Al Ahli Bank of Kuwait K S C P : Financial Statement

CAPITAL STRUCTURE

The capital structure of the Bank Group consists of Common Equity Tier I capital (paid-up equity capital and reserves including fair value reserves) and Tier II capital, which includes general provision (subject to maximum of 1.25% of total credit risk weighted assets). There are no Additional Tier 1 capitals in the capital structure of the Bank.

	Capital Structure as at 31st March 2023	(KD'000s)
	Paid-up share capital/common stock	178,513
	Reserves	308,383
	Less:
	Treasury Shares	(5,135)
	Other Intangibles (except Mortgage Servicing Rights)	(7,028)
	Defined benefit pension fund liabilities	29
	Common Equity Tier I	474,761
	Additional Tier I	90,750
	Capital Eligible as T2	49,545
	General provisions (subject to maximum of 1.25% of total credit risk weighted assets)	52,681
	Threshold Deductions arising from Investments in FIs where ownership is <= 10%	-
	Tier II	102,226
	Total eligible capital after deductions		667,737

Composition Analysis

The composition of capital in terms of Tiers I, and Tier II is analysed to ensure capital stability and to reduce volatility in the capital structure.

	Required
Capital adequacy as at 31st March 2023	Capital
	(KD'000s)
1. Claims on sovereigns	6,577
58,047
2. Claims on public sector entities (PSEs)
3. Claims on banks	58,362
4. Claims on corporate	281,325
5. Regulatory retail exposures	86,555
6. Past due exposures	5,130
7. Other exposures	51,884
Total	547,880
Less: General provision in excess of 1.25% risk weighted assets	(29,611)
Net credit risk weighted exposure	518,270
Market risk exposure	2,015
Operational risk exposure	36,569
Grand Total	556,855
Capital Adequacy Ratios:
Tier I	13.20%
CET 1	11.08%
Total	15.59%

Additional capital disclosures required by Basel III regulations are shown below.

Common Disclosure as at 31st March 2023

Common Equity Tier 1 capital: Instruments and Reserves

Directly issued common share capital plus related stock surplus Retained earnings

Accumulated other comprehensive income (and other reserves)

Directly issued capital subject to phase out from CET 1 (only applicable to non - joint stock companies)

Common share capital issued by subsidiaries and held by third parties (minority interest)

Common Equity Tier 1 capital before regulatory adjustments

Common Equity Tier 1 Capital: Regulatory Adjustments

Prudential valuation adjustments

Dividends

Goodwill (net of related tax liability)

Other intangibles other than mortgage- servicing rights (net of related tax liability)

Deferred tax assets that rely on future profitability excluding those arising from temporary differences

Cash- flow hedge reserve

Shortfall of provisions to expected losses

Securitization gain on sale

Gain and losses due to changes in own credit risk on fair valued liabilities Defined-benefit pension fund net assets

Proposed Dividend

	Component of		Reference of
		Balance Sheet
	Regulatory
		under the
	Capital reported
		Regulatory
	by bank
		Scope of
	(KD'000s)
		Consolidation
287,410		c + d
47,250		f

152,119

-

117

486,896

-

-

-

(7,028)

-

-

-

-

-

29

-

				Component of		Reference of
					Balance Sheet
				Regulatory
	Common Disclosure as at 31st March 2023				under the
			Capital reported
				Regulatory
				by bank
					Scope of
				(KD'000s)
					Consolidation
Investments in own shares(if not already netted off paid-in capital on reported	(5,135)		e
balance sheet)
Reciprocal cross- holdings in common equity of banks, FIs, and insurance entities	-
Investments in the capital of banking, financial and insurance entities that are
outside the scope of regulatory consolidation, net of eligible short positions, where	-
the bank does not own more than 10% of the issued share capital (amount above
10% threshold of bank's CET 1 capital)
Significant investments in the common stock of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, net of eligible	-
short positions (amount above 10% threshold of bank's CET 1 capital)
Mortgage servicing rights (amount above 10% threshold of bank's CET 1 capital)	-
Deferred tax assets arising from temporary differences (amount above 10%	-
threshold, net of related tax liability)
Amount exceeding the 15% threshold	-
	of which : significant investments in the common stock of financials	-
	of which : mortgage servicing rights	-
	of which : deferred tax assets arising from temporary differences	-
National specific regulatory adjustments	-
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient	-
Additional Tier 1 and Tier 2 to cover deductions
Total regulatory adjustments to Common Equity Tier 1	(12,134)
Common Equity Tier 1 capital (CET 1) after regulatory adjustments	474,761
Additional Tier 1 capital : Instruments
Directly issued qualifying Additional Tier 1 instruments plus related stock	-
surplus
	of which : classified as equity under applicable accounting standards	-
	of which : classified as liabilities under applicable accounting standards	-

				Component of		Reference of
					Balance Sheet
				Regulatory
	Common Disclosure as at 31st March 2023				under the
			Capital reported
				Regulatory
				by bank
					Scope of
				(KD'000s)
					Consolidation
Directly issued capital instruments subject to phase out from Additional Tier 1	90,750
Additional Tier 1 instruments issued by subsidiaries and held by third parties	-
	of which : instruments issued by subsidiaries subject to phase-out	-
Additional Tier 1 capital before regulatory adjustments	90,750
Additional Tier 1 Capital : Regulatory Adjustments
Investments in own Additional Tier 1 instruments	-
Reciprocal cross-holdings in Additional Tier 1 instruments	-
Investments in the capital of banking, financial and insurance entities that are
outside the scope of regulatory consolidation, net of eligible short positions,	-
where the bank does not own more than 10% of the issued common share
capital of the entity
Significant investments in the capital of banking, financial and insurance entities	-
that are outside the scope of regulatory consolidation
National specific regulatory adjustments	-
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to	-
cover deductions
Total regulatory adjustments to Additional Tier 1 capital	-
Additional Tier 1 capital (AT1)	90,750
Tier 1 capital (T1 = CET1 + AT1)	565,511
Tier 2 Capital: Instruments and Provisions
Directly issued qualifying Tier 2 instruments plus related stock surplus	49,545
Directly issued capital instruments subject to phase-out from Tier 2	-
Tier 2 instruments issued by subsidiaries and held by third parties	-
	of which : instruments issued by subsidiaries subject to phase-out	-
General Provisions included in Tier 2 capital	52,681
Tier 2 capital before regulatory adjustments	102,226
Tier 2 Capital : Regulatory Adjustments