Arab Banking B S C : H1 Investors Highlight 2023

H1 2023

Results Presentation

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Strong H1 with Net Profit at $121m, a growth of 72% YoY

Total Operating Income, $m

• $611m, 18% growth on a YoY basis benefitting from underlying business growth propelled further by higher interest rates.
• Revenues tracking higher on a YoY basis across almost all our units

	+18%
520m	611m
H1 22	H1 23

T1 Capital Ratio, %

			-0.5%
∕ Remains strong and well above the regulatory minimum of 10.5%	15.7%	15.2%

∕ CET 1 Ratio (13.6%) comprises the majority of Tier 1 Ratio

Dec 22

Jun 23

Net Profit, $m			+72%
∕ Net operating profit (before provisions and taxation) grew by +31%			121m
70m
∕ Net Profit of $121m, a strong 72% growth
	H1 22			H1 23

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Strong Revenue Growth Across the Franchise

• TOI reached $611m during H1 23, 18% higher on a YoY basis, and was well diversified across our markets and business lines

TOI by business (H1 23), $m

15.6%

32.1%

8.3%

ABC Brasil

MENA Subsidiaries

International Wholesale Bank Group Treasury

Other**

• • Net interest income at $444m +20% year on year supported by strong loan volumes, higher interest rates and improving margins. NIM +20bps YoY
• Other income also up 11% YoY reflecting good client cross sell and ancillary fee income

** Other includes activities of Arab Financial Services and ila and Equity income.

22.4%

21.6%

NII vs Other income, $m

		+18%
		611
520
167
150
370	444

H1 22		H1 23
		NII		Other income*	4

Cost to Income ratio improved

The Group continues to enforce appropriate cost discipline without compromising on investments into the Group's digital transformation and strategic initiatives to build its "Bank of the Future".

+18% increase in TOI YoY +10% increase in costs YoY

+8% "positive jaws"

Cost to income ratio therefore improved 4% to 60% on a headline basis and 3% to 55% when adjusted for ongoing

investment in digital initiatives

Operating Expenses and Cost to Income Ratio

+10%

364

331

116	Other Cost
105	Premises &
25
Equipment
27

199	223	Staff Cost

H1 22

H1 23

C/I ratio	64%		60%

C/I Ratio
58%		55%
(ex-Digital)

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