Arab Banking Corporation B S C · BAHRAIN:ABC
Arab Banking Corporation B S C — FY2023 Earnings Presentation
20 slides from Arab Banking Corporation B S C's earnings presentation, Feb 15, 2024
Slide 1: Bank ABC
\00 Bank ABC
Slide 2: 2023 Financial Performance — Key Highlights
2023 Financial Performance — Key Highlights Update on Group Strategy Sustainability Embedded Across the Value Chain 2023 Awards Dividend Proposal — Strong YOY Growth 2023 Detailed Financial Performance /
Slide 3: 2023 Financial Performance — Key Highlights
1) 2023 Financial Performance — Key Highlights \lBankaABec Refreshed strategy for accelerated growth and high returns, positioning Bank ABC to be / Record Revenues of $1,279m +16% YoY Strong momentum backed by Core business growth and interest rate tailwinds / Healthy Balance Sheet T1 Ratio 15.0%, N
Slide 4: Update on Group Strategy
2) Update on Group Strategy \lBankABc \kd Building MENA's International Bank of the Future / Newly approved © Accelerate our Core Performance EB Maximize value of our Digital Units Group Strategy Accelerate Boost Capitalize : . me fe Pee ! /- Clear objectives milestones and strategic KPls establishe
Slide 5: Sustainability Embedded Across the Value Chain
3 Sustainability Embedded Across the Value Chain Al BankaBc Embedding Bank ABC Sustainability Strate sustainability acre Bank ABC’s value Risk Governance Operations Sustainable People & ° é Management Finance Communities chain to ensure: Stakeholder engagement 2023 Achievements 2024 Objectives 7 Ini
Slide 6: 2023 Awards — Bank of the Year
a 2023 Awards — Bank of the Year For the third time, Bank ABC has been awarded , the Bank of the Year THE BANKER Award For 2023 by The Banker/ FT. ae The award stands testament to Bank ABC’s consistent efforts to develop a stronger, more resilient bank for its clients, by way of accelerating its amb
Slide 7: ila Bank named Best Consumer Digital Bank in Bahrain
\ For the third consecutive year, ila Bank \ is named Best Consumer Digital Bank in Bahrain ila Bank continues its streak of excellence winning all six titles at the ‘World's Best Consumer Digital Bank Awards 2023’ by Global Finance. Oia, $ a 2 & Opp Rakice Best Online Product Offerings ’ Best User
Slide 8: 2023 Awards - 15+ Regional and Bahrain Awards
4 2023 Awards - 15+ Regional and Bahrain Awards nal Awards IQBAL GCiPRakce rain Awards IQBAL GCiPRakce EUROMONEY emeafinance EUROMON EV Best Trade Finance Provider in the Middle East - Global Finance World’s Best Financial Innovation Labs - Global Finance Best Overall Cash Management Provider in Tun
Slide 9: 50% YOY Increase in Dividends in Line with Profit Growth
5) 50% YOY Increase in Dividends in Line with Profit Growth Dividends Recommendation, for approval at 50% the AGM, a cash dividend of 2.25c per share equivalent to US$ 70 million (+50% YOY) 2022 2023 / Maintain pay-out ratio ~30% of Net Profit Net Profit Payout / Dividend yield of 7.5% ’ Allows for
Slide 10: 9
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Slide 11: Strong 2023 Performance With Net Profit at $235m, a Growth of 53%
Strong 2023 Performance With Net Profit at $235m, a Growth of 53% Net Profit at $235m, a growth of 53% YoY | aaltesiast agatk of the Yeas 23 - Bahrain Record high in Group history at $1,279m, 16% growth YoY on the back of strong core business growth and stable funding base, combined with interest ra
Slide 12: Strong Revenue Growth Across the Franchise
Strong Revenue Growth Across the Franchise \l@BankaABc / TOlreached a record high in Group / Net interest income at $935m +19% / Other operating income also history at $1,279m during 2023, 16% year on year supported by strong up 9% YoY reflecting higher on a YoY basis, and was well loan volumes, int
Slide 13: Cost to Income Ratio Improved
Cost to Incom Performing while transforming and maintaining robust cost disciplines tio Improved ~3% 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”. +16
Slide 14: Steady Cost of Risk
Steady Cost of Risk I Bank ABC Business growth being prudently managed by a healthy level of risk appetite and risk frameworks Underlying Cost of risk at 55bps remained steady at last year levels due to benign provision experience across all other business and units Headline ECL and cost of risk imp
Slide 15: Healthy Capital Ratios, Well Above Regulatory Minimum
Healthy Capital Ratios, Well Above Regulatory Minimum \l@BankaABc Overview / Capital base remains strong / CET 1 Ratio (13.5%) comprises the majority of Tier 1 Ratio CET1 and Tier 1 Ratios, % 15.7% 15.0% 7 L ~ Dec-22 Dec-23 CETL = = ratio ME 135% / Total CAR of 16.1% as of Dec 23 Total CAR, % 16.8%
Slide 16: Well Diversified and Liquid Balance Sheet
Well Diversified and Liquid Balance Sheet \B@ Bank ABC / Record Total Assets of $44bn, exceeding the $40bn mark for the first time in Group history (+20% YOY), from a combination of loans, securities and liquid asset growth / Book continues to be positioned with 64% of Total Assets maturing within 1
Slide 17: In Summary
The Group has refreshed its strategy For the 2023 to 2026 cucle to focus on accelerated growth and high returns, positioning Bank ABC to be MENA's International Bank Record Group Revenues for 2023 at $1,279m, a 16% growth YoY, with strong momentum backed by core business growth and interest rate tai
Slide 18: Appendix: Normalized Financials
Appendix: Normalized Financials \l@BankaBc US$ millions — Net Interest Income. 564 592 786 935 Non-nterest Income* 31 277 315 344, Total Operating Income (TO!)* 875 869 1,101 1279 Total Operating Expenses “524 -569 -690 “164 Net Operating Profit 351 300 41 515 Provisions 82 -106 -n9 “145 Profit befo
Slide 19: Contact Us
Contact Us \lBankaABec For more information, contact us on I Bank ABC AS MEMBER >> gS NEMBER oS / : /@ P.O. Box 5698, Manama Kingdom of Bahrain / ‘| ymeira | (8
Slide 20: Disclaimer
Disclaimer \lBankABc IMPORTANT: The following applies to this document, the oral presentation of the informationin this document by Arab Banking Corporation BSC. ("Bank ABC") or any person acting on behalf of Bank ABC, and any question-anc-answer session that follows the oral presentation (collectiv
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