Arab Banking B S C : Regulatory Capital Disclosures - 31 December 2025

About this update from Arab Banking Corporation B S C

Regulatory Capital Disclosures 31 December 2025 Common Equity Tier 1 capital: instruments and reserves 1 Directly issued qualifying common share capital plus related stock surplus 3,104 a 2 Retained earnings 1,354 b 3 Accumulated other comprehensive income (and other reserves) (293) c1+c2+c3+c4 +c5 Not applicable - Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1) 286 d Common Equity Tier 1 capital before regulatory adjustments 4,451 Common Equity Tier 1 capital: regulatory adjustments Prudential valuation adjustments - Goodwill (net of related tax liability) 26 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) 152 e 25 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 37 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 1 240 Common Equity Tier 1 capital (CET1) 4,211 Additional Tier 1 capital: instruments Directly issued qualifying Additional Tier 1 instruments plus related stock surplus 590 of which: classified as equity under applicable accounting standards 590 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) 134 g of which: instruments issued by subsidiaries subject to phase out - Additional Tier 1 capital before regulatory adjustments 724 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) 724 Tier 1 capital (T1 = CET1 + AT1) 4,935 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 97 i Tier 2) 49 of which: instruments issued by subsidiaries subject to phase out - 50 Provisions 196 h 51 Tier 2 capital before regulatory adjustments 293 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) Current cap on CET1 instruments subject to phase out arrangements N/A Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities) N/A Current cap on AT1 instruments subject to phase out arrangements N/A Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) N/A Current cap on T2 instruments subject to phase out arrangements N/A 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) 293 Total capital (TC = T1 + T2) 5,228 Total risk weighted assets 30,785 61 Common Equity Tier 1 (as a percentage of risk weighted assets) 13.7% 62 Tier 1 (as a percentage of risk weighted assets) 16.0% 63 Total capital (as a percentage of risk weighted assets) 17.0% 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) 4.7% 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 24 Significant investments in the common stock of financials 34 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 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap) 212 196 h Cap on inclusion of provisions in Tier 2 under standardised approach 333 N/A N/A Balance sheet as in published financial statements Consolidated PIR data Liquid funds 3,127 - Cash and balances at central banks - 3,275 Placements with banks and similar financial institutions 2,240 3,402 Reverse repurchase agreements and other similar secured lending 1,310 - Financial assets at fair value through P&L 1,205 1,205 Non-trading investments 17,445 - Investments at Amortized Cost - 9,647 Investments at FVOCI - 7,809 Loans and advances 20,661 20,829 Investment properties - - Interest receivable - 718 Other assets 3,687 2,758 Investments in associates and joint ventures - 34 Goodwill and intangible assets - 178 Property, plant and equipment 237 238 TOTAL ASSETS 49,912 50,093 Deposits from banks 4,065 7,284 Deposits from customers 26,491 23,272 Certificate of deposits issued 383 384 Repurchase agreements and other similar secured borrowing 9,074 9,074 Interest payable - 1,180 Taxation - - Other liabilities 3,239 2,043 Borrowings 1,426 1,244 Subordinated liabilities - - Additional Tier 1 Instrument 590 772 TOTAL LIABILITIES 45,268 45,253 Paid-in share capital 3,110 3,110 Treasury shares (6) (6) Reserves 1,024 1,024 Non - controlling interest 516 516 Expected credit losses - 196 TOTAL SHAREHOLDERS' EQUITY 4,644 4,840 Balance sheet as in published financial Consolidated ASSETS statements PIR data Reference Liquid funds 3,127 - Cash and balances at central banks - 3,275 Placements with banks and similar financial institutions 2,240 3,402 Reverse repurchase agreements and other similar secured lending 1,310 - Financial assets at fair value through P&L 1,205 1,205 Loans and advances 20,661 20,829 Non-trading investments 17,445 17,456 Of which investment NOT exceeding regulatory threshold - 17,456 Interest receivable - 718 Other assets 3,687 2,758 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 - 25 f - 212 Investments in associates and joint ventures - 34 Of which Significant investment exceeding regulatory threshold - - Of which Significant investment NOT exceeding regulatory threshold - 34 Goodwill and intangible assets - 178 Of which goodwill - 26 Of which other intangibles (excluding MSRs) phased in at 100% - 152 e Of which MSRs - - Property, plant and equipment 237 238 TOTAL ASSETS 49,912 50,093 PD 2 : Reconciliation of regulatory capital (continued) ii) Step 2: Expansion of the Balance Sheet under Regulatory scope of Consolidation (continued) US$ million LIABILITIES & SHAREHOLDERS' EQUITY Balance sheet as in published financial statements Consolidated PIR data Reference Deposits from banks 4,065 7,284 Deposits from customers 26,491 23,272 Certificate of deposits issued 383 384 Repurchase agreements and other similar secured borrowing 9,074 9,074 Interest payable - 1,180 Taxation - - Other liabilities 3,239 2,043 Borrowings 1,426 1,244 Subordinated liabilities - - Of which amount eligible for TII - - Of which amount Ineligible Additional Tier 1 Instrument - 590 - 772 Of which amount eligible for AT1 - 74 g Of which amount eligible for TII - 17 i Of which amount Ineligible - 681 TOTAL LIABILITIES 45,268 45,253 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 1,024 1,024 Of which form part of CET1 Retained earnings/(losses) brought forward 1,354 1,354 b Net profit for the current year 257 257 c1 Legal reserve 598 598 c2 General (disclosed) reserves 100 100 c3 Fx translation adjustment (1,326) (1,327) c4 Cumulative changes in fair value 79 79 c5 Pension fund reserve (38) (37) c6 Non - controlling interest 516 516 Of which amount eligible for CETI - 286 d Of which amount eligible for ATI - 60 g Of which amount eligible for TII - 80 i Of which amount ineligible - 90 Expected credit losses - 196 Of which amount eligible for TII (Maximum 1.25% of Credit RWA) - 196 h Of which amount Ineligible - - TOTAL SHAREHOLDERS' EQUITY 4,644 4,840 Disclosure template for main features of regulatory capital instruments 1 Issuer Arab Banking Corporation Arab Banking Corporation Arab Banking Corporation Banco ABC Brasil 2 Unique identifier ABC XS2426192261 XS3196129988 LFSC24000 (series with various suffixes) 3 Governing law(s) of the instrument Laws of Bahrain English and Bahrain Law English and Bahrain Law 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& Solo Group 7 Instrument type (types to be specified by each jurisdiction) Common equity shares Perpetual NC 6 Additional Tier 1 Capital Securities Perpetual NC 5.5 Additional Tier 1 Capital Securities 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 US$ 200 BRL 1,078 million (of which US$ 74 million equivalent eligible for AT1) 9 Par value of instrument 1 1 1 300,000 10 Accounting classification Shareholders equity Shareholders equity Shareholders equity Liability- Amortized cost 11 Original date of issuance Various 28th March 2022 9th October 2025 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 9th April 2031 and every interest payment date thereafter Yes 16 Subsequent call dates, if applicable N/A Every interest payment date after the first call date Every interest payment date after the first call date N/A Coupons / dividends 17 Fixed or floating dividend/coupon Floating (Dividend as decided by the shareholders) Fixed Fixed Floating 18 Coupon rate and any related index N/A N/A 8% Fixed 1,09 times the current Selic Rate of 14,90% p.a. 19 Existence of a dividend stopper N/A Yes Yes 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-covertible 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 Point of Non-Viability CET 1 at 5.125% or below* 32 If write-down, full or partial N/A N/A Full or partial as determined 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). Subordinated to all senior obligations of the bank and in priority to the Junior obligations (such as equity shares). 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%.

View stock analysis, news, and events for Arab Banking Corporation B S C