CBI Financial Statement September 2025

Commercial Bank International P.J.S.C

Review report and condensed consolidated interim financial information

For the nine month period ended 30 September 2025

Independent auditor's report on review of condensed consolidated interim financial information

1

Note

As of 30

September 2025

AED'000

(unaudited)

As of 31

December 2024

AED'000

(audited)

Assets

Cash and balances with the central bank

866,031

1,573,434

Derivative financial instruments

1,936

10,324

Deposits and balances due from banks

1,448,882

930,362

Loans, advances and Islamic financing

10

12,782,162

13,582,911

Investment in associates

9,610

9,610

Receivables and other assets

1,715,985

1,294,037

Property inventory

83,533

213,761

Investment securities measured at fair value

308,gg3

307,788

Investment securities measured at amortised cost

3,404,358

2,824,561

Investment properties

7,022

7,410

Intangible assets

47,462

34,255

Property and equipment

95,73S

106,204

Total assets

20,771,519

20,894,657

Liabilities and equity

Liabilities

Derivative financial instruments

10,375

2,155

Deposits and balances due to banks

842,687

1,567,398

Customer accounts and other deposits

13

15,773,750

15,430,147

Payables and other liabilities

1,005,625

845,049

Total liabilities

17,632,437

17,844,749

Equity

Share capital

14

1,737,383

1,737,383

Additional Tier 1 instruments

15

4S9,12S

459,125

Reserves

16

293,429

289,172

Retained earnings

529,100

443,495

Equity attributable to owners of the Bank

3,019,037

2,929,175

Non-controlling interests

120,045

120,733

Total equity

3,139,082

3,049,908

Total liabilities and equity

2Q,771,519

20,894,657

Note

Three month period ended Nine month period ended

30 Sep

2025

30 Sep

2024

30 Sep

2025

30 Sep

2024

AED '000

AED '000

AED '000

AED '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

215,872

250,698

647,781

738,618

23,045

31,245

90,342

70,957

238,917

281,943

738,123

809,575

(126,520)

(159,957)

(377,904)

(472,081)

(13,524)

(37,850)

(69,613)

(84,446)

(140,044)

(197,807)

(447,517)

(556,527)

Interest income

Income from Islamic financing and investing assets

Total interest income and income from Islamic financing and investing assets

Interest expense

Distribution to Islamic depositors

Total interest expenses and distribution to Islamic

depositors

Fee and commission income

Fee and commission expense

Net fee and commission income

Other operating income, net

Share of results under associates

Net operating income

General and administrative expenses

Net impairment (charge)/reversal on financial

Profit for the period before tax

Income tax charge

Profit for the period

Profit for the period attributable to:

Owners of the Bank

Non-controlling interests

Profit for the period

36,183

46,715

120,106

120,957

(5,770)

(5,609)

(16,199)

(15,957)

30,413

41,106

103,907

105,000

42,714

154,725

129,225

172,050

-

(1,492)

-

(1,492)

172,000

278,475

523,738

528,606

(101,900) (108,376) (295,180) (290,835)

(53,874) (6,002) (119,066) 16,232

16,226

164,097

109,492

254,003

(1,756)

(14,858)

(10,814)

(23,309)

14,470

149,239

98,678

230,694

15,056

149,239

99,366

229,703

(586)

-

(688)

991

14,470

149,239

98,678

230,694

21

0.008

Three month period ended

Nine month period ended

30 Sep

2025

30 Sep

2024

30 Sep

2025

30 Sep

2024

AED '000

AED '000

AED '000

AED '000

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Items that will not be reclassified subsequently to

profit or loss:

Changes in fair value of financial assets measured at

fair value through other comprehensive income

Other comprehensive income for the period

Total comprehensive income for the period

Total comprehensive income attributable to:

Owners of the Bank

Non-controlling interests

2,784

400

4,257

1,528

2,784

400

4,257

1,528

17,254

149,639

102,935

232,222

17,840 149,639 103,623 231,231

(586) - (688) 991

Commercial Bank International P.J.S.C

Condensed consolidated statement of changes in equity

Share

capital

AED '000

Additional Tier

1 instruments

AED '000

Reserves

AED '000

Retained

earnings

AED '000

Equity

attributable to owners of

the Bank

AED '000

Non-

Controlling interests

AED '000

Total

AED '000

2025

Balance as at 31 December 2024 - audited

Profit for the period

Other comprehensive income for the period

Total comprehensive income for the period

Interest paid on Tier 1 Capital securities

Balance as at 30 September 2025 - unaudited

1,737,383

-

-

-

-

1,737,383

459,125

-

-

-

-

459,125

289,172

-

4,257

4,257

-

293,429

443,495

99,366

-

99,366

(13,761)

529,100

2,929,175

99,366

4,257

103,623

(13,761)

3,019,037

120,733

3,049,908

(688)

98,678

-

4,257

(688)

102,935

-

(13,761)

120,045

3,139,082

Share

capital

AED '000

Additional Tier

1 instruments

AED '000

Reserves

AED '000

Retained

earnings

AED '000

Equity

attributable to owners of

the Bank

AED '000

Non-

Controlling interests

AED '000

Total

AED '000

2024

Balance as at 31 December 2023 - audited

Profit for the period

Other comprehensive income for the period

Total comprehensive income for the period

Interest paid on Tier 1 Capital securities

Transfer from retained earning to reserve (Note 16)

Balance as at 30 September 2024 - unaudited

1,737,383

-

-

-

-

-

1,737,383

459,125

-

-

-

-

-

459,125

525,291

-

1,528

1,528

-

89,998

616,817

31,083

229,703

-

229,703

(13,760)

(89,998)

157,028

2,752,882

229,703

1,528

231,231

(13,760)

-

2,970,353

120,057

991

-

991

-

-

121,048

2,872,939

230,694

1,528

232,222

(13,760)

-

3,091,401

Cash flows from operating activities

Profit before tax for the period

Adjustments for:

Depreciation of property and equipment

Depreciation of investment property

Amortisation of intangible assets

Impairment charge/ (reversal) of financial assets

Amortisation of financial assets measured at amortised cost

Loss/(gain) on financial assets measured at FVTPL

Dividend income

Provision for end of service benefits

Associates share of loss

Changes in operating assets and liabilities:

Increase in balances with the Central Bank of the UAE

(Decrease)/Increase in deposits and balances due from banks

with original maturity of 90 days or more

Increase in financial assets measured at amortized cost with original maturity of 90 days or more

Decrease/(Increase) in loans, advances and Islamic financing

Decrease in property inventory

Increase in receivables and other assets

Decrease in due to the central bank of the UAE

Decrease in deposits and balances due to banks

Increase in customers' deposits

Increase in payables and other liabilities

Cash (used in)/generated from operating activities

End of service benefits paid

Tax Paid

Net cash flows (used in)/from operating activities

Cash flows from financing activities

Interest paid on Tier 1 Capital securities

Net cash used in financing activities

Net (decrease)/ increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

Note

2025

AED '000

(unaudited)

2024

AED '000

(unaudited)

15,517

16,166

390

580

6,431

7,279

119,066

(16,232)

3,429

3,928

1,458

(2,100)

(234)

(214)

6,635

6,577

-

1,492

262,184

271,479

(73,913)

(206,830)

(127,332)

65,930

(341,305)

(10,492)

691,480

(690,757)

130,226

302,125

(421,224)

(461,589)

-

(892)

(724,711)

(1,035,798)

343,603

2,583,538

147,656

226,285

(113,336)

1,042,999

(1,275)

(1,877)

(7,821)

-

(122,432)

1,041,122

Cash flows from investing activities:

Purchase of property and equipment

(5,048)

(21,821)

Purchase of intangible assets

(19,638)

(807)

Proceeds from sale of investment properties

-

14,781

Proceeds of financial assets measured at OCI

-

929

Net purchases of financial assets measured at amortised cost

(253,304)

42,502

Net settlement of financial instruments measured at FVTPL - Derivatives

16,608

2,185

Dividend received

234

214

Acquisition of investment in associate

-

(10,000)

Purchase of financial assets measured at FVTPL

-

(3,672)

Net cash (used in)/from investing activities

(261,148)

24,311

(13,761)

(13,760)

(13,761)

(13,760)

(397,341)

1,051,673

1,564,830

1,105,953

1,167,489

2,157,626

1

Status and activities

Commercial Bank International P.J.S.C. (the "Bank") is a public joint stock company with limited liability incorporated under an Emiri

Decree Number 5/91 on 28 April 1991 by His Highness Ruler of Ras Al-Khaimah. The registered office of the Bank is at P.O. Box 793, Ras Al-Khaimah. The Bank is listed on the Abu Dhabi Exchange (Ticker "CBI"). The Bank carries on commercial banking activities through its branches in the United Arab Emirates ("the UAE").

These condensed consolidated financial statements incorporate the financial statements of the Bank and its subsidiaries as disclosed

below (collectively referred to as the "Group").

Details of the Group's subsidiaries and associates at the end of reporting period are as follows:

Principal

Principal place of

Place of

% of ownership

Name

Activity

business

incorporation

2025

2024

CBI Financial Services Limited

SPV

Dubai - UAE

Cayman Islands

100

100

CBI Tier 1 Private Ltd

SPV

Dubai - UAE

Cayman Islands

100

100

Takamul Real Estate L.L.C.

Real estate

Dubai - UAE

Dubai - UAE

100

100

Al Khaleejiah Property Investments LLC

Real estate

Sharjah - UAE

Sharjah - UAE

52.8

52.8

AL Murjan Real Estate*

Constructions

Sharjah - UAE

Sharjah - UAE

50

50

Al Caribi Development Limited

Real estate

Dubai - UAE

BVI

100

100

Callaloo CAY Development Limited*

Real estate

Antigua and Barbuda

Antigua and Barbuda

80

80

Arzaq Holdings (Private J.S.C.)**

Real estate

Sharjah - UAE

Sharjah - UAE

48

48

Tekle Holographics MENA Holding Ltd.

Technology

DIFC - UAE

Dubai - UAE

25

25

CBIx Investment Limited

Investments

DIFC - UAE

Dubai - UAE

100

-

CBIx Tech Labs Limited

Technology

DIFC - UAE

Dubai - UAE

100

-

* Under liquidation

** This associate is accounted for using the equity method in these consolidated financial statements and the net assets of ARZAQ are

in deficit position, consequently investment in associate is carried at Nil value.

2

Application of new and revised standards

2.1

New and revised standards applied with no material effect on the condensed consolidated financial statements

The following new and revised IFRS Accounting Standard as issued by IASB, which became effective for annual periods beginning on or

after 1 January 2025, have been adopted in these condensed consolidated interim financial information. Their adoption has not had any material impact on the disclosures or on the amounts reported in these consolidated financial statements.

• IFRS S1 Lack of Exchangeability (Amendment to IAS 21)

2.2

New and revised standards in issue but not yet effective and not early adopted

The Group has not yet early applied the following new standards, amendments and interpretations that have been issued but are not yet effective:

New and revised standards

Effective for annual periods beginning

on or after

Amendments to the Classification and Measurement of Financial Instruments

(Amendments to IFRS 9 and IFRS 7)

01 January 2026

Annual Improvements to IFRS Accounting Standards - Volume 11

01 January 2026

Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)

01 January 2026

IFRS 18 'Presentation and Disclosure in Financial Statements'

01 January 2027

IFRS 19 'Subsidiaries without Public Accountability: Disclosures'

01 January 2027

3

Material accounting policies

3.1

Statement of compliance

The condensed consolidated financial statements of the Group are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).

3.2

Basis of preparation

The condensed consolidated financial statements have been prepared on the historical cost basis, except for certain financial instruments, which are carried at fair value.

These condensed consolidated financial statements are prepared in accordance with IAS 34 - Interim Financial Reporting issued by the IASB and also complies with the applicable requirements of the laws in the U.A.E including the UAE Federal Law No. 32 of 2021 on Commercial Companies and the Decretal Federal Law No. 14 of 2018. The accounting policies used in the preparation of this condensed consolidated interim financial information is consistent with those used in the audited annual consolidated financial statements for the year ended 31 December 2024.

These condensed consolidated financial statements do not include all the information required for full annual consolidated financial statements and should be read in conjunction with the Group's consolidated financial statements as at and for the year ended 31 December 2024. In addition, results for the nine months period ended 30 September 2025 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2025. As required by the SCA Notification No. 2624/2008 dated 12 October 2008, accounting policies relating to financial instruments and investment properties have been disclosed in these condensed consolidated financial statements.

3.3

Financial instruments

Financial assets and financial liabilities are recognised in the Group's condensed consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

Recognised financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs

directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in profit or loss.

3.4

Financial assets

All financial assets are recognised and derecognised on a trade date where the purchase or sale of a financial asset is under a contract

whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value, plus transaction costs, except for those financial assets classified as at FVTPL. Transaction costs directly attributable to the acquisition of financial assets classified as at FVTPL are recognised immediately in profit or loss.

All recognised financial assets that are within the scope of IFRS 9 are required to be subsequently measured at amortised cost or fair value on the basis of the entity's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

Specifically:

debt instruments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI), are subsequently measured at amortised cost;

debt instruments that are held within a business model whose objective is both to collect the contractual cash flows and to sell the debt instruments, and that have contractual cash flows that are SPPI, are subsequently measured at FVTOCI;

all other debt instruments (e.g. debt instruments managed on a fair value basis, or held for sale) and equity investments are subsequently measured at FVTPL.

However, the Group may make the following irrevocable election / designation at initial recognition of a financial asset on an asset-by-asset basis:

the Group may irrevocably elect to present subsequent changes in fair value of an equity investment that is neither held for trading nor contingent consideration recognised by an acquirer in a business combination to which IFRS 3 applies, in OCI; and

the Group may irrevocably designate a debt instrument that meets the amortised cost or FVTOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch (referred to as the fair value option)

3.4

Financial assets (continued)

3.4.1

Debt instruments at amortised cost or at FVTOCI

The Group assesses the classification and measurement of a financial asset based on the contractual cash flow characteristics of the

asset and the Group's business model for managing the asset. For an asset to be classified and measured at amortised cost or at FVTOCI, its contractual terms should give rise to cash flows that are solely payments of principal and interest on the principal outstanding (SPPI).

For the purpose of the SPPI test, principal is the fair value of the financial asset at initial recognition. That principal amount may change over the life of the financial asset (e.g. if there are repayments of principal). Interest consists of consideration for the time value of money, for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin. The SPPI assessment is made in the currency in which the financial asset is denominated.

Contractual cash flows that are SPPI are consistent with a basic lending arrangement. Contractual terms that introduce exposure to risks or volatility in the contractual cash flows that are unrelated to a basic lending arrangement, such as exposure to changes in equity prices or commodity prices, do not give rise to contractual cash flows that are SPPI. An originated or an acquired financial asset can be a basic lending arrangement irrespective of whether it is a loan in its legal form.

An assessment of business models for managing financial assets is fundamental to the classification of a financial asset. The Group determines the business models at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. The Group's business model does not depend on management's intentions for an individual instrument, therefore the business model assessment is performed at a higher level of aggregation rather than on an instrument-by-instrument basis.

The Group may have more than one business model for managing its financial instruments which reflect how the Group manages its financial assets in order to generate cash flows. The Group's business models determine whether cash flows will result from collecting contractual cash flows, selling financial assets or both.

The Group considers all relevant information available when making the business model assessment. However, this assessment is not performed on the basis of scenarios that the Group does not reasonably expect to occur, such as so-called 'worst case' or 'stress case' scenarios. The Group takes into account all relevant evidence available such as:

how the performance of the business model and the financial assets held within that business model are evaluated and reported to the

entity's key management personnel;

the risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way in which those risks are managed; and

how managers of the business are compensated (e.g. whether the compensation is based on the fair value of the assets managed or on the contractual cash flows collected).

At initial recognition of a financial asset, the Group determines whether newly recognised financial assets are part of an existing business model or whether they reflect the commencement of a new business model. The Group reassesses its business models each reporting period to determine whether the business models have changed since the preceding period. For the current and prior reporting period the Group has not identified a change in its business models.

When a debt instrument measured at FVTOCI is derecognised, the cumulative gain/loss previously recognised in OCI is reclassified from equity to profit or loss. In contrast, for an equity investment designated as measured at FVTOCI, the cumulative gain/loss previously recognised in OCI is not subsequently reclassified to profit or loss but transferred within equity. Debt instruments that are subsequently measured at amortised cost or at FVTOCI are subject to impairment.

In the current and prior reporting period, the Group has not classified any debt instrument at FVTOCI. Further, in the current and prior reporting period the Group has not applied the fair value option and so has not designated debt instruments that meet the amortised cost or FVTOCI criteria as measured at FVTPL.

3.4

Financial assets (continued)

3.4.2

Financial assets at FVTPL

Financial assets at FVTPL are:

i) assets with contractual cash flows that are not SPPI; and/or

ii) assets that are held in a business model other than held to collect contractual cash flows or held to collect and sell; or

iii) assets designated at FVTPL using the fair value option.

These assets are measured at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. Fair value is

determined in the manner described in note 26.

3.4.3

Reclassifications

If the business model under which the Group holds financial assets changes, the financial assets affected are reclassified. The classification and measurement requirements related to the new category apply prospectively from the first day of the first reporting period following the change in business model that results in reclassifying the Group's financial assets. During the current and previous financial periods there was no change in the business model under which the Group holds financial assets and therefore no

reclassifications were made. Changes in contractual cash flows are considered under the accounting policy on 'Modification and

3.4.4

Foreign exchange gains and losses

The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and

translated at the spot rate at the end of each reporting period. Specifically:

for financial assets measured at amortised cost that are not part of a designated hedging relationship, exchange differences are recognised in profit or loss;

for debt instruments measured at FVTOCI that are not part of a designated hedging relationship, exchange differences on the amortised cost of the debt instrument are recognised in profit or loss. Other exchange differences are recognised in OCI in the investments revaluation reserve;

for financial assets measured at FVTPL that are not part of a designated hedge accounting relationship, exchange differences are recognised in profit or loss; and

for equity instruments measured at FVTOCI, exchange differences are recognised in OCI in the investments revaluation reserve.

3.4.5

Impairment

The Group recognises loss allowances for expected credit losses (ECL) on the financial instruments that are not measured at FVTPL

(including loan commitments and financial guarantee contracts). No impairment loss is recognised on equity investments.

With the exception of 'Purchased or Originated Credit-Impaired' (POCI) financial assets (which are considered separately below), ECL are required to be measured through a loss allowance at an amount equal to:

a) 12-month ECL, i.e. lifetime ECL that result from those default events on the financial instrument that are possible within 12 months after the reporting date, (referred to as Stage 1); or

b) full lifetime ECL, i.e. lifetime ECL that result from all possible default events over the life of the financial instrument, (referred to as Stage 2 and Stage 3).

A loss allowance for full lifetime ECL is required for a financial instrument if the credit risk on that financial instrument has increased significantly since initial recognition. For all other financial instruments, ECL are measured at an amount equal to the 12-month ECL.

ECL are a probability-weighted estimate of the present value of credit losses. These are measured as the present value of the difference between the cash flows due to the Group under the contract and the cash flows that the Group expects to receive arising from the weighting of multiple future economic scenarios, discounted at the asset's EIR.

a) for undrawn loan commitments, the ECL is the difference between the present value of the difference between the contractual cash flows that are due to the Group if the holder of the commitment draws down the loan and the cash flows that the Group expects to receive if the loan is drawn down; and

b) for financial guarantee contracts, the ECL is the difference between the expected payments to reimburse the holder of the guaranteed debt instrument less any amounts that the Group expects to receive from the holder, the debtor or any other party.

3.4

Financial assets (continued)

3.4.5

Impairment (continued)

The Group measures ECL on an individual basis, or on a collective basis for portfolios of loans that share similar economic risk characteristics. The measurement of the loss allowance is based on the present value of the asset's expected cash flows using the asset's original EIR, regardless of whether it is measured on an individual basis or a collective basis.

3.4.6

Credit-impaired financial assets

A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Credit-impaired financial assets are referred to as Stage 3 assets. Evidence of credit-impairment includes observable data about the following events:

a) significant financial difficulty of the borrower or issuer;

b) a breach of contract such as a default or past due event;

c) the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted

to the borrower a concession that the lender would not otherwise consider;

d) the disappearance of an active market for a security because of financial difficulties; or

e) the purchase of a financial asset at a deep discount that reflects the incurred credit losses.

It may not be possible to identify a single discrete event, instead, the combined effect of several events may have caused financial assets to become credit-impaired. The Group assesses whether debt instruments that are financial assets measured at amortised cost or FVTOCI are credit-impaired at each reporting date. To assess if sovereign and corporate debt instruments are credit impaired, the Group considers factors such as bond yields, credit ratings and the ability of the borrower to raise funding.

A loan is considered credit-impaired when a concession is granted to the borrower due to a deterioration in the borrower's financial condition, unless there is evidence that as a result of granting the concession the risk of not receiving the contractual cash flows has reduced significantly and there are no other indicators of impairment. For financial assets where concessions are contemplated but not granted the asset is deemed credit impaired when there is observable evidence of credit-impairment including meeting the definition of default. The definition of default (see below) includes unlikeliness to pay indicators and a backstop if amounts are overdue for 90 days or more.

3.4.7

Purchased or originated credit-impaired (POCI) financial assets

POCI financial assets are treated differently because the asset is credit-impaired at initial recognition. For these assets, the Group recognises all changes in lifetime ECL since initial recognition as a loss allowance with any changes recognised in profit or loss. A favourable change for such assets creates an impairment gain.

3.4.8

Definition of default

Critical to the determination of ECL is the definition of default. The definition of default is used in measuring the amount of ECL and in the determination of whether the loss allowance is based on 12-month or lifetime ECL, as default is a component of the probability of default (PD) which affects both the measurement of ECL and the identification of a significant increase in credit risk.

The Group considers the following as constituting an event of default:

a) the borrower is past due more than 90 days on any material credit obligation to the Group; or

b) the borrower is unlikely to pay its credit obligations to the Group in full.

The definition of default is appropriately tailored to reflect different characteristics of different types of assets. Overdrafts are considered as being past due once the customer has breached an advised limit or has been advised of a limit smaller than the current amount outstanding.

When assessing if the borrower is unlikely to pay its credit obligation, the Group takes into account both qualitative and quantitative indicators. The information assessed depends on the type of the asset, for example in corporate lending a qualitative indicator used is the breach of covenants, which is not relevant for retail lending. Quantitative indicators, such as overdue status and non-payment on another obligation of the same counterparty are key inputs in this analysis. The Group uses a variety of sources of information to assess default which are either developed internally or obtained from external sources.

3.4

Financial assets (continued)

3.4.9

Significant increase in credit risk (SICR)

The Group monitors all financial assets, issued loan commitments and financial guarantee contracts that are subject to the impairment

requirements to assess whether there has been a significant increase in credit risk since initial recognition. If there has been a significant increase in credit risk the Group will measure the loss allowance based on lifetime rather than 12-month ECL. The Group's accounting policy is not to use the practical expedient that financial assets with 'low' credit risk at the reporting date are deemed not to have had a significant increase in credit risk. As a result, the Group monitors all financial assets, issued loan commitments and financial guarantee contracts that are subject to impairment for significant increase in credit risk.

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument at the reporting date based on the remaining maturity of the instrument with the risk of a default occurring that was anticipated for the remaining maturity at the current reporting date when the financial instrument was first recognised. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort, based on the Group's historical experience and expert credit assessment including forward-looking information.

Multiple economic scenarios form the basis of determining the probability of default at initial recognition and at subsequent reporting dates. Different economic scenarios will lead to a different probability of default. It is the weighting of these different scenarios that forms the basis of a weighted average probability of default that is used to determine the ECL.

For corporate lending, forward-looking information includes the future prospects of the industries in which the Group's counterparties operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various internal and external sources of actual and forecast economic information. For retail lending, forward looking information includes the same economic forecasts as corporate lending with additional forecasts of local economic indicators, particularly for regions with a concentration to certain industries, as well as internally generated information of customer payment behaviour. The Group allocates its counterparties to a relevant internal credit risk grade depending on their credit quality. The quantitative information is a primary indicator of significant increase in credit risk and is based on the change in credit worthiness of borrowers measured by rating downgrade which result in higher PD as per staging criteria. The PDs used are forward looking and the Group uses the same methodologies and data used to measure the loss allowance for ECL.

The qualitative factors that indicate significant increase in credit risk are reflected in PD models on a timely basis. However, the Group still considers separately some qualitative factors to assess if credit risk has increased significantly. For corporate lending there is particular focus on assets that are included on a 'watch list' given an exposure is on a watch list once there is a concern that the creditworthiness of the specific counterparty has deteriorated. For retail lending the Group considers the expectation of forbearance and payment holidays, credit scores and events such as unemployment, bankruptcy, divorce or death.

As a back-stop when an asset becomes 30 days past due, the Group considers that a significant increase in credit risk has occurred and the asset is transferred into stage 2 of the impairment model, i.e. the loss allowance is measured as the lifetime ECL, unless the Group has reasonable and supportable information that demonstrates otherwise

3.4.10

Modification and derecognition of financial assets

A modification of a financial asset occurs when the contractual terms governing the cash flows of a financial asset are renegotiated or

otherwise modified between initial recognition and maturity of the financial asset. A modification affects the amount and/or timing of the contractual cash flows either immediately or at a future date. In addition, the introduction or adjustment of existing covenants of an existing loan would constitute a modification even if these new or adjusted covenants do not yet affect the cash flows immediately but may affect the cash flows depending on whether the covenant is or is not met (e.g. a change to the increase in the interest rate that arises when covenants are breached).

The Group renegotiates loans to customers in financial difficulty to maximise collection and minimise the risk of default. A loan forbearance is granted in cases where although the borrower made all reasonable efforts to pay under the original contractual terms, there is a high risk of default or default has already happened and the borrower is expected to be able to meet the revised terms. The revised terms in most of the cases include an extension of the maturity of the loan, changes to the timing of the cash flows of the loan (principal and interest repayment), reduction in the amount of cash flows due (principal and interest forgiveness) and amendments to covenants.

3.4

Financial assets (continued)

3.4.10

Modification and derecognition of financial assets (continued)

When a financial asset is modified the Group assesses whether this modification results in derecognition. In accordance with the Group's policy a modification results in derecognition when it gives rise to substantially different terms. To determine if the modified terms are substantially different from the original contractual terms the Group considers the following:

a) Qualitative factors, such as contractual cash flows after modification are no longer SPPI, change in currency or change of counterparty, the extent of change in interest rates, maturity and covenants. If these do not clearly indicate a substantial modification, then;

b) A quantitative assessment is performed to compare the present value of the remaining contractual cash flows under the original terms with the contractual cash flows under the revised terms, with both amounts discounted at the original effective interest. If the difference in present value is substantial the Group deems the arrangement is substantially different leading to derecognition.

In the case where the financial asset is derecognised the loss allowance for ECL is remeasured at the date of derecognition to determine the net carrying amount of the asset at that date. The difference between this revised carrying amount and the fair value of the new financial asset with the new terms will lead to a gain or loss on derecognition. The new financial asset will have a loss allowance measured based on 12-month ECL except in the rare occasions where the new loan is considered to be originated credit impaired. This applies only in the case where the fair value of the new loan is recognised at a significant discount to its revised par amount because there remains a high risk of default which has not been reduced by the modification. The Group monitors credit risk of modified financial assets by evaluating qualitative and quantitative information, such as if the borrower is in past due status under the new terms.

When the contractual terms of a financial asset are modified and the modification does not result in derecognition, the Group

determines if the financial asset's credit risk has increased significantly since initial recognition by comparing:

a) the remaining lifetime PD estimated based on data at initial recognition and the original contractual terms; with

b) the remaining lifetime PD at the reporting date based on the modified terms.

For financial assets modified as part of the Group's forbearance policy, where modification did not result in derecognition, the estimate of PD reflects the Group's ability to collect the modified cash flows taking into account the Group's previous experience of similar forbearance action, as well as various behavioural indicators, including the borrower's payment performance against the modified contractual terms. If the credit risk remains significantly higher than what was expected at initial recognition the loss allowance will continue to be measured at an amount equal to lifetime ECL. The loss allowance on forborne loans will generally only be measured based on 12-month ECL when there is evidence of the borrower's improved repayment behaviour following modification leading to a reversal of the previous significant increase in credit risk.

Where a modification does not lead to derecognition the Group calculates the modification gain/loss comparing the gross carrying amount before and after the modification (excluding the ECL allowance). Then the Group measures ECL for the modified asset, where the expected cash flows arising from the modified financial asset are included in calculating the expected cash shortfalls from the original asset.

The Group derecognises a financial asset only when the contractual rights to the asset's cash flows expire (including expiry arising from a modification with substantially different terms), or when the financial asset and substantially all the risks and rewards of ownership of the asset are transferred to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain/loss that had been recognised in OCI and accumulated in equity is recognised in profit or loss, with the exception of equity investment designated as measured at FVTOCI, where the cumulative gain/loss previously recognised in OCI is not subsequently reclassified to profit or loss.

3.4

Financial assets (continued)

3.4.10

Modification and derecognition of financial assets (continued)

On derecognition of a financial asset other than in its entirety (e.g. when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement, and the part it no longer recognises on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain/loss allocated to it that had been recognised in OCI is recognised in profit or loss.

A cumulative gain/loss that had been recognised in OCI is allocated between the part that continues to be recognised and the part that is no longer recognised on the basis of the relative fair values of those parts. This does not apply for equity investments designated as measured at FVTOCI, as the cumulative gain/loss previously recognised in OCI is not subsequently reclassified to profit or loss.

3.4.11

Write-off

Loans and debt securities are written off when the Group has no reasonable expectations of recovering the financial asset (either in its entirety or a portion of it). This is the case when the Group determines that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off, or in the case of retail loan, when the amounts are over 180 days past due, whichever occurs sooner. A write-off constitutes a derecognition event. The Group may apply enforcement activities to financial assets written off. Recoveries resulting from the Group's enforcement activities will result in impairment gains.

3.4.12

Presentation of allowance for ECL in the statement of financial position

Loss allowances for ECL are presented in the statement of financial position as follows:

a) for financial assets measured at amortised cost: as a deduction from the gross carrying amount of the assets;

b) for debt instruments measured at FVTOCI: no loss allowance is recognised in the statement of financial position as the carrying amount is at fair value. However, the loss allowance is included as part of the revaluation amount in the investments revaluation reserve;

c) for loan commitments and financial guarantee contracts: as a provision; and

d) where a financial instrument includes both a drawn and an undrawn component, and the Group cannot identify the ECL on the loan commitment component separately from those on the drawn component, the Group presents a combined loss allowance for both components. The combined amount is presented as a deduction from the gross carrying amount of the drawn component. Any excess of the loss allowance over the gross amount of the drawn component is presented as a provision.

3.5

Equity and financial liabilities

Equity and debt instruments issued by a group entity are classified as either equity or as financial liabilities in accordance with the substance of the contractual arrangements and the definitions of an equity instrument and a financial liability.

3.5.1

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Group's own equity instruments is recognised and deducted directly in equity. No gain/loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group's own equity instruments.

3.5.2

Financial liabilities

A financial liability is a contractual obligation to deliver cash or another financial asset or to exchange financial assets or financial

liabilities with another entity under conditions that are potentially unfavourable to the Group or a contract that will or may be settled in the Group's own equity instruments and is a non-derivative contract for which the Group is or may be obliged to deliver a variable number of its own equity instruments, or a derivative contract over own equity that will or may be settled other than by the exchange of a fixed amount of cash (or another financial asset) for a fixed number of the Group's own equity instruments. Financial liabilities are classified as either financial liabilities 'at FVTPL' or 'other financial liabilities'.

3.5.2

Financial liabilities (continued)

3.5.2.1

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is 1) contingent consideration of an acquirer in a business combination to which IFRS 3 applies, 2) held for trading, or 3) it is designated as at FVTPL.

A financial liability is classified as held for trading if:

a) it has been acquired principally for the purpose of repurchasing it in the near term; or

b) on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or

c) it is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument.

A financial liability other than a financial liability held for trading or contingent consideration of an acquirer in a business combination may be designated as at FVTPL upon initial recognition if:

a) such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or

b) the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

c) it forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at FVTPL.

Financial liabilities at FVTPL are stated at fair value with any gains or losses arising on changes in fair value recognised in profit or loss to the extent that they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liabilities.

3.5.2.2

Other financial liabilities

Other financial liabilities are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently

measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The EIR is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

3.5.3

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or have expired.

The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

When the Group exchanges with the existing lender one debt instrument into another one with substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability.

3.5.4

Sale and Repurchase Agreements

3.6

Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation, including property under construction for such purposes. Investment properties are measured initially at its cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated so as to write off the cost of investment properties using the straight line method over their estimated useful lives of 25 years. Investment properties are accounted for as acquisitions on the date when ownership passes to the Group under the contract for the purchase of the relevant property, pending which event payments in respect of investment property acquisitions are included in 'receivable and other assets'. Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of asset is recognised in the consolidated income statement in the period of derecognition.

4

Basis for consolidation

The condensed consolidated financial statements incorporate the condensed financial statements of the Bank and the entities

controlled by the Bank (its subsidiaries). Control is achieved where the Bank has:

• power over an investee,

• exposures, or rights, to variable returns from its involvement with the investee, and

• has the ability to use its power to affect its returns.

5

Estimates and judgments

The preparation of condensed consolidated financial statements 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 expense. Actual results may differ from these estimates.

In preparing these condensed consolidated financial statements, the significant judgments made by management in applying the

Group's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the audited consolidated financial statements as at and for the year ended 31 December 2024.

6

Seasonality of results

7

Financial risk management

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

Summarised information of the Group's credit risk exposure per class of financial asset (subject to impairment) is provided

in following table.

30-Sep-25

31-Dec-24

Gross carrying

amount

ECL

allowance

Carrying amount

Gross carrying

amount

ECL

allowance

Carrying amount

AED '000

AED '000

AED '000

AED '000

AED '000

AED '000

Balances with the Central Bank of the UAE

Stage 1

866,031

-

866,031

1,573,434

-

1,573,434

Deposits and balances due from banks

Stage 1

1,452,602

(3,720)

1,448,882

933,382

(3,020)

930,362

Loans, advances and Islamic financing

Stage 1

10,313,175

(40,286)

10,272,889

10,791,067

(52,678)

10,738,389

Stage 2

1,421,743

(187,093)

1,234,650

1,441,648

(231,830)

1,209,818

Stage 3

2,164,402

(889,779)

1,274,623

2,317,792

(683,088)

1,634,704

13,899,320

(1,117,158)

12,782,162

14,550,507

(967,596)

13,582,911

Receivables and other assets (excluding prepayments and advances)

Stage 1

1,384,314

(4,227)

1,380,087

1,073,438

(3,151)

1,070,287

Stage 2

47,621

(939)

46,682

42,214

(953)

41,261

Stage 3

156,819

-

156,819

163,123

-

163,123

1,588,754

(5,166)

1,583,588

1,278,775

(4,104)

1,274,671

Investment securities measured at amortised cost

Stage 1

3,421,528

(17,170)

3,404,358

2,838,263

(13,702)

2,824,561

Loan commitments, letters of credit and financial guarantee contracts

Stage 1

7,138,670

(11,069)

7,127,601

5,262,564

(9,243)

5,253,321

Stage 2

304,761

(8,167)

296,594

277,052

(5,427)

271,625

Stage 3

13,555

(221)

13,334

80,015

(221)

79,794

7,456,986

(19,457)

7,437,529

5,619,631

(14,891)

5,604,740

7

Financial risk management (continued)

The tables below analyse the movement of the gross carrying amount and ECL for loans, advances and islamic financing during the period per class of financial assets.

Stage 1

12 months

ECL

Stage 2 Lifetime

ECL

Stage 3 Lifetime

ECL

POCI

Lifetime

ECL

Total

The movement of ECL

AED '000

AED '000

AED '000

AED '000

AED '000

As at 1 January 2025

Transfer to stage 1

Transfer to stage 2

Transfer to stage 3

Change in ECL

Write-offs

New financial assets recognised

Financial assets derecognised

As at 30 September 2025

52,678

231,830

683,088

-

967,596

2,481

(2,481)

-

-

-

(724)

3,592

(2,868)

-

-

-

(6,615)

6,615

-

-

(11,385)

(37,737)

221,706

-

172,584

-

-

(8,743)

-

(8,743)

2,530

-

-

-

2,530

(5,294)

(1,496)

(10,019)

-

(16,809)

40,286 187,093

889,779

- 1,117,158

As at 1 January 2024

Transfer to stage 1

Transfer to stage 2

Transfer to stage 3

Change in ECL

Write-offs

New financial assets recognised

Financial assets derecognised

As at 31 December 2024

46,575

201,425

538,439

-

786,439

9,609

(9,609)

-

-

-

(358)

22,995

(22,637)

-

-

(190)

(24,806)

24,996

-

-

(7,469)

41,966

272,808

-

307,305

-

-

(34,264)

-

(34,264)

10,309

-

-

-

10,309

(5,798)

(141)

(96,254)

-

(102,193)

52,678 231,830

683,088

-

967,596

Stage 1

12 months

ECL

AED '000

Stage 2

Lifetime

ECL

AED '000

Stage 3

Lifetime

ECL

AED '000

POCI

Lifetime

ECL

AED '000

Total

AED '000

10,791,067

1,441,648

2,317,792

-

14,550,507

112,070

(112,070)

-

-

-

(113,387)

251,274

(137,887)

-

-

-

(34,104)

34,104

-

-

(441,036)

(107,502)

(8,078)

-

(556,616)

-

-

(8,743)

-

(8,743)

917,983

-

-

-

917,983

(953,522)

(17,503)

(32,786)

-

(1,003,811)

10,313,175

1,421,743

2,164,402

-

13,899,320

As at 1 January 2025

Transfer to stage 1

Transfer to stage 2

Transfer to stage 3

Change in Exposure

Write-offs

New financial assets recognised

Financial assets derecognised

As at 30 September 2025

As at 1 January 2024

Transfer to stage 1

Transfer to stage 2

Transfer to stage 3

Change in Exposure

Write-offs

New financial assets recognised

Financial assets derecognised

As at 31 December 2024

9,244,655

1,731,739

2,418,484

-

13,394,878

77,529

(77,529)

-

-

-

(98,294)

182,265

(83,971)

-

-

(10,777)

(404,235)

415,012

-

-

1,390,986

19,566

126,214

-

1,536,766

-

-

(34,264)

-

(34,264)

1,760,199

-

-

-

1,760,199

(1,573,231)

(10,158)

(523,683)

-

(2,107,072)

10,791,067

1,441,648

2,317,792

-

14,550,507

8

Cash and balances with the Central Bank

In the table below, statutory cash ratio requirements with the Central Bank of the UAE represent mandatory reserve deposits and are not available for use in the Bank's day-to-day operations. Cash on hand and current accounts and other balances are

non-interest bearing. Overnight deposits carry interest rate of 4.15% per annum (2024: 5.4% per annum).

9

Deposits and balances due from banks

Demand and call deposits

Interbank Placements

Loans to banks

2025

AED '000

(unaudited)

74,042

2024

AED '000

(audited)

63,292

Cash on hand

Balances with the Central Bank of the UAE:

Current account

Statutory cash ratio requirements

Overnight deposits

7,934

-

584,055

510,142

200,000

1,000,000

866,031

1,573,434

2025

2024

AED '000

AED '000

(unaudited)

(audited)

67,500

96,092

420,480

-

964,622

837,290

1,452,602

933,382

(3,720)

(3,020)

1,448,882

930,362

2025

2024

AED '000

AED '000

(unaudited)

(audited)

582,395

572,072

41,919

46,192

344,696

385,902

969,010

1,004,166

(20,486)

(25,888)

948,524

978,278

10

Loans, advances and Islamic financing

Retail lending:

Mortgage loans

Credit cards

Other

10,116,625

8,341,542

1,564,308

1,603,448

409,169

451,624

164,693

337,424

12,254,795

10,734,038

(844,040)

(753,040)

11,410,755

9,980,998

Wholesale lending:

Loans

Overdrafts

Trust receipts

Bills discounted

437,653

2,604,289

236,818

265,177

6,281

6,269

680,752

2,875,735

(5,236)

(63,432)

675,516

2,812,303

(252,633)

(188,668)

422,883

2,623,635

12,782,162

13,582,911

Islamic Financing

Murabaha

Ijarah

Others

Less: Allowance for expected credit losses

Net Islamic financing

Loans, advances and Islamic financing

11

Investment securities measured at fair value

The Group has designated the following investments in equity instruments and investment fund at FVTOCI as these are the investments that the Group plans to hold in the long term for strategic reasons. The table below shows fair value of these investments

2025

AED '000

(unaudited)

2024

AED '000

(audited)

Investment at FVTOCI

Investment in quoted shares

Investment in unquoted shares

Investment in unquoted investment fund

33,607

32,431

14,487

14,486

2,703

1,408

50,797

48,325

Investment at FVTPL

Investment in unquoted private equities

258,006

259,463

308,803

307,788

12

Investment securities measured at amortised cost

2025

2024

AED '000

AED '000

(unaudited)

(audited)

1,526,919

1,436,862

980,771

820,953

913,838

580,448

3,421,528

2,838,263

(17,170)

(13,702)

3,404,358

2,824,561

Investment in debt instruments

Investment in Islamic Sukuk

Monetary bills

13

Customers' deposits

Current accounts

Saving accounts

Time deposits

Other

2025

2024

AED '000

AED '000

(unaudited)

(audited)

2,915,251

2,483,321

447,288

370,682

12,152,583

12,348,588

258,628

227,556

15,773,750

15,430,147

14

Share capital

The authorised, issued, and paid-up capital of the Bank comprises 1,737,383,050 shares of AED 1 each (2024: 1,737,383,050 shares of AED 1 each). Fully paid-up shares carry one vote per share and carry a right to dividends.

15

Additional Tier 1 instruments

On 23 December 2015, the Bank issued Tier 1 Capital Securities (the "Capital Security") amounting to USD 125 million (AED 459.125 million). This Capital Security is perpetual and carry fixed interest rate with a reset every six years.

Tier 1 Capital Security is perpetual, subordinated and unsecured. The Bank may elect not to pay a coupon at its own discretion, amongst other conditions. The holder of the Capital Security does not have a right to claim the coupon and an election by the Bank not to service coupon is not considered an event of default

This Capital Security is callable by the Bank on 23 December 2025 and every interest payment date thereafter, subject to satisfying certain conditions.

16

Reserves

Statutory

reserve

AED '000

Investment

revaluation

reserve

AED '000

CBUAE specific

provision reserve

AED '000

Total

AED '000

2025

As at 1 January (audited)

Other comprehensive income

As at 30 September (unaudited)

337,530

(48,358)

-

289,172

-

4,257

-

4,257

337,530

(44,101)

-

293,429

2024

As at 1 January (audited)

Other comprehensive income

Transfers from retained earnings

As at 30 September (unaudited)

317,313

(63,921)

271,899

525,291

-

1,528

-

1,528

-

12,929

77,069

89,998

317,313

(49,464)

348,968

616,817

17

Net interest income and income from Islamic financing and investing assets

Nine month period ended

2025

2024

AED '000

AED '000

(unaudited)

(unaudited)

478,275

557,725

83,304

90,170

32,372

34,568

40,019

43,546

7,957

11,373

5,854

1,236

647,781

738,618

Loans and overdrafts

Debt instruments

Placements with banks

Loans to banks

Bills discounted

Others

Income from Islamic financing and investing assets

Murabaha

Ijarah

Islamic sukuk

49,671

26,128

13,942

18,677

26,729

26,152

90,342

70,957

Interest expense

Customers' deposits

Borrowings from banks

Others

Total

(338,983)

(380,835)

(36,896)

(89,497)

(2,025)

(1,749)

(377,904)

(472,081)

Distribution to Islamic depositors

Islamic customers' deposits

Islamic investment deposits from banks

(61,025)

(63,145)

(8,588)

(21,301)

(69,613)

(84,446)

(447,517)

(556,527)

18

Other operating income, net

Foreign exchange gains

Dividends

Net (loss)/gain on financial assets at FVTPL

Gain on sale of Properties

Other

Nine month period ended

2025

2024

AED '000

AED '000

(unaudited)

(unaudited)

30,919

18,766

234

214

(16,509)

3,302

112,719

147,801

1,862

1,967

129,225

172,050

19

Net impairment reversal on financial assets

Net ECL (charge)/ release for the period

Recoveries against written off loans

Other

Nine month period ended

2025

2024

AED '000

AED '000

(unaudited)

(unaudited)

(149,916)

4,175

37,592

29,833

(6,742)

(17,776)

(119,066)

16,232

20

Corporate tax

Interim period income tax is accrued based on the estimated annual effective income tax rate of 9.5% (2024: 9.2%)

21

Basic and diluted earnings per share

Earnings per share are calculated by dividing the profit for the period attributed to the owners of the Bank by the weighted average number of shares in issue throughout the period as follows:

Nine month period ended

2025

2024

(unaudited)

(unaudited)

Profit for the period attributable to owners of the Bank (AED'000)

99,366

229,703

Weighted average number of shares in issue ('000)

1,737,383

1,737,383

Basic and diluted earnings per share (AED)

0.057

0.132

22

Contingent liabilities and commitments

2025

AED '000

(unaudited)

2024

AED '000

(unaudited)

Letters of credit and guarantees:

Guarantees

Letters of credit

4,145,758

3,191,527

499,343

419,363

4,645,101

3,610,890

Other commitments:

Loan commitments

Capital commitments

2,811,885

2,008,741

39,544

42,441

2,851,429

2,051,182

23

Cash and cash equivalents

Cash and cash equivalents included in the condensed consolidated statement of cash flows comprise the following:

30 Sep

31 Dec

30 Sep

2025

2024

2024

AED '000

AED '000

AED '000

(unaudited)

(audited)

(unaudited)

866,031

1,573,434

2,041,188

1,452,602

933,382

940,931

913,838

580,448

616,385

3,232,471

3,087,264

3,598,504

(584,055)

(510,142)

(532,483)

(964,622)

(837,292)

(602,190)

(516,305)

(175,000)

(306,205)

1,167,489

1,564,830

2,157,626

Less: Statutory reserve with the Central Bank of the UAE

Less: Balances due from banks with original maturity of 90 days or more

Less: Financial assets measured at amortized cost with original maturity of 90

days or more

Cash and balances with the Central Bank of the UAE

Deposits and balances due from banks

Investments in debt instruments

24

Related party transactions

a)

The Group enters into transactions with companies and entities that fall within the definition of a related party

as contained in IAS 24 Related Party Disclosures. Related parties comprise companies under common ownership and/or common management and control, their shareholders and key management personnel. Transactions with associates and other related parties are made on substantially the same terms, as those prevailing at the same time for comparable transactions with external customers and parties

b)

Related party balances at the end of the reporting period were as follows:

Terms

2025

2024

%

AED '000

AED '000

(unaudited)

(unaudited)

Associate

Customers' deposits

Key management personnel (including directors)

Loans and advances to customers

Customers' deposits

4.2 -7.6

0 -4.6

23,280

19,172

22,520

22,228

Other related parties

Deposits and balances due from banks

Deposits and balances due to banks

Tier 1 capital securities

0-6.3

-

6

202,580

90,547

459,125

204,360

168,922

459,125

c)

Significant transactions with related parties during the period were as follows:

Nine month period ended

2025

2024

AED '000

AED '000

(unaudited)

(unaudited)

Key management personnel (including directors)

Interest income

Interest expense

911

916

809

540

Other related parties

Interest Income

9741

16,431

27,706

23,310

13,761

13,760

Other related parties

Interest on Tier 1 capital securities

25

Operating segments

Operating Segments are identified on the basis of internal reports about the components of the Group that are regularly reviewed by the Group's CEO in order to allocate resources to the segment and to assess its performance. The Group's reportable segments under IFRS 8 are therefore as follows:

▪

Wholesale banking;

▪

Retail banking;

▪

Treasury;

▪

Real estate;

▪

Other

25

Operating segments (Continued)

(6,466)

(422) (295,180)

-

- (119,066)

110,200

15,628 109,492

Wholesale

banking

AED '000

Retail

banking

AED '000

Treasury

AED '000

Real

estate

AED '000

Other

AED '000

Nine months ended 30 September 2025

(unaudited)

Net interest income

202,576

31,517

36,607

Net Fee, commission and other operating income

120,359

(2,171)

2,134

322,935

29,346

38,741

2,794

113,872

116,666

17,112

(1,062)

16,050

General and administrative expenses

(195,918)

(61,288)

(31,086)

Impairment losses and provisions, net

(129,824)

14,226

(3,468)

Profit/(loss) for the period

(2,807)

(17,716)

4,187

As at 30 September 2025 (unaudited)

Assets

14,024,923

948,524

4,808,397

Liabilities

13,292,321

3,219,888

762,040

Wholesale

banking

AED '000

Retail

banking

AED '000

Treasury

AED '000

Real

estate

AED '000

Other

AED '000

Nine months ended 30 September 2024

(unaudited)

Net interest income

197,665

34,783

20,600

Net Fee, commission and other operating income

121,994

(936)

3,909

319,659

33,847

24,509

-

149,983

149,983

-

608

608

Total

AED '000

290,606

233,132

523,738

Total

AED '000

194,485

795,190 20,771,519

156

358,032 17,632,437

General and administrative expenses

(168,758)

(99,066)

(15,344)

Impairment losses and provisions, net

(838)

16,963

107

Profit/(loss) for the period

150,063

(48,256)

9,272

(7,667)

- (290,835)

-

- 16,232

142,316

608 254,003

As at 30 September 2024 (unaudited)

Assets

13,595,888

1,009,457

5,122,384

Liabilities

12,351,839

3,397,668

1,635,575

634,105

633,590 20,995,424

421

518,520 17,904,023

26

Fair value of financial instruments

26.1

Fair value of the Group's financial assets and financial liabilities that are measured at fair value on a recurring basis

Some of the Group's financial assets and financial liabilities are measured at fair value at the end of each reporting period.

The fair value of financial assets and financial liabilities are determined as follows:

.

Fair value of all quoted investments measured at fair value through profit or loss and at fair value through other comprehensive income are based on quoted bid prices in an active market;

.

Fair value of all unquoted equity investments and unquoted investment funds measured at fair value through other comprehensive income is mainly based on market approach-based valuation technique using price/book value multiple of trading peers and precedent transactions. These price/book values multiples and precedent transactions are unobservable inputs. Fair value of financial assets at FVTPL is calculated by taking proportionate share of the fair value of its assets (real estate) and liabilities; and price/book values multiples.

.

Fair value of all derivatives is calculated using discounted cash flows. Discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Derivatives are measured using quoted rates and yield curves derived from quoted rates matching maturities of the contracts.

The table below summarises the Group's financial instruments fair value according to fair value hierarchy:

Level 1 Level 2 Level 3

2025

2024

2025 2024

2025

2024

AED '000

AED '000

AED '000 AED '000

AED '000

AED '000

Financial assets at fair value through other comprehensive income

Equity shares

33,607

-

-

Investment fund

-

-

-

14,487

2,703

14,486

1,408

Financial assets at fair value through profit or loss

Equity shares

-

-

Fair value of derivatives financial

assets

-

-

-

1,936

-

10,324

258,006

-

259,463

-

Financial liabilities at fair value through profit or loss

Fair value of derivatives financial

liabilities

-

-

10,375

For level 3 fair valuation measured using price/book value multiple, the higher the unobservable input of price/book value

multiple, the higher is fair value.

The price/book value multiple used in valuation ranges between 0.85X to 1.00X (2024: 0.85X to 1.00X). For level 3 fair valuation of MURJAN measured using proportionate share of the fair value of its assets (real estate) and liabilities, the higher the net asset value, the higher is fair value.

There were no transfers between Level 1, 2 and 3 during the period ended 30 September 2025 and 2024.

Reconciliation of Level 3 fair value measurements of financial assets

2025

2024

AED '000

AED '000

(unaudited)

(unaudited)

Balance at the beginning of the period/year

275,357

270,665

Addition during the period

-

3,672

Total loss in profit or loss

(1,457)

2,096

Total gain in other comprehensive income

1,296

(1,076)

Balance at the closing of the period/year

275,196

275,357

26.1

Fair value of the Group's financial assets and financial liabilities that are measured at fair value on a recurring basis

(continued)

The financial liabilities subsequently measured at fair value are classified as level 2 in the fair value hierarchy. There are no financial liabilities classified as fair value as level 3 in the fair value hierarchy.

All gains and losses included in other comprehensive income relate to FVTOCI (quoted investments or unquoted

investments) held at the end of the period and are reported as changes in 'Investment revaluation reserve'.

26.2

Fair value of financial instruments carried at amortised cost

Except as detailed below, the directors consider that the carrying amounts of financial assets and financial liabilities recognised at amortised cost in the consolidated financial statements approximate their fair values.

Carrying amount

Fair value

2025

2024

2025 2024

AED '000

AED '000

AED '000 AED '000

(unaudited)

(unaudited) (unaudited) (unaudited)

3,404,358

2,824,561

3,458,632 2,813,760

27

Capital management

Regulatory capital

The Bank calculates its Capital Adequacy Ratio in line with guidelines issued by the Central Bank of the UAE. The Group's

regulatory capital position at the end of reporting period under Basel III is as follows:

2025

2024

AED '000

AED '000

(unaudited)

(unaudited)

CET1 capital

AT1 capital

T2 capital

Total capital base

2,319,662 2,340,853

459,125 459,125

194,807 195,206

2,973,594 2,995,184

Credit risk

Market risk

Operational risk

Total risk weighted assets

15,584,533 15,616,448

94,384 188,943

1,153,465 1,102,634

16,832,382 16,908,025

CET1 capital ratio

Tier 1 capital ratio

Total capital ratio

13.78%

16.51%

17.67%

13.84%

16.56%

17.71%

28

Approval of the condensed consolidated financial statements and events after reporting date

The condensed consolidated financial statements were approved by the Board of Directors and authorised for issue on 13

November 2025.

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorization

of these condensed consolidated financial statements.

Glossary of abbreviations

ACADL

Al Caribi Antigua Development Limited

ACDL

Al Caribi Development Limited

AED

United Arab Emirates Dirham

AKPI

Al Khaleejiah Property Investments LLC

ARZAQ

Arzaq Holdings (Private J.S.C.)

AT1

Additional Tier 1

Basel III

Basel III: International regulatory framework for banks

BVI

British Virgin Islands

CBI

Commercial Bank International PSC

CBUAE

the Central Bank of the UAE

CDs

Certificates of Deposit

CDS

Credit Default Swaps

CEO

Chief Executive Officer

CET1

Common Equity Tier 1

DIFC

Dubai International Financial Centre

ECL

Expected Credit Losses

EIR

Effective Interest Rate

EPS

Earnings Per Share

EUR

Euro

FVTOCI

Fair Value Through Other Comprehensive Income

FVTPL

Fair Value Through Profit or Loss

GBP

British pound sterling

IAS

International Accounting Standard

IASB

International Accounting Standards Board

IASs

International Accounting Standards

IFB

International Financial Brokerage LLC

IFRIC

International Financial Reporting Interpretations Committee

IFRS

International Financial Reporting Standard

IFRSs

International Financial Reporting Standards

JPY

Japanese yen

LGD

Loss Given Default

LLC

Limited Liability Company

MURJAN

Al Murjan Real Estate LLC

OCI

Other Comprehensive Income

PD

Probability of Default

POCI

Purchased or Originated Credit Impaired

SCA

Securities and Commodities Authority of the UAE

SIC

Standard Interpretations Committee

SICR

Significant Increase in Credit Risk

SPPI

Solely Payments of Principal and Interest on the principal amount outstanding

SPV

Special Purpose Vehicle

T2

Tier 2

the GCC

the Gulf Cooperation Council

the UAE

the United Arab Emirates

the USA

the United States of America

TRE

Takamul Real Estate LLC

USD

United States dollar