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INVESTOR’S PRESENTATION

June 2018Based on unaudited figures

Bank Audi Group Head Office in Beirut – Lebanon


CONTENTS

04GROUP

OVERVIEW

10MAIN

DEVELOPMENTPILLARS

14CONSOLIDATED

FINANCIAL STANDING

20MAIN

STRATEGICORIENTATIONS

21SHARE

INFORMATION

23APPENDIX


This presentation has been prepared by Bank Audi s.a.l. (“Bank Audi”); is for informationpurposes only and is intended only for the initial direct recipient hereof. It may not bereproduced or redistributed to any other person. It shall not and does not constitute either anoffer to purchase or buy or a solicitation to purchase or buy or an offer to sell or exchange or asolicitation to sell or exchange any securities of Bank Audi and neither this presentation noranything contained herein shall form the basis of any contract or commitment whatsoever.

Certain statements in this presentation may constitute “forward-looking statements”. Thesestatements appear in a number of places in this presentation and include statementsregarding Bank Audi’s intent, belief or current expectations.

These forward-looking statements can be identified by the use of forward-looking terminologysuch as “believes”, “expects”, “may”, “is expected to”, “will”, “will continue”, “should”,“approximately”, “would be”, “seeks” or “anticipates”; or similar expressions or comparableterminology, or the negatives thereof. Such forward-looking statements are not guarantees offuture performance and involve risks and uncertainties and actual results, performance orachievements of Bank Audi may differ materially from those expressed or implied in theforward-looking statements as a result of various factors. There are many factors which couldaffect Bank Audi’s actual financial results or results of operations and could cause actualresults to differ materially from those in the forward-looking statements. In addition, even ifBank Audi’s results of operations and financial condition and the development of the industryin which it operates are consistent with forward-looking statements contained herein, thoseresults, condition or developments may not be indicative of results or developments insubsequent periods. Bank Audi does not undertake to update any forward-looking statementsmade herein. Past results are not indicative of future performance.

While the information contained in this presentation and document has been prepared ingood faith, no representation or warranty, express or implied, is or will be made and noresponsibility or liability is or will be accepted by Bank Audi or any of its subsidiaries oraffiliates or by any of their respective directors, officers, employees or agents as to or inrelation to the accuracy or completeness thereof or for any loss arising from any use thereofand any and all such liability is expressly disclaimed. This document is not to be relied upon assuch in any manner as legal, tax or investment advice and shall not be used in substitution forthe exercise of independent judgment and each recipient hereof shall be responsible forconducting its own investigation and analysis of the information contained herein. Exceptwhere otherwise indicated, the information provided in this document is based on matters asthey exist as of the date stated or, if no date is stated, as of the date of preparation and not asof any future date, and the information and opinions contained herein are subject to changewithout notice.

DISCLAIMER

None of Bank Audi or any of its subsidiaries or affiliates accepts any obligation to update orotherwise revise any such information to reflect information that subsequently becomesavailable or circumstances existing or changes occurring after the date hereof.

This presentation may not and will not be made directly or indirectly and may not be and willnot be distributed in any jurisdiction in which it is unlawful to make such presentation ordistribution under applicable laws and regulations. Persons whoattend any meeting at which this presentation is used or distributed or who otherwise receivethis presentation are required to make themselves aware of and adhere to any and allrestrictions applicable to them. In particular, this presentation may not be made in, and maynot be and will not be distributed, directly or indirectly, in or into the United States or to anyU.S. Person (as defined in Regulation S under the U.S. Securities Act of 1933, as amended “S”),other than as permitted by Regulation S, or to qualified institutional buyers as defined in andin accordance with Rule 144A under the U.S.

Securities Act of 1933, as amended, and this document is not to be distributed, directly orindirectly, in Canada, Australia or Japan or to any citizen or resident of Canada, Australia orJapan.

This presentation may only be attended by, and this document may only be distributed to,persons in member states of the European Economic Area who are qualified investors withinthe meaning of Article 2(1)(E) of the Prospectus Directive (2003/7/EC) (including anyamendments thereto, including Directive 2010/73/EU, and including any relevantimplementing measure in each relevant member state of the EEA) (“Qualified Investors”) andpersons who (i) are outside the United Kingdom, (ii) who have professional experience inmatters relating to investments, i.e. investment professionals within the meaning of Article19(5) of the Financial Services an Markets Act 2000 (Financial Promotion) Order 2005, asamended (the “Order”), and (c) are high net worth companies, unincorporated associationsand other bodies to whom it may otherwise lawfully be communicated in accordance withArticle 49 (2)(a) to (d) of the Order (all such persons, together with Qualified Investors, beingreferred to as “relevant persons” ).

This presentation must not be acted on or relied on by persons who are not relevant personsand any investment or investment activity to which this presentation relates is available onlyto relevant persons and will be engaged in only with relevant persons.

The information contained herein must be kept strictly confidential and may not bereproduced or redistributed in any format to any person other than the initial direct recipienthereof without the express written approval of Bank Audi.


COUNTRY COMPANY

Lebanon Bank Audi

Lebanon Audi Private Bank

Lebanon Audi Investment Bank

Switzerland Bank Audi (Suisse)

France Bank Audi France

Jordan Bank Audi - Jordan Network

Saudi Arabia Audi Capital

Egypt Bank Audi

UAE Bank Audi

Qatar Bank Audi

Monaco Audi Capital Gestion

Turkey Odea Bank

Iraq Bank Audi – Iraq Network

1962

1967

1974

1975

1979

2004

2006

2006

2007

2007

2010

2012

2016

GROUP OVERVIEW

RANKING BY ASSETS

in Lebanon

in MENA

#1

#20

• Innovation• Transparency• Heritage• Civic Role• Human Capital• Quality

CORPORATE VALUES

CONNECTING CUSTOMERSTO OPPORTUNITIES

• US$ 145 billion of yearly inter-Arab trade turnover in 2017

• US$ 49 billion of yearly Turkish Arab trade turnover in 2017

Main DevelopmentPillarsA Leading Banking Group from the MENA Region


CORPORATE HIGHLIGHTS

Jun-18o.w. Share of

Lebanon

o.w. Share of entities outside

Lebanon

Assets 44,860 66.7% 33.3%

Footings 72,499 48.9% 51.0%

Customers’ deposits 31,320 66.7% 33.3%

Loans to customers 14,572 44.8% 55.2%

AuMs & custody accounts 12,022 34.9% 65.1%

Shareholders’ equity 4,026

Net profits (HI-18) 265.4 64.1% 35.9%

Branches 202

Staff 6,307

FINANCIAL HIGHLIGHTS

• 188 years of banking tradition and experience

• Rated by Moody’s, S&P and Fitch

• First GDR issue in the broad MENA region in 1995

• Wide and well diversified shareholders’ base

• Accessed 17 times international markets through debt

and equity issues

• 87% of university graduates staff of total staff

• Abiding by the Beirut and the London Stock exchanges

regulations

• Applying high corporate governance, compliance and

AML standards

• Implementing since 2013 a formalized ESMS

management system

GROUP OVERVIEWCORPORATE & FINANCIAL HIGHLIGHTS

In US$ million

24.3%

6.6% 4.8%

61.6%

2.7%

27.9% 26.2%

9.7%

26.7%

9.5%

Corporate andCommercial

Banking

Retail Banking Personal Banking Treasury andCapital Markets

Others

Assets and Revenue Breakdown by Business Line (HI-18)Universal Banking Profile

Assets Revenues


CORPORATE & SOCIAL RESPONSIBILITY (CSR) PILLARS

MONITORING

Transaction Screening

E&S Due Diligence

E&S Risk Identification

E&S Action Plans, if required

ESMS OBJECTIVES:Less impacts to the environment & communities

Reduced risks to the bank & our clients

Implementation of an ESMS allows us to assess, mitigate and monitor E&S risks in the Bank’s lending portfolio.

ENVIRONMENTAL & SOCIAL MANAGEMENT SYSTEM (ESMS) IMPLEMENTATION

CORPORATE GOVERNANCEEthical conduct, Compliance, Anti-corruption,Human rights, Environmental & Social Management System (ESMS)

ECONOMIC DEVELOPMENTProduct portfolio, Economic contribution, Indirect economic impacts, Procurement practices, Market presence, Product responsibility, InfrastructureInvestments, Inclusive and sustainable industrialization, Innovation

COMMUNITY DEVELOPMENTLocal community development, Local community support, Local community collaboration, Financial literacy

HUMAN DEVELOPMENTProgressive labor practices; Diversity, inclusion and equal opportunity; Training, education and talent development; External human development

ENVIRONMENTAL PROTECTIONEmissions, Effluents & waste, Energy consumption, Environmental loans,Awareness on resources usage

1

2

3

4

5


BODSTRUCTURE

11 Members 6 Executive directors 5 Independent directors

BODCOMMITTEES

Group Audit Committee Group Risk Committee Remuneration Committee Compliance/ AML /CFT Board Committee Corporate Governance &Nomination CommitteeGroup Executive Committee

MANAGEMENTCOMMITTEES

Asset-Liability CommitteeInvestment CommitteeCredit Committee Information Technology Committee Anti-Money Laundering Committee Disclosure Committee

SET OFCHARTERS

GROUP OVERVIEWGOVERNANCE OF HOLDING BANK

SHAREHOLDING STRUCTURE (30 June 2018)

Shareholders / Groups of Shareholders(Common Shares)

CountryPercentage

Ownership 1

FRH Investment Holding s.a.l. Lebanon 9.65%

Audi Family 2 Lebanon 6.90%

Family of Late Sheikha Suad Hamad Al Saleh Al Homaizi Kuwait 6.04%

Sheikh Dhiab Bin Zayed Al-Nehayan United Arab Emirates 4.97%

Al-Sabah Family 2 Kuwait 4.71%

Investment and Business Holding s.a.l Lebanon 3.61%

Al-Hobayeb Family 2 Kingdom of Saudi Arabia 2.55%

European Bank for Reconstruction and Development - EBRD 2.51%

International Finance Corporation I.F.C 2.50%

Ali Ghassan El Merhebi Family Lebanon 2.35%

Oun Hussein Khashlook Iraq 2.28%

Said El-Khoury Family Lebanon 2.22%

Kel (Cayman) Limited Lebanon 2.15%

Mohammed Bin Dhoheyan Bin Abdul Aziz Al Dhoheyan Kingdom of Saudi Arabia 2.01%

Executives & Employees 3 Lebanon 3.82%

Others 11.74%

Deutsche Bank Trust Company Americas 4 30.00%

Total Shareholding 5 100.00%

Common shares outstanding 399,749,204

More than 1,500 common shareholders (including GDRs holders)

CORPORATE GOVERNANCE

1

2

3

4 Notes to shareholders structure:1. Percentage ownership figures represent Common Shares owned by the named Shareholders and are expressed as a percentage of the total number of

Common Shares issued and outstanding.2. The Audi Family, Al Sabah Family, and Al-Hobayeb Family include the following members of the Board (i) Marc Jean Audi and Sherine Raymond Audi, (ii)

Mariam Nasser Sabah Al Nasser Al Sabah, and (iii) Abdullah Al Hobayeb, respectively.3. Excluding members of the Audi family accounted for in a separate row above.4. Deutsche Bank Trust Company Americas holds Common Shares in its capacity as depositary under the Bank’s GDR Program. 5. In addition to the ownership of Common shares mentioned above, 10.60 % of the Bank’s Common Shares are held through GDRs by each of FRH Investment

Holding s.a.l. (including by its controlling shareholder), The Audi Family, The Family of Late Sheikha Suad H. Al Homaizi, Sheikh Dhiab Bin Zayed Al-Nehayan, and the Al-Hobayeb Family (respectively, 2.30%, 0.92%, 1.81%, 3.13% and 2.44%). Information on GDR ownership is based on self-declarations (pursuant to applicable Lebanese regulations) as GDR ownership is otherwise anonymous to Bank Audi.

5. As at the date hereof, the total number of common shares was 399,749,204. The Bank (and its affiliates) is the custodian of shares and/or GDRs representing 69.34 % of the Bank’s Common Shares.

Corporate Governance Guidelines Chart of Authorities Committees Charters


GROUP OVERVIEWOPERATING ENVIRONMENT IN MAIN MARKETS

LoanGrowth2

Asset Growth2

Deposit Growth2

GDP Growth1

3.6% 12.3% 3.8% 1.5%

23.8% 24.2% 21.4% 4.4%

15.3% 21.2% 21.5% 5.2%

2.9% 3.1% 5.3% 3.2%

LEBANON

TURKEY

EGYPT

MENA

2018 forecasts for real GDP growth

Yearly growth in domestic currency for Turkey and Egypt, and in

US$ terms for MENA (May-18/May-17 or latest available)

Source: IMF, MENA Central Banks

Main DevelopmentPillars

2-

1-

Nominal GDP 2018F (US$ bn)

Population 2018F (million)

Bank Assets * (US$ bn)

54 5 232

910 82 810

249 97 289

3,062 394 3,234

LEBANON

TURKEY

EGYPT

MENA

* May 2018 or latest available


GROUP OVERVIEWBUSINESS SEGMENTATION – THE DIVERSIFICATION TREND

ASSETS LOANS NET PROFITS

1 Including consolidation adjustments Lebanese entities include: Bank Audi Lebanon, AIB, Solifac, Gamma, other Lebanese entities and consolidation adjustmentsPrivate Banking entities include: APB, BAS, Audi Capital Gestion and AC-KSAOther entities include: BAF, other European entities, BAJO, BAQ and BAIQ

Lebanese Universal Bank2004

Regional Universal BankHI-18

In US$ million

By Geography Dec-04 Jun-18 Dec-04 Jun-18 FY-04 HI-18

Vol. Share Vol. Share Vol. Share Vol. Share Vol. Share Vol. Share

Lebanon1 8,762 83.6% 29,899 66.7% 1,715 79.2% 6,526 44.8% 69 96.7% 170 64.1%

Europe 1,555 14.8% 2,740 6.1% 424 19.6% 1,137 7.8% 5 7.6% 12 4.6%

Turkey 7,277 16.2% 4,709 32.3% 39 14.8%

MENA 165 1.6% 4,944 11.0% 27 1.2% 2,201 15.1% -3 -4.3% 44 16.4%

Total 10,481 100% 44,860 100.0% 2,166 100% 14,572 100.0% 72 100.0% 265 100.0%

By DevelopmentPillars

Dec-04 Jun-18 Dec-04 Jun-18 FY-04 HI-18

Vol. Share Vol. Share Vol. Share Vol. Share Vol. Share Vol. Share

Lebanese Entities1 7,248 69.2% 28,415 63.3% 1,246 57.5% 6,399 43.9% 68 94.7% 155 58.5%

Turkey 7,277 16.2% 4,709 32.3% 39 14.8%

Egypt 3,414 7.6% 1,672 11.5% 33 12.3%

Private Banking Entities 2,017 19.2% 3,094 6.9% 616 28.4% 790 5.4% 7 9.3% 30 11.3%

Other Entities 1,216 11.6% 2,659 5.9% 305 14.1% 1,003 6.9% -3 -3.9% 9 3.2%

Total 10,481 100% 44,860 100.0% 2,166 100% 14,572 100.0% 72 100.0% 265 100.0%


In US$ Million

Balance sheet data Dec-17 Jun-18 Change

Assets 29,648 32,512 2,864

Deposits 19,875 19,791 -84

Loans 6,724 6,444 -280

Equity 4,228 4,173 -55

Outstanding LCs + LGs 1,049 827 -222

Branches 86 86 0

Staff 3,238 3,200 -38

Earnings data HI-17 HI-18 Change

Net interest income 239.0 314.0 75.0

+ Non interest income 105.6 67.3 -38.3

= Total income 344.6 381.3 36.6

- General operating expenses 195.1 177.6 -17.5

= Operating profits 149.6 203.7 54.1

- Loan loss provision charge 31.5 8.6 -22.9

- Income tax 22.3 39.9 17.7

= Net profits 95.8 155.2 59.4

+ Results from discontinued operations 95.3 0.0 -95.3

Net profits after discount. operations 191.1 155.2 -35.9

Spread 1.7% 2.1% 0.4%

+ Non interest income / AA 0.7% 0.4% -0.3%

= Asset utilization 2.4% 2.5% 0.1%

X Net Operating margin 27.8% 40.7% 12.9%

o.w. cost to income 56.6% 46.6% -10.0%

o.w. credit cost 9.2% 2.3% -6.9%

o.w. tax cost 6.5% 10.5% 4.0%

= ROAA* 0.7% 1.0% 0.3%

= RORRC* 1 10.6% 16.2% 5.6%

Bank Audi, Audi Investment Bank and Solifac, excluding Audi Private Bank and consolidation adjustments

MAIN DEVELOPMENT PILLARS - LEBANONSTRONG LEADERSHIP IN LEBANON

1 Return on required regulatory capital* Before discontinued operations

CURRENT STATUS

OPPORTUNITY

OUTLOOK

As per IFRS

● One of the best universal banking profile in the country with a wide activitydiversification across corporate and commercial banking, retail and individualbanking, private banking and wealth management as well as investmentbanking and capital market activities

● Dedicated platform of quality products supported by strong technologicaloutreach and permanent pioneering innovations, ensuring a high penetrationacross business segments

● High quality and sophisticated talent pool

● Material Capital Investment Program likely to impact positively growth andemployment

● Early Budget 2018 ratification on the back of cost cutting measures, suggestingimproved fiscal governance

● Successful CEDRE conference in Paris raising US$ 11.5 billion in internationalpledges to Lebanon

● Parliamentary elections completed in May, for the first time in 9 years.

● Implement a cross-selling tool across main business segments to betterrevenues and earnings generation

● Favor improvement in operating conditions over balance sheet growth,through a re-pricing of assets and liabilities terms

● Impose a rigorous control of operating expenses through efficiencyenhancement initiatives

● Tight follow-up on credit quality


MAIN DEVELOPMENT PILLARS - TURKEYTARGETED GROWTH WITH A FOCUS ON FINANCIAL PERFORMANCE

As per IFRS

In TL Million


Assets 32,891 33,202 312

Deposits 23,961 21,491 -2,470

Loans 22,242 21,485 -757

Equity 3,920 3,952 32

Outstanding LCs + LGs 2,264 2,475 211

Branches 47 46 -1

Staff 1,184 1,095 -89



+ Non interest income 110.8 125.6 14.7

= Total income 677.0 699.6 22.6



- Loan loss provision charge 129.5 202.7 73.2

- Income tax 37.9 46.3 8.4

= Net profits 151.6 163.7 12.1

Spread 3.0% 3.6% 0.6%

+ Non interest income / AA 0.6% 0.8% 0.2%


X Net operating margin 22.4% 23.4% 1.0%

o.w. cost to income 52.9% 41.0% -11.9%

o.w. credit cost 19.1% 29.0% 9.8%

o.w. tax cost 5.6% 6.6% 1.0%

= ROAA 0.80% 1.02% 0.2%

X Leverage 10.4 8.3 -2.1

= ROACE 8.3% 8.5% 0.1%

Odeabank

CURRENT STATUS

OPPORTUNITY

OUTLOOK

● A universal bank profile with wide product range covering retail and commercialsegments

● Balanced and targeted growth strategy in line with the adopted consolidationmode in support of improved efficiency, profitability and asset quality

● Solid capital adequacy position above peers with a CET1 ratio of 14.6% and a totalCAR ratio of 20.2%, on the back of prudent risk management

● Self-funded balance sheet structure with limited reliance on wholesale fundingleading to one of the lowest loan to deposit ratios in the sector

● A diversified and growing economy with favorable demographics and strongtrade linkage with traditional European markets

● Resilient domestic demand, strong fiscal buffers and robust foreign demand, yetcoupled with large external deficits weighing on market volatility

● Focus on margin and cost efficiency enhancement boosting bottom line andprofitability metrics

● Pursue a controlled and targeted growth strategy, with a particular emphasis onvalue-added loan growth ensuring good asset quality

● Maintain its self-funded balance sheet structure, strong liquidity profile andstrong capital buffer

● Leverage on the Group’s wide footprint in the MENA region to capture cross-border opportunities and financial synergies on costs and revenues


In EGP Million


Assets 56,189 60,696 4,507

Deposits 46,910 50,265 3,356

Loans 29,396 29,753 357

Equity 5,563 6,090 527

Outstanding LCs + LGs 4,857 5,632 775

Branches 46 46 0

Staff 1,427 1,394 -33


Net interest income 816.4 1,107.9 291.6

+ Non interest income 279.3 290.8 11.5

= Total income 1,095.6 1,398.7 303.1

- General operating expenses 442.6 505.1 62.5


- Loan loss provision charge 79.1 67.1 -12.1

- Income tax 129.5 186.3 56.8

= Net profits 444.5 640.3 195.8

Spread 3.0% 3.6% 0.5%

+ Non interest income / AA 1.0% 0.9% -0.1%


X Net Operating margin 40.6% 45.8% 5.2%

o.w. cost to income 40.4% 36.1% -4.3%

o.w. credit cost 7.2% 4.8% -2.4%

o.w. tax cost 11.8% 13.3% 1.5%

= ROAA 1.6% 2.1% 0.4%

X Leverage 11.1 10.4 -0.7

= ROACE 18.2% 21.3% 3.1%

MAIN DEVELOPMENT PILLARS - EGYPTCONSISTENT PERFORMANCE WITH ENTICING PROSPECTS

Bank Audi sae (Egypt)

CURRENT STATUS

OUTLOOK

OPPORTUNITY

As per Local Standard

● Resilient to successive political transitions since 2011, sustaining solid growth trajectorywith 20% CAGR in assets and 32% in net profits over the 2010 - Jun 18 period

● Sound credit policies focusing on defensive businesses translating into a NPL ratio of1.2% well below the sector

● Efficient and profitable growing bank with an average ROAA and ROACE of 1.7% and20% over the 2010 – Jun 18 period

● Economy moving closer to macroeconomic stability with buoyant outlook

● Market confidence gradually restored

● Exchange market now supported by a record high level of FX reserves

● Fast growing foreign inflows, with rising FDIs, remittances and portfolio inflows

● Build a recognizable and highly regarded brand in Egypt

● New development plan encompassing the expansion of the network and extension ofthe scope of products and services to cover new business segments such as Islamic,mass affluent, mortgages and others


In US$ Million


On-Balance Sheet Assets 3,551 3,034 -517

Total Client Assets 1 11,005 10,863 -143

o.w. AuMs 5,608 5,674 66

o.w. Deposits 2,935 2,492 -443

o.w. Fiduciary Deposits 2,463 2,696 234

Client Loans 968 790 -177

Equity 378 352 -26

Staff 236 232 -4



+ Non interest income 44.8 42.9 -1.9

= Total income 74.7 73.9 -0.8


= Operating profits 38.8 38.2 -0.6

- Loan loss provision charge -1.1 -0.1 1.0

- Income tax 9.6 8.4 -1.2

= Net profits 30.3 29.9 -0.4

Spread (on AA +AAuMs) 0.5% 0.5% 0.0%

+ Non interest income / AA+AAuMs 0.8% 0.7% 0.0%


X Net operating margin 40.6% 40.5% -0.2%

o.w. cost to income 48.1% 48.3% 0.3%

o.w. credit cost -1.5% -0.1% 1.4%

o.w. tax cost 12.8% 11.4% -1.5%

= ROAA+AAuMs 0.5% 0.5% 0.0%

X Leverage 27.0 30.0 3.0

= ROACE 14.2% 15.4% 1.2%

● The Middle East region continues to be second- fasted growing private bankingmarket, trailing only to Asia

● Robust growing wealth pools fostering need for wealth and asset managementservices

● Wealth management industry currently in transition to accommodate increasingregulatory transparency requirements and related cost investment, allowing smallerand more agile institution to gain market shares

MAIN DEVELOPMENT PILLARS – PRIVATE BANKINGSTRONG EXPERTISE & KNOW-HOW

As per IFRS

Audi Private Bank, Banque Audi Suisse, Audi Capital Gestion and Audi Capital KSA

CURRENT STATUS

OPPORTUNITY

STRATEGY

1 Before consolidation adjustments

● Bank Audi Private Bank operates chiefly through Banque Audi Suisse in Switzerland,together with Audi Private Bank in Lebanon and an additional entity in Saudi Arabia

● Fully diversified range offering with access to major markets worldwide and globalinvestment products including discretionary portfolio management, investmentadvisory, trade execution in all asset classes, structuring and management of Saudiand regional funds and other private banking services

● Deep-rooted in the MENA region, Bank Audi Private Bank also covers Sub-SaharanAfrica (AuMs of US$ 1,269 million) and Latin America (US$ 805 million) throughdedicated desks and RMs

● Continue the restructuring and integration of the business line to improve synergiesbetween the different Private Banking entities and increase market share in theMENA region

● Unify legal entities holding structure in an EU jurisdiction to optimize thedeployment of internal resources and maximize the availability of externalresources

● Institutionalize the Private Banking business as the fourth strategic pillar of theGroup, and structural contributor in terms of profitability and market franchise


YOY

In US$ Million HI-17 HI-18 HI-18 / HI-17

Interest income (1)507.4 581.8 74.3 14.6%

Net of new taxes on financial investments 42.6 42.6

Non interest income 228.6 159.2 -69.4 -30.4%

Total income 736.1 741.0 4.9 0.7%

Operating expenses 394.2 338.7 -55.5 -14.1%

Credit expense 71.5 59.7 -11.8 -16.5%

Income tax 57.6 77.3 19.6 34.0%

Total expenses 523.3 475.6 -47.7 -9.1%

Net Profits after tax 212.8 265.4 52.6 24.7%

Results of discontinued oper. 95.3 0.0 -95.3 -100.0%= Profit after tax and discontinued operations 308.1 265.4 -42.7 -13.8%

CONSOLIDATED FINANCIAL STANDING:PERFORMANCE HIGHLIGHTS

ASSETS & FOOTINGS INCOME STATEMENT

YTD

In US$ Million Dec-17 Jun-18 Change %

Primary liquidity 14,932 14,794 -138 -0.9%

Portfolio securities 10,929 13,509 2,579 23.6%

Loans to customers 16,294 14,572 -1,721 -10.6%

Other assets 864 1,242 378 43.7%

Fixed assets 733 743 10 1.3%

Assets= Liabilities 43,752 44,860 1,108 2.5%

Bank deposits 4,522 7,377 2,855 63.1%

Customers’ deposits 33,451 31,320 -2,131 -6.4%

Other liabilities 1,591 2,136 546 34.3%

Shareholders' equity 4,188 4,026 -162 -3.9%

AUMs + fid. dep. + cust. acc. 10,990 12,022 1,032 9.4%

Assets + AUMs 54,742 56,881 2,139 3.9%

1 Includes interest revenues from financial instruments at FVPL


14,713

17,171 17,929 17,21516,294

14,572

2013 2014 2015 2016 2017 HI-18

LOANS TO CUSTOMERS IN US$ MILLION CUSTOMERS’ DEPOSITS IN US$ MILLION

REVENUES & NET EARNINGS IN US$ MILLION EARNINGS PER COMMON SHARE IN US$ KEY PERFORMANCE METRICS

2014 2015 20162016

Norm. 2017 * HI-18

Spread 2.10% 2.13% 2.33% 2.37% 2.39% 2.67%

+ NII / AA 1.31% 1.20% 2.71% 0.98% 1.04% 0.73%

= Asset Utilization 3.41% 3.32% 5.04% 3.34% 3.44% 3.40%* Net operating margin 26.48% 28.95% 21.79% 28.78% 30.74% 35.82%o.w. cost to income 55.08% 53.82% 46.95% 54.36% 51.18% 45.70%

o.w. provisions 10.52% 9.58% 20.45% 9.44% 9.53% 8.06%

o.w. tax cost 7.92% 7.66% 10.81% 20.50% 8.56% 10.43%

=ROAA 0.90% 0.96% 1.10% 0.96% 1.06% 1.22%

* Leverage 13.55 12.96 12.66 12.63 11.62 10.61

=ROAE 12.23% 12.47% 13.91% 12.16% 12.28% 12.94%

ROACE 13.63% 13.69% 14.76% 12.77% 13.41% 14.65%

ASSETS IN US$ MILLION

CONSOLIDATED FINANCIAL STANDING:RESILIENT PERFORMANCE IN TESTING TIMES

36,19141,961 42,270

44,267 43,752 44,860

2013 2014 2015 2016 2017 HI-18

31,095 35,821 35,609 35,95533,451

31,320

2013 2014 2015 2016 2017 HI-18

1,0711,323 1,366

2,333

1,509

741

305 350 403 470559

265

2013 2014 2015 2016 2017 HI-18

Total Revenues Net Earnings

0.800.86 0.92

1.04 1.03

1.20

2013 2014 2015 2016 2017 HI-18

1

1 US$ 1,477 million excluding non recurrent revenues related to exchange transactions with the Central Bank of Lebanon

2 Excluding net profits from discontinued operations

2

* Excluding net profits from discontinued operations


LOANS BREAKDOWN BY ECONOMIC SECTOR LOANS BREAKDOWN BY COLLATERAL

Manufacturing 13.0%

Transportation & communication 2.9%

Consumer loans 20.6%

Contractors 3.6%

Trade 10.5%

Real estate & developers 17.2%

Financial intermediaries 13.3%

Other loans 18.9%

Total 100.0%

NET EXPOSURES BY DEVELOPMENT PILLARS

Turkey 30.2%

Lebanon 39.9%

Egypt 11.9%

Private banking entities 5.2%

Other entities 12.8%

Total 100.0%

LOANS BREAKDOWN BY CURRENCY

LOANS BREAKDOWN BY CUSTOMERS’ TYPE LOANS BREAKDOWN BY MATURITY

CONSOLIDATED FINANCIAL STANDING:LOAN PORTFOLIO BREAKDOWN 32% OF TOTAL ASSETS

Based on country risk

PPROVAL

Cash and bank

guarantee12%

Real estate

mortgage32%Securities

6%Vehicles

3%

Corporate &

Personal guarantee

25%

Unsecured22%

USD45%

TRY16%

EUR14%

EGP9%

LBP13%

JOD2%

OTHER2%

Corporate clients58%

SMEs 13%

Private & personal clients

8%

Retail & consumer clients21%

Short-term facilities, (<1 year)

33%

Medium-term

facilities, (1-3 years)

11%

Long-term facilities, (>3 years)

56%


3.26%

6.22%

1.18%2.25%

6.04%4.12%

Lebaneseentities

Odea Egypt PrivateBanking

Others Total

In US$ Million Lebanese

EntitiesTurkey Egypt

PrivateBanking

OtherEntities

Total

End

-Ju

ne

20

18

Gross DLs 217.7 306.0 20.0 18.2 62.3 624.3

Specific provisions 164.3 134.8 15.9 18.2 42.2 375.4

o.w. Corporate 79.0 104.8 13.6 18.2 31.3 246.9

o.w. Retail 85.3 30.0 2.2 0.0 10.9 128.4

Net doubtful loans 53.5 171.2 4.2 0.0 20.1 249.0

o.w. Corporate 54.9 146.1 2.3 0.0 16.0 219.3

o.w. Retail -1.4 25.1 1.9 0.0 4.1 29.7

Collective provisions 76.3 79.7 15.1 0.8 32.3 204.2

o.w. Corporate 60.8 73.3 13.2 0.8 23.4 171.6

o.w. Retail 15.5 6.4 1.9 0.0 8.9 32.6

In US$ Million Dec-17 Jun-18 ChangeGross DLs 599.9 624.3 24.4

o.w. Corporate 452.9 466.2 13.3

o.w. Retail 147.0 158.1 11.1

Gross SLs 63.9 34.1 -29.8

Net DLs 239.5 249.0 9.4

o.w. Corporate 205.9 219.3 13.4

o.w. Retail 33.7 29.7 -4.0

Specific provisions 360.4 375.4 15.0

o.w. Corporate 247.0 246.9 -0.1

o.w. Retail 113.3 128.4 15.1

Collective provisions 195.6 204.2 8.6

o.w. Corporate 177.3 171.6 -5.7

o.w. Retail 18.3 32.6 14.4

Dec-17 Jun-18 ChangeGross DLs / gross loans 3.51% 4.12% 0.61%

o.w. Corporate 3.33% 3.89% 0.56%

o.w. Retail 4.19% 4.98% 0.78%

Gross SLs / gross loans 0.37% 0.23% -0.15%

Net DLs / gross loans 1.40% 1.64% 0.24%

o.w. Corporate 1.51% 1.83% 0.32%

o.w. Retail 0.96% 0.93% -0.03%

Coverage (specific) 60.07% 60.12% 0.05%

o.w. Corporate 54.54% 52.96% -1.58%

o.w. Retail 77.10% 81.23% 4.14%

Coverage (collective) 1.20% 1.40% 0.20%

o.w. Corporate 1.37% 1.48% 0.12%

o.w. Retail 0.55% 1.08% 0.53%

624600+158

-105+29

Dec-17 Additions Trsf to OBS /Closed

FX effect Mar-18

GROSS DOUBTFUL LOANS MOVEMENT

LOAN LOSS PROVISIONS MOVEMENT IN HI-18

LLP / Revenues Cost of Risk 0.8%8.1%

CONSOLIDATED FINANCIAL STANDING:ASSET QUALITY

59.8

117.5

-9.3

-44.3 -4.1

Specific LLPs Collective LLPs Recoveries Write offs recoveries LLPs

ASSET QUALITY BY ENTITY

SLLPs 75.5% 44.1% 79.1% 100% 67.7% 60.1%

Collective/net loans

1.18% 1.69% 0.91% 0.10% 3.37% 1.40%

1 Covered up to 101% by specific provisions and real guarantees2 Includes collective provisions on funded exposure only, excluding provisions on other assets and off-balance sheet while the excess general provisions was booked in provisions for risk and charges

2

1

Gross DLs / Gross loans


BREAKDOWN OF PLACEMENTS WITH BANKS

BREAKDOWN OF PORTFOLIO SECURITIES BY CURRENCY & TYPE

By Region By Rating US$ Million LL US$ EUR EGP TRY JOD Other TOTAL

Cash & Central Banks 5,458 5,749 804 454 147 51 408 13,072

o.w. Reserves requirements 351 3,232 6 163 135 44 2 3,933

o.w. Cash deposits 5,108 2,517 798 291 12 7 406 9,139

Placement with banks 24 951 492 20 81 30 123 1,722

o.w. Deposits with banks 10 925 477 1 79 30 123 1,644o.w. Loans & reverse repo agreements 14 27 15 20 2 78

Total liquidity 5,483 6,701 1,296 474 228 82 530 14,794

US$ Million LL US$ EUR EGP TRY JOD Other TOTAL

Central Banks certificates of deposits 2,662 4,511 7,172

Treasury Bills & Eurobonds 2,210 801 766 141 406 79 4,404

Risk ceded Lebanese Eurobonds 1,403 1,403

Equity instruments 41 90 4 2 1 3 -1 141

Fixed income instruments 239 150 389

Total portfolio securities 4,913 7,044 4 768 143 409 228 13,509

Liquidity & Portfolio Securities 10,396 13,744 1,300 1,242 371 491 758 28,303

CONSOLIDATED FINANCIAL STANDING:LIQUIDITY & PORTFOLIO SECURITIES (63% of total assets)

LIQUIDITY

PORTFOLIO SECURITIES

Aaa to Aa315%

A1 to A348%

Baa1 to Baa312%

Ba1 to B314%

Below B31%

Unrated10%

G10 Countries

73%MENA14%

Europe13%

Other0%

CB CDs, 53.1%

TBs in LL, 16.4%

Eurobonds in US$, 5.9%

TBs in TRY, 1.0%

TBs in EGP, 5.7%

Bonds in other FCY, 3.6%

Risk ceded leb eurobonds,

10.4%Equity

instruments, 1.0%

Fixed income instruments,

2.9%


US$ Million Dec-17 Jun-18

Risk-weighted assets 25,977 24,619

o.w. Credit risk 22,603 21,770

o.w. Market risk 821 296

o.w. Operational risk 2,553 2,553

Regulatory capital

Core common tier one capital (net of deductions) 2,730 2,724

+ Additional tier one capital 804 801

= Tier one capital 3,534 3,525

+ Tier two capital 864 980

= Total capital 4,398 4,505

Core common tier one ratio 10.5% 11.1%

+ Additional tier one ratio 3.1% 3.3%

= Tier one ratio 13.6% 14.3%

+ Tier two ratio 3.3% 4.0%

= Total ratio 16.9% 18.3%

BASEL III CAPITAL ADEQUACY RATIO EVOLUTION

CONSOLIDATED FINANCIAL STANDING:CAPITALIZATION

At End-June 2018 Turkey Egypt

Tier one ratio 14.1% 13.7%

Tier two ratio 6.1% 4.0%

Total ratio 20.2% 17.6%

ODEABANK & BANK AUDI EGYPT CAR (AS PER LOCAL REGULATIONS)

1 In August 2017, Odea Bank issued a US$300m 10 year 144A/Reg S Subordinated Basel III

Compliant Tier 2 bond which marks Odea Bank’s first issuance in the international capital

markets.

16.9%18.3%+1.0% +0.4%

Dec-17 RWAs CTierI RTierI Tier II Jun-18


• 3 main geographic pillars: Lebanon, Turkey, Egypt.

• Consolidation mode in main markets of presence while maintaining the network ready to capture growth opportunities as soon as they arise.- In Lebanon, reinforce its strong

leadership while increasing the penetration in the corporate and SME segments

- In Egypt, build a resilient and well regarded brand

- In Turkey, establish a well fenced banking platform while improving efficiency and profitability

- Leverage solid expertise in Private Banking by reinforcing synergies across entities in Europe, the Near-East and the GCC

CURRENT STRATEGY

MAIN STRATEGIC ORIENTATIONS:POSITION THE GROUP AS A LEADING MENAT BANK

Main DevelopmentPillars


COMMON EARNINGS PER SHARE

$6.25

$6.95 $7.13 $7.23

$8.09 $7.65

2013 2014 2015 2016 2017 HI-18

42.4%

54.4% 54.3%

45.3%

49.0%

46.9%

38.7%

50.2% 49.9%

42.1%

45.5%

42.6%

2012 2013 2014 2015 2016 2017

Total payout ratio (incl. preferred share dividends)

Total payout ratio on common shares

COMMON BOOK PER SHARE

$0.80 $0.86

$0.92 $1.04 $1.03

$1.20

2013 2014 2015 2016 2017 HI-18

1

COMMON BOOK PER

SHARE

COMMON DIVIDEND PER SHARE

COMMON BOOK PER

SHARE

PAYOUT RATIO

$0.40 $0.40 $0.40 $0.40

$0.50

$0.55

2012 2013 2014 2015 2016 2017

SHARE INFORMATION:INVESTMENTS CONSIDERATIONS

1 Excluding net profits from discontinued operations

AUSR

60572112

US0605721127

1 To 1

Deutsche Bank Americas

24/10/97

LB0000010415

BLD3615 LB

BLD35C9 GB

GDR Ticker

Audi GDR’s Program

Audi.BY

Midclear

LB0000010415

1,663 LBP

20/10/06

LB0000010415

6113407 LB

Lebanon

Banks

Audi Ordinary’s program

USEFUL SHARE INFORMATION

CUSIP

ISIN

Ratio

Depositary

Effective Date

Underlying ISIN

SEDOL (Beirut)

SEDOL

Ordinary

Ticker

Custodian

ISIN

Nom. Value

Effective Date

Underlying ISIN

SEDOL

Country

Industry


STOCK MARKET RATIOS

1 On the basis of a Bank Audi GDR price of US$ 5.10 on the Beirut Stock Exchange as at 18/07/2018Sources: Bloomberg, Citigroup, IMF, Beirut Stock Exchange, Bank Audi’s Group Research Department

COMPARATIVE P/E RATIOS FOR BANKS1

Audi GDR 5.0x MENA 12.5x KSA 14.0x Qatar 11.8x

Audi Listed 5.0x Jordan 14.8x UAE 9.7x Bahrain 9.3x

Lebanon 6.4x Egypt 11.1x Kuwait 16.5x Oman 7.4x

BANK AUDI V/S MENA PEERS

1 Prices as at July 18, 2018 Sources: Bloomberg, Beirut Stock Exchange, Bank Audi’s Group Research Department

SHARE INFORMATION:STOCK MARKET PERFORMANCE & RATIOS

GLOBAL AVERAGE

1.48

EMERGING MARKETS AVERAGE

1.69

MENA AVERAGE

1.85

AUDI 1

0.67

GLOBAL AVERAGE

11.8


11.8

MENA AVERAGE

12.5

AUDI 1

4.3

GLOBAL AVERAGE

15.6%


20.1%

MENA AVERAGE

22.9%

AUDI 1

4.5%

GLOBAL AVERAGE

1.4


1.5

MENA AVERAGE

1.9

AUDI 1

0.9

PRICE TO BOOK AS AT JULY 18th, 2018

PRICE TO EARNINGS AS AT JULY 18th, 2018

PRICE TO ASSETS AS AT JULY 18th, 2018

PEG RATIO AS AT JULY 18th, 2018

ABQ

QNB Alahly

Masraf Al Rayan

NCB

Ahli BkKuwait

QNB

BankAudi

ADCB

Arab Bank

SABBCBK

CBDCBQ

CIB

ENBD

QIB

FAB

Kuwait Fin House

Rajhi

BBK

NBK

Samba

ABC

Riyad Bk

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32%

P/BV (Jul 18, 2018)

ROACE(1Q2018)

Sources: Bloomberg, Bank Audi's Group Research Department

MENA

MENA


APPENDIX

Odeabank’s branch in Istanbul– Turkey


(in US$ Thousands)

1 Loans granted to related parties against cash collateral amounted to USD 85 million2 Includes an amount of USD 1,403 million with risk ceded to customers

FINANCIAL STATEMENTS:CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Liabilities Dec-16 Dec-17 Jun-18Due to Central Banks 1,332,115 2,634,492 5,553,000Due to banks and financial institutions andrepurchase agreement

1,707,466 1,887,294 1,824,209

Due to head office, sister, related banks & financial institutionsFinancial assets taken as a guarantee

Derivative financial instruments 181,063 136,242 408,207Financial liabilities at fair value through profit &lossOf which: deposits at fair value through profit and loss

Customers deposits at amortized cost 35,415,733 32,953,802 30,889,983

Deposits from related parties at amortized cost 539,667 497,660 430,290

Debt issued & other borrowed funds

Engagements by acceptances 132,110 150,512 277,267

Other liabilities 510,503 390,504 340,968

Provisions for risks & charges 103,875 94,017 291,127

Subordinated loans & similar debts 645,794 819,415 818,836Non current liabilities held for sale

Total Liabilities 40,568,326 39,563,938 40,833,887

Shareholders' Equity - Group Share 3,472,044 3,940,735 3,821,371

Capital and issue premium - Common 1,025,252 1,027,108 1,027,108

Capital and issue premium - Preferred 625,000 750,000 750,000

Share purchase warrant 8,377 8,377 8,377

Cash contribution to capital 48,150 48,150 48,150

Reserves 779,880 803,968 786,978Treasury shares -62,372 -62,708 -3,877

Retained earnings 580,593 827,137 946,681Reserve on revaluation of financial assets at fair value through OCI 21,330 582 2,126

Results of the period 445,834 538,121 255,828Non controlling Interest 226,436 247,166 204,304

Total Shareholders' Equity3,698,480 4,187,901 4,025,675

Total Liabilities & Shareholders' Equity 44,266,806 43,751,839 44,859,562

Assets Dec-16 Dec-17 Jun-18

Cash and balances with Central Banks 12,371,872 13,165,412 13,071,968

Due from banks and financial institutions 2,008,111 965,010 1,644,414

Loans to banks and financial institutions and reverse repurchase agreements

1,372,348 801,682 77,712

Due from head office, sister, related banks and financial institutions

Financial assets given as collateral

Derivative financial instruments 258,798 264,069 470,603

Shares and participations held at fair value through profit & loss

48,837 40,484 40,891

Debt Instruments & other similar financial assets at fair value through profit & loss

411,007 951,522 181,338

Of which: Net advances and loans designated at fair value through profit and loss

14,526 31,614 22,690

Net loans & advances to customers at amortized cost 17,069,485 16,186,257 14,454,751

Net loans & advances to related parties at amortized cost 1 145,402 107,339 117,685

Debtors by acceptances 132,110 150,512 277,267

Debt instruments classified at amortized Cost 2 9,280,312 9,832,401 12,713,326

Shares and participations designated at fair value through OCI

128,655 104,827 99,766

Debt instruments and other similar financial assets at fair value through OCI

473,321

Investments in associates 8,844 89,192 97,998

Assets taken in settlement of debts 53,749 95,561 117,846

Property & equipment 584,743 586,666 576,698

Intangible fixed assets 42,866 50,576 48,111

Non current assets held for sale

Other assets 321,921 331,995 367,534

Goodwill 27,746 28,334 28,333

Total Assets 44,266,806 43,751,839 44,859,562


FINANCIAL STATEMENTS:CONSOLIDATED PROFIT & LOSS STATEMENT

(in US$ Thousands) 2016 HI-17 2017 HI-18

Interest & similar income (1) 2,693,563 1,468,470 3,050,007 1,472,157

Interest & similar expenses -1,694,711 -961,025 -1,999,166 -890,397

Net Interest Income 998,852 507,445 1,050,842 581,759

Non interest income 1,334,614 228,610 458,172 159,223

Total Operating Income 2,333,467 736,056 1,509,013 740,983

Net provisions for credit losses -441,382 -71,470 -143,752 -59,688

Provision on impairment of financial instruments

220 -7 0

Net Operating income 1,892,304 664,585 1,365,254 681,295

Personnel expenses -486,840 -217,694 -418,393 -188,798

Other operating expenses -325,404 -144,305 -289,262 -121,206

Depreciation of property & equipment

-51,610 -24,468 -49,351 -20,900

Amortization of intangible assets -20,506 -7,710 -15,236 -7,750

Impairment of goodwill -128,464

Total Operating Expenses -1,012,824 -394,178 -772,241 -338,653

Profit Before Tax 879,480 270,408 593,013 342,642

Income tax -233,247 -57,646 -129,179 -77,253

Profit After Tax 646,233 212,761 463,834 265,389

Net results from discontinued operations

-176,127 95,293 95,121 0

= Profit After Tax and Discontinued Operations

470,106 308,054 558,955 265,389

Minority Interest 24,272 10,072 20,834 9,561

Net Profit - Group share 445,834 297,982 538,121 255,828

1 Includes interest revenues from financial instruments at FVPL

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