DECEMBER 2016 Based on audited figures Bank Audi Group Head Office - - PowerPoint PPT Presentation

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INVESTOR’S PRESENTATION DECEMBER 2016

Based on audited figures

Bank Audi Group Head Office in Beirut – Lebanon

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14

CONSOLIDATED FINANCIAL STANDING GROUP OVERVIEW

08

MAJOR ENTITIES

CONTENTS

04

MAIN STRATEGIC ORIENTATIONS

21

SHARE INFORMATION

21

APPENDIX

24

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www.bankaudigroup.com This presentation has been prepared by Bank Audi s.a.l. (“Bank Audi”); is for information purposes only and is intended only for the initial direct recipient hereof. It may not be reproduced or redistributed to any other person. It shall not and does not constitute either an

• ffer 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 Bank Audi and neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Certain statements in this presentation may constitute “forward-looking statements”. These statements appear in a number of places in this presentation and include statements regarding Bank Audi’s intent, belief or current expectations. These forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “is expected to”, “will”, “will continue”, “should”, “approximately”, “would be”, “seeks” or “anticipates”; or similar expressions or comparable terminology, or the negatives thereof. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results, performance or achievements of Bank Audi may differ materially from those expressed or implied in the forward-looking statements as a result of various factors. There are many factors which could affect Bank Audi’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. In addition, even if Bank Audi’s results of operations and financial condition and the development of the industry in which it operates are consistent with forward-looking statements contained herein, those results, condition or developments may not be indicative of results or developments in subsequent periods. Bank Audi does not undertake to update any forward-looking statements made herein. Past results are not indicative of future performance. While the information contained in this presentation and document has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by Bank Audi or any of its subsidiaries or affiliates or by any of their respective directors, officers, employees or agents as to or in relation to the accuracy or completeness thereof or for any loss arising from any use thereof and any and all such liability is expressly disclaimed. This document is not to be relied upon as such in any manner as legal, tax or investment advice and shall not be used in substitution for the exercise of independent judgment and each recipient hereof shall be responsible for conducting its own investigation and analysis of the information contained herein. Except where otherwise indicated, the information provided in this document is based on matters as they exist as of the date stated or, if no date is stated, as of the date of preparation and not as

• f any future date, and the information and opinions contained herein are subject to change

without notice.

DISCLAIMER

None of Bank Audi or any of its subsidiaries or affiliates accepts any obligation to update or

• therwise revise any such information to reflect information that subsequently becomes

available or circumstances existing or changes occurring after the date hereof. This presentation may not and will not be made directly or indirectly and may not be and will not be distributed in any jurisdiction in which it is unlawful to make such presentation or distribution under applicable laws and regulations. Persons who attend any meeting at which this presentation is used or distributed or who otherwise receive this presentation are required to make themselves aware of and adhere to any and all restrictions applicable to them. In particular, this presentation may not be made in, and may not be and will not be distributed, directly or indirectly, in or into the United States or to any U.S. Person (as defined in Regulation S under the U.S. Securities Act of 1933, as amended “S”),

• ther than as permitted by Regulation S, or to qualified institutional buyers as defined in and

in accordance with Rule 144A under the U.S. Securities Act of 1933, as amended, and this document is not to be distributed, directly or indirectly, in Canada, Australia or Japan or to any citizen or resident of Canada, Australia or Japan. This presentation may only be attended by, and this document may only be distributed to, persons in member states of the European Economic Area who are qualified investors within the meaning of Article 2(1)(E) of the Prospectus Directive (2003/7/EC) (including any amendments thereto, including Directive 2010/73/EU, and including any relevant implementing measure in each relevant member state of the EEA) (“Qualified Investors”) and persons who (i) are outside the United Kingdom, (ii) who have professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services an Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”), and (c) are high net worth companies, unincorporated associations and other bodies to whom it may otherwise lawfully be communicated in accordance with Article 49 (2)(a) to (d) of the Order (all such persons, together with Qualified Investors, being referred to as “relevant persons” ). This presentation must not be acted on or relied on by persons who are not relevant persons and any investment or investment activity to which this presentation relates is available only to relevant persons and will be engaged in only with relevant persons. The information contained herein must be kept strictly confidential and may not be reproduced or redistributed in any format to any person other than the initial direct recipient hereof without the express written approval of Bank Audi.

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COUNTRY COMPANY Lebanon Bank Audi Lebanon Audi Private Bank Lebanon Audi Investment Bank Switzerland Bank Audi (Suisse) France Bank Audi France Jordan Bank Audi - Jordan Network Saudi Arabia Audi Capital Egypt Bank Audi UAE Bank Audi Qatar Bank Audi Monaco Audi Capital Gestion Turkey Odea Bank Iraq Bank Audi – Iraq Network 1962 1967 1974 1975 1979 2004 2006 2006 2007 2007 2010 2012 2016

A Leading Banking Groups from the MENA Region

GROUP OVERVIEW COVERING THE EUROPE – MENAT CORRIDOR

RANKING BY ASSETS in Lebanon in MENAT #1 #18

• Innovation
• Transparency
• Heritage
• Civic Role
• Human Capital
• Quality

CORPORATE VALUES CONNECTING CUSTOMERS TO OPPORTUNITIES

• US$ 125 billion of yearly

inter-Arab trade turnover in 2015

• US$ 38 billion of yearly

Turkish Arab trade turnover in 2016

Main Development Pillars

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CORPORATE HIGHLIGHTS Dec-16

• .w. Share of

Lebanon

• .w. Share of

entities outside Lebanon Assets 44,267

58.5% 41.5%

Footings 65,873

46.9% 53.1%

Customers’ deposits 35,955

61.7% 38.3%

Loans to customers 17,215

35.4% 64.6%

AuMs & custody accounts 10,831

32.9% 67.1%

Shareholders’ equity 3,698 Net profits (FY 2016) 470.1

22.1% 77.9%

Branches 201 Staff 7,017 FINANCIAL HIGHLIGHTS

• 186 years of banking tradition and experience
• Rated by Moody’s, S&P and Fitch
• First GDR issue in the broad MENA region in 1995
• Wide and well diversified shareholders’ base
• Accessed 17 times international markets through debt

and equity issues

• 85% of university graduates staff of total staff
• Abiding by the Beirut and the London Stock

exchanges regulations

• Applying high corporate governance, compliance and

AML standards

• Implementing since 2013 a formalized ESMS

management system

GROUP OVERVIEW CORPORATE & FINANCIAL HIGHLIGHTS

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CORPORATE GOVERNANCE Ethical conduct, Compliance, Anti-corruption, Risk management, Non-discrimination Environmental & Social Management System (ESMS) ECONOMIC DEVELOPMENT Product portfolio, Economic performance, Indirect economic impacts, Procurement practices, Market presence COMMUNITY DEVELOPMENT Local community development Local community support HUMAN DEVELOPMENT Employment practices, Diversity & equal opportunity Training, education, talent development, External human development ENVIRONMENTAL PROTECTION Emissions, Effluents & waste, Energy consumption, ESMS E & S RISK MANAGEMENT SYSTEM SCREENING APPROVAL REPORTING

CORPORATE & SOCIAL RESPONSIBILITY (CSR) PILLARS

IDENTIFICATION MONITORING ASSESSMENT CATEGORIZATION

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CORPORATE GOVERNANCE BOD Structure 10 Members 5 Executive directors 1 Shareholders representative 4 Independent directors BOD Committees Group Audit Committee Group Risk Committee Remuneration Committee AML /CFT Committee 1 Corporate Governance & Nomination Committee Group Executive Committee Management Committees Credit Committee Asset-Liability Committee Information Technology Committee Anti-Money Laundering Committee Disclosure Committee Set of Charters Corporate Governance Guidelines Chart of Authorities Committees Charters

GROUP OVERVIEW GOVERNANCE OF HOLDING BANK

SHAREHOLDING STRUCTURE (31 December 2016) Shareholders / Groups of Shareholders (Common Shares) Country Percentage Ownership 1 FRH Investment Holding s.a.l. Lebanon 9.65% Audi Family 2 Lebanon 6.90% Sheikha Suad Hamad Al Saleh Al Homaizi 2 Kuwait 5.94% Sheikh Dhiab Bin Zayed Al-Nehayan UAE 4.97% Al-Sabbah Family 2 Kuwait 4.71% Investment and Business Holding s.a.l Lebanon 3.61% Ali Ghassan El Merhebi Family Lebanon 2.60% Al-Hobayeb Family 2 KSA 2.55% Levant Finance 2 Limited Lebanon 2.51% International Finance Corporation I.F.C 2.50% Said El-Khoury Family Lebanon 2.22% Kel (Cayman) Limited Lebanon 2.15% Executives & Employees 3 Lebanon 4.02% Others 15.67% Deutsche Bank Trust Company Americas 4 30.00% Total Shareholding 5 100.00% Common shares outstanding 399,749,204

More than 1,500 common shareholders (including GDRs holders)

Notes to shareholders structure: 1 Percentage ownership figures represent Common Shares owned by the named Shareholders and are expressed as a percentage of the total number of Common Shares issued and outstanding. 2 Sheikha Suad Hamad Al Saleh Al Homaizi is a member of the Board. The Audi Family, Al Sabbah Family, and Al-Hobayeb Family include the following members of the Board (i) Raymond Wadih Audi and Marc Jean Audi, (ii) Mariam Nasser Sabbah Al Nasser Al Sabbah, and (iii) Abdullah Al Hobayeb, respectively. 3 Excluding members of the Audi family accounted for in a separate row above. 4 Deutsche Bank Trust Company Americas holds Common Shares in its capacity as depositary under the Bank’s GDR Program. In addition to the ownership of Common shares mentioned above, 10.61% of the Bank’s Common Shares are held through GDRs by each of FRH Investment Holding Company s.a.l., The Audi Family, Sheikha Suad H. Al Homaizi, Sheikh Dhiab Bin Zayed Al-Nehayan, and the Al-Hobayeb Family (respectively, 2.30%, 0.92%, 1.81%, 3.13% and 2.44%). Information on GDR

• wnership is based on self declarations (pursuant to applicable Lebanese regulations) as GDR ownership is otherwise

anonymous to Bank Audi. 5 As at the date hereof, the total number of common shares was 399,749,204. The Bank (and its affiliates) is the custodian of shares and/or GDRs representing 66.20 % of the Bank’s Common Shares.

1 Starting 2017

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www.bankaudigroup.com Nominal GDP 2016F (US$ billion) Population 2016F (million) Bank assets* (US$ billion) * November 2016 or latest available

GDP Growth Asset Growth Loans Growth Deposits Growth 2.0% 8.0% 5.1% 5.0% 2.9% 14.6% 14.8% 14.9% 3.8% 23.4% 22.6% 15.0% 3.2% 4.1% 5.0% 2.8% Lebanon Turkey Egypt MENA

GROUP OVERVIEW MENAT OPERATING ENVIRONMENT

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GROUP OVERVIEW BUSINESS SEGMENTATION – THE DIVERSIFICATION TREND

Dec-04 Dec-16 Dec-04 Dec-16 FY-2004 FY-2016 Vol. Share Vol. Share Vol. Share Vol. Share Vol. Share Vol. Share Share of continued

• perations

8,762 83.6% 26,916 58.5% 1,715 79.2% 6,092 35.4% 69 96.7% 104 22.1% 42.5% 1,555 14.8% 2,944 6.7% 424 19.6% 1,491 8.7% 5 7.6% 116 24.7% 18.8% 0.0% 10,801 24.4% 7,403 43.0% 69 14.6% 10.6% 165 1.6% 4,605 10.4% 27 1.2% 2,229 12.9%

• 3
• 4.3%

181 38.5% 28.0% 10,481 100.0% 44,267 100.0% 2,166 100.0% 17,215 100.0% 72 100.0% 470 100.0% 100.0% Dec-04 Dec-16 Dec-04 Dec-16 FY-2004 FY-2016 Vol. Share Vol. Share Vol. Share Vol. Share Vol. Share Vol. Share Share of continued

• perations

7,248 69.2% 24,534 55.4% 1,246 57.5% 5,952 34.6% 68 94.7% 75 15.9% 37.9% 0.0% 10,801 24.4% 7,403 43.0% 69 14.6% 10.6% 0.0% 3,017 6.8% 1,611 9.4% 160 34.1% 24.9% 2,017 19.2% 3,339 7.5% 616 28.4% 1,214 7.1% 7 9.3% 55 11.6% 8.4% 1,216 11.6% 2,576 5.8% 305 14.1% 1,035 6.0%

• 3
• 3.9%

112 23.9% 18.2% 10,481 100.0% 44,267 100.0% 2,166 100.0% 17,215 100.0% 72 100.0% 470 100.0% 100.0%

ASSETS LOANS NET PROFITS In US$ million

By Geography Lebanon1 Europe Turkey MENA Total By Development Pillars Lebanese Entities1 Turkey Egypt Private Banking Entities Other Entities Total

1 Including consolidation adjustments

Lebanese entities include: Bank Audi Lebanon, AIB, Solifac, Gamma, other Lebanese entities and consolidation adjustments Private Banking entities include: APB, BAS, Audi Capital Gestion , BAQ and AC-KSA, Other entities include: BAF, other European entities, BAJO and BAIQ

Lebanese Universal Bank

2004

Regional Universal Bank

2016

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In US$ Million Dec-15 Dec-16 Change Balance sheet data Assets Deposits Loans Equity Outstanding LCs + LGs Branches Staff Earnings data 2015 2016 Change Net interest income + Non interest income = Total income

• General operating expenses

= Operating profits

• Loan loss provision charge
• Impairment of goodwill & investment
• Income tax

= Net profits + Results from discontinued operations Net profits after discontinued operations Spread + Non interest income / AA = Asset utilization X Net Operating margin

• .w. cost to income
• .w. credit cost
• .w. impairment of goodwill & investment
• .w. tax cost

= ROAA (of continued operations) = RORRC1 Bank Audi, Audi Investment Bank and Solifac, excluding Audi Private Bank and consolidation adjustments CURRENT STATUS

• Economy set to rebound on the basis of Lebanon’s domestic political

settlement that lead to successful presidential elections with regional and international support and to the formation of a Government of National Unity

• Domestic political settlement fundamentally improving the risk profile of

Lebanon and lifted the economic opportunities at the horizon, with the real GDP growth expected to double in 2017

• Bolstered financial resilience on the back of the recent financial

engineering operations of the Central Bank

• Recent cabinet decisions ratifying two critical decrees for gas and oil

extraction, unlocking the sector’s potential which is apt to reinforce long term growth, investment and income per capital while gradually containing public finance imbalances

• Universal banking profile with dominant positioning
• Largest retail accounts portfolio with an 18% market share supported by

innovative technologies, products and services

• Banking with the top 100 corporates with dominant corporate and

commercial loan market shares

• Market maker in trading operations with a turnover on Lebanese fixed

income securities of US$ 16.7 billion in 2016 and an important market share in equity trading on the Beirut Stock Exchange

• Reinforce and consolidate the leading positioning in the local market while

capturing growth opportunities

• Leverage on existing corporate relationship, expertise and regional

presence to grow the regional business with a focus on trade

• Boost the SME proposition to become a major business line
• Focus on customer centric retail model supported by innovative delivery

channels, state of the art technologies and tailored made products and services

MAIN DEVELOPMENT PILLARS - LEBANON STRONG LEADERSHIP IN LEBANON

As per IFRS

1 Return on required regulatory capital

OPPORTUNITY OUTLOOK

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• Grow middle corporate and develop value-added SME

and consumer segments, ready to leverage Turkey’s expected rebound in 2017 and to penetrate the market further

• Leverage on the Group’s wide footprint in the MENA region to capture cross-

border opportunities, permitting to become the top MENA bank in Turkey and at the forefront of Turkish banks covering the region

• Sustain growing positive jaws, to quickly improve efficiency and profitability

In TL Million Dec-15 Dec-16 Change Balance sheet data Assets Deposits Loans Equity Outstanding LCs + LGs Branches Staff Earnings data Net interest income + Non interest income = Total income

• General operating expenses

= Operating profits

• Loan loss provision charge
• Income tax

= Net profits Spread + Non interest income / AA = Asset utilization X Net operating margin

• .w. cost to income
• .w. credit cost
• .w. tax cost

= ROAA X Leverage = ROACE

• A diversified and growing economy with favorable sovereign debt dynamics

and improving trade linkage beyond the country’s traditional European markets

• Real GDP growth remained resilient in 2016 despite headwinds related to

Turkey’s political and geopolitical challenges and is expected to rebound and beat the average EM growth (excluding China and India) in 2017 and beyond

• Resilient domestic demand and strong fiscal buffers are easing the downside

risks to economic activity despite recent political challenges

MAIN DEVELOPMENT PILLARS - TURKEY ROBUST GROWTH WITH ENTICING PROSPECTS

As per IFRS

Odeabank CURRENT STATUS

• A challenger bank profile with a universal product range
• 1.3% market share in assets, (1.8% in deposits and 1.4% in loan) in 4 years of

average activity, ranking 9th in terms of assets and loans and 8th in terms of deposits among non-state owned conventional banks

• Optimized operating model supported by a good mix of people/ products/

technology, leading to best cost to assets – loans / deposits ratios among peers

• Quick franchise building without incurring any goodwill expense, profitable

after 19 months since launch

• Self-funded balance sheet structure leading to one of the lowest loan to

deposit ratios in the sector OPPORTUNITY OUTLOOK

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In EGP Million Dec-15 Dec-16 Change Balance sheet data Assets Deposits Loans Equity Outstanding LCs + LGs Branches Staff Earnings data Net interest income + Non interest income = Total income

• General Operating expenses

= Operating profits

• Loan loss provision charge
• Income tax

= Net profits Net profits adj. to FX structural position since float Spread + Non interest income / AA = Asset utilization X Net Operating margin

• .w. cost to income
• .w. credit cost
• .w. tax cost

= ROAA (based on adj. net profits to FX

structural position since float)

X Leverage = ROACE

MAIN DEVELOPMENT PILLARS - EGYPT EXPANSION OF NETWORK & PRODUCT RANGE

CURRENT STATUS

• Resilient to successive political transitions since 2011, sustaining

solid growth trajectory outpacing peers with 23% CAGR in assets and 32% in net profits over the 2010-2016 period

• Sound

credit policies focusing

• n

defensive businesses translating into a NPL ratio of 1.4% well below the sector

• Efficient and profitable growing bank with an average ROAA and

ROACE of 1.6% and 18.5% over the 2010-2016 period OPPORTUNITY OUTLOOK

• Opportunities outpacing challenges in an economy with pent up

demand potential and large cyclical output gap

• State showing firm commitment to address macro challenges

through the implementation of a series of reforms within the context of strong foreign support

• A stream of recent financing agreements (IMF, World Bank,

bilateral etc.) relatively easing Egypt’s external financing needs

• Macro outlook remain favorable on the overall in spite of

monetary and price pressures (inflation and exchange rates)

• Real GDP growth to average close to 5% over the next 5 years,

exceeding population growth, reinforcing per capital income and translating into double digit growth in banking aggregates

• Build a recognizable and highly regarded brand in Egypt
• New development plan

encompassing the expansion of the network and extension of the scope of products and services to cover new business segments such as Islamic, mass affluent, mortgages and others Bank Audi (Egypt)

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• Operates thru Banque Audi Suisse, the second largest Arab Private

Bank based in Switzerland since the mid-70s and through 2 main entities in Lebanon and Saudi Arabia with additional offices in Monaco, Qatar, Jordan and Abu Dhabi

• Full diversified range offering with full access to major markets

worldwide and global investment products including discretionary portfolio management, investment advisory, trade execution in all asset classes, structuring and management of Saudi and regional funds and other private banking services

• Deep-rooted in the MENA region, Bank Audi Private Bank also covers

Sub-Saharan Africa (AuMs of US$ 1,168 million) and Latin America (US$ 1,118 million) through dedicated desks and RMs In US$ Million Dec-15 Dec-16 Change Balance sheet data On-Balance Sheet Assets Total Client Assets 1

• .w. AuMs
• .w. Deposits
• .w. Fiduciary Deposits

Client Loans Equity Staff Earnings data 2015 2016 Change Net interest income + Non interest income = Total income

• General operating expenses

= Operating profits

• Loan loss provision charge
• Income tax

= Net profits Spread + Non interest income / AA = Asset utilization X Net operating margin

• .w. cost to income
• .w. credit cost
• .w. tax cost

= ROAA X Leverage = ROACE

• Recent upward correction in oil prices supporting Middle Eastern

economic growth potential and corollary wealth formation

• The Middle east region continues to be second- fasted growing private

banking market, trailing only to Asia

• Robust growing wealth pools fostering need for wealth and asset

management services

• Wealth management industry currently in transition to accommodate

increasing regulatory transparency requirements and related cost investment, allowing smaller and more agile institution to gain market shares

MAIN DEVELOPMENT PILLARS – PRIVATE BANKING STRONG EXPERTISE & KNOW-HOW

As per IFRS

Audi Private Bank, Banque Audi Suisse, Audi Capital Gestion, Bank Audi Qatar and Audi Capital KSA CURRENT STATUS OPPORTUNITY STRATEGY

• Recent restructuring of the business line to improve intergroup

synergies and efficiencies

• Plan to establish a footprint in the United Kingdom and Singapore via

the partnership with Crossbridge Capital based in London, to create a centralized and specialized wealth management platform and to support the private banking development strategy and future expansion to Sub-Saharan Africa and Latin America

1 Before consolidation adjustments

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YOY In US$ Million 2015 2016 Vol. % Interest income Non interest income

1

Total income Operating expenses

2

Credit expense

3

Net other provisions Income tax

4

Total expenses Net Profits after tax Results of discontinued oper.

5

= Profit after tax and discontinued operations YTD In US$ Million Dec-15 Dec-16 Change % Primary liquidity 12,633 15,752 3,119 24.7% Portfolio securities 10,158 9,869

• 289
• 2.8%

Loans to customers 17,929 17,215

• 714
• 4.0%

Other assets 796 749

• 47
• 5.9%

Fixed assets 755 681

• 73
• 9.7%

Assets= Liabilities 42,270 44,267 1,996 4.7% Bank deposits 1,931 3,040 1,109 57.4% Customers’ deposits 35,609 35,955 346 1.0% Other liabilities 1,443 1,573 130 9.0% Shareholders' equity 3,287 3,698 411 12.5% AUMs + fid. dep. + cust. acc. 9,849 10,831 982 10.0% Assets + AUMs 52,119 55,098 2,979 5.7%

CONSOLIDATED FINANCIAL STANDING: PERFORMANCE HIGHLIGHTS

ASSETS & FOOTINGS INCOME STATEMENT

1 o.w. US$ 616 million of exceptional net fees and commissions and US$ 240 million of exceptional

gains on financial instruments resulting from the Central Bank of Lebanon exchange transactions

2 o.w. US$ 231 million of impairment of goodwill and investments and write off of intangible assets

and one-off expenses.

3 o.w. US$ 306 million of collective provisions, corresponding to 2% of risk weighted loans as per

BDL directives

4 o.w. US$ 108 million of exceptional tax expense resulting from the Central Bank of Lebanon

exchange transactions

5 o.w. US$ 205 million of write off of investments in Syria and Sudan 1 Remainder of exceptional revenues amounting to US$ 173 million (US$ 204 million before

tax) allocated as per the directives of the Central Bank of Lebanon (Intermediary circular # 446) as follows:

• 70% as reserves for capital increase, and,
• 30% as deferred liabilities accounted for as tier two capital.

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8,594 10,428 14,713 17,171 17,861 17,215 2011 2012 2013 2014 2015 2016 LOANS TO CUSTOMERS IN US$ MILLION CUSTOMERS’ DEPOSITS IN US$ MILLION REVENUES & NET EARNINGS IN US$ MILLION EARNINGS PER COMMON SHARE IN US$ KEY PERFORMANCE METRICS 2013 2014 2015 2016

Spread

2.00% 2.10% 2.13% 2.33%

+ NII / AA

1.18% 1.31% 1.20% 2.71%

= Asset Utilization

3.18% 3.41% 3.32% 5.04%

* Net operating margin

28.44% 26.48% 28.95% 21.79%

• .w. cost to income

56.07% 55.08% 53.82% 46.95%

• .w. provisions

8.38% 10.52% 9.58% 20.45%

• .w. tax cost

7.11% 7.92% 7.66% 10.81%

=ROAA

0.91% 0.90% 0.96% 1.10%

* Leverage

12.64 13.55 12.96 12.66

=ROAE

11.44% 12.23% 12.47% 13.91%

ROACE

12.59% 13.63% 13.69% 14.75% ASSETS IN US$ MILLION

CONSOLIDATED FINANCIAL STANDING: STEADY AND RESILIENT GROWTH

28,737 31,304 36,191 41,961 42,270 44,267 2011 2012 2013 2014 2015 2016 24,798 26,805 31,095 35,82135,609 35,955 2011 2012 2013 2014 2015 2016 993 1,124 1,071 1,323 1,366 2,333

365 384 305 350 403 470

2011 2012 2013 2014 2015 2016 1.00 1.01 0.80 0.86 0.92 1.04 2011 2012 2013 2014 2015 2016

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LOANS BREAKDOWN BY ECONOMIC SECTOR LOANS BREAKDOWN BY COLLATERAL

Cash and bank guarantee 14% Real estate mortgage 29% Securities 6% Vehicles 2% Corporate & Personal guarantee 27% Unsecured 22%

Manufacturing 12.9% Transportation & communication 3.0% Consumer loans 17.6% Contractors 5.3% Trade 10.4% Real estate & developers 19.8% Financial intermediaries 12.2% Other loans 18.9% Total 100.0% NET EXPOSURES BY DEVELOPMENT PILLARS Turkey 42.7% Lebanon 32.2% Egypt 9.8% Private banking entities 5.8% Other entities 9.6% Total 100.0%

USD 50% TRY 19% EUR 15% EGP 6% LBP 7% JOD 2% OTHER 1%

LOANS BREAKDOWN BY CURRENCY LOANS BREAKDOWN BY CUSTOMERS’ TYPE

Corporate clients 60% SMEs 15% Private & personal clients 7% Retail & consumer clients 18%

LOANS BREAKDOWN BY MATURITY

Short-term facilities, (<1 year) 36% Medium- term facilities, (1-3 years) 18% Long-term facilities, (>3 years) 46%

CONSOLIDATED FINANCIAL STANDING: LOAN PORTFOLIO BREAKDOWN 39% OF TOTAL ASSETS

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In US$ Million Lebanese Entities Turkey Egypt Private Banking Other Entities Total December 2016 Gross DLs Specific provisions

• .w. Corporate
• .w. Retail

Collective provisions

• .w. Corporate
• .w. Retail

Total provisions

• .w. Corporate
• .w. Retail

In US$ Million Dec-15 Dec-16 Change Gross DLs

542.3 438.9

• 103.4
• .w. Corporate

436.4 334.1

• 102.4
• .w. Retail

105.9 104.9

• 1.0

Gross SLs

38.1 42.6 4.5

Specific provisions

371.0 296.4

• 74.6
• .w. Corporate

293.0 214.2

• 78.8
• .w. Retail

78.0 82.2 4.2

Collective provisions

162.2 418.8 256.6

• .w. Corporate

126.5 339.3 212.9

• .w. Retail

35.8 79.5 43.7

In US$ Million Dec-15 Dec-16 Change Gross DLs / gross loans1

2.95% 2.45%

• 0.50%
• .w. Corporate

2.90% 2.28%

• 0.62%
• .w. Retail

3.15% 3.21% 0.06%

Gross SLs / gross loans

0.21% 0.24% 0.03%

Coverage (specific)

68.40% 67.51%

• 0.89%
• .w. Corporate

67.13% 64.11%

• 3.02%
• .w. Retail

73.65% 78.36% 4.71%

Coverage (collective)

0.90% 2.43% 1.53%

• .w. Corporate

0.86% 2.41% 1.54%

• .w. Retail

1.10% 2.56% 1.46%

• 43

439 542 +175

• 199
• 24
• 12

GROSS DOUBTFUL LOANS MOVEMENT IN US$ MILLION LOAN LOSS PROVISIONS MOVEMENT IN 2016 IN US$ MILLION

2.6%

1 As compared to an average of 3.9% in the MENA region, 6.9% in emerging markets and 7.5% in the world.

18.9%

CONSOLIDATED FINANCIAL STANDING: ASSET QUALITY

441.4 168.5 +306.3

• 18.1
• 15.3

Specific LLPs Collective LLPs Recoveries Write offs recoveries LLPs

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BREAKDOWN OF PLACEMENTS WITH BANKS BREAKDOWN OF PORTFOLIO SECURITIES BY CURRENCY & TYPE

By Region By Rating

US$ Million LBP US$ EUR EGP TRY JOD Other TOTAL Central Banks

3,588 6,917 911 392 387 61 115 12,372

• .w. Reserves

requirements

320 3,861 5 73 366 54 4,679

• .w. Cash deposits

3,268 3,056 906 319 21 7 115 7,693

Placement with banks

142 1,326 267 26 1,255 18 347 3,380

• .w. Deposits with banks

64 1,326 249 1 3 18 347 2,008

• .w. Reverse repurchase

agreements

78 18 25 1,252 1,372

Total liquidity

3,730 8,243 1,178 418 1,642 79 462 15,752

US$ Million LL US$ TRY EGP Other TOTAL Central Banks certificates of deposits

540 5,472 6,012

Treasury Bills & Eurobonds

1,520 20 259 1,031 41 2,871

Risk ceded Lebanese Eurobonds

388 388

Equity instruments

43 88 29 17 178

Fixed income instruments

368 52 420

Total portfolio securities

CONSOLIDATED FINANCIAL STANDING: LIQUIDITY & PORTFOLIO SECURITIES (58% of total assets)

LIQUIDITY PORTFOLIO SECURITIES

Aaa to Aa3 19% A1 to A3 31% Baa1 to Baa3 3% Ba1 to B3 42% Unrated 5% G10 Countries 43% MENA 14% Other Europe 42% Other 0% CB CDs 60.9% TBs in LL 15.4% Eurobonds in US$ 0.2% TBs in TRY 2.6% TBs in EGP 10.5% Bonds in other FCY 0.4% Risk ceded leb eurobonds 3.9% Equity instruments 1.8% Fixed income instruments 4.3%

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US$ Million Dec-15 Dec-16 Risk-weighted assets 25,047 26,526

• .w. Credit risk

22,617 23,805

• .w. Market risk

464 360

• .w. Operational risk

1,968 2,361 Regulatory capital (net of deductions) Core common tier one capital 2,182 2,411 Tier one capital 2,560 3,084 Tier two capital 786 836 Total capital 3,347 3,920 Core common tier one ratio 8.7% 9.1% Tier one ratio 10.2% 11.6% Tier two ratio 3.1% 3.2% Total ratio 13.4% 14.8% BASEL III IN US$ MILLION 13.4% 14.8%

• 0.9%

+0.9% +1.2% +0.2% Dec-15 RWAs CTierI RTierI Tier II Dec-16 CAPITAL ADEQUACY RATIO EVOLUTION

CONSOLIDATED FINANCIAL STANDING: CAPITALIZATION

At end-December 2016 (Estimates) Turkey Egypt Tier one ratio 12.1% 10.8% Tier two ratio 2.9% 3.8% Total ratio 15.0% 14.6%

ODEABANK & BANK AUDI EGYPT CAR (AS PER LOCAL REGULATIONS)

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• 3 main geographic pillars: Lebanon,

Turkey, Egypt.

• Consolidation mode in main markets of

presence while maintaining the network ready to capture growth opportunities as soon as they arise.

• In Lebanon, reinforce its strong

leadership while increasing the penetration in the corporate and SME segments

• In Egypt, build a resilient and well

regarded brand

• In Turkey, establish a well fenced

banking platform while improving efficiency and profitability

• Leverage solid expertise in Private

Banking by reinforcing synergies across entities in Europe, the Near- East and the GCC CURRENT STRATEGY

MAIN STRATEGIC ORIENTATIONS: POSITION THE GROUP AS A LEADING MENAT BANK

Main Development Pillars

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COMMON EARNINGS PER SHARE Audi GDR’s Program GDR Ticker AUSR CUSIP 60572112 ISIN US0605721127 Ratio 1 To 1 Depositary Deutsche Bank Americas Effective Date 24/10/97 Underlying ISIN LB0000010415 SEDOL (Beirut) BLD3615 LB SEDOL BLD35C9 GB Audi Ordinary’s program Ordinary Ticker Audi.BY CUSTODIAN Midclear ISIN LB0000010415

• Nom. Value

1,656 LBP Effective Date 20/10/06 Underlying ISIN LB0000010415 SEDOL 6113407 LB Country Lebanon Industry Banks

$5.71 $5.90 $5.85 $6.30 $6.25 $6.95 $7.13 $7.23 2009 2010 2011 2012 2013 2014 2015 2016 45.0% 43.5% 42.9% 42.4% 54.4% 54.3% 45.3% 43.1% 41.0% 40.1% 38.7% 50.2% 49.9% 42.1% 2009 2010 2011 2012 2013 2014 2015

Total payout ratio (incl. preferred share dividends) Total payout ratio on common shares

COMMON BOOK PER SHARE

$0.80 $0.96 $1.00 $1.01 $0.80 $0.86 $0.92 $1.04 2009 2010 2011 2012 2013 2014 2015 2016

COMMON DIVIDEND PER SHARE PAYOUT RATIO USEFUL SHARE INFORMATION

$0.35 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 2009 2010 2011 2012 2013 2014 2015

SHARE INFORMATION: INVESTMENTS CONSIDERATIONS

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PRICE TO BOOK AS AT JANUARY 17th, 2017 PRICE TO EARNINGS AS AT JANUARY 17th, 2017 PRICE TO ASSETS AS AT JANUARY 17th, 2017 PRICE TO EARNINGS AS AT JANUARY 17th, 2017 STOCK MARKET RATIOS

1 On the basis of a Bank Audi GDR price of US$ 6.65 on the Beirut Stock

Exchange as at 17/01/2017 Sources: Bloomberg, Citigroup, IMF, Beirut Stock Exchange, Bank Audi’s Group Research Department

COMPARATIVE P/E RATIOS FOR BANKS1 Audi GDR 6.0x MENA 11.0x KSA 9.8x Qatar 12.8x Audi Listed 5.9x Jordan 14.3x UAE 9.1x Bahrain 8.8x Lebanon 6.6x Egypt 13.6x Kuwait 15.5x Oman 6.8x BANK AUDI V/S MENA PEERS

1 Prices as at January 17, 2017

Sources: Bloomberg, Beirut Stock Exchange, Bank Audi’s Group Research Department

SHARE INFORMATION: STOCK MARKET PERFORMANCE & RATIOS

GLOBAL AVERAGE 1.48 EMERGING MARKETS AVERAGE 1.97 MENA AVERAGE 1.64 AUDI 1 0.88 GLOBAL AVERAGE 13.4 EMERGING MARKETS AVERAGE 11.9 MENA AVERAGE 11.0 AUDI 1 6.0 GLOBAL AVERAGE 15.7% EMERGING MARKETS AVERAGE 22.9% MENA AVERAGE 18.1% AUDI 1 5.9% GLOBAL AVERAGE 3.6 EMERGING MARKETS AVERAGE 2.6 MENA AVERAGE 1.8 AUDI 1 0.86

Ahli Bk Qat QNB Alahly Masraf Al Rayan QIIB Ahli Bk… QNB Bank Audi ADCB Arab Bank SABB CBK

• Comm. Bank
• f Dubai

CBQ CIB ENBD QIB NBAD Kuwait Fin House Rajhi BBK NBK Samba ABC Riyad Bk P/BV (Jan 17, 2017) ROACE (9M2016)

Sources: Bloomberg, Bank Audi's Research Department

MENA MENA

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APPENDIX

Bank Audi Egypt Head Office in Cairo – Egypt

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www.bankaudigroup.com (in US$ Thousands) Liabilities Dec-14 Dec-15 Dec-16

Due to Central Banks

290,803 378,014 1,331,417

Deposits with banks & financial institutions & repurchase agreement

1,184,606 1,552,614 1,708,164

Due from head office, sister, related banks & financial institutions Financial assets taken as a guarantee Derivative financial instruments

77,150 87,031 181,063

Financial liabilities at fair value through profit &loss Of which: deposits at fair value through profit and loss Customers deposits at amortized cost

35,431,648 35,151,248 35,415,733

Deposits from related parties at amortized cost

389,135 457,785 539,667

Debt issued & other borrowed funds

59,388 53,302

Engagements by acceptances

225,857 159,605 132,110

Other liabilities

344,929 383,414 510,502

Provisions for risks & charges

102,130 114,137 103,875

Subordinated loans & similar debts

507,414 645,857 645,794

Non current liabilities held for sale Total Liabilities

38,613,060 38,983,007 40,568,325

Shareholders' Equity - Group Share

3,305,652 3,247,741 3,472,044

Capital and issue premium - Common

1,023,660 1,025,251 1,025,252

Capital and issue premium - Preferred

500,000 375,000 625,000

Share purchase warrant

11,406 11,373 8,377

Cash contribution to capital

48,150 48,150 48,150

Reserves

969,212 925,821 779,880

Treasury shares

• 3,270
• 62,372

Retained earnings

397,604 448,110 580,593

Reserve on revaluation of financial assets at fair value through OCI

18,260 24,021 21,330

Results of the period

340,630 390,015 445,834

Non controlling Interest

41,964 39,658 226,436

Total Shareholders' Equity

3,347,616 3,287,399 3,698,480

Total Liabilities & Shareholders' Equity

41,960,676 42,270,406 44,266,805

1 After deduction of provisions amounting to US$ 677 million from loans and advances to customers as per IAS 39,

• f which US$ 419 million representing provisions on collective assessment;

2 Loans granted to related parties against cash collateral amounted to US$ 115 million; 3 Includes an amount of US$ 388 million with risk ceded to customers.

FINANCIAL STATEMENTS: CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Assets Dec-14 Dec-15 Dec-16

Cash and balances with Central Banks

8,787,653 9,124,326 12,371,872 2,393,959 1,793,802 2,008,111

Deposits with banks & financial institutions

1,942,782 1,715,126 1,372,348

Loans to banks & financial institutions & reverse repurchase agreements Due from head office, sister, related banks & financial institutions Financial assets given as collateral Derivative financial instruments

130,764 176,360 258,798

Shares and participations held at fair value through profit & loss

38,587 39,331 48,837

Debt Instruments & other similar financial assets at fair value through profit & loss

304,247 215,211 411,007

Of which: Net advances and loans designated at fair value through profit and loss

7,989 14,716 14,526

Net loans & advances to customers at amortized cost

17,098,069 17,786,274 17,069,484

Net loans & advances to related parties at amortized cost

72,973 142,321 145,402

Debtors by acceptances

225,858 159,605 132,110

Debt instruments classified at Amortized Cost

9,667,491 9,807,346 9,280,312

Shares and participations designated at fair value through OCI

90,020 95,771 128,655

Investments in associates

18,416 9,279 8,844

Assets taken in settlement of debts

12,279 48,278 53,749

Property & equipment

629,215 639,097 584,743

Intangible fixed assets

61,461 67,240 42,866

Non current assets held for sale Other assets

355,908 312,111 321,921

Goodwill

130,994 138,928 27,746

Total Assets

41,960,676 42,270,406 44,266,805

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Interest & similar income Interest & similar expenses Net Interest Income Non interest income Total Operating Income Net provisions for credit losses Provision on impairment of financial instruments Net Operating income Personnel expenses Other operating expenses Depreciation of property & equipment Amortization of intangible assets Impairment of goodwill Total Operating Expenses Profit Before Tax Income tax Profit After Tax Net results from discontinued operations = Profit After Tax and Discontinued Operations Minority Interest Net Profit - Group share

FINANCIAL STATEMENTS: CONSOLIDATED PROFIT & LOSS STATEMENT

(in US$ Thousands)

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www.banqueaudigroup.com

Odebank’s branch in Etiler, Istanbul– Turkey