profit before Impairment Charges up by 12.3%.
• Net Profit for the year increased by 12.3%.
• Impaired Loans decreased from 5.1% to 4.0%.
• BLME’s Capital Adequacy Ratio is in excess of current and

impending Basel standards.

Key Performance Indicators 2013 2012 Pre‐tax Return on Equity (%) 2.5% 2.3% Net operating profit before tax £6.1 m £5.5 m Total Assets £1.23 bn £1.04 bn Cost to Income ratio (%) (adjusted for operating lease depreciation) 76.5% 76.4% Net fee income / Operating profit before impairment charges (%) 33.5% 24.4% Net margin (%) 2.24% 2.13% Impaired assets (%) 4.0% 5.1% Capital Adequacy Ratio (%) 19.36% 25.45% ROAA (%) 0.38% 0.42% ROAE (%) 1.79% 1.61% Earnings Per Share (pence) 2.23 1.97

Strategic Objectives

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Efficiency

• As the business grows, BLME will continue the gradual downward trend in the Cost to Income ratio

targeting 60% when adjusting for Operating Lease Depreciation.

• Generate organic growth from existing financing businesses, with a medium to long term target of

£2 billion for Total Assets.

• Develop the Bank’s fee generative businesses, such as Asset Management and to maintain Net Fee

Income above 20% of Operating Profit Before Impairments.

• Medium to long term strategy to grow Profit before Tax to over £20 million.

Balance Sheet and Operating Income Growth Shareholders’ Returns

• While targeting an organic growth strategy BLME will continue to employ capital prudently and

maintain robust capital adequacy and liquidity ratios. Capital Adequacy

• Long term target for Pre‐tax Return on Equity of 10%.
• BLME will aim to pay its first dividend when the financial position of the BLME Group justifies the

payment of a dividend Treating Customers Fairly

• BLME is a customer focussed business with product sustainability at its core and an established

culture for Treating Customers Fairly (TCF) based on our principles of respect, integrity and transparency.

• This TCF culture is further enhanced through BLME being a fully compliant Sharia’a bank, where
• penness and shared risk principles are enshrined

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UK and European Islamic Banking Markets

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Europe and UK Islamic Banking Markets

• The Islamic finance industry is showing significant growth and has a 3.3% share of global Islamic banking assets (Thomson Reuters,

2013) with a compounded growth rate of over 20% (IDB, 2012). In March 2014 Standard and Poor’s Ratings Services believe that this double digit growth will be sustained over the next 2 to 3 years. BLME has maintained a leading position in the UK and European Islamic finance market.

• In terms of UK Sharia’a based banks, BLME’s Balance Sheet exceeds the sum of the other six Sharia’a compliant banks. In addition

BLME’s capital resources and operating income are almost the same size as the other six banks combined.

• BLME is the only Islamic bank in the UK that has a full service offering including comprehensive Corporate Banking and Treasury

services in addition to Asset Management, Private Banking and Islamic Capital Markets.

• BLME is the first UK bank appointed as a co‐lead on the June 2013 5 year IDB Sukuk of $1 billion.
• BLME’s US$ Income Fund is the only Sharia’a compliant fund that is rated ‘A’ by Moody’s.
• BLME has been awarded best Islamic bank in Europe from Islamic Finance News for the past six years.
• BLME was awarded Best International Asset Manager by Zawya/Reuters in 2013 and Euromoney in 2014.

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Europe and UK Islamic Banking Markets

The UK continues to support and promote Islamic finance BLME plays a key role in the European Islamic finance industry and contributes to policy and thought leadership.

• BLME works with the UK Government and political parties via the UK Islamic Finance Secretariat, and City UK.
• BLME has consulted with the Bank of England, Her Majesty’s Treasury (HMT) and Her Majesty’s Revenue and Customs (HMRC) on

liquidity and taxation in the UK Islamic finance Industry.

• The UK is the only European country to fully develop its legal and regulatory infrastructure to support Islamic finance.
• The UK Islamic market place was heavily promoted when the World Islamic Economic Forum (WIEF) was hosted by the UK in

October 2013, the first time it was held outside a Muslim country.

• BLME continues to participate in discussions with the Government and HMT regarding the issuance of the 2014 UK Sovereign Sukuk.
• The UK Islamic finance market is still relatively young with the first of the 6 authorised UK Sharia’a based banks launching in 2005,

three of the major market factors that impact Islamic banks are: ̶ lack of liquidity instruments ̶ a developing syndication market ̶ lack of UK Government Sukuk issuance. This issue should be resolved after the UK Prime Minster, David Cameron announced at the WIEF that the UK would issue a Sukuk in 2014.

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BLME’s Business Divisions

Corporate Banking provides senior debt and occasionally mezzanine financing for UK mid‐market companies ranging from FTSE250 companies to family owned businesses. BLME is the only Islamic bank that focuses its Corporate Banking offering on the UK mid‐market. BLME Corporate Banking comprises five teams: ̶ Real Estate Finance ̶ UK and US Leasing including Operating and Finance Leases ̶ Trade Finance ̶ ABL Finance ̶ Acquisition Finance Facilities are either separate or offered as one package. We have provided senior debt syndicated facilities and have introduced financing counterparties from the GCC for additional capital. Our key sector focus: ̶ Real Estate ̶ Healthcare ̶ Energy ̶ Transportation

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BLME Corporate Banking

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ABL Finance This business was established in March 2012. BLME’s ABL Finance team provides flexible whole business funding solutions that support and grow with clients’ businesses. Typically BLME offers funding secured against a combination of trade receivables, inventories, property and plant based on an agreed borrowing base. BLME is a member of the leading industry organisation, the Asset Based Finance Association. Trade Finance BLME provide flexible financing for import and export, including working capital and warehouse financing. We have developed competitive structures that enable us to participate in inventory financing, unfunded participations in structured trade finance transactions, the issuance of Letters of Credit, VAT and confirming and /or negotiating Letters of Credit from Islamic banks.

BLME Corporate Banking

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BLME Corporate Banking

Real Estate Finance BLME is focused on financing the development of commercial and residential property mainly in London, Midlands, South‐East and South‐West regions of the UK. Our areas of expertise include

• Single residential units in prime London
• Student accommodation
• Retirement housing
• Mixed use schemes

Acquisition Finance The team works closely with existing management teams, private equity investors and corporate finance advisors to provide senior debt for UK mid‐market corporates making material acquisitions of new businesses or product lines, or management buy‐outs. Typical transaction sizes are £5 million to £20 million.

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BLME Corporate Banking

Leasing BLME has an experienced team of leasing specialists providing leasing solutions for mainly UK but also US clients. The team has cumulatively completed more than £500 million of leasing transactions generally funding hard assets, particularly in the transportation, renewable energy and healthcare sectors. Leasing offers the following products:

• Finance lease
• Operating leases (where BLME manages the residual value exposure)
• Hire purchase
• Block finance

BLME is a member of the leading industry organisation, the UK Financing Lease Association

BLME Wealth Management

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Private Banking From the Private Banking offices in the West End of London, BLME provides a distinctive Wealth Management service to High Net Worth Individuals, their families and businesses, offering a range of Sharia’a compliant services and

• products. Typical products and services include:
• Financing the acquisition of residential real estate in London and selective

country estates

• Supplement financing with a range of complimentary services supplied by

selected partners such as: ̶ Real estate search and acquisition ̶ Interior design ̶ Development opportunities ̶ Property management

• BLME Investments Funds
• Custom mandates/portfolios

Case Study BLME financed two properties for an Ultra High Net Worth Individual. One was a commercial

• ffice building with the other being one house

divided into three luxury apartments in the West end of London. BLME can support clients looking to expand their Real Estate portfolio by sourcing properties and advising on the acquisition process.

BLME Wealth Management

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Asset Management BLME Asset Management is a dynamic organisation that combines industry experience and financial market expertise to offer innovative investment solutions across a range of asset classes. Our experienced team is dedicated to delivering client‐focused, investment solutions tailored to their client’s specific requirements. BLME Asset Management offers investors a range of distinctive products and solutions that cater for their specific investment and risk appetites including fixed income and real estate. Our investment professionals have experience of investing in:

• Fixed Income

̶ Money Market instruments ̶ Sukuk (Bonds) ̶ Ijara (Leases)

• Real Assets

̶ Leases ̶ Trade Finance

• Real Estate

̶ Industrial ̶ Commercial ̶ Residential ̶ Healthcare

• Equities

Case Study BLME has launched a variety of funds to provide investors with a pooled solution of products across asset classes exhibiting differing risk and return profiles. These include: Fixed Income – $Income Fund Global Sukuk Fund Real Estate – Light Industrial Building Fund Corporate Banking

BLME Wealth Management

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Case Study BLME arranged $17 million syndication of an Equipment Leasing transaction for intermodal container boxes by acquiring the containers and their underlying leases from a seller, arranging a syndicate of participating investors and acting as investment agent for the transaction. Islamic Capital Markets Islamic Capital Markets focuses on the structuring and distribution

• f Sharia'a compliant assets.

It manages large club transactions in Equipment Leasing and Real Estate and has actively participated in a number of Syndicated Murabaha and project finance transactions internationally. We have access to a wide range of investors in Sharia'a compliant assets. We can participate in and structure Syndicated Murabaha deals for short term (up to one year) working capital requirements as well secured term financing needs (up to five years). Case Study BLME was appointed Co‐lead Manager of the June 2013 US$ 1 billion Sukuk issue by Islamic Development Bank (IDB).

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BLME Treasury

The Treasury division is BLME’s point of contact with international banks, financial institutions and corporate treasurers.

• Treasury’s role is to manage the bank’s capital, liquidity and funding
• Single source of internal funding and pricing for the bank
• The Treasury division offers the following Sharia’a compliant products:

̶ Money market deposits ̶ Premier Deposit Account (“PDA”) available in Pound Sterling, US Dollar, and Euro for terms between 1 and 5 years. ̶ Foreign Exchange ‐ spot and forward ̶ Profit Rate Swaps

• In 2013 one of the major accomplishments was the sizeable growth and diversification in the bank’s liability base:

̶ The number of depositors increased to 3,713 (2012: 3,279) ̶ BLME Customer deposits grew from £257 million to £270 million in the past 12 months ̶ Strengthened BLME’s ability to meet the increasing regulatory demands for banks to establish longer term sources of funding

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Financial Highlights

2013 Financial Results Highlights

• In line with the Bank’s strategic aims Total Assets increased by

18.7% year on year to £1.23 billion largely due to the increase in Net Financing Arrangements and Finance Leases to £794

• million. The increase in financing was funded by the 24.3%

growth in Total Deposits to £957 million.

• Balance Sheet growth, particularly property financing, led to a

year on year increase in Net Margin Income by 29.9% and in Net Fee Income by 54.2%.

• Net Loss of £0.6 million on Investment Securities, compares

with a gain of £3.6 million in 2012, due to challenging fixed income (Sukuk) markets especially during the middle of 2013

• Total Consolidated Operating Income grew by 6.8% year on

year to £56.0 million.

• Total Operating Expenses, up by 5.9% year on year to £47.8

million, were contained despite one off costs for the Dubai representative office and professional fees for listing on NASDAQ Dubai, in addition to product development and IT infrastructure costs.

• Operating Profit Before Impairments grew by 12.3% year on

year to £8.2 million.

• Net Profit for the year increased by 12.3% to £4.3 million.

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Balance Sheet 2013 2012 (+/‐) £ million £ million % Total Assets 1,234 1,039 18.7% Financing arrangements and finance lease 794 511 55.2% Total Deposits 957 770 24.3% Income Statement Net margin income 22.3 17.1 29.9% Net fee income 2.7 1.8 54.2% Net loss/(gain) on investment securities (0.6) 3.6 N/A Net gain/(loss) on Investment property 0.7 (1.0) N/A Operating lease income 26.9 27.3 (1.4%) Other income 4.0 3.7 5.8% Total consolidated operating income 56.0 52.5 6.8% Operating expenses (47.8) (45.2) 5.9% Operating profit before impairments 8.2 7.3 12.3% Impairment allowances (2.1) (1.8) 19.2% Operating profit before tax 6.1 5.5 10.1% Tax (1.8) (1.7) 4.8% Net profit for the year 4.3 3.8 12.3%

Consolidated Balance Sheet Assets

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250 155 253 395 324 32.9% 21.8% 31.3% 38.0% 26.3%

2009 2010 2011 2012 2013 Investment securities Due from financial institutions Cash and balances with banks Liquid Assets / Total Assets

Liquid Assets (£ million)

759 712 807 1,039 1,234 2009 2010 2011 2012 2013 Other assets Investment property Operating lease assets Investment securities Cash and Due from FIs Financing & Finance leases

Total Assets (£ million)

• Total Assets have grown in 2013 by 18.7% to

£1.23 billion, driven by the increase in Financing Arrangements of 65.4% and Finance Lease Assets of 31%.

• Corporate Banking grew in 2013 with an

increase in Property Development Financing Facilities and Shorter Term financing such as Trade Finance.

• The total of Financing Arrangements, Finance

Leases and Operating Leases increased by 55.2% year on year to £871 million.

• The reduction in Liquid Assets to 26.3% of Total

Assets (2012: 38.0%) demonstrated the Bank’s success in utilising the excess cash that was held at the end of 2012 whilst continuing to maintain prudent liquid asset buffers for regulatory purposes.

482 531 523 596 871 3.6% 9.1% ‐2.8% 18.9% 55.2%

2009 2010 2011 2012 2013 Operating lease assets Finance lease receivables Financing arrangements Growth y‐o‐y

Financing Arrangements and Leasing (£ million)

30.3 40.4 43.0 52.5 56.0 2009 2010 2011 2012 2013 Other operating income Investment properties Investment securities Net fee income Operating lease income Net margin income

Total Consolidated Operating Income (£ million)

Consolidated Income Statement

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• Total Consolidated Operating Income increased

by 6.8% year on year to £56.0 million

• Net Margin increased by 11bps to 2.24%.
• Net Fee Income increased by 54.2% year on

year to £2.7 million as fee generative businesses continue to grow. Net Fee Income was 33.5% of Operating Profit Before Impairment Charges (2012: 24.4%).

• Net Loss of £0.6 million on Investment

Securities, compares with a gain of £3.6 million in 2012, due to challenging fixed income markets especially during the middle of 2013.

• Operating Profit before Impairments has

consistently grown reflecting the Bank’s year on year Balance Sheet growth and the improving utilisation of capital.

1.88% 2.85% 2.70% 2.13% 2.24% 2009 2010 2011 2012 2013

Net Margin (%)

2.1 4.0 4.4 7.3 8.2 (13.2) 3.5 (8.9) 3.8 4.3 2009 2010 2011 2012 2013 Operating profit before impairment charges Net profit/(loss) after tax

Profitability (£ million)

Operating Expenses and Efficiency

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28.2 36.5 38.7 45.2 47.8 2009 2010 2011 2012 2013 Other operating expenses Operating lease depreciation Personnel expenses

Total Operating Expenses Components (£ million)

• Total Operating Expenses, up by 5.9% year on

year to £47.8 million, were contained despite

• ne off listing costs, development and

infrastructure costs.

• Personnel Expenses were up by 10.6% to £13.4

million despite an increase of 15% in the number of employees. The Group’s permanent employees increased to 99 at the end of the period (2012: 86).

• The Bank has a gradual downward trend in the

Cost Income ratio as the business continues to grow.

60 68 77 86 99 2009 2010 2011 2012 2013

Total Number of Permanent Employees at the end of the period

93.0% 90.2% 89.9% 86.1% 85.4% 88.5% 83.6% 80.6% 76.4% 76.5% 2009 2010 2011 2012 2013

Cost to Income Ratio

Cost / Income (%) Cost / Income (%) adjusted for

• perating lease depreciation

Deposits and Liquidity

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• Total Deposits increased by 24.3% year on year

to £957 million. The year on year growth of Customer Deposits was 19.7% and growth of Due to Financial Institutions was 26.6%.

• The number of depositors increased to 3,713, a

13.2% growth from 2012. In addition to the increase in depositors the average deposit amount has decreased from £1.16 million in 2011 to £0.26 million largely due to the success

• f the Bank’s online deposit product, Premier

Deposit Account.

• Over time the Bank has become significantly

less reliant on short term financing which demonstrates the increasing diversity of the funding base.

2009 2010 2011 2012 2013 Less than 1 month 1‐3 months 3‐12 months 1‐5 years

Funding Maturity Profile

250 155 253 395 324 48.5% 33.3% 44.5% 49.4% 32.7%

2009 2010 2011 2012 2013 Investment securities Due from financial institutions Cash and balances with banks Liquid Assets / Total Liabilities

Liquid Assets / Total Liabilities (£ million)

501 448 552 770 957 22 182 477 3,279 3,713

2009 2010 2011 2012 2013

Deposits (£ million) and Number of Depositors

Customer deposits Due to financial institutions Number of depositors

Credit Quality

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• During 2013 there was a single counterparty

default where the majority of the obligation was recoverable, but which resulted in a write off of £1.9 million.

• Other than this there have been no new

provisions of any significance in 2013 and due to an increase in the asset base there has been a reduction in Impaired Assets as a percentage

• f Total Financing and Operating Lease Assets

from 5.1% to 4.0%.

• BLME is an asset‐based bank which is reflected

in the Collateral which represents 88.7% (2012: 92.8%) of the total of Financing Arrangements and Finance Lease exposure. Collateral represented 62.8% (2012: 52%) of the Group’s total credit exposure.

5.9% 3.3% 6.5% 5.1% 4.0% 47.7% 39.4% 53.1% 58.3% 58.7%

2009 2010 2011 2012 2013

Impaired Assets to Gross Loans and Coverage Ratio

Impaired Assets/ Gross Loans (%) Provision Coverage (%) 658 601 686 908 1,121 44.1% 51.8% 46.5% 52.3% 62.8% 71.5% 70.4% 74.2% 92.8% 88.7%

2009 2010 2011 2012 2013 Finance lease receivables Financing arrangements Investment securities Due from financial institutions Cash and balances with banks Total collateral (%) Financing and finance lease collateral (%)

Credit Exposure and Collateral (£ million)

Capital Adequacy

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• In line with BLME’s business growth plans, the

Capital Adequacy Ratio decreased to 19.36% (2012: 25.45%), remaining comfortably in excess of current and impending Basel standards.

• Due to the Bank’s strong capital base, it is well

positioned to deliver its growth strategy whilst continuing to meet the higher capital ratios required of banks leading to 2018.

• Risk weighted Assets (RWA) increased by 31.9%

demonstrating the increase in Financing Arrangements and reduction in lower weighted Cash Balances.

Pillar 1 Capital Requirements 2009 2010 2011 2012 2013 (£ million) Credit risk 38.3 42.0 46.0 60.1 79.3 Market risk – foreign exchange PRR 0.8 0.1 0.2 0.0 0.1 Counterparty risk capital component 0.7 0.3 0.6 0.2 0.2 Operational risk 3.5 3.4 4.9 6.7 7.3 Total Pillar 1 capital requirement 43.3 45.8 51.8 67.0 87.0 Total regulatory capital in place (after deducting material holdings) 211.5 212.0 184.6 191.2 191.8 Excess of capital in place over minimum requirement under Pillar 1 168.2 166.2 132.8 124.2 104.9 Risk Weighted Assets (RWA) 478.9 524.9 574.6 751.3 990.8 RWA / Total Assets (%) 63.1% 73.7% 71.2% 72.3% 80.3%

44.16% 40.40% 32.13% 25.45% 19.36% 2009 2010 2011 2012 2013

Capital Adequacy Ratio

Segmental Reporting – Corporate Banking

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• Corporate Banking’s Assets grew from £419

million to £684 million in 2013 reflecting the increase in Financing Arrangements and Finance Leases over the period.

• The Division’s most established businesses,

Leasing and Property Finance, continued to grow and develop their product offerings, and are recognised by the market as key players in their respective sectors.

• The more recently established departments of

Trade Finance, ABL Finance and Acquisition Finance are increasingly contributing to Corporate Banking’s performance.

• Corporate Banking continues to grow its market

share and is able to provide a full suite of products to a diverse range of companies within the UK mid‐market.

34.8 41.9 2012 2013 Other operating income Net fee income Operating lease income Net margin from financing and investing activities

Corporate Banking Total Operating Income (£ million)

419.7 683.8 2012 2013

Corporate Banking Reportable Segment Assets (£ million)

8.4 13.9 2012 2013

Corporate Banking Segment Contribution (£ million)

62.9% 20.4% 66.1%

Segmental Reporting– Wealth Management

35

• Private Banking continues to contribute to the

Bank’s growing client base. The recently launched Property Sourcing offering built momentum and began to contribute to BLME’s Fee Income, a trend that we expect to continue.

• Asset Management continues to mature with an

increase in assets under management and listings on fund platforms. The US$ Income Fund was ranked in the top percentile by Reuter’s fund ranking service, Lipper Hindsight.

• In 2012 there was a loss on investment

properties due to the stamp duty costs for the Light Industrial Building Fund.

• Net Loss of £0.6 million on Investment

Securities (2012: gain of £3.6 million) due to challenging fixed income (Sukuk) markets.

• ICM performed well in 2013, participating in

several high profile deals such as Yaas Sukuk. ICM’s position within Wealth Management has improved its access to the GCC market and has strengthened the Bank’s product distribution in the GCC.

• The Dubai representative office is now open

and is already providing meaningful introductions in the region to the Wealth Management Division.

8.19 7.00 2012 2013 Other operating income Net fair value gains / (losses) on investment properties Net fair value (losses) / gains on investment securities Net fee income Net margin from financing and investing activities

Wealth Management Total Operating Income (£ million)

222.1 237.8 2012 2013

Wealth Management Segment Assets (£ million)

0.97 1.47 2012 2013

Wealth Management Segment Contribution (£ million)

7.1% ‐14.5% 50.4%

Segmental Reporting – Treasury

36

• 2013 was difficult time for the Treasury Division,

following a strong performance the previous year, mainly due to the challenging fixed income (Sukuk) markets, especially during the middle of the year.

• Over 2013 there was a strategic reduction in

Treasury Assets as the Bank increased the higher yielding financing businesses.

• Treasury successfully diversified BLME’s funding

base with new depositors, in particular by attracting new customers to the BLME Premier Deposit Account (PDA). The total value of PDAs has grown from £236 million to £270 million

• ver the past 12 months. In addition, the

number of depositors increased from 3,279 to 3,713 over the period.

• This increase in the term, value and number of

depositors has strengthened BLME’s ability to meet the regulatory demands for banks to establish longer term sources of funding.

384.1 305.7 2012 2013

Treasury Reportable Segment Assets (£ million)

8.4 6.3 2012 2013

Treasury Segment Contribution (£ million)

9.37 7.05 2012 2013 Other operating income Net fair value (losses) / gains on investment securities Net fee income Operating lease income Net margin from financing and investing activities

Treasury Total Operating Income (£ million)

‐20.4% ‐24.7% ‐25.2%

37

Appendix 1 BLME Financial Results

Appendix 1 – Financial Performance 2009 – 2013

Consolidated Income statement

2013 2012 2011 2010 2009 £ £ £ £ £ Income Income from financing and investing activities 43,208,042 30,779,337 25,721,315 23,716,697 24,544,879 Returns to financial institutions and customers (20,933,149) (13,637,879) (9,430,933) (7,393,355) (12,606,005) Net margin 22,274,893 17,141,458 16,290,382 16,323,342 11,938,874 Fee and commission income 3,204,510 2,007,364 735,263 1,066,741 1,618,912 Fee and commission expense (464,109) (229,940) (92,915) (92,048) (1,159,224) Net fee income 2,740,401 1,777,424 642,348 974,693 459,688 Net fair value gains / (losses) on investment securities (552,442) 3,601,119 (975,203) 1,665,384 1,694,748 Net fair value losses on investment properties 718,381 (1,049,455) (326,155) ‐ (702,906) Operating lease income 26,869,782 27,250,053 25,259,609 20,289,306 14,773,253 Other operating income 3,962,947 3,746,636 2,128,353 1,185,872 2,119,344 Total operating income 56,013,962 52,467,235 43,019,334 40,438,597 30,283,001 Expenses Personnel expenses (13,405,238) (12,145,670) (9,519,860) (11,373,644) (7,433,852) Operating lease depreciation (21,315,726) (21,646,350) (20,606,721) (16,181,345) (11,831,250) Other depreciation and amortisation (273,903) (383,660) (667,208) (986,824) (1,089,126) Other operating expenses (12,466,172) (10,174,384) (7,820,969) (7,870,338) (7,808,339) Change in third party interest in consolidated funds (383,600) (840,720) (50,732) (58,499) 2,120 Total operating expenses (47,844,639) (45,190,784) (38,665,490) (36,470,650) (28,160,447) Operating profit before impairment charges 8,169,323 7,276,451 4,353,844 3,967,947 2,122,554 Net impairment (charge) / credit on financial assets (2,099,538) (1,761,293) (15,202,534) 1,047,977 (21,011,494) Net operating profit / (loss) before tax 6,069,785 5,515,158 (10,848,690) 5,015,924 (18,888,940) Tax (expense) / credit (1,755,059) (1,674,403) 1,950,700 (1,498,247) 5,648,013 Profit / (loss) for the year 4,314,726 3,840,755 (8,897,990) 3,517,677 (13,240,927)

Appendix 1 – Financial Performance 2009 – 2013

Balance sheet summary

2013 2012 2011 2010 2009 £ £ £ £ £ Assets Cash and balances with banks 65,649,884 159,600,938 97,298,498 37,228,323 96,272,364 Due from financial institutions 133,390,526 132,413,746 76,671,550 94,169,310 133,117,167 Investment securities 128,014,007 104,840,753 81,401,505 26,774,748 23,225,067 Financing arrangements 594,571,253 359,379,248 299,102,091 323,998,989 303,970,359 Finance lease receivables 199,156,031 151,925,014 131,012,099 118,299,503 101,488,523 Operating lease assets 77,002,129 84,930,433 93,282,765 89,187,818 76,661,303 Profit rate swaps ‐ ‐ ‐ ‐ 264,936 Investment properties 24,340,000 27,816,788 12,858,712 7,232,573 6,915,715 Property and equipment 649,690 406,353 452,346 776,094 1,180,286 Intangible assets 1,265,924 734,532 474,018 419,263 792,972 Other assets 7,809,064 13,217,372 8,437,532 9,659,996 10,610,452 Current tax asset ‐ ‐ 500,000 500,000 ‐ Deferred tax assets 1,864,783 3,693,000 5,640,300 3,687,131 4,216,084 Total assets 1,233,713,291 1,038,958,177 807,131,416 711,933,748 758,715,228 Liabilities Due to financial institutions 648,417,624 512,113,261 500,474,105 424,132,046 493,374,983 Due to customers 308,479,501 257,747,298 51,031,160 24,253,449 8,037,000 Profit rate swaps 1,972,903 5,308,045 7,268,757 6,553,819 3,109,081 Third party interest in consolidated funds 13,951,246 11,235,024 1,763,834 1,081,346 791,484 Other liabilities 18,109,128 12,905,427 7,953,098 8,921,109 9,910,179 Total liabilities 990,930,402 799,309,055 568,490,954 464,941,769 515,222,727 Equity Share capital 48,983,423 48,983,423 48,933,422 48,933,422 48,928,422 Merger reserve 15,999,851 190,999,851 ‐ ‐ ‐ Other reserve 15,226,477 15,226,477 ‐ ‐ ‐ Share premium ‐ ‐ 206,226,328 206,226,328 206,206,328 Fair value reserve (524,046) (49,624) 213,567 (238,645) (514,550) Cash flow hedging reserve (2,121,576) (3,231,046) (4,186,084) (3,717,416) (2,657,323) Share‐based payment reserve 3,210,307 1,069,056 4,403,930 3,044,114 2,191,163 Foreign currency translation reserve (65,980) (61,825) (72,757) (75,870) 36,092 Retained losses 162,074,433 (13,287,190) (16,877,944) (7,179,954) (10,697,631) Total equity attributable to equity holders of the Bank 242,782,889 239,649,122 238,640,462 246,991,979 243,492,501 Total liabilities and equity 1,233,713,291 1,038,958,177 807,131,416 711,933,748 758,715,228

Appendix 1 – Segment Information - 2013

40

For the year ended 31 December 2013 Treasury Division Corporate Banking Wealth Management Unallocated items Total £ £ £ £ £ Net margin from financing and investing activities 4,474,238 14,031,417 3,769,238 ‐ 22,274,893 Operating lease income 1,618,896 25,250,886 ‐ ‐ 26,869,782 Net fee income 576,200 1,786,999 327,192 50,010 2,740,401 Net fair value losses on investment securities (460,260) ‐ (92,182) ‐ (552,442) Net fair value gains on investment properties ‐ ‐ 718,381 ‐ 718,381 Other operating income 845,120 861,156 2,274,005 (17,334) 3,962,947 Total operating income 7,054,194 41,930,458 6,996,634 32,676 56,013,962 Directly attributable segment expenses (753,958) (4,642,722) (5,147,985) ‐ (10,544,665) Operating lease depreciation ‐ (21,315,726) ‐ ‐ (21,315,726) Net impairment charge on financial assets ‐ (2,099,538) ‐ ‐ (2,099,538) Change in third party interest in consolidated funds ‐ ‐ (383,600) ‐ (383,600) Net segment contribution 6,300,236 13,872,472 1,465,049 32,676 21,670,433 Common costs not directly attributable to segments (15,600,648) Net operating profit before tax 6,069,785 Reportable segment assets 305,708,952 683,807,148 237,836,517 6,360,674 1,233,713,291

Appendix 1 – Segment Information – 2012

41

For the year ended 31 December 2012 Treasury Division Corporate Banking Wealth Management Unallocated items Total £ £ £ £ £ Net margin from financing and investing activities 6,122,485 7,067,038 3,951,935 ‐ 17,141,458 Operating lease income 1,404,533 25,845,520 ‐ ‐ 27,250,053 Net fee income 840,285 740,352 114,439 82,348 1,777,424 Net fair value (losses) / gains on investment securities 831,900 ‐ 2,769,219 ‐ 3,601,119 Net fair value gains / (losses) on investment properties ‐ ‐ (1,049,455) ‐ (1,049,455) Other operating income 174,843 1,171,711 2,400,082 ‐ 3,746,636 Total operating income 9,374,046 34,824,621 8,186,220 82,348 52,467,235 Directly attributable segment expenses (949,344) (3,063,422) (6,371,518) (75,917) (10,460,201) Operating lease depreciation ‐ (21,646,350) ‐ ‐ (21,646,350) Net impairment charge on financial assets ‐ (1,761,293) ‐ ‐ (1,761,293) Change in third party interest in consolidated funds ‐ ‐ (840,720) ‐ (840,720) Net segment contribution 8,424,702 8,353,556 973,982 6,431 17,758,671 Common costs not directly attributable to segments (12,243,513) Net operating profit before tax 5,515,158 Reportable segment assets 384,132,600 419,712,282 222,143,646 12,969,649 1,038,958,177

42

Appendix 2 Corporate Governance

Appendix 2 – Current Board of Directors

43

Name Date of Appointment to BLME plc Date of Appointment to BLME Holdings plc Committee Memberships Chairmanships Adel Abdul Wahab Al‐Majed 6 December 2012 26 April 2013 Chairman of the Board Sheikh Abdullah Jaber Al‐Ahmed Al‐Sabah 22 October 2007 26 April 2013 Nominations Vice Chairman of the Board Audit Remuneration Risk Humphrey Richard Percy 21 September 2006 24 April 2013 Executive Richard Radway Williams 28 November 2006 24 April 2013 Executive Nigel Brodie Denison 28 November 2006 24 April 2013 Executive Neil Jonathan Holden 1 November 2006 26 April 2013 Audit Chairman of the Remuneration Committee (Independent) Risk Remuneration Frank Willem Vermeulen 1 January 2007 26 April 2013 Nominations Chairman of the Audit Committee (Independent) Audit Risk Michael Williams 2 March 2012 26 April 2013 Risk Chairman of the Risk Committee (Independent) Remuneration Zeyad T. Al‐Mukhaizeem 18 October 2013 7 February 2014 Audit (BLME plc) Remuneration (BLME plc)

Appendix 2 – Sharia’a Supervisory Board

44

• To ensure compliance with the principles of Sharia’a, transactions and agreements are reviewed and approved by the Sharia’a

Supervisory Board (“SSB”) whose governance is in addition to the conventional regulation that applies to all UK based financial institutions.

• The SSB responsibility is to form an independent opinion, based on their review of the Group’s operations, agreements and

transactions.

• The Group's management responsibility is to implement the decisions of the SSB.
• The SSB members are as follows:

̶ Sheikh Dr. Abdulaziz Al‐Qassar (Chairman) ̶ Sheikh Dr. Esam Khalaf Al‐Enezi ̶ Sheikh Dr. Mohammed Daud Bakar

Appendix 2 – BLME Corporate Governance Structure

45

BLME plc Board of Directors Sharia’a Board Chief Executive Officer Head of Compliance Risk Committee Audit Committee Remuneration Committee Nominations Committee IT Committee Executive Committee Investment Committee Credit Committee Operations Committee ALCO and Risk Committee Asset Management Investment Committee BLME Holdings plc Board of Directors

46

Appendix 3 Risk Management

Appendix 3 – Risk Management

47

BLME adopts the risk management model known as the ‘three lines of defence’ governance model. This is the model of risk management that sits below the Board to implement and control the decisions on strategy, risk and capital that are taken by the

• Board. The framework for the oversight and management of risk is as follows:
• First line: Management ‐ responsibility for implementing strategy and the establishment and maintenance of internal control

and risk management in the business. This includes senior management and business line heads.

• Second line: Risk Management – operating a risk management framework within which risk policies are set, overseen and
• challenged. This includes the Risk Management Committee, Credit and Risk Management Departments, Sharia’a Supervisory

Board, and Compliance.

• Third line: Assurance – providing independent and objective assurance of the effectiveness of internal controls established by

the first and second lines of defence. This is provided by the Internal and External Audit functions, reporting to the Audit Committee, and by the Sharia’a Supervisory Board.

Appendix 3 – Risk Management

ICAAP*

• Credit Risk

Credit Policy

• Matrix limits
• RV parameters
• Large exposures
• Concentration limits
• Credit process

Management

• Internal rating techniques
• Active daily management
• Credit risk reporting and

control

ILAA**

• Liquidity Risk

Liquidity Policy

• Regulatory limits
• Internal Ratios
• Contingency Funding Plan

Management

• Daily projections
• Daily cash management
• Liquidity reporting and

control

ICAAP*

• Market Risk

Market Risk Policy

• Dealer limits
• Stress testing

Management

• PV01 Limits
• Mark to market techniques
• Stop loss mechanisms
• Market risk reporting and

control

Governance Governance Governance Board Risk Committee Board Risk Committee Board Risk Committee Executive Committee Executive Committee Executive Committee Counterparty Credit Risk Committee Asset and Liability Committee Asset and Liability Committee

* ICAAP – Internal Capital Adequacy Assessment Process ** ILAA – Individual Liquidity Adequacy Assessment 48

49

Appendix 4 Human Capital & Key Management

Appendix 4 – Human Capital

50

The Group’s performance and growing market reputation have been materially assisted by the quality of the Bank’s employees who are a key asset.

• The Group's staff skills, commitment and professionalism remain of the highest order. The Group maintains its commitment

to promote the Islamic Finance Qualification (IFQ), and continues to provide employee training using the Chartered Institute for Securities and Investment (CISI).

• The Group continues to invest in the recruitment of key professionals in the targeted business areas and to ensure that it

remains fully compliant with the increasing regulatory requirements.

• Staff retention and development have been enhanced by the Group’s commitment to implement strategically aligned

employee incentive schemes under the guidance of the Remuneration Committee. 2009 2010 2011 2012 2013 Total Number of permanent employees of the Group at the end of the period 60 68 77 86 99

Appendix 4 – Key Management

51

Humphrey Percy ‐ Executive Director and CEO Humphrey joined BLME as Chief Executive Officer in August 2006. Humphrey has more than 30 years of international banking experience. In the course of his career he has worked at J. Henry Schroder Wagg, Barclays Merchant bank (later Barclays de Zoete Wedd/BZW) and WestLB where he held positions including CEO, Managing Director, General Manager, and Head of Global Financial Markets. Humphrey is experienced in building new functions and product areas, and has managed start up businesses within both BZW and WestLB as well as founding his own business in 2002 where he remains non‐executive Chairman. Richard Williams ‐ Executive Director and Chief Financial Officer Richard is Chief Financial Officer of the Company and joined BLME as Chief Financial Officer and Company Secretary in November 2006. Having qualified as a Chartered Accountant with KPMG in 1980, Richard’s early career in investment banking was spent with Chase Manhattan, Credit Agricole and Bankers Trust. He then spent 10 years at Robert Fleming & Co setting up their Global Equities Derivatives business, including three years in Hong Kong with Jardine Fleming. Richard also has experience with start‐up companies and in private equity with Legal & General Ventures. Nigel Denison ‐ Executive Director and Head of Wealth Management and Treasury Nigel is an executive Director of the Company and joined BLME as Director and Head of Treasury in November 2006. In 2009 he established the Asset Management business and in 2011 took over the Private Banking unit creating a single Wealth Management division. Before joining BLME he was Head of European Distribution for WestLB’s Global Markets unit which included treasury, capital markets and emerging markets. Nigel began his career at Barclays Merchant Bank (later Barclays de Zoete Wedd/BZW), where he became Head of Trading for Barclays Swaps and Options European business, based in London. He then worked in New York where he ran the derivatives trading operations for Barclays.

Appendix 4 – Key Management

52

Jervis Rhodes ‐ Director and Head of Corporate Banking Jervis graduated from Cambridge University and has spent his career in banking. In 1987 he joined NM Rothschild and was appointed as a board director in 1999. He moved to Singer & Friedlander in 2003 where he was responsible for acquisition finance, trade finance and corporate banking. In May 2006 he was appointed Chief Executive of Ruffler Bank until its sale. He subsequently joined BLME in May 2010. Jervis has also been a member of the boards of directors at Aldermore Bank Plc, Aldermore Holdings Limited and Aldermore Bank Nominees Limited. Paul Gospage – Chief Operating Officer Paul joined BLME in January 2013 as Chief Operating Officer. Paul has more than 25 years investment banking experience, covering all aspects of front to back office operational infrastructure. In addition he has extensive experience of control, governance and management as well as oversight of IT development and system architectures. Previously Paul worked at Merrill Lynch for 19 years in London, New York, Hong Kong, Tokyo, Singapore and Ireland where he held a number of senior leadership positions including Global Director of the Foreign Exchange Group, Head of Fixed Income & Derivatives Audit, Head of European Operations and Settlements and COO of EMEA Corporate Services. Latterly, Paul was the COO of EMEA IT Infrastructure at Credit Suisse. Stephen Mapes‐ Head of Risk Management and Compliance Stephen joined BLME as Head of Compliance in January 2013 and became Head of Risk Management in November 2013. Stephen has

• ver 15 years of experience in Compliance and Operational Risk. He was a Controls Assurance Director at Cofunds Limited from 2005

to 2011 in charge of Financial Crime, Compliance and Internal Audit. Prior to this he held senior compliance positions at Schroder Unit Trusts and Schroder Investments in addition to other compliance support functions at Norwich Union. Mark Lynch ‐ Head of Treasury Mark Lynch joined BLME in August 2007 as Assistant Director, Markets Division. Prior to this he was Assistant Director at Dexia Bank Belgium, London responsible for ALM and cash and liquidity management activities in their Treasury. He began his career at the Royal Bank of Scotland in 1985, before moving on to Banque Internationale á Luxembourg, London three years later. Mark was one of the lead Managers responsible for the transfer of the Dexia Banque Internationale London office to Dexia Bank Belgium organization.

Appendix 4 – Key Management

53

Patrick Rochette – Principal Representative, Dubai Office Patrick joined BLME in April 2007 as Head of Distribution and Structuring within the Markets division. Prior to this Patrick was at West LB where he was Head of Sales (Europe and MENA region) for Liability Structuring and Derivatives. Patrick started his presence in the Middle East as a diplomat in Bahrain after which he changed his career to finance and for more than 20 years he has been covering the MENA region. Patrick has worked with a variety of international financial institutions in both sales and managerial positions and has worked in London, Paris, Singapore, Hong Kong, Tokyo and Geneva. He is a derivative specialist in FX, interest rates and credit and has also been exposed to Emerging Markets in Eastern Europe and Asia. Waleed Al‐Omar – Director and Head of Investor Relations Waleed re‐joined BLME in July 2011. He has more than 20 years' experience in finance operations, and technology. He is experienced in the management of start‐up businesses, including Rekaz Systems, Boubyan Bank, and Frontier Advisors. From 2006‐2009 he served as a Non‐Executive Director of BLME and as a Member of the General Partner Board of the Luxembourg based BLME Sharia’a Umbrella Fund SICAV SIF. He was also a Non‐Executive Director and Chairman of the Audit Committee of the Bahrain based First Investment

• Bank. Previously, Waleed worked as the Executive Manager of Direct Investments at Boubyan Bank where he was instrumental in

setting up BLME. During his career, he was COO at Rekaz Systems, Operations Manager at Kuwait Computer Company (Hasibat), and held various roles at IBM. He holds a B.Sc. Electrical Engineering from University of The Pacific – California, and a Masters in Finance from London Business School, United Kingdom. Michelle Arnold ‐ Head of Marketing and Communication Michelle joined BLME in May 2007 and has more than 12 years experience in the financial services industry. Having graduated with a BA (hons) in History and Politics Michelle started working at the Royal Bank of Scotland and was responsible for the marketing and communication of their graduate recruitment programme. Subsequently Michelle spent several years as an internal auditor covering a variety of sectors and industries before joining BLME and returning to a marketing and communications role.

54

Contact Details

54

Humphrey Percy Chief Executive Officer Bank of London and The Middle East plc Sherborne House 119 Cannon Street London EC4N 5AT T: +44 20 7618 0005 E: humphrey.percy@blme.com Richard Williams Chief Financial Officer Bank of London and The Middle East plc 12 Manchester Square, London, W1U 3PP T: +44 20 7618 0008 E: richard.williams@blme.com Waleed Al‐Omar Director, Head of Investor Relations Bank of London and the Middle East plc 12 Manchester Square London, W1U 3PP T: +44 20 7487 7223 E: waleed.alomar@blme.com Or for more information about BLME please visit: www.blme.com