Annual Report 2024

Commercial Bank International

AT A

GLANCE

Commercial Bank International (CBI) is a leading UAE bank dedicated to empowering businesses and individuals through innovative, personalised, and growth-focused banking solutions. Established in 1991 and headquartered in Dubai, CBI offers a diverse range of services, including corporate, retail, and Islamic banking solutions. Leveraging its innovative capabilities, CBI provides bespoke banking services to help clients achieve their ambitions. CBI is listed on the Abu Dhabi Securities Exchange (ADX) and is regulated by the Central Bank of the UAE (CBUAE) and the Securities and Commodities Authority (SCA).

In recognition of its client-centric culture and dedication to driving innovation in the banking sector, CBI has received numerous awards, including CEO of the Year (Middle East Banking) and Most Innovative Bank of the Year at the Middle East Banking AI & Analytics Awards. The Bank has also been honoured for outstanding innovation in technology and financial services, winning multiple Stevie Awards and the Gold Stevie Award

for Innovation in Technology Development (Financial Services).

The Bank is majority-owned by UAE shareholders, and its Board of Directors benefits from strong representation of UAE nationals.

Annual Report 2024

Total Assets

AED 21 billion

Commercial Bank International

FINANCIAL HIGHLIGHTS

2024 saw CBI achieve strong financial performance, driven by consistent profit growth and improved operational efficiency. These results highlight the Bank's dedication to creating sustainable value for its stakeholders.

Annual Report 2024

Commercial Bank International

CHAIRMAN

MESSAGE

Saif Ali Al Shehhi

Chairman

Whilestayingtruetoourcorevalues ofcustomerserviceandoperational excellence,CBIhasmobilisedquickly tocapitaliseonanewgrowthjourney duringayearmarkedbyanextraordinary numberofnewpartnerships,MoU signingsandinvestmentsinserviceofthe UAEgovernment'svision.

Growth through innovation and partnership

2024 has proved to be milestone in CBI's ongoing development and marked the culmination of an intense, five-year process to determine the Bank's future direction and value proposition. This transformative year delivered an impressive performance, underscoring the success of our strategic initiatives.

In 2024, the global economy exhibited resilience amid various geopolitical and financial challenges. This stability was underpinned by robust performances in major economies, particularly the United States, which benefited from deregulatory policies and

tax reductions. However, Europe faced economic headwinds, including potential US tariffs and internal challenges, leading to a more cautious outlook.

The UAE economy likewise demonstrated remarkable resilience and growth in 2024. The country's real GDP reached AED 880 billion in the first half of the year This growth was driven by a 4.4% expansion in the non-oil sector, reflecting the UAE's successful economic diversification efforts.

A primary driver of the refresh of CBI's strategy is our ambition to be a key enabler, and supporter, of the UAE government's vision to build a strong digital economy, and to position the nation as the region's leading innovation hub, in line with its broader economic diversification goals.

The timing is right. Against a backdrop of increasing competition and contraction in traditional markets, there is a pressing need to identify new sources of revenue. The virtual digital economy offers CBI extensive opportunities in a whole new world of finance, in virtual assets and AI.

Our strong performance underscores our ongoing transformation: total assets grew by an impressive 10%, customer deposits increased by 22%, significantly enhancing liquidity, and our capital adequacy ratio improved to 17.7%, reflecting a stronger equity position. These results highlight CBI's robust financial resilience and capacity to support future growth.

Annual Report 2024

While we celebrate these successes, the Board has decided that, in line with our strategy of reinvesting in growth and innovation, the Bank will not be paying dividends this year. This decision reflects our commitment to building long-term value for shareholders and ensuring the Bank's continued ability to capitalise on emerging opportunities.

Building partnerships to drive growth

While staying true to our core values of customer service and operational excellence, CBI has mobilised quickly to capitalise on a new growth journey during a year marked by an extraordinary number of new partnerships, MoU signings and investments in service of the UAE government's vision.

These partnerships will drive our future growth and support in transforming our operating model and establishing CBI as a niche player with the agility and resources to enter new markets as a first mover with minimal risk.

Through new partnerships with governments and freezones, including RakDAO, RakEz, ADGM and DIFC Fintech Hive, we can more effectively support fintechs, AI companies, and virtual asset companies.

Notably, the leadership in Ras Al Khaimah (RAK) continues to play a pioneering role in promoting gaming, fintechs, and emerging industries, positioning the emirate as an alternative destination for innovation and new economic opportunities. This emphasis aligns closely with our objectives and underscores the importance of collaboration with such progressive regional initiatives.

Winning tech and AI awards

The Bank continued to garner non-financial awards, a powerful endorsement of the effectiveness of our refreshed strategy.

Of note were the two Gold Prizes in the Middle East Stevie's Awards and three AI related awards. These awards acknowledge the Bank's success in entering new, non-traditional banking sectors and are welcome recognition of our efforts.

Commercial Bank International

CHAIRMAN MESSAGE

Continued

2024 awards

Annual Report 2024

While much of our focus in the past year has been on identifying new growth opportunities, another highlight was the Board's approval of plans to put

in place a full

Environmental,

Social and

Governance (ESG)

function and

strategy.

As Chairman, it is pleasing to highlight CBI's growing maturity in embracing non- traditional banking and our commitment to change and diversification.

While much of our focus in the past year has been on identifying new growth opportunities, another highlight was the Board's approval of plans to put in place a full Environmental, Social and Governance (ESG) function and strategy.

With a team mobilised in Q4 2024, the appointment of a new Head of Sustainability, and some significant investments already made, CBI has signalled to its stakeholders a clear intention to become a sustainability-driven institution.

Acknowledgements

On behalf of the Board of Directors, I offer my gratitude for the guidance and strategic direction and wise counsel of our nation's leader, His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, and the leaders of the Emirates; His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; His Highness Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah; and His Highness Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah.

I also want to pay tribute to the hard work and exceptional commitment of CBI's executive management, and the whole workforce, in continuing to deliver excellent customer service and value for our shareholders.

Commercial Bank International

CEO

MESSAGE

Sustained transformation and strategic advancement

Ayearofstronggrowthandprofitability sawCBIexpandintonewmarkets,embrace innovationandshednon-coreassets

tocountertheshiftinthebankingand economiclandscape.

To align CBI more closely with the UAE government's ambitions as the region's main innovation hub, and as a positive response to growing competition and some contraction in traditional banking, we reset our strategy and took further strides to transform the Bank in readiness for these new challenges.

It is a measure of the quality of our leadership and its ability to respond with speed and agility to these scenarios that CBI set a firm direction, with specific goals to future-proof the Bank and establish it as a niche specialist spearheading a move into exciting growth markets.

The refreshed strategy calls for a mix of partnerships and innovative technology to identify fresh revenue streams, using CBI's banking license to support fintechs and non-financial institutions in offering banking services, and to launch liability only, tailored propositions for innovation start-ups and companies, in partnership with governments, freezones, fintech companies and other strategic partners.

A year of growth

It is pleasing to report that 2024 was a year of healthy top and bottom line growth, resulting in a year-on- year jump in profit before tax, and a substantial uptick in customer deposits, which had a positive effect on CBI's capital and liquidity position.

CBI's profit before tax increased by 30% to AED

222.7 million (2023: AED 171 million). Gross loans and advances and lending to banks amounted to AED 15.5 billion (2023: AED 14.1 billion). Total assets of AED 21 billion (2023: AED 19 billion) were achieved by a strong capital adequacy ratio of 17.7% (2023: 15.2%).

Growing our loan book was one of the year's key areas of focus. By reviewing our existing portfolio and as a result of the continued buoyancy of the real estate market, we were able to resolve some existing legacy issues and realise gains.

Forging partnerships

One of the drivers motivating our partnerships is the ability to harness the specialist knowledge of new tech businesses in exchange for our extensive banking expertise and services.

Start-ups such as gaming, AI, virtual assets, 3D and holographic companies - in short, the target companies the UAE wants to attract to its tech and innovation hub - are generally underserved by the banking community.

However, by building offers for innovators that are not exclusively lending-based and working with partners willing to take some degree of risk if borrowing is a requirement, CBI can offer the complete banking service package.

In alignment with this, I am pleased to announce that the Central Bank of the UAE (CBUAE) has granted a No Objection Certificate (NOC) for the establishment of the CBI Innovation Lab, which is set to be based in DIFC. This facility will further support our efforts to harness innovation and foster collaboration with fintechs and AI enterprises.

CBI is proud to be a founding bank of the Haifin consortium, a blockchain-enabled platform designed to enhance efficiencies and security in trade finance.

We have also entered into a strategic partnership with e& enterprise and World Wide Generation (WWG) to support the UAE's goal of mobilising AED 1 trillion in sustainable finance by 2030. WWG, a sustainability assurance fintech company, is dedicated to delivering global solutions aligned with the UN Sustainable Development Goals (SDGs) and the Paris Agreement.

As part of our collaboration, CBI is co-creating a National Sustainable Finance Utility to support the UAE's sustainability objectives. Leveraging WWG's G17Eco Platform, we aim to enhance sustainability reporting and scale sustainable finance commitments. The agreement also focuses on driving innovation

Ali Sultan Rakkad Al Amri

Chief Executive Officer

Itispleasingtoreportthat2024was ayearofhealthytopandbottomline growth,resultinginayear-on-yearjump inprofitbeforetax,andasubstantial uptickincustomerdeposits,whichhad apositiveeffectonCBI'scapitaland liquidityposition.

Annual Report 2024

in digital sustainable financing products and policies to channel resources towards achieving the SDGs.

Meanwhile, an MoU with UK Financial Conduct Authority (FCA) registered company Zumo, an award winning digital- assets-as-a-service platform, puts CBI firmly on the path to becoming one of the world's first banks to provide carbon footprint insights with carbon offsetting for digital assets.

The agreement will enable the tracking of digital asset sustainability and support the nation's innovation hub aspirations. It is a major step by CBI to boost its presence in the innovation space, while devising cutting edge digital solutions for our clients.

As digital assets become further embedded into the financial ecosystem, customers and institutions now have the necessary tools and data to ensure their sustainability goals can be tracked and met.

In another UAE first for CBI, our strategic partnership with areeba, a global payment infrastructure provider, will bring secure, efficient payment infrastructure to local fintechs and further support the UAE's vision for a digitally enabled economy by accelerating the growth of the nation's digital payment ecosystem.

We are the first UAE bank to offer areeba's card and payment solutions to the country's fintechs to give them secure card management capabilities.

CBI's tech investments in 2024 included a venture investment in Boomitra, an Earthshot Prize winner and Forbes 2024 Most Influential Companies winner, which uses AI and remote sensing technology to help farmers and ranchers increase their soil carbon and yields and generate additional income through carbon credits. The investment underscored CBI's commitment to sustainability, focusing on impactful technology driven initiatives that benefit local communities.

Commercial Bank International

CEO MESSAGE

Continued

Annual Report 2024

WBG's net

operating income in 2024 reached

AED 429.8

million,

with profits of

AED 82.3

million,

an increase

of 27%.

RBG deposits

remained steady at

AED 3.2

billion.

CBI also invested in zypl.ai, a fintech startup pioneering the application of generative AI in lending. zypl.ai's flagship software

• zypl.score - enables financial institutions to optimise credit decision models across retail and SME portfolios through the generation of synthetic data.

Exceptional financial and operational performance

CBI's Wholesale Banking Group (WBG) and Treasury & Markets operations was, once again, the Bank's largest contributor to revenues, and enjoyed a solid year in 2024.

Among the year's highlights was our success in managing the cost of risk, and resolving legacy and non-performing loans, which served to put the Bank into positive credit territory and spurred top and bottom-line growth. The year was marked by a focus on growing our loan book.

WBG's net operating income in 2024 reached AED 429.8 million (2023: AED

316.4 million), with profits of AED 82.3 million (2023: AED 65 million), an increase of 27%.

Net loans and advances to customers (including Islamic financing) totalled AED 12.6 billion (2023: AED 11.5 billion) supported by our persistent focus on asset quality and leveraging new opportunities.

Other significant developments include our ongoing efforts to cultivate relationships with major players in the UAE's dynamic real estate market, further consolidating CBI's presence and strengthening our position in this key sector.

In one of the Bank's most significant capex projects of the year, our Treasury department launched a new FX aggregator software to enhance the efficiency and user experience of foreign exchange transactions. This innovative solution enables clients to book FX transactions directly on our platform in real time, offering a seamless and more efficient experience. The implementation of this technology reflects our commitment to leveraging innovation to improve client satisfaction and streamline operations.

Our Retail Banking Group (RBG) made notable progress in expanding its premium client base, resulting in a significant increase in affluent clients using our services. Despite a challenging environment, RBG prioritised strengthening client relationships and refining its offerings to meet their evolving needs. The relaunch of the CBI First

card and the continued success of RBG's World Elite Exclusive (WEE) credit card for affluent clients highlighted the Group's commitment to enhancing its product offerings for premium customers. RBG deposits remained steady at AED 3.2 billion (2023: AED 3.2 billion).

Customer service with a human touch

CBI has always taken the view that, while technology is an important driver of efficiency, and we will continue to invest in it, there is still no substitute for personal interaction and engagement with major corporate decision-makers.

CBIhasalwaystakentheviewthat, whiletechnologyisanimportant driverofefficiency,andwewill continuetoinvestinit,thereis stillnosubstituteforpersonal interactionandengagementwith majorcorporatedecision-makers.

A combination of the two, we believe, is the way forward and supports our strategic repositioning to move beyond traditional loan and deposit business to offer low-risk, premium services, with customer service at our core.

Therefore, CBI will always be a relationship driven bank, and our ongoing transformation, which embraces technology where it can enhance efficiency and strengthen our products and services, fully serves this objective.

Inspiring our talent

CBI continued to transform its HR function, focusing on leadership development and accelerating Emiratisation as the 2026 deadline approaches, marking it as the year's stand out achievement.

By year-end, our Emiratisation ratio reached 32%, positioning us firmly on track to achieve Emiratisation targets of 45% across the workforce.

A successful outreach programme put us face-to-face with thousands of receptive Emiratis interested

in pursuing long-term careers in the banking and financial services sector, giving us a strong brand presence and positive word-of-mouth feedback.

Acknowledgements

The year's efforts on conservative provisioning, eliminating non-performing loans and leveraging our balance sheet more efficiently leaves us well- positioned to start 2025 with headroom for growth.

My executive management team joins me in offering the Bank's appreciation to the Central Bank of the UAE, to thank our partners there for working so collaboratively with us and for their contribution to such a positive relationship. The Chairman and Board of Directors also merit our unreserved thanks for their wise counsel and guidance.

I want to acknowledge our colleagues and partners in Ras al-Khaimah for the valuable insights they have shared with us in helping CBI to tailor banking products and services that address the needs and aspirations of the tech companies, innovators and entrepreneurs they are striving to attract to the Emirate.

Finally, I want to pay tribute to the dedication of the whole CBI team and their commitment to transforming CBI into the bank that it has become today for our customers, and as a place to work.

With the motivation of our customers and stakeholders encouraging us to perform even better, we are together redefining CBI less as a small bank, and more as a partnership-driven innovator that punches well above its weight.

Commercial Bank International

BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT

Board of Directors (As of 31 December 2024)

Annual Report 2024

Executive Management

(As of 31 December 2024)

Ali Sultan Rakkad Al Amri

Chief Executive Officer

Rajesh Arora

Chief Financial Officer

Randa Kreidieh

Chief Risk Officer

Evren Altiok

Chief Operating Officer

Hashem Mohammad Ali Abu-Hanak

Chief Credit Officer

Giovanni Everduin

Chief Strategy and Innovation Officer

Kumar Mahapatra

Executive Vice President, Wholesale Banking Group

Hassanain Ali

Executive Vice President, Retail Banking Group

Tawfiq Adnan Zuwayyed

Head of Legal

Hala Rawhi Al Safadi

Vice President, Corporate Secretariat and

Investor Relations

David Abraham Pije

Head of Compliance

Ziad Abdelghani

Head of Internal Audit