2017 Investor Highlights, presented by Bank ABC During the 2018 AGM.

1. 2017 Investor Highlights
Bank ABC AGM, 25th March 2018

2. 2017 Investor Highlights
Performance improving
Balance sheet strong
Strategy delivering
Dividends
Outlook – cautious optimism
Bank ABC well placed for success
External environment challenging

3. 2017
Challenging External Environment

4. 2017.. Challenging External Environment
GCC,
MENA
Low Oil prices and fiscal deficits in GCC
Significant FX devaluation in Egypt
Continuing Geopolitical risks
Deal volumes reduced
Enhanced risk management practices
and strict adherence to Risk Appetite
USD P&L impacted by FX translation
Europe
and
Americas
Global uncertainty - Brexit / rise of
populist parties; Shifting global trade policy
Low interest rates combined with excess
liquidity
Brazil – early signs of recovery emerging but
still after effects of recession continuing
Tightening Spreads
Higher impairment provisions
Credit
Condition
Under
Pressure
Asset Quality Review function
established
Proactive rating agency management
Credit behavior under close watch
Sovereign downgrades / rating pressures

5. Performance Improving

6. 5.0%
$193M
Performance improving
*normalized for the tax effect of currency hedges,
headline 2017 revenue of $869m (2016, $865m)
2016A 2017A
Revenue*
Net Profit
ROE
7%
815
874
6%
183 193
0.2%
4.8 % 5.0 %

7. Balance sheet strong
91%
2016A 2017A
17.5% 17.7 %
12%
103%** 91 %
17.7%
0.2%
**restated from 111% for purposes of YOY comparison
LCR / NSFR – Above 100%, stable and with comfortable buffers
T1 CAR
Loans/Customer Deposits

8. Other 2017 highlights
2%
Total Assets
Active Balance Sheet Management.
Earning Assets in Loans and
advances grew by +$0.6b / 4%.
Deposits from Banks Deposits from Customers
Bank Actively improving the deposit mix combined with balance
sheet re-categorisation into Banks and Customers (non-banks).
Total Operating Income
TOI increased to $869m from $865m.
OpEx Growth
Cost growth contained, despite
significant investments.
C/I ratio stable.
FX Conditions in 2017 benign
compared to 2016. Also Fair values
on Securities portfolio improved.
Tax Charge
For reasons indicated over
Comprehensive Income Growth
TOI is impacted by certain foreign
currency hedging transactions that
have an offsetting tax impact. On a
normalized basis, YoY TOI grew by
$59m to $874m from $815m / 7%*.
*Note 11 of the financial statements provides detail on the tax effects.

9. Underpinned by Leading
International Regulators
The Group is subject to extensive regulation from a number of global regulators and
benchmarks strongly against international standards
ABC’s Home Regulator
In addition Bank ABC is regulated by various
international regulators and has operating
standards set at the highest level of its
regulatory landscape
ABC’s other International Regulators
United Kingdom
United States
Dubai
Singapore
France
Germany
Italy
The Central Bank of Bahrain is at the forefront of
aligning to international best practices on Bank
health as well as prudent Corporate Governance

10. Dividends

11. Dividend @ 3%
Dividend policy consistent
3% equity = $93.3m
48% net profit – for growth without CAR erosion
Attractive to investors ~ 10% yield

12. Strategy Delivering

13. Strategy Delivering
Client-centric International Bank
New management structure in place
Network expanded – DIFC / Singapore
Capital markets successes
Automation & analytics – CMS/EDW
Growing Primary Markets:
MENA/Brazil
Economic conditions stable / improving
Continuing investments
Underlying performance improving
Digital Retail Roadmap
Neo bank launch
AFS / Fintech
Digital platform in ABC units
Organisational Health
Balance sheet management / Corporate
Treasury
Compliance / Audit (GRA) / IT & Cyber
security

14. Outlook 2018
Cautious Optimism

15. Outlook 2018 - Cautious optimism
MENA / GCC - Oil price stabilized /
but fiscal positions still challenged
Brazil out of recession / growth of
[3%] forecast for 2018 / banking
industry recovering / but political
uncertainty, presidential elections
Global – still strong global growth /
US rates continue to rise / Brexit
transition / but trade barriers rising

16. Bank ABC
Well placed for success

17. Bank ABC – well placed for success
Brand presence strengthening
‘Go to’ bank for clients
Multiple landmark transactions
Awards & Recognition
Strong in league
Key deals

18. Strong Brand
Awards & Recognition 2017
The Banker Magazine
Bank of the year
2017 - Bahrain

19. Strong Brand
Awards & Recognition 2017
Bonds Loans and Sukuk Middle East awards
Financial Institutions Deal of the Year: Warba
Bank $250m Tier 1 Sukuk
Syndicated Loan Deal of the Year: Aluminium
Bahrain US$ 882m Conventional Credit Facility
Sharjah Chamber of Commerce and Industry
One of the top 10 corporations’ in GCC

20. ‘Go to’ bank for clients
Strong in league
2017 MENA league tables for capital markets
demonstrate our strong standing
Rank Bank Total Deals Volume (USD million)
1 10 1,401
1 SCB 10 2,070
2 HSBC 7 1,215
3 FAB 7 823
4 Citi 5 2,848
By number of deals; source: Thomson Reuters | LoanConnector

21. Debt Capital MarketsLoan Syndications
Experienced Team
Islamic
Structuring
Capabilities
Global
Distribution
Secondary Market
Support
Supported by unique capabilities across the platform
^ By number of deals
Established capital markets platform that has arranged a number of key high profile
transactions in the region for corporates, financial institutions and sovereign
Capital Market Credentials
Since 2015, Bank ABC’s has arranged 89 transactions
in the international capital markets, raising over
USD 35 billion for our clients
Top Bookrunner in the loans league table for MENA in 2017*
Top regional Bookrunner in the loans table for MENA in 2016*
Top Bookrunner in the loans league table for MENA in 2015*
Leading MENA loan distribution platform
Distributed over USD 1.5 billion of loan assets in 2017 in the
secondary market
MENA focused JLM with strong distribution capabilities
in GCC, Asia and Europe
Top 10 on the 2017 GCC Bonds & Sukuk (ex-KSA) league
table*
Top 10 on the 2017 MENA Sukuk league table*
JLM and Bookrunner on 26 transaction since 2016

22. Multiple landmark transactions