www.shib.sd

In the Name of Allah, The Most Gracious, The Most Merciful

And say, ‘’Do {as you will}, for Allah will see your deeds, and {so, will} His Messenger and the believers. And you

will be returned to the Knower of the unseen and the witnessed, and He will inform your of that

you used to do

Verse 105 (Surat Al-Tawbah)

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To achieve pioneering in Islamic banking by talent – developing of the human being, contributing in achieving the economical and social development, and to provide integrated solutions that satisfy concerned stakeholders.

Our values derived from our faith, traditions and culture: trustiness, honesty and transparency.

We look forward to be at the forefront of banks operating in Sudan to achieve excellence in development and social welfare, and to promote confidence in our dealings internally and externally.

THe MISSION

Our VAlueS

THe VISION

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CONTeNTS:

No. Subject Page1 Directory of HQs, branches and the subsidiary company .............................. 42 geographical spread of branches .................................................................... 53 Board of Directors .......................................................................................... 64 Sharia’a Supervisory Board ............................................................................ 75 Executive Management .................................................................................. 86 Economic Developments in 2015 ................................................................... 11

7 Chairman of Board of Director’s address before the 26th Shareholders’ General Assembly 12

8 Financial Indictors (2013 - 2015) ................................................................... 159 General auditors reports .................................................................................. 1610 Statement of Financial position as at 31/12/2015 .......................................... 1811 Income Statement for the year Ended 31/12/2015 ......................................... 1912 Statement of Cash flows for the year Ended 31/12/2015 ............................... 2013 Statement of Changes in owners’ equity for the year Ended 31/12/2015 ....... 2214 Notes on Financial Statements ....................................................................... 2315 Sharia’a Supervisory Board’s report ............................................................... 3816 Resolutions of the 26th Shareholders’ General Assembly ............................. 3917 Correspondents Network ................................................................................ 40

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Head Quarters’ AddressesElsayed Abdurrahman St. Eastern Khartoum- SudanTel: (+249-183) 779078 – 774728 - 771735 Fax: (+249-183) 784282 – 773585 Swift: (isbssdkh) P.O Box: 10036, Khartoum- Sudan Postal Code: 11111Website: www.shib.sdE-mail: info@shib.sdOperating Branches:

FaxTelBranch(+ 249-183) 795720(+ 249-183) 795721 Tower(+ 249-183) 785098(+ 249-183) 783043Khartoum(+ 249-183) 783925(+ 249-183) 783921Alsouque Alarabi (Kh).(+ 249-183) 472849(+ 249-183) 472837Industrial Area (Kh).(+ 249-183) 460714(+ 249-183) 487958Saggana(+ 249-183) 420182(+ 249-183) 420183Alsouque Almahali(+ 249-183) 722002(+ 249-183) 722002Elkalakla(+ 249-187) 554606(+ 249-187) 553330Omdurman(+ 249-187) 997051(+ 249-187) 454156Souque Shabi Om(+ 249-187) 730514(+ 249-187) 730515Souque Libya(+ 249-185) 331141(+ 249-185) 330582Indus. Area (Kh. North). (+249 -155) 117213(+249- 120) 819296Souque «6»(+ 249-183) 731049(+ 249-183) 731048International University of Africa (+ 249-183) 731563(+ 249-183) 731561Khartoum (2)(+249 - 0441) 843479(+249 - 0441) 843479Gedarif(+ 249 - 0241) 822292(+ 249 -0241) 823839 Dongola(+249 - 0311) 826046(+249 - 0311) 826042 Port- Sudan(+ 249 - 0511) 840445(+ 249- 0511) 840445 Wad Medani(+ 249 - 0571) 824850(+ 249- 0571) 824645 Kosti(+ 249-183) 730148(+ 249-183) 730149Alhafeer(+ 249 - 0611) 843920(+ 249- 0611) 843910Alobaid(+ 249-183) 731620(+ 249-183) 731613Kasla

Subsidiary Companies:Modern International Co.Khartoum – block no.6 property no.4 third floor west to waha of khartoumTel: (+249-183) 785793 Fax: (+249-183) 776026

DIreCTOry Of THe HeAD QuArTer AND BrANCHeS

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A MAp SHOWING GeOGrApHICAl SpreAD Of BrANCHeS

Kosti

Wad Madani

Alobaid

Gadarif

Kasala

Port Sudan

Alhafeer

Dongola

Operating Branches inKhartoum State TowerKhartoumAl Souque AlarabiIndustrial Area (kh)SagganaAl Souque AlmahaliAlkalaklaIndustrial Area (kh. North)OmdurmanSouque shabi (Om).Souque Lybia

Souque «6»International University of Africa Khartoum (2)

Khartoum

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Chairman of the Board of Directors

Mr. Al Bagir yusuf Mudawi

BOArD Of DIreCTOrS

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BOArD MeMBerS:

1- Mr. Ahmed Ali Ahmed Alhussain. 2- Mr. Badr El Dien Salih Abdul Rady Hassan.3- Mr. Abdullah Idrees Fadul Idrees.4- Mr. Suleiman Mohamed Ahmed Mohamed5- Dr. Abdul Rahiem Mohamed Bakhiet6- Eng. Ibrahim Musa Al- Khalifa.7- Mr. Mohamed Yahiya Mohamed El Jaldi 8- Mr Ali saeed Ahmed kambal.9- Mr. Mahmood salah Rashid.

Secretary of the Board of Directors:Mr. Mohamed Bushra Khalafalla

Sharia Supervisory Board: 1 - Dr. Mohammed Alfatih Hamid Chairman2 - Dr. Ahmed Ibrahim Hamad Alturabi Member3 - Dr. Abdel Wahid Osman Mustafa Member4 - Dr. Saber Abass Mohamed Abu Degin Reporter

legal Advisor:Mr. Mutasim Hassan Mahgoob Mohamed.

Auditor:Messrs: the National Audit Chamber

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exeCuTIVe MANAGeMeNT

GeNerAl MANAGer

Mr. Hassan Mohamed Al-Hassan el-amien

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Deputy General Manager

Mr. Abdulbaqi Dafa Allah El-amien

General Manager’s Assistants

Mr. Abdullah Noureddin Ahmed Mohamed G M A For administration, Researches and planning

Mr. Kamal El-Sheikh Al-Tayeb Mohamed G M A For Investment ,

banking affairs and IT

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DepArTMeNTS MANAGerS:

BrANCHeS MANAGerS:

1- Mr. Hassan Mahmood Ahmed Abd El-Ghafar Legal Affairs 2- Mr. Ghazi Abdel Hay Bin Oaf Abd El-rahiem Investment & Finance3- Mr. Salah Said Ahmed Bandi Executive Office4- Mr. Ahmed Abdel Hay Mohamed Ahmed Banking Affairs & Branches 5- Mr. Ali Hassan Hammad El-Hussain Human Resources 6- Mr. Satti Mohammed Satti Hamad Ziyada Information Technology 7- Mr. Mutasim Abdel Aziz Fagier Ahmed Inspection and Internal Control 8- Mr. Osama Ali Ibrahim El-Sadiq Financial Affairs 9- Mr. Mohamed Al-Hussain Ahmed Ja’al Administrative Affairs10- Mr. Osama Eltyeb Elfaki Osman External Relation & Foreign Currency11- Mr. Badr Mohamed Al-Jack Al-Abbas Planning & Researches12- Mr. Ahmed Altaher Seed Ahmed Altaher Training &Quality Control13- Mr Haisar Mahmoud Hussein Ismail Risk Department 14- Mr. Khalid Mohamed Adam Mohamed Marketing & Public Relations15- Mr. Mubarak Mamoon Abd Al-Samad Compliance Officer

1- Mr. A’arif Mohamed Bashir Ali Khartoum2- Mr. Kamal Abd Allah Mohamed Abd El-Qadir Saggana3- Mr. Hider Abd El-Wadood Mohamed Khartoum Industrial Area4- Mr. Osman Sa’ied Haj Noor Tower 5- Mr. Abd El-wahab Mohamed Abd El-Kariem Souque Libya 6- Mr. Abd El-Moniem Ibrahim Al-Sheikh Babikir Indus. Area (Kh. North). 7- Mr. Mutawakil Ahmed Mohamed Ahmed Suhaib Port – Sudan8- Mr. Sir Al-Khatim Hassan Sir Al-Khatim El-Kalakla9- Mr. Osama Mohamed Said Ahmed Alsouque Alarabi (Kh).10- Mr. Salah Mustafa Mohamed Abd El-Kariem Omdurman11- Mr. Salah Eldien Ibrahim Sheikh Ibrahim Wad Madani12- Mr. Mubarak Mohamed Abd El-Gany Babeker Kasala 13- Mr. Mohamed Ahmed Mohamed El-Sheikh Souque “614- Mr. Mamoon Mohamed karar Osman International University of Africa15- Mr. Adam yagoob Omer Souque Shabi Om.16- Mr. Nazar Mohammed Alzain Abdulrahman Alobaid17- Mr. Adil Hussain Hassan El-Fakey Khartoum (2)18- Mr. Ali idrss ali idrss Alsouque Almahali 19- Mr. Noor Eldien Abd El-Haliem Hamed Koasti 20- Mr. Gamer El-Anbia Abd El-Kariem Ali Ahmed Gedarif21- Mr. Abd El-Haliem Bashier Haroon Bashier Dongola22- Mr. Waz Eldeen Ibraheem Abdulrahman Alhafeer

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1/ The World economy Indicators:Growth rate: The world economy growth rate reached 3.1% by the end of the year 2015. It is expected to increase to the rate of 3.2% for the year 2016In the Middle East and North Africa countries it reached 2.5% in the year 2015. It is expected to increase to 3.1% for the year 2016.Inflation Rate: The inflation rate decreased in the developed countries to 1.1% in 2015. And is expected to reach 1% in the year 2016. In the Middle East and North Africa countries it reached 5.7% by the end of the year 2015 and expected to decreased to 5.5% by the end of the year 2016.Saving:Saving levels are expected to increase globally from 25.6% of GDP in the year 2015 to 25.9 % in the year 2016.In Middle East and North Africa countries it expected to increase from 25 % in the year 2015 to 27.1% in the year 2016.unemployment: The unemployment rate in developed countries is expected to decreased to 6.6 % by the end of the year 2016. Instead of 6.9% which it was the rate that achieved in the year 2015. 2/ The Domestic economy Indicators:Growth rate:The GDP is expected to increase from 3.5% in 2015 to 4% by the end of year 2016. Inflation rate:The inflation rate decreased to 12.5% by the end of year 2015. And it expected to reach 12 % in the year 2016. The Money Supply:By the end of the year 2015 the money supply reached 93,643m.SDG compared with 77,739 m. SDG by the end of the year 2014 which increased by a percentage of 20 %.3/ Developments in the Banking environments:Banking Deposits: The deposits of banks in local currency increased from 40,221m.SDG in 2014 to 50,546m.SDG by the end of the year 2015 with an increase percentage of 26%. The foreign currencies deposits decreased from 13,758m.SDG in year 2014 to 13,339m.SDG by the end of the year 2015 with a decrease percentage of 5%.The Bank financing: The balance of bank financing increased from 44,321m.SDG in year 2014 to 53,457m.SDG in year 2015 with a growth percentage amounted to 21%.In the sphere of total bank financing distribution by sectors, the industrial sector 18.2%, constructions 16.8%, agriculture 13.8%, local trade 11.6%, transportation 6.6% and other sectors were of 33%.The Average of Murabaha Profits Margin’s:The average of Murabaha profits margins reached 12.2% and Musharka percentage 34.3% while Murabaha profits margin’s in the banks fluctuated between 6% and 24% during December 2015.

references:-World Economic Outlook.- Central Bank of Sudan, Economic newsletter.-The Periodic Journal of Central Bank of Sudan.

eCONOMIC DeVelOpMeNTS IN 2015

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Praise to Allah Lord of all the worlds, peace and blessings be upon our prophet Mohammed (PBUH), upon his family , kind and immaculate companions and whom followed their pursuit way and traces.The generous brothers/ Al-shamal islamic bank shareholders.The virtuous brothers/ The representatives of the Central Bank of Sudan.The virtuous brother/ The representative of the Khartoum Stock Exchange Market.The virtuous brother/ The representative of the Auditor General of Sudan.The virtuous brother/ The representative of the legal advisor of the bank.The virtuous brother/ The representative Commercial registrar of companies Sudan.The virtuous brother/ The representative of Bank Deposit security fund.The virtuous brothers/The Chairman and members of Sharia’a Supervisory Board.Dear brothers / The Board of Directors members.The honorable gests.The dear brothers / The staff of the bank.

Assalamu alaikum wa rahmatu Allah wa barakatu On behalf of the members of board of directors, it gratifies me to greet you in this blessed evening on the honor of convention of your 26th general assembly, to be all acquainted with the performance of the bank through the year ended on 31/12/2015.Dear brothers:I would like to launch this address with the report of the preventive control requirements according to (CAEL) indicators issued by the Central Bank of Sudan which rated your bank performance on 31December 2015, where it revealed general rating of the bank as satisfactory.The Indicators of preventive control include: 1- Capital: Rating is strong.2- Assets: satisfactory.3-Revenues: satisfactory4- Liquidity: satisfactory.Bank name C A E L Composite rating RatingAl-Shamal Islamic Bank 1 2 2 2 1.75 Satisfactory

The over all rating of your bank is satisfactory.The bank has the following shares in Sudanese banking market:1. Financing 2.17%.2. Assets 1.9%.3. Deposit 2.24%4. Shareholders Equity 1.2%The virtuous brothers: (Then he that will be given his record in his right hand will say:”Ah here! Read ye my record)It gratifies me to show you the most prominent indictor’s which reflect the results of your financial performance of your bank in the year 2015 compared with its performance during the year 2014:

Particulars 2013 2014 2015 2014 2015Total Assets 1.253.852 1.534.332 1.863.486 22% 21%Total Deposits 980.602 1.158.139 1.547.846 18% 34%Total financing 1.014.916 1.109.492 1.389.542 9% 25%Total revenues 120.586 147.186 190.754 22% 30%Total Shareholders Equity 138.586 181.287 169.537 31% (6%)

THe ADDreSS Of Mr./ CHAIrMAN Of BOArD Of DIreCTOrS IN frONTOf THe 26TH GeNerAl ASSeMBly Of SHAreHOlDerS fOr THe fINANCIAl yeAr eNDING ON 31/DeCeMBer/ 2015

Growth rateThousands SDG

Years

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The generous brothers:The growing performance results which have been achieved as consequences of considerable efforts exerted sympathetically to the clear goals aimed to maximize shareholders equity and all stakeholders; we targeted to achieve the following:* Mobilization of financial resources and investing them to get the best results. * Providing excellent banking services and products and to upgrade them in accordance with total quality requirements. * Enhancing human capabilities as a key engine for growth and development processes.* Bank’s commitment to the social responsibility.The virtuous brothers:The total finance and investment reached the sum of 1.389.542 thousands SDG by the end of the year 2015 compared with 1.109.492 thousands SDG by the end of the year 2014 with an increase of 25%. Where various economic sectors have been funded, as follows: local trade 67%, social financing 17%, industrial 9%, Agricultures 5% and export 2%. For modes of finance: Murabaha 38%, Musharka 15%, Mugawala 6%, Salam and other modes 41%.In the field of foreign exchange and relations the total of export reached the sum of 233.634.285 US $ and imports 318.025.872 US $.The virtuous brothers:The bank bring forth a quantum leap in the field of banking technology such as: securing networks against intrusions, software development, establishment of the reserve information center, linking swift and the electronic clearing with the banking system, raise the efficiency of the network introducing ATM and new electronic banking services.In the field of marketing and public relation the bank carried out an intensive marketing campaign during the year 2015. And sponsored some programes on TV channels and radio stations, and also curries out a programes of visits to a number of clients. In its efforts to develop the bank’s work environment it rehabilitated the buliding of some branches like: Alsouque Almahali, Souque Libya, International University of Africa, Alsouque Alarabi (Kh) and Omdurman. To increase the geographical spread it opened Khartoum (2) and Kasala branches.To enhance and build capacities of the HR the bank performed: (15) training courses in its training center (18) workshops and seminars, the bank participated in 72 courses outside its training center, in the field of external training the bank sent 60 participant in various training courses.In the context of its role towards the educational institutions, the bank allowed 174 training opportunities for higher education students.To secure the needs of the bank for workers 22 employees and 12 worker and 5 guards have been appointed, to achieve the job satisfaction the bank raised the salaries and allowances of employees by 30% in january 2015.In the area of researches a number of studies have been prepared and also prepared the accompanying

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action plans for the budget, provided data and information through monthly and annual reports, also it issued the bank’s magazine. In the field of regulatory work the bank executed workshops and seminars in the area of money laundering and terrorism financing and FATCA ACT.Within the framework of it social mission and its importance to the development of society, the bank continues its microfinance policy, and also offered donations and subsidies to health and education sectors, national contribution, worship places by amount of (873.516) SDG.Dear brothers:The board of Directors held a number of meetings, during the year 2015 and it issued its decisions and directives about the topics that discussed during those meetings of which:1/ Its approval for subscription in the authorized capital by amount of 125 million SDG. Which the public has subscribed for it by 56% until to day’s date. Subscription for the reaming shares offered is expected to take place by the end of the deadline. 2/ End of service benefits have been settled for beneficiaries by paying an additional bonus of 40% with a total cost of 89.3 million SDG. So the bank had got rid of a large financial burden that has a negative impact on its performance, so dealing with employees will be in accordance with the social insurance law, as of January 2016.3/ The agreement to freeze the modern international company for investment, and terminated its workers service meanwhile keep its name for the purpose of restructuring it and strengthen its capital.4/ Implementation of an earlier decision of the board of directors to establish new bank branches on land owned by it. the board of directors approved the purchase of lands in areas of Bahri and Alhaj Yusuf market to build new branches, thus the number of lands which owned by the bank will be 7 lands in khartoum state. in other states the bank owned the building of kasala branch and two pieces of lands in Abu Hamad and Alburgeg in northern state in kosti, to build new branches.5/ The board of Directors check out the resolution issued by its following committees:* Board of Directors committee. * Audit and control committee.* Policies committee.* Risk committee.* Tower committee.6/ The council reassured the quality of performance and institutional discipline in the bank as a result of activation of regulations. Dear brothers:Finally, I would like to convey the greetings, appreciation and thanks of the board of directors to:All founders and shareholders of the bank for their continuous supports, particularly the major shareholders whom had a deep impact for achieving success. Central bank of Sudan for its prominent role in the success. The Khartoum stock exchange market, the legal advisor of the bank, the commercial registrar of companies, deposit security fund for their efforts which supporting the banking practice in the country. The national audit chamber for expressing their opinion on the financial statements, the sharia’a supervisory board for their efforts to ensure that the bank dealings are in accordance with sharia’a rules. The executive administration for its crucial role in execution and controlling the bank policies. All the bank staff with their different positions for their efforts and devotion that enabled the bank to achieve these results and the distinctive position. All our honorable customers who pumped prominent support to the bank, their proposals and views were of significant impact on improvement and make better for the bank and its products and services.

Assalamu alaikum wa rahmatu Allah wa barakatu

Albagir yusuf MudawiChairman of the Board of Directors

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fINANCIAl INDICTOrS (2013 -2015) (Thousands SDG)

Total Assets

2013

2014

2015

Total Deposits

2013

2014

2015

Total Finance

2013

2014

2015

Owners Equities

2013

2014

2015

Total Income20

13

2014

2015

1.25

3.85

2

1.53

4.33

2

1.86

3.48

6

980.

602

1.15

8.13

9

1.54

7.84

6

1.01

4.91

6

1.10

9.49

2

1.38

9.54

2

120.

683

147.

186

190.

754

138.

586

181.

287

169.

537

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

* Approval of the board of directors report and audited financial statements, legal auditor report and sharia’ a supervisory board’s report for the year ended 31st December 2015. * Authorization of the board of directors to appoint the legal auditor and to determine his fees for the year 2016.

Mohamed Bushra khalafalla Secretary of the Board of directors

reSOluTIONS Of THe 26TH SHAreHOlDerS GeNerAl ASSeMBly HelD ON 22.4.2016

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1/ Abu Dhabi Islamic Bank- Abu Dhabi.2/ Masherq Bank PSC- Dubai.3/ Arab Bank for Investment and foreignTrade- Abu Dhabi.4/ Al Nilein Bank- Abu Dhabi.5/ British Arab Commercial Bank.6/ Al Baraka Turkish Finance House- Istanbul.7/ Banque De Commerce ET De Placements. 8/ Bank Credit Dnepr.9/ Qatar Islamic Bank – Doha10/ Arab Banking Corporation B.S.C. manama11/ Arab Investment Company – Manama.12/ Bahrain Islamic Bank.13/ Saba Islamic Bank- Sana’a.14/ Bank of Beirut- Beirut.15/ Banque Libano-Francaise – Beirut.16/ Faisal Islamic Of Egypt – Cairo.17/ Arab Banking Corporation Egypt- Cairo.18/ Al Rajhi Banking & Investment Corp.19/ National Commercial Bank. jeddah20/ Send Exchange- Abu Dhabi.21/ International Development Exchange- Dubai22/ Arabian Exchange- Dubai

fOreIGN COrreSpONDeNTS