Arab Banking B S C : Q1 investors Highlights

Q1 2024

Results Presentation

www.bank-abc.com

Q1 2024 Results - Key Highlights

Strong momentum in strategy execution accelerates the delivery of our vision to build MENA's International Bank of the Future

Strong start to 2024 with 15% growth in revenues

Q1 Revenues at $343m reflecting strong momentum backed by core business growth, sustained interest rates and improved cost of credit

Net profit US$75m +25% YoY

Strong growth achieved on the back of robust cost discipline while facilitating an intensive investment plan to deliver our strategic roadmap

Healthy Balance Sheet

T1 Ratio 14.8%*,

NSFR 126%, LCR 260%

Capital, Funding and Liquidity metrics remain strong with healthy buffers to maintain growth momentum

ROE 7.3%**,

+130bps YoY

Reflecting the positive momentum in improving capital returns across our core businesses

*Group consolidated Tier 1 ratio of 14.8% includes a proportion of an Additional Tier 1 issuance in Q1 by Banco ABC Brazil, which is awaiting CBB approval and has an immaterial impact on the ratio	/1
**Annualized return on equity, extrapolated Q1 net profit

Strong momentum in our Strategy Execution

Execution of the strategy is tracking well with positive momentum across all our pillars of strategy

Sustainability fully embedded in our Strategy Roadmap (First Sustainability Report for the Consolidated Group to be published this year)

Overall, the Bank continues to receive prestigious awards in Q1-24, which demonstrates early industry recognition of delivering our vision

/2

Industry recognition continues in 2024

Bank ABC continues to attain top industry awards for its pathbreaking innovations and landmark transactions

reinforcing its position as MENA's

leading international bank.

'Best Trade Finance Provider in the

Middle East' - Global Finance World's

Best Trade Providers Awards 2024

Industry recognition continues in 2024

	Regional	∕ 'Best Trade Finance Provider in
	Finance World's Best Trade
		the Middle East' - Global
		Finance Providers Awards
		∕ 'Best Trade Finance Provider in
		Bahrain' - GF World's Best Trade
	Country	Finance Providers Awards
	∕ 'Best Trade Finance Provider in
		Tunisia' - GF World's Best Trade
		Finance Providers Awards
		∕ 'Global Sovereign Sukuk Deal of the
	Deals	Year' for Bank ABC's role as JLM &
	Bookrunner in the US$ 1 billion Sukuk
		for the Ministry of Finance & National
		Economy - Kingdom of Bahrain

∕ 'Best Trade Finance Bank in the	∕ 'Fastest Growing Digital Bank in
Middle East' - GTR Leaders in	MENA Central' award for ila
Trade Awards	Bank - Mastercard

∕ 'Best Digital Bank in Bahrain' - for ila	∕ 'Best Islamic Financial Institution in
Bank - MENA Banking Excellence	Bahrain' for ABC Islamic- Global
Awards by Middle East Economic	Finance's World's Best Islamic
Digest (MEED)	Finance Institutions Awards
∕ 'Best Islamic Bank in 2023'' - IFN
Best Banks Polls

∕ 'IFN Hybrid Deal of the Year' for ABC	∕ 'Global Corporate Sukuk Deal of
Islamic's role as JLM & Bookrunner in	the Year' for Bank ABC's role as
the US$1 billion hybrid Ijarah-Tawarruq	JLM & Bookrunner in the
Sukuk transaction for Energy	USD 1 billion Sukuk transaction for
Development Oman	EDO Gas

4

Strong Revenue Growth Across the Franchise

TOI reached $343m during Q1 2024, +15% higher on a YoY basis, and was well diversified across our markets and business lines

Net interest income at $233m +4% year on year supported by strong loan volumes and higher interest rates

Other operating income up a strong 45% YoY reflecting increasing client cross sell and ancillary fee income

Q1 2024 TOI by business

Q1 2024 NII vs Other income, $m

+15%

16.6%

299

343

8.7%	31.8%		ABC Brasil
		MENA Subsidiaries

International Wholesale Bank

			Group Treasury
22.5%			Other*
20.4%

76 +45% 110

223 +4% 233

Q1 '23

Q1 '24

NII

Other Operating Income

* Other income includes activities of Arab Financial Services, ila and Equity income.	/5

Cost to Income Ratio continues to improve

Performing while transforming and maintaining robust cost disciplines

The Group continues to enforce appropriate cost discipline without compromising on investments into the Group's digital transformation and strategic initiatives to build its "Bank of the Future".

+15% increase in TOI YoY

+14% increase in costs YoY

+1% "positive jaws"

Cost to income ratio continues to improve by 50bps to 57.8% on a headline basis and 52.8% when adjusted for ongoing investment in

digital initiatives

Operating Expenses and

Cost to Income Ratio

14%

198

174

62 Other Cost

53

	14	Premises
	& Equipment
13

108	122	Staff Cost

Q1 '23

Q1 '24

C/I ratio	58.3%		57.8%
C/I Ratio
53.5%		52.8%	/6
(ex-Digital)

Improving Cost of Risk

Business growth being prudently

ECLs down 16% YoY to $36m in Q1 2024 reflecting improved cost

ECL and cost of risk, $m, bps

managed by a healthy level of risk appetite and risk frameworks

of credit

Cost of risk at 75bps improving compared to Q1 2023

43

-16%

36

NPL Ratio and Coverage ratio remain at healthy levels

Q1 '23

Q1 '24

1. Credit Loss expense / Gross Loans

Cost of risk1

Coverage

ratio

NPL Ratio

93 bps

103%

3.1%

75 bps

90%

3.8%

/7

Healthy Capital Ratios, Well Above Regulatory Minimum

Overview

Capital base remains strong

CET 1 Ratio (13.0%) comprises the majority of Tier 1 Ratio

CET1 and Tier 1 Ratios, %

15.0% 14.8%*

10.5%

Dec-23Mar-24

CET1

Total CAR of 15.9% as of Mar 2024

Total CAR, %

16.1% 15.9%

12.5%

RWA stood at $30.3bn as of Mar 24, increasing by 0.3% over Dec 23

RWA by Type of Risk, $bn

30.230.3

2.6

3.2

27.627.1

Dec 23

Mar 24

Operational & Market Credit

ratio

13.5% 13.0%

*Group consolidated Tier 1 ratio of 14.8% includes a proportion of an Additional Tier 1 issuance in Q1 by Banco ABC Brazil, which is awaiting CBB approval and has an immaterial impact on the ratio

/8

Well Diversified and Liquid Balance Sheet

Total Assets of $41.4bn at the end of Q1 2024, compared to $43.9bn at the 2023 year-end, a 6% reduction, reflecting short-term asset and liability management actions

Book continues to be positioned with 61% of Total Assets maturing within 1-year

Loans comprised 45% of Total Assets. Expectations are for lending growth to pick up as we progress through 2024, with a strong deal pipeline across the franchise

Net loans to customer deposits ratio at 84%, higher than YE 2023 ratio of 80%

Strong liquid funds position with LCR of 260% 1 and NSFR of 126%

1 LCR calculated net of trapped liquidity. 2 Liquid funds includes placements with banks & other financial institutions and securities bought under repurchase agreements. 3 >5 years includes undated.

Q1 2024 Assets by Instrument, $bn

43.9	41.4
	3.5		Other
			3.5
8.9
	6.0		Liquid Funds(2)
12.4	13.3	Marketable Securities

19.1

18.7

Loans

Dec-23Mar-24

Q1 2024 Assets by Maturity, $bn

41.4	18.7
32%	16%		< 1m
	47%		1m - 1Y
29%		1Y - 5Y
					>5Y
22%	30%
17%
	7%
Assets	Loans	/9