[PDF] - Investor Presentation Sep 2019 Contents o Bank Muscat Introduction o PDF Document

SLIDE 1

Investor Presentation Sep 2019

SLIDE 2

Bank Muscat Introduction
Operating Environment
Bank Muscat Business – Overview
Financial Performance
Annexure

17‐Nov‐19 2

Bank Muscat Introduction

SLIDE 4

17‐Nov‐19 4

Bank Muscat at a glance

Ov Over ervi view ew

#1 Bank in Oman with a significant active customer base with ~2 million clients

and a workforce of 3,796 employees as of 30th Sep 2019.

Established in 1982, headquartered in Muscat with 169 branches across Oman, 2

branches overseas, and 3 representative offices

Fully diversified commercial bank offering corporate and retail banking

services

Primarily domestic dominated operations with over 95% of operating income

generated in Oman

Meethaq – pioneer of Islamic Banking services in Oman, officially launched in

January 2013 with full fledged product and services offering

Listed on the Muscat Securities Market (with a market cap of USD 3,536 million as
f 30th Sep 2019), London Stock Exchange & Bahrain Stock Exchange

Owner Ownershi hip as as of

f Se

Sep 2019 2019 Ke Key Financi nancials Bank Bank Mu Muscat at Fo Footste steps

Royal Court Affairs, 23.63 Dubai Financial Group LLC, 11.77 ONIC, 9.90 Civil Service Pension Fund, 7.61 Ministry of Defence Pension Fund, 6.49 Public Authority for Social Insurance, 5.13 Others, 35.47

I n US$ Millions, unless otherwise stated Sep-19 2018 2017 2016 Total Assets

31,958 31,917 28,959 28,104 Gross Loans 24,242 24,073 22,484 21,483 Deposits 21,208 21,981 19,268 19,369 Operating I ncome 914 1,160 1132 1081 Net Profit 367 466 460 459 Tier 1 17.81% 18.14% 16.87% 14.75% Total CAR 19.01% 19.38% 18.56% 16.90% Loans to Deposit Ratio 109.81% 105.63% 112.26% 106.69% NPL Ratio 3.33% 3.09% 2.94% 2.91% Cost/ I ncome 41.06% 42.61% 42.22% 41.83% ROA 1.53% 1.53% 1.61% 1.64% ROE 10.70% 10.83% 11.44% 12.50%

SLIDE 5

17‐Nov‐19 5

Bank Muscat – Key Highlights

Managem Management nt

Largest Bank in Oman by total assets of 35.6%, as of 31st Aug 2019,

around the size of next 3 Omani banks combined.

Market Capitalisation of USD 3,536 million as at 30th Sep 2019
Largest branch network with 169 domestic branches
The only bank in Oman to be designated a “D‐SIB”

Str Strong Finan Financia ial Met Metric ics

Stabl Stable Opera Operating ing Envi vironm ronment ent Hi Highes ghest Govern vernment Owners Ownership hip

Domina minant nt Franch Franchis ise in in Oman Oman

Highest Government Ownership among

Omani Banks

Royal Court Affairs: 23.63%
Significant direct and indirect Government
wnership through various entities.
Stable and consistent financial

performance

Solid topline income growth
Stable cost‐to‐income ratio despite

business and infrastructure expansion

Strong and sustainable profitability

metrics:

Operating income 2014‐2018 CAGR
f 3.9%
Net profit 2014‐2018 CAGR of 2.4%
Stable banking sector
Prudential regulatory environment
Stable political system in the Oman with

excellent diplomatic relationship in the region

Economic growth in Oman supported by

increase in hydrocarbon production, strengthening and growing local demand, and discipline fiscal policy measures

Stable and experienced management with

proven track record of successful organic and inorganic growth

Good corporate governance

So Soli lid Cap Capital tal Pos Positi tion

Strong capitalization levels offering room

for substantial growth

CAR of 19.01% as of 30th Sep 2019

Stab Stable le Asset Asset Quali Quality

Conservative lending approach
Strong risk architecture and policies
Adequate asset quality metrics

SLIDE 6

17‐Nov‐19 6

Operating Environment

SLIDE 7

17‐Nov‐19 7

Sultanate of Oman - Overview

Overview GDP Growth GDP Composition as of Jun 2019

(1) Source: National Center for Statistics (July ’19), Rating Reports: Moody’s and S&P as of Apr 2019

Oman Saudi Arabia UAE Qatar Bahrain Kuwait

Source: IMF data as of Apr 2019, & National Centre for Statistics & Information as of July 2019

2nd Largest country in the GCC with an area covering approx. 309.5 thousand km2,

strategically located, sharing borders with Saudi Arabia, & UAE.

Stable Political System, excellent diplomatic relations in the region
Oman explicitly aims to create a neo‐liberal free market economy, where the private

sector is the driver of the economy as opposed to the state

Population of 4.66mn as of Oct 2019 ‐ predominantly represented by Omani

Nationals who account for 57.3% of the total population

The economy will continue to grow with the following drivers:
The increase in hydrocarbon production
The Government’s balanced support for the economy with disciplined fiscal

policy measures

Strengthening and growing local demand; increasing services and activities

contribution to GDP

Govt. initiated a dedicated program called “Tanfeedh” to focus on economic

diversification through focus on key sectors in phase 1 viz. manufacturing, logistics and tourism

Key Indicators ( 1 ) 2018 2019

Sovereign Ratings Moody's\S&P Baa3/BB Ba1/BB Budget Surplus\Deficit in OMR

1.9 Bn (Dec '18)
0.35 Bn (May '19)

Surplus\Deficit % of total revenue

19%
7.6% (May '19)

Net Public Debt (% GDP) 50% Est 53%-55% 2.8% 4.7% 5.0% ‐0.9% 1.9% 1.1% ‐2.0% ‐1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2014 2015 2016 2017

Est. 2018
Est. 2019

GDP Growth %

Petroleum Activities, 32.88% Manufacturing & Mining, 15.80% Const., Elec. & Water supply, 7.36% Wholesale & retail trade, 6.73% Hotels & Restaurants, 0.98% Transport, storage & communication, 5.10%

Financial I ntermediation, 6.24% Real Estate Services, 4.53%

Public admin & defence, 10.95% Other services, 9.42%

SLIDE 8

17‐Nov‐19 8

Oman Banking Sector - Overview

Overview

The Omani banking sector comprises of 7 local banks, 2 specialized banks, 9

foreign commercial banks and two full fledged Islamic Banks

The top 3 banks after bank muscat contribute around 36.3% of total sector
assets. bank muscat represents 35.6% of total banking sector assets as of Aug

2019

Conservative and Prudent Regulator
A number of regulations and caps in place to support the growth, stability and

sustainability of the Omani banking sector

Adequate asset quality

with relatively low impaired assets and sound capitalization

Implemented Basel 3 regulation with effect from Jan 2014

Loans and Deposit Growth

Gross Loan: +10.5% Deposits: +7.1% US$ billion

Oman in the GCC banking sector context(1) Asset Quality(2)

793 625 390 219 88 64 433 791 193 138 81 40 183% 79% 202% 159% 109% 160% 0% 50% 100% 150% 200% 250% 100 200 300 400 500 600 700 800 900 UAE Saudi Arabia Qatar Kuwait Oman Bahrain

Assets as a % of GDP

Total Assets in $ Bn GDP in $ Bn Assets as a % of GDP

(2) Source: Central Banks: UAE as of May’ 19, Qatar as of Jun’19, Kuwait & Bahrain

as of Aug’ 19, KSA as of Sep’ 19 and Oman as of Sep’ 19.

(1) GDP data is estimated for FY 2019 (Source: World

Bank, National Central Banks)

793 668 400 227 201 91 5.6% 1.8% 1.9% 1.6% 5.6% 1.9%

‐3.0% 2.0% 7.0% 12.0%

UAE Saudi Arabia Qatar Kuwait Bahrain Oman

Total Assets NPL/ GLs

SLIDE 9

17‐Nov‐19 9

Bank Muscat – Unrivalled leading Market Position in Oman

Total Assets (USD Mn) Gross Loans (USD Mn) Deposits (USD Mn) Net Profit (USD Mn)

Note: Oman Arab Bank Financials as of June’ 19

SLIDE 10

17‐Nov‐19 10

Bank Muscat – Dominant domestic franchise in the region

Market Share ‐ Assets Market Share – Deposits Asset Quality Strong Capitalization

4.9% 1.9% 1.9% 3.3% 3.1% 1.4% 4.8% 95.2% 104.0% 133.0% 118.5% 109.0% 227.4% 126.6%

0.0% 50.0% 100.0% 150.0% 200.0% 250.0%

CBQ QNB NCB BM FAB NBK ENBD

NPL/GL LLR/NPL

17.3% 15.9% 14.6% 17.2% 17.8% 13.9% 14.5% 0.9% 1.1% 1.1% 0.8% 1.2% 1.9% 1.7% QNB ENBD FAB NCB BM NBK CBQ

Tier 1 Tier 2

SLIDE 11

17‐Nov‐19 11

Bank Muscat Business Overview

SLIDE 12

17‐Nov‐19 12

Bank Muscat Strategy – Key Pillars

Con Consolid lidate Lea Leadin ing Pos Positio tion in in Oman Oman

Capitalize on growth opportunities in Oman
Infrastructure development projects and Government focus on economic diversification and developing tourism
Omanis entering the workforce; over 45% of the population is less than 19 years old
Leverage large network of branches and other delivery channels
Platform to focus on the growth potential
Cross sell opportunities among business lines and customer segments
Continue to focus on customer acquisitions and retention
Focus on fee based income
Scale up fee driven businesses both in the wholesale banking (transaction banking, investment banking, treasury) and personal banking (credit

card, bancassurance, private banking)

Leverage verage on

n techno

hnology gy and and infra infrastru tructu ture re in investments

Pioneering investments in technology supporting growth plans
Multiple digital banking channels for sales and services
Technology driven banking to enhance customer experience and improve internal efficiency
Customer Convenience and Service Quality
Innovative products and services offering
Customer centric approach through “To Serve you better, everyday” philosophy

Regio Regional Expa Expansio ion

Strengthen regional presence through focused and controlled expansion in GCC
Leverage existing regional presence to scale up business growth
Focus on opportunities for controlled expansion in GCC and the region

Fo Focus on

n Isla

Islamic Ban Bankin ing Develo Developm pmen ents ts in in Oman Oman

Meethaq – Islamic banking platform
Be the market leader in Islamic Banking Business
Endeavor to offer full fledged products and services
Expansion of branch and channel network

Financi nancial stren strength th

Further enhance financial strength
Strong capitalization and stable returns
Further enhance the diversified funding mix and large CASA deposit base.
Efficient management of operating costs

SLIDE 13

17‐Nov‐19 13

Bank Muscat – Business Lines

Key Key Hi High ghli lights ts As Asset Co Cont ntribution ribution Pr Profit

fit Contributio

Contribution Corp Corpora

rate

Bankin Banking

Leading

Corporate Bank Franchise

ffering the full array of corporate

banking services

~ 7,200 corporate customers in Oman
Strong expertise in project finance
US$ 11.4bn
35.8

35.8% of total assets

US$ 160.4mn
43.7

43.7% of total profit

Gl Global

bal Institutions,

stitutions, In Investment Bankin Banking & Trea Treasury sury

Comprise
f

treasury, corporate finance, and asset management

Financial Institutions
US$ 6.7bn
21.0

21.0% of total assets

US$ 88.1mn
24.0

24.0% of total profit

Personal Personal Bankin Banking

Leading Retail Bank platform in Oman
~ 2 million retail customers in Oman
Largest distribution network
US$ 8.8bn
27.5

27.5% of total assets

US$ 121.5mn
33.1

33.1% of total profit

Meetha eethaq – Islam lamic Bankin Banking

OMR

65mn (c.US$167mn) capital assigned to this business

Officially launched in January 2013.

Currently operating through 20 full fledged Islamic branches.

US$ 3.7bn
11.7

11.7% of total assets

US$ 19.5mn
5.3%

5.3% of total profit

In Inte ternational Opera Operation ions

Presence in GCC, Iran and Singapore

through

verseas

branches, rep

ffices and subsidiary
US$ 1.3bn
4.0%

4.0% of total assets

US$ (22.2)mn
‐6.1%

6.1% of total profit

Deposits Loans & Advances

Ministries & Other Gov Orginisation 30% Private Commercial 24% Financial Institutions 2% Individual & Others 45%

Import Trade 3.8% Export Trade 0.2% Wholesale & Retail Trade 2.4% Mining & Quarrying5.6% Construction 4.5% Real Estate 3.7% Manufacturing 7.8% Electricity, gas and water 6.8% Transport and Communication 8.7% Financial Institutions 4.5% Services 8.5% Personal Loans 40.9% Agriculture and Allied Activities 0.4% Government 0.5% Others 1.7%

SLIDE 14

17‐Nov‐19 14

Corporate Banking

Amounts in USD mn.

Over Overvi view Oppor Opportuni unities es Str Strategy

Leadi

Leading Corpor Corporate Banki Banking Franchise Franchise

Extensive and expanding range of products

and services

Strong project finance capabilities
Large

Large corpora corporate clien lient portfolio lio wi with c. c.7,200 200 cus custom

mers

ers and and lea lead bank bank fo for top top tier tier Oma Omani corpora corporate en entit tities

Hi

High leve level of

f sophi

phisticat stication di differenti rentiated th throu rough technol chnology gy led led in inves vestments

Commi

mmitm tment ent to to main intain in str strong control control over

ver ass

asset qual quality

Large

Large numbe number of

f infras

astr tructure/ ucture/ Indus ndustrial ial proj projects ects in in th the pi pipe peline

Pr

Priv ivatisatio ion and and diver versific icatio ion dri drive by by Go Governm rnment nt

In

Incre creasing bus business flo flows be between een Oma Oman and and regiona regional count countri ries es

Lev

Levera rage on

n lea

leadin ing pos positi tion

n and

and exp expert rtise ise

Reinforce presence in Oman across all

segments in the value chain

Benefit from large infrastructure and industrial

projects in Oman

Focu

Focus fee fee in income ge gene nera rati ting ng bus business

Transaction banking business to enhance fee

income

Explore cross sell opportunities among

business lines

Utiliz

ilize pre presence ence in in reg regional al mar markets ets

Grow GCC trade flows share

Corp Corporate Lo Loans‐ Pe Peer co compa mparison

n

Asse Asset Gr Growt

wth

Oper Operating ing In Income

US$ billion 14.49 4.89 3.99 4.44 2.72 3.58 2.85 BankMuscat Bank Dhofar NBO Sohar Internatio… HSBC Oman Ahli Bank Oman Arab Bank

Note: Oman Arab Bank Financials as of June’ 19

SLIDE 15

17‐Nov‐19 15

Wholesale Banking – Global Financial Institutions, Investment Banking & Treasury

Amounts in USD mn.

Over Overvi view Oppor Opportuni unities es Str Strategy

Treasury: funding, asset and liability

management requirements, offer structured solutions to corporate clients

Corporate Finance: Leader in corporate

advisory: series of successful transactions and track record outside Oman

Financial Institutions: trade, DCM and

correspondent banking services

Asset Management: Largest Omani mutual

fund manager with potential for growth and expanding outside Oman. Investment solutions for high net worth individuals

Si

Sign gnif ific ican ant cro cross‐sel sell opportun

pportunities

ities to to other

ther

who wholesale esale banki banking cli clients

Leverage transaction experience in attracting

new corporate finance mandates

Leverage regional expansion to introduce

new products

Strong growth potential in the high net worth

market segment

St

Strength rengthen en Bank Bank Mu Musc scat at’s ’s le leading positio position in in specialised ecialised areas areas

Utilize the presence in regional markets to

expand business

Leverage specialised product expertise in
ther markets
Levera

Leverage on

n expertis

expertise built built to to fu further grow grow th the market rket shar share and and in increase th the ma market pot potential ntial

Se Secu curitie rities Portf rtfolio lio Asse Asset Gr Growt

wth

Oper Operating ing In Income

SLIDE 16

17‐Nov‐19 16

Personal Banking

Amounts in USD mn.

Over Overvi view Oppor Opportuni unities es Strategy tegy

Lead

Leadin ing Personal Personal Banking Banking Fran Franch chis ise in in Om Oman an

Over 1.90 million customers
Front‐runner across retail banking

segments including cards, bancassurance and remittances

Larges

Largest deliver livery channe channel ne network

rk in

in Oma Oman (169 (169 branches, branches, 485 485 ATMs, ATMs, 132 132 CD CDMs, 146 146 FFM FFMs and and th the be best on

nlin

line pl plat atform form in in Oma Oman)

Subs

Substantial ntial low low cos cost reta retail de depos posit bas base

Me

Merchant rchant acqui acquiri ring ng market market sh shar are of

f ove
ver 71%

71% by by volu volume as as of

f Sep

Sep 2019 2019 and and lea leadin ing ecommer mmerce bus business in in Oma Oman

Go

Governm vernment nt spend spending ng resulting lting in in job job cre creati tion

In

Increase in in sala salaries th thro rough variou various govern government in initiatives

Favorab

Favorable dem demograph graphics

Over 45% of the population less than 19

years old

Housing

Housing fin finance

Levera

Leveraging on

n le

leading presen presence ce in in th the reta retail il segm segmen ent

Increase penetration and cross sell
Explore new business and product lines
Te

Technol chnology gy‐le led product product de development pment and and ser servic ice of

ffe

fering ngs

Enhance

Enhance process process ef effi ficiency ciency and and cus customer

mer

conv conveni enience nce

Focu

Focus on

n de

developm pment ent and and utiliza ilizatio ion of

f

e‐deliv livery channe channels

Pe Pers rsonal Loans Loans‐ Peer eer co compar mparison

n

Asse Asset Gr Growt

wth

Oper Operating ing In Income

Note: Oman Arab Bank Financials as of June’ 19

9.75 3.39 3.59 1.87 1.88 2.27 1.30 BankMuscat Bank Dhofar NBO Ahli Bank Oman Arab Bank Sohar International HSBC Oman US$ billion

SLIDE 17

17‐Nov‐19 17

Meethaq – Islamic Banking

Amounts in USD mn.

Over Overvi view Oppor Opportuni unities es Strategy tegy

One

One of

f th

the mo most st succ successful Is Islamic banki banking

pera
peration in

in Om Oman si since 2013 2013

20

20 dedicated dedicated branch branches become operative throughout the Sultanate

Innovation in product offering and services to

create niche

Esta

Establis ishe hed Sharia Sharia Board Board comprising of experienced and reputable Sharia scholars

Growth momentum continued since the

launch indicating potential in the market

Shari’a governance structure ensures

transparent banking

Large network at disposal to leverage business
Awareness drives on Shari’a compliant banking

to increase customer base

To

To be be th the ma market et le leader by by fa far

Full fledged product and service offerings
In

Increase Meet eetha haq exclu xclusive sive branch branch net network

rk to

to an an optim

ptimum le

level

Customer Centric approach and transparency
Technology driven customer service delivery

within the Shari’a compliance ambit

Financi nancing Portf rtfolio lio Oper Operating ing In Income

1,677 2,259 2,566 2,940 3,127 1,000 2,000 3,000 4,000 2015 2016 2017 2018 Sep 2019 52 66 70 79 57 ‐ 20 40 60 80 100 2015 2016 2017 2018 Sep 2019

SLIDE 18

17‐Nov‐19 18

Financial Performance

SLIDE 19

17‐Nov‐19 19

Operating Performance & Profitability

Over Overvi view Net Net Inter eres est Ma Margins

Resilient operating performance
Stable top line income growth – 5 year CAGR of 3.9%
Stable cost to income ratio with marginal growth in operating

costs

Strong core revenue generation with net interest income and

commission and fees contributing to over 90% of total

perating income
Increasing focus on top line commission and fee income

generation

Stable net interest margin in spite of increasing cost of

funding.

Oper Operating ing In Income & Cos Cost to to Inc Income Profit

fitability

ility

66% 65% 68% 68% 68% 23% 21% 22% 22% 21% 11% 14% 10% 10% 11% 41.8% 42.2% 42.6% 42.6% 41.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2015 2016 2017 2018 Sep 2019 Net Interest Income Net Commission & fees Other Income Cost to income ratio 4.03% 3.85% 4.05% 4.31% 4.54% 4.63% 1.30% 1.22% 1.45% 1.73% 2.04% 2.12% 2.73% 2.63% 2.60% 2.58% 2.50% 2.51% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2014 2015 2016 2017 2018 Sep‐19 Yield % Cost % Spread %

SLIDE 20

17‐Nov‐19 20

Asset Quality

Over Overvie view Loan Loan Gr Grow

wth
Stable loan book growth
Conservative lending approach
Focus on high quality assets with access to top tier

borrowers

Strong project finance capabilities
Diversified loan portfolio across sectors
Adequate provisioning of impaired asset
Conservative approach on provisioning
IFRS 9 fully implemented

Gr Gross

ss Loan

Loans by by Se Sect ctor Im Impair ired asse assets ts & Provisio isioning

Import Trade 3.8% Export Trade 0.2% Wholesale & Retail Trade 2.4% Mining & Quarrying 5.6% Construction 4.5% Real Estate 3.7% Manufacturing 7.8% Electricity, gas and water 6.8% Transport and Communication 8.7% Financial Institutions 4.5% Services 8.5% Personal Loans 40.9% Agriculture and Allied Activities 0.4% Government 0.5% Others 1.7% 19,813 21,484 22,484 24,073 24,242 2.75% 2.91% 2.94% 3.09% 3.33% 8.3% 8.4% 4.7% 7.1% 0.7% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 2015 2016 2017 2018 Sep 2019 Gross loans in USD (LHS) NPL% (RHS) Loan Growth % (RHS)

SLIDE 21

17‐Nov‐19 21

Funding & Liquidity

Over Overvi view Fundi nding ng Mix

Stable funding structure with a diversified funding base
Largest deposit base in Oman with significant granularity
Retail deposits comprise 40% of total deposits
Top 20 depositors represent 27% of total deposits and comprise
f top tier Omani institutions
Strong capitalization levels
Highest CAR among Omani peers and one of strongest among

GCC peers

Adequately capitalised, with total capital ratio at 19.01% and Tier

1 at 17.81%, above the minimum regulatory levels of 13.575% and 11.575% respectively.

Liqui quid As Assets Ca Capi pital Adequacy dequacy Ra Ratio tio

SLIDE 22

17‐Nov‐19 22

Annexures

SLIDE 23

17‐Nov‐19 23

Balance Sheet

Amounts in USD 30-Sep-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15

Cash and bal. with Central Bank 2,034 3,394 2,428 2,705 6,265 Due from banks 2,062 1,236 1,538 1,368 2,575 Loans and Advances 20,223 20,334 19,113 18,447 17,391 I slamic financing receivables 3,062 2,884 2,520 2,221 1,649 Non trading investments 3,753 3,298 2,668 2,748 3,944 Tangible fixed assets 197 181 187 194 199 Other assets (incl. invt in associates) 626 590 505 422 560

Total assets 31,958 31,917 28,959 28,104 32,583

Bank deposits/ FRNs / Bonds 4,239 3,701 3,478 3,157 7,924 Customer deposits (incl. CDs) 18,538 19,491 16,778 17,389 17,502 I slamic Customer's Deposit 2,668 2,490 2,493 1,982 1,624 Other liabilities 1,335 1,126 975 962 1,034 Subordinated debt 86 102 315 430 625 Convertible bonds 84 167 246

Total liabilities 26,865 26,909 24,236 24,086 28,954

Share capital and premium 2,184 2,159 2,027 1,911 1,803 Total reserves 1,276 1,262 1,266 1,162 1,057 Cumulative changes in fair value

17
13

44 50 50 Retained profits 1,312 1,261 1,092 945 769 Shareholders' equity

4,755 4,669 4,385 4,068 3,678

Perpetual Tier I Capital

338 338 338 Total liabilities + shareholders' equity 31,958 31,917 28,959 28,104 32,583 Key ratios

Loans and advances/ customer deposits 109.8% 105.6% 112.3% 106.7% 99.4% Shareholders' equity/ total assets 14.88% 14.63% 15.14% 14.48% 11.29% Subordinated debt/ (debt + equity) 1.66% 2.00% 6.71% 9.55% 14.51% BI S total capital ratio 19.01% 19.38% 18.45% 16.90% 16.10%

SLIDE 24

17‐Nov‐19 24

Profit & Loss Statement

Amounts in USD 30-Sep-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15

Net interest income 567 719 667 651 628 Net income from Islamic financing 51 72 64 61 48 Other operating income 296 370 402 369 382

Operating income

914 1,160 1,132 1,081 1,058 Operating costs (375) (494) (478) (452) (444) 538 666 654 629 614 Net impairment losses on financial assets (99) (112) (112) (102) (108) Gain/(loss) from associates

- 6 4 5

Profit before Tax

439 554 548 531 511 Taxation (72) (88) (89) (72) (57)

Net Profit

367 467 459 459 454

Key ratios

Cost/income ratio 41.1% 42.6% 42.2% 41.8% 42.0% Return on average assets 1.53% 1.53% 1.61% 1.64% 1.72% Return on average equity 10.70% 10.83% 11.44% 12.50% 13.68% Basic EPS (US$) 0.118 0.416 0.416 0.442 0.442 Share price (US$) 1.143 1.049 0.956 1.221 1.216

SLIDE 25