Arab Banking B S C : Regulatory Capital Disclosures - 30 Jun 2023

Regulatory Capital Disclosures

30 June 2023

Regulatory Capital Disclosures

PD 1: Post 1 January 2019 disclosure template

		US$ million
Basel III Common Disclosure Template	PIR as on 30	Reference
June 2023
Common Equity Tier 1 capital: instruments and reserves

• Directly issued qualifying common share capital plus related stock surplus
  2 Retained earnings
  3 Accumulated other comprehensive income (and other reserves)

• Not applicable

• Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)

• Common Equity Tier 1 capital before regulatory adjustments Common Equity Tier 1 capital: regulatory adjustments

• Prudential valuation adjustments
  8 Goodwill (net of related tax liability)

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

1. Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)
2. Cash-flowhedge reserve
3. Shortfall of provisions to expected losses
4. Securitisation gain on sale (as set out in paragraph 562 of Basel II framework)
5. Not applicable
6. Defined-benefitpension fund net assets
7. Investments in own shares
8. Reciprocal cross-holdings in common equity
   Investments in the capital of banking, financial and insurance entities that are
9. 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)
   Significant investments in the common stock of banking, financial and
10. insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold)
11. Mortgage servicing rights (amount above 10% threshold)
12. Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
13. Amount exceeding the 15% threshold
14. of which: significant investments in the common stock of financials
15. of which: mortgage servicing rights
16. of which: deferred tax assets arising from temporary differences
17. CBB specific regulatory adjustments
18. Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions
19. Total regulatory adjustments to Common equity Tier 1
20. Common Equity Tier 1 capital (CET1)

3,104 a

1,119 b

1. c1+c2+c3+c4
   +c5

-

280 d

4,121

-
41
105	e
17	f
-
-
-
-

33 c6

-

-

-

-

-

-

-

-

-

-

-

-

196

3,925

2

Regulatory Capital Disclosures

PD 1: Post 1 January 2019 disclosure template (continued)

		US$ million
Basel III Common Disclosure Template	PIR as on 30	Reference
June 2023
Additional Tier 1 capital: instruments

1. Directlysurplus issued qualifying Additional Tier 1 instruments plus related stock
2. of which: classified as equity under applicable accounting standards
3. of which: classified as liabilities under applicable accounting standards
4. Directly issued capital instruments subject to phase out from Additional Tier 1
5. Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in Group AT1)
6. of which: instruments issued by subsidiaries subject to phase out
7. Additional Tier 1 capital before regulatory adjustments

Additional Tier 1 capital: regulatory adjustments

1. Investments in own Additional Tier 1 instruments
2. Reciprocal cross-holdings in Additional Tier 1 instruments
   Investments in the capital of banking, financial and insurance entities that are
3. 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 (amount above 10% threshold)
   Significant investments in the capital of banking, financial and insurance
4. entities that are outside the scope of regulatory consolidation (net of eligible short positions)

367

367

-

-

108 g

-

475

-

-

-

-

41	CBB specific regulatory adjustments	-
42	Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to	-
	cover deductions
43	Total regulatory adjustments to Additional Tier 1 capital	-
44	Additional Tier 1 capital (AT1)	475
45	Tier 1 capital (T1 = CET1 + AT1)	4,400
Tier 2 capital: instruments and provisions
46	Directly issued qualifying Tier 2 instruments plus related stock surplus	-
47	Directly issued capital instruments subject to phase out from Tier 2	-
	Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or
48	34) issued by subsidiaries and held by third parties (amount allowed in Group	88	i
	Tier 2)

1. of which: instruments issued by subsidiaries subject to phase out
2. Provisions
3. Tier 2 capital before regulatory adjustments

Tier 2 capital: regulatory adjustments

1. Investments in own Tier 2 instruments
2. Reciprocal cross-holdings in Tier 2 instruments
   Investments in the capital of banking, financial and insurance entities that are
3. 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 (amount above the 10% threshold)

-

242 h

330

-

-

-

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Regulatory Capital Disclosures

PD 1: Post 1 January 2019 disclosure template (continued)

US$ million

Basel III Common Disclosure Template	PIR as on 30
June 2023
Tier 2 capital: regulatory adjustments (continued)
	Significant investments in the capital banking, financial and insurance entities
55	that are outside the scope of regulatory consolidation (net of eligible short	-
	positions)
56	National specific regulatory adjustments	-
57	Total regulatory adjustments to Tier 2 capital	-
58	Tier 2 capital (T2)	330
59	Total capital (TC = T1 + T2)	4,730
60	Total risk weighted assets	28,937
Capital ratios and buffers
61	Common Equity Tier 1 (as a percentage of risk weighted assets)	13.6%
62	Tier 1 (as a percentage of risk weighted assets)	15.2%
63	Total capital (as a percentage of risk weighted assets)	16.3%
	Institution specific buffer requirement (minimum CET1 requirement plus
64	capital conservation buffer plus countercyclical buffer requirements plus G-	2.5%
	SIB buffer requirement, expressed as a percentage of risk weighted assets)
65	of which: capital conservation buffer requirement	2.5%
66	of which: bank specific countercyclical buffer requirement	N/A
67	of which: G-SIB buffer requirement	N/A
68	Common Equity Tier 1 available to meet buffers (as a percentage of risk	4.6%
weighted assets)
National minima including CBB (where different from Basel III)
69	CBB Common Equity Tier 1 minimum ratio	9%
70	CBB Tier 1 minimum ratio	10.5%
71	CBB total capital minimum ratio	12.5%
Amounts below the thresholds for deduction (before risk weighting)
72	Non-significant investments in the capital of other financials	9
73	Significant investments in the common stock of financials	33
74	Mortgage servicing rights (net of related tax liability)	-
75	Deferred tax assets arising from temporary differences (net of related tax	326
liability)
Applicable caps on the inclusion of provisions in Tier 2
76	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to	264
standardised approach (prior to application of cap)
77	Cap on inclusion of provisions in Tier 2 under standardised approach	330

1. N/A
2. N/A

Reference

h*

• As adjusted based on CBB circular OG/226/2020

4

Regulatory Capital Disclosures

PD 1: Post 1 January 2019 disclosure template (continued)

		US$ million
Basel III Common Disclosure Template	PIR as on 30	Reference
	June 2023

Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2019 and 1 Jan 2023)

80	Current cap on CET1 instruments subject to phase out arrangements	N/A
81	Amount excluded from CET1 due to cap (excess over cap after redemptions	N/A
and maturities)
82	Current cap on AT1 instruments subject to phase out arrangements	N/A
83	Amount excluded from AT1 due to cap (excess over cap after redemptions	N/A
and maturities)
84	Current cap on T2 instruments subject to phase out arrangements	N/A
85	Amount excluded from T2 due to cap (excess over cap after redemptions	N/A
and maturities)

5