Arab Banking Corporation B S CBAHRAIN: ABC

Regulatory Capital Disclosures - 30 June 2025

Aug 12, 2025 at 3:33 PM UTC · Issued by Arab Banking Corporation B S C

Regulatory Capital Disclosures 30 June 2025 Basel III Common Disclosure Template PIR as on 30 June 2025 Reference

Common Equity Tier 1 capital: instruments and reserves

1 Directly issued qualifying common share capital plus related stock surplus

3,104

2 Retained earnings

1,361

Accumulated other comprehensive income (and other reserves)

(458)

c1+c2+c3+c4

+c5

Not applicable -
Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)
274 d
Common Equity Tier 1 capital before regulatory adjustments 4,281 Common Equity Tier 1 capital: regulatory adjustments
Prudential valuation adjustments -
Goodwill (net of related tax liability) 25
Other intangibles other than mortgage-servicing rights (net of related tax liability)
Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)
149 e
16 f
Cash-flow hedge reserve -
Shortfall of provisions to expected losses -
Securitisation gain on sale (as set out in paragraph 562 of Basel II framework) -
Not applicable -
Defined-benefit pension fund net assets 34 c6
Investments in own shares -
Reciprocal cross-holdings in common equity -Investments in the capital of banking, financial and insurance entities that are
outside the scope of regulatory consolidation, net of eligible short positions,
where the bank does not own more than 10% of the issued share capital -
(amount above 10% threshold)
Significant investments in the common stock of banking, financial and
insurance entities that are outside the scope of regulatory consolidation, net of -eligible short positions (amount above 10% threshold)
Mortgage servicing rights (amount above 10% threshold) -
-
Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
Amount exceeding the 15% threshold -
of which: significant investments in the common stock of financials -
of which: mortgage servicing rights -
of which: deferred tax assets arising from temporary differences -
CBB specific regulatory adjustments -
-
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions
Total regulatory adjustments to Common equity Tier 1 224
Common Equity Tier 1 capital (CET1) 4,057

Basel III Common Disclosure Template PIR as on 30 June 2025 Reference

Additional Tier 1 capital: instruments

Directly issued qualifying Additional Tier 1 instruments plus related stock surplus
390
of which: classified as equity under applicable accounting standards 390
of which: classified as liabilities under applicable accounting standards -
Directly issued capital instruments subject to phase out from Additional Tier 1 -
Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in Group AT1)
159 g
of which: instruments issued by subsidiaries subject to phase out -
Additional Tier 1 capital before regulatory adjustments 549
Additional Tier 1 capital: regulatory adjustments
Investments in own Additional Tier 1 instruments -
Reciprocal cross-holdings in Additional Tier 1 instruments -Investments in the capital of banking, financial and insurance entities that are
outside the scope of regulatory consolidation, net of eligible short positions, -where the bank does not own more than 10% of the issued common share
capital of the entity (amount above 10% threshold)
Significant investments in the capital of banking, financial and insurance
entities that are outside the scope of regulatory consolidation (net of eligible -short positions)
CBB specific regulatory adjustments -
-
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions
Total regulatory adjustments to Additional Tier 1 capital -
Additional Tier 1 capital (AT1) 549
Tier 1 capital (T1 = CET1 + AT1) 4,606

Tier 2 capital: instruments and provisions

46 Directly issued qualifying Tier 2 instruments plus related stock surplus	-
47 Directly issued capital instruments subject to phase out from Tier 2	-
Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 48 34) issued by subsidiaries and held by third parties (amount allowed in Group	100	i
Tier 2)
49 of which: instruments issued by subsidiaries subject to phase out	-
50 Provisions	241	h
51 Tier 2 capital before regulatory adjustments	341

Tier 2 capital: regulatory adjustments

Investments in own Tier 2 instruments -
Reciprocal cross-holdings in Tier 2 instruments -Investments in the capital of banking, financial and insurance entities that are
outside the scope of regulatory consolidation, net of eligible short positions, -where the bank does not own more than 10% of the issued common share
capital of the entity (amount above the 10% threshold)
Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2019 and 1 Jan 2023)
1. Current cap on CET1 instruments subject to phase out arrangements N/A
2. Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities)
  N/A
3. Current cap on AT1 instruments subject to phase out arrangements N/A
4. Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities)
  N/A
5. Current cap on T2 instruments subject to phase out arrangements N/A
6. Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)
N/A
Tier 2 capital: regulatory adjustments (continued)
Significant investments in the capital banking, financial and insurance entities
that are outside the scope of regulatory consolidation (net of eligible short -positions)
National specific regulatory adjustments -
Total regulatory adjustments to Tier 2 capital -
Tier 2 capital (T2) 341
Total capital (TC = T1 + T2) 4,947
Total risk weighted assets 31,127

61 Common Equity Tier 1 (as a percentage of risk weighted assets)	13.0%
62 Tier 1 (as a percentage of risk weighted assets)	14.8%
63 Total capital (as a percentage of risk weighted assets)	15.9%
Institution specific buffer requirement (minimum CET1 requirement plus 64 capital conservation buffer plus countercyclical buffer requirements plus G-	2.5%
SIB buffer requirement, expressed as a percentage of risk weighted assets)
65 of which: capital conservation buffer requirement	2.5%
66 of which: bank specific countercyclical buffer requirement	N/A
67 of which: G-SIB buffer requirement	N/A

Capital ratios and buffers

Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets)
National minima including CBB (where different from Basel III)
4.0%
CBB Common Equity Tier 1 minimum ratio 9%
CBB Tier 1 minimum ratio 10.5%
CBB total capital minimum ratio 12.5%
Amounts below the thresholds for deduction (before risk weighting)
Non-significant investments in the capital of other financials 22
Significant investments in the common stock of financials 33
Mortgage servicing rights (net of related tax liability) -
Deferred tax assets arising from temporary differences (net of related tax liability)

Applicable caps on the inclusion of provisions in Tier 2

190

76	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap)	241 h*
77	Cap on inclusion of provisions in Tier 2 under standardised approach	340
78	N/A
79	N/A

*	As adjusted based on CBB circular OG/226/2020

	Balance sheet as in published financial statements	Consolidated PIR data
Liquid funds	2,724	-
Cash and balances at central banks	-	2,792
Placements with banks and similar financial institutions	2,202	3,390
Reverse repurchase agreements and other similar secured lending	1,255	-
Financial assets at fair value through P&L	1,075	1,075
Non-trading investments	16,074	-
Investments at Amortized Cost	-	8,520
Investments at FVOCI	-	7,565
Loans and advances	20,824	21,035
Investment properties	-	-
Interest receivable	-	631
Other assets	3,582	2,744
Investments in associates and joint ventures	-	33
Goodwill and intangible assets	-	174
Property, plant and equipment	233	233
TOTAL ASSETS	47,969	48,192
Deposits from banks	4,369	7,501
Deposits from customers	24,353	21,221
Certificate of deposits issued	273	273
Repurchase agreements and other similar secured borrowing	9,480	9,480
Interest payable	-	1,070
Taxation	72	-
Other liabilities	3,037	2,021
Borrowings	1,517	1,246
Subordinated liabilities	-	-
Additional Tier 1 Instrument	390	661
TOTAL LIABILITIES	43,491	43,473
Paid-in share capital	3,110	3,110
Treasury shares	(6)	(6)
Reserves	869	869
Non - controlling interest	505	505
Expected credit losses	-	241
TOTAL SHAREHOLDERS' EQUITY	4,478	4,719

	Balance sheet
	as in
	published
	financial	Consolidated
ASSETS	statements	PIR data Reference
Liquid funds	2,724	-
Cash and balances at central banks	-	2,792
Placements with banks and similar financial institutions	2,202	3,390
Reverse repurchase agreements and other similar secured lending	1,255	-
Financial assets at fair value through P&L	1,075	1,075
Loans and advances	20,824	21,035
Non-trading investments	16,074	16,085
Of which investment NOT exceeding regulatory threshold	-	16,085
Interest receivable	-	631
Other assets	3,582	2,744

Of which deferred tax assets arising from carryforwards of unused tax losses, unused tax credits and all other

Of which deferred tax assets arising from temporary differences

- 16 f

- 190

Investments in associates and joint ventures - 33

Of which Significant investment exceeding regulatory threshold - -

Of which Significant investment NOT exceeding regulatory threshold

- 33

Goodwill and intangible assets - 174

Of which goodwill - 25

Of which other intangibles (excluding MSRs) phased in at 100%	-	149 e
Of which MSRs	-	-
Property, plant and equipment	233	233
TOTAL ASSETS	47,969	48,192

PD 2 : Reconciliation of regulatory capital (continued) ii) Step 2: Expansion of the Balance Sheet under Regulatory scope of Consolidation (continued)

Deposits from banks	4,369	7,501
Deposits from customers	24,353	21,221
Certificate of deposits issued	273	273
Repurchase agreements and other similar secured borrowing	9,480	9,480
Interest payable	-	1,070
Taxation	72	-
Other liabilities	3,037	2,021
Borrowings	1,517	1,246
Subordinated liabilities	-	-
Of which amount eligible for TII	-	-
Of which amount Ineligible Additional Tier 1 Instrument	- 390	- 661
Of which amount eligible for AT1	-	101	g
Of which amount eligible for TII	-	24	i
Of which amount Ineligible	-	536
TOTAL LIABILITIES	43,491	43,473
Paid-in share capital	3,110	3,110
Treasury shares	(6)	(6)
Of which form part of CET1
Ordinary Share Capital	3,110	3,110	a
Treasury shares	(6)	(6)	a
Reserves	869	869
Of which form part of CET1
Retained earnings/(losses) brought forward	1,361	1,361	b
Net profit for the current year	152	152	c1
Legal reserve	598	598	c2
General (disclosed) reserves	100	100	c3
Fx translation adjustment	(1,339)	(1,339)	c4
Cumulative changes in fair value	31	31	c5
Pension fund reserve	(34)	(34)	c6
Non - controlling interest	505	505
Of which amount eligible for CETI	-	274	d
Of which amount eligible for ATI	-	58	g
Of which amount eligible for TII	-	76	i
Of which amount ineligible	-	97
Expected credit losses	-	241
Of which amount eligible for TII (Maximum 1.25% of Credit RWA)	-	241	h
Of which amount Ineligible	-	-
TOTAL SHAREHOLDERS' EQUITY	4,478	4,719

US$ million

LIABILITIES & SHAREHOLDERS' EQUITY

Balance sheet as in published financial statements Consolidated PIR data Reference

Disclosure template for main features of regulatory capital instruments
1	Issuer	Arab Banking Corporation	Arab Banking Corporation	Banco ABC Brasil	Banco ABC Brasil
2	Unique identifier	ABC	XS2426192261	LFSC19000 (series with various suffixes)	LFSC24000 (series with various suffixes)
3	Governing law(s) of the instrument	Laws of Bahrain	English and Bahrain Law	Laws of the Federative Republic of Brazil	Laws of the Federative Republic of Brazil

Regulatory treatment

4	Transitional CBB rules	Common Equity Tier 1	N/A	N/A	N/A
5	Post-transitional CBB rules	Common Equity Tier 1	Additional Tier 1	Additional Tier 1	Additional Tier 1
6	Eligible at solo/group/group & solo	Group & Solo	Group& Solo	Group	Group
7	Instrument type (types to be specified by each jurisdiction)	Common equity shares	Perpetual NC 6 Additional Tier 1 Capital Securities	Perpetual NC 5, Sub-ordinated to all except Shareholders' Equity	Perpetual NC 5, Sub-ordinated to all except Shareholders' Equity
8	Amount recognised in regulatory capital (Currency in mil, as of most recent reporting date)	US$ 3,110	US$ 390	BRL 539 million (of which US$ 39 million equivalent eligible for AT1)	BRL 1,067 million (of which US$ 62 million equivalent eligible for AT1)
9	Par value of instrument	1	1	300,000	300,00
10	Accounting classification	Shareholders equity	Shareholders equity	Liability- Amortized cost	Liability- Amortized cost
11	Original date of issuance	Various	28th March 2022	Various	Various
12	Perpetual or dated	Perpetual	Perpetual	Perpetual	Perpetual
13	Original maturity date	No maturity	No maturity	No maturity	No maturity
14	Issuer call subject to prior supervisory approval	Yes	Yes	Yes	Yes
15	Optional call date, contingent call dates and redemption amount	N/A	28th March 2028 and every interest payment date thereafter	Yes	Yes
16	Subsequent call dates, if applicable	N/A	Every interest payment date after the first call date	N/A	N/A

Coupons / dividends

17	Fixed or floating dividend/coupon	Floating (Dividend as decided by the shareholders)	Fixed	Floating Floating
18	Coupon rate and any related index	N/A	N/A	1,25 times the current Selic Rate of 14,90% p.a.	1,09 times the current Selic Rate of 14,90% p.a.
19	Existence of a dividend stopper	N/A	Yes	No	No

Disclosure template for main features of regulatory capital instruments
20	Fully discretionary, partially discretionary or mandatory	Fully discretionary	Partly discretionary (Insufficiency of profits)	Partly discretionary (Insufficiency of profits)	Partly discretionary (Insufficiency of profits)
21	Existence of step up or other incentive to redeem	No	No	No	No
22	Non-cumulative or cumulative	N/A	Non-cumulative	Non-cumulative	Non-cumulative
23	Convertible or non-convertible	N/A	Convertible	Non convertible	Non convertible
24	If convertible, conversion trigger (s)	N/A	Non-Viability Event	N/A	N/A
25	If convertible, fully or partially	N/A	Fully	N/A	N/A
26	If convertible, conversion rate	N/A	Conversion Price as defined	N/A	N/A
27	If convertible, mandatory or optional conversion	N/A	Mandatory	N/A	N/A
28	If convertible, specify instrument type convertible into	N/A	Ordinary Shares	N/A	N/A
29	If convertible, specify issuer of instrument it converts into	N/A	ABC	N/A	N/A
30	Write-down feature	No	No	Yes	Yes
31	If write-down, write-down trigger(s)	N/A	N/A	CET 1 at 5.125% or below*	CET 1 at 5.125% or below*
32	If write-down, full or partial	N/A	N/A	Fully discretionary	Fully discretionary
33	If write-down, permanent or temporary	N/A	N/A	Permanent	Permanent
34	If temporary write-down, description of write-up mechanism	N/A	N/A	N/A	N/A
35	Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument)	Subordinated to all depositors and creditors (including subordinated debt) of the Bank	Subordinated to all senior obligations of the bank and in priority to the Junior obligations (such as equity shares).	AT1 capital bills	AT1 capital bills
36	Non-compliant transitioned features	No	No	No	No
37	If yes, specify non-compliant features	N/A	N/A	N/A	N/A

*AT 1 instrument issued by the subsidiary has a trigger of 5.125% of CET 1 ratio (of the subsidiary) for permanent extinction in compliance with the Brazilian local regulations and Basel Standards. The equivalent trigger under CBB rules stands at 7%.