Financial Performance – Year Ended 31 December 2018

Presentation to Investors and Analysts

21 February 2019

Disclaimer

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presentation has been prepared by Ahli United Bank B.S.C (the “Bank” or “Group”).

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The information in this presentation and the views reflected therein are those of the Bank and are subject to change without notice. All

information are provided to assist the recipients in the evaluation of the matters described herein. They may be based on subjective

assessments and assumptions and may use one among alternative methodologies that produce different results and, to the extent that

they are based on historical information, they should not be relied upon as an accurate predictions of future performance. These

materials are not intended to provide the basis for any recommendation that any investor should subscribe for or purchase any

securities.

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Past performance is not indicative of future results. The Bank is under no obligation to update or keep current information contained

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assume any obligation to update its view of such risk and uncertainties or to publicly announce the results of any revision to the

forward-looking statements made herein.

1

Agenda

1. Financial Performance – Year Ended 31 December 2018

2. Q&A Session

2

Financial Highlights

Diversified Business Model Underpinning Earnings Growth

618.7

697.5

550

600

650

700

750

2017 2018

Annual NPAT (US$ MM)

+12.7%

150.0

169.3

100

150

200

Q4 2017 Q4 2018

NPAT - Q4 (US$ MM)

+12.8%

1,119.4

1,210.6

1,050

1,100

1,150

1,200

1,250

2017 2018

Annual Operating Income (US$ MM)

+8.1%

294.2

303.5

280

290

300

310

Q4 2017 Q4 2018

Operating Income - Q4 (US$ MM)

+3.1%

3

Operating Performance

Core Earnings Growth Sustained - Effective Balance Sheet Management

876.5

940.5

800

850

900

950

2017 2018

Net Interest Income (US$ MM)

+7.3%

2.79%

2.88%

2.5%

3.0%

2017 2018

Net Interest Margin %

+0.09%

4

Key Performance Indicators

Financial Indicators KPIs FY 2017 FY 2018 Direction

Return on Average Tangible Equity (ROATE) 19.0% 20.9%

Return on Average Assets (ROAA) 2.1% 2.2%

C/I Ratio 28.8% 27.1%

EPS (US Cents) 7.4* 8.3

Cost of Risk 0.26% 0.24% Positive

Gross NPL Ratio 1.9% 1.9% Stable

SP Coverage Ratio 85.1% 85.5%

Total Provision Coverage Ratio 154.3% 214.7%

Total Capital Adequacy Ratio 17.0% 16.9% Solid

CET 1 Ratio 13.2% 13.3% Solid

Tier 1 Ratio 15.2% 15.2% Solid

* EPS adjusted for bonus share issue of 5%

Solid / Enhanced KPIs 5

Income Statement

US$ MM 31 Dec 17 31 Dec 18 Var %

Net Interest Income 876.5 940.5 7.3%

Fees and Commissions 131.8 128.9 (2.2%)

Trading Income 35.2 39.1 11.1%

Investment Income and Others 75.9 102.0 34.4%

Operating Income 1,119.4 1,210.5 8.1%

Provision for Credit Losses (89.0) (86.2) (3.1%)

Net Operating Income 1,030.4 1,124.3 9.1%

Operating Expenses (322.9) (328.2) 1.6%

Tax expense (41.0) (43.8) 6.8%

NPAT Attributable to Non-Controlling Interests (47.8) (54.8) 14.6%

NPAT Attributable to the Owners of the Bank 618.7 697.5 12.7%

Core Earnings Growth 6

Balance Sheet

US$ MM 31 Dec 17 31 Dec 18 Var %

Loans and Advances 19,498.7 19,504.0 0.03%

Non-Trading Investments 6,002.4 7,568.5 26.1%

Total Assets 33,241.9 35,507.6 6.8%

Deposits from Banks 3,943.2 3,752.8 (4.8%)

Borrowings Under Repos 1,272.8 1,832.1 43.9%

Customers' Deposits 22,009.9 23,660.0 7.5%

Total Deposits 27,225.9 29,244.9 7.4%

Shareholders' Equity 3,815.6 3,908.7 2.4%

Prudent Growth 7

Balance Sheet

Customer Focused Prudent & Diversified Growth

32,368.3

34,849.4

27,000

30,000

33,000

36,000

2017 2018

Average Total Assets (US$ MM)

+7.7%

5,557.1

6,285.3

2,000

4,000

6,000

8,000

2017 2018

Average Non-Trading Investments (US$ MM)

+13.1%

22,212.5

23,896.7

20,000

22,000

24,000

2017 2018

Average Customers' Deposits (US$ MM)

+7.6%

19,281.6

20,034.3

18,000

18,500

19,000

19,500

20,000

20,500

2017 2018

Average Loans & Advances (US$ MM)

+3.9%

8

Appendix I – Profitability Trends

Sustained Growth Trajectory

482.5

537.2 570.6

618.7

697.5

1.6% 1.7% 1.8% 2.1% 2.2%

19.3% 19.2%

18.6% 19.0%

20.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

100

200

300

400

500

600

700

800

2014 2015 2016 2017 2018

NPAT (US$ MM) ROAA % ROATE %

9

Appendix II – Operating Trends

Solid Operating Parameters

1,041 1,092 1,145

1,119

1,211

886 919

987 1,030

1,124

29.2% 28.3% 27.6% 28.8% 27.1%

8.6%

7.0% 6.9% 5.8% 5.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0

200

400

600

800

1,000

1,200

1,400

2014 2015 2016 2017 2018

Gross Operating Income (US$ MM) Net Operating Income (US$ MM)

C/I Ratio % Effective Tax Rate %

10

Appendix III – Capital Adequacy

Optimal & Diversified

2,923 3,369 3,349

3,652 3,826

407 574 564

560

927

612 543 514

499

3,850

4,388 4,466 4,730

4,885

15.5%

16.7% 17.1% 17.0% 16.9%

12.0% 12.5% 12.5% 12.5% 12.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2014 2015 2016 2017 2018

CET1 (US$ MM) AT1 (US$ MM) Tier2 (US$ MM) CAR % Min CAR%

11

Appendix IV – Asset Quality

Sustained Asset Quality & Robust Coverage

2.0%

1.8%

2.3%

1.9% 1.9%

83.8% 84.6% 84.9% 85.1% 85.5%

159.4%

181.9%

155.6% 154.3%

214.7%

50.0%

70.0%

90.0%

110.0%

130.0%

150.0%

170.0%

190.0%

210.0%

230.0%

0.0%

0.3%

0.5%

0.8%

1.0%

1.3%

1.5%

1.8%

2.0%

2.3%

2.5%

2014 2015 2016 2017 2018

NPL / Gross Loans SP Coverage Total Coverage

12

Q&A Session

13