Arab Banking B S C : Regulatory Capital Disclosures - 31 Mar 2024

Regulatory Capital Disclosures

31 March 2024

Regulatory Capital Disclosures

PD 1: Post 1 January 2019 disclosure template

			US$ million
Basel III Common Disclosure Template	PIR as on 31	Reference
March 2024
Common Equity Tier 1 capital: instruments and reserves
1	Directly issued qualifying common share capital plus related stock surplus	3,104	a
2	Retained earnings	1,218	b
3	Accumulated other comprehensive income (and other reserves)	(471)	c1+c2+c3+c4
			+c5
4	Not applicable	-
5	Common share capital issued by subsidiaries and held by third parties (amount	299	d
allowed in group CET1)
6	Common Equity Tier 1 capital before regulatory adjustments	4,150
Common Equity Tier 1 capital: regulatory adjustments
7	Prudential valuation adjustments	-
8	Goodwill (net of related tax liability)	27
9	Other intangibles other than mortgage-servicing rights (net of related tax	123	e
liability)
10	Deferred tax assets that rely on future profitability excluding those arising from	14	f
	temporary differences (net of related tax liability)
11	Cash-flow hedge reserve	-
12	Shortfall of provisions to expected losses	-
13	Securitisation gain on sale (as set out in paragraph 562 of Basel II framework)	-
14	Not applicable	-
15	Defined-benefit pension fund net assets	33	c6
16	Investments in own shares	-
17	Reciprocal cross-holdings in common equity	-
	Investments in the capital of banking, financial and insurance entities that are
18	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
19	insurance entities that are outside the scope of regulatory consolidation, net of	-
	eligible short positions (amount above 10% threshold)
20	Mortgage servicing rights (amount above 10% threshold)	-
21	Deferred tax assets arising from temporary differences (amount above 10%	-
	threshold, net of related tax liability)
22	Amount exceeding the 15% threshold	-
23	of which: significant investments in the common stock of financials	-
24	of which: mortgage servicing rights	-
25	of which: deferred tax assets arising from temporary differences	-
26	CBB specific regulatory adjustments	-
27	Regulatory adjustments applied to Common Equity Tier 1 due to insufficient	-
	Additional Tier 1 and Tier 2 to cover deductions
28	Total regulatory adjustments to Common equity Tier 1	197
29	Common Equity Tier 1 capital (CET1)	3,953

2

Regulatory Capital Disclosures

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

			US$ million
Basel III Common Disclosure Template	PIR as on 31	Reference
March 2024
Additional Tier 1 capital: instruments
30	Directly issued qualifying Additional Tier 1 instruments plus related stock	390
	surplus
31	of which: classified as equity under applicable accounting standards	390
32	of which: classified as liabilities under applicable accounting standards	-
33	Directly issued capital instruments subject to phase out from Additional Tier 1	-
34	Additional Tier 1 instruments (and CET1 instruments not included in row 5)	145	g
issued by subsidiaries and held by third parties (amount allowed in Group AT1)
35	of which: instruments issued by subsidiaries subject to phase out	-
36	Additional Tier 1 capital before regulatory adjustments	535
Additional Tier 1 capital: regulatory adjustments
37	Investments in own Additional Tier 1 instruments	-
38	Reciprocal cross-holdings in Additional Tier 1 instruments	-
	Investments in the capital of banking, financial and insurance entities that are
39	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
40	entities that are outside the scope of regulatory consolidation (net of eligible	-
	short positions)
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)	535
45	Tier 1 capital (T1 = CET1 + AT1)	4,488
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	103	i
	Tier 2)
49	of which: instruments issued by subsidiaries subject to phase out	-
50	Provisions	236	h
51	Tier 2 capital before regulatory adjustments	339
Tier 2 capital: regulatory adjustments
52	Investments in own Tier 2 instruments	-
53	Reciprocal cross-holdings in Tier 2 instruments	-
	Investments in the capital of banking, financial and insurance entities that are
54	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)

3

Regulatory Capital Disclosures

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

		US$ million
Basel III Common Disclosure Template	PIR as on 31	Reference
	March 2024

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 and	N/A
	maturities)

4

Regulatory Capital Disclosures

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

			US$ million
Basel III Common Disclosure Template	PIR as on 31	Reference
		March 2024
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)	339
59	Total capital (TC = T1 + T2)	4,827
60	Total risk weighted assets	30,301
Capital ratios and buffers
61	Common Equity Tier 1 (as a percentage of risk weighted assets)	13.0%
62	Tier 1 (as a percentage of risk weighted assets)	14.8%
63	Total capital (as a percentage of risk weighted assets)	15.9%
	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	4.0%
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	8
73	Significant investments in the common stock of financials	31
74	Mortgage servicing rights (net of related tax liability)	-
75	Deferred tax assets arising from temporary differences (net of related tax	252
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	247	h*
	standardised approach (prior to application of cap)
77	Cap on inclusion of provisions in Tier 2 under standardised approach	339

1. N/A
2. N/A

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

5

Regulatory Capital Disclosures

PD 2 : Reconciliation of regulatory capital

i) Step 1: Disclosure of Balance Sheet under Regulatory scope of Consolidation

		US$ million
	Balance sheet
	as in published
	financial	Consolidated
	statements	PIR data
Liquid funds	2,356	-
Cash and balances at central banks	-	2,409
Placements with banks and similar financial institutions	2,116	3,547
Reverse repurchase agreements and other similar secured lending	1,482	-
Financial assets at fair value through P&L	1,352	1,352
Non-trading investments	11,916	-
Investments at Amortized Cost	-	6,303
Investments at FVOCI	-	5,627
Loans and advances	18,675	18,886
Investment properties	-	-
Interest receivable	-	608
Other assets	3,298	2,507
Investments in associates and joint ventures	-	31
Goodwill and intangible assets	-	151
Property, plant and equipment	240	240
TOTAL ASSETS	41,435	41,661
Deposits from banks	4,448	7,975
Deposits from customers	22,040	18,514
Certificate of deposits issued	230	230
Repurchase agreements and other similar secured borrowing	5,808	5,808
Interest payable	-	979
Taxation	116	-
Other liabilities	2,687	1,803
Borrowings	1,399	1,203
Subordinated liabilities	-	-
Additional Tier 1 Instrument	390	585
TOTAL LIABILITIES	37,118	37,097
Paid-in share capital	3,110	3,110
Treasury shares	(6)	(6)
Reserves	703	703
Non - controlling interest	510	510
Expected credit losses	-	247
TOTAL SHAREHOLDERS' EQUITY	4,317	4,564

6

Regulatory Capital Disclosures

PD 2 : Reconciliation of regulatory capital (continued)

ii) Step 2: Expansion of the Balance Sheet under Regulatory scope of Consolidation

			US$ million
	Balance sheet
	as in
	published
	financial	Consolidated
ASSETS	statements	PIR data	Reference
Liquid funds	2,356	-
Cash and balances at central banks	-	2,409
Placements with banks and similar financial institutions	2,116	3,547
Reverse repurchase agreements and other similar secured	1,482	-
lending
Financial assets at fair value through P&L	1,352	1,352
Loans and advances	18,675	18,886
Non-trading investments	11,916	11,930
Of which investment NOT exceeding regulatory threshold	-	11,930
Interest receivable	-	608
Other assets	3,298	2,507
Of which deferred tax assets arising from carryforwards of	-	14	f
unused tax losses, unused tax credits and all other
Of which deferred tax assets arising from temporary	-	252
differences
Investments in associates and joint ventures	-	31
Of which Significant investment exceeding regulatory threshold	-	-
Of which Significant investment NOT exceeding regulatory	-	31
threshold
Goodwill and intangible assets	-	151
Of which goodwill	-	27
Of which other intangibles (excluding MSRs) phased in at	-	123	e
100%
Of which MSRs	-	-
Property, plant and equipment	240	240
TOTAL ASSETS	41,435	41,661

7

Regulatory Capital Disclosures

PD 2 : Reconciliation of regulatory capital (continued)

ii) Step 2: Expansion of the Balance Sheet under Regulatory scope of Consolidation (continued)

			US$ million
	Balance sheet
	as in
	published	Consolidated
	financial
LIABILITIES & SHAREHOLDERS' EQUITY	statements	PIR data	Reference
Deposits from banks	4,448	7,975
Deposits from customers	22,040	18,514
Certificate of deposits issued	230	230
Repurchase agreements and other similar secured borrowing	5,808	5,808
Interest payable	-	979
Taxation	116	-
Other liabilities	2,687	1,803
Borrowings	1,399	1,203
Subordinated liabilities	-	-
Of which amount eligible for TII	-	-
Of which amount Ineligible	-	-
Additional Tier 1 Instrument	390	585
Of which amount eligible for AT1	-	82	g
Of which amount eligible for TII	-	19	i
Of which amount Ineligible	-	484
TOTAL LIABILITIES	37,118	37,097
Paid-in share capital	3,110	3,110
Treasury shares	(6)	(6)
Of which form part of CET1
Ordinary Share Capital	3,110	3,110	a
Treasury shares	(6)	(6)	a
Reserves	703	703
Of which form part of CET1
Retained earnings/(losses) brought forward	1,208	1,208	b
Net profit for the current year	75	75	c1
Legal reserve	569	569	c2
General (disclosed) reserves	100	100	c3
Fx translation adjustment	(1,266)	(1,266)	c4
Cumulative changes in fair value	50	50	c5
Pension fund reserve	(33)	(33)	c6
Non - controlling interest	510	510
Of which amount eligible for CETI	-	299	d
Of which amount eligible for ATI	-	63	g
Of which amount eligible for TII	-	84	i
Of which amount ineligible	-	64
Expected credit losses	-	247
Of which amount eligible for TII (Maximum 1.25% of Credit RWA)	-	247	h
Of which amount Ineligible	-	-
TOTAL SHAREHOLDERS' EQUITY	4,317	4,564

8

Regulatory Capital Disclosures

PD 3 : Main features of regulatory capital instruments

Disclosure template for main features of regulatory capital instruments

1	Issuer	Arab Banking Corporation	Arab Banking Corporation	Banco ABC Brasil		Banco ABC Brasil
2	Unique identifier	ABC	XS2426192261	LFSC19000 (series with various suffixes)		LFSC24000 (series with various suffixes)
3	Governing law(s) of the instrument	Laws of Bahrain	English and Bahrain Law	Laws of the Federative Republic of Brazil		Laws of the Federative Republic of Brazil
Regulatory treatment
4	Transitional CBB rules	Common Equity Tier 1	N/A	N/A		N/A
5	Post-transitional CBB rules	Common Equity Tier 1	Additional Tier 1	Additional Tier 1		Additional Tier 1
6	Eligible at solo/group/group & solo	Group & Solo	Group& Solo	Group		Group
7	Instrument type (types to be specified by each jurisdiction)	Common equity shares	Perpetual NC 6 Additional Tier 1 Capital	Perpetual NC 5, Sub-ordinated to all except		Perpetual NC 5, Sub-ordinated to all except
Securities	Shareholders' Equity		Shareholders' Equity
8	Amount recognised in regulatory capital (Currency in mil, as	US$ 3,110	US$ 390	BRL 519 million (of which US$ 45 million		BRL 503 million (of which US$ 37 million
of most recent reporting date)	equivalent eligible for AT1)		equivalent eligible for AT1)
9	Par value of instrument	1	1	300,000	300,00
10	Accounting classification	Shareholders equity	Shareholders equity	Liability- Amortized cost		Liability- Amortized cost
11	Original date of issuance	Various	28th March 2022	Various		Various
12	Perpetual or dated	Perpetual	Perpetual	Perpetual		Perpetual
13	Original maturity date	No maturity	No maturity	No maturity		No maturity
14	Issuer call subject to prior supervisory approval	Yes	Yes	Yes		Yes
15	Optional call date, contingent call dates and redemption	N/A	28th March 2028 and every interest payment	Yes		Yes
	amount		date thereafter
16	Subsequent call dates, if applicable	N/A	Every interest payment date after the first	N/A		N/A
call date
Coupons / dividends
17	Fixed or floating dividend/coupon	Floating (Dividend as decided by the	Fixed	Floating		Floating
shareholders)
				Average market yield of 12,77%, equivalent		Average market yield of 13,487%, equivalent
18	Coupon rate and any related index	N/A	N/A	to 1,20 times the current Selic Rate of 10,65%		to 1,27 times the current Selic Rate of 10,65%
				p.a.		p.a.
19	Existence of a dividend stopper	N/A	Yes	No		No

9

Regulatory Capital Disclosures

PD 3 : Main features of regulatory capital instruments (continued)

Disclosure template for main features of regulatory capital instruments

20	Fully discretionary, partially discretionary or mandatory	Fully discretionary	Partly discretionary (Insufficiency of profits)	Partly discretionary (Insufficiency of profits)	Partly discretionary (Insufficiency of profits)
21	Existence of step up or other incentive to redeem	No	No	No	No
22	Non-cumulative or cumulative	N/A	Non-cumulative	Non-cumulative	Non-cumulative
23	Convertible or non-convertible	N/A	Convertible	Non convertible	Non convertible
24	If convertible, conversion trigger (s)	N/A	Non-Viability Event	N/A	N/A
25	If convertible, fully or partially	N/A	Fully	N/A	N/A
26	If convertible, conversion rate	N/A	Conversion Price as defined	N/A	N/A
27	If convertible, mandatory or optional conversion	N/A	Mandatory	N/A	N/A
28	If convertible, specify instrument type convertible into	N/A	Ordinary Shares	N/A	N/A
29	If convertible, specify issuer of instrument it converts into	N/A	ABC	N/A	N/A
30	Write-down feature	No	No	Yes	Yes
31	If write-down,write-down trigger(s)	N/A	N/A	CET 1 at 5.125% or below	CET 1 at 5.125% or below
32	If write-down, full or partial	N/A	N/A	Fully discretionary	Fully discretionary
33	If write-down, permanent or temporary	N/A	N/A	Permanent	Permanent
34	If temporary write-down, description of write-up mechanism	N/A	N/A	N/A	N/A
	Position in subordination hierarchy in liquidation (specify	Subordinated to all depositors and creditors	Subordinated to all senior obligations of the
35	bank and in priority to the Junior obligations	AT1 capital bills	AT1 capital bills
instrument type immediately senior to instrument)	(including subordinated debt) of the Bank
			(such as equity shares).
36	Non-compliant transitioned features	No	No	No	No
37	If yes, specify non-compliant features	N/A	N/A	N/A	N/A

10