15 slides from Arab Banking Corporation B S C's earnings presentation, November 2023
Slide 1: Q3 / 9M-2023 Results Presentation
f ° oN BSnk ABC / _ an Q3 / 9M-2023 Results Presente fTron—
Slide 2: Q3 / 9M 2023 Performance at a Glance
Q3 / 9M 2023 Performance at a Glance Al BarkaBc Refreshed strategy for accelerated growth and high returns, positioning Bank ABC to be MENA’s International Bank of the Future Healthy Balance Sheet +19% YoY T1 Ratio 15.4%, NSFR 122% Strong momentum backed by Core Capital and Liquidity metrics remain
Slide 3: Our Refreshed Group Strategy for 2023 to 2026 cycle
Our Refreshed Group Strategy for 2023 to 2026 cycle Al@ Bank ABC Become MENA’s International Bank of the Future 1] Accelerate our Core Performance B Maximize value of our Digital Units Accelerate Wholesale & | e Treasury Creating near term value for the Bank Creating longer-term value for the Bank [
Slide 4: 2023 Industry Awards: Pathbreaking innovations and transactions
2023 Industry Awards: Pathbreaking innovations and transac Al BarkaBe Bank ABC continues to attain top industry awards for its pathbreaking innovations and landmark transactions, reinforcing its position as MENA’s leading international bank ABC Labs awarded as one of “the World’s Best Financial Inno
Slide 5: 2023 Industry Awards: Corporate Banking and ila Bank
2023 Industry Awards: Corporate Banking and ila \l@ Bark ABC Bank ABC Group won the following awards in Q3 2023: Al sankaBe + Best Corporate Bank in Bahrain - Euromoney Awards for Excellence 2023 PROUD TO BE NAMED THE BEST CORPORATE BANK Bank ABC was commended for its cutting-edge digital IN BAHRAIN
Slide 6: Strong 9M 2023 performance with Net Profit at $183m, a growth of 61% YoY
Strong 9M 2023 performance with Net Profit at $183m, a growth of 61% YoY Al BankaBc Total Operating Income, $m 943m 791m /$943m, 19% growth on a YoY basis benefitting from underlying business growth propelled Further by higher interest rates. /Revenues tracking higher on a YoY basis across almost al
Slide 7: Strong Revenue Growth Across the Franchise
Strong Revenue Growth Across the Franchise Al Bankasc /TOI reached $943m during the 9M 23 period, 19% TOI by business (9M 23), $m higher on a YoY basis, and was well diversified . . ABC Brasil across our markets and business lines IE MENA Subsidiaries 73% 33.9% HB International Wholesale Bank Group
Slide 8: Cost to Income ratio improved
Cost to Income ratio improved Al Bank ABC /The Group continues to enforce appropriate cost discipline Operating Expenses and Cost to Income Ratio without compromising on investments into the Group’s digital transformation and strategic initiatives to build its has 554 Bank of the Future”. 175 146 Pr
Slide 9: Healthy Capital Ratios, well above Regulatory minimum
Healthy Capital Ratios, well above Regulatory minimum Al arkaBc Overview CET1 and Tier 1 Ratios, % 15.7% 15.4% /Capital base remains strong . . oe . . «10.5% /CET 1 Ratio (13.7%) comprises the majority of Tier 1 Ratio /Total CAR of 16.5% as of Sep 23 /RWA stood at $28.9bn as of Sep 23, growing by 5%
Slide 10: Underlying ECL and cost of risk improved YoY
Underlying ECL and cost of risk improved YoY Al BarkaBc /Underlying Cost of risk at 53bps, better on a YoY basis due to benign provision experience across all other business and units /Headline ECL and cost of risk impacted by one-off Americanas! Company Fraud event impacting our business in Brasil.
Slide 11: Well Diversified and Liquid Balance Sheet
Well Diversified and Liquid Balance Sheet \l@pankasc /Total assets as of Sep 23 at $41.3 billion, 13% higher than YE Sep 23 Assets by Instrument, $bn 2022 levels, primarily reflecting increase in high quality 41.3 36.6 B90 Oh marketable securities 3305 21 “ 6.5 : /Book continues to be positioned wit
Slide 12: 9M 2023 net profit of $183m, a surge of 61% on a YoY basis
/ 9M 2023 net profit of $183m, a surge of 61% ona YoY basis providing a strong performance for 2023. / The Group’s total operating income for 9M 2023 at $943m, a 19% growth YoY, with momentum set to continue from core business growth and benefitted From strong interest rates / Operating expenses wer
Slide 13: Appendix: Normalized Financials
Profit or Loss Balance Sheet Appendix: Normalized Financials Al BarkaBe US$ millions FY 2019 FY 2020 FY 2021 FY 2022 9M 2022 9M 2023 Net Interest Income 564 516 592 786 564 685 Non-interest Income* 311 233 277 314 227 258 Total Operating Income (TOI)* 875 749 869 1,100 791 943 Total Operating Expens
Slide 14: For more information, contact us
ZA) For more information, contact us on InvestorRelations@bank-abc.com \l@BankABC Bank ABC Head Office P.O. Box 5698, Manama Kingdom of Bahrain www.bank-abc.com \ - Se, 4 Sang nese 14
Slide 15: Important disclaimer
Al ankaBc IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Arab Banking Corporation BS. ("Bank ABC") or any person acting on behalf of Bank ABC, and any question-and-answer session that follows the oral presentation (collectively, the "I