Arab Banking B S C : First Quarter Financial Statements

About this update from Arab Banking Corporation B S C

Arab Banking Corporation (B.S.C.) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2026 (REVIEWED) Ernst & Young - Middle East P.O. Box 140 East Tower, 10 th Floor Bahrain World Trade Center Manama, Kingdom of Bahrain Tel: +973 1753 5455 Fax: +973 1753 5405 [email protected] https://www.ey.com C.R. No. 29977-1 REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF ARAB BANKING CORPORATION (B.S.C.) Introduction We have reviewed the accompanying interim condensed consolidated financial statements of Arab Banking Corporation (B.S.C.) [the "Bank"] and its subsidiaries [together the "Group"] as at 31 March 2026, comprising of the interim consolidated statement of financial position as at 31 March 2026, and the related interim consolidated statements of profit or loss, comprehensive income, cash flows and changes in equity for the three-month period then ended, and explanatory notes. The Bank's Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with IAS 34 Interim Financial Reporting. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34. 12 May 2026 Manama, Kingdom of Bahrain A member firm of Ernst & Young Global Limited Arab Banking Corporation (B.S.C.) INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 March 2026 (Reviewed) All figures in US$ Million Reviewed 31 March Audited 31 December Notes 2026 2025 ASSETS Liquid funds 3,205 3,127 Trading securities 1,711 1,205 Placements with banks and other financial institutions 2,346 2,240 Securities bought under repurchase agreements 1,077 1,310 Non-trading investments 4 13,694 17,445 Loans and advances 5 21,157 20,661 Other assets 3,738 3,687 Premises and equipment 237 237 TOTAL ASSETS 47,165 49,912 LIABILITIES Deposits from customers 26,142 26,491 Deposits from banks 4,466 4,065 Certificates of deposit 497 383 Securities sold under repurchase agreements 6,579 9,074 Other liabilities 2,931 3,239 Borrowings 1,434 1,426 Total liabilities 42,049 44,678 EQUITY Share capital 3,110 3,110 Treasury shares (6) (6) Statutory reserve 624 624 Retained earnings 1,538 1,585 Other reserves (1,310) (1,185) EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT 3,956 4,128 Additional / perpetual tier-1 capital 590 590 Equity attributable to the shareholders of the parent and perpetual instrument holders 4,546 4,718 Non-controlling interests 570 516 Total equity 5,116 5,234 TOTAL LIABILITIES AND EQUITY 47,165 49,912 These interim condensed consolidated financial statements were authorised for issue by the Board of Directors on 12 May 2026 and signed on their behalf by the Chairman, Deputy Chairman and the Acting Group Chief Executive Officer. H.E. Naji Belgasem Abdulaziz Fahad Alhudaib Brendon Hopkins Chairman Deputy Chairman Acting Group Chief Executive Officer The attached notes 1 to 14 form part of these interim condensed consolidated financial statements. 2 Arab Banking Corporation (B.S.C.) INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS Three-month period ended 31 March 2026 (Reviewed) All figures in US$ Million Reviewed Three months ended 31 March Notes 2026 2025 OPERATING INCOME Interest and similar income 795 741 Interest and similar expense (554) (510) Net interest income 241 231 Other operating income 6 103 97 Total operating income 344 328 OPERATING EXPENSES Staff 130 124 Premises and equipment 16 14 Other 66 57 Total operating expenses 212 195 NET OPERATING PROFIT BEFORE CREDIT LOSS EXPENSE AND TAXATION 132 133 Credit loss expense 7 (46) (21) PROFIT BEFORE TAXATION 86 112 Taxation charge 8 (17) (21) PROFIT FOR THE PERIOD 69 91 Attributable to: Shareholders of the parent 52 76 Non-controlling interests 17 15 69 91 BASIC AND DILUTED EARNINGS PER (EXPRESSED IN US$) 0.014 0.022 H.E. Naji Belgasem Chairman Abdulaziz Fahad Alhudaib Deputy Chairman Brendon Hopkins Acting Group Chief Executive Officer Arab Banking Corporation (B.S.C.) INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Three-month period ended 31 March 2026 (Reviewed) All figures in US$ Million Reviewed Three months ended 31 March 2026 2025 PROFIT FOR THE PERIOD Other comprehensive income (loss): Other comprehensive income (loss) that will be reclassified (or recycled) to profit or loss in subsequent periods: Foreign currency translation: Unrealised gain on exchange translation in foreign subsidiaries 17 82 (119) 28 (102) 110 69 91 Debt instruments at FVOCI: Net change in fair value during the period Other comprehensive income (loss) that will not be reclassified (or recycled) to profit or loss in subsequent periods: Net change in fair value of FVOCI equity securities during the period - 1 Other comprehensive (loss) income for the period TOTAL COMPREHENSIVE (LOSS) INCOME FOR THE PERIOD - 1 (102) 111 (33) 202 Attributable to: Shareholders of the parent Non-controlling interests (73) 40 154 48 (33) 202 Arab Banking Corporation (B.S.C.) INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS Three-month period ended 31 March 2026 (Reviewed) All figures in US$ million Reviewed Three months ended 31 March 2026 2025 OPERATING ACTIVITIES Profit for the period Adjustments for: Credit loss expense Depreciation and amortisation Gain on disposal of non-trading debt investments - net Changes in operating assets and liabilities: Trading securities Placements with banks and other financial institutions Securities bought under repurchase agreements Loans and advances Other assets Deposits from customers Deposits from banks Securities sold under repurchase agreements Other liabilities Exchange rate and other non-cash movements (437) (125) (167) (283) 275 11 (370) (129) 42 256 (446) 354 345 (298) (2,512) (1,498) (470) (204) 112 5 (3,501) (1,790) 69 91 46 20 (8) 21 18 (9) Net cash used in operating activities INVESTING ACTIVITIES Purchase of non-trading investments Sale and redemption of non-trading investments Purchase of premises and equipment Sale of premises and equipment Investment in subsidiaries - net (6,254) 9,803 (56) 3 2 (9,311) 9,463 (11) 1 - Net cash from investing activities 3,498 142 FINANCING ACTIVITIES Issue of certificates of deposit Repayment of certificates of deposit Issue of borrowings Interest paid on additional / perpetual tier-1 capital Dividend paid to the Bank's shareholders Dividend paid to non-controlling interests 349 95 (234) (74) - 104 (9) (9) - (85) (10) (8) Net cash from financing activities 96 23 Net change in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of the period 93 (1,625) (15) 21 3,127 3,636 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 3,205 2,032 Arab Banking Corporation (B.S.C.) INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Three-month period ended 31 March 2026 (Reviewed) All figures in US$ Million Equity attributable to the shareholders of the parent Other reserves Additional / perpetual tier-1 capital Non-controlling interests Total equity Foreign exchange Cumulative Pension Share Treasury Statutory Retained General translation changes in fund capital shares reserve earnings* reserve adjustments fair value reserve Total At 31 December 2025 3,110 (6) 624 1,585 100 (1,326) 79 (38) 4,128 590 516 5,234 Profit for the period - - - 52 - - - - 52 - 17 69 Other comprehensive (loss) income for the period - - - - - (6) (119) - (125) - 23 (102) Total comprehensive income (loss) for the period - - - 52 - (6) (119) - (73) - 40 (33) Dividend** - - - (85) - - - - (85) - (10) (95) Interest paid on additional / perpetual tier-1 capital - - - (9) - - - - (9) - - (9) Other equity movements in subsidiaries - - - (5) - - - - (5) - 24 19 At 31 March 2026 (reviewed) 3,110 (6) 624 1,538 100 (1,332) (40) (38) 3,956 590 570 5,116 * Retained earnings include non-distributable reserves arising from consolidation of subsidiaries amounting to US$ 570 million (31 December 2025: US$ 565 million). ** A dividend of US$ 0.0275 per share (2024: US$ 0.0275 per share) for the year 2025 was approved for payment at the Annual General Meeting held on 26 March 2026 and paid on 6 April 2026. Arab Banking Corporation (B.S.C.) INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Three-month period ended 31 March 2026 (Reviewed) All figures in US$ Million Equity attributable to the shareholders of the parent Other reserves Additional / perpetual tier-1 capital Non-controlling interests Total equity Foreign exchange Cumulative Pension Share Treasury Statutory Retained General translation changes in fund capital shares reserve earnings* reserve adjustments fair value reserve Total At 31 December 2024 3,110 (6) 598 1,458 100 (1,437) 28 (34) 3,817 390 436 4,643 Profit for the period - - - 76 - - - - 76 - 15 91 Other comprehensive income for the period - - - - - 49 29 - 78 - 33 111 Total comprehensive income for the period - - - 76 - 49 29 - 154 - 48 202 Dividend - - - (85) - - - - (85) - (8) (93) Interest paid on additional / perpetual tier-1 capital - - - (9) - - - - (9) - - (9) Other equity movements in subsidiaries - - - (1) - - - - (1) - (1) (2) At 31 March 2025 (reviewed) 3,110 (6) 598 1,439 100 (1,388) 57 (34) 3,876 390 475 4,741 * Retained earnings include non-distributable reserves arising from consolidation of subsidiaries amounting to US$ 564 million (31 December 2024: US$ 560 million). ** A dividend of US$ 0.0275 per share (2023: US$ 0.0225 per share) for the year 2024 was approved for payment at the Annual General Meeting held on 16 March 2025 and paid during the period. Arab Banking Corporation (B.S.C.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 March 2026 (Reviewed) All figures in US$ million 1 INCORPORATION AND ACTIVITIES Arab Banking Corporation (B.S.C.) [the "Bank"] is incorporated in the Kingdom of Bahrain by an Amiri decree and operates under a wholesale banking licence issued by the Central Bank of Bahrain (the "CBB"). The Bank is a Bahraini Shareholding Company with limited liability and is listed on the Bahrain Bourse. The Central Bank of Libya is the ultimate parent of the Bank and its subsidiaries (together the "Group"). The Bank's registered office is at ABC Tower, Diplomatic Area, P.O. Box 5698, Manama, Kingdom of Bahrain. The Bank is registered under commercial registration number 10299 issued by the Ministry of Industry and Commerce, Kingdom of Bahrain. The Group is a leading provider of Trade Finance, Treasury, Project & Structured Finance, Syndications, Corporate & Institutional Banking, Islamic Banking services and the digital, mobile-only banking space named "ila Bank" within retail consumer banking services. Retail banking services are only provided in the MENA region. 2 BASIS OF PREPARATION AND CHANGES TO THE GROUP'S ACCOUNTING POLICIES 2.1 Basis of preparation The interim condensed consolidated financial statements for the three-month period ended 31 March 2026 have been prepared in accordance with IAS 34 Interim Financial Reporting (IAS 34). The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2025. 2.2 New and amended standards and interpretations adopted by the Group The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of new standards or amendments to existing standards that have become applicable effective from 1 January 2026. 2.3 New standards, interpretations and amendments issued but not yet effective There are certain new standards, interpretations and amendments that are issued as of 31 March 2026, which were applicable to the Group and not yet effective up to the date of issuance of the Group's interim condensed consolidated financial statements. The management will assess the impact of implementation of these standards prior to their adoption on effective dates. The Group has not early adopted any new and amended standard or interpretation that has been issued but is not yet effective. 3 SUMMARY OF MATERIAL ACCOUNTING POLICIES The accounting policies, estimates and assumptions used in the preparation of these interim condensed consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements for the year ended 31 December 2025 except for adoption of new standards and amendments effective from 1 January 2026. Arab Banking Corporation (B.S.C.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 March 2026 (Reviewed) All figures in US$ million 4 NON-TRADING INVESTMENTS Audited 31 December 2025 Debt securities At amortised cost 6,084 9,648 At FVOCI 7,661 7,844 13,745 17,492 ECL allowance (75) (75) Debt securities - net 13,670 17,417 24 28 24 28 13,694 17,445 Reviewed 31 March 2026 Equity securities At FVOCI Following are the stage wise break-up of debt securities as of 31 March 2026 and 31 December 2025: 31 March 2026 (Reviewed) Stage 1 Stage 2 Stage 3 Total Debt securities, gross ECL allowance 13,681 - (11) - 13,745 (75) 64 (64) 13,670 - - 13,670 31 December 2025 (Audited) Stage 1 Stage 2 Stage 3 Total Debt securities, gross ECL allowance 17,428 - (11) - 17,492 (75) 64 (64) 17,417 - - 17,417 Arab Banking Corporation (B.S.C.) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 31 March 2026 (Reviewed) All figures in US$ million 5 LOANS AND ADVANCES 31 March 2026 (Reviewed) Stage 1 Stage 2 Stage 3 Total Loans and advances, gross ECL allowances 20,445 617 (96) (60) 21,778 (621) 716 (465) 20,349 557 251 21,157 31 December 2025 (Audited) Stage 1 Stage 2 Stage 3 Total Loans and advances, gross ECL allowances 20,029 568 (89) (81) 21,379 (718) 782 (548) 19,940 487 234 20,661 As at 1 January 2026 Net transfers between stages Amounts written-off Charge for the period - net Exchange adjustments and other movements 89 81 (1) (26) - - 7 4 1 1 718 - (143) 43 3 621 Total As at 1 January 2025 Net transfers between stages Amounts written-off Charge for the period - net Exchange adjustments and other movements 136 68 1 7 - - 2 (6) - - 617 - (5) 22 14 An analysis of movement in the ECL allowance during the period ended 31 March 2026 and 31 March 2025 are as follows: Reviewed Stage 1 Stage 2 Stage 3 548 Total 27 (143) 32 1 As at 31 March 2026 96 60 465 Reviewed Stage 1 Stage 2 Stage 3 413 (8) (5) 26 14 As at 31 March 2025 139 69 440 648 6 OTHER OPERATING INCOME Reviewed 31 March 31 March 2026 2025 Fee and commission income* Fee and commission expense Fee and commission income - net Bureau processing income Net gain from trading book (including foreign currencies transaction) Gain on disposal of non-trading debt investments - net Merchant acquiring income Brokerage income - net Others - net 59 56 (2) (1) 57 55 9 8 12 8 8 9 10 5 6 5 1 7 103 97 *Included in the fee and commission income is US$ 2 million (31 March 2025: US$ 4 million) of fee income relating to funds under management. 7 CREDIT LOSS EXPENSE Reviewed 31 March 31 March 2026 2025 Non-trading debt investments Loans and advances Credit commitments and contingent items Other financial assets Recoveries from written-off loans and advances 1 1 44 26 2 (1) - (1) (1) (4) 46 21 8 TAXATION The tax expense for the period is as follows: Reviewed 31 March 31 March 2026 2025 Current tax - Pillar Two taxes in Kingdom of Bahrain - on foreign operations (excluding Pillar Two tax charge) (1) 15 2 17 Deferred tax - on Kingdom of Bahrain operations - on foreign operations - - 3 2 17 21 9 OPERATING SEGMENTS For management purposes, the Group is organised into five operating segments which are based on business units and their activities. The Group has accordingly been structured to place its activities under the distinct divisions which are as follows: - MENA subsidiaries cover retail, corporate and treasury activities of subsidiaries in North Africa and Levant; - International wholesale banking encompasses corporate and structured finance, trade finance, Islamic banking services and syndications; - Group treasury comprises treasury business of Bahrain Head Office, New York and London; - ABC Brasil primarily reflects the commercial banking and treasury activities of the Brazilian subsidiary Banco ABC Brasil S.A., focusing on the corporate and middle market segments in Brazil and its related holding company; and - Others includes activities of the Head Office, Arab Financial Services Company B.S.C. (c) and ila Bank. International MENA wholesale subsidiaries banking Three-month period ended 31 March 2026 (Reviewed) Group treasury ABC Brasil Net interest income Other operating income 54 44 8 100 35 241 13 23 18 25 24 103 Others Total Total operating income 67 67 26 125 59 344 Operating expenses Profit before taxation, credit loss and unallocated operating expenses Credit loss expense Taxation charge Unallocated operating expenses Operating assets as at 31 March 2026 Operating liabilities as at 31 March 2026 (38) (38) (10) (57) (32) (175) 29 (9) 29 (16) 16 - 68 (20) 27 (1) 169 (46) (17) (37) Profit for the period 69 5,492 11,354 16,445 12,877 997 47,165 4,693 - 24,695 11,428 1,233 42,049 9 OPERATING SEGMENTS (continued) International MENA wholesale subsidiaries banking Three-month period ended 31 March 2025 (Reviewed) Group treasury ABC Brasil Net interest income Other operating income 51 63 8 76 33 231 12 27 18 24 16 97 Others Total Total operating income 63 90 26 100 49 328 Operating expenses (37) (38) (9) (46) (28) (158) Profit before taxation, credit loss and unallocated operating expenses 26 52 17 54 21 170 Credit loss expense 3 (11) - (13) - (21) Taxation charge (21) Unallocated operating expenses (37) Profit for the period 91 Operating assets as at 31 December 2025 (Audited) 5,592 11,651 19,857 11,738 1,074 49,912 Operating liabilities as at 31 December 2025 (Audited) 4,796 - 28,247 10,442 1,193 44,678 10 FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables provide the fair value measurement hierarchy of the Group's financial assets and financial liabilities measured at fair value in these financial statements. Quantitative disclosure of fair value measurement hierarchy for assets as at 31 March 2026 (Reviewed): Financial assets measured at fair value: Level 1 Level 2 Level 3 Total Trading securities Non-trading investments Loans and advances Derivatives held for trading Derivatives held as hedges 870 7,012 - 852 - 651 673 1,765 492 49 190 - - - - 1,711 7,685 1,765 1,344 49 Quantitative disclosure of fair value measurement hierarchy for liabilities as at 31 March 2026 (Reviewed): Financial liabilities measured at fair value: Level 1 Level 2 Level 3 Total Derivatives held for trading Derivatives held as hedges 642 - 329 51 - - 971 51 10 FAIR VALUE OF FINANCIAL INSTRUMENTS (continued) Quantitative disclosure of fair value measurement hierarchy for assets as at 31 December 2025 (Audited): Financial assets measured at fair value: Level 1 Level 2 Level 3 Total Trading securities Non-trading investments Loans and advances Derivatives held for trading Derivatives held as hedges 781 7,211 - 638 - 240 661 867 387 34 184 - - - - 1,205 7,872 867 1,025 34 Quantitative disclosure of fair value measurement hierarchy for assets as at 31 December 2025 (Audited): Financial liabilities measured at fair value: Level 1 Level 2 Level 3 Total Derivatives held for trading Derivatives held as hedges 461 - 249 79 - - 710 79 Fair values of financial instruments not carried at fair value Except for the following, the fair value of financial instruments which are not carried at fair value are not materially different from their carrying value. Reviewed Audited 31 March 2026 31 December 2025 Carrying value Fair Carrying Fair value value value Financial assets Non-trading debt investments at amortised cost - gross (level 1 and 2) 6,066 9,648 Financial liabilities Borrowings - perpetual (level 1) 6,084 9,645 192 215 182 196 For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation at the end of each reporting period. Financial instruments in level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Financial instruments in level 2 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. 10 FAIR VALUE OF FINANCIAL INSTRUMENTS (continued) Financial instruments in level 3 The fair value of financial instruments that are neither traded in an active market nor have observable inputs is determined by valuation techniques. These valuation techniques include an internal model which uses observable market yield curves and expected loss methodology for securities. Quotes provided by fund administrators are used for funds valuation. Transfers between level 1, level 2 and level 3 There were no transfers between level 1, level 2 and level 3 during the current and prior period. 11 CREDIT COMMITMENTS AND CONTINGENT ITEMS a) Exposure and ECL by Stage 31 March 2026 (Reviewed) Stage 1 Stage 2 Stage 3 Total 4,163 3,082 3,716 39 47 31 53 3 1 4,255 3,132 3,748 Short-term self-liquidating trade and transaction-related contingent items Direct credit substitutes, guarantees Undrawn loans and other commitments Credit exposure before applying credit conversion factor 10,961 117 57 11,135 Credit exposure after applying credit conversion factor 4,602 89 27 4,718 Risk weighted equivalents 3,781 Short-term self-liquidating trade and transaction-related contingent items Direct credit substitutes, guarantees Undrawn loans and other commitments Credit exposure before applying credit conversion factor ECL allowance 8 9 12 29 31 December 2025 (Audited) Stage 1 Stage 2 Stage 3 Total 4,474 2,816 3,261 51 73 42 41 12 7 4,566 2,901 3,310 10,551 166 60 10,777 Credit exposure after applying credit conversion factor 4,366 103 32 4,501 Risk weighted equivalents 3,860 ECL allowance 8 7 12 27 11 CREDIT COMMITMENTS AND CONTINGENT ITEMS (continued) a) Exposure and ECL by Stage (continued) An analysis of movement in the ECL allowance during the period are as follows: Stage 1 Stage 2 Stage 3 Total As at 1 January 2026 ECL movements for the period - net 8 - 7 2 12 - 27 2 As at 31 March 2026 (reviewed) 8 9 12 29 Stage 1 Stage 2 Stage 3 Total As at 1 January 2025 ECL movements for the period - net 8 1 11 - 10 3 29 4 As at 31 March 2025 (reviewed) 9 11 13 33 b) Derivatives The outstanding notional amounts at the reporting date were as follows: Reviewed 31 March 2026 Audited 31 December 2025 Interest rate swaps Currency swaps Forward foreign exchange contracts Options Futures 28,577 28,924 2,344 2,136 19,499 17,655 18,695 16,119 4,110 4,060 73,225 68,894 Risk weighted equivalents (credit and market risk) 2,302 2,434 12 RISK MANAGEMENT Liquidity risk The Group is required to comply with the liquidity requirements as stipulated by its regulator, the CBB. These requirements relate to maintaining a minimum of 100% for liquidity coverage ratio (LCR) and net stable funding ratio (NSFR). LCR is calculated as a ratio of its stock of high quality liquid assets (HQLA) and net outflows over the next 30 calendar days. NSFR is calculated as a ratio of 'available stable funding' to 'required stable funding'. As at 31 March 2026, the Group's LCR and NSFR were at 311.% (31 December 2025: 237%) and 127% (31 December 2025: 127%) respectively. 31 March 2026 31 December 2025 Unweighted Values (i.e. before applying relevant factors) Unweighted Values (i.e. before applying relevant factors) No specified maturity Less than 6 months Over 6 months and less than one year Over one year Total weighted value Over 6 months No and less specified Less than than one Over one maturity 6 months year year Total weighted value Available Stable Funding (ASF): Capital: Regulatory Capital 4,265 - - - 4,265 4,427 - - - 4,427 Other Capital Instruments 727 - - 289 1,016 710 - - 293 1,003 Retail deposits and deposits from small business customers: Stable deposits - - - - - - - - - - Less stable deposits - 2,351 597 374 3,027 - 2,178 679 357 2,928 Wholesale funding: Operational deposits - - - - - - - - - - Other wholesale funding - 22,490 7,400 6,889 14,868 - 27,603 5,270 6,435 14,196 Other liabilities: NSFR derivative liabilities - 21 - - - - 29 - - - All other liabilities not included in the above categories - 739 - - - - 815 - - - Total ASF (A) 23,176 22,554 12 RISK MANAGEMENT (continued) 31 March 2026 31 December 2025 Unweighted Values (i.e. before applying relevant factors) Unweighted Values (i.e. before applying relevant factors) No specified maturity Less than 6 months Over 6 months and less than one year Over one year Total weighted value Over 6 months No and less specified Less than than one Over one maturity 6 months year year Total weighted value Required Stable Funding (RSF): 13,914 - 131 - - - - - 907 - 17,610 - 152 - - - - - 1,174 - - - - - - - - - - - - 4,864 1,399 876 2,276 - 4,626 1,311 829 2,140 - 7,238 2,666 6,657 10,611 - 7,117 2,507 6,384 10,238 - - - 150 97 - - - 289 188 - - - - - - - - - - - 226 717 2,129 2,281 - 246 396 2,412 2,370 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4 - - 4 - 6 - - 6 3,213 497 40 1,220 1,537 3,461 460 6 784 1,076 - 11,920 - - 596 - 11,614 - - 581 Total NSFR high-quality liquid assets (HQLA) Deposits held at other financial institutions for operational purposes Performing loans and securities: Performing loans to financial institutions secured by Level 1 HQLA Performing loans to financial institutions secured by non-level 1 HQLA and unsecured performing loans to financial institutions Performing loans to non- financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and PSEs, of which: With a risk weight of less than or equal to 35% as per the CBB Capital Adequacy Ratio guidelines Performing residential mortgages, of which: With a risk weight of less than or equal to 35% under the CBB Capital Adequacy Ratio Guidelines Securities that are not in default and do not qualify as HQLA, including exchange-traded equities Other assets: Physical traded commodities, including gold Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs NSFR derivative assets NSFR derivative liabilities before deduction of variation margin posted All other assets not included in the above categories OBS items Total RSF (B) NSFR (A/B) 18,309 127% 17,773 127% 13 TRANSACTIONS AND BALANCES WITH RELATED PARTIES Related parties represent the ultimate parent, major shareholders, associates, directors and key management personnel of the Group and entities controlled, jointly controlled or significantly influenced by such parties. Pricing policies and terms of these transactions are approved by the Group's management. Major share- holder The period-end and year-end balances in respect of related parties included in the interim consolidated statement of financial position are as follows: Ultimate parent 31 March 2026 (Reviewed) Deposits from customers Borrowings Additional / perpetual tier-1 capital* Short-term self-liquidating trade and transaction-related contingent items Directors 2,874 1,115 590 - - - 1 - - 2,875 1,115 590 Major share- holder 585 - - 585 Ultimate parent 31 December 2025 (Audited) Deposits from customers Borrowings Additional / perpetual tier-1 capital* Short-term self-liquidating trade and transaction-related contingent items Directors 2,809 1,115 590 - - - 1 - - 2,810 1,115 590 862 - - 862 * During the period, the Group has paid interest on additional / perpetual tier-1 capital amounting to US$ 9 million (31 March 2025: US$ 9 million) which has been charged to the interim consolidated statement of changes in equity. The income and expenses in respect of transactions with related parties included in the interim consolidated statement of profit or loss are as follows: 31 March 31 March 2026 2025 Reviewed Commission income Interest expense 4 45 6 58 14 ESTIMATES AND JUDGEMENTS Geopolitical developments in the Middle East The geopolitical situation in the Middle East has intensified since 28 February 2026, with ongoing developments creating secondary impacts across multiple countries in the region, including the Kingdom of Bahrain. These circumstances have contributed to heightened uncertainty in the economic environment and have resulted in disruption to certain business and economic activities across the region where the Group operates. 14 ESTIMATES AND JUDGEMENTS (continued) Geopolitical developments in the Middle East (continued) The Group is closely monitoring the situation and has activated its business continuity planning and other risk management practices to manage the potential impact of the business disruption on its performance and enhanced its risk management and monitoring practices to address potential operational, credit, and liquidity risks arising from these developments. Management continues to closely monitor the situation and its potential implications for the Group's operations, financial position, and performance. Reasonableness of forward looking information and related impact on expected credit losses (ECL) The Group uses a range of macro-economic factors in ECL assessment relevant to multiple jurisdictions of operations considering its global footprint under three scenarios, upward, base and downward case. The Group reviews and updates selected economic series on regular basis and applies its judgement in determining what constitutes reasonable and forward-looking estimates. In light of the prevailing economic uncertainty, management has reassessed the macro-economic scenarios and probability weightings used in estimating ECL as at 31 March 2026, in accordance with IFRS 9 - Financial instruments (IFRS 9). The revised weightings reflect management's updated view of the increased likelihood of adverse economic outcomes in the current environment. The probability weightings assigned to each macro-economic scenario are summarised below: Scenarios Base case Upward case Downward case 31 March 2026 50% 0% 50% 31 March 2025 40% 30% 30% 31 December 2025 40% 30% 30% The Group will continue to assess the effects of the geopolitical situation on its portfolio and any impacts as and when known will be incorporated into the determination of the Group's estimates relating to significant increase in credit risk (SICR), inputs, macro-economic variables and weightages applied to scenarios in the ECL model and fair valuation of financial assets in the interim condensed consolidated financial statements for the periods ending 30 June 2026 and 30 September 2026 as well as the annual consolidated financial statements for the year ending 31 December 2026. Management remains focused on maintaining prudent risk management, capital adequacy, and liquidity buffers to support the Group's resilience in the current environment.

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