Investor Presentation June 2020

Contents• Bank Muscat Introduction

• Operating Environment

• Bank Muscat Business - Overview

• Financial Performance

• Annexures

2Note: The financial information is updated as of 30th June 2020, unless stated otherwise.

3

Bank Muscat Introduction

18-Aug-204

Bank Muscat at a glanceOverview

#1 Bank in Oman with a significant active customer base with over 2million clients and a workforce of 3,821 employees as of 30th June 2020.

Established in 1982, headquartered in Muscat with 170 branches acrossOman, 2 branches overseas, and 3 representative offices Fully diversified commercial bank offering corporate and retail banking

services Primarily domestic dominated operations with over 95% of operating

income generated in Oman Meethaq – pioneer of Islamic Banking services in Oman, officially

launched in January 2013 with full fledged product and servicesoffering

Listed on the Muscat Securities Market (with a market cap of USD 2,870million as of 30th June 2020), London Stock Exchange & Bahrain StockExchange

Key Financials

Royal Court Affairs, 23.63

Dubai Financial Group LLC, 11.77

Jabreen International 

Development, 9.99

Civil Service Pension Fund, 7.80

Ministry of Defence Pension Fund, 6.49

Public Authority for Social Insurance, 

5.13

Others, 35.19

In US$ Millions, unless otherwise stated June' 20 2019 2018 2017

Total Assets 32,360 31,925 31,917 28,959

Gross Loans 24,231 23,875 24,073 22,484

Deposits 22,239 20,894 21,981 19,271

Operating Income 585 1,227 1,160 1,132

Net Profit 181 482 467 459

Tier 1 18.74% 18.78% 17.98% 16.87%

Total CAR 19.76% 19.72% 19.22% 18.45%

Loans to Deposit Ratio 104.65% 110.37% 105.63% 112.26%NPL Ratio 3.65% 3.25% 3.09% 2.94%

Cost/Income 41.75% 41.50% 42.61% 42.22%

ROA 1.12% 1.51% 1.53% 1.61%

ROE 7.78% 10.73% 10.88% 11.44%

Major Shareholders as of June 2020

Bank Muscat Foot Steps

18-Aug-205

Bank Muscat – Key Highlights

Management

Largest Bank in Oman by total assets of 35.6%, as of 31st May 2020, around the size of next 3 Omani banks combined.

Market Capitalisation of USD 2,870 million as at 30th June 2020

Largest branch network with 170 domestic branches The only bank in Oman to be designated a “D-SIB”

Strong Financial Metrics

Stable Operating Environment

Highest Government Ownership

Dominant Franchise in Oman

Highest Government Ownership among Omani Banks Royal Court Affairs: 23.63%

Significant direct and indirect Government ownership through various entities.

Stable and consistent financial performance Solid topline income growth Stable cost-to-income ratio despite business

and infrastructure expansion Strong and sustainable profitability metrics: Operating income 2015-2019 CAGR of 3.7% Net profit 2015-2019 CAGR of 1.4%

Stable banking sector Prudential regulatory environment

Stable political system in the Oman with excellent diplomatic relationship in the region

Economic growth in Oman supported by increase in hydrocarbon production, strengthening and growing local demand, and disciplined fiscal policy measures

Stable and experienced management with proven track record of successful organic and inorganic growth

Good corporate governance

Solid Capital Position

Strong capitalization levels offering room for substantial growth

CAR of 19.76% as of 30th June 2020

Stable Asset Quality

Conservative lending approach Strong risk architecture and policies Adequate asset quality metrics

6

Operating Environment

18-Aug-207

Sultanate of Oman - OverviewOverview

Gov’t Investment Expenditure GDP Composition as of March 2020

(1) Source: National Center for Statistics (July ’20), Rating Reports: Moody’s and S&P as of Apr 2020

Oman

SaudiArabia

UAEQatar

Bahrain

Kuwait

Note: Investment expenditure includes Civil Ministries development & Capital expenditure, Oil & Gas production

2nd Largest country in the GCC with an area covering approx. 309.5 thousand km2,strategically located, sharing borders with Saudi Arabia, & UAE.

Stable Political System, excellent diplomatic relations in the region Oman explicitly aims to create a neo-liberal free market economy, where the private

sector is the driver of the economy as opposed to the state Population of 4.51mn as of July 2020 - predominantly represented by Omani Nationals

who account for 60.4% of the total population The economy will continue to grow with the following drivers: The increase in hydrocarbon production The Government’s balanced support for the economy with disciplined fiscal policy

measures Strengthening and growing local demand; increasing services and activities

contribution to GDP Govt. initiated a dedicated program called “Tanfeedh” to focus on economic

diversification through focus on key sectors in phase 1 viz. manufacturing, logisticsand tourism

Petroleum Activities, 33.15%

Manufacturing & Mining, 8.23%

Const., Elec. & Water supply,

6.85%Wholesale & retail

trade, 6.39%Hotels &

Restaurants, 1.08%

Transport, storage & communication,

5.06%

Financial Intermediation,

6.42%

Real Estate Services, 4.40%

Public admin & defence, 11.67%

Other services Incl Agri, Fishing & Base Chemicals, 16.75%

8,610 7,605 

6,896 7,501 

6,070 

1,312 

 ‐ 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

 10,000

2015 2016 2017 2018 2019 Apr' 20

Investment Expenditure in USD Mn

Key Indicators (1) 2019 2020Sovereign Ratings Moody's\S&P Ba1/BB Ba3/BB-Budget Surplus\Deficit in OMR -2.65 Bn (Dec '19) 0.18 Bn (Apr '20)Surplus\Deficit % of total revenue -25% (Dec '19) Est. '-23% (Dec '20)

Net Public Debt (% GDP) 53%-55% Est 55%-60%

8

Oman Macro Overview Oman’s economy has been some extend resilient to strong headwinds in spite of

low oil prices in the past 5 years.

However, current pandemic situation coupled with further pressure on oil prices hasincreased the stress level of the government’s fiscal position.

Government has been taking major steps towards economic diversification andspecific relief measures to support the economy:

Tanfeedh initiatives, Duqum developments, number of large projects incertain sectors including oil & gas, infrastructure, tourism and so on.

Introduction of or revising key legislations with regard to foreign investments,Public Private Partnership, Bankruptcy law, Banking law, Tax laws,Commercial Companies law etc.

Key framework for Vision 2040 to navigate the economy in the long term.

Short terms measures include job sector reforms initiated, Job Security Fundestablished, prioritization of Govt. capital expenditure, key developmentprojects worth RO 300 million, rationalizing current and administrativeexpenditure of various ministries and government entities.

Announced number of relief measures to support the economy andbusinesses in the near term which include tariff reduction or waiver, deferralinstalments and others.

Local and international borrowings by sovereign and government entities to addressthe fiscal deficit.

According to IMF, due to the outbreak of the COVID-19, GDP growth is expected tofall to -2.8% in 2020 and pick up to 3% in 2021.

Source: Real GDP growth rate & Public Deficit forecast as per IMF reports as of Apr’ 20

69,740 

66,205 

70,504 

79,171 

76,039 

0.0%

‐5.1%

6.5%

12.3%

‐4.0%‐6.0%

‐4.0%

‐2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

 55,000

 60,000

 65,000

 70,000

 75,000

 80,000

 85,000

2015 2016 2017 2018 2019

GDP Growth

In USD Millions Real GDP Growth

12,029 

14,301 

9,764 

6,881  6,891 

17%

22%

14%

9% 9%

0%

5%

10%

15%

20%

25%

 ‐

 2,000

 4,000

 6,000

 8,000

 10,000

 12,000

 14,000

 16,000

2015 2016 2017 2018 2019

Public Deficit

In USD Millions % of GDP

18-Aug-209

Oman Banking Sector - OverviewOverview The Omani banking sector comprises of 7 local banks, 2 specialized

banks, 9 foreign commercial banks and two full fledged Islamic Banks

The top 3 banks after bank muscat contribute around 35.7% of totalsector assets. bank muscat represents 35.6% of total banking sectorassets as of May 2020

Conservative and Prudent Regulator

A number of regulations and caps in place to support the growth,stability and sustainability of the Omani banking sector

Adequate asset quality with relatively low impaired assets and soundcapitalization

Implemented Basel 3 regulation with effect from Jan 2014

Loans and Deposit Growth Gross Loan: +6.1%Deposits: +4.2%

US$ billion

Oman in the GCC banking sector context(1) Asset Quality(2)

(2) Source: Central Banks: Kuwait & KSA as of Jun’ 20. Oman, Bahrain, & Qatar as of May’ 20. UAE as of Mar’ 20.(1) GDP data is actual for FY 2019 (Source: World Bank,

National Central Banks)

50.8 59.7 

65.1  67.1  68.9 

47.2 54.5 

59.2  61.4  62.5 

2016 2017 2018 2019  May 2020

Gross loan Deposits

852757

428

234 21093

421

793

184 13439 76

202%

95%

232%

175%

539%

123%

0%

100%

200%

300%

400%

500%

600%

0

200

400

600

800

1000

UAE Saudi Arabia Qatar Kuwait Bahrain Oman

Assets as a % of GDP

Total Assets in $ Bn GDP in $ Bn Assets as a % of GDP

852 757 428 234 21093

5.6%

1.8%1.9%

1.6%

4.8%

1.9%

‐3.0%

2.0%

7.0%

12.0%

UAE Saudi Arabia Qatar Kuwait Bahrain OmanTotal Assets NPL/ GLs

Amounts in USD Bn

10

Banking Sector Overview Cont’d…

Banking sector has performed relatively well in the last few years in spite of lower oil prices and challenging economicsituation.

However, in the current year, sector performance has come under pressure due to uncertainty arising from the pandemic.

Central Bank of Oman (CBO) has been taking number of measures to support the economy and banking sector. Keymeasures include;

Loan installment deferral package offered to impacted businesses and individual borrowers

Waiver of interest in cases of job loss / salary reduction.

Waiver of certain fees for businesses and individuals

Relaxation in risk classification on availing deferral package

Additional liquidity support provided at concessional rates to banks

Lending ratio limit relaxed providing scope for additional lending

Capital stimulus by reducing regulatory limits. Prudential filter on IFRS 9 ECL introduced

Banks in Oman are well positioned with good capital and liquidity level with these measures.

18-Aug-2011

Bank Muscat – Unrivalled leading Market Position in OmanTotal Assets (USD Mn) Gross Loans (USD Mn)

Deposits (USD Mn) Net Profit (USD Mn)

6,486

8,226

6,239

9,309

9,579

10,680

32,361

Ahli Bank

Oman Arab Bank

HSBC Bank Oman

Sohar International

National Bank of Oman

Bank Dhofar

Bank Muscat

4,044

6,940

5,709

6,639

7,675

8,655

24,231

HSBC Bank Oman

Oman Arab Bank

Ahli Bank

Sohar International

National Bank of Oman

Bank Dhofar

Bank Muscat

4,260

5,821

6,704

4,971

6,834

7,273

22,239

Ahli Bank

Sohar International

Oman Arab Bank

HSBC Bank Oman

National Bank of Oman

Bank Dhofar

Bank Muscat

32

27

34

‐8

41

39

181

Ahli Bank

Oman Arab Bank

Sohar International

HSBC Oman

Bank Dhofar

National Bank of Oman

Bank Muscat

18-Aug-2012

Bank Muscat – Dominant domestic franchise in the region

Market Share ‐ Assets Market Share – Deposits

Asset Quality Strong Capitalization

9.2%22.2% 27.7%

18.8%35.6% 41.2%

62.4%

CBQ ENBD FAB NCB BM NBK QNB

5.0%

2.0% 1.7%3.6% 3.9%

1.8%

5.8%

90.0%

100.0%

140.0%

126.2%

91.0%

185.5%

116.9%

0.0%20.0%40.0%60.0%80.0%100.0%120.0%140.0%160.0%180.0%200.0%

CBQ QNB NCB BM FAB NBK ENBDNPL/GL LLR/NPL

7.5%

28.2% 31.7%20.4%

39.3% 35.4%

69.1%

CBQ ENBD FAB NCB NBK BM QNB

17.3%

17.3% 15.2% 16.0%18.7%

14.9% 15.0%

1.0% 1.2% 1.2% 0.9%

1.0%

1.9% 2.3%

QNB ENBD FAB NCB BM NBK CBQTier 1 Tier 2

13

Bank Muscat Business Overview

Banks Vision & Strategic Pillars

Customer Centricity

Efficiency &Productivity

Agility & Innovation

MarketLeadership

To serve you better, everyday.Leading in everything we do by offering simplified & integrated banking solutions.

14

Bank Muscat Brand value Customer convenience, High Service Quality and Customer centric approach

through “To Serve you better, everyday” philosophy Leading financial services provider with largest branch network & innovative

product and service offering Technology driven with multiple digital channels for sales and services Dominant position size & proven resilience

Strong Financial position Strong financial position, Business capabilities & Shareholding Strong Capital and Liquidity Lending Power / Single Borrower size Strong Profitability coupled with conservative credit provisioning policies Market share leadership in loans and deposit.

Human Resource strength Capable Management Talented and Young workforce

Current Situation and Strategy

Security

15

“Safety, Security and Sustainability”

Health Risk The Bank has been managing the current situation with a well planned approach. Focus has been to support customers with number of measures while providing safe and secure working

environment to our employees

Liquidity Risk Very strong liquidity position to ensure long-term sustainability Continue to focus on stable deposit growth

Capital Position Continue to have a highest capital adequacy ratio Capital mix is driven by strong core equity ratio

Credit Risk Continue to follow a conservative and prudent credit policy Prudent provision policy and good level of provision coverage

16

Bank Muscat Business LinesKey Highlights Asset

ContributionProfit

Contribution

Corporate Banking

Leading Corporate Bank Franchise offeringthe full array of corporate bankingservices

~ 7,200 corporate customers in Oman Strong expertise in project finance

USD 11.63 bn

36% of total assets

USD 76.36 mn

42% of total profit

Wholesale Banking

Comprise of treasury, corporate finance,asset management and financialinstitutions

USD 6.98 bn

22% of total assets

USD 46.49 mn

26% of total profit

PersonalBanking

Leading Retail Bank platform in Oman Over 2 million retail customers in Oman Largest distribution network (149

conventional branches)

USD 8.72 bn

27% of total assets

USD 65.19 mn

36% of total profit

Meethaq –Islamic Banking

RO 120 mn (c.US$ 311 mn) capitalassigned to this business

Officially launched in January 2013,currently operating through 21 full fledgedIslamic branches.

USD 3.81 bn

12% of total assets

USD 10.38 mn

6% of total profit

International Operations

Presence in Saudi Arabia & Kuwaitthrough a branch network, and 3 Repoffices across Asia.

USD 1.19 bn

4% of total assets

USD -18.18 mn

-10% of total profit

Import Trade3.5%

Export Trade0.3%

Wholesale & Retail Trade

1.9%

Mining & Quarrying 6.9%

Construction3.8%

Manufacturing7.7%

Electricity, gas and water 7.9%

Transport and Communication

8.5%Financial 

Institutions 4.3%Services 8.9%

Personal Loans24.7%

Agriculture and Allied Activities

0.2%

Government0.4%

Real Estate 3.2%

All Others 0.9%

Housing Loans15.9%

Non‐Resident Lending 0.8%

Loans by sector:

Deposits by segment:

0.24%

43.90%

30.67%

25.19%Financial Institutions

Individual & Others

Ministries & Other GovOrginisations

Private Commercial

18-Aug-2017

Corporate Banking Amounts in USD mn.

Overview Opportunities Strategy Leading Corporate Banking Franchise

Extensive and expanding range of products and services

Strong project finance capabilities

Large corporate client portfolio with c.7,200 customers and lead bank for top tier Omani corporate entities

High level of sophistication differentiated through technology led investments

Commitment to maintain strong control over asset quality

Large number of infrastructure/ Industrial projects in the pipeline

Privatisation and diversification drive by Government

Increasing business flows between Oman and regional countries

Leverage on leading position and expertise

Reinforce presence in Oman across all segments in the value chain

Benefit from large infrastructure and industrial projects in Oman

Focus fee income generating business

Transaction banking business to enhance fee income

Explore cross sell opportunities among business lines

Utilize presence in regional markets

Grow GCC trade flows share

Corporate Loans- Peer comparison

Asset Growth Operating IncomeUS$ billion

14.51

5.384.14 4.30

2.803.81 4.26

Bank

Muscat

Bank

 Dho

far

NBO

Soha

rInternationa

l

HSB

C Oman

Ahli Ba

nk

Oman

 Arab

Bank

10,27310,623

10,846

11,59611,232

11,636

2015 2016 2017 2018 2019 Jun' 20

Total Assets

297 319 343 373 377

191

2015 2016 2017 2018 2019 Jun' 20

Operating Income

18-Aug-2018

Wholesale Banking – Global Financial Institutions, Investment Banking & Treasury

Amounts in USD mn.

Overview Opportunities Strategy Treasury: funding, asset and liability

management requirements, offer structured solutions to corporate clients

Corporate Finance: Leader in corporate advisory: series of successful transactions and track record outside Oman

Financial Institutions: trade, DCM and correspondent banking services

Asset Management: Largest Omani mutual fund manager with potential for growth & expanding outside Oman. Investment solutions for high net worth individuals

Significant cross-sell opportunities to other wholesale banking clients

Leverage transaction experience in attracting new corporate finance mandates

Leverage regional expansion to introduce new products

Strong growth potential in the high net worth market segment

Strengthen Bank Muscat’s leading position in specialised areas

Utilize the presence in regional markets to expand business

Leverage specialised product expertise in other markets

Leverage on expertise built to further grow the market share and increase the market potential

Securities Portfolio Asset Growth Operating Income

5,269 5,169

6,678 6,657 6,974

2016 2017 2018 2019 Jun' 20

Total Assets

156 162 172193

71

2016 2017 2018 2019 Jun' 20

Operating Income

18-Aug-2019

Personal BankingAmounts in USD mn.

Overview Opportunities Strategy Leading Personal Banking Franchise in Oman Over 1.90 million customers Front-runner across retail banking segments

including cards, bancassurance and remittances Largest delivery channel network in Oman

(170 branches, 467 ATMs, 128 CDMs, 147 FFMs and the best online platform in Oman)

Substantial low cost retail deposit base Merchant acquiring market share of over 70%

by volume as of July 2020 and leading e-commerce business in Oman

Government spending resulting in job creation

Increase in salaries through various government initiatives

Favorable demographics

Over 45% of the population less than 19 years old

Housing finance

Leveraging on leading presence in the retail segment

Increase penetration and cross sell

Explore new business and product lines

Technology-led product development and service offerings

Enhance process efficiency and customer convenience

Focus on development and utilization of e-delivery channels

Personal Loans- Peer comparison

Asset Growth Operating Income

US$ billion

9.71

3.27 3.54

1.902.68 2.34

1.24

Bank

Muscat

Bank

 Dho

far

NBO

Ahli Ba

nk

Oman

 Arab

Bank

Soha

rInternationa

l

HSB

C Oman

7,514

8,1488,553

8,940 8,742

2016 2017 2018 2019 Jun' 20

Total Assets

497 509 489539

266

2016 2017 2018 2019 Jun' 20

Operating Income

18-Aug-2020

Meethaq – Islamic BankingAmounts in USD mn.

Overview Opportunities Strategy One of the most successful Islamic banking

operation in Oman since 2013

21 dedicated branches become operative throughout the Sultanate

Innovation in product offering and services to create niche

Established Sharia Board comprising of experienced and reputable Sharia scholars

Growth momentum continued since the launch indicating potential in the market

Shari’a governance structure ensures transparent banking

Large network at disposal to leverage business

Awareness drives on Shari’a compliant banking to increase customer base

To be the market leader by far

Full fledged product and service offerings

Increase Meethaq exclusive branch network to an optimum level

Customer Centric approach and transparency

Technology driven customer service delivery within the Shari’a compliance ambit

Financing Portfolio Operating Income

2,2592,566

2,9403,096 3,122

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2016 2017 2018 2019 Jun' 20

6670

79 78

39

0

10

20

30

40

50

60

70

80

90

2016 2017 2018 2019 Jun' 20

21

Financial Performance

22

Financial Highlights – H1 2020 Net Profit of USD 180.67 mn vs. USD 243.24 mn, a decrease of USD 62.59 mn or 25.7% over 2019

Net Interest / Net financing Income at USD 416.88 mn, higher by USD 3.92 mn or 0.95% over 2019

Other income at USD 168.02 mn, lower by USD 27.01 mn or 13.8% lower than 2019, mainly due to subdued businessconditions due to COVID-19 related lockdowns in Q2 2020 and waiver of certain fees due to regulatory measures

Operating expenses at USD 244.23 mn, was lower by 3.2% compared to 2019

Net Impairment on financial assets of USD 125.19 mn, higher by USD 60.25 mn. The increase is mainly due to precautionaryand collective provisions made on a forward looking basis given the emerging stress in economic conditions as a result of theimpact of COVID-19 and continued depression in oil prices.

Operating profit decreased by 4.2% to USD 340.77 mn over 2019.

Net loans decreased by USD 306 mn or 1.3%; reflecting prepayments of certain large exposures in Q4 2019 and also thegeneral macro economic conditions evolving amidst the ongoing pandemic during the year

Customer deposits increased by USD 1,517 mn or 7.3% reflecting trust of customers in the bank

23

Operating Performance & ProfitabilityOverview Net Interest Margins

Resilient operating performance

Stable top line income growth – 5 year CAGR of 3.7%

Stable cost to income ratio with marginal growth in costs

Strong core revenue generation with net interest income and

commission & fees over 90% of total operating income

Increasing focus on top line commission & fee income

Stable net interest margin in spite of increasing cost of funds

Operating Income & Cost to Income Profitability

66% 65% 68% 67% 71%

23% 21% 22% 22% 19%11% 14% 10% 11% 10%

41.8% 42.2% 42.6% 41.5% 41.8%

0%

20%

40%

60%

80%

2016 2017 2018 2019 Jun' 20Net Interest Income Net Commission & fees Other Income Cost to income ratio

3.89%4.18%

4.41% 4.61% 4.51%

1.33%1.61%

1.88% 2.10%2.00%

2.56% 2.57% 2.53% 2.51% 2.51%

0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%

2016 2017 2018 2019 June' 20Yield % Cost % Spread %

459  459  467  482 

181 12.50% 11.44% 10.88% 10.73%

7.78%

1.64% 1.61% 1.53% 1.51% 1.12%‐4.00%

1.00%

6.00%

11.00%

16.00%

21.00%

26.00%

 70

 120

 170

 220

 270

 320

 370

 420

 470

2016 2017 2018 2019 Jun' 20Net Profit RoAE RoAA

Amounts in USD mn.

24

Asset QualityOverview Loan Growth

Stable loan book growth Conservative lending approach Focus on high quality assets with access to top tier

borrowers

Strong project finance capabilities

Diversified loan portfolio across sectors

Conservative provisioning approach compliance with IFRS 9

Gross Loans by Sector Impaired assets & Provisioning

Import Trade3.5%

Export Trade0.3%

Wholesale & Retail Trade

1.9%

Mining & Quarrying6.9%

Construction3.8%

Manufacturing7.7%

Electricity, gas and water 7.9%

Transport and Communication

8.5%Financial 

Institutions 4.3%Services 8.9%

Personal Loans24.7%

Agriculture and Allied Activities

0.2%

Government0.4%

Real Estate 3.2%

All Others 0.9%

Housing Loans15.9%

Non‐Resident Lending 0.8%

21,484  22,484  24,073  23,875  24,231 

2.91% 2.94% 3.09% 3.24% 3.64%

8.4%

4.7%

7.1%

‐0.8%

1.5%

‐2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

 10,000

 12,000

 14,000

 16,000

 18,000

 20,000

 22,000

 24,000

 26,000

2016 2017 2018 2019 Jun' 20

Gross loans in USD (LHS) NPL% (RHS) Loan Growth % (RHS)

Amounts in USD mn.

815 851 959 987

1,114

624 660 745774

883

130.6%128.9% 128.7%

127.5%

126.2%

120.0%

125.0%

130.0%

135.0%

2016 2017 2018 2019 Jun'20

Credit Provision NPL LLR/NPL

25

Funding & LiquidityOverview Funding Mix

Stable funding structure with a diversified funding base

Largest deposit base in Oman with significant granularity

Retail deposits comprise 44% of total deposits

Top 20 depositors represent 25% of total deposits and comprise of top tier Omani institutions

Strong capitalization levels

Highest CAR in Omani peers and one of strongest in GCC peers

Well capitalised with Total CAR at 19.76% & Tier 1 at 18.74%. Minimum regulatory requirement of 13.25 % and 11.25% respectively.

Liquid Assets Capital Adequacy Ratio

71% 69% 72% 69% 72%

8% 8% 8% 10% 8%15% 17% 16% 17% 16%6% 5% 4% 4% 4%

2016 2017 2018 2019 Jun' 20Deposits Borrowings Equity Others

14.75% 16.87% 17.98% 18.78% 18.74%

2.15%1.58%

1.24%

0.94% 1.02%

16.90%

18.45% 19.22% 19.72% 19.76%

15.00%

16.00%

17.00%

18.00%

19.00%

20.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2016 2017 2018 2019 Jun' 20Tier 1 Ratio Tier 2 Ratio CAR Ratio

1,368 1,538 1,237 2,260 1,574

2,067 2,080 2,5893,023 3,575

2,705  2,428  3,394 2,031  2,390 

21.85% 20.88% 22.62% 22.91% 23.30%

2016 2017 2018 2019 Jun' 20Bank Placements T Bills & GDBs Cash & equivalent Liquid Assets to Total assets

Amounts in USD mn.

18-Aug-2026

Annexures

18-Aug-2027

Balance SheetAmounts in USD Mn 30-Jun-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15Cash and bal. with Central Bank 2,390 2,031 3,394 2,428 2,705 6,265Due from banks 1,575 2,260 1,236 1,538 1,368 2,575Loans and Advances 20,229 20,031 20,334 19,113 18,447 17,391

Islamic financing receivables 3,044 3,029 2,884 2,520 2,221 1,649Non trading investments 4,268 3,753 3,298 2,668 2,748 4,068Tangible fixed assets 185 205 181 187 194 199Other assets (incl. invt in associates) 670 616 590 505 422 436Total assets 32,360 31,925 31,917 28,959 28,104 32,582

Bank deposits/FRNs /Bonds 3,564 4,281 3,588 3,478 3,157 7,924Customer deposits (incl. CDs) 19,574 18,210 19,491 16,778 17,389 17,502Islamic Customer's Deposit 2,665 2,683 2,490 2,493 1,982 1,624Other liabilities 1,447 1,478 1,239 1,087 962 1,034Subordinated debt 51 68 102 315 430 625Convertible bonds 0 0 0 84 167 246Total liabilities 27,300 26,720 26,909 24,236 24,086 28,954

Share capital and premium 2,226 2,184 2,146 2,027 1,911 1,803Total reserves 1,311 1,316 1,276 1,222 1,111 1,007Cumulative changes in fair value -23 -1 -13 44 50 50Retained profits 1,208 1,369 1,261 1,092 945 769Shareholders' equity 4,722 4,868 4,669 4,385 4,017 3,629Perpetual Tier I Capital 338 338 338 338Total liabilities + shareholders' equity 32,360 31,925 31,917 28,959 28,104 32,582

Key ratios

Loans and advances/customer deposits 104.6% 110.4% 105.6% 112.3% 106.7% 99.4%Shareholders' equity/total assets 14.59% 15.25% 14.63% 15.14% 14.29% 11.14%Subordinated debt/(debt + equity) 1.00% 1.28% 2.00% 6.71% 9.66% 14.68%BIS total capital ratio 19.76% 19.72% 19.22% 18.45% 16.90% 16.10%

18-Aug-2028

Profit & Loss StatementAmounts in USD Mn 30-Jun-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15Net interest income 383 756 719 667 651 628

Net income from Islamic financing 34 68 72 64 61 48

Other operating income 168 403 370 402 369 382 Operating income 585 1,227 1,160 1,132 1,081 1,058 Operating costs (244) (509) (494) (478) (452) (444)

341 718 666 654 629 614 Net impairment losses on financial assets (125) (145) (112) (112) (102) (108)Gain/(loss) from associates - - - 6 4 5 Profit before Tax 216 572 554 548 531 511 Taxation (35) (90) (88) (89) (72) (57)Net Profit 181 482 467 459 459 454

Key ratiosCost/income ratio 41.8% 41.5% 42.6% 42.2% 41.8% 42.0%Return on average assets 1.12% 1.5% 1.53% 1.61% 1.64% 1.72%Return on average equity 7.78% 10.7% 10.88% 11.44% 12.50% 13.68%Basic EPS (US$) 0.144 0.156 0.153 0.158 0.166 0.174Share price (US$) 0.873 1.127 1.065 1.023 1.226 1.226