Condensed Consolidated Interim Financial Information – 31 March 2025

BAHRAIN ISLAMIC BANK B.S.C.

CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION 31 MARCH 2025

For the three months ended 31 March 2025

CONTENTS

Independent auditors' report on review of condensed consolidated interim financial information

Condensed consolidated interim financial information Condensed consolidated statement of financial position Condensed consolidated statement of income

Condensed consolidated statement of comprehensive income

Condensed consolidated statement of income and attribution related to quasi-equity Condensed consolidated statement of cash flows

Condensed consolidated statement of changes in owners' equity Notes to the condensed consolidated interim financial information

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KPMG Fakhro Audit

12* Floor, Fakhro Tower,

P.O. Box 710, Manama, Kingdom of Bahrain

Telephone +973 17224807

Telefax +973 17227443

Website: https://www.kpmg.com/bh CR No. 6220 - 2

1

To the Board of Directors of Bahrain Islamic Bank B.S.C. Kingdom of Bahrain

We have reviewed the accompanying 31 March 2025 condensed consolidated interim financial information of Bahrain Islamic Bank B.S.C. (the "Bank") and its subsidiaries (together the "Group"), which comprises:

• the condensed consolidated statement of financial position as at 31 March 2025;

• the condensed consolidated statement of income for the three-month period ended 31 March 2025;

• the condensed consolidated statement of total comprehensive income for the three-month period ended 31 March 2025;

• the condensed consolidated statement of income and attribution related to quasi-equity for the three-month period ended 31 March 2025;

• the condensed consolidated statement of cash flows for the three-month period ended' 31 March 2025;

• the condensed consolidated statement of changes in owners' equity for the three-month period ended 31 March 2025; and

• notes to the condensed consolidated interim financial information.

The Board of Directors of the Bank is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with FAS 41, "Interim Financial Reporting". Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.

Sco pe o f Review

We conducted our review in accordance with the 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 Auditing standards for Islamic Financial Institutions 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.

Co nc lusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying 31 March 2025 condensed consolidated interim financial information is not prepared, in all material respects, in accordance with FAS 41, "Interim Financial Reporting".

6 May 2025

@ 2025 KPiBIG Fakhro, a Bahrain pannership registered with the Ministry of Industry and Commerce (MOIC), Kingdom ef Bahrain and a member fna of the KPMG global organization of independent member finns afiiliaied with KPMG International Limited a private English company limited by guaranlee All rghtr reserved

Bahrain Islamic Bank B.S.C.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 March 2025

The condensed consolidated interim financial information was approved by the Board of Directors on 6 May 2025 and signed on its behalf by:

Zaid Khalid Abdulrahman Chairman

Usman Ahmed Vice Chairman

Fatema AlAlawi Chief Executive Officer

Bahrain Islamic Bank B.S.C.

CONDENSED CONSOLIDATED STATEMENT OF INCOME

For the three months ended 31 March 2025

Three months ended

31 March

Zaid Khalid Abdulrahman

Chairman

Usman Ahmed Vice Chairman

" flatema AlAlawi

Chief Executive Officer

Bahrain Islamic Bank B.S.C.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the three months ended 31 March 2025

7hree months ended

31 March

Bahrain Islamic Bank B.S.C. CONDENSED CONSOLIDATED STATEMENT OF INCOME AND ATTRIBUTION RELATED TO QUASI-EQUITY

For the three months ended 31 March 2025

Three months ended

31 March 2025 2024

BD'000 BD'000

(reviewed) (reviewed)

Bahrain Islamic Bank B.S.C.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the three months ended 31 March 2025

7/iree monfhs ended

3f March

Bahrain Islamic Bank B.S.C.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY

For the three months ended 31 March 2025

Equity affr/6uta6/e fo Bank's shareholders

The accompanying notes 1 to 23 form an integral part of this condensed consolidated interim financial information. 7

Bahrain Islamic Bank B.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

For the three months ended 31 March 2025

1. REPORTING ENTITY

   Bahrain Islamic Bank B.S.C. (the "Bank") was incorporated in the Kingdom of Bahrain in 1979 by Amiri Decree No.2 of 1979 and registered with the Ministry of Industry and Commerce ("MOIC") under Commercial Registration (CR) number 9900, to carry out banking and other financial trading activities in accordance with the teachings of Islam (Shari'a). The Bank operates under an Islamic retail banking license issued by the Central Bank of Bahrain ("CBB"). The Bank's Shari'a Supervisory Board is entrusted to ensure the Bank's adherence to Shari'a rules and principles in its transactions and activities. The Bank is listed on the Bahrain Bourse.

   National Bank of Bahrain (NBB) owns 78.81% (31 December 2024: 78.81%) of shares. Hence NBB is considered as Parent of the Bank

   for financial reporting purposes.

   The Bank's registered office is at Building 722, Road 1708, Block 317, Manama, Kingdom of Bahrain. The Bank has eight branches (2024: eight), all operating in the Kingdom of Bahrain.

   The condensed consolidated interim financial information includes the results of the Bank and its wholly owned subsidiaries (together the "Group"). The Bank holds 100% of the share capital of Abaad Real Estate Company W.L.L., a real estate company incoprorated in Kingdom of Bahrain.

2. BASIS OF PREPARATION AND PRESENTATION

   This condensed consolidated interim financial information has been prepared in accordance with Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation of Islamic Financial Institutions ("AAOIFI") and applicable rules and regulations issued by the Central Bank of Bahrain ("CBB").

   The condensed consolidated interim financial information of the Group has been presented in condensed form in accordance with the guidance provided by Financial Accounting Standard 41 - Interim Financial Reporting. In line with the requirements of AAOIFI and the CBB rule book, for matters not covered under AAOIFI standards the group uses guidance from the relevant standards issued by the International Accounting Standards Board ("IFRS Accounting Standards").

   The condensed consolidated interim financial information of the Group does not contain all information and disclosures required for the annual consolidated financial statements and should be read in conjunction with the Group's audited annual consolidated financial statements for the year ended 31 December 2024. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December 2024.

3. SIGNIFIGANT AGGOUNTING POLICIES

   Adoption of new accounting standards and amendments to standards effective l'or annual periods beginning on or tIter 1 Country 2025.

   The new accounting standards and amendments to the standards issued and effective as at 1 January 2025 do not have a significant impact on the Group's accounting policies. The condensed consolidated interim financial information has been prepared using the same accounting policies and methods of computation applied in the preparation of the Group*s audited consolidated financial statements for the year ended 31 December 2024.

4. FINANCIAL RISK MANAGEMENT

   The Group's financial risk management objectives and policies are consistent with those disclosed in the audited consolidated financial statements for the year ended 31 December 2024.

5. JUDGMENT AND ESTIMATES

   Preparation of the condensed consolidated interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The areas of significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited consolidated financial statements as at and for the year ended 31 December 2024.

6. COMPARATIVE INFORMATION

   The condensed consolidated interim financial information is reviewed, not audited. The comparatives for the condensed consolidated statement of financial position have been extracted from the Group's audited consolidated financial statements for the year ended 31 December 2024, and comparatives for the condensed consolidated statements of income, condensed consolidated statements of comprehensive income, condensed consolidated statement of income and attribution related to quasi-equity, changes in owner's equity, and cash flows have been extracted from the Group's reviewed condensed consolidated interim financial information for the three months ended 31 March 2024

   The comparative figures have been regrouped in order to conform with the presentation for current period. Such regrouping did not affect previously reported profit for the period or total equity.

7. SEASONALITY

   The Bank does not have significant income of seasonal nature.

   Bahrain Islamic Bank B.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

   For the three months ended 31 March 2025

8. FINANCING CONTRACTS

   	31 March 2025	31 December 2024
   	8D'000 (Reviewed)	BD'000 (Audited)
   Trade-based
   Murabaha	721,385	720,546
   Participatory-based
   Musharaka	98,151	97,430
   Lease-based
   Ijarah Muntahia Bittamleek (net of accumulated depreciation)	318,871	316,982
   Gross financing contracts	1,138,407	1,134,958
   Deferred profits	(87,858)	(87,721)
   Expected credit losses allowance (8.1)	(48,799)	(46,574)
   Net financing contracts	1,001,750	1,000,663

   1. The movement on expected credit losses allowances is as follows:

      2025	Stage 1 BD'000	Stage 2 BD'000	Stage 3 BD'000	Total BD'000
      Gross financing contracts	980,478	68,270	89,659	1,138,407
      Less: Deferred profits	61,239	8,269	18,350	87,858
      Less: Expected credit losses allowance

      5,438	4,624	36,512	46,574
      213	(447)	234
      (145)	154	2,587	2,596

      At 1 January 2025

      Net movement between stages Net charge for the period

      Write-off			(371)	(371)
      At 31 March 2025	5,506	4,331	38,962	48,799
      Net financing contracts	913,733	55,670	32,347	1,001,750
      2024	Stage 1	Stage 2	Stage 3	Total
      	BD'000	BD'000	BD'000	BD'000
      Gross financing contracts	979,470	68,723	86,765	1.134,958
      Less: Deferred profits	65,703	8,044	13,974	87,721
      Less: Expected credit losses allowance At 1 January 2024	4,064	8,612	27,214	39,890
      Net movement between stages	1,037	(3,447)	2,410
      Net charge for the year	337	(541)	7,503	7,299
      Write-off			(615)	(615)
      At 31 December 2024	5,438	4,624	36,512	46,574
      Net financing contracts	908,329	56,055	36,279	1,000,663

      Bahrain Islamic Bank B.S.C.

      NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

      For the three months ended 31 March 2025

9. INVESTMENT SECURITIES

i} Oe6f fype instrumenfr - ef amortised cosf*

Quoted Sukuk

31 MarcA 31 December

2025 2024

BDD00 BD'000

{Reviewed} (Audited)

Fair value gains / (losses) on hedged items attributable to profit rate risk hedged"

Net balance at the end of the period

Unquoted Sukuk

453 (2,135)

234,041 251,759

Gross balance at the beginning of the period Disposals and redemptions

12,507

12,516

Foreign currency translation changes (g)

Gross balance at the end of the period

12,504

12,507

Expected credit losses allowance

Net balance at the end of the period

ii) fquity type instruments

Quoted shares - at fair value through other comprehensive income

Balance at beginning of the period Acquisitions

Fair value movement - net Balance at the end of the period

Unquoted shares - at fair value through other comprehensive income

(12,504) (12,507)

9gg

{10)

986

Balance at beginning of the period Acquisitions

19,931

20,050

Fair value movement - net

IB ) (119)

Balance at the end of the period

19,879

19,931

Unquoted managed Funcfs 436 436

Total net investment securities

255,342

272,126

"As of 31 March 2025, debt type instruments includes Sukuk of BD 114,711 thousand (31 December 2024: BD 117,667 thousand) pledged against financing from financial institutions of BD 100,703 thousand (31 December 2024: BD 103,338 thousand) (note 12).

""As of 31 March 2025, Sukuk of BD 129,411 thousand (31 December 2024: BD 110,595) carried at amortised cost were hedged through profit rate swaps and the resultant fair value gain on the hedged items re/aferf fo profit rate risk of BD 453 thousand (31 December 2024: BD 2,135 thousand loss) were adi•sted fo Ihe canying value.

Investment in real estate comprises of plots of land in the Kingdom of Bahrain and the United Arab Emirates.

During the period ended 31 March 2025, an income of BHD 9,523 thousand was recognized in the condensed consolidated statement of income on account of sale of land with a carrying value of BD 4,941 thousand.

Bahrain Islamic Bank B.S.C.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

For the three months ended 31 March 2025

1. OTHER ASSETS

   	31 March	31 December
   	2025	2024
   	BD'000 (Reviewed)	BD'000 (Audited)
   Repossessed assets*	1,240
   Receivables"*	15,097	271
   Staff advances	1,512	1,471
   Prepaid expenses	185	473
   Risk management instruments (11.1)	256	2,135
   Right of use asset	429	464
   Other	1,131 1,844

   19,850 6,658

   *Repossessed assets comprise lands located in Kingdom of Bahrain and are net of impairment allowance of BD 24 thousand (2024. nil). ""Receivables includes a receivable balance from the parent entity related to the proceeds from the sale of land (refer to nofe 10).

   1. Risk management instruments

      The risk management instruments are valued based on observable inputs. The fair values of risk management financial instruments held by the Group as at 31 March 2025 are provided below:

      31 March 2025

      Assets Liabilities

      8D'000 BD'000

      31 December 2024 Assets Liabilities

      BD'000 BD'000

      453		2,135
      256			616
      256	453	2,135	616

      Profit rate swaps (Fair value hedges)

      Foreign exchange contracts (Waad) (Other risk management instruments)

      The notional amount of risk management financial instruments held by the Group as at 31 March 2025 are provided below:

      31 March 2025

      Assets Liabilities

      BD'000 BD'000

      31 December 2024 Assets Liabilities

      BD'000 BD'000

      129,411	110,595
      122,867	122,611	46,625	46,009
      252,278	122,611	157,220	46,009

      Profit rate swaps (Fair value hedges)

      Foreign exchange contracts (Waad) (Other risk management instruments)

      The net hedge ineffectiveness gain / losses recognized in the condensed consolidated income statement are as follows:

      31 March

      2025

      
      
      

      31 March

      2024

      BD'000

      Gains / (losses) on the hedged items attributable to risk hedged	453	(1,744)
      (Losses) / gains on the hedging instruments	(453)	1,744
      Net hedge ineffectiveness (loss)/gain

      Bahrain Islamic Bank B.S.C.

      NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

      For the three months ended 31 March 2025

2. FINANCING FROM FINANCIAL INSTITUTIONS

   This represents term murabaha facilities of BD 181,987 thousand (2024: BD 175,197 thousand) secured by pledge over Sukuk of BD 114,711 thousand (2024: BD 117,667 thousand) (note 9). The average profit rate on financing is 4.83% (2024: 4.99%).

3. OTHER LIABILITIES

   	31 March	31 December
   	3025	2024
   	BD'000	BD'000
   	(Reviewed)	(Audited)
   Managers' cheques	2,718	2,135
   Payable to vendors	7,090	2,710
   Accrued expenses	8,021	7,271
   Zakah and charity fund"	1,522	1,169
   Net Ijarah liability	414	444
   Other**	28,580 24,492

   48,345 38,221

   * During the period ended 31 March 2025, BD 484 thousand {2024: BD 607 thousand) was transferred into the Zakah and charity fund and BD 131 thousand (2024 BD 107 thousand) was utilised from the Zakah and charity fund. There were no movements in the good faith and Qard fund during the quarter.

   "" Other includes expected credit losses allowance for commitments and contingent liabilities of BD 955 thousand (31 December 2024: BD 969 thousand).

4. QUASI-EQUITY

   	31 March 2025	31 December 2024
   	BD'000	BD'000
   	(Reviewed)	(Audited)
   Placements from financial institutions - Wakala	39,769	64,892
   Placements from non-financial institutions and individuals - Wakala	603	1,113

   Placements from non-financial institutions and individuals - Mudharaba

   501,331 350,381

   541,703 416,386

   The funds received from Wakala pool and mudharba pool together with quasi-equity have been commingled and jointly invested with the

   Group in the following asset classes and reported under quasi-equity:

   	31 March	31 December
   	2025	2024
   	BD'000	BD'000
   	(Reviewed)	(Audited)
   Cash and balances with banks and Central Bank	44,408	44,156
   Placements with financial institutions	19,778	5,505
   Financing contracts, net	387,082	293,007

   Investment securities, net Profit equalisation reserve

   Opening reserve balance Movement during the period Ending reserve balance

   90,435 73,718

   541,703 416,386

   31 March 31 December

   2025 2024

   BD'000 BD'000

   (Reviewed) (Audited)

   342 113

   61 229

   403 342

   Bahrain Islamic Bank B.S.C.

   NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

   For the three months ended 31 March 2025

5. INCOME FROM INVESTMENT IN SUKUK

   	31 March 2025 BD'000	31 March 2024 BD'000
   	ffieviewed)	(Reviewed)
   Profit on investment in Sukuk	3,528	3,834
   Gain on sale of Sukuk	4	3

   3,532 3,837

6. IMPAIRMENT ALLOWANCE, NET

   	31 March 2025 BD'000 (Reviewed}	31 March 2024 BD'000 (Reviewed)
   Financing contracts (note 8.1)	2,596	1,767
   Investments in Sukuk	70	(31)
   Investments at fair value through other comprehensive income	10
   Placements with financial institutions	2	1
   Other assets	24
   Commitments	(14)	(400)

   2,688 1,337

7. COMMITMENTS AND CONTINGENT LIABILITIES

   These include commitments to enter into financing contracts which are designed to meet the requirements of the Group's customers. Letters of credit and guarantees commit the Group to make payments on behalf of customers.

   The Group has the following credit related commitments and contingent liabilities on behalf of customers:

   	31 March	31 December
   	2025	2024
   	BD'000	BD'000
   	(Reviewed)	(Audited)
   Letters of credit and acceptances	2,149	2,550
   Guarantees	27,946	31,589
   Credit Cards	45,577	44,266
   Altamweel Almaren	15,660	26,594
   Commitments to finance	8,304	8,687
   	99,636	113,686

   Expected credit losses allowance of BD 955 thousand (31 December 2024: BD 969 thousand) has been provided on account of the credit risk on these for commitments and contingent liabilities.

8. LITIGATIONS AND CLAIMS

   In the normal course of business, legal cases are filed by the Bank against its customers and against the Bank by its customers, employees or investors. The Group's legal department engages with in-house legal counsel and external legal counsel depending on the nature of the cases. A periodic assessment is carried out to determine the likely outcome of these legal cases and is reported to the senior management and Board of directors. The Group as part of the periodic assessment maintains adequate provisions. No further disclosures regarding contingent liabilities arising from any such claims are being made by the Bank as the directors believe that such disclosures may be prejudicial to the Group's legal position.

   Bahrain Islamic Bank B.S.C.

   NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

   For the three months ended 31 March 2025

9. RELATED PARTY TRANSACTIONS

Related parties comprise of major shareholders, directors of the Bank, senior management, close members of their families, entities owned or controlled by them and companies affiliated by virtue of common ownership or directors with that of the Bank. The transactions with these parties were made on commercial terms.

The significant balances and transactions with related parties at 31 March 2025 were as follows:

Bahrain Islamic Bank B.S.C.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

For the three months ended 31 March 2025

1. RELATED PARTY TRANSACTIONS (continued)

   31 December 2024 (audited)

   	Shareholders	Associates and joint ventures	Directors and related entities	Senior management	Total
   	BD'000	BD'000	BD'000	BD'000	BD'000
   Assets
   Cash and balances with banks and Central Bank	2,036				2,036
   Placem ents with financial institutions
   Financing contracts			471	907	1,378
   Investment in associates		11,441			11,441
   Other assets	3,158			389	3,547
   Liabilities and Quasi-equity
   Placem ents from financial institutions	20,078				20,078
   Financing from financial institutions	61,660				61,660
   Placements from non-financial institutions and individuals			640	865	1,505
   Customers' current accounts		653	1,798	57	2,508
   Other liabilities	6,599		431		7,030
   Quasi-equity			287	1,240	1,527
   Off Balance sheet
   Profit rate swap - notional amount	80,131				80,131
   31 March 2024 (reviewed)
   		Associates	Directors
   		and joint	and related	Senior
   	Shareholders	ventures	entities	management	Total
   	BD'000	BD'000	BD'000	BD'000	BD'000
   Income
   Income from financing contracts			5		10
   Income from investment in Sukuk	470				470
   Placements with financial institutions	287				287
   Share of results of associates, net Other income	(1,006)				(1,006)
   Net income attributable to quasi-equity				(22)	(22)
   Expense on placements from financial institutions	(277)				(277)
   Expense on placements from non-financial institutions
   and individuals			(41)	(7)	(48)
   Expense on financing from financial institutions	(1,346)				(1,346)
   Expenses
   Staff costs				(826)	(826)
   Other expenses			(150)		(150)

   Compensation of the key management personnel is as follows:

   Three months ended

   31 March

   	2025 BD'000	2024 BD'000
   Short term employee benefits	577	755
   Other long term benefits	67	71

   644 826

   Bahrain Islamic Bank B.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

   For the three months ended 31 March 2025

2. FINANCIAL INSTRUMENTS

   Fair value hierarchy

   Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable and willing parties in an arm's length transaction.

   Fair values of quoted securities/sukuk are derived from quoted market prices in active markets, if available. For unquoted securities/sukuk, fair value is estimated using appropriate valuation techniques. Such techniques may include using recent arm's length market transactions; reference to the current fair value of another instrument that is substantially the same; discounted cash flow analysis or other valuation models.

   In case of financing assets, the average profit rate of the portfolio is in line with current market rates for similar facilities and hence after consideration of adjustment for prepayment risk and impairment charges it is expected that the current value would not be materially different from fair value of these assets. Quoted shares of BD 986 thousand (31 December 2024: nil) are treated as Level 1 investments. Unquoted shares and unquoted managed funds of BD 20,315 thousand (31 December 2024: BD 20,367 thousand) are treated as Level 3 investments. During the period fair value movement of BD 10 thousand (31 December 2024: BD nil) was charged to income statement and BD 52 thousand fair value loss was reported in the fair value reserve (31 December 2024: BD 69 thousand fair value gain). The estimated fair value of the Bank's other financial instruments are not significantly different from their carrying values due to their short-term nature.

   The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;

   Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and

   Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

   The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy:

   31 March 2025 Investment securities	Leve/ Y	Lev'e/ 2	Leve/ 3	Total BD'000
   Ouoted shares	986			986
   Unquoted shares			19,879	19,879
   Unquoted managed funds			436	436
   Other liabilities		453		453
   Total	986	453	20,315	21,754
   31 December 2024	Level 1 BD'OO0	Level 2 BD'000	Level 3 BD'000	Total BD'000
   Investment securities
   Unquoted shares			19,931	19,931
   Unquoted managed funds			436	436
   Other assets	-	2,135		2,135
   Total		2,135	20,367	22,502

   Transfers between Level 1, Level 2 and Level 3

   During the three-months period ended 31 March 2025 there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into or out of Level 3 fair value measurement.

   Bahrain Islamic Bank B.S.C.

   NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

   For the three months ended 31 March 2025

3. SEGMENTAL INFORMATION

   For management purposes, the Group is organised into three major business segments;

   Corporate	Principally handling equity of corporate investment accountholders', corporate current accounts, and providing Islamic financing facilities to corporate customers.
   Retail	Principally handling equity of individual retail customers' investment accountholders' retail current accounts, and providing Islamic financing facilities to individua customers.
   Investment	Principally handling equity of banks' and financial institutions' investment accountholders, providing money market, trading and treasury services as well as the management of the Group's investment activities. Investment activities involve handling investments in local and international markets and investment in properties.

   These segments are the basis on which the Group reports its primary segment information. Transactions between segments are conducted at estimated market rates on an arm's length basis. Transfer charges are based on a pool rate which approximates the cost of funds.

   Segment information is disclosed as follows:

   For I/ie three months ended 31 March 2025 (Reviewed)

   	Corporate	Refa7/	investment	Total
   Total net income	908	5,930	13,385	20,223
   Total expenses	(1,536)	(5,244)	(753)	(7,533)
   Allowances for expected credit losses, net	(1,701)	(882)	(105)	(2,688)
   Profit / (Loss) for the period	(2,329}	(196) _ 12,527		10,002
   Other information

   31 March 2025 (Reviewed)

   Corporate

   Retail Investment

   Total

   Segment assets

   Segment liabilities, quasi-equity and owners' equity

   361,753 708,751

   476,628 739,043

   534,821

   389,654

   1,605,325

   1,605,325

   For the three months ended 31 March 2024 (Reviewed)

   	Corporate BD'000	Retail BD'000	Investment BD'000	Total BD'000
   Total net income	1,673	6,357	1,862	9,892
   Total expenses	(1,548)	(5,287)	(689)	(7,524)
   Allowances for expected credit losses, net	(678)	(688)	29	(1,337)
   Profit / (Loss) for the period	(553)	382	1,202	1,031
   Other information

   31 December 2024 (Audited)

   Corporate Retail Investment

   BD'000 BD'000 BD'000

   Total BD'000

   Segment assets

   Segment liabilities, quasi-equity and owners' equity

   368,588 703,172

   476,170 705,509

   470,174

   360,255

   1,541,934

   1,541,934

   
   
   

   The Group operates solely in the Kingdom of Bahrain and, as such, no geographical segment information is presented.

   Bahrain Islamic Bank B.S.C.

   NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

   For the three months ended 31 March 2025

4. EARNINGS PER SHARE

   Basic earnings per share is calculated by dividing the profit for the period attributable to the shareholder of the Bank (adjusted for Profit distribution on AT 1 Capital) by the weighted average number of shares outstanding during the period net of treasury shares. There are no dilutive potential shares that are convertible into shares.

   Three months ended

   31 March

   2025

   /Rev/ewed)

   2024

   (Reviewed)

   Profit for the period attributable to the shareholders of the bank bank for basic and diluted earnings per share computation

   Weighted average number of shares outstanding during the period, net of treasury shares (thousand)

   10,002

   1,055.090

   1,031

   1,054,585

   Basic and diluted earnings per share (fils) 9.48 0.98

   AT1 Profits are paid annually and hence not adjusted every quarter. Accordingly, the quarterly EPS may not be indicative of the annual measure.

5. NET STABLE FUNDING RATIO

The objective of the NSFR is to promote the resilience of banks' liquidity risk profiles and to incentivise a more resilient banking sector over a longer time horizon. The NSFR will require banks to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities. A sustainable funding structure is intended to reduce the likelihood that disruptions to a bank's regular sources of funding will erode its liquidity position in a way that would increase the risk of its failure and potentially lead to broader systemic stress. The NSFR limits overreliance on short-term wholesale funding, encourages better assessment of funding risk across all on-balance sheet and off-balance sheet items and promotes funding stability.

The NSFR is calculated in accordance with the Liquidity Risk Management Module guidelines issued by CBB and its effective from 31 December 2019. The minimum NSFR ratio as per CBB is 100%.

Bahrain Islamic Bank B.S.C.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

For the three months ended 31 March 2025

23 NET STABLE FUNDING RATIO (continued)

The NSFR (as a percentage) as at 31 March 2025 is calculated as follows:

Item

Available Stable Fundinn fASF): Capital:

Unweiohted Values fbefore aDDlvin£l factors)

No Specified Less than 6 More than 6 Over one year maturity months months and less

than one year

BD'000

Total Weighted

Value

Regulatory Capital

Other Capital Instruments

Retail Deposits and deposits from small business customers:

159,998

11,347

171,345

Stable Deposits Less stable deposits

Wholesale funding: Operational deposits Other wholesale funding Other liabilities:

NSFR Shari'a-compliant hedging contract liabilities

All other liabilities not included in the above

453

269,877

375,793

496,507

4,474

55,199

114,247

25 260,657

11,634 399,526

72,253 250,483

categories Total ASF

Reeuired Stable Fundino IRSF)•

- 43,465

160,451 18 642 173,920 95,259 082 011

Total NSFR high-quality liquid assets (HOLA) Deposits held at other financial institutions for operational purposes

Performing financing and sukuk/ securities:

Performing financing to financial institutions secured by Level 1 HQLA

Performing financing to financial institutions secured by non-level 1 HQLA and unsecured performing financing to financial institutions

Performing financing to non- financial corporate clients, financing to retail and small business customers, and financing to sovereigns, central banks and PSEs, of which:

- With a risk weight of less than or equal to 35% as per the Capital Adequacy Ratio guidelines

Performing residential mortgages, of which:

208,729

79,698

- 47,571

- With a risk weight of less than or equal to 35% under the CBB Capital Adequacy Ratio Guidelines

Securities/ sukuk 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 Shari'a-compliant hedging contracts and contributions to

default funds of CCPs

NSFR Shari'a-compliant hedging assets NSFR Shari'a-compliant hedging contract liabilities before deduction of variation margin

posted

All other assets not included in the above categories

109,390

3,906

113,296

OBS items

99,637 4,982

Total RSF NSFR (%)

417,756 328,676 72 8

795,602

951,631

113.7%

Bahrain Islamic Bank B.S.C.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

For the three months ended 31 March 2025

Total NSFR high-quality liquid assets (HQLA)

Deposits held at other financial institutions for operational purposes

Performing financing and sukuk/ securities:

Performing financing to financial institutions secured by Level 1 HQLA

Performing financing to financial institutions secured by non-level 1 HQLA and unsecured performing financing to financial institutions

Performing financing to non- financial corporate clients, financing to retail and small business customers, and financing to sovereigns, central banks and PSEs, of which:

• With a risk weight of less than or equal to 35% as per the 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/ sukuk 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 Shari'a-compliant hedging contracts and contributions to

default funds of CCPs

NSFR Shari'a-compliant hedging assets NSFR Shari'a-compliant hedging contract liabilities before deduction of variation margin

posted

All other assets not included in the above categories

2,135

101,986

2,036

2,135

104,021

OBS items Total RSF

NSFR (%)

113,685 5,684

446,174 282,395 148,282 788,866 939,803

112.9%