Arab Banking B S C : Q1 Investors Highlights 2026

About this update from Arab Banking Corporation B S C

‌Results Presentation for period ended 31 March 2026 https://www.bank-abc.com ‌ YTD March 2026 Results - Key Highlights Navigating crisis with resilience and continued strategy execution to deliver our vision of MENA's International Bank of the Future Strong operational resilience ensuring continued services to clients Immediate and effective Crisis Management response without disruption to customer services while prioritizing staff safety and well being Robust core revenue momentum from a diversified franchise. TOI $344m, +5% YoY Revenues growth +5% compared to US$328m last year reflecting growth in core business and origination across the franchise Net profit US$52m, reduction of 32% YoY, with prudent provisioning reflecting macro economic environment Resilient underlying growth across core markets with disciplined cost management, impacted by higher provision charges driven by prevailing macroeconomic and geopolitical environment combined with Healthy Balance Sheet T1 Ratio 15.0%, NSFR 127%, LCR 311% Capital, Funding and Liquidity metrics remain strong with healthy buffers to maintain growth momentum ‌ Successful Business continuity and Crisis management Managing through prolonged uncertainty from a position of strength OUR PEOPLE Ensure Staff safety and wellbeing OUR OPERATIONS The Bank is fully operational and continues to serve clients without disruption OUR FINANCIAL STRENGTH The Bank remains financially strong and is managing risks proactively OUR PRIORITIES OUR FOCUS Facilitate flexible & resilient staff working approaches Deliver Business continuity plan and operational resilience Maintain uninterrupted client service Mitigate financial impact on the Bank Deepen scenario & contingency planning Develop plans to reprioritise strategy execution and delivery of Transformation Management and Board continue to monitor development and are prepared to take decisions as the crisis evolves ‌ YTD Mar 2026 Awards - Continued international recognition Bank ABC Bank ABC Islamic Best Trade Finance Provider in the Middle East - Global Finance World's Best Trade Finance Awards Best Trade Finance Provider in Bahrain - Global Finance World's Best Trade Finance Awards World's Best Financial Innovation Labs Award for ABC Labs - Global Finance Innovators Awards IFN Perpetual Sukuk Deal of the Year 2025 - IFN Deals of the Year 2025 Best Corporate Bank in UK IFN Best Banks Poll 2025 Best Corporate Bank in Jordan IFN Best Banks Poll 2025 Best Digital Offering by a Bank in Jordan IFN Best Banks Poll 2025 Best Digital Offering by a Bank in Bahrain - IFN Best Banks Poll 2025 Best Investment Bank in Bahrain IFN Best Banks Poll 2025 Best Islamic Bank in Bahrain - IFN Best Banks Poll 2025 Most Innovative Bank in Bahrain IFN Best Banks Poll 2025 /3 ‌ Diversified Revenue Composition delivering 5% growth Robust underlying performance, driven by resilient core business growth TOI reached US$344m, +5% higher on a YoY basis, compared to US$328m last year TOI was well diversified across our markets and business lines with International Wholesale and Group Treasury contributing the 28%, Brasil at 36%, MENA subsidiaries at 19% and Digital units and others at 17% YTD March 2026 TOI by business YTD March 2026 TOI, US$m 17% 28% 19% 36% +5% 344 328 Intl. Wholesale Bank and Group Treasury 1 Banco ABC Brasil MENA Subsidiaries Digital Units and Others 2 YTD March 25 3 YTD March 26 International wholesale bank 20% and Group Treasury 8% Includes activities of Digital units (Arab Financial Services, ila) and Equity income. Reclassification of recoveries from written off debts of US$4m in YTD Mar 25 from income to /4 provisions (previously $332m) ‌ Disciplined Cost Management with Continued Strategic Investment Innovating while 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" Cost base includes initiatives to strengthen the Group's resilience 195 Operating Expenses and Cost to Income Ratio +9% 130 124 14 16 57 66 212 Other Cost Premises & Equipment Staff Cost Cost to income ratio at 61.6%: 57.3% when adjusted for ongoing investment in digital initiatives YTD March 25 YTD March 26 61.6% 59.4% * C/I Ratio 57.3% 54.5% * C/I Ratio (ex-Digital) * Reclassification of recoveries from written off debts of US$4m in YTD Mar 25 from income to provisions /5 (previously C/I ratio 58.7% and C/I ratio ex-digital at 53.2%) ‌ Higher provisions reflecting macro economic and one-off factors. Steady NPL ratios Business growth being prudently managed, with healthy level of risk appetite and risk frameworks ECL charge and cost of risk, US$m, bps +25 46 21 * ECL charge US$46m, +$25m YoY reflecting the increased macroeconomic and geopolitical risks and one-off factors which benefitted Q1 2025 Cost of Risk at 84bps, compared to 42bps last year. NPL Ratio and Coverage ratio remain at healthy levels YTD March 25 YTD March 26 Cost of risk 1 42 bps * 84 bps 87% 95% Coverage ratio 3.3% 3.3% NPL Ratio 1. Credit Loss expense / Gross Loans * Reclassification of recoveries from written off debts of US$4m in YTD Mar 25 from income to /6 provisions (previously ECL at US$25m and Cost of Risk at 50bps) ‌ Well Diversified Balance Sheet Stable Asset levels reflecting financial resilience amid evolving macroeconomic environment conditions Loans increased 2% compared with 2025 year-end, reflecting strong underlying growth in core business. Total Assets at US$47.2bn, compared to US$49.9bn at the 2025 year-end, -6%, reflecting short-term asset and liability management Assets by Instrument, US$bn 49.9 47.2 20.7 21.2 Other 15.4 6.6 4.0 Liquid Funds (1) Marketable Securities Loans 18.7 6.7 3.8 Dec 25 Mar 26 60% of Total Assets maturing within 1-year Net loans to customer deposits ratio at 79% Assets by Maturity, US$bn 47.2 21.2 16% 24% 29% 31% 6% 28% 49% 17% < 1m 1m - 1Y 1Y - 5Y >5Y (2) 1) Liquid funds includes placements with banks & other financial institutions and securities bought under repurchase agreements. 2) Undated included in >5 years. Assets Loans /7 ‌ Healthy Balance Sheet Ratios, Well Above Regulatory Minimum Balance sheet strength was maintained, with robust capital ratio levels Strong T1 Ratio at 15.0%, supporting RWA growth Tier 1 and CET1 Ratios, % 16.0% 15.0% 10.5% CET 1 Ratio 12.7% comprises the majority of Tier 1 Ratio CET1 ratio Dec 25 Mar 26 13.7% 12.7% Total CAR of 15.9% as of March 2026 RWA stood at US$31.9bn as of March 26, increasing by 4% over YE 2025 Total CAR, % 17.0% 15.9% Dec 25 Mar 26 12.5% Healthy liquid position with LCR of 311% 1 and NSFR of 127% NSFR, % 127% 127% 100% Dec 25 Mar 26 /8 1) LCR calculated net of trapped liquidity. ‌ In Summary Bank ABC's resilience in navigating the heightened macro and geopolitical crisis was key to continued accelerated growth in core business reflected in the resilient YTD March results Strong operational resilience, and effective crisis management ensured continuous services to the clients while prioritizing staff safety and well being Robust core revenue momentum from a diversified franchise, TOI at US$344mn, +5%, reflecting diversified revenue composition and improvements in core business and origination across the core markets Higher provisions reflecting macro economic and one-off factors , +US$25m compared to last year with Cost of Risk at 84bps. NPL Ratio and Coverage ratio remain at healthy levels Net profit at US$52m, reduced by 32% YoY. Resilient underlying growth across core markets with disciplined cost management, impacted by higher provision charges Well diversified Balance Sheet with Strong capital and liquidity position, Tier 1 Ratio at 15.0%, LCR at 311% and NSFR at 127% positioning the Bank well for future growth and sustained resilience /9 ‌ Appendix: Normalized Financials US$ millions 2019 2020 2021 2022 2023 2024 2025 YTD Mar 25 YTD Mar 26 YoY % Net Interest Income 564 516 592 786 935 902 970 231 241 4% Non-Interest Income* 311 233 277 315 344 437 440 97 103 6% Total Operating Income (TOI)* 875 749 869 1,101 1,279 1,339 1,410 328 344 5% Total Operating Expenses -524 -486 -569 -690 -764 -773 -814 -195 -212 9% Net Operating Profit 351 263 300 411 515 566 596 133 132 -1% Provisions -82 -329 -106 -119 -145 -143 -164 -21 -46 119% Profit before Taxes & M.I. 269 -66 194 292 370 423 432 112 86 -23% Taxes* -33 -9 -66 -83 -74 -72 -105 -21 -17 -19% M.I. -42 -14 -28 -55 -61 -66 -70 -15 -17 13% Net Profit 194 -89 100 154 235 285 257 76 52 -32% US$ millions 2019 2020 2021 2022 2023 2024 2025 Mar 25 Mar 26 YE 25 vs. Mar 26 % Liquid Funds** 5,323 5,378 6,355 6,498 8,888 6,995 6,677 5,764 6,628 -1% Marketable Securities 6,343 6,867 9,292 8,670 12,438 16,955 18,650 17,067 15,405 -17% Loans & Advances 16,452 15,656 16,716 18,190 19,096 18,649 20,661 19,353 21,157 2% Other 1,950 2,506 2,538 3,281 3,470 3,666 3,924 3,546 3,975 1% Total Assets 30,068 30,407 34,901 36,639 43,892 46,265 49,912 45,730 47,165 -6% Customer Deposits 17,065 17,667 21,459 21,831 23,847 22,675 26,874 23,630 26,639 -1% Bank Deposits 4,905 4,747 6,399 6,642 11,068 14,714 13,139 13,086 11,045 -16% Borrowing 2,080 1,795 1,211 1,297 1,303 1,381 1,426 1,504 1,434 1% Other 1,529 2,054 1,597 2,348 2,870 2,852 3,239 2,769 2,931 -10% Total Liabilities 25,579 26,263 30,666 32,118 39,088 41,622 44,678 40,989 42,049 -6% Shareholders' Equity 4,031 3,767 3,872 3,705 3,910 3,817 4,128 3,876 3,956 -4% Non-Controlling Interest 458 377 363 426 504 436 516 475 570 10% Additional / Perpetual Tier-1 Capital - - - 390 390 390 590 390 590 0% Total Equity 4,489 4,144 4,235 4,521 4,804 4,643 5,234 4,741 5,116 -2% Total Liabilities & Equity 30,068 30,407 34,901 36,639 43,892 46,265 49,912 45,730 47,165 -6% Cost to Income, % 60% 65% 65% 63% 60% 58% 58% 59% 62% 2.3% *** Tier 1 Ratio, % 16.9% 16.6% 15.9% 15.7% 15.0% 15.5% 16.0% 15.0% 15.0% -1.0% CET 1, % 16.6% 16.2% 15.5% 14.0% 13.5% 13.6% 13.7% 13.2% 12.7% -1.0% RoAE,% 4.9% - 2.6% 3.7% 5.8% 7.0% 6.0% 7.4% 4.3% -3.1% *** Key Metrics Balance Sheet Profit or Loss * TOI and taxes includes normalization of BRL currency over hedge. Headline TOI 2019 $865m, 2020 $646m, 2021 $854m, 2022 $1,101m. Note that underlying adjustment for BAB Cayman branch hedging is no longer material due to tax changes in Brazil and hence not considered for FY 23 onwards and YOY comparison above ** Liquid funds includes placements with banks & other financial institutions and securities bought under repurchase agreements. ***Change Year on Year /10 ‌ Contact Us For more information, contact us on [email protected] Bank ABC Head Office P.O. Box 5698, Manama Kingdom of Bahrain https://www.bank-abc.com ‌ Disclaimer IMPORTANT : The following applies to this document, the oral presentation of the information in this document by Arab Banking Corporation B.S.C. ("Bank ABC") or any person acting on behalf of Bank ABC, and any question-and-answer session that follows the oral presentation (collectively, the "Information"). In accessing the Information, you agree to be bound by the following terms and conditions. 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