In the Notes of Financial Statements Due to the High Numbers of Items in Some Accounts, Some Items of Each Note Have Been Reported Under the Heading of “Others”

in the name of god

Annual Report 2019 Annual Report 2019 1 2 Annual Report 2019 Contents

PART One EN Bank Overview �� 05 CEO’s Message �� 06 Financial Highlights �� 08 EN Bank at a Glance �� 11 Background �� 14 Honors and Distinctions �� 15 Strategy & Strategic Objectives �� 16 Introducing our 2020 Business Updates �� 16 Composition of Shareholders �� 18 Board of Directors �� 19 Executive Board Members �� 22 Position in the Industry �� 23 Business Profile �� 25 Retail Banking �� 26 Corporate Banking �� 26 Electronic Banking �� 27 International Banking �� 28 Corporate Governance �� 30 Internal Control & Audit �� 30 Bank’s Risk Analysis Report �� 31 Human Resource and Training �� 34 Corporate Social Responsibilities �� 37

Part Two Auditor’s Opinion and Financial Statements �� 41 Annual Report 2019 Financial Statements and Notes �� 49 3 4 Annual Report 2019 PART One EN Bank Overview Annual Report 2019 5 6 Annual Report 2019

Mr. Alireza Bolgouri CEO

CEO’s Message

To the 2020 General Meeting, To our shareholders and clients, To my teammates, To leaders and partners in the communities we serve across Iran. I am pleased to share the 2019-20 Bank Eghtesad Novin's Annual Report with you. In this report, my teammates and I share highlights of the progress our bank made during the year, which capped off a decade of growth for our bank and for Iran's banking industry. Bank Eghtesad Novin pursues a new guideline for its operation and accomplishing its goals through defining new business strategies. In this regard choosing proper goals, which require an improvement of business infrastructures, including financial structures is our bank's priority. The board of directors' briefing report for capital increase through reevaluation of assets and shareholders' cash deposits was provided. To improve the existing internal and external control systems and rules recommended by the Central Bank of Islamic Republic of Iran, Securities and Stock Exchange Organization, our internal auditing committee restructured itself with the mission of acting as service provider not only to the management but also to the organization as a whole. Due to the 132% increase in capital, we hope that this growth continues in order to strengthen bank's financial stability and future growth and development. We are extremely proud that the bank's proper performance and financial clarity in issued reports for the stock market lead to a welcoming and impressive reaction from the market which resulted in a 567% growth of stock value since March 20, 2019 to the date. Another underscored approach of the board of directors through the year ending March 19, 2020, was emphasis on professional banking standards, aiming to focus on banking operations and financial intermediation via selling of about IRR 10'000 billion non-banking investments and estate properties. In addition, Necessary measures have been taken to accept and offer a portion of the shares of the subsidiary companies, including Eghtesad Novin leasing companies and Pardakht Novin Aryan in the capital market. As in the past, the bank remained committed to its social responsibilities. In response to the trust of the respected shareholders and fulfilling our mission to maximize profitability for them, business enterprises and large corporations also have a moral obligation to serve society at large and local communities, from which we emerge and thrive. We allocate a considerable portion of our resources towards fulfilling our role as a socially responsible bank. In support of educational purposes, six schools have been constructed in underprivileged regions of the country and in support of Covid-19 patients; a portion of the needed medical equipment for Imam Khomeini Hospital has been purchased and dedicated to the said hospitals. I hope you will enjoy reading about your bank in the following pages, where you can look at how we are helping make financial lives better through every connection. There are factors beyond our control that affect the markets and economies in which we operate but we continue to use our operational excellence work to drive operational risk out of the bank. Despite headwinds that may arise from time to time, over the last decade we have built a strong, stable platform, with significant liquidity and capital, and we will remain resilient as we maintain disciplined focus on what we can control, which is embedded in delivering Responsible Growth. As we look ahead to 2020 and beyond, we will maintain our focus on delivering Responsible Growth through disciplined adherence to the tenets I have discussed: by serving our clients, managing risk well and ensuring those results are sustainable through operational excellence, being a great place to work for our teammates, and sharing our success. The strategy that our board of directors reviewed in 2019 is based on continued adherence to this approach. Sincerely Yours, Kind regards, Alireza Bolgouri CEO. Annual Report 2019 7 8

Financial Highlights The Following Table Represent Financial High Lights of EN Group for the Fiscal Year Ended Annual Report 2019 March 19, 2020:

Ended Ended Ended A) Financial Performance Information of Fiscal Year - Million IRR March 19, 2020 March 20, 2019 March 20, 2018 Mutual Income from Granted Loans 31,901,918 35,712,160 44,530,305 Other Mutual Incomes 10,951,778 4,916,065 1,677,960 Non-Mutual Income 21,498,494 16,108,462 13,070,422 Total of Income 64,352,190 56,736,687 59,278,688 On Account Profit of Deposits - IRR and Foreign Currency (51,732,810) (47,153,514) (51,498,910) Cash from Operational Activities (22,471,654) 43,625,712 (26,687,177) Net Profit (Loss) 1,049,123 (1,155,726) (1,263,128) Net Profit (Loss) of Parent Company's Shareholders 865,592 (1,257,779) (1,334,520) Net Profit (Loss) of Shareholders Without Control 183,532 102,052 71,392 Retained Profit (Loss) (6,182,775) (6,849,234) (4,100,276) B) Financial Balance at the end of Period - Million IRR Total of Assets 651,365,404 469,380,231 425,631,331 Total of Liabilities (Including Investment Depositors' Equity) 604,655,750 452,045,454 406,673,269 Total of Shareholders' Equity (Including equity of Shareholders without 46,709,654 17,334,777 18,958,062 Control) C) Return Rate - % Return Rate of Assets 0.19% (0.26%) (0.29%) Return Rate of Shareholders' Equity 3.28% (6.37%) (6.37%) D) Information per Share No. of Share at the Time of General Meeting 13,131,000,000 13,131,000,000 13,131,000,000 Profit (Loss) per Share - IRR 66 (96) (102) E) Other Information Number of Employees at the End of the Year 4,246 4,379 4,433 Number of Subsidiary Companies 13 13 13 Number of Affiliated Companies 3 4 4 The Following Table Represent Financial High Lights of EN Bank for the Fiscal Year Ended March 19, 2020:

Ended Ended Ended A) Financial Performance Information of Fiscal Year - Million IRR March 19, 2020 March 20, 2019 March 20, 2018 Mutual Income from Granted Loans 31,440,800 35,787,926 44,638,715 Other Mutual Incomes 12,939,857 5,985,371 3,559,828 Non-Mutual Income 20,547,089 15,028,341 11,984,335 Total Income of the Bank 64,927,745 56,801,638 60,182,878 On Account Profit of Deposits - IRR and Foreign Currency (51,829,438) (47,230,683) (51,567,982) Cash from Operational Activities (22,557,745) 38,913,581 (23,709,818) Retained Profit (Loss) (6,287,439) (6,801,859) (3,876,602) B) Financial Balance at the end of Period - Million IRR Total of Assets 636,105,532 461,751,768 416,966,535 Total of Loans Granted (Before Deduction of Reserves) 459,410,796 313,533,079 306,346,702 Net Open Position Positive Positive Positive Total of Liabilities and Including Investment Depositors' Equity 603,240,891 450,772,536 403,062,046 Total of Parties' Deposits 514,911,693 350,217,463 337,301,039 Registered Capital 13,131,000 13,131,000 13,131,000 Total of Shareholders' Equity 32,864,641 10,979,232 13,904,489 Capital Adequacy Ratio 2.14% 1.44% 5.11% C) Return Rate - % Return Rate of Assets 0.11% (0.45%) (0.41%) Return Rate of Shareholders' Equity 2.80% (15.80%) (11.10%) D) Information per Share No. of Share at the Time of General Meeting 13,131,000,000 13,131,000,000 13,131,000,000 Book Value of Each Share 2,503 836 1,059 Final Price of Each Share at the Last Day of the Year - IRR 4,003 2,441 1,307 Profit (Loss) per Share - IRR 46 (149) (132) Price-Earnings Ratio of Each Share - Times 87 (16.4) (9.9) E) Other Information Number of Employees at the End of the Year 3,019 3,129 3,163 Number of Branches in Tehran Province 102 105 105 Number of Branches in Other Provinces 137 140 140

Number of Branches in Free Zones 2 2 2 Annual Report 2019 9 10

Key Ratios: Annual Report 2019 March 20, 2019 March 20, 2018 Ratio Calculating Method March 19, 2020 Restated Restated Assets return EBIT to average of all assets 0.1% (0.4%) (0.4%) Equity Return Profit after Taxes to Equity 2.8% (15.8%) (11.1%) Equity Ratio Equity to Total of Assets 5.2% 2.4% 3.33% Profit Margin Ratio Net Profit to Total of Incomes 0.9% 14.6% (16.9%) Joint Granted Facilities Interest to the Rial Facilities Average Interest Rate 12.2% 14.6% 16.9% Average of IRR Facilities Rial Investment Accounts Average Rial Investments Interests to the 14.8% 15.5% 16.3% Interest Rate Average of IRR Investment Accounts Payed Interest to the Average Total Resources used to Pay the Interest 9.4% 10.7% 12.2% of Assets Bank's income Per Employee Bank's Total Income to the Average 21,122 18,055 18,943 (Million IRR) Number of Employees Bank's Net Profit per Employee Bank's Net Profit to the Average 197 (623) (544) (Million IRR) Number of Employees Bank's income Per Branch (Million Total Income to the Average Number 266,097 229,966 241,698 IRR) of Branches Bank's Net Profit per Branch Net Profit to the Average Number of 2,480 (7.935) (6.941) (Million IRR) Branches Total of Accounts to the Average Accounts per Branch (Million IRR) 2,110,294 1,417,884 1,354,623 Number of Branches Total of Facilities to the Average Facilities per Branch (Million IRR) 1,882,831 1,269,365 1,230,308 Number of Branches Average Number of Employees to the Employee per Branch 12 13 13 Average Number of Branches Total of Debts and Equities of Debt Ratio 8.94% 6.97% 7.96% investment Accounts to Assets Total of Debts and Equities of Debt to Equity Investment Accounts Owners to 18 41 29 Shareholders' Equity Non-Performing Loans to Total of all Non-Performing Loan (NPL) Ratio 14.7% 26.5% 25.0% Facilities before Reserves deduction Non-Joint Incomes to all incomes Non-Joint Incomes to all incomes 31.6% 26.5% 19.9% ratio Sum of Exchange Balance to Capital Net Open position (NOP) Positive Positive Positive Investment EN Bank at a Glance

About EN Bank: With assets IRR 636,105,532 Million and operation in 241 cities at March 19, 2020, EN Bank is the first privately owned bank in the Islamic Republic of Iran, with the aim of offering a wide range of retail, commercial, and international banking services. Our Vision: Bank Eghtesad Novin in the horizon of 1400 intends to provide a model of comprehensive banking and become one of the top three banks in Iran in terms of profitability. We will achieve this with the most efficient employees, the most qualified managers, the most modern service network, the comprehensive application of new technologies and expanding customers’ access to banking services throughout Iran and the world. Our Mission: Bank Eghtesad Novin offers a comprehensive range of banking and financial services in its service network to different groups of customers with the benefit of up-to-date staff and several skills. EN Bank is committed to fulfilling this mission in the framework of Islamic banking and satisfying stakeholders Provide innovative banking services and play an effective role in the development and economic growth of the country. Our Values: Our values help us define who we are as a bank, and are key to our long-term success. We aspire to be: Connected:

We are connected to our customers, to our communities, to our regulators, and to each other, caring about individuals and their progress. Independence:

We fervently believe that as an independent bank, with strong employee ownership, we best serve our customers and shareholders. Integrity:

Integrality is at the core of all our relationships. We build trust and confidence in our customers and shareholders. Annual Report 2019 11 12

Lega| Inspector& Auditor Annual Report 2019

Services Risk Supreme Compliance Compensation Auditing Committee Committee Committee Committee

Internal Auditing dep.

Risk Compliance AML & CFT Directorate dep. dep.

CEO’ s security & Public Secretariat dep. Safeguards dep. Relations dep.

Credits & Businesses International Deputy Affairs Deputy

Credits Corporate Branches’ Directorate Banking dir. Affairs dir.

International Affairs Provincial Directorate Zones Tehran Zones Independent Administration Administration Branch

Branches Branches General Meeting

Board of Leadership, Directors Council

CEO Executive Board

Vice CEO

Human Subsidiaries Legal Affairs Capital dev. Inspection Affairs Directorate Management Directorate Directorate

Structures & Financial & IT Deputy Systems Dev. Support Deputy Deputy

Project & Software Treasury Financial Planning Department Engineering dir. Directorate dir.

Organization & Clearing Infrastructure Systems dev. Department dir. & Network dir.

E-Transactions Information Department Security dep.

Support Department Annual Report 2019 13 14 Background

EN Bank accepted shares on July 29-31, 2001, based on the licenses obtained from the Central Bank of the Islamic Republic of Iran and the Stock Exchange and Securities Organization. The founding general assembly of EN Bank was held on August 4, 2001, and on August 10 of the same year, with an initial capital of IRR250 Annual Report 2019 billion, it was registered in the Tehran Companies and Non-Commercial Institutions Registration Office under number 177132. Type of Activity Under the framework of the country’s monetary and banking law, the law on interest-free banking operations and other relevant laws, regulations governing authorized banking operations and other approvals of the Monetary and Credit Council and orders of the Central Bank of the Islamic Republic of Iran and obtaining the necessary licenses, bank activities are as follows: The Bank’s Capital Bank Eghtesad Novin started its activity with a capital of 250 billion IRR. Between 2002 and 2016 and throughout numerous stages, this capital grew to be 13,131 billion IRR (13,131 shares, each priced 1,000 IRR). The changes of the Bank’s capital through recent years are detailed in the table below:

Submission Date of Former Amount of New Percentage of Means of Increase Capital Increase Capital Increase Capital Increase Billion IRR Billion IRR Billion IRR Billion IRR May 26, 2010 3,000 1,000 4,000 33.3% claims and cash input January 8, 2011 4,000 1,500 5,500 37.5% claims and cash input February 19, 2012 5,500 2,500 8,000 45.5% claims and cash input October 20, 2013 8,000 3,312 11,312 41.4% fixed assets revaluation December 25, 2016 11,312 1,819 13,131 16.1% retained earnings

In March 19, 2020 the warrant for capital increase via fixed assets re-evaluation (estates) amounted 17,294,734 IRR and shareholders cash input amounted 28,000,000 million IRR, was issued the Central Bank of Islamic Republic of Iran and Securities and Exchange Organization in March of 2020 and capital increase via fixed assets e-evaluation (estates) was approved by the extraordinary general meeting dated April 11, 2020, and is pending implementation. Shareholders By March 19, 2020, the Bank had 68,313 shareholders, consisting of both natural and legal personalities, the composition of which is as follows:

Shareholders Group Number of Shareholders Number of Shares Ratio of Shares to total of shares Individuals 198 10,359,100,950 78.89% Legal Entities 68,115 2,771,889,050 21.11% Total 68,313 13,131,000,000 100 Honors and Distinctions Annual Report 2019 15 16 Strategy & Strategic Objectives

EN Bank strives to outmaneuver its competitors by constantly diversifying and improving its portfolio of customized products and services. For this purpose, the Bank has set its strategies in the form of a rolling three-year plan, which is repeatedly subject to revision and modification and being tailored to the needs of its business model and

Annual Report 2019 customer expectations. EN Bank aims to become a one-stop service provider, offering all types of banking services under one umbrella. On the other hand, by accepting the power of strategic thinking and inexhaustible capabilities of human capital, EN Bank will create new strategic opportunities for both its customers and shareholders. Rapid product delivery places much emphasis on technology, coupled with the expansion of a national branch network to accomplish the goals set in the bank’s strategic planning. The key elements of such strategic thinking can be summarized as follows: •To develop a corporate culture with great emphasis on an efficient organizational structure underpinned by corporate governance which can effectively monitor the bank’s operations. •To evolve from the first privately-owned bank in Iran to the «Best Bank» in Iran, ultimately designed to have a dynamic presence at local, regional and international levels. •To employ cutting-edge technologies to expand the bank’s network of services, chiefly focusing on electronic delivery channels such as internet banking, telephone banking and mobile banking. •To strengthen the Bank’s capital base and improve other key ratios to maintain solid financial position. •To extend the scope of international banking services available to its customers. •To optimize the growth of the portfolio of subsidiary companies within EN Group. •To improve the efficiency of its risk management system by employing the most modern software solutions. •To place great emphasis on productivity improvement and on diversified sources of profit. •To explore new products and services with huge growth potential. •To target new opportunities across different sectors, as well as provision of services not yet offered by competitors. Considering these strategic factors, EN Bank has witnessed a period of rapid growth, consolidating its position as one of the pioneering banks among its peers in the private banking sector. The results of the strategic planning have been reflected in a very significant expansion in the Bank’s asset-base and a considerable increase of its market share in both customer loans and deposits.

Introducing our 2020 Business Updates Having taken principles of operational planning into consideration, in compliance of with banking regulations, and utilizing both prior experiments and modern knowledge, to provide banking services for its customers and all beneficiaries EN Bank announces its most outstanding operational goals for the next fiscal year as below: Strengthening the Bank’s Infrastructures •Increasing the capital through cash inputs in order to improve upon the regulatory capital and capital adequacy ratio; •Complete execution of the Central Bank’s regulations regarding providing and clarification of the information in its information systems such as Mahtab Information System and etc.; •Following through the determining the results of tax files of previous years; •Improving upon the infrastructures, processes, and the knowledge in order to provide financial / banking consulting services; •Coalescing the headquarter buildings in a single complex to improve efficiency; •Establishing open innovation infrastructures through coalition with financial technologies and digital platforms to develop the products, market, and costumers; •Improving and upgrading main sites and supporting sites; •Improving the Security of the Bank’s IT infrastructure; •Upgrading and developing the Bank’s urgency site, •Purging the existing data to utilize in development of Commercial Intelligence Systems; •Revamping the Bank’s visual identity; •Integrating the servicing channels, with OmniChannel based marketing, in order to improve the costumers’ experience; •Establishing the customers’ profile management system for premium recognition of the customers’ information parameters in 360 degrees way and providing personalized products and promotions to customers. •Designing and implementing CRM system. Improving the Business Environment •Unveiling the Bank’s new site; •Developing stock holders’ affair system; •Developing Hamrah-e Novin mobile app; •Growing the market share (attracting new customers) and share in costumers’ portfolio; •Developing value chain system for corporate customers; •Evolving the branches including positioning, improving the personnel’s knowledge / skills, new roles, and profitability based on the changes of costumers’ needs and business environment necessities •Establishing productive management in subsidiaries for accurate performance evaluation, creating isotropy in the Bank’s strategies with annual budgets and recognizing subsidiaries’ share in realization of the Bank’s goals; •Identifying and implementing Financial Supply Chain Management processes; •Developing plans to sell products and banking / financial services based on customers’ needs in target markets; •Optimizing resources portfolio through increase of cheap resources with execution of marketing programs; •Synergy with subsidiaries and codifying the products; •Initial public offering of EN Leasing Co. in stock market; •Perform necessary measures for acceptance of Pardakht Novin Arian in OTC stock market; •The project of preparing the Bank’s processes with aim to identifying the current situation of the Bank’s processes and optimizing the business processes; •Obtaining standard certificate for improving various business processes and quality; •Advancing the strategies in holding level, cross selling, and creating synergy among members of Eghtesad Novin Group. Risk Management •Improving the culture of risk management through codifying risk management framework, developing credit risk management system, developing databases for collecting data on losses caused by operational risk, and optimizing market and liquidity risk calculation models; •Implementing critical credit risk assessment using sensitivity model in accordance to theories and guidelines of the central bank; •Analyzing predictive model for loans default; •Making reputation risk management policies; •Preparing compliance risks and designing financial compliance risk management systems (tax, checks and capital market); •Bringing new versions of anti-money laundering, secure, profit calculation, Chakavak and Samat systems to operation; •Preparing the procedure of accurate assessment of third parties e.g. lawyers, consultants, etc. Human Resource Development •Planning and implementing the comprehensive human capital project of EN Bank; •Executing the project of jobs classification; •Upgrading the training system based on business needs; •Improving knowledge management. Social Responsibilities

•Increasing the Bank’s presence in social media; Annual Report 2019 •Following up on completion and operation of schools in the process of being built by the Bank. 17 18 Composition of Shareholders Composition of Shareholders Holding (%) Composition of Shareholders Holding (%) Holding (%) Composition of Shareholders11 Behshahr Tehran Tehran Construction Construction Industries Industries Investment Investment Co. Co. 8.74% 8.74% Holding (%) 1 Behshahr Tehran Construction Industries Investment Co. 8.74% 2 Behpakhsh Co, 8.73% Composition of Shareholders Composition of Shareholders21 BehpakhshBehshahr Tehran Co, Construction Industries Investment Co. 8.73%8.74% 2 Behpakhsh Co, 8.73% Composition of Shareholders 3 Behshahr Industries Group Investment Co. (BIGIC) Holding6.45% (%) Annual Report 2019 Holding (%) 32 BehshahrBehpakhsh Industries Co, Group Investment Co. (BIGIC) 6.45%8.73% Holding (%) Composition of Shareholders14 Behshahr SugarTehran Industries Construction Development Industries Management Investment Co. Co.) 8.74%5.55% 1 Behshahr Tehran Construction Industries Investment Co. 8.74% 433 BehshahrBehshahr IndustriesSugar Industries Industries Group Group Development InvestmentInvestment Co. Co. Management (BIGIC) (BIGIC) Co.) Holding5.55%6.45% (%) 6.45% Composition of Shareholders1 Behshahr Tehran Construction Industries Investment Co. 8.74% 25 BehpakhshIran Construction Co, Investment Co. 8.73%5.08% 2 Behpakhsh Co, Holding8.73% (%) Composition of Shareholders54 IranBehshahr Construction Sugar Industries Investment Development Co. Management Co.) 5.08%5.55% 21 BehpakhshBehshahr Tehran Co, Construction Industries Investment Co. 8.73%8.74% 36 BehshahrJavanan Housing Industries Co. Group Investment Co. (BIGIC) Holding6.45%4.86% (%) Composition of Shareholders3 4 BehshahrBehshahr Sugar Industries Industries Group Development Investment Management Co. (BIGIC) Co.) 6.45% 5.55% 651 JavananIranBehshahr Construction Housing Tehran Co. ConstructionInvestment Co. Industries Investment Co. 4.86%5.08%8.74% 32 BehshahrBehpakhsh Industries Co, Group Investment Co. (BIGIC) Holding6.45%8.73% (%) Composition of Shareholders47 BehshahrSaramad Behshahr Sugar Industries Industrial Development Co. Management Co.) 5.55%4.06% 41 Behshahr SugarTehran Industries Construction Development Industries Management Investment Co. Co.) 5.55%8.74% 762 SaramadJavananBehpakhsh Housing Behshahr Co, Co. Industrial Co. Holding4.06%4.86%8.73% (%) 43 Behshahr IndustriesSugar Industries Group Development Investment Co. Management (BIGIC) Co.) 5.55%6.45% Composition of Shareholders518 IranBehshahrMehr Construction Ayandegan Tehran ConstructionFinancialInvestment Development Co. Industries GroupInvestment Co. 5.08%8.74%0.00% 525 IranBehpakhsh ConstructionIran Co, Construction Investment Investment Co. Co. 5.08%8.73% 5.08% Composition of Shareholders8 73 Mehr SaramadBehshahr Ayandegan Behshahr Industries Financial Industrial Group DevelopmentInvestment Co. Co. Group (BIGIC) Holding0.00%4.06%6.45% (%) 514 IranBehshahr Construction SugarTehran Industries ConstructionInvestment Development Co. Industries Management Investment Co. Co.) 5.08%8.74%5.55% 629 JavananBehpakhshAyandeh Housing Pooya Co, Project Co. and Development Management Co. 4.86%8.73%3.51% 63 JavananBehshahr Housing Industries Co. Group Investment Co. (BIGIC) Holding4.86%6.45% (%) Composition of Shareholders984 AyandehMehrBehshahr Ayandegan Pooya Sugar ProjectIndustries Financial and DevelopmentDevelopment Development ManagementGroup Management Co.) Co. 3.51%0.00%5.55% 6251 JavananBehpakhshIranBehshahr Construction Housing Tehran Co, Co. ConstructionInvestment Co. Industries Investment Co. 4.86%8.73%5.08%8.74% 73106 SaramadBehshahrBehpak Industrial Behshahr IndustriesJavanan Co. Industrial Group Housing Investment Co. Co. Co. (BIGIC) Holding4.06%6.45%2.90% (%) 4.86% Composition of Shareholders741 SaramadBehshahr Behshahr SugarTehran Industries Construction Industrial Development Co. Industries Management Investment Co. Co.) 4.06%5.55%8.74% 1095 BehpakAyandehIran Construction Industrial Pooya Project InvestmentCo. and Development Co. Management Co. 2.90%3.51%5.08% 7362 SaramadBehshahrJavananBehpakhsh Housing Behshahr Industries Co, Co. Industrial Group Investment Co. Co. (BIGIC) Holding4.06%6.45%4.86%8.73% (%) Composition of Shareholders84 11 MehrBehshahr Tehran Ayandegan Renovation Sugar Industries Financial and Construction DevelopmentDevelopment Co. ManagementGroup Co.) 0.00%5.55%2.87% 68521 JavananMehrIranBehpakhshBehshahr Construction Ayandegan Housing Tehran Co, Co. ConstructionFinancialInvestment Development Co. Industries GroupInvestment Co. 4.86%0.00%5.08%8.73%8.74% 1110 TehranBehpak RenovationIndustrial Co. and Construction Co. Holding2.87%2.90% (%) Composition of Shareholders84737 MehrBehshahrSaramad Ayandegan Behshahr IndustriesSugarSaramad Industries Financial BehshahrIndustrial Group DevelopmentDevelopmentInvestment Industrial Co. Co. Co. ManagementGroup (BIGIC) Co.) 0.00%5.55%4.06%6.45% 4.06% 91512 AyandehBehshahrIranSamaneh Construction PooyaStratusTehran Project HoldingConstructionInvestment and Co. Development Co. Industries Investment Management Co. Co. 3.51%8.74%5.08%2.12% 7 6932 Saramad JavananAyandehBehshahrBehpakhsh Housing BehshahrPooya Industries Co, Project Co. Industrial Group and Investment Development Co. Co. Management (BIGIC) Co. Holding4.06%4.86%3.51%6.45%8.73% (%) Composition of Shareholders41211 BehshahrSamanehTehran Renovation StratusSugar Industries Holding and Construction Co. Development Co. Management Co.) 5.55%2.12%2.87% 139158 ParsianAyandehBehshahrIranMehr Construction Ayandegan Bank Pooya Tehran Financial Project ConstructionFinancialInvestment Group and Development Development Co.Co. Industries GroupInvestment Management Co. Co. 2.11%3.51%8.74%5.08%0.00% 31026 BehshahrBehpakBehpakhshJavanan Industrial Housing Industries Co, Co. Co. Group Investment Co. (BIGIC) Holding6.45%2.90%8.73%4.86% (%) 181074 BehshahrMehrBehpakSaramad Ayandegan Industrial Behshahr SugarTehran Industries ConstructionFinancialCo. Industrial DevelopmentDevelopment Co. Industries Management GroupInvestment Co. Co.) 8.74%0.00%2.90%4.06%5.55% Composition of Shareholders513128 IranParsianSamaneh MehrConstruction Bank AyandeganStratus Financial HoldingInvestment Financial Group Co. Development Co.Co. Group 5.08%2.11%2.12% 0.00% 10269 BehpakBehpakhshJavananAyandeh Industrial Housing Pooya Co, Project Co. Co. and Development Management Co. 2.90%8.73%4.86%3.51% 113714 TehranBehshahrSaramadNovin Housing Renovation Behshahr Industries Co. Industrialand Group Construction Investment Co. Co. Co. (BIGIC) Holding2.87%6.45%4.06%2.10% (%) 111854 BehshahrTehranMehrIran Construction Ayandegan Renovation SugarTehran Industries ConstructionFinancialInvestment and Construction DevelopmentDevelopment Co. Industries Co. Management GroupInvestment Co. Co.) 8.74%2.87%0.00%5.08%5.55% 141329 NovinParsianBehpakhshAyandeh Housing Bank Pooya Co, Financial Co. Project Group and Development Co. Management Co. 2.10%2.11%8.73%3.51% 1137106 TehranBehshahrSaramadBehpakJavanan RenovationIndustrial Housing Behshahr Industries Co. Co. Industrialand Group Construction Investment Co. Co. Co. (BIGIC) 2.87%6.45%4.06%2.90%4.86% 124815 SamanehBehshahrMehrCivil Servants Ayandegan StratusSugar Pension Industries HoldingFinancial Organization Co. DevelopmentDevelopment Investment ManagementGroup Co. Co.) 2.12%5.55%0.00%2.10% 21129659 AyandehBehpakhshBehshahrSamanehAyandehJavananIran Construction Pooya Housing PooyaStratusTehran Co, Project Project Co. HoldingConstructionInvestment and and Development Co. Development Co. Industries Management Investment Management Co. Co. Co. 8.73%8.74%2.12%3.51%4.86%5.08% 3.51% 1514310 CivilNovinBehshahrBehpak Servants Housing Industrial Industries Pension Co. Co. Group Organization Investment Investment Co. (BIGIC) Co. 2.10%6.45%2.90% 1248117 SamanehBehshahrMehrTehranSaramad Ayandegan Renovation BehshahrStratusSugar Industries HoldingFinancial Industrialand Construction Co. DevelopmentDevelopment Co. Co. ManagementGroup Co.) 2.12%5.55%0.00%2.87%4.06% 135916 ParsianIranAyandehBank Construction KarAfarin Bank Pooya Financial Co. Project Investment Group and Development Co.Co. Management Co. 2.11%5.08%3.51%1.82% 31310276 BehshahrParsianBehpakBehpakhshSaramadJavanan BankIndustrial Housing Behshahr Industries Co, Financial Co. Co. Industrial Group Group Investment Co. Co. (BIGIC) 6.45%2.11%2.90%8.73%4.06%4.86% 1615411 BankCivilBehshahrTehran Servants KarAfarin Renovation Sugar Pension Co. Industries and Organization Construction Development Investment Co. Management Co. Co.) 1.82%2.10%5.55%2.87% 1359128 ParsianIranAyandehSamanehMehr Construction Ayandegan Bank PooyaStratus Financial Project HoldingFinancialInvestment Group and Co. Development Development Co.Co. Group Management Co. 2.11%5.08%3.51%2.12%0.00% 146101710 NovinJavananBehpakBehshahr Housing Industrial Housing Industries Co.Behpak Co. Co. Develeopment Industrial Co. Co. 2.10%4.86%2.90%1.57% 2.90% 43141187 BehshahrNovinTehranMehrSaramad AyandeganHousing Renovation Behshahr IndustriesSugar Co. Industries Financial Industrialand Group Construction DevelopmentDevelopmentInvestment Co. Co. Co. ManagementGroup (BIGIC) Co.) 5.55%6.45%2.10%2.87%0.00%4.06% 1716512 BehshahrBankIranSamaneh Construction KarAfarin StratusIndustries Co. HoldingInvestment Develeopment Co. Co. Co. 1.57%1.82%5.08%2.12% 14610139 NovinJavananBehpakParsianAyandeh Housing BankIndustrial Housing Pooya Financial Co. Project Co. Co. Group and Development Co. Management Co. 2.10%4.86%2.90%2.11%3.51% 1571118 CivilSaramadTehran Servants Renovation Behshahr Pension Industrialand OrganizationFund Construction Co. Investment Co. Co. 2.10%4.06%2.87%1.56% 54151298 IranBehshahrCivilSamanehAyandehMehr ConstructionServants Ayandegan PooyaStratusSugar Pension ProjectIndustries HoldingFinancialInvestment Organization and Co. DevelopmentDevelopment Development Co. Investment ManagementGroup Management Co. Co.) Co. 5.08%5.55%2.10%2.12%3.51%0.00% 1817613 CivilBehshahrJavananParsian Servants Bank Housing Industries FinancialPension Co. Develeopment FundGroup Co. Co. 1.56%1.57%4.86%2.11% 157111410 CivilSaramadTehranNovinBehpak Servants Housing RenovationIndustrial Behshahr Pension Co. Co. Industrialand Organization Construction Co. Investment Co. Co. 2.10%4.06%2.87%2.90% 168121911 BankMehrSamanehMadar KarAfarinAyandegan InvestmentTehran Stratus Renovation Co. HoldingFinancial Management and Co. Development Construction Co. Co.Group 1.82%0.00%2.12%1.36% 2.87% 616135109 JavananBankParsianIranBehpakAyandeh Construction KarAfarin BankIndustrial Housing Pooya Financial Co. Project Co. InvestmentCo. Group and Development Co.Co. Management Co. 4.86%1.82%2.11%5.08%2.90%3.51% 1918714 MadarCivilSaramadNovin Servants Housing Investment Behshahr Pension Co. ManagementIndustrial Fund Co. Co. 1.36%1.56%4.06%2.10% 168121511 BankMehrSamanehCivilTehran Servants KarAfarinAyandegan Renovation Stratus Pension Co. HoldingFinancial and Organization Construction Co. Development Investment Co. Group Co. 1.82%0.00%2.12%2.10%2.87% 1791320 BehshahrAyandehParsianOther Legal Bank Pooya Industries Entities Financial Project Develeopment Group and Development Co. Co. Management Co. 11.41%1.57%3.51%2.11% 7176141110 SaramadBehshahrJavananNovinTehranBehpak Housing RenovationIndustrial Housing Behshahr Industries Co. Co. Co. Industrialand Develeopment Construction Co. Co. Co. 4.06%1.57%4.86%2.10%2.87%2.90% 2019815 OtherMadarMehrCivil Servants AyandeganLegal Investment Entities Pension Financial Management Organization Development Co. Investment Group Co. 11.41%1.36%0.00%2.10% 17913161212 BehshahrAyandehParsianBankSamaneh KarAfarin Bank PooyaStratusIndustriesSamaneh Financial Co. Project Holding Develeopment Stratus Group and Co. DevelopmentHolding Co. Co. Management Co. 1.57%3.51%2.11%1.82%2.12% 2.12% 18101421 CivilBehpakNovinIndividuals Servants Housing Industrial (68,115 Pension Co. Co. Shareholders) Fund 21.11%1.56%2.90%2.10% 187151211 CivilSaramadSamanehTehran Servants Renovation BehshahrStratus Pension Holding Industrialand FundOrganization Construction Co. Co. Investment Co. Co. 1.56%4.06%2.10%2.12%2.87% 21209168 IndividualsOtherAyandehBankMehr KarAfarin AyandeganLegal Pooya (68,115 Entities Co. Project Financial Shareholders) and Development Development Group Management Co. 21.11%11.41%3.51%1.82%0.00% 1810141713 CivilBehpakNovinBehshahrParsian Servants Housing BankIndustrial Industries FinancialPension Co. Co. Develeopment FundGroup Co. Co. 1.56%2.90%2.10%1.57%2.11% 191115 MadarTehranCivil Servants InvestmentRenovation Pension Managementand Organization Construction Co. Investment Co. Co. 1.36%2.87%2.10% 9 191681312 Ayandeh MadarBankMehrParsianSamaneh KarAfarinAyandegan Investment Bank PooyaStratus Financial Co. Project HoldingFinancial Management Group and Co. Development Development Co. Co. Group Management Co. 3.51%1.36%1.82%0.00%2.11%2.12% 21101713 IndividualsBehpakBehshahr Industrial Industries Parsian(68,115 BankCo. Shareholders) Develeopment Financial Group Co. Co. 21.11%2.90%1.57% 2.11% 1911151814 MadarTehranCivilNovin Servants Housing InvestmentRenovation Pension Co. Managementand OrganizationFund Construction Co. Investment Co. Co. 1.36%2.87%2.10%1.56% 201216 OtherSamanehBank KarAfarin Legal Stratus Entities Co. Holding Co. 11.41%2.12%1.82% 1792014 13 BehshahrAyandehOtherNovin Parsian LegalHousing Bank Pooya Industries Entities Financial Co. Project Develeopment Group and Development Co. Co. Management Co. 11.41%1.57%3.51%2.10%2.11% 111810 TehranCivilBehpak Servants RenovationIndustrial Pension Co. and Fund Construction Co. 2.87%1.56%2.90% 2012161915 OtherSamanehBankMadarCivil Servants KarAfarin Legal Investment Stratus Entities Pension Co. Holding Management Organization Co. Co. Investment Co. 11.41%2.12%1.82%1.36%2.10% 132117 ParsianIndividualsBehshahr Bank Industries (68,115 Financial Shareholders) Develeopment Group Co. Co. 21.11%2.11%1.57% 152114 CivilIndividualsNovin Servants Housing (68,115 Pension Co. Shareholders) Organization Investment Co. 21.11%2.10% 121911101814 SamanehMadarTehranBehpakCivil Servants Investment RenovationIndustrial Stratus Pension NovinHolding Co. Managementand Fund Housing Construction Co. Co. Co. Co. 2.12%1.36%2.87%2.90%1.56% 2.10% 2113172016 IndividualsParsianBehshahrOtherBank KarAfarin Legal Bank Industries (68,115 Entities Financial Co. Shareholders) Develeopment Group Co. Co. 21.11%11.41%2.11%1.57%1.82% 1514 18 CivilNovin Servants Housing Pension Co. OrganizationFund Investment Co. 2.10%1.56% 132012191116 ParsianOtherSamanehMadarTehranBank KarAfarin Legal Investment RenovationBank Stratus Entities Financial Co. Holding Management and Group Construction Co. Co. Co. Co. 11.41%2.11%2.12%1.36%2.87%1.82% 181721 CivilBehshahrIndividuals Servants Industries (68,115 Pension Shareholders) Develeopment Fund Co. 21.11%1.56%1.57% 14 Novin Housing Co. 2.10% 16151915 BankCivilMadarCivil Servants KarAfarin ServantsInvestment Pension PensionCo. Management Organization Organization Co. InvestmentInvestment Co. Co. 1.82%2.10%1.36% 2.10% 2113122017 IndividualsParsianSamanehOtherBehshahr Legal Bank StratusIndustries (68,115 Entities Financial Holding Shareholders) Develeopment Group Co. Co. Co. 21.11%11.41%2.11%2.12%1.57% 14 Novin Housing Co. 2.10% 151918 CivilMadar Servants Investment Pension Management OrganizationFund Co. Investment Co. 2.10%1.36%1.56% 17 1620 Behshahr BankOther KarAfarin Legal Industries Entities Co. Develeopment Co. 11.41%1.57%1.82% 1514131821 CivilNovinParsianIndividuals Servants Housing Bank (68,115 FinancialPension Co. Shareholders) OrganizationFundGroup Co. Investment Co. 21.11%2.10%2.11%1.56% 19 Madar Investment Management Co. 1.36% 21162016 IndividualsBankOther KarAfarin Legal (68,115 Entities Co.Bank Shareholders) KarAfarin Co. 21.11%11.41%1.82% 1.82% 1817 CivilBehshahr Servants Industries Pension Develeopment Fund Co. 1.56%1.57% 16151419 BankCivilNovinMadar Servants KarAfarin Housing Investment Pension Co.Co. Management Organization Co. Investment Co. 1.82%2.10%1.36% 2120 IndividualsOther Legal (68,115 Entities Shareholders) 21.11%11.41% 17 Behshahr Industries Develeopment Co. 1.57% 1918 MadarCivil Servants Investment Pension Management Fund Co. 1.36%1.56% 17161520 BehshahrBankCivilOther Servants KarAfarin Legal Industries Entities Pension Co. Develeopment Organization InvestmentCo. Co. 11.41%1.57%1.82%2.10% 182117 CivilIndividuals ServantsBehshahr (68,115 Pension Industries Shareholders) Fund Develeopment Co. 21.11%1.56% 1.57% 19 Madar Investment Management Co. 1.36% 17162120 BehshahrBankIndividualsOther KarAfarin Legal Industries (68,115 Entities Co. Shareholders) Develeopment Co. 21.11%11.41%1.57%1.82% 18 Civil Servants Pension Fund 1.56% 19 Madar Investment Management Co. 1.36% 2120 IndividualsOther Legal (68,115 Entities Shareholders) 21.11%11.41% 19181718 MadarCivilBehshahr Servants Investment Industries CivilPension Servants Management Develeopment Fund Pension Co. Fund Co. 1.36%1.56%1.57% 1.56% 20 Other Legal Entities 11.41% 21 Individuals (68,115 Shareholders) 21.11% 18 Civil Servants Pension Fund 1.56% 14 Annual Report 2019 OtherMadar Legal Investment Entities Management Co. 11.41%1.36% 21EN Bank Individuals (68,115 Shareholders) 21.11% 14 Annual Report 2019EN19 Bank OtherMadar Legal InvestmentMadar Entities Investment Management Management Co. Co. 11.41%1.36% 1.36% 21 Individuals (68,115 Shareholders) 21.11%

14 Annual Report EN Bank 2120 IndividualsOther Legal (68,115 Entities Shareholders) 21.11%11.41%

20 Other Legal Entities 11.41% 21 Individuals (68,115 Shareholders) 21.11% 14 Annual Report EN Bank Annual Report EN Bank 14 Annual Report EN Bank 21 Individuals (68,115 Shareholders) 21.11% 14 Annual Report EN Bank

14 Annual Report EN Bank

14 Annual Report EN Bank 14 Annual Report EN Bank

14 Annual Report EN Bank

14 Annual Report EN Bank 14 Annual Report EN Bank

14 Annual Report EN Bank

14 Annual Report EN Bank 14 Annual Report EN Bank

14 Annual Report EN Bank

Board of Directors

The Authorities and Duties of the Board Members According the Bank’s article of association, the board of directors is responsible for policymaking, supervision on administration of affairs, observing the laws and regulations and the Bank’s risk management. The board of directors is authorized to take any action in the Bank’s name and any operation and transaction related to the Bank, for which the general meeting isn’t explicitly qualified; including but not limited to approving the Bank’s internal regulations, approving the organizational structure, employment conditions and payment regulations, approving the bank’s annual budget, providing with annual and interim financial statements and reports on board of directors’ activities in the boundaries of the Central Bank of Islamic Republic of Iran and presenting them to inspectors and auditors, designating the authorized people for signatures, calling for ordinary and extraordinary general meetings and determining the agendas for them, proposing to divide any reserved asset but the legal reserves, proposing to divide profits among shareholders, proposing amendments to the article of association to the general meeting, and also further responsibilities that the partial amendment to the Commerce Law has put upon the board of directors. In addition, the board of directors is to delegate those authorities that consist of executive affairs to the executive board. Board Members Pursuant to the Bank’s general meeting in August 18, 2019, the members of the board for the fiscal year ended as of March 2019 is as follow:

Full Name Position Education

Mohammad Ali Izadi Chairman of the Board Master of Public Management Ali Amani Vice Chairman of the Board Bachelor of Banking Alireza Bolgouri Member of the Board Master of Accounting Gholamhossein Ahmadi Member of the Board PhD of Marketing Management Morteza Moayeri Member of the Board PhD of Accounting Annual Report 2019 19 20 Highlights of EN Bank's Board Members' Professional and Academic Records: Mohammad Ali Izadi (Chairman of the Board): Bank Eghtesad Novin: Chairman of the Board, since August 24, 2019, Central Insurance Investment Co.: Chairman of the Board, 2016 – 2018, Bank Melli Iran: Member of Executive Board and HR and Training Deputy of CEO, 2013 Annual Report 2019 - 2016, Iran Transfo Co.: Chairman of Board, 2014 – 2015, Qazvin – Tabriz Freeway Co.: Chairman of Board, 2015-2016, Toseeh Sina Co.: Chairman of Board, 2008 – 2013, Sina Bank: Member of Executive Board and Branches Affairs and HR Deputy of CEO, 2006 – 2013 Islamic Republic of Iran's President's Office: The President's Advisor and General Manager of International Public Relations, 2001 – 2005, Khadamat Mohandesi Moshaver Iran Co. (Iran Consulting Engineering Services): Chairman of Board, 1999 – 2003, Consultant to the President's Executive Deputy, 1998 – 2001, IRIB: Initiator and Founder of Jam-e Jam international TV station, 1996 – 1998, IRIB: Regional Office Director in Germany, 1992 – 1998, IRIB: Managing Director's Advisor, 1990 – 1992, IRIB: Managing Director's deputy in Radio Stations' Affairs, 1988 – 1990, IRIB: General Manager in News Section, 1982 – 1988.

Ali Amani (Vice Chairman of the Board): Bank Eghtesad Novin: Vice Chairman of the Board, since May 31, 2020 and member of the board since August 18 2019, Bank Eghtesad Novin: Director of Auditing Committee, Active in Iran Auditing Organization for 18 years, 12 years of which as Technical Manager of Auditing of Governmental Banks, Eghtesad Novin Exchange and Currency Services Co.: Member of Board, 2019 – May 2020, Bank Iran Zamin: Member of Auditing Committee, 2013 – 2019, Kish Credit Card Co.: 2013 – 2019, Daya Rayan and Daya Rahyaft Accounting Firms: CEO and member of Board, 2001 – 2015, Certified Accountant, Official Expert of Judicial, and Independent Accountant, Member of High Council of Iranian Institute of Certified Accountants (2002 – 2006), Member of High Board of Supervision of Iranian Association of Certified Public Accountants (IACPA), 2003 – 2007, Member of New York State Society of Certified Public Accountants (U.S.A). Alireza Bolgouri (CEO and Member of the Board): Bank Eghtesad Novin: Member of the Board since May 31, 2020 and Vise Chairman of Board since August 18 2019, Bank Eghtesad Novin: Chief Executive Officer since December 17, 2017, Eghtesad Novin Exchange and Currency Services Co.: Member of Board, 2013 – 2015 and 2016 – 2019, Kharazmi Investment Co.: Member of Board, 2016 – 2017, Eghtesad Novin Support and Services Co.: 2016 – 2017, Bank Maskan: Obligatory Board member, 2013 – 2016, Maskan Financial Group Co.: Board member, 2014 – 2015, Maskan Investment Co.: Board member, 2014 – 2015, Paidar Iranian Construction and Development Investment Co.: Board member, 2013 – 2015 Samandehi Motalebat Moavvag Co.: Board member, 2012 – 2014, Parsian Bank Exchange Co.: Board member, 2006 – 2007, Bank Eghtesad Novin: Collection and Legal Deputy of CEO, Bank Eghtesad Novin: Financial and Treasury Director, Parsian Bank: Financial Director. Gholamhossein Ahmadi (Board Member): Bank Eghtesad Novin: Member of the Board since August 18, 2019, Taamin Sarmaye Maskan Co. (Maskan Housing Finance Co.): Chairman of board, 2014 – 2019, Member of board in fallowing organizations: Isfahan Cement Co., Hamedanian Charity Institute Holdings, and Yadegar Investment Co., 2011 – 2019, Bank Maskan: Project and Planning Consultant, 2014 – 2019, Bank Eghtesad Novin: CEO Advisor and Director of Managing Companies, 2009 – 2013. Morteza Moayeri (Board Member) Bank Eghtesad Novin: Member of the Board since August 18, 2019, Association of Private Banks and Credit Institutes: Member of Executive Board, since October 2019, Bank Eghtesad Novin: Executive High Council of CEO, 2018 – 2019, Tamin Atie Derakhshan Novin Co: Chairman of Board and Director of Auditing Committee, 2017 – 2018, Tamin Sarmaye Maskan Co.: Member of auditing committee, 2016 – 2019, Bank Eghtesad Novin: Director of Project and Planning, 2017 – 2018, Bank Eghtesad Novi: Director of Planning, Budget and Strategic Studies Department, 2013 – 2017, Public Servants' Pension Fund: Senior Auditor, 2006 – 2008. Board Meetings and Members’ Attendance Through the year, the board held 45 meetings for making decisions regarding the Bank’s strategic matters, most of which were attended by all or majority of board members. The outcome of the board meetings throughout the fiscal year ended March19 2020, was a total of 369 directorial decisions. Board members’ salary, non-obligated members’ attendance fee, the members’ reward by the general meeting of shareholders, and CEO’s salary and performance rewards are among the matters about which are upon the board to make decision. It is noteworthy that senior managers’ and the rest of personnel’s salary and rewards is executed according to regulations and decisions made by the Board of Directors. Annual Report 2019

22 Executive Board Members Annual Report 2019

Alireza Bolgouri

Morteza Moayeri Mohammad Rabi’ Zadeh Mohammad Sadeghi Nima Mohammadi Toodeshki

Full Name Position Education

Alireza Bolgouri CEO Master of Accounting Morteza Moayeri Financial And Support Deputy PhD in Accounting Mohammad Rabi' Zadeh Businesses Deputy Master of Political Sciences Mohammad Sadeghi IT Deputy B.A of Software Nima Mohammadi Toodeshki Credits and International Deputy PhD in Financial Management Position in the Industry As the most important element in monetary market, the banks play a vital role in countries' economy. The expansion of financial markets in today's world have given more dimensions that are extensive to the activity of the banks and financial institutes, and economic development is undoubtedly impossible with ignoring the role of banking and monetary markets. The liquidity growth in years 2013 to 2018, which mostly stemmedPosition infrom the industry high interest rates, led to a considerable increase of liquidity of deposits in banking network andAs slowed the most itsimportant momentum element towards in monetary the market, real partthe banks of economy play a vital. role One in ofcountries' the concerns economy. duringThe expansion those of years financi wasal markets inPosition today's inworld the haveindustry given more dimensions that are extensive to the activity of the banks and financial institutes, and theeconomic release development of the liquidity is undoubtedly that was impossible caged inwith the ignoring banking the role network of banking. The and fear monetary was thatmarkets. after The banks' liquidity capacitygrowth As the most important element in monetary market, the banks play a vital role in countries' economy. The expansion of financial in years 2013 to 2018, which mostly stemmed from high interest rates, led to a considerable increase of liquidity of deposits in to pay themarkets high interest in today's rates world is weakened,have given more the dimensionsliquidity that that is are created extensive as tothe the interest activity ratesof the isbanks mobilized and financial and institutes, and banking network and slowed its momentum towards the real part of economy. One of the concerns during those years was the causerelease further ofeconomic the inflation,liquidity development that the was consequences caged is undoubtedly in the banking of impossible which network. were withThe fear moreignoring was evident that the afterrole in ofbanks' the banking year capacity and ended tomonetary pay March the highmarkets. 19,2020, interest The liquidity growth andrates caused is weakened,in theyears liquidity 2013 the liquidity to 2018,as the that which mostis created mostly important as stemmedthe interest index from rates in high Iran'sis mobilized interest economy and rates, cause faceled further to a a notable considerable inflation, growth, the increase consequences to the of liquidity point of of deposits in wherewhich the wereb amountanking more networkevident of liquidity in and the slowed year which ended its at momentum theMarch end 20 ofth towards2020, the yearand the caused ending real partthe March liquidityof economy. 20,2019 as the One most wasof importanthe 18,829,000 concernst index during in Iran'sbillion those years was the economyrelease face a notable of the growth,liquidity to that the pointwas caged where inthe the amount banking of liquidity network. which The at fear the wasend ofthat the after year endingbanks' Marchcapacity 20 thto 2019 pay the high interest IRRs,was have18,829,000rates an overi sbillion weakened, 31 IRRs,.3% have the growth anliquidity over during31.3% that growthis thecreated yearduring as and thethe yearinterestexceed and ratesexceed 24,700,000 is 24,700,000 mobilized billion billionand cause IRRs IRRs atfurther theat theend inflation, ofend the ofyear the the consequences of yearended ended Marwhichch March 20 thwere 2020. 19,2020 more evident. in the year ended March 20th 2020, and caused the liquidity as the most important index in Iran's economy face a notable growth, to the point where the amount of liquidity which at the end of the year ending March 20th 2019 Percent was 18,829,000 billion IRRs,Liquidity have an Growthover 31.3% Rate growth through during 2003 the yearto 2019 and exceed 24,700,000 billion IRRs at the end of the year 45 th ended March 20 2020.39,43 38,82 40 34,29 35 Percent30,25 Liquidity Growth30,80 Rate through30,00 2003 to 2019 31,30 27,73 30 26,1045 25,17 39,4323,91 38,8223,20 23,10 25 22,33 22,10 40 34,29 19,44 20 15,92 35 30,25 30,80 30,00 31,30 15 27,73 30 26,10 23,91 25,17 10 22,33 23,20 22,10 23,10 25 19,44 20 15,92 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 15 Because of the increase10 of liquidity in the year ending March 20, 2020 in relation to the previous year, the balance of banking network had an increase of about 31.4% as well and from February 20, 2020 to March 20, 2020 reached 27,163,000 billion IRRs.

BecauseDuring this of theperiod, increase the collective of 2003 liquidity account2004 balancein2005 the year2006 of Bank ending2007 Eghtesad2008 March Novin,2009 19, despite2010 20202011 not participating in2012 relation2013 in to2014 the the unhealthy2015 previous2016 competi2017 year,tion2018 the 2019 balanceof upping of thebanking interest network rates, had hadan increase an increase of 47% and of about reached 31 515,000.4% asbillion well IRRs. and from February 19, 2020 to March 19, 2020Because reached of 27,163,000the increase of liquiditybillion IRRsin the. yearDuring ending this March period, 20, 2020the collectivein relation toaccount the previous balance year, of the Bank balance of banking network had an increase of about 31.4% as well and from February 20, 2020 to March 20, 2020 reached 27,163,000 billion IRRs. Eghtesad DuringNovin, this despite period, not the participating collective account in the balance unhealthy of Bank competitionEghtesad Novin, of despite upping not the participating interest rates, in the hadunhealthy an competition Comparison of changing percentage of entities' account balances in EN Bank and the collective banking network during the of upping the interest rates, had an increase of 47% and reached 515,000 billion IRRs. increaseyear ended of 47% March and 19 , reached2020 515,000 billion IRRs. Comparison of changing percentage of entities' account balances in EN Bank and the collective banking network(Amounts during in 1000 the billion year IRRs ended) March 19, 2020 Account Balance March 19, 2020 March 20, 2019 Change % Comparison of changing percentage of entities' account balances in EN Bank and the collective banking network during the (AmountsBanking in 1000Networyear billionendedk IRRs) March 19, 2020 27.163 20.673 31.40% AccountEN Bank Balance (Entities' Accounts) March 19, 2020515 March 20,350 2019 Change47% % EN Bank's( Asharemounts from in the 1000 Account billion balance IRRs) of Banking Network 1.9% 1.7% 11.9%

Banking NetworkAccount Balance 27.163 March 1920, .2020673 March 20,31. 40%2019 Change % EN Bank (Entities’Banking Accounts) Network 515 27.163350 20.67347% 31.40% 31/4% 47% EN Bank (Entities' Accounts) 515 350 47% EN Bank’s share from the Account balance of Banking EN Bank's share from the Account balance of Banking1 Network.9% 1.9%1. 7% 1.7%11 .9% 11.9% Network

31/4% 47%

Banking Network Bank Eghtesad Novin

20 Annual Report EN Bank Annual Report 2019

Banking Network Bank Eghtesad Novin 23

20 Annual Report EN Bank

24 Banks are the main suppliers of financial resources for the real sections of economy (industry, agriculture, and services), and alongside this function, banks' main motivation for equipping and allocating of resources and providing various services to customers, as in all other economic institute, is to generate revenue and gain profit, ergo the balance of granted facilities from February 19, 2020 to March 19, 2020 has grown 28.3% in relation to the same period in previous year reached 19,356,000 billion IRRs. During current economic situation in Iran, the flow of granting bank facilities didn't stop in Bank Eghtesad Novin throughout

Annual Report 2019 the year ended March 19, 2020 and the facilities balance in March 19, 2020 was around 459,000 billion IRRS, which is 46.5% more than the same date in previous year. Banks are the main suppliers of financial resources for the real sections of economy (industry, agriculture, and services), and alongside this function, banks' main motivation for equipping and allocating of resources and providing various services to Changes ofcustomers, granted as in facilities all other economic of EN institute, Bank inis to comparison generate revenue with and gainthe profit, overall ergo bankingthe balance networkof granted fa incilities the from year ended March 19,February 2020: 20, 2020 to March 20, 2020 has grown 28.3% in relation to the same period in previous year reached 19,356,000 billion IRRs. During current economic situation in Iran, the flow of granting bank facilities didn't stop in Bank Eghtesad Novin throughout the year ended March 20, 2020 and the facilities balance in March 20, 2020 was around 459,000 billion IRRS, which is 46.5% more Amounts inthan 1000 the Billion same date IRRs in previous year. Facilities Balance March 19, 2020 March 20, 2019 Change %

Banking NetworkChanges of granted facilities of EN Bank in comparison with the overall19. 356banking network in the year15 ended.09 March 19, 2020: 28.30% EN Bank 459 Amounts314 in 1000 Billion IRRs46 .50% Facilities Balance March 20, 2020 March 20, 2019 Change % EN Bank's shareBanking from Network the facilities balance of the banking 19.356 15.09 28.30% EN Bank 2 .40% 459 1314.20% 46.50% 14.2 network EN Bank's share from the facilities balance of the banking network 2.40% 1.20% 14.2

46/5% 28/3%

Overall Banking Network Bank Eghtesad Novin

Annual Report EN Bank 21

Business Profile Annual Report 2019 25 26 Retail Banking EN Bank is currently operating a network of 241 branches across the country which includes 102 branches across Tehran, 137 branches in other provinces and 2 branches in free zones, culminating one of the largest retail networks among Iranian private sector banks. The drop in the number of branches is due to first regulations and restrictions set by ICB and second the Annual Report 2019 result of EN Bank focusing on offering and encouraging customers to use remote banking (internet banking, SMS banking, et.), which as is mentionedRetail Banking further ahead, proved fruitful. EN Bank is currently operating a network of 241 branches across the country which includes 102 branches across Tehran, 137 branches in Branches & Outlets other provinces and 2 branches in free zones, culminating one of the 248 largest retail networks among Iranian private sector banks. 247 246 The drop in the number of branches is due to first regulations and 245 restrictions set by ICB and second the result of EN Bank focusing on 244 offering and encouraging customers to use remote banking (internet 243 banking, SMS banking, et.), which as is mentioned further ahead, 242 proved fruitful. 241 240 239 238 March 20, 2018 March 20, 2019 March 19, 2020

Number of ATMs Number of ATMs Location Possession Number of ATMs Location PossessionBranches in Tehran Number of ATMs 141 Branches in Other Cities 170 The Bank Branches in Tehran Out of Branches in Tehran 141 163 Out of Branches in Other Cities 98 Branches in Other Cities Out of Branches Privately170 Owned 1,579 TheTotal Bank 2,151 Out of Branches in Tehran 163 Corporate Banking Out of Branches in Other Cities 98 Investment banking is an integral part of our corporate banking services, focusing on offering a full range of services to corporate Out of Branches and institutional clients.Privately Owned 1,579 Our corporate management teams are tasked with in-depth understanding and management of the sectors in which our clients Total operate, with the aim of adding value through detailed industry knowledge2,151 and design of structured financial solutions.

Clients are appointed sector-based client service teams which comprise account managers and product and industry specialists, in order to be able to devise the most suitable customized financial solutions. Each team supports the client’s operations, ensuring Corporate Bankinga full understanding of their business and financial needs.

EN Bank corporate teams, charged with providing structured financial solutions, are mainly entrusted with the following eight Investment banking is an integralsectors: part of our corporate banking services, focusing on offering a full range of services to corporate and institutional• Telecommunication clients. s Our corporate management teams• areAutomotive tasked with in-depth understanding and management of the sectors • Healthcare in which our clients operate, with the• aimConsumer of adding brands value through detailed industry knowledge and design of structured financial solutions. • Industrial Clients are appointed sector-based• clientEnergy service and utilities teams which comprise account managers and product and • Transport and logistics industry specialists, in order to be able• M toetals devise and mineral the most suitable customized financial solutions. Each team supports the client’s operations, ensuring a full understanding of their business and financial needs. EN Bank corporate teams, chargedCorporate with Banking providing Mentionable structured Achievements financial solutions, are mainly entrusted with the following eight sectors: • Received international award for high quality services in the field of corporate banking from ICS Group • Conducting the “Global Money Week” (GMW) for the second consecutive year as the sole coordinating agent in Iran. • Telecommunications • Corporate Banking Development in different Provinces of the country and appointing account managers with the aim of • Automotive offering desirable services to corporate banking customers. • Healthcare • Conducting Consulting Group Services in Marketing Management and corporate banking offices. • Consumer brands • Industrial Annual Report EN Bank 23

• Energy and utilities • Transport and logistics • Metals and mineral Corporate Banking Mentionable Achievements • Received international award for high quality services in the field of corporate banking from ICS Group • Conducting the “Global Money Week” (GMW) for the second consecutive year as the sole coordinating agent in Iran. • Corporate Banking Development in different Provinces of the country and appointing account managers with the aim of offering desirable services to corporate banking customers. • Conducting Consulting Group Services in Marketing Management and corporate banking offices. Electronic Banking

The Bank activated accesses to accept businesses from online banking, mobile banking, telephone banking Electronicand self-service Banking equipment to constantly improve customer experience. Electronic banking is at the heart of hethe ank Bank’s activated efforts accesses to create to accept value forbusinesses its ever fro growing online customer banking, base obile. As banking, shown intelephone the table ban andking graphs and below,selfservice euipent to constantly iprove custoer eperience lectronic banking is at the heart of the Bank’s efforts to create value for its everEN Bankgroing has custoer achieved base a remarkable s shon in the growth table andin the graphs number belo, of electronic ank has achievedbanking a users rearkabl duringe groth the past in the three nuber of electronicyears. banking users during the past three years

o haveTo have strategic strategic iproveent improvement and ake and a bettermake businessa better environent business environment in addition of in achieving addition the of goals achieving aforeentioned, the goals the folloingaforementioned, easures have the been following taken in measures the reported have year been taken in the reported year: Developing the mobile bank system, making transactions (transfers) possible to and from 9 different banks eveloping the obile bank syste, aking transactions (transfers) possible to and fro different banks ith highest levels of securitywith inhighest softare levels of security in software; Starting the immediate traffic ticket penalty collecting system; tarting the iediate traffic ticket penalty collecting syste Improving the quality of remote services and raising the security of internet customers via Aras app proving(producing the uality active of pass reote code) ser vicesand implementing and raising the securitythe national of internet system custoers of active via pass ras code app (producing sending through active pass SMS code) and(Harim); ipleenting the national syste of active pass code sending through M (ari) ncreasingIncreasing the nuber the number of reote of remote users users;

The Number of Electronic Banking Users nternet anking Mobile anking elephone anking sers sers sers March , March , March ,

• urging and validating the anks business inforation through data arehouse validation •• Purging btaining and energyvalidating arket the brokerag Bank’s ebusiness in settleents information of the deals through data warehouse validation; •• Obtaining erforing energy arketing market and brokerage target arket in settlements penetration proects of the deals; •• Performing aran ovin marketing proect, and aiing target to marketarket electronicpenetration payent projects; tools via raining the uality of services and optiu positioning of said tools in various businesses for the custoers •• “Yaranecuting Novin” the project,credit product aiming naed to market rino, electronic aiing to payment epand the tools anks via credit raining services the quality in icro ofloans services supported and by optimumconfiration positioning of the of custoers said tools asse in tsvarious in foreign businesses currency for the customers; •• Executing elocation the and credit erging product the branches named to“Arzino”, reduce the aiming cost, tooptiie expand the the servicing Bank’s environent, credit services and betterin micro-loans access for the supportedcustoers by confirmation of the customers’ assets in foreign currency; • edesigning and ipleenting the anks brand and ne internet portal Annual Report 2019 •• Relocation and merging the branches to reduce the cost, optimize the servicing environment, and better Continuous interaction ith the corresponding banks 27 access• valuate for the and customers; investigate the eecution liitations of strategic and operational guidelines and instructions regarding this field and providing needed suggestions to relevant authorities for their reforations • proving the brokerage relations ith foreign brokerage banks in order to speed up the processes • igning acting contracts to cooperate ith banks facing international liitations

International Banking oe of our international banking services include

• port and eport docuentary letters of credit (Cs) • port and eport letters of guarantee (Gs) • id bonds

Annual Report EN Bank

• Redesigning and implementing the Bank’s brand and new internet portal; 28 • interaction with the corresponding banks; • Evaluate and investigate the execution limitations of strategic and operational guidelines and instructions regarding this field and providing needed suggestions to relevant authorities for their reformations; • Improving the brokerage relations with foreign brokerage banks in order to speed up the processes; • Signing acting contracts to cooperate with banks facing international limitations. Annual Report 2019 International Banking Some of our international banking services include: • Import and export documentary letters of credit (LCs) • Import and export letters of guarantee (LGs) • Bid bonds • Performance bonds • Documentary bills for collection • Loans in foreign currencies • Foreign currency current accounts • Foreign currency deposit accounts • Foreign exchange transactions • International payment orders • Becoming the deputy chairman Asian Banks Association (ABA) for the fourth consecutive year. • Offering special credit packages to brokerages. The amount of guarantees issued in Rials in 2019 was equal to 53.361 billion Rials, which reached 104.275 billion Rials in 2020 with a significant and unprecedented growth of 95.4%. In addition, the balance of the bank’s liabilities for guarantees issued in Rials at the end of 2020 is 122.417 billion Rials, which has increased by 53% compared to the previous year. It should be noted that the default rate of Rial guarantee in 2019 was equal to 2.11 percent and in 2020 was equal to 1.48 percent.

2018 2019 2020

Type of Activity Amount Number Amount Number Amount Number

IRR Letter of Guarantee 54.980 22.350 53.361 17.859 275,104 193,17

Foreign Currency Operations: International Banking Transactions Summary: (Amounts in US Dollars) 2020 2019 2018 Description Number Amount Number Amount Number Amount Inward Payment Orders 133 35,158,758 278 234,460,257 658 1,169,018,671 Outward Payment Orders 446 243,117,963 277 306,972,311 650 338,942,887 Forex Transactions 29 44,354,930 20 63,234,854 9 40,764,604 Documentary Credits 63 4,943,426 451 27,603,615 108 48,700,585 Letters Of Guarantee (in Foreign 22 23,467,381 32 17,211,745 24 13,562,233 Currency) Inward Payment Orders from Order 3,843 812,162,130 4,837 1,067,907,884 2,485 521,345,022 Recordings Total 1,163,204,588 1,717,390,666 2,132,334,002 Corporate Governance Annual Report 2019 29 30 Internal Control & Audit An internal control system is one of the most important mechanisms of promoting and improving corporate governance in EN Bank, being a benchmark of health and clarity in the Bank's operations. To establish and maintain a capable internal control system provides the opportunity for an efficient and productive management of the organization and can help insure the achievement of the Bank's goals; in addition

Annual Report 2019 of assurance regarding obtaining the Bank's long-term profiting goals and safeguards the credibility of financial and administrative statements. Furthermore, it functions in compliance with the rules, regulations, policies, plans, procedures, and internal criteria and lessens the unexpected losses that may damage the Bank's reputation. In order to establish an internal control system and in compliance with the Central Bank's instruction no. 1172 dated June 21, 2007, subjected "Guidelines for effective internal control system", has taken measures as explained below: Establishing the Auditing Committee EN Bank's auditing committee was formed in January 2, 2008, in compliance with the Central Bank's instruction no. 1172, aiming to realize the corporate governance to assist the board of directors in effective supervision, the process of internal controls, credible financial reporting from auditors (internal and outsourced) and to comply with the laws and regulations.

Establishing the Internal Auditing Department Based on the board of directors' enactment dated December 10, 2012 and in compliance with the necessities of the Securities and Exchange Organization's instructions, the internal auditing department was established as a pillar of corporate governance system. Internal Auditing Department offers independent, neutral, and consulting services designed to create added value and improve the organization's operations and plays its role in establishing and improving internal control systems by providing the statements required by the Auditing committee. Internal Control and Auditing Committee In addition to the Auditing Committee and the Internal Auditing Department, the "Accounting Systems and Internal Controls Committee" is also active under the chairmanship of the Financial and Support Deputy of the Bank. Moreover, we can mention the activities of "Inspection Management", "Risk Management department" and "Anti-Money Laundering department" in the structure of the bank's internal control system. The performance of each department is described below: Some of the Achievements of EN Bank's Internal Control System are as follows: • Improving the management oversight and accountability and help promote a culture of control and effective decision-making process; • Improving the mechanisms needed to properly manage the risks in the bank's activities, • Strengthen the structure and criteria related to control activities, including segregation of duties, compliance with the licensing process, approvals, resolution of discrepancies, and review of operational performance.; • Improving the communication and proper and timely circulation of reliable information among all levels of the bank and improving the reporting and information system in a timely and reliable manner to relevant persons and authorities; • Improving control measures to prevent identify and correct failures in a timely manner, Ensuring compliance of all levels of the bank with laws and regulations, regulatory requirements, instructions and directives and their effective implementation; • Establishing and implementing of regulatory capital calculation system and bank capital adequacy ratio; • Implementation of Net Open Position test and liquidity stress test; • Report important precautionary ratios. Special Committees of the Board of Directors In order to better fulfill their tasks, the Board of Directors initiated special committees under the framework of the Bank's governing system. These committees are explained below: Auditing Committee: in accordance to the internal regulatory circular dated June 20, 2017, and in line with the corporative governance to aid the board in effective supervision, internal controlling processes, financial reporting credible for auditing (internal and independent), and to comply with the regulations, the Auditing Committee was founded by the Board's decision dated January 2, 2008. In accordance to the Board's decision, the Auditing Committee has 5 members, comprised of 2 obligatory (non-executive) board members and 3 independent members from outside of the bank and the director of the committee is a member of the Board. Through the year ended March 19, 2020, the Auditing Committee held 7 meetings during which 56 decisions were made. Risk Supreme Committee: This committee has 3 members, comprised of an obligatory (non-executive) Board member as the director, another obligatory (non-executive) Board member as a committee member and an independent expert from outside of the Bank, chosen via the Board of Directors. The Risk Supreme Committee has held 4 meetings in the year ended March 19, 2020 in which 21 decisions were taken. The Risk Supreme Committee has 4 sub-committees, the organizational structure and the number of meetings of which are as the table below:

The Sub-Committee Number of Meetings Members and Positions

Director: The independent member of the Risk Supreme Committee Sub-Committee of Credits Risk 1 Member: Credits and International Deputy Member and secretary: Directorate of risk management department Director: Board member Member: Credits and International Deputy, Deputy of Businesses, and Sub-Committee of Liquidity Risk 1 Financial Directorate Member and secretary: Directorate of risk management department Director: Board member Members: Credits and International Deputy, Financial and Support Sub-Committee of Market Risk 1 Deputy Member and secretary: Directorate of risk management department Director: Board member Sub-Committee of Operational Members: IT Deputy, Human Capital development Management, and 1 Risk Organization & Systems development directorate. Member and secretary: Directorate of risk management department

Compliance Committee: This committee has three members, comprised of an obligatory (non-executive) Board member as the director, another obligatory (non-executive) Board member as a committee member and an independent expert from outside of the Bank, chosen via the Board of Directors. The Risk Supreme Committee has held one meeting in the year ended March 19, 2020 in which a decision was taken.

Bank’s Risk Analysis Report

To face risks has always been a mainstay of financial dealership nature and survival and success of a financial institute is dependent on its proficient risk management. Risk management is a vital factor in providing proper revenue for shareholders as well as assuring costumers. Ergo-efficient risk management for the risks that await in the bank's activities has been a main concern of senior management of Bank Eghtesad Novin. To attend this Annual Report 2019 matter, since 2005 as a pioneering credit institute, have established 'The Risk Management Department". 31 Establishing "The Risk Supreme Committee 32 " and subsidiaries such as liquidity risk, credits risk, operational risk, and market risk are among actions by the senior management to comply with " requirements of corporative governance in non-governmental financial institutes' regulations, and for recognizing, measuring, controlling and efficiently managing various risks to safe guard and uphold the flow of profiting and creating value for all beneficiaries of Bank Eghtesad Novin. Therefor the most important proceedings to control, cover, and manage the major risks affecting the Bank's performance, in the form of four types of risks, namely credits risk, liquidity risk, operational risk, and

Annual Report 2019 market risk, are explained below: Credits Risk Bank Eghtesad Novin's policies and procedures are based on the Central Bank of Islamic Republic of Iran's guidelines to reduce the credits risks. For that, after studying the policy and supervision procedures and guidelines of the Central Bank, Guidelines from Basel Committee as well as considering the present and future economic situation dominating the financial market of the country, the credits policies of the Bank are chosen by the board of directors. It is also important to mention that to implement the guidelines of "Requirements of corporative governance in non-governmental credit institutions", the board has codified guidelines for a " credits risk secondary committee".On the other hand, the approval of the facilities and commitments that are demanded by the costumers, is done after studying every aspect of the credit document and the credibility report based on the limitations of the authority of relevant credential organizations and the costumers' capacity of taking credit risks, and also considering the identifiable risks, the amount of approved credit and accounting for the guaranties, and acceptable collaterals from the costumers (focusing on higher liquidity). In Bank Eghtesad Novin, accreditation of applicants is done in two levels. First, "Rah Eghtesad Novin Financial and Credit Services Co." – a subsidiary company and expert in accreditation of costumers, will inspect the costumers' credit and will provide the Bank with their expertized opinion. Next, the Bank's credit experts throughout the branches, head offices, credits directorate and the bank's credit expert committees will perform relevant inspections and give their opinions so that the credit officials at the headquarters can make proper decisions. It's worth mentioning that Bank Eghtesad Novin considers relevant factors for upgrading the internal rates of credit costumers and hence upgrading the rate of granted facilities and commitments and improving the non-current liabilities, and further measures on this matter are being taken. The capital necessary for covering the credits risk in Bank Eghtesad Novin is calculated based on the "calculation of supervision capital and capital adequacy of credit institutes" guidelines issued by the Central Bank of Islamic Republic of Iran, and is published in a note subjected "discerption of the Bank's risks". Furthermore, all the results calculated in this section, evidenced to the above guidelines, have been recorded in Mahtab system (Smart Executive Banking Information Exchange System), in periods determined by the Central Bank. In addition, in order to decrease the credits risks and consequently decrease the risk weighted assets in Capital Adequacy Ratio, significant measures have been taken such as frequent credits risks secondary committee meetings in the bank, revision of the quality of Bank's credit portfolio and the its required reserves and making proper modifications, providing proper reports on the progression and the situation of the bank's macro facilities and commitments continuously and reviewing the limits of granting said facilities according to the Central Bank's guidelines via Rah Eghtesad Novin Financial and Credit Co., along with receiving credible collaterals proper to the amount of facilities that are to be granted, encouraging and motivating plans to collect the non-current liabilities, implementation of Credits Risk Stress Testing while observing the Central Bank's guidelines and etc. Liquidity Risk in Bank Eghtesad Novin, liquidity risk management policies are codified in liquidity risk secondary committee based on the economic situation of Iran's financial and liquidity market and in compliance with regulations and guidelines issued by the Central Bank of Islamic Republic of Iran, in particular the "Minimum necessities of liquidity risk management in credit institutions" instruction, and are approved by the Risk Supreme Committee and the board of directors. These policies are designed in a way so that the combination of assets and liabilities in Iranian Rial and in foreign currencies based on their usance and rates are determined with the goal of liquidity risk control and management, and in addition, to cover the bank's liquidity risk in short- term and midterm future and to prepare for and avoid any possible and probable critical incidents. Under the framework of the Bank's policies, the Financial and Support Deputy acts as the final agent for monitoring, controlling, and managing the liquidity. In addition, the risk management department is tasked with the calculations related to the liquidity risk based on the "description of the bank's risks" note in financial reports, and continuously monitoring it in the framework of the "Minimum necessities of liquidity risk management in credit institutions" instruction, under the supervision of the liquidity risk secondary committee, the Risk Supreme Committee , and the board of directors. Calculation of Liquidity Coverage Ratio (LCR) and codification of strategy and guidelines for liquidity risk are among other tasks that are upon this department in compliance of above guidelines. Furthermore, all the results calculated in this section, evidenced to the above guidelines, have been recorded in Mahtab system (Smart Executive Banking Information Exchange System), in periods determined by the Central Bank. Also, through plans such as bank's resources and consumption management policies, monitoring and assessing the effects of fluctuations in granted facility interest rates on the bank's incomes and the effects of fluctuations deposit interest rates on the bank's costs, assessment of the total cost of cash and making efforts to decrease it, consulting with and studying the behaviors of the major investors to evaluate the relation between the possible fluctuations in their investment and other factors of monitoring and controlling the liquidity risk. It's noteworthy that to deal with the probable crisis triggered by liquidity risk, Bank Eghtesad Novin takes measures such as continuous monitoring the combination, amount and usance of deposits to control the market and preventing the collective withdrawals and focusing on the variety of financial resources and constant observation of access to all markets in normal and critical situations. Operational Risk The most important factor of any economic firm is its activity perpetuity. In order to prevent any disruption or interruption the bank's activities, preparations were made by establishing passive defense committee, first degree crisis committee, and other relevant committees to provide proper solutions so that to reduce the bank's vulnerability to natural and unnatural disasters, necessary executive plans are prepared and updated as needed. To that end, Bank Eghtesad Novin has identified corresponding controls to every possible risk through interviews and meetings with experts in relevant fields to take preventative measures for intentional or unintentional human errors. It should be said that current working procedures include control systems to control costumers' documents and other information to confirm the identity and qualification o the customers, to prevent fraudulence, and also constant updating and improving on the bank's guidelines and regulations and contract, to comply with the existing laws. Furthermore, to avoid loss of data in case of unexpected events such as fires, floods, earthquakes, etc. supporting and emergency databases have been prepared in addition to the main database and guidelines and working procedures of passive defense committee and crisis management department have been codified. "Operational Risk Policies and Procedures" is codified based on guidelines and regulations of ICB and are purposed to reduce, identify and control the operational risks, and is included in planning and implementing the educational programs for the bank's personnel to inform them of the meaning and instances of operational risk and how to prepare for it. It's worth mentioning that to comply with the "minimum necessities of operational risk management in credit institutes" instruction, "requirements of corporative governance in non-governmental credit institutions" instruction, and to better advance the policies of operational risk management, a "guidebook of operational risk secondary committee" has been provided. Assessment of operational risk is done in compliance with the latest "calculation of supervision capital and adequacy of credit institutes" issued by ICB and via the basic indicator method of the Basel II guidelines, which are explained in the "description of the bank's risks" note. Furthermore, all the results calculated in this section, evidenced to the above guidelines, have been recorded in Mahtab system (Smart Executive

Banking Information Exchange System), in periods determined by the Central Bank. Annual Report 2019 33 Market Risk 34 A major part of risk management is to study the risks caused by exchange rate fluctuations, the bank's stock portfolio, and securities issued by the government. To provide a framework for reporting the market risk, the guidelines of market risk secondary committee was issued based on the "requirements of corporative governance in non-governmental credit institutions" guidelines. To attend this matter, the bank's general policies regarding market risk is decided by the board of directors and is reflected annually in the secondary committee of market risk's guidelines. In addition, all relevant reports are presented in the market risk secondary committee and then Annual Report 2019 are presented to the Risk Supreme Committee and the board of directors for final approval. Tor assess the market risk, the "Value at Risk" and "Expected Shortfalls" methodologies are utilized. To calculate the net expected shortfalls and the value at risk of open exchange conditions and the bank's short- term stocks portfolio, Historical Simulations, Variance and Covariance analysis, Monte Carlo Simulations, EWMA, and GARCH methodologies are applied. Even so, for optimal management of investments, evaluation of market price fluctuations, monitoring the investments, evaluate parallel markets, and seasonal comparison of investments, other methodologies of market risk assessment are used as well. Furthermore, assessments related to the assets that are affected by market risk and hence assessments related to the required capital to cover said risk, are done according to "calculation of supervision capital and capital adequacy of credit institutes" guidelines, issued by ICB, and the outcome has been published in in time periods demanded by ICB in "Mahtab System" (Smart Executive Banking Information Exchange System), as is required by said guidelines. EN Bank Executive Committee + Management Council EN Bank has various special committees, commissions, and councils which act as a subsidiary of the board of directors or the CEO. Below is a summary of their activities:

No. of No. of Committee Head of Committee Meetings Resolutions Managers Council CEO 12 12 Supreme Committee of Policy Making and Supervising Collections CEO 19 71 Passive Defense Committee CEO / CEO's Rep 3 16 Supreme Credit Committee CEO / CEO's Rep / Board's Rep 42 256 Trading Commission Finance and Support Deputy 49 414 Director General, Human Resource Human Resource Committee 106 1,005 Development Accounting Systems & Internal Control Committee Finance and Support Deputy 5 11 Assets - Liabilities Committee Finance and Support Deputy 16 77 Credit Committee Director General, Credits 46 1,161

Human Resource and Training EN Bank management considers the development of a well-trained and qualified personnel base as a key success factor. To achieve this goal, the Bank seriously pursues the policy of recruiting university graduates. New recruits receive pre-employment training, while on-the-job training programs help improve the skills and competencies of employees. Indeed, the bank is committed to a continuous review of human resource development to ensure the best practical solutions in every particular area of market pressure and customer's expectations. Some of the Human resource development activities includes, offering Training courses for employees as follows: Holding a comprehensive foreign exchange course for the heads, deputies and officials of the branches with the aim of acquainting them with the foreign exchange operations. Holding a training course on "Non-verbal and effective communication and principles of formalities" with the aim of promoting organizational culture and developing individual skills of employees at the central bank offices. Holding the Ambassadors of EN Bank project for the children of the bank's employees with the aim of teaching financial literacy to children and adolescents. Holding exam of commonly used instructions and directives. To achieve the said goals, EN Bank has fine-tuned its sources for employment and offers comprehensive training programs to improve the competency of every employee. The following tables show the employment status at EN Bank:

Description 2020 2019 2018

Female 1,180 1,228 1,273 Male 1,839 1,901 1,890 Total 3,019 3,129 3,163

Employee in 2020 by Gender

Female 39% Male 61%

Educational Level of Staff at EN Bank Description 2020 2019 2018

Associated Degree & Lower 234 241 270 Bachelors 1,529 1,637 1,795 PhD & Masters 1,256 1,251 1,098 Total 3,019 3,129 3,163 2020 Educational Backhground EN Bank Higher Diploma & Lower 8%

PhD & Masters 41% Bachelors 51% Annual Report 2019 35 urtherore e lace artcular ehass here at Bank on eloee trann an skll uates he follon ar chart clearl llustrates that the nuer of anhours of trann at Bank 36urtherore e lace artcular ehass here at Bank on eloee trann an skll uates he follon ar chart clearl Training llustratesFurthermore, that the nuer we place of anhoursparticular emphasis of trann here at at EN BankBank on employee training and skill updates. The following bar chart clearly illustrates thatDescription the number of man/hours2020 of training at EN2019 Bank: 2018 Description DescriptionMan-Hours 739092020 630312019 2019 147542018 2018

Man-Hours Man-Hours 7390973909 63031 63031 14754 14754

Annual Report 2019

Personnel Training Personnel Training anours

anours

Annual Report EN Bank Annual Report EN Bank

Corporate Social Responsibilities Annual Report 2019 37 38 Annual Report 2019

Report on Corporate Social Responsibilities of the Bank In response to the trust of the respected shareholders and fulfilling our mission to maximize profitability for them, business enterprises and large corporations also have a moral obligation to serve society at large and local communities, from which we emerge and thrive. Hence, we allocate a considerable portion of our time and resources towards fulfilling our role as a socially responsible bank. Some of our measures in this regards are stated below: Education In order to improve the knowledge of our dear compatriots in the deprived areas, the bank has built 37 schools from the beginning of its activity until now, of which 24 schools are in operation and the rest are under construction. Holding a book fair during the week of books and reading with the aim of promoting the culture of books and reading. Health Donating money to the flood victims of southeast of Iran. Donating equipment to Imam Khomeini hospital complex. Signing a memorandum of cooperation with Imam Khomeini Relief Committee to provide self-employment loan facilities to clients and families covered. Unveiling of the banking services system for the blind in Haft-e-Tir branch of Bank Eghtesad Novin. Annual Report 2019 39 40 Annual Report 2019 Part Two Auditor’s Opinion and Financial Statements Annual Report 2019 41 42 Annual Report 2019 Annual Report 2019 43 44 Annual Report 2019 Annual Report 2019 45 46 Annual Report 2019 Annual Report 2019 47 48 Annual Report 2019 Financial Statements and Notes Annual Report 2019 49 50 - - - - - 18,186 34,048 100,147 Million IRR 1,241,385 1,109,045 3,162,792 5,077,473 2,778,700 3,226,418 (Restated) 43,010,589 65,349,522 34,717,237 13,131,000 14,556,078 17,334,777 25,457,569 (6,849,235) 306,599,489 105,266,743 145,445,965 452,045,454 469,380,231 March 20, 2019

- - - - 46,259 44,078 349,528 102,760 Million IRR 8,378,700 5,274,607 4,519,066 6,119,192 8,551,349 1,593, 404 93,337,858 69,958,313 18,719,878 13,131,000 21,544,979 42,190,588 46,709,654 (6,182,775) 420,650,510 152,092,143 184,005,240 604,655,750 651,365,404 Annual Report 2019 March 19, 2020 24 25 27 22 23 26 28 36 35 21 29 30 31 32 33 34 Note 53-2 53-3 53-4 53-1 Liabilities & Shareholders’ Equity Debt Securities Performance Tax Provision Provision for Employees’ Service Termination Benefits & Personnel Retirement Commitments Customers’ Deposits Dividends Payable Total Shareholders’ Equity of Parent Company Reserves & Other Liabilities Total Liabilities before Depositors’ Rights Investment Depositors’ Rights Treasury Shares Difference of Foreign Currency Exchange Retained Earnings Liabilities Due to Banks & Other Credit Institutes Total liabilities Shareholders’ Equity: Capital Capital Increase in Progress Share Premium Reserve Legal Reserve Other Reserves Shareholders’ Equity with No Control Total Shareholders’ Equity Assets Revaluation Surplus Total Liabilities & Shareholders’ Equity Other Bank’s Commitments Bank’s Commitments - Letters of Guarantee Managed Funds Bank’s Commitments - Letters of Credit EN BANK - - As at March 19, 2020 880,683 100,147 Million IRR (Restated) 8,476,740 4,992,972 3,226,418 Consolidated Balance Sheet 13,723,406 17,126,962 10,665,678 37,962,208 58,098,812 22,916,848 25,457,569 294,535,922 105,266,743 469,380,231 March 20, 2019 - 21,297 102,760 Million IRR 1,542,565 4,042,707 5,005,694 8,551,349 6,119,192 26,622,566 19,544,727 32,598,323 58,237,409 40,327,586 23,317,834 440,104,696 152,092,143 651,365,404 March 19, 2020

9 11 12 13 14 15 16 17 19 10 20 18 Note 53-1 53-2 53-3 53-4 Assets: Dues from Government Loans Granted & Dues from Governmental Authorities Loans Granted & claims from Non-governmental Entities Investments in Shares & Other Securities Dues from Subsidiary & Affiliated Companies Other Accounts Receivable Tangible Fixed Assets Statutory Deposit Assets: Dues from the Banks & Other Credit Institutes Other Assets Intangible Assets Cash Total Assets Customers’ Commitments - Letters of Credit Customers’ Commitments - Letters of Guarantee Other Customers’ Commitments Managed funds EN BANK Consolidated Income Statement For the Year Ended March 19, 2020 March 20, 2019 Description March 19, 2020 (Restated) Note Million IRR Million IRR Incomes from Loans, Deposits & Debt Securities 37 42,511,923 42,070,416 Deposit Interest Expense 39 (51,732,810) (47,153,514) Net Income from Loans & Deposits (9,220,887) (5,083,098)

Commission Income 41 4,906,478 3,976,309 Commission Expense 42 (1,005,375) (917,081) Net Commission income 3,901,103 3,059,228

Net Profit (Loss) of Investment 38 4,816,113 3,387,365 Net Profit (Loss) of Foreign Currency Transactions 43 8,048,873 5,665,419 Other Operating Incomes 44 - - Total Operating Incomes 7,545,202 7,028,914

Other Net Incomes & Expenses 45 4,068,803 1,637,177 General & Administrative Expenses 46 (8,826,802) (6,494,969) Expenses for Doubtful Debts (2,752,112) (2,598,549) Financing Expenses 48 (141,747) (922,863) Depreciation Expense 49 (444,484) (486,801) Profit (Loss) before Group’s Share from Subsidiary Companies’ (551,140) (1,837,090) Profit Group’s Share from Subsidiary Companies’ Share 1,915,458 934,692 Profit (Loss) before Income Tax 1,364,317 (902,397) Income Tax of Current Year (315,194) (253,329) Income Tax of Previous Years - - Total of Income Tax 25 (315,194) (253,329) Net Profit (Loss) 1,049,123 (1,155,726) Net Profit (Loss) Attributable to: The Parent Company’s Shareholders 865,592 (1,257,779) Shareholders with No Control 183,532 102,052 1,049,123 (1,155,726) Profit (Loss) per Share (IRR) 55 Base EPS (Loss)- IRR 55-1 66 (96)

EN BANK Consolidated Comprehensive Income Statement For the Year Ended March 19, 2020

March 20, 2019 Description March 19, 2020 (Restated) Note Million IRR Million IRR Net Profit (Loss) 1,049,123 (1,155,726) Assets Revaluation Surplus 34 21,544,979 - Difference of Foreign Currency Exchange 35 6,855,000 966,394 Total Comprehensive Profit (Loss) 29,449,102 (189,332) Prior Years’ Adjustments 53 (1,445,389) (4,182,353) Identified Comprehensive Profit (Loss) from the Previous 28,003,713 (4,371,685) Year's Reports' Date Less: Shareholders' with No Control from Comprehensive 1,822,624 333,510 Profit (Loss)

Comprehensive Profit (Loss) at the End of the Year 26,181,089 (4,705,195) Annual Report 2019 51 The accompanying notes form an integral part of these financial statements. 52 Total Equity Million IRR 1,049,123 6,855,000 18,780,167 21,544,979 28,399,978 (1,445,389) Shareholders’ - - - Control Annual Report 2019 183,532 Million IRR 2,778,700 1,639,092 1,639,092 Shareholders’ Equity with No ------IRR Million Shares Treasury - - - - Earnings 865,592 Retained Million IRR (1,445,389) (5,403,846) - - - from Profit Currency Overseas Resulting of Foreign Million IRR Transition 3,162,792 5,215,908 5,215,908 Difference Operations - - - - Assets Surplus Million IRR 21,544,979 21,544,979 Revaluation ------Other 34,048 Reserves Million IRR EN BANK 2019 - 2020 (Restated) ------For the Year Ended March 19, 2020 Million IRR 5,077,473 Legal Reserve Consolidated Changes Statement in Shareholders' Equity ------Share Reserve Premium Million IRR ------in IRR Million Capital Increase Progress ------Capital Million IRR 13,131,000

34 50 35 Note

Other Comprehensive Profits (Loss) after Tax Reduction Assets Revaluation Surplus Prior Years' Adjustments Net Profit (Loss) Total Other Comprehensive Profits Other Comprehensive Profits Tax Difference of Foreign Currency Exchange Balance at March 21, 2019

------1 (74,224) (74,225) 28,003,713 46,709,656 - - - - - 1 3,153 19,000 (82,258) (74,225) (30,187) 1,822,624 4,519,066 ------30,187 (13,184) (199,131) (216,134) (579,797) (6,182,774) ------5,215,908 8,378,700 ------21,544,979 21,544,979 ------10,031 10,031 44,078 ------197,134 197,134 5,274,607 ------13,131,000 23 33 32 36 36 30 30 Annual Report 2019 Balance at March 19, 2020 Total Approved Dividend Dividend Other Reserves Distribution & Allocation Legal Reserve Treasury Shares Sales Treasury Shares Treasury Shares Purchase Non-Registered Capital Increase Capital Increase Registered Capital Increase Total Comprehensive Profit (Loss) Other Changes in Retained Earnings Changes of No Control Shareholders’ Equity in Trade Composition 53 54 - - Total Equity 966,394 966,394 Million IRR (4,371,686) 21,695,027 (4,182,353) (1,155,726) Shareholders’ - - - Control 333,510 231,458 231,458 102,052 Annual Report 2019 Million IRR 2,429,867 Shareholders’ Equity with No ------Shares Treasury Million IRR - - - - Earnings Retained Million IRR (5,440,132) (4,182,353) (1,257,779) (1,363,311) - - - 734,936 734,936 734,936 Million IRR Transition 2,427,856 Operations Difference of from Overseas Profit Resulting Foreign Currency ------Assets Surplus Million IRR Revaluation ------Other 31,896 EN BANK Reserves Million IRR 2018 - 2020 ------For the Year Ended March 19, 2020 Legal Reserve Million IRR 5,037,719 Consolidated Changes Statement in Shareholders' Equity ------Share Reserve Premium Million IRR ------Capital Progress Million IRR Increase in ------Capital Million IRR 13,131,000 35 34 50 Note Total Comprehensive Profit (Loss) Total Other Comprehensive Profits Other Comprehensive Profits Tax Difference of Foreign Currency Exchange Other Comprehensive Profits (Loss) after Tax Reduction Assets Revaluation Surplus Prior Years' Adjustments Net Profit (Loss) Balance at March 21, 2018 ------11,437 49,383 (37,946) 17,334,778 - - - - - 336 15,323 10,823 49,383 (7,272) (37,946) 2,778,700 ------7,272 (2,487) (45,792) (50,577) (6,849,235) ------734,936 3,162,792 ------2,152 2,152 34,048 ------39,754 39,754 5,077,473 ------13,131,000 36 36 30 30 23 33 32 Annual Report 2019 Treasury Shares Sales Treasury Shares Treasury Shares Purchase Total Non-Registered Capital Increase Capital Increase Registered Capital Increase Approved Dividend Other Changes in Retained Earnings Dividend Other Reserves Changes of No Control Shareholders’ Equity in Trade Composition Distribution & Allocation Legal Reserve Balance at March 20, 2019 55 EN Bank 56 Consolidated Cash Flow Statement For the Year Ended March 19, 2020 Description March 19, 2020 March 20, 2019 (Restated) Note Million IRR Million IRR Operating Activities: Cash Received for: Late Payment Penalty & Interest on Granted Loans 36,243,222 40,484,898 Debt Securities Interest 2,776,633 650,392

Annual Report 2019 Commission 4,906,478 3,976,309 Deposit interest 3,492,068 935,126 Investment Profit 4,816,113 3,387,365 Other Operating Incomes 3,711,715 1,408,235 Cash Paid for: Deposit Interest (51,732,810) (47,153,514) Commission (1,005,375) (917,081) Financing Expenses (141,747) (922,863) Other Operating Expenses (4,857,490) (3,724,6240 Income Tax (1,207,051) 18,474 Cash Flow from Operating Activities before Changes in Operating (2,998,244) (1,857,283) Assets & Liabilities Cash Flows from Changes in Operating Assets & Liabilities: Net increase (Decrease) in Liabilities: Due to Banks & Other Credit Institutes (15,997,359) 16,075,952 Customers’ Deposits 50,327,268 10,306,017 Debt Securities Operating Portion of Reserves & Other Liabilities 4,608,791 16,750,076 Investment Depositors’ Rights 114,051,022 1,684,338 Net Assets Increase (Decrease): Dues from Banks & Other Credit Institutes 4,434,033 (1,844,570) Principal Amount of Governmental Dues (21,297) - Principle Amount of Granted Loans & Dues form Governmental Entities - - Principal Amount of Granted Loans & Dues form Non-governmental (14,220,873) (7,022,292) Entities Investment in Shares & Other Securities (12,899,160) 223,516 Dues from Subs1-idiary & Affiliated Companies (661,882) 1,184,802 Other Accounts Receivable (2,417,764) (4,061,020) Statutory Deposit (20,275,201) (1,539,078) Operating Portion of Other Asset (400,987) 13,725,254 Cash Flows from Changes in Operating Assets & Liabilities: (19,473,410) 45,482,995 Net Cash Inflow (Outflow) from Operating Activities 51 (22,471,654) 43,625,712 Investment Activities: Cash Payment for Acquisition of Tangible Fixed Assets (1,394,476) (1,701,082) Cash Received for Tangible Fixed Assets Sales 738,314 289,415 Cash Payment for Acquisition of Intangible Assets (81,182) (129,299) Cash Received for Intangible Assets Sales 28,346 1,994 Cash Payment for Acquisition of Non-operating Properties - - Cash Received for Non-operating Properties Sales - - Net Cash Inflow (Outflow) from Investment Activities (708,998) (1,538,973) Net Cash Inflow (outflow) before Financing Activities (23,180,651) 42,086,739 Financing Activities: Capital in Cash - - Treasury Shares Transactions - - Cash Obtained from Share Premium - - Dividend Payable (46,153) (41,388) Loans Received 1,910,493 1,285,888 Loans Principal Repayment (1,018,835) (4,069,614) Net Cash Inflow (Outflow) from Financing Activities 845,506 (2,825,114) Net Increase (Decrease) in Cash (22,335,145) 39,261,626 Cash at the Beginning of the Year 58,098,812 18,253,222 Impact of Foreign Currency Fluctuations 4,563,919 583,965 Cash at the End of the Year 40,327,586 58,098,813 Non-cash Transactions 52 3,132,801 1,867,006 The accompanying notes form an integral part of these financial statements. ------9,327 100,147 965,348 Million IRR 3,226,418 4,650,091 1,024,447 (Restated) 25,457,569 10,979,232 (6,801,859) 13,131,000 63,928,531 42,898,702 34,627,421 105,266,743 307,318,760 143,453,776 461,751,768 450,772,536 March 20, 2019 ------9,327 102,760 Million IRR 6,119,192 8,551,349 4,740,871 1,478,834 32,864,461 21,280,209 (6,287,440) 13,131,000 68,121,159 93,189,016 18,719,878 152,092,143 421,722,677 181,518,214 636,105,532 603,240,891 March 19, 2020 36 34 35 33 32 31 29 30 28 27 25 26 24 22 23 21 Note 53-4 53-3 53-2 53-1 Liabilities & Shareholders’ Equity EN BANK Balance Sheet As at March 19, 2020 Managed Funds Other Bank’s Commitments Bank’s Commitments - Letters of Guarantee Total Liabilities & Shareholders’ Equity Bank’s Commitments - Letters of Credit Total shareholders’ Equity Treasury Shares Retained Earnings Assets Revaluation Surplus Difference of Foreign Currency Exchange Other Reserves Legal Reserve Share Premium Reserve Shareholders’ Equity: Capital Capital Increase in Progress Total liabilities Total Liabilities before Depositors’ Rights Investment Depositors’ Rights Provision for Employees’ Service Termination Benefits & Personnel Retirement Commitments Provision for Operation Tax Reserves & Other Liabilities Debt Securities Customers’ Deposits Dividends Payable Dues to Banks & Other Credit Institutes Liabilities: - - 100,147 Million IRR (Restated) 3,226,418 4,902,071 8,888,154 8,930,430 8,889,266 25,457,569 22,016,614 10,855,195 37,731,662 19,091,747 50,946,642 105,266,743 461,751,768 289,499,988 March 20, 2019 - 21,297 102,760 Million IRR 6,119,192 8,551,349 4,929,481 9,709,448 4,561,645 21,914,784 14,668,115 30,218,132 57,888,700 31,369,009 28,207,024 152,092,143 636,105,532 432,617,896 March 19, 2020 9 20 16 17 18 19 15 14 13 12 11 10 Note 53-4 53-3 53-2 53-1 Annual Report 2019 Managed Funds Other Customers’ Commitments Customers’ Commitments - Letters of Guarantee Customers’ Commitments - Letters of Credit Total Assets Other Assets Other Accounts Receivable Tangible Fixed Assets Intangible Assets Statutory Deposit Dues from Subsidiary & Affiliated Companies Investments in Shares & Other Securities Granted loans & Dues from Non-governmental Granted Loans & Dues from Governmental Authorities Dues from Government Dues from the Banks & Other Credit Institutes Assets: Assets: Cash 57 58 EN BANK Income Statement For the Year Ended March 19, 2020

March 20, 2019 Description March 19, 2020 (Restated) Annual Report 2019 Note Million IRR Million IRR

Incomes from Loans, Deposits & Debt Securities 37 41,689,435 41,867,689

Deposit Interest Expense 39 (51,829,438) (47,230,683)

Net Income from Loans & Deposits (10,140,003) (5,362,993)

Commission Income 41 4,757,076 3,976,309

Commission Expense 42 (1,007,991) (919,481)

Net Commission income 3,749,085 3,056,828

Net Profit (Loss) of Investment 38 7,171,627 4,534,498

Net Profit (Loss) of Foreign Currency Transactions 43 8,251,084 5,650,835

Other Operating Incomes 44 - -

Total Operating Incomes 9,031,793 7,879,168

Other Net Incomes & Expenses 45 3,058,522 772,307

General & Administrative Expenses 46 (8,364,804) (6,868,461)

Expenses for Doubtful Debts 47 (2,759,809) (2,598,549)

Financing Expenses 48 (136,110) (920,682)

Depreciation Expense 49 (224,393) (223,691)

Profit (Loss) before Income Tax 605,200 (1,959,909)

Income Tax of Current Year - -

Income Tax of Previous Years -

Total of Income Tax 25 - -

Net Profit (Loss) 605,200 (1,959,909)

Profit (Loss) per Share - IRR 55

Base EPS (Loss)- IRR 55-1 46 (149) EN BANK Comprehensive Income Statement For the Year Ended March 19, 2020 Description March 19, 2020 March 20, 2019 (Restated)

Note Million IRR Million IRR Net Profit (Loss) 605,200 (1,959,909) Assets Revaluation Surplus 34 21,280,209 - Difference of Foreign Currency Exchange 35 - - Total Comprehensive Profit (Loss) 21,885,409 (1,959,909) Prior Years’ Adjustments 50 (965,348) (4,193,718) Identified Comprehensive Profit (Loss) from the 20,920,061 (6,153,628) Previous Year's Reports' Date The accompanying notes form an integral part of these financial statements. Annual Report 2019 59 60 - - Total Equity 605,200 (965,348) Million IRR 21,280,209 21,280,209 11,944,580 20,920,061 Shareholders’ ------IRR Shares Million Annual Report 2019 Treasury - - - - Earnings 605,200 Retained (965,348) (360,149) Million IRR (5,836,511) ------Transition Million IRR Operations Difference of from Overseas Profit Resulting Foreign Currency - - - - - Assets Surplus Million IRR 21,280,209 21,280,209 21,280,209 Revaluation ------Other Reserves Million IRR EN BANK 2019-2020 ------4,650,091 4,650,091 Million IRR For the Year Ended March 19, 2020 Legal Reserve Changes Statement in Shareholders' Equity ------Capital Progress Increase in Million IRR ------Capital Million IRR 13,131,000 13,131,000 34 35 50 Note

Total Other Comprehensive Profits Other Comprehensive Profits (Loss) after Tax Reduction Assets Revaluation Surplus Other Comprehensive Profits Tax Total Comprehensive Profit (Loss) Difference of Foreign Currency Exchange Prior Years' Adjustments

Balance at March 21, 2019 Net Profit (Loss)

------32,864,641 ------(90,780) (90,780) (6,287,440) ------21,280,209 ------90,780 90,780 4,740,871 ------

------13,131,000 23 32 33 36 36 30 30 Annual Report 2019 Total Balance at March 19, 2020 Approved Dividend Dividend Legal Reserve Other Reserves Distribution & Allocation Treasury Shares Sales Treasury Shares Purchase Treasury Shares Non-Registered Capital Increase Capital Increase Registered Capital Increase 61 62 - - - - - Total Equity Million IRR 17,132,859 (4,193,718) (1,959,909) Shareholders’ ------IRR Annual Report 2019 Shares Million Treasury - - - - - Earnings Retained (648,232) Million IRR (4,193,718) (1,959,909) ------Transition Million IRR Operations Difference of from Overseas Profit Resulting Foreign Currency ------Assets Surplus Million IRR Revaluation ------IRR Other Million Reserves EN BANK 2018-2019 ------Legal Reserve 4,650,091 Million IRR For the Year Ended March 19, 2020 Changes Statement in Shareholders' Equity ------Share Reserve Premium Million IRR ------in IRR Million Capital Increase Progress ------Capital Million IRR 13,131,000 35 34 50 Note

Total Other Comprehensive Profits Other Comprehensive Profits Tax Difference of Foreign Currency Exchange Assets Revaluation Surplus Other Comprehensive Profits (Loss) after Tax Reduction Prior Years' Adjustments Net Profit (Loss) Balance at March 21, 2018

------(6,153,628) 10,979,232 ------(6,153,628) (6,801,859) ------4,650,091 ------13,131,000 36 36 23 30 30 33 32 Annual Report 2019 Balance at March 20, 2019 Treasury Shares Sales Total Treasury Shares Treasury Shares Purchase Approved Dividend Non-Registered Capital Increase Dividend Capital Increase Registered Capital Increase Other Reserves Total Comprehensive Profit (Loss) Distribution & Allocation Legal Reserve 63 64 EN Bank Cash Flow Statement For the Year Ended March19, 2020 March 20, 2019 Description March 19, 2020 (Restated) Note Million IRR Million IRR Operating Activities: Cash Received for:

Annual Report 2019 Late Payment Penalty & Interest on Granted Loans 35,564,083 40,346,118 Debt Securities Interest 2,776,633 650,392 Commission 4,757,076 3,976,309 Deposit interest 3,348,719 871,179 Investment Profit 7,171,627 4,534,498 Other Operating Incomes 2,844,891 543,649 Cash Paid for: Deposit Interest (51,829,438) (47,230,683) Commission (1,007,991) (919,481) Financing Expenses (136,110) (920,682) Other Operating Expenses (4,061,178) (4,120,909) Income Tax (965,348) (674,790) Cash Inflow from Operating Activities before Changes in Operating (1,537,037) (2,944,399) Assets & Liabilities Cash Flows from Changes in Operating Assets & Liabilities: Net increase (Decrease) in Liabilities: Due to Banks & Other Credit Institutes (16,799,201) 17,817,016 Customers’ Deposits 50,290,314 10,953,697 Debt Securities Operating Portion of Reserves & Other Liabilities 4,192,628 16,407,550 Investment Depositors’ Rights 114,403,917 1,962,727 Net Assets Increase (Decrease): Dues from Banks & Other Credit Institutes 4,327,621 (5,224,103) Principal Amount of Governmental Dues (21,297) - Principle Amount of Granted Loans & Dues form Governmental - - Entities Principal Amount of Granted Loans & Dues form Non-governmental (149,010,518) (6,405,993) Entities Investment in Shares & Other Securities (12,277,263) (2,745,464) Dues from Subsidiary & Affiliated Companies (779,018) 1,070,294 Other Accounts Receivable (3,812,921) (3,999,724) Statutory Deposit (20,157,038) (1,425,150) Operating Portion of Other Asset 3,234,631 13,447,130 Cash Flows from Changes in Operating Assets & Liabilities: (26,408,146) 41,857,980 Net Cash Inflow (Outflow) from Operating Activities 51 (27,945,183) 38,913,581 Investment Activities: Cash Payment for Acquisition of Tangible Fixed Assets (405,483) (49,917) Cash Received for Tangible Fixed Assets Sales 375,820 243,648 Cash Payment for Acquisition of Intangible Assets (77,130) (24,033) Cash Received for Intangible Assets Sales 18,853 2,743 Cash Payment for Acquisition of Non-operating Properties - - Cash Received for Non-operating Properties Sales - - Net Cash Inflow (Outflow) from Investment Activities (87,940) 172,441 Net Cash Inflow (outflow) before Financing Activities (28,033,123) 39,086,022 Financing Activities: Capital in Cash - - Treasury Shares Transactions - - Cash Obtained from Share Premium - - Dividend Payable - (287) Loans Received 1,910,493 1,285,888 Loans Principal Repayment (1,018,835) (5,319,784) Net Cash Inflow (Outflow) from Financing Activities 891,659 (4,034,183) Net Increase (Decrease) in Cash (27,141,464) 35,051,839 Cash at the Beginning of the Year 50,946,642 15,310,839 Impact of Foreign Currency Fluctuations 4,401,847 583,965 Cash at the End of the Year 28,207,024 50,946,642 Non-cash Transactions 52 3,132,801 1,818,165 The accompanying notes form an integral part of these financial statements. 1. Introduction History EN group is composed of EN Bank (The parent company) and its subsidiaries and affiliates. EN Bank, a Public Joint Stock Company, obtained its operating license on 11 August 2001 from the Central Bank of the Islamic Republic of Iran, registered under No. 177132 on 13 August 2001 and commenced its operations as the first private bank in the Islamic Republic of Iran. The Bank’s shares were approved for listing on Tehran Stock Exchange (TSE) on February 4, 2004. Main Activities The Bank’s main activities have been defined in Article 3 of its Articles of Association in detail. According to the mentioned article, the Bank’s main scope of activities include: opening and maintaining current or deposit Gharz-al-Hassaneh accounts, short or long-term investments, issuing various kinds of cheque cards or other authorized cards and similar accounts, obtaining facilities and credit, granting various types of loans based on the ongoing contracts throughout Iran, payment orders, carrying out all kinds of transactions or foreign currency payment orders, issuing L/Cs and conducting all related operations in this regard, issuing various types of commitments and deposit guarantees, trading debts securities, trading shares, trading gold and silver, carrying out brokerage activities, cash management for customers, establishing branches and expanding the branch network. In short, carrying out all activities that promote the Bank’s objectives and its scope of activities within the current regulations of Iran. Number of Branches Number of branches during the year is as follows:

March 19, 2020 March 20, 2019

At the End of the Year Average At the End of the Year Average Branches in Tehran Province 102 104 105 105 Branches in Other Provinces 137 139 141 141 Branches in Free Zones 2 2 1 1 Overseas Branches - - - - Total 241 244 247 247

* Annual average means the monthly average during the reported period. Employment The following tables show the employment status at EN Bank:

March 19, 2020 March 20, 2019

At the End of the Year Average At the End of the Year Average Parent Company Headquarters & Supervisions 776 788 800 795 Branches in Tehran Province 1,074 1,097 1,119 1,115 Branches in Other Provinces 1,154 1,173 1,192 1,218 Branches in Free Zones 15 17 18 18 Overseas Branches - - - - 3,019 3,074 3,129 3,146 Subsidiary Companies 1,227 1,239 1,250 1,260 4,246 4,313 4,379 4,406 Annual Report 2019 * Average means the monthly average during the reported period. 65 66 2. Basics for Preparation of Financial Statements

2.1. The financial statements provided in accordance with the CBI’s accounting standards and regulations. The details of the accounting procedures including the modifications that were implemented during last year are provided in later notes.

Annual Report 2019 2.2. The consolidated financial statements are the result of combining items of financial statements of the EN Bank (public joint stock company) and its group of companies which are subject to consolidation, after elimination of inter-group transactions and balances, and unrealized profit and/or loss thereof.

2.3. In respect of subsidiaries acquired during the period under review, the result of their operations, after their control effectively transferred to the parent company, and in the case of subsidiaries sold, the result of their operations up to the point of transfer, are included in the consolidated income statements.

2.4. The stocks of parent company acquired by its subsidiaries are recorded at cost, and in consolidated balance sheet are classified as a reduction of stockholders’ equity, under title of “Shares of Parent Company Owned by Subsidiary Companies”.

2.5. The financial year of some of the Group Companies differ to that of the Parent Company’s. Hence, the items stated in the financial statements are related to different periods. The condition of the financial year in brief, length of the financial period and the financial statements used in preparing the consolidated

Percentage Situation Fiscal of the Percentage Types of of Used No. of Companies Year No. of Shares Parent of the group Location Activity Financial Companies Ended Company Investment Statements Investment A) Subsidiaries: Computer Eghtesad Novin Hardware Khadamat Rayan Jan 20 49,950,000 100 100 Tehran Audited 1 & Software Co. Services Novin Capital Consultation & Dec 21 17,499,550 100 100 Tehran Audited 1 Management Co. Investment Harim Aftab Construction Jan 20 - - 89 Ahvaz Audited 1 Kianpars Operations Islamic Cooperation Dec 31 186,128,451,086 74 76 Banking Baghdad Not Audited 1 Bank for Investment - Iraq EN Investment Jan 20 560,217,563 56 70 Investment Tehran Audited 1 Co. Eghtesad Novin Foreign Currency Currency Jan 20 392,000,000 98 98 Tehran Audited 1 & Exchange Exchange Services Co. Eghtesad Novi March 2,850,000,000 95 95 Leasing Tehran Audited 1 Leasing Co. Rah-e Eghtesad Novin Financial Jan 20 999,500 100 100 Expert Services Tehran Audited 1 & Credit Services Co. 3. Operational & Reporting Monetary Unit Financial statement items have been measured using monetary unit of the main economic environment Pardakht Novin E-Banking March 995,365,009 99 99 Tehran Audited 1 Arian Co. Services EN Services & Construction March 292,107,505 97 99 Tehran Audited 1 Supports Co. Operations Iranian Civil Investment & Construction March 296,608,000 99 100 Tehran Audited 1 Sustainable Operations Development Co. Novin Insurance Insurance March - - 95 Tehran Audited 1 Co. Services Avaye Salam Notification & Mehr Novin March - - 100 Tehran Audited 1 Communication Communication 13 B) Affiliates: Novin Insurance Insurance March 298,499,995 20 20 Tehran Not Audited 1 Co. Services Novin Brokerage March 19,998,000 40 40 Brokerage Tehran Audited 1 Company Novin Securities Sales March 1,952,303,647 22 22 Tehran Audited 1 Investment Bank & Purchase 3 16 of the Bank’s place of operation i.e. IRR. The items have been presented in million IRR to be more understandable, except in cases, which have been explicitly mentioned in the financial statements or in the explanatory notes. 4. Use of Judgments & Estimates In order to prepare the financial statements, the Bank’s management has made judgements, estimates and assumptions in specifying recognized amounts in the financial statements. Actual results may be different to estimates. These estimates and underlying assumptions are based on historical events and the management continuously supervises them via making comparisons with true events. Some of the managerial sectors in which the management makes judgments and uses estimates are stated below: 4.1. Identifying and measurement of doubtful reserves and liabilities. 4.2. Categorizing the investments as long-term investments. 5. Basis for Measurement With the exception of significant instances, financial statements have been prepared based on historical cost. Current and marketable investments. Foreign currency assets and liabilities. Investment in subsidiary companies. Land revaluation price 6. Changes in Accounting Procedures In preparing the financial statements, the bank has followed the accounting procedures mentioned in Note 7, observing the consistency of the procedure in all reported periods. Annual Report 2019 67 68

7. Summary of Significant Accounting Policies 7.1. Investments: In Groups Consolidated In Parent Company’s Account

Annual Report 2019 Accounts 7.1.1 Valuation Method: Long-term Investments: Investments in Subsidiary Companies, Eligible for Consolidations Cost (Less Retained Value Decrease) Eligible for Consolidation Investments in Affiliated Companies Special Value Cost (Less Retained Value Decrease) Cost (Less Retained Value Cost (Less Retained Value Decrease of Other Long-term Investments Decrease of Investments) Investments) Current Investments: Least Cost & Net Sales Value of Least Cost & Net Sales Value of Total Marketable Investments Total Investments Investments Least Cost & Net Sales Value of Least Cost & Net Sales Value of Each Other Current Investments Each Investment Investment 7.1.2 Methods of Income Recognition Investments in Subsidiary Companies Upon Approval of Dividends by Investee’s Eligible for Consolidations Eligible for Consolidation A.G.M (up to Financial Statement Date) Upon Approval of Dividends by Investee’s Investments in Affiliated Companies Special Value Method A.G.M (up to Financial Statement Date) Upon Approval of Dividends by Upon Approval of Dividends by Investee’s Other Long-term & Current Investments Investee’s A.G.M (up to Balance A.G.M (up to Balance Sheet Date) Sheet Date) 7.2. Fixed Tangible Assets 7.2.1. Fixed tangible assets are recorded at historical cost. Renovation and substantial repairs, which would significantly increase the capacity or useful life of the fixed assets, are considered as capital expenditures and are amortized over the useful life of such assets. Expenses relating to regular maintenance and minor repairs, incurred to increase the expected economic benefit of an asset are considered as current expenses and are recorded in the profit and loss account. 7.2.2. Depreciation of fixed tangible assets, based on the estimated useful life of such assets, is calculated in accordance with Depreciation Guideline of Article 149 of the Direct Taxation Act (‘’DTA’’): Having deducted depreciation and reduction of appreciation, book value of assets are recorded in the accounts and reflected in the financial statements.

Asset Depreciate Rate & Method

Building 25-years, Direct, Straight Line Vehicles 1, 2, 3, & 6-years, Straight Line Computer Hardware & Accessories 3, 5 & 10-Years, Straight Line & 15% Declining Electronic Devices & Communications equipment 3, 5 & 10-Years, Straight Line Personal Computer Hardware 3-Years, Straight Line ATMs & Fixed Kiosks 10-Years, Straight Line POSs & Kiosk Machines 5 & 10-Years, Straight Line Installations 5 & 10-Years, Straight Line Computer Software 5-Years, Straight Line 7.2.3. Depreciation for fixed assets which are acquired and utilized during the month is calculated on the accounts from the beginning of the next month. In cases that each of the depreciable assets after preparing for utilization is not used due to work closure or other reasons for a while, its depreciation is 30% of depreciation rate which is presented in above table. 7.3. Intangible Assets With the exception of goodwill, intangible assets are recorded in the accounts at finished cost. Goodwill is not depreciated and depreciation test is conducted at the end of each fiscal year for which provision is allocated, if required. Operating and administrative software are depreciated using the straight line method within a 5-years period. 7.4. Recognition of Granted Loans Income, Commission & Penalties Procedure According to Circular No. MB/772 dated 18.07.2005 issued by CBI’s Banking Regulations and Studies Department and pursuant to approval of session No. 1044 dated 16.07.2005 held by Credit and Monetary Council, recognition of Bank’s income is based on accrual method. In addition, based on circular 94/258020 dated November 30, 2015, accrual income is not recognized for doubtful claims. According to the mentioned method, Bank’s income recognition is as follows:

Interest & Late Payment Penalty of the Granted Loans, Commission Recognition Method Interest of Loans Granted Current Commitment Overdue Commitment Deferred Cash Doubtful Cash Late Payment Penalty Overdue Commitment Deferred Cash Doubtful Cash Commission Issued Letter of Guarantee Commitment Other Banking Services Cash Gharz-al Hassaneh Loans Cash

7.5. In executing the Usury-Free Act 30.08.1983 and its guidelines and executive instructions, and in view of circular number 69643/94 dated 2015.06.10 of the CBI, joint income and facilities and depositors’ share are calculated from joint income and their results are reported in the Investment Deposits Performance Statement. 7.6. Classifying Granted Loans Granted loans are estimated according to the “Instruction for Classifying Credit Institutes Assets” approved by Credit and Monetary Council (subject of circular No. MB/2823 dated 24.02.2007 of CBI’s Banking Regulations and Studies Department) concerning the time of deferred payment, customer financial status and its working conditions which is categorized as follows: Current (maximum up to 2 months from the maturity date or termination of repayment) Overdue (between 2 and 6 months from the maturity date or termination of repayment) Deferred (between 6 and 18 months from the maturity date or termination of repayment) Doubtful (over 18 months from the maturity date and termination of repayment) Annual Report 2019 69 70 * The management makes no judgement beyond the framework of the above instruction on the financial statements, whatsoever. 7.7. Doubtful Debts Provision According to CBI’s circular no. 91/21270 dated 19.03.2012 titled “Calculating Credit Institutions Debts Provision Method” and provisions attached to the mentioned circular, doubtful debts provision is calculated as below and reflected in the accounts:

Annual Report 2019 General reserve: equal to 1.5% net balance of current granted loans except the ones which are subject of clause 2. Specific reserve: based on the granted loans balance which is subject to overdue, outstanding and doubtful debts, after revaluation update and deducting each collateral having enforced the related rates, as stated in the following table

Loans Classification Coefficient Overdue Class 10% Deferred 20% Doubtful Class (According to Assessment Performed on Customer’s Financial Ability to 50% – 100% Repay the Dues) For those debts which have been overdue (principal amount or interest) for 5 years or more, we allocated a specific reserve of 100% (regardless of collateral value). * The management makes no judgement beyond the framework of the above instruction on the financial statements, whatsoever. 7.8. Provision for Personnel Work Termination Benefits Personnel work termination benefits provision is calculated and taken into consideration in accounts on the last amount of fixed salary and permanent benefits per annum basis. 7.9. Employee Retirement Benefits Commitments Since the Social Security Fund and Ayandeh Saz Retirement & Support Fund provide insurance coverage for the Bank’s personnel, no provision has been recorded in the accounts, in this regard. 7.10. Foreign Currency Transition Profit 7.10.1. Domestic Operations Account Foreign exchange items are recorded, at official exchange rate prevailing at balance sheet date, and non- monetary items are recorded at historical cost, translated at the exchange rate prevailing on the date of transaction. Any resulting difference shall be recognized as either income or expense for the year. 7.10.2. Foreign operations accounts Assets and liabilities of overseas branches are exchanged at the rate on balance sheet date and their income and expenses are exchanged at the rate on transaction date. Forex differences are identified in the comprehensive profit and loss statement and recorded in balance sheet under the heading of “Shareholders’ Equity”. In addition, since the differences resulting from exchanging monetary items are inherently a part of net investments in foreign operations, they are identified in the comprehensive profit & loss statement and are classified under the heading of “Shareholders’ Equity” in balance sheet, until such time as the investment is sold. 7.11. Treasury Stock In accordance with the Law to Remove the obstacles of competitive production and improve the financial system, and subject to the executive instructions of Stock Market High Council, the companies that are approved to be in the market or out of the market can purchase up to 10% of their own shares in said markets and keep it as treasury stocks. For as long as this stock is owned by the companies, it’s void of voting rights. 7.12. Payable Tax Corporation tax is calculated on the basis of declared taxable income, in accordance with tax regulations. Any difference between the final tax due and the provision made, is paid in the period the tax assessments are finalized by the authorities. 7.13. Consolidated Goodwill The accounting of trading units’ combination based on acquisition is carried out by purchase method. Cost surplus of investment acquisition in subsidiaries subject to the consolidation and affiliated companies subject to the application of equity method on group share from net fair value of their recognizable assets and liabilities at the time of acquisition is recognized as goodwill and during 20 years it is depreciated on straight line method basis. Goodwill from acquisition of affiliated companies is included in booking amount of long term investment in affiliated companies in consolidated balance sheet.

7.14. Inventories Inventories are valued at the lower of cost or net realizable value. If the cost exceeds net realizable value, the difference will be recognized as a provision for decrease in the value of inventories. The cost of inventories is calculated in accordance with the following methods:

Method

POSs Annual Weighted Average Equipment and Requirements Moving Weighted Average Other Inventories Weighted Average

7.15. Financing Expenses Financing expenses except charges which is directly attributed to acquisition of “qualified assets” is recognized as expenses in the year which is occurred. 7.16. Financial Statements of Independent Foreign Affiliates All assets and liabilities of any independent foreign affiliate shall be translated at official exchange rate on balance sheet date and income items and their expenses are exchanged at mean rates during the year. All differences resulting will be recorded under the heading of “Shareholders Equity” and reflected in the consolidated profit and loss statement. In case the foreign independent affiliated company is sold, then the resulting differences are exchanged and are directly transferred to the retained profit (loss) account. 8. “Other Items” in the notes of Financial Statements Due to the high numbers of items in some accounts, some items of each note have been reported under the heading of “Others”. Items stated under the heading of “Others” are insignificant (up to 10% of the total sum of that note). In addition, the number of items under this heading have been disclosed. 9. Cash

Parent Company Group March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Cash - IRR 1,607,203 1,579,856 1,614,058 1,592,647 Cash - Foreign Currency 9.2 454,713 740,940 610,103 950,384 Funds in Transition - IRR - - - - Funds in Transition - Foreign Currency - - - - Sight Deposit Held with Central Bank (Unlimited) 9.3 736,256 420,039 736,256 420,039 Deposits Held with Banks & Other Credit 9.4 25,408,853 48,205,807 37,367,169 55,135,743 Institutes (Unlimited) Total of Cash Funds 28,207,024 50,946,642 40,327,586 58,098,813 9.1. Sums held in cash, and Parent Company’s cash in transit including cash (IRR and foreign currency), securities, travelers’ cheques, promissory notes, bills, stamp duty have been insured against theft, fire, thunderbolt, explosion, floods, and earthquake as well as other possible hazards for up to a maximum billion Annual Report 2019 IRR3,000 for funds at the Bank’s cash and million IRR10,000 for funds in transition. 71 72

9.2. The Breakdown of Foreign Currency Balance on the Balance Sheet date is Stated below:

Group Group March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Annual Report 2019 Foreign Million IRR Foreign Million IRR Foreign Million IRR Foreign Million IRR Currency Currency Equivalent Currency Equivalent Currency Equivalent Currency Equivalent IQD 415,000.00 50 415,000 41 - - - - USD 2,804,156.87 252,801 6,767,713 508,833 2,791,636 251,247 6,730,872 504,815 USD - ETS 49,533.59 7,692 14,900 1,912 49,533.59 7,692 14,900 1,912 EURO 2,225,916.56 271,777 3,935,850 421,160 1,192,460 121,631 2,548,486 216,621 EURO - ETS 408,106.42 68,836 77,446 11,277 408,106.42 68,836 77,446 11,277 AED 253,924.50 7,455 239,429 4,990 163,428 4,115 217,329 4,438 GBP 3,845.00 451 1,535 156 3,780 439 1,470 146 Other - 1,040 - 2,015 - 751 - 1,730 Currencies Total 610,103 950,384 454,713 740,940 9.3. Sight Deposits of the Group and the Parent Company held by CBI (unlimited) on the Balance Sheet date are Stated below:

Group & Parent Company March 19, 2020 March 20, 2019 Million IRRS Million IRRS IRR Sight Deposits held at CBI (Unlimited) 187,155 67,829 Foreign Currency Site Deposits held at CBI (Unlimited) 549,101 352,210 Total of Site Deposits held at CBI (Unlimited) 736,256 420,039

9.4. Deposits Held with Banks and Credit Institutes (Unlimited):

Parent Company Group March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Sight Deposits Held with Other Domestic Banks & 44 497 71,459 93,468 Credit Institutes - IRR (unlimited) Sight Deposits Held with Other Domestic Banks & 4,715,820 1,306,401 4,719,988 1,365,457 Credit Institutes - Foreign Currency (unlimited) Term Deposits Held with Other Domestic Banks & 1,544 1,928 61,321 248,739 Credit Institutes - IRR (unlimited) Term Deposits Held with Other Domestic Banks & - 290,993 812,875 344,227 Credit Institutes - Foreign Currency (unlimited) Sight Deposits Held with Overseas Banks - Foreign 20,691,445 46,605,988 31,701,527 53,083,853 Currency (unlimited) Term Deposits Held with Overseas Banks - Foreign - - - - Currency (unlimited) Sum of Deposits held with other Banks and 25,408,853 48,205,807 37,367,169 55,135,743 Credit Institutes (unlimited) 9.5. Deposits held with banks which have some limitation on withdrawal (time limitation, etc.) have been classified under heading of “Dues from Banks”. 9.6. The Bank was debited IRR1,926,218 million by the CBI, according to notifications 23976 dated 05.03.2012 and 23727 dated 17.03.2012 and 33424 and 23476 dated 18.03.2012 referring to ratification numbered 47698T/M/9034030 dated 08.01.2012 of the Five-man Forex Resolving Workgroup dated (Article 127 of the Articles of Association and based on the order of the CBI Governor dated 01.03.2012). EN Bank filed an appeal against this decision in a letter sent to the CBI numbered 91100/2/15 dated 02.04.2012, and its process including foreign exchange special audit is ongoing. 10. Dues from Banks & Other Financial Institutes:

Group Parent Company

March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Notes Million IRR Million IRR Million IRR Million IRR Dues from the Central Bank 10.2 684,000 1,627 684,000 1,627 Dues from Other Banks and Credit 10.3 3,358,707 8,475,112 3,877,645 8,887,638 Institutes Total of Dues from Banks and Credit 4,042,707 8,476,740 4,561,645 8,889,266 Institutes 10.1. Cash held at Other Banks which are not Subject to Withdrawal Limitations are Classified under the Heading of “Cash”. 10.2. Dues from the Central Bank

Group Parent Company

March 19, 2020 Match 20, 2019 March 19, 2020 Match 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Sight Deposits Held with the - - - - Central Bank - IRR (limited) Sight Deposits Held with the Central Bank - Foreign Currency 684,000 - 684,000 - (limited) Sight Deposits Held with Central - - - - Banks of other Countries (limited) Receivable Reward of Legal - - - - Deposit Other Dues (one item) 10.2.1 - 1,627 - 1,627 Total of Dues from the Central 684,000 1,627 684,000 1,627 Bank Annual Report 2019 73 74 10.2.1. Other Dues from the Central Bank include Certificate of Foreign Exchange Based Account. 10.3. Dues from Other Banks and Credit Institutes: Parent Company Group March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Sight Deposits Held with Other Domestic - - - - Banks & Credit Institutes- IRR (Limited)

Annual Report 2019 Term Deposits Held with Other Domestic - - - - Banks & Credit Institutes- IRR (Limited) Term Deposits Held with Other Domestic Banks & Credit Institutes- Foreign Currency - - - - (Limited) Sight Deposits Held with Other Domestic Banks & Credit Institutes- Foreign Currency 351,927 436,294 351,927 436,294 (Limited) Sight Deposits Held with Other Foreign 2,745,970 945,563 2,745,970 945,563 Banks-Foreign Currency (Limited) Term Deposits Held with Other Foreign - - - - Banks-Foreign Currency (Limited) Loans Granted to Other Banks and Credit 10.3.1 779,747 629,867 260,809 217,341 Institutes Interbank Accounts - Payable Deposits in - 6,875,000 - 6,875,000 Overnight Interbank Market Payable Checques from Other Banks - 915 - 915 Other Dues (including 0 items) Total of Dues from Other Banks and 3,877,644 8,887,639 3,358,706 8,475,113 Credit Institutes

10.3.1. Loans Granted to other Banks and Credit Institutes are as follows:

Group Loans Balance March 19, 2020 March 20, 2019 Name of Bank / Credit Type of Interest Type of Amount in Currency Due Date Million IRR Million IRR Institute Contract Rate Collateral Exchange Loans in IRR Banks - - - Total of Loans in IRR - - - Loans in Foreign Currency European Future Bank Euro Syndicated 08/23/2017 - 2,556,956 260,809 217,341 Libor + 7% Total of Loans in Foreign - 260,809 217,341 Currency Gross Total of Loans - - - Deductions (Future - - - Interests,…) Net Total of Granted Loans Before Deduction of - 260,809 217,341 Doubtful Debts Reserve General Reserve for - - - Doubtful Debts Special Reserve for - - - Doubtful Debts Balance at the End of - 260,809 217,341 Fiscal Year Parent Company

Loans Balance March 19, 2020 March 20, 2019 Name of Bank / Type of Interest Type of Amount in Currency Due Date Million IRR Million IRR Credit Institute Contract Rate Collateral Exchange Loans in IRR Banks - - - Total of Loans in IRR - - - Loans in Foreign Currency Iraq Cooperation Refinance and USD Libor 4% 12/14/2014 - 2,349,453 211,451 168,087 Bank for Investment L/C to ICBI Iraq Cooperation Refinance and Libor 4% 11/17/2012 - 3,416,520 307,487 244,439 Bank for Investment L/C to ICBI European Future Bank Euro Syndicated Libor + 08/23/2017 - 2,556,956 260,809 217,341 7% Total of Loans in - 779,747 629,867 Foreign Currency Gross Total of Loans - - - Deductions (Future - - - Interests, etc.) Net Total of Granted Loans Before Deduction - - - of Doubtful Debts Reserve General Reserve for - - - Doubtful Debts Special Reserve for - - - Doubtful Debts Balance at the End - 779,747 629,867 of Fiscal Year Annual Report 2019 75 76 11. Dues from Government:

Group and Parent Company

March 19, 2020 March 20, 2019 Balance of Principal Balance of General Balance of Deferred

Annual Report 2019 & Future Receivable Future Reserve of Receivable Commission Net Net Interest and Commission Interest Doubtful Recognizance and Interest Deferred and Interest Debts Interest Million Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR IRR Legal Note Loans

Committed by 17,044 4,253 - - 21,297 - - the Government Legal Note Loans

Guaranteed by ------the Government

Total 17,044 4,253 - - - 21,297 - -

12. Loans and Dues from Governmental Parties: In spite of their irrelevance, government dues have been disclosed in compliance with the sample financial statements of CBI. 13. Loans and Dues from Non-Governmental Parties:

Group

March 19, 2020 March 20, 2019 Balance of Received Principal & Balance of Mozarebeh Balance of Deferred Provision Interest of Interest & & Civil Future Years Recognizance Interest & Total for Doubtful Net Net Future Years Commission Partnership Interest Receivable Commission Debts & Deferred Receivable Joint Interest Account Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Civil 79,689,338 18,845,413 43,957,836 (111,519) - - 142,381,068 (18,034,641) 124,346,426 155,104,177 Partnership Granted Loans-Foreign 64,269,045 938,784 9,075,005 - (5,351,476) (156,139) 68,775,218 (1,605,027) 67,170,191 54,426,959 Currency Mozarebeh 4,188,086 842,382 4,895,902 (2) - - 9,926,368 (1,517,959) 8,408,409 8,448,781 Instalment Sales 6,608,835 78,064 252,435 - (3,380,510) (56,409) 3,502,416 (188,852) 3,313,564 3,962,233 Loans Granted by Islamic Cooperation 4,915,522 39,349 - - - - 4,954,871 (1,105,575) 3,849,297 2,572,329 Bank- Foreign Currency Debtor for Paid 2,249,364 - 1,125,543 - - - 3,374,906 (1,061,131) 2,313,775 9,499,302 L/Cs Loans Granted by Leasing 8,647,041 - - - (4,179,390) - 4,467,651 (324,691) 4,142,960 2,694,795 Company Debtors for Paid 1,812,019 - 655,657 - - - 2,467,676 (746,290) 1,721,386 2,168,069 L/Gs Joaleh 2,547,067 30,424 298,001 - (445,970) (16,700) 2,412,822 (101,657) 2,311,165 3,401,157 Morabeheh 228,148,436 882,072 2,680,979 - (30,196,912) (47,672) 201,466,904 (3,085,277) 198,381,626 47,030,749 Gharz-al 4,506,587 - - - - - 4,506,587 (71,119) 4,435,468 2,751,724 Hassaneh Commitment 18,834,120 21,422 428,592 - (1,729,005) (902) 17,554,226 (268,872) 17,285,354 764,116 Purchase Debtors for 958,896 958,896 (40,777) 918,119 - Term L/Cs Debtors for purchasing 1,428,354 - - - - - 1,428,354 (21,425) 1,406,928 1,027,864 credit cards Hire Purchase 78,559 9,650 64,099 - (9,346) (8,121) 134,841 (42,075) 92,767 121,257 Salaf (Forward 6,530 234 696 - - (100) 7,361 (101) 7,259 562,409 Sale) Total of Granted Loans and Dues from Non- 428,887,799 21,687,794 63,434,745 (111,521) (45,292,609) (286,043) 468,320,165 (28,215,469) 440,104,694 294,535,921 Governmental Parties

Parent Company

March 19, 2020 March 20, 2019 Balance of Received Principal & Balance of Mozarebeh Balance of Deferred Provision Interest of Interest & & Civil Future Years Recognizance Interest & Total for Doubtful Net Net Future Years Commission Partnership Interest Receivable Commission Debts & Deferred Receivable Joint Interest Account Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Civil 79,689,338 18,845,413 43,957,836 (111,519) - - 142,381,068 (18,034,641) 124,346,426 155,335,367 Partnership Granted Loans-Foreign 64,269,045 938,784 9,075,005 - (5,351,476) (156,139) 68,775,218 (1,605,027) 67,170,191 54,426,959 Currency Mozarebeh 4,188,086 842,382 4,895,902 (2) - - 9,926,368 (1,517,959) 8,408,409 8,448,781 Debtor for 2,249,364 - 1,125,543 - - - 3,374,906 (1,061,131) 2,313,775 9,499,302 Paid L/Cs Installment 6,608,835 78,064 252,435 - (3,380,510) (56,409) 3,502,416 (188,852) 3,313,564 3,962,233 Sales Debtors for 1,812,019 - 655,657 - - - 2,467,676 (746,290) 1,721,386 2,168,069 Paid L/Gs Joaleh 2,547,067 30,424 298,001 - (445,970) (16,700) 2,412,822 (101,657) 2,311,165 3,401,157 Morabeheh 228,661,590 882,072 2,680,979 - (30,196,912) (47,672) 201,980,057 (3,092,975) 198,887,083 47,030,749 Gharz-al 4,506,587 - - - - - 4,506,587 (71,119) 4,435,468 2,751,724 Hassaneh Commitment 18,834,120 21,422 428,592 - (1,729,005) (902) 17,554,226 (268,872) 17,285,354 764,116 Purchase Debtors for 958,896 - - - - - 958,896 (40,777) 918,119 - Term L/Cs Debtors for purchasing 1,428,354 - - - - - 1,428,354 (21,425) 1,406,928 1,027,864 credit cards Hire Purchase 78,559 9,650 64,099 - (9,346) (8,121) 134,841 (42,075) 92,767 121,257 Salaf (Forward 6,530 234 694 - - (100) 7,361 (101) 7,259 562,409 Sale) Total of Granted Loans and Dues 415,838,390 21,648,445 63,434,743 (111,521) (41,113,219) (286,043) 459,410,796 (26,792,901) 432,617,896 289,499,988 from Non- Governmental Parties Annual Report 2019 77 78 Difference of the Group’s and the Parent Company’s Loans

March 19, 2020 March 20, 2019 Million IRR Million IRR Payed Loans Granted and Dues from Non-Governmental Entities - Parent Company 432,617,896 289,499,988 Added:

Annual Report 2019 Loans Granted by ICBI in Foreign Currency 3,849,297 2,572,329 Loans Granted by Leasing Company 4,142,960 2,694,795 Less: Loans Payable to the Group’s Subsidiary Companies (505,456) (231,190) Payed Loans Granted and Dues from Non-Governmental Entities - Group 440,104,696 294,535,922 13.1. Classification of the Loans Granted by the Parent Company Based on the Instruction Ratified by the Money and Credit Council is as follows:

March 19, 2020 Current Overdue Deferred Doubtful Debt Total Million IRR Million IRR Million IRR Million IRR Million IRR Installment Sales 6,449,246 25,995 1,252 462,841 6,939,335 Joaleh 2,461,598 1,469 4,875 407,549 2,875,492 Hire Purchase 38,051 86 607 113,563 152,308 Salaf (Forward Sale) 6,761 - - 700 700 Mozarebeh 3,010,610 39,585 23,271 6,852,904 9,926,370 Civil Partnership 96,134,502 1,978,145 1,944,842 42,435,097 142,492,587 Commitment Purchase 19,256,270 8,083 - 19,781 19,284,134 Morabeheh 231,717,455 262,779 104,129 140,278 232,224,641 Gharz-al Hassaneh 4,485,562 14,008 2,499 4,517 4,506,587 Debtors for term LCs 485,544 - - 473,352 958,896 Granted Loans-Foreign Currency 65,343,511 - 1,028,827 7,910,496 74,282,834 Debtor for Paid L/Cs 1,400,468 - - 1,974,438 3,374,906 Debtors for Paid L/Gs 658,877 - - 1,808,799 2,467,676 Debtors for Paid Credit Cards 1,428,354 - - - 1,428,354 432,876,809 2,330,150 3,110,304 62,604,315 500,921,579 Less: Future Years Interest (41,113,220) - - - (41,113,220) Deferred Interest & Commission - (22,525) (17,409) (246,108) (286,042) Received Cash for Mozarebeh (2) - - - (2) Civil Partnership Joint Account (111,519) - - - (111,519) Net Granted Loans before Deduction of Debts 391,652,068 2,307,626 3,092,895 62,358,207 459,410,796 Provision General Provision for Doubtful Loans (5,874,781) - - - (5,874,781) Special Provision for Doubtful Loans - (73,494) (144,623) (20,700,002) (20,918,120) Balance at 20.03.2020 385,777,287 2,234,133 2,948,272 41,658,205 432,617,896 Balance at 19.03.2019 226,969,894 5,275,948 12,754,515 44,499,631 289,499,988 13.2. Flow of Provision for Doubtful Debts of the Parent Company is as follows:

Group

March 19, 2020 March 20, 2019 General Special Special Total General Reserve Total Reserve Reserve Reserve Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Balance at the Beginning (3,456,394) (20,576,697) (24,033,091) (3,467,106) (17,967,437) (21,434,543) Increase or decrease during the year (2,418,387) (341,423) (2,759,809) 10,711 (2,609,260) (2,598,549) Balance at the End of the year (5,874,781) (20,918,120) (26,792,900) (3,456,395) (20,576,697) (24,033,092)

13.3. Parent Company’s Granted loans in Foreign Currency:

March 19, 2020 March 20, 2019

Current Overdue Deferred Doubtful Total Total Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Domestic 30,617,690 - 1,028,827 7,754,357 39,400,874 27,666,794 Resources Foreign Currency 647,993 - - - 647,993 740,873 reserve account National Development 28,726,351 - - - 28,726,351 27,478,023 Fund Total granted loans in foreign 59,992,034 - 1,028,827 7,754,357 68,775,218 55,885,690 currency 13.4. Granted Loans and dues from Non-Governmental:

March 19, 2020 March 20, 2019 24% and 21-24% 18-21% 15-18% 12-15% below 12% Total Total above Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR 2020 & Before 102,884,419 10,554,506 2,790,935 67,603 34,556 27,406,783 143,738,802 147,554,629 2021 2022 24,266,498 10,935,452 231,327,791 309,000 11,434 537,285 267,387,460 95,105,893 2023 2,503,945 945,459 8,469,963 8,001 32,837 1,064,767 13,024,973 27,687,665 2024 & after 5,946,273 3,280,403 6,451,178 11,925 28 1,630,946 17,320,754 16,068,216 Total Granted loans and dues from 4,947,201 512,687 4,000,950 - 455 8,477,515 17,938,808 27,116,676 non-governmental entities balance at 140,548,336 26,228,507 253,040,817 396,529 79,310 39,117,296 459,410,797 313,533,079 20.03.2019 141,301,533 70,538,484 3,246,382 84,085,790 66,787 14,294,103 313,533,079 Annual Report 2019 79 80 13.5. Granted Loans and Dues from Non-Governmental Entities Based on Type of Collateral:

Group

Parent Company

Annual Report 2019 March 19, 2020 March 20, 2019

Million IRR Million IRR

Deposit 56,765,100 48,731,420

Participating Bonds & Shares Guaranteed By ICB 37,776 65,487

Participating Bonds & Shares Guaranteed By Other Banks - -

Bank L/Gs 1,193,722 358,588

Transferred L/Cs - -

Shares listed on the stock exchange 41,005,759 12,423,791

Land, Building & Machineries 20,849,488 10,015,773

Machinery - -

Cheque & Promissory Note 336,354,001 238,436,053

Others 3,204,950 3,501,969

Loans & Dues with Collateral 459,410,796 313,533,081

Loans & Dues without Collateral - -

Total 459,410,796 313,533,081 - - (2) Total Million IRR (111,519) 9,662,135 1,683,285 (2,759,809) 86,635,642 34,419,686 85,083,191 (37,655,422) (24,033,092) 226,897,437 394,924,777 (26,792,901) 374,439,127 289,499,988 432,617,896 (257,045,223) ------Cards Credit (5,773) Debtors (15,653) (21,425) for Payed Million IRR 1,043,516 4,458,084 1,428,354 1,027,864 1,406,928 (4,073,246) - - - - 8,241 27,698 Debtors 291,126 834,383 655,657 Letters of for Payed Million IRR (214,664) (621,798) (124,492) (746,290) 1,955,485 2,085,460 1,812,019 2,168,069 1,721,386 Guarantee (2,520,053) ------Credit Debtors for Term (40,777) 140,646 958,896 (40,777) 918,119 Million IRR 6,867,288 (6,049,038) Documentary - - - - 6,149 Credit 26,852 Debtors 328,738 373,611 for Payed Million IRR (579,031) 9,262,471 2,249,364 1,304,112 1,125,543 9,499,302 2,313,775 (1,067,281) 20,942,373 (1,061,131) (28,284,219) Documentary - - - - - Foreign 967,148 Currency Million IRR (146,296) 8,901,626 9,769,109 1,628,735 (2,351,204) (1,458,731) 46,116,579 45,649,403 58,761,430 (1,605,027) 10,013,788 54,426,958 67,170,191 (41,906,178) Granted Loans ------Gharz-al (44,112) (27,006) (71,119) Hassaneh Million IRR 2,795,836 3,248,411 4,506,587 2,751,724 4,435,468 (1,537,660) ------Estesna' Million IRR ------903,517 Million IRR (764,738) 3,563,051 Morabeheh 46,891,970 (2,328,236) (3,092,975) 17,581,442 47,030,749 (79,151,282) (14,921,908) 230,676,318 198,417,006 198,887,083 ------26,758 (15,689) 753,048 450,014 975,641 764,117 Purchase Million IRR (552,385) (253,183) (268,872) 27,074,771 17,104,212 17,285,354 (10,723,606) Commitment - - - - - Civil Million IRR (114,376) (111,519) Partnership 51,066,703 79,689,338 62,803,249 66,949,856 13,867,125 (77,683,143) (18,013,732) (17,920,265) 106,305,778 (18,034,641) 155,335,369 124,346,426 - - - - - (2) 6,150 43,708 264,296 Million IRR (109,044) (245,480) 4,290,980 4,188,086 5,738,284 5,940,056 8,448,781 8,408,409 Mozarebeh (1,782,255) (1,517,959) ------931 Sale) Salaf (101) 6,430 4,205 8,454 7,259 (8,555) 10,680 49,568 (52,843) 566,759 562,409 (Forward Million IRR (571,009) ------(74) Hire 3,333 (5,362) 40,111 26,343 61,093 81,219 73,749 92,767 (10,804) (42,000) (42,075) 121,256 Purchase Million IRR ------Joaleh 20,306 439,311 328,425 272,911 Million IRR (383,797) (121,963) (101,657) 3,083,809 2,521,019 2,084,397 3,401,157 2,311,165 (3,520,431) ------23,125 291,775 383,116 330,500 276,957 Purchase Million IRR (910,952) (329,573) (211,977) (188,852) 3,791,094 3,171,916 3,962,233 3,313,564 Installment Annual Report 2019 Interest Receivable from Granted Loans Balance at March 20, 2019

Granted during the Year Received during the Year Net Foreign Currency Transition Effect during the Year Balance at 2020/03/19 Recognizance Receivable from Granted Loans Balance at March 20, 2019 Balance at 2020/03/19 Net Foreign Currency Transition Effect during the Year Granted during the Year Received during the Year Reserve for Doubtful Debts Balance at March 20, 2019 Realized Bad Debt Increase or Decrease during the Year Balance at March 19, 2020 Received Funds for Mozarebeh Civil Partnership Joint Account Net Total of Granted Loans Balance at March 20, 2019 Balance at March 19, 2020

13.6. Flow of Granted Loans and Dues from Non-Government Entities in the Parent Company: 13.6. Flow of Granted Loans and Dues from Non-Government Entities in the Parent Company: 81 82 Total 155,289 Million IRR 9,961,433 1,527,996 22,251,078 21,813,476 64,384,567 24,458,253 63,269,714 86,635,645 84,083,191 (10,554,323) (27,101,099) - - - - - 8,241 27,698 Debtors 834,383 655,658 834,383 655,658 Letters of for Payed Million IRR (214,664) Guarantee Annual Report 2019 - - - - - Credit 26,852 Debtors 373,611 for Payed Million IRR (579,031) 1,304,112 1,125,543 1,304,112 1,125,543 Documentary Loans - 97,817 Foreign Granted 155,289 869,332 Currency Million IRR (329,510) 2,872,403 1,103,814 6,896,707 1,473,446 8,909,974 9,769,110 (2,021,694) 10,013,788 - - 674,072 882,072 229,445 903,517 Million IRR 3,166,961 2,680,979 3,563,051 Morabeheh (2,958,961) 14,414,481 (11,962,947) - - 4,514 22,244 25,473 21,422 26,757 (26,295) 950,168 428,591 450,013 Purchase Million IRR (526,090) Commitment - - Civil Million IRR 6,532,150 7,334,975 Partnership (5,405,393) 17,718,655 18,845,413 49,231,202 43,957,837 66,949,857 62,803,249 (12,608,340) - - 25,502 18,206 (13,863) 830,742 842,382 Million IRR (231,617) 5,109,313 4,895,902 5,940,056 5,738,284 Mozarebeh - - 234 154 696 931 Sale) Salaf 4,051 9,487 4,205 40,081 (13,304) (39,539) (Forward Million IRR - - Hire 8,809 2,254 9,650 1,079 (1,414) (9,390) 72,411 64,100 81,220 73,750 Purchase Million IRR - - 1,939 Joaleh 64,039 30,424 (35,554) 375,272 270,972 298,001 439,312 328,425 Million IRR (348,243) - - 56,061 99,849 78,064 (77,846) 327,054 177,109 252,436 383,116 330,500 Purchase Million IRR (251,728) Installment Interest Receivable from Granted Loans Balance at March 20, 2019 Granted during the Year Received during the Year

Balance at March 19, 2020 Net Foreign Currency Transition Net Foreign Currency Transition Profit Recognizance Receivable from Granted Loans Balance at March 20, 2019 Granted during the Year Received during the Year Balance at March 19, 2020 Net Foreign Currency Transition Net Foreign Currency Transition Profit Granted Loans Interest Balance at March 20, 2019 Balance at March 19, 2020 13.6.1. Flow of Granted Loan Interest and Dues from Non-Governmental Entities in the Parent Company: 13.7. Granted Loans and Dues from Non-Government Entities in the Parent Company Based on the Customer’s Type: March 19, 2020 March 20, 2019 Provision for Provision for Gross Amount Net Gross Amount Net Doubtful Debts Doubtful Debts Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Individuals 60,658,823 (6,122,571) 54,536,252 71,571,456 (5,399,976) 66,171,480 Legal Entities 394,160,071 (20,669,181) 373,490,890 237,082,151 (18,559,924) 218,522,228 Personnel 4,591,902 (1,148) 4,590,754 4,879,472 (73,192) 4,806,280 Total 459,410,796 (26,792,901) 432,617,896 313,533,079 (24,033,091) 289,499,988

13.8. Loans Granted to Subsidiary and Affiliated Companies are as follows:

March 19, 2020 Interest Rate Provision for Current Non-Current Total Total Weighted Average Doubtful Debts Percentage Million IRR Million IRR Million IRR Million IRR Million IRR Affiliated Companies EN Bank Leasing Co. 18 311,073 - (4,666) 306,407 114,628 EN Bank Leasing Co. 18 201,286 - (3,019) 198,266 32,956 EN Bank Leasing Co. 18 795 - (12) 783 83,606 Total 513,154 - (7,697) 505,456 231,190 Other Affiliated - - - - - Entities Total - - - - - Total of Loans granted to subsidiary and 513,154 - (7,697) 505,456 231,190 affiliated companies Annual Report 2019 83 84 - - - - Total Million IRR 7,397,657 4,127,827 7,566,263 19,091,747 19,091,747 - - - - - Million IRR 3,420,584 7,566,263 Long-Term 11,684,641 11,684,641 March 20, 2019 Annual Report 2019 - - - - - Current 707,243 Million IRR 7,397,657 8,104,900 8,104,900 - - - - Parent Company Total Million IRR 8,422,517 3,462,985 19,483,508 31,369,010 31,369,010 - - - - - Million IRR 8,422,517 3,250,443 Long-Term 11,672,960 11,672,960 March 19, 2020 - - - - - Current 212,542 Million IRR 19,483,508 19,696,049 19,696,049 - - Total 613,395 908,097 Million IRR 2,933,928 1,534,383 7,733,603 9,255,095 13,723,406 - - - - - 613,395 613,395 Million IRR 2,933,928 3,547,323 Long-Term March 20, 2019 - - - - Current 908,097 Million IRR 1,534,383 7,733,603 8,641,700 10,176,083 Group - Total 6,118 875,932 Million IRR 3,057,238 2,077,850 1,036,461 19,568,968 26,622,567 22,683,279 - - - - - Million IRR 3,057,238 2,077,850 5,135,088 2,077,850 Long-Term March 19, 2020 - - - 6,118 Current 875,932 1,036,461 19,568,968 21,487,479 20,605,429

Note 14-5 14-4 14-2 14-3 14-1 Total of Investment in Shares and Other Securities Preferential Rights Special Participations Long-term investment in Affiliated Companies Investment in Construction Projects Total Investment in Other Shares Investment in Other Securities Current Investment in Marketable Share

14. Investment in Shares and Other Securities: 14.1. Investment in Marketable Shares is as follows: 14.1.1. Current Investment in Marketable shares ------2 Value 28,128 38,996 84,280 96,993 18,990 92,780 31,136 16,233 69,749 30,527 32,164 31,661 Market 176,350 550,235 197,755 747,990 Million IRR ------2 Value 28,128 38,996 84,280 96,993 18,990 92,780 31,136 16,233 69,749 30,527 32,164 31,661 176,350 550,235 197,755 747,990 Net Sales Million IRR Parent Company ------1 323 Cost 3,537 30,138 38,870 96,662 98,371 23,860 48,758 26,250 25,817 61,309 62,768 48,597 141,980 605,270 101,973 707,243 Million IRR ------2 553 484 6,824 15,252 28,128 38,996 24,192 95,746 96,993 18,990 92,780 31,136 16,233 74,306 30,527 32,164 31,661 176,350 206,362 815,368 202,312 Million IRR 1,017,680 Market Value ------2 Group 553 484 6,824 15,252 28,128 38,996 24,192 95,746 96,993 18,990 92,780 31,136 16,233 74,306 30,527 32,164 31,661 176,350 206,362 815,368 202,312 Million IRR 1,017,680 Net Sales Value March 20, 2019 ------512 473 Cost 3,537 6,520 14,558 30,138 38,870 25,170 98,371 31,262 48,758 26,250 25,817 61,309 62,768 48,597 141,980 113,885 129,319 798,722 109,375 908,097 Million IRR ------13 38,996 32,936 23,204 54,700 218,193 412,592 101,293 262,190 850,862 143,130 Million IRR 1,069,055 Market Value ------13 38,996 32,936 23,204 54,700 218,193 412,592 101,293 262,190 850,862 143,130 Million IRR 1,069,055 Net Sales Vale ------1 348 150 Cost 2,907 38,870 48,422 48,758 52,165 10,316 62,768 160,377 212,542 Million IRR Parent Company % of 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 50% 0 . 35% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 40% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 30% 0 . 00% 0 . 00% 0 . 00% 0 . 00% 0 . 90% 0 . 00% 0 . 00% 0 . 00% Percent Investment ------1,000 837,408 2,907,000 6,482,099 4,852,234 5,400,000 2,100,050 21,662,366 54,700,000 No. of Shares Source Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase ------13 60,789 37,584 16,053 38,996 34,328 41,070 32,936 12,739 23,204 24,165 54,700 45,463 25,757 106,879 412,592 199,353 262,190 153,513 106,637 143,130 850,862 209,520 Million IRR 1,190,750 2,041,612 Market Value ------13 60,789 37,584 16,053 38,996 34,328 41,070 32,936 12,739 23,204 24,165 54,700 45,463 25,757 106,879 412,592 199,353 262,190 153,513 106,637 143,130 850,862 209,520 Million IRR 1,190,750 2,041,612 Net Sales Value March 19, 2020 ------1 348 Cost 2,907 3,343 21,962 36,292 13,566 38,870 15,023 36,259 12,493 92,495 10,316 48,758 52,132 24,212 55,357 62,768 33,273 23,900 981,104 187,996 150,555 168,993 Million IRR 1,036,461 Group % of 4 . 70% 0 . 00% 0 . 00% 2 . 60% 1 . 00% 0 . 00% 0 . 00% 0 . 00% 3 . 94% 2 . 70% 0 . 00% 0 . 00% 3 . 70% 0 . 00% 0 . 48% 0 . 35% 0 . 00% 0 . 00% 0 . 00% 7 . 70% 1 . 70% 0 . 00% 0 . 00% 0 . 00% 8 . 10% 0 . 00% 0 . 90% 0 . 00% 4 . 40% 0 . 00% Percent 13 . 90% 15 . 50% 12 . 50% Investment ------1,000 837,408 558,765 750,000 6,800,000 1,550,000 1,000,000 1,230,000 2,907,000 6,482,099 2,254,922 5,400,000 4,852,234 2,100,050 2,500,000 1,872,767 16,300,000 16,262,466 11,000,000 23,062,366 40,000,001 54,700,000 No. of Shares Source Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Annual Report 2019 85 Sepahan Oil Co .

Shares of TSE Listed Companies Chadormalu Mining & Industrial Co . Mobin Petrochemical Co . Khouzestan Steel co . Daroupakhsh Distribution Co . Kharazmi Investment Co . Kerman Development Investment Co . Kontor Sazi Iran Co . Pars Vegetable Oil Co . Khorasan's Sabet Sugar Co . Iran Transfo Co . Persian Gulf Mobin Petrochemical Co . Other Companies

Shares of OTC Listed Companies Iran's Energy Market Financial Institutes Iran's Goods Market Financial Institutes Rail Pardaz Seir National Retirement Fund Investment Co . Seid Farab Kavir Steel Production Co . Tuka Foolad Holding Zagros Petrochemical Co . Tamin Petroleum & Petrochemical Investment Co . Mutual Funds - Asas Novin Construction Investment Co . Total Added (Less): Cost Adjustment Sepah Investment Co . Khouzestan Steel co . Iranol Oil Co . Tehran Housing Investment Group Co . Other Companies

Persian Gulf Petrochemical Industries Esfahan's Mobarakeh Steel Co . Mashin Sazi Arak Co . Central Kosar Financial & Credit Co . Pardis Petrochemical Co . Ehyaa Sepahan Industries & Mines Complex Co . Alborz Investment Co . Bafgh Mines Co . 86 298,500 Million IRR 1,781,817 1,781,817 1,340,267 1,638,767 3,420,584 Market Value March 20, 2019 298,500 Million IRR 1,781,817 1,781,817 1,340,267 1,638,767 3,420,584 Annual Report 2019 Net Book Value Million IRR 9,831,801 9,831,801 2,078,407 1,058,481 3,136,888 12,968,689 Market Value 298,500 Million IRR 1,611,676 1,611,676 1,340,267 1,638,767 3,250,443 Net Book Value - - - - - Decrease Million IRR Retained Value Cost 298,500 Million IRR 1,611,676 1,611,676 1,340,267 1,638,767 3,250,443 March 19, 2020 22% 56% 20% Percentage % of Investment

No. of Shares 560,217,563 298,499,995 1,952,303,647 Source Purchase Established Established 14.1.2. Long-Term Investment in Marketable Share: Listed Companies in TSE Novin Investment Bank Group Listed Companies in Over-the-Counter (OTC) Eghtesad Novin Investment Co . Novin Insurance Total of Long-term investment in marketable share 14.2. Investment in Other Shares of the Bank is as Follow: 14.2.1. Investment in Other Shares of this Bank is long term and there is no Current Investment. 14.2.2. Long-term Investment in Other Shares

Group March 19, 2020 March 20, 2019 Retained % of Net Book Source No. of Shares Cost Value Net Book Value Investment Value Decrease Percentage Million IRR Million IRR Million IRR Million IRR Iran Credit Scoring Co. Purchase 645,624 4% 2,285 - 2,285 2,285 Shaparak Electronic Payment Purchase 25,075,000 2% 10,473 - 10,473 10,473 Card Co. Islamic Financial Co. (ITFC) Purchase 100 0% 10,100 - 10,100 10,100 Debt Collection Co. Purchase 1,400,000 7% 1,400 - 1,400 1,400 Iraq Bank’s Investment in Purchase - - 1,960,556 - 1,960,556 428,466 Shares of Other Companies Novin Investment Counseling Purchase - - 800 - 800 115,149 Co. Padnovin Insurance Services Purchase 500,000 - 50 - 50 50 Co. Other Companies - - 92,186 - 92,186 45,473 Total of Long-Term 2,077,850 - 2,077,850 613,395 Investment in other Shares

Parent Company March 19, 2020 March 20, 2019 Retained % of Net Book Source No. of Shares Cost Value Net Book Value Investment Value Decrease Percentage Million IRR Million IRR Million IRR Million IRR EN Bank Leasing Co. Established 2,849,999,700 95.00% 2,857,000 - 2,857,000 1,907,000 Pardakht Novin Arian Co. Purchase 995,365,009 99.27% 1,003,803 - 1,003,803 1,003,803 Iranian Construction & Established 296,608,000 98.87% 296,635 - 296,635 296,635 Sustainable Development Co Iran Credit Scoring Co. Purchase 645,624 4.30% 2,285 - 2,285 2,285 Shaparak Electronic Payment Purchase 25,075,000 1.48% 10,473 - 10,473 10,473 Card Co. Islamic Financial Co. (ITFC) Purchase 100 0.14% 10,100 - 10,100 10,100 Eghtesad Novin Foreign Currency Established 392,000,000 98.00% 392,000 - 392,000 392,000 & Exchange Co. Chemibaft Co. Purchase - 0.00% - - - 141,252 Rayan Eghtesad Novin Services Co. Established 49,950,000 99.90% 50,608 - 50,608 49,950 Eghtesad Novin Investment Established 17,499,550 100.00% 17,731 - 17,731 17,731 Management Co. EN Bank Brokerage Co. Established 19,998,000 40.00% 19,999 - 19,999 19,999 Debt Collection Co. Purchase 1,400,000 7.00% 1,400 - 1,400 1,400 Eghtesad Novin Services & Established 292,107,505 97.37% 292,121 - 292,121 292,121 Supports Co. Rah-e Eghtesad Novin Financial & Established 999,500 99.95% 1,039 - 1,039 1,039 Credit Co. Islamic Cooperation Bank for Purchase 186,128,451,861 74.45% 3,419,623 - 3,419,623 3,419,623 Investment (ICBI) - Iraq Other Companies 47,701 - 47,701 852 Total of Long-Term

8,422,517 8,422,517 7,566,263 Annual Report 2019 Investment in other shares 87 88

14.3. Parent Company and Group’s Investment in Other Securities is as follows:

Parent Company

Interest Rate Publisher Source Security Type March 19, 2020 March 20, 2019 Average Annual Report 2019 Note Percentage Million IRR Million IRR

Government & Governmental Companies

Islamic Treasury Notes 14.3.1 Purchase Islamic Treasury Documents 20% 13,544,135 6,686,856

Government's Profit Purchase Participation 24% 5,000,000 - Securities

Other Companies & Investment Funds

Sepehr Anisheh Novin 12,027 12,027 Combined Mutual Funds

Government Participating Purchase Participation 18% - 980 Lease Bond

Armaghan Iranian Purchase Investment 0% 90,000 90,000 Investment Fund

Atieh Novin Investment Fund Purchase Investment 0% 30,000 30,000

Foreign Currency Investment Purchase Investment 0% - - Fund

Yekom Iranian Mutual Purchase Investment 0% 28,109 28,109 Investment Funds

Novin Market Making PE Purchase Investment 0% - 45,000 Fund

Capital Market Development Purchase Investment 0% 200,409 200,409 (CMD) Fund

Miad Iranian Common Purchase Investment 0% 4,500 4,500 Investment Mutual Fund

Novin Pishro Market Making Purchase Investment 0% 275,078 299,776 Fund

Non-Governmental Salaf Purchase Salaf 22% 299,250 - Securities

Total of Investment in 19,483,508 7,397,657 Other Securities Group

Interest Rate Publisher Source Security Type March 19, 2020 March 20, 2019 Average

Note Percentage Million IRR Million IRR

Government & Governmental Companies

Islamic Islamic Treasury Notes 14.3.1 Purchase Treasury 20% 13,544,135 6,686,856 Documents

Government's Profit Securities Purchase Participation 24% 5,000,000 -

Other Companies & Investment Funds - -

Sepehr Anisheh Novin Combined Mutual Funds Purchase Investment - 12,027 12,027

Armaghan Iranian Investment Fund Purchase Investment - 90,000 90,000

Atieh Novin Investment Fund Purchase Investment - 74,000 136,998

Yekom Iranian Mutual Investment Funds Purchase Investment - 41,339 28,827

Novin Market Making PE Fund Purchase Investment - 0 45,000

Capital Market Development (CMD) Fund Purchase Investment - 200,409 200,409

Miad Iranian Common Investment Mutual Fund Purchase Investment - 4,500 4,500

Novin Pishro Market Making Fund Purchase Investment - 275,078 299,776

Eghtesad Novin Bank Mutual Fund Purchase Investment - 28,230 28,230

Faraz Andish Novin Mutual Fund Purchase Investment - - 100,000

Nahal Sarmayeh Iranian Fund Purchase Investment - - 100,000

Government Participating Lease Bond Purchase Participation 18% - 980

Non-Governmental Salaf Securities Purchase Salaf 22% 229,250 -

Total of Investment in Other Securities 19,568,968 7,733,603

14.3.1. Parent Company and Group’s Investment Par Value of Islamic Treasury Shares is as follows:

March 19, 2020 Account Million IRR Nominal Value of Islamic Treasury Documents - 16,696,836 Islamic Treasury Documents Purchase Premium (5,393,954) - Islamic Treasury Documents Purchase Premium Depreciation 2,241,253 - (3,152,701) 13,544,135 Annual Report 2019 89 90 14.4. Long-Term Investment in Affiliated Companies:

Share from the Net Share from the Net Goodwill Assets Total Assets Million IRR Million IRR Million IRR Balance at March 20, 2019 2,679,601 254,327 2,933,927 Annual Report 2019 Additions of Period/Year (267,896) (54,592) (322,488) Share from Revaluation Surplus of Affiliated Companies 264,769 - 264,769 Share from Affiliated Companies Profit during the 1,930,644 - 1,930,644 Period/Year (before Goodwill Depreciation) Dividend Received & Receivable during the Period/Year) (1,734,428) - (1,734,428) Goodwill Depreciation - (15,186) (15,186) Balance at March 19, 2020 2,872,690 184,548 3,057,238

14.5. Despite the fact that some measures were taken to sell investments in shares of Novin Investment Bank Group, EN Investment Co., and Iraq's Islamic Cooperation Bank for Investment (ICBI), these investments are yet to be sold. Considering current situation, due to not complying with the conditions reflected in Accounting Standard No. 31 (Non-Current Assets Kept to be Sold), these companies are classified in the chapter. 15. Claims from Subsidiary and Affiliated Companies:

Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Provision Provision Balance of Balance of for Doubtful Net Net for Doubtful Net Net Due Due Debts Debts Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Dues from Subsidiary - - - - 8,213,112 - 8,213,112 8,053,255 Companies Dues from Affiliated 1,542,565 - 1,542,565 880,683 1,496,336 - 1,496,336 877,174 Companies Total of Claims from Subsidiary 1,542,565 - 1,542,565 880,683 9,709,448 9,709,448 8,930,430 and Affiliated Companies - - - - - Net 84,439 31,956 760,149 440,654 270,644 104,262 143,393 Million IRR 1,478,731 1,156,580 2,648,254 1,115,178 2,620,956 10,855,195 March 20, 2019 - - - - Net 97,000 47,185 77,973 860,578 504,647 554,196 356,927 Million IRR 2,139,070 1,156,580 2,658,836 2,589,072 1,448,196 2,177,855 14,668,115 Parent Company ------Million IRR Provision for Doubtful Debts March 19, 2020 - - - - 97,000 47,185 77,973 860,578 504,647 554,196 356,927 Million IRR 2,139,070 1,156,580 2,658,836 2,589,072 1,448,196 2,177,855 14,668,115 Balance of Due - Net 765 46,659 31,956 440,654 270,644 113,845 108,309 143,393 Million IRR 1,421,287 1,478,731 1,156,580 4,169,254 2,648,254 1,360,498 1,115,178 2,620,956 17,126,962 March 20, 2019 Net 633 97,000 98,044 46,950 77,973 504,647 586,417 356,927 Million IRR 1,106,667 2,139,070 1,156,580 2,658,836 3,139,362 2,589,072 1,360,498 1,448,196 2,177,855 19,544,727 Group ------Million IRR Provision for Doubtful Debts March 19, 2020 633 97,000 98,044 46,950 77,973 504,647 586,417 356,927 Million IRR 1,106,667 2,139,070 1,156,580 2,658,836 3,139,362 2,589,072 1,360,498 1,448,196 2,177,855 Due Balance 19,544,727 Annual Report 2019 Total of Other Accounts Receivable Others Buyers of State-owned Properties Dues from Yamam Sazeh Co . (Sale of Central Office) Dues from Zarrin Ghazal Co . Iran National Investment Co . (Sale of Shimi Baft ) Commission Receivable - L/G Received Trade Notes & Accounts of Group’s Companies Received Trade Notes & Accounts of Group’s Companies from Companies & Parties Iranian National Tax Administration Deposits & Pledges Bank Melli Iran- Bahar Branch in Tehran Provisional Debtors Claims from Personnel Dividend Receivable Interest of Deposits Receivable Foreign Brokers Securities Realised Profit Tamine Atie Derakhshan Novin Co . 16. Other Accounts Receivable: 91 92 - - - - - 2 Total (60,472) 360,816 408,441 (18,218) (31,185) Million IRR (399,443) 1,394,476 1,701,082 3,349,069 9,402,323 3,006,471 2,629,215 21,280,209 13,672,149 10,665,678 32,598,323 12,031,537 35,947,391 ------13,254 368,916 214,972 355,662 368,916 214,972 355,662 Million IRR (153,944) Warehouse Annual Report 2019 Capital Items in ------89,969 127,087 233,288 Million IRR (126,130) 1,512,518 1,189,261 1,512,518 1,513,475 1,189,261 1,513,475 Prepayments Capital Orders & - - - - - 857,890 (13,593) 838,980 (74,508) Million IRR (151,779) 4,059,346 3,294,874 4,059,346 4,751,864 3,294,874 4,751,864 Completion Assets under ------3,002 9,937 1,648 4,701 24,223 21,170 11,291 415,024 439,247 418,078 412,022 413,377 402,086 of Rental Million IRR Properties Renovation - - - - - 8,321 (9,397) (5,248) 203,233 (10,096) 901,026 104,311 977,022 (15,408) 282,702 343,561 (14,746) Furniture Million IRR Fixtures & 3,133,771 2,434,203 1,226,331 3,335,229 3,054,265 2,156,749 1,827,934 Equipment, ------6,235 5,014 6,376 59,445 63,541 (2,139) 14,282 49,259 21,028 13,192 (1,460) 63,331 (2,426) 46,253 42,303 (2,008) (2,426) Million IRR Motor Vehicles Group ------Million IRR Installation - - - - - 21,182 89,679 41,307 68,399 47,213 Building (28,824) 869,197 447,529 697,111 844,598 160,071 (20,690) 390,092 356,892 (10,962) (14,013) Million IRR 1,234,691 1,054,003 1,316,728 ------Land 86,129 110,220 (52,661) (59,163) 361,430 (21,948) Million IRR 2,888,438 2,608,119 2,888,438 2,608,119 21,280,209 24,312,335 24,312,335 Balance at March 19, 2020 Transfers & Other Adjustments Sold Other Deductions Increase during the Fiscal Year Increase (Decrease) from Revaluation Balance at March 20, 2019 Transfers & Other Adjustments Sales At March 19, 2020 Increase (Decrease) from Revaluation Balance at March 19, 2020 Book Value At March 21, 2018 At March 20, 2019 Increase during the Fiscal Year Sold Cost Balance at March 21, 2018 Sold Balance at March 20, 2019 Year Depreciation & Value Decrease Transfers & Other Adjustments Accumulated Depreciation & Value Decrease Balance at March 21, 2018 Year Depreciation & Value Decrease Transfers & Other Adjustments 17. Fixed Tangible Assets: - - - - - Total 187,450 193,819 (13,204) 405,482 (10,804) (26,552) Million IRR (181,469) 1,992,281 5,298,380 8,888,154 1,818,035 1,635,019 3,799,341 6,933,399 30,218,132 21,280,209 10,706,188 32,210,413 ------(455) 43,547 28,941 44,001 44,002 15,061 43,547 28,941 Million IRR Warehouse Capital Items in ------24,698 69,239 (57,105) Million IRR 1,062,603 1,025,770 1,037,905 1,037,904 1,025,770 1,062,602 Prepayments Capital Orders & - - - - - 11,559 703,642 194,538 703,642 Million IRR (151,779) 4,438,144 4,395,385 4,395,385 3,680,184 4,438,144 Completion Assets under ------9,937 1,648 4,701 3,002 21,170 11,291 24,223 418,078 413,377 402,086 415,024 439,247 412,022 Million IRR Renovation of Rental Properties ------(3,344) (8,159) 66,399 13,320 (3,457) (8,618) 697,011 568,970 506,861 128,396 999,402 140,902 866,659 Furniture Million IRR Fixtures & 1,124,454 1,568,373 1,563,671 1,631,315 Equipment ------612 897 461 (517) (620) (517) (620) 2,423 1,527 1,376 15,802 15,707 15,430 17,233 17,177 17,853 Million IRR Motor Vehicles Parent Company ------Million IRR Installation - - - - - 53,741 (9,343) 40,730 (2,025) 68,180 30,485 32,166 (6,366) Building 611,342 628,922 637,549 433,947 389,549 350,844 (15,155) 962,186 Million IRR 1,018,471 1,071,496 ------Land 1,430 26,983 (10,106) (10,948) Million IRR 2,219,314 2,209,796 2,209,796 2,219,314 23,506,883 21,280,209 23,506,882 Annual Report 2019 Book Value At March 21, 2018 At March 20, 2019 At March 19, 2020 Transfers & Other Adjustments Sold Balance at March 19, 2020 Year Depreciation & Value Decrease Transfers & Other Adjustments Sold Balance at March 20, 2019 Increase (Decrease) from Revaluation Year Depreciation & Value Decrease Sold Transfers & Other Adjustments Accumulated Depreciation & Value Decrease Balance at March 21, 2018 Balance at March 19, 2020 Increase during the Fiscal Year Increase (Decrease) from Revaluation Sold Balance at March 20, 2019 Transfers & Other Adjustments Increase during the Fiscal Year Cost Balance at March 21, 2018 93 94 17.1. The Bank’s estate properties were revaluated during the fiscal year ended at March 19, 2020, and the difference, being 21,280,209 Million IRR was classified as Revaluation is Shareholders’ Equity and is also reflected in the Comprehensive Profit and Loss Statement. After legal processes, the surplus of revaluation will be transferred to Capital. 17.2. The bank and the group’s assets are properly insured. 18. Intangible Assets: Annual Report 2019

Group Software Royalty to Use Goodwill Software Total Development Public Services Million IRR Million IRR Million IRR Million IRR Million IRR Cost Balance at March 21, 2018 4,841,792 229,094 - 29,512 5,100,397 Increase during the Fiscal Year 100,835 25,733 - 2,067 128,635 Internal Development - - - - Increase (Decrease) from Revaluation - - - - Sold (1,986) - (8) (1,994) Transfers & Other Adjustments - - - - Balance at March 20, 2019 4,940,641 254,827 - 31,571 5,227,039 Balance at 2019/03/21 4,940,641 254,827 - 31,571 5,227,039 Increase during the Fiscal Year 3,635 75,209 - 2,338 81,182 Internal Development - - - - Increase (Decrease) from Revaluation - - - - Sold (3,580) - - (24,766) (28,346) Transfers & Other Adjustments - - - Balance at March 19, 2020 4,940,696 330,036 9,143 5,279,874 Accumulated Depreciation & Value Decrease Balance at March 21, 2018 - 199,264 - 199,264 Year Depreciation & Value Decrease - 34,803 - 34,803 Loss of Value Depreciation - - - - - Sold - - - - - Transfers & Other Adjustments - - - - Balance at March 20, 2019 - 234,067 - - 234,067 Balance at 2019/03/21 - 234,067 - - 234,067 Increase during the Fiscal Year 40,113 - - 40,113 Loss of Value Depreciation - - - - - Sold - - - - - Transfers & Other Adjustments - - - - - Balance at March 19, 2020 - 274,180 - - 274,180 Book Value At March 21, 2018 4,841,792 29,830 - 29,512 4,901,134 At March 20, 2019 4,940,641 20,759 - 31,571 4,992,972 At March 19, 2020 4,940,696 55,856 - 9,143 5,005,694 Parent Company

Software Royalty to Use Goodwill Software Total Development Public Services

Million IRR Million IRR Million IRR Million IRR Million IRR

Cost

Balance at March 21, 2018 4,870,683 186,893 - 20,076 5,077,652

Increase during the Fiscal Year - 23,506 - 527 24,033

Internal Development - - - - -

Increase (Decrease) from Revaluation - - - - -

Sold (1,986) - - - (1,986)

Transfers & Other Adjustments - - - - -

Balance at March 20, 2019 4,868,697 210,399 - 20,603 5,099,699

Balance at 2019/03/21 4,868,697 210,399 - 20,603 5,099,699

Increase during the Fiscal Year 16,280 59,532 - 1,318 77,130

Internal Development - - - - -

Increase (Decrease) from Revaluation - - - - -

Sold (12,645) - - (132) (12,777)

Transfers & Other Adjustments - - - - -

Balance at March 19, 2020 4,872,332 269,931 - 21,788 5,164,052

Accumulated Depreciation & Value Decrease

Balance at March 21, 2018 - 167,755 - - 167,755

Year Depreciation & Value Decrease - 29,873 - - 29,873

Loss of Value Depreciation - - - - -

Sold - - - - -

Transfers & Other Adjustments - - - - -

Balance at March 20, 2019 - 197,628 - - 197,628

Balance at 2019/03/21

Increase during the Fiscal Year - 36,943 - - 36,943

Loss of Value Depreciation - - - - -

Sold - - - - -

Transfers & Other Adjustments - - - - -

Balance at March 19, 2020 - 234,570 - - 234,570

Book Value

At March 21, 2018 4,870,683 19,138 - 20,076 4,909,897

At March 20, 2019 4,868,697 12,772 - 20,603 4,902,071 Annual Report 2019

At March 19, 2020 4,872,332 35,361 - 21,788 4,929,481 95 96 19. Legal Deposit: Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Statutory Deposit-Deposit in Branches in the 57,780,602 37,642,010 57,780,602 37,642,010

Annual Report 2019 Mainland (IRR) Statutory Deposit-Deposit in Branches of Free 108,098 89,652 108,098 89,652 Zones (IRR) Statutory Deposit-Deposit Held with the Central Bank of Other Countries (Foreign 348,709 230,546 - - Currency) Total of Statutory Deposit 58,237,409 37,962,208 57,888,700 37,731,662

19.1. Legal deposit is held at CBI in accordance with clause 3 of Article 14 of Monetary & Banking Act and based on the rates set forth by the Money & Credit Council, which have been approved by the CBI. 20. Other Assets: The breakdown of the sum mentioned in balance sheet is stated below:

Group Parent Company

March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019

Note Million IRR Million IRR Million IRR Million IRR

Net Customers’ Dues for Term L/Cs 20.1 3,269,017 4,909,901 3,269,017 4,909,901

Non-operating Properties 20.2 - - - - Repossessed Collateral 20.3 17,726,610 16,175,761 17,726,610 16,175,761 Lease Deposits of Rented Buildings 461,186 507,241 461,186 507,241 Prepayments of Assets Insurance - - - - Tax Affairs Organization - Mainly 20.4 276 297 - - Withholding Tax Advance Payments of Branches Leases - - - - Prepayment to Contractors & Sellers 171,668 42,885 - - Warehouse Inventory 119,479 106,109 90,534 81,371 Gold & Silver 8,264 - - - Stamp Duty 8,198 5,231 8,198 5,231 Consolidated Goodwill 20.5 697,076 740,632 - - Blocked Deposit (for L/G) 45,000 - 45,000 - Other (9 items) 811,061 428,791 314,240 337,110 Total of Other Assets 23,317,834 22,916,848 21,914,784 22,016,614 20.1. Net Customer Dues for Term L/Cs: Group and Parent Company March 19, 2020 March 20, 2019 Million IRR Million IRR Customers’ Dues for Term L/Cs (IRR) 3,115,205 82,455 Customers’ Dues for Term L/Cs & Bills (Foreign Currency) 3,289,357 7,877,215 Total of Customers’ Dues for Term L/Cs (IRR) 6,404,561 7,959,670 Less: Advances Received of Term L/Cs - IRR (462,549) (1,468,935) Advances Received of Term L/Cs - Foreign Currency (2,672,996) (1,580,835) General Reserve for Doubtful Debts - - Net Customers' Dues for Term L/Cs 3,269,017 4,909,901

20.2. During the Fiscal Years Ended at March 19, 2020 and March 20, 2019, the Bank has had no Non-Operational Properties.

20.3. Repossessed Collaterals:

Group and Parent Company Repossessed Sales/Transfer Nature March 20, 2019 March 19, 2020 during the Period during the Period Note Million IRR Million IRR Million IRR Million IRR Moveable - - - - Immoveable Residential 9,551,527 520,907 (2,030,004) 8,042,430 Commercial/Administrative 5,343,794 2,418,581 (143,080) 7,619,295 Land 652,645 62,951 (55,267) 660,330 Factory 195,646 - - 195,646 Others 432,148 1,239,778 (463,016) 1,208,909 Total of Immoveable Repossessed 16,175,761 4,242,217 (2,691,367) 17,726,610 Collateral Total Repossessed Collateral 16,175,761 4,242,217 (2,691,367) 17,726,610 Retained Value Decrease - - Net Repossessed Collateral 16,175,761 17,726,610 Profit (Loss) of Sales 45 454,106 2,123,525

20.3.1 The Analysis of the Age of Balance of Immovable Repossessed Assets is Stated below:

Group and Parent Company Nature Year ended March 19, 2020 Year ended March 20, 2019 Million IRR Million IRR Less than a Year from Repossession Date 723,648 741,370 1-2 Years from Repossession Date 1,285,976 693,179 More than 2 Years from Repossession Date 4,320,811 4,583,742

Under Repossession 11,396,175 10,157,470 Annual Report 2019 Balance of Immoveable Repossessed Collaterals 17,726,610 16,175,761 97 98 20.3.2. Profit and loss resulting from the sale of repossessed collateral is recorded in the profit and loss statement and disclosed in note 45. 21. Dues to Banks and Other Credit Institutes:

Group Parent Company

Annual Report 2019 March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Central Bank Deposits - IRR - - - - Sight Deposits - Foreign Currency 2,407,793 26,157,158 2,407,792 26,157,158 Term Deposit - Foreign Currency - 30,204 - 30,204 Dues for Overdraft in Current Account - - - - Due for Difference of Foreign Currency Rate 100,650 162,733 100,650 162,733 Due for Foreign Currency Reserve Account - - - - Foreign Currency Purchase 382,112 1,690,034 382,112 1,690,034 Legal Deposit - - - - Received Loans - Foreign Currency 21.1 2,002,959 92,466 2,002,959 92,466 Received Loans - IRR 21.2 713,299 428,959 713,299 428,959 Others - - - - Total of Dues to Central Bank 5,606,813 28,561,553 5,606,813 28,561,553 Domestic Banks & Credit Institutes Sight Deposit - IRR 63,277 10,318 63,277 10,318 Sight Deposit - Foreign Currency 3,319,808 1,988,421 3,319,808 1,988,421 Dues to Bank for Shetab Transfers 910,093 1,263,515 910,093 1,263,515 Dues for The Bank's Checks Settled by Other - - - - Banks Dues to Overseas Banks - Current Account - IRR 31,629 26,350 31,629 26,350 Equivalent Interbank Account - Received Deposits in 8,000,000 - 8,000,000 - Interbank Overnight Market Domestic Creditors - International Brokers 717,265 1,414,929 717,265 1,414,929 Received Loans - IRR - 89,816 - - Received Loans - Foreign Currency - - - - Others - - - - Total of Dues to Domestic Banks and Credit 13,042,072 4,793,348 13,042,072 4,703,532 Institutes Overseas Banks Sight Deposits - IRR - - - - Sight Deposits - Foreign Currency 70,993 59,161 70,993 59,161 Received Loans - Foreign Currency - 1,303,175 - 1,303,175 Due in Current Account (1 Overdraft) - - - - Others - - - - Total of Dues to Overseas Banks 70,993 1,362,336 70,993 1,362,336 Total of Dues to Banks and Other Credit 18,719,878 34,717,237 18,719,878 34,627,421 Institutes 21.1. Interest on Foreign Currency Loans Obtained from the CBI (1 case) is 18%. 21.2. Interest on IRR Loans Obtained from the CBI (3 cases) is 1.55%. 22. Customers’ Deposits:

Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Individuals Sight Deposits the Likes 22.1 11,515,489 6,955,795 11,515,489 6,955,795 Saving Deposits the Likes 22.2 7,417,408 4,083,629 7,404,386 4,069,105 Other Deposits and Advances 22.3 80,530 78,907 80,530 78,907 Total of Individuals' Deposits 19,013,427 11,118,330 19,000,405 11,103,806 Legal Entities Sight Deposits the Likes 22.1 57,617,800 16,785,451 56,991,261 16,922,286 Saving Deposits the Likes 22.2 3,814,081 3,984,678 4,304,800 3,750,479 Other Deposits and Advances 22.3 12,892,549 11,122,131 12,892,549 11,122,131 Total of Legal Entities' Deposits 74,324,430 31,892,259 74,188,611 31,794,896 Total of Customers' Deposits 93,337,858 43,010,589 93,189,016 42,898,702

22.1. Customers’ Sight Deposits :

Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Current Gharz-al Hassaneh Deposits – IRR 66,991,889 22,579,459 67,089,211 22,639,114 Current Gharz-al Hassaneh Deposits - Foreign Currency 1,077,650 95,043 353,789 181,026 Banking Cheques Sold 1,063,748 1,066,742 1,063,748 1,057,938 Unclaimed Balance - IRR 2 2 2 2 Total of Sight deposits 69,133,289 23,741,246 68,506,750 23,878,081

22.2. Saving Deposits of Customers:

Group Parent Company

March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Saving Gharz-al Hassaneh Deposits - IRR 7,709,341 4,164,849 7,709,341 4,164,849 Saving Gharz-al Hassaneh Deposits- Foreign Currency 3,509,126 3,888,933 3,986,824 3,640,211 Special Gharz-al Hassaneh Deposits - Not Used 13,009 14,510 13,009 14,510 Saving Deposits & for Home Purchase 13 13 13 13 Total of Saving deposits 11,231,490 8,068,306 11,709,187 7,819,584 Annual Report 2019 99 100 22.3. Other Deposits and Advances Received:

Group Parent Company March 19, 2020 March 20, 2019 Million IRR Million IRR Cash Deposit for L/Gs - IRR 9,522,054 6,200,884

Annual Report 2019 Cash Deposit for L/Gs - Foreign Currency 1,741,442 1,355,644 Advances Received for L/Cs - IRR 911,174 605,707 Advances Received for L/Cs - Foreign Currency 798,408 3,038,803 Other (0 Item) - - Total of Other deposits and advances 12,973,079 11,201,038

23. Dividend Payable:

Cash Dividend Payable Capital Approved Balance at Balance at Dividend per at Year ended Increase Dividend March 20, 2019 March 19, 2020 share March 19, 2020 from Dues IRR Million IRR Million IRR Million IRR Million IRR Million IRR Fiscal Year Ended 220 2,488,640 9,327 - - 9,327 2016/03/19 Fiscal Year Ended ------2017/03/20 Fiscal Year Ended ------2018/03/20 Fiscal Year Ended ------March 20, 2019 Fiscal Year Ended ------March 19, 2020 Total 9,327 9,327

Group Parent Company

March 19, 2020 March 20, 2019 Note Million IRR Million IRR Parent Company Bank Eghtesad Novin 23.1 9,327 9,327 9,327 9,327 Subsidiary Companies EN Bank Leasing Co. - 8 Pardakht Novin Arian Co. - - EN Bank Capital Management Co. - - EN Bank Foreign Currency & Exchange Services 6,489 6,384 EN Bank Support and Services Co. - - EN Bank Investment Co. 29,443 2,467 Avaye Salam Mehr Novin Co. - - Total 46,259 18,186 23.1. The majority of the Bank’s payable dividend, is for Parsian Financial Group Co., which in compliance to the temporary order no. 951011022890064, dated April 11, 2016, is kept with the Bank. The said shares are under investigation by judicial authorities, to which the trial court ruling validates the Bank’s actions.

24. Debt Securities: In spite of their irrelevance, government dues have been disclosed in compliance with the sample financial statements of CBI. 25. Corporation Tax Provision:

Group and Parent Company March 19, 2020 March 20, 2019 Million IRR Million IRR Flow of Parent Company during the Year Balance at the Beginning of the Year 965,348 763,653 Provision for Year Corporation Tax - - Amendment of Performance Tax for Previous Years - 965,348 Settled during the Year (965,348) (672,993) Applicable Performance Tax Provision - 1,056,008 Tax Prepayments - (90,660) Balance at the End of the Year - 965,348 Balance of Subsidiary Companies Account Balance at the Beginning of the Year 276,037 294,792 Provision for Year Corporation Tax 315,194 253,329 Amendment of Performance Tax for Previous Years - - Settled during the Year (241,703) (272,084) Applicable Performance Tax Provision 349,528 276,037 Tax Prepayments - - 349,528 276,037 Group and Parent Company Balance at the End of the Year 349,528 1,241,385 Annual Report 2019 101 102 Final Method Recognition Being Surveyed Being Surveyed Being Surveyed Being Surveyed Being Surveyed Being Surveyed Being Surveyed Being Surveyed Being Surveyed Being Surveyed Annual Report 2019 ------Provision Balance of 1,729,001 Million IRR March 20, 2019 ------Provision Balance of . - - - - Tax Paid* (503,049) (958,830) (768,801) (618,751) (344,268) (1,729,001) (1,145,728) (1,037,723) Tax - - - - 975,142 958,830 768,801 629,974 344,618 Final Tax 1,344,424 1,729,001 1,145,728 1,089,372 - 779,641 642,215 393,231 2,437,044 2,878,678 1,861,846 3,416,911 2,035,555 1,248,221 1,105,107 1,216,377 1,149,300 Recognized Tax March 19, 2020 - Million IRR ------350,956 276,265 314,236 283,896 247,513 143,061 170,987 Declared Tax ------965,348 635,826 759,944 (763,653) 1,729,001 2,712,696 1,227,843 1,639,021 1,261,761 1,100,056 Income Liable to Tax - - - (Loss) 605,200 818,439 (108,438) 2,399,545 3,928,750 6,006,370 4,730,636 4,858,552 3,286,568 2,397,496 1,986,084 1,247,684 (1,959,909) Declared Profit 2008-9 2007-8 2018-19 2019-20 2017-18 2015-16 2016-17 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 Fiscal Year Tax Prepayments Balance of Provision Tax Provision before Payment The Tax condition of the Parent Company (corporation tax) on Balance Sheet date is as follows: 25.1. * "Tax Paid" is the amount payed to the Ministry of Economic and Financial Affairs. 25.1.1. Corporation tax for the 2007-08 period has been paid according to a final tax notice, against which, the Bank has filed an appeal. This case is currently under review of the Council of Article 251 of Direct Taxation Act. 25.1.2. Corporation tax recognition notice for the 2008-09 until 2011-12 periods, have been paid and settled as far as the tax authorities are concerned. However, the Bank has filed an appeal against the reviewed procedure in reference with special direct tax provision and the means of allocating costs to final taxable income (investment and participating bonds). The case is being referred to the High Administrative Court and currently awaits for review. 25.1.3. Final corporation recognition tax notice for the 2012-13 period amounting to IRR975,142 million has been notified. The Bank has in turn filed a lawsuit at the High Administrative Court, which following preliminary review, has issued a ruling under appeal numbered 9409970901401942 dated 26.10.2015, ordering a halt to operation execution, until such time as a final decision has been made. 25.1.4. Final corporation tax recognition notice for the 2013-14 period in the amount of IRR1,248,221 million has advised to the Bank and the Bank has proceeded to make settlement and payed IRR1,145,728 million. However, considering the Bank's appeal objecting the procedures of investigating the distribution of cost to taxable incomes and untaxable incomes (participation bonds, investments, and free zones) has been filed with the high administrative court and the court's final verdict has been in the Banks' favor, hence the dispute resolution board's ruling is nullified and the file is under investigation by the equivalent tax dispute resolution to comply the high administrative court's verdict. 25.1.5. Final corporation tax recognition notice for the 2014-15 period in the amount of IRR1,729,001 million has been finalized, the complete amount of which has been payed. However, considering the fact that the Bank's law suit against the investigation procedure to the High Administrative Court has been filed and the appeal decision has been in the Bank's favor. 21.5.6. The case for the corporation tax of 2015-16 period is underway in board of dispute settlement appeal process. Final corporation tax recognition notice for this period is in the amount of IRR1,344,434 million. 25.1.7. Final corporation tax recognition notice for the 2016-17 period in the amount of IRR3,416,911 million has advised to the Bank. The Bank has filed a suit against the investigation procedure and the case in being investigated by the jury of tax dispute settlement. 25.1.8. Final corporation tax recognition notice for the 2017-18 period in the amount of IRR2,878,678 million has advised to the Bank. 25.1.9. Final corporation tax recognition notice for the 2018-19 period in the amount of IRR2,437,044 million has advised to the Bank. 25.1.10. According to the Tax Affairs organization's assessment notice regarding removing the obstacles against production in 2016-17, 2017-18, and 2018-19 periods, a total amount of IRR12,233,546 million (IRR1,722,491 million for corporate profit and stocks profit, IRR9,943,137 million for income of investing in TSE companies and non-TSE companies, and IRR1,722,491 million for income from surplus of immovable assets of banks and credit institutes) was demanded, to which the Bank has appealed numerous law suits, and the court rulings have been in favor of the Bank and a considerable amount of the demanded tax is to be returned to the Bank. It's worth mentioning that in compliance with the order of the Tax Affairs Organization regarding the tax of removing obstacles against production in 2016-17 period, the bank had to deliver 6 checks in total amount of IRR333,283 million and a guarantee check in the amount of IRR6,889,559 million, which according to the ruling of relevant legal authorities, the guarantee check is to be returned to the Bank. Annual Report 2019 103 104 26. Provisions and other Dues Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Loans Received from National Development Fund 26.1 54,072,295 45,551,355 54,072,295 45,551,355 of Iran Annual Report 2019 Dues to the Government - - - - Bank’s Dues for Term L/Cs - IRR 3,115,205 82,455 3,115,205 82,455 Bank’s Dues for Term L/Cs & Bills-Foreign 3,289,357 14,379,259 3,289,357 7,877,215 Currency Notes Payable 12,976 1,776,683 - - Commission Advances Received 1,626,163 687,805 1,626,163 687,805 Insurance Premium Payable 25,742 28,890 10,916 8,072 Provision for Expenses Payable 260,720 432,722 293,288 270,734 Withholding Tax Payable 130,271 224,985 26,009 59,215 Dues for Bills Paid (Electricity, Telephone, Water 76,287 37,738 76,287 37,738 & Waste Water etc.) Deposits Guarantee Fund Membership Fee 436,000 360,000 436,000 360,000 Payable Advances Received 633,992 11,239 Certificate of IRR Deposit based on Foreign - 455 - 455 Currency Accounts & Notes Receivable & Payable of Group 442,895 672,247 - - Companies from Companies & Individuals Affiliated Companies 106,629 241,229 17,239 757,478 Other Dues 5,729,783 862,458 5,158,400 8,236,010 Total of Provisions and Other Dues 69,958,313 65,349,522 68,121,159 63,928,531

26.1. Loans Received from National Development Fund at the Balance Sheet Date are as follows:

Foreign Received Final Maturity Interest Balance of Loans - Balance of Amount Received Currency Date Date Rate Foreign Currency Loans Percentage Million IRR Loans - Foreign Currency 500,000,000 USD 2016/03/02 2019/03/03 6 503,883,147 45,349,483 55,000,000 EUR 2015/01/14 2025/01/13 2 52,778,097 5,383,366 4,307,456 EUR 2017/08/11 2021/06/14 2 4,521,765 461,220 15,975,937 USD 2017/05/12 2025/12/13 6 15,975,937 1,437,834 Total of Loans - Foreign Currency 52,631,903 Loans - IRR Million IRR 1,000,000 2018/09/18 2020/09/17 13.5-18 1,000,000 440,000 2018/04/04 2020/04/3 13.5-18 440,392 Total of Loans - IRR 1,440,392 Total of Loans received from 54,072,295 National Development Fund Total 312,148 745,216 (32,918) 1,024,447 - - - - Retirement Provision for Commitments the Personnel's March 20, 2019 Benefits 312,148 745,216 (32,918) Provision 1,024,447 for Services Termination Total 515,783 (61,395) 1,024,447 1,478,834 - - - - Retirement Provision for Commitments the Personnel's Parent Company March 19, 2020 Benefits 515,783 (61,395) Provision 1,024,447 1,478,834 for Services Termination Total 340,250 821,606 (52,811) 1,109,045 - - - - March 20, 2019 Retirement Provision for Commitments the Personnel's Benefits 340,250 821,606 (52,811) Provision 1,109,045 for Services Termination Total 611,703 (127,345) 1,109,046 1,593,404 - - - - Retirement Provision for Commitments Group the Personnel's March 19, 2020 Benefits 611,703 (127,345) 1,109,046 1,593,404 Provision for Services Termination

Annual Report 2019 Balance at the End of Balance at the End of the Year Paid during the Year Provision Provided during the Year Balance at the Beginning of the Year 27. Provision for Employees’ Service Termination Benefits and Retirement Commitments: 105 106 28. Investment Depositors’ Rights: Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Term Investment Deposits Annual Report 2019 Long-term Investment Deposits 28.1 311,597,039 207,734,144 311,656,039 207,699,853 Short-term Investment Deposits 28.1 104,283,261 96,285,180 105,296,428 97,038,743 Special Short-term Investment Deposits 28.1 1,863,313 256,146 1,863,313 256,146 Investment Deposits Received from Banks 28.1 305 287 305 287 Total of Term Investment Deposits 417,743,918 304,275,757 418,816,085 304,995,029 Interest Payable to Term Investment Deposits Long-term Investment Deposits 28.2 2,531,784 1,914,212 2,531,784 1,914,212 Short-term Investment Deposits 28.2 374,808 409,518 374,808 409,518 Special Short-term Investment Deposits 28.2 1 1 1 1 Investment Deposits Received from Banks 28.2 - - - - Total Interest Payable to Term Investment Deposits 2,906,593 2,323,731 2,906,593 2,323,731 Total of Investment Depositors’ Rights 420,650,510 306,599,489 421,722,678 307,318,760

28.1. Term-Investment Deposits in the Parent Company based on the IRR and Foreign Currency is as follows:

March 19, 2020 March 20, 2019 Foreign Foreign IRR Total IRR Total Currency Currency Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Short-term Investment 105,205,208 91,220 105,296,428 96,781,730 257,013 97,038,743 Deposits Investment Deposits Received from Banks & Credit 305 - 305 287 - 287 Institutes Up to 3 Months - 1,860,177 1,860,177 - 30,475 30,475 3 to 6 Months 105 1,226 1,331 105 223,087 223,192 6 Months to 1 Year - 1,805 1,805 - 2,479 2,479 General Certificate of - - - Deposit Special Certificate of Deposit 5,662,559 - 5,662,559 20,792,038 - 20,792,038 1- Year 305,923,073 69,766 305,992,839 183,716,426 2,614,262 186,330,688 2- Year ------3- Year ------4- Year ------5- Year 640 - 640 577,127 - 577,127 Total of Term Investment 416,791,890 2,024,194 418,816,084 301,867,713 3,127,317 304,995,029 Deposits

* The balance of deposits of over 1-year refers to previous years. 28.1.1. Long-Term Investment Deposits in the Parent Company based on Maturity Date and Interest Rate:

March 19, 2020 March 20, 2019 Above 22% 19-22% 16-19% 13-16% 10-13% 10% & Below Total Total Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Overdue ------2019-2020 640 780 130,229 42,851,041 - 106,813,391 149,796,081 125,665,809 2020-2021 562,466 155,331,285 36,214,426 49,450,824 - 26,540,618 268,099,618 179,329,219 2021-2022 & After - 513,669 151,741 248,896 - 6,079 920,385 - Total of Long-term 563,106 155,845,734 36,496,396 92,550,761 - 133,360,088 418,816,085 304,995,029 Investment Deposits 19-Mar-20 1,519,502 43,712,258 23,510,577 109,682,709 - 126,569,984 304,995,029

28.1.2. Flow of Investment Deposits – IRR: Parent Company Balance at March Deposits during the Repayment of Balance at

20, 2019 Year / Period Deposits March 19, 2020 Million IRR Million IRR Million IRR Million IRR General Certificate of Deposit - - - - Special Certificate of Deposit 20,792,038 8,395,637 (23,525,115) 5,662,559 1- Year 183,716,426 797,378,465 (675,171,818) 305,923,073 2- Year - - - - 3- Year - - - - 4- Year - - - - 5- Year 577,127 23,256 (599,743) 640 Short-term Investment 96,781,835 2,630,823,417 (2,622,399,939) 105,205,313 Special Short-term Investment - - - - Investment Deposit Received from Banks & Credit 287 17 - 305 Institutes Balance of Investment Deposits - IRR 301,867,713 3,436,620,793 (3,321,696,615) 416,791,890

28.1.3. Flow of Investment Deposits - Foreign Currency: Balance at Deposits during Repayment of Balance at Balance at Balance at March 20, 2019 the Year/Period Deposits March 19, 2020 March 19, 2020 March 20, 2019 Foreign Currency Foreign Currency Foreign Currency Foreign Currency IRR Equivalent IRR Equivalent Amount Amount Amount Amount Long Term Deposits USD 12,134,471.05 125,991.00 11,046,284.04 1,214,178.01 109,276 910,085 EUR 19,957,612.56 60,121.99 19,594,048.34 423,686.21 43,216 1,696,397 AED 332,920.00 0.00 190,000.00 142,920.00 4,970 6,799 GBP 9,855.96 26,500.00 4,000.00 32,355.96 3,528 981 Ordinary & Special Short-term Investment Deposits USD 2,356,290.03 11,704,473.10 10,063,321.00 3,997,442.13 359,770 176,722 EUR 3,930,494.04 21,862,162.49 11,065,083.23 14,727,573.30 1,502,212 334,092 GBP 22,500.00 7,200 18,500.00 11,200.00 1,221 2,241 Investment Deposits Received from Banks & Credit Institutes AED ------Total of Investment Deposits - Foreign 2,024,194 3,127,317 Currency Annual Report 2019 107 108 28.1.4. The Composition of Depositors of Investment Deposits is Stated Below:

March 19, 2020 March 20, 2019 No of Depositors Million IRR No of Depositors Million IRR Deposits- IRR Annual Report 2019 Legal Entities 6,497 141,783,031 47,082 119,361,948 Natural Persons 36,588 275,008,555 3,360,418 182,505,477 Investment Deposits Received from Banks & Credit Institutes 9 305 10 287 Total of Deposits - IRR 43,094 416,791,891 3,407,510 301,867,713 Deposits- Foreign Currency Legal Entities 4 1,945,558 59 2,320,355 Natural Persons 234 78,636 1,169 806,962 Investment Deposits Received from Banks & Credit Institutes - - Total of Deposits- Foreign Currency 238 2,024,194 1,228 3,127,317 Total of Deposits 43,332 418,816,085 3,408,738 304,995,030 - - - - - 1 1,089 4,892 - 374,808 19, 2020 Million IRR 2,525,803 2,906,593 Balance at March ------Effect 1,741 1,741 Exchange Million IRR - - - - 139 Year 161,276 511,367 during the Million IRR 5,873,717 2,166,499 1,579,963 40,955,358 51,248,318 Interest Paid ------Parent Company Interest Million IRR Difference & On-account between Actual - - - - 139 Year 29,047 Interest 511,367 during the Million IRR 5,857,690 2,166,499 1,564,430 On-account 41,700,267 51,829,438 ------1 18,683 390,835 133,318 Million IRR Balance at 1,780,894 2,323,731 March 20, 2019 ------1 1,089 4,892 374,808 Million IRR Balance at 2,525,803 2,906,593 March 19, 2020 ------Effect 1,741 1,741 Exchange Million IRR - - - - 139 Year 161,276 511,367 during the Million IRR 5,777,088 2,166,499 1,579,963 40,955,358 51,151,690 Interest Paid Group ------Interest Million IRR Difference & On-account between Actual - - - - 139 Year 29,047 Interest 511,367 during the Million IRR 5,761,061 2,166,499 1,564,430 On-account 41,700,267 51,732,810 ------1 18,683 390,835 133,318 Million IRR Balance at 1,780,894 2,323,731 March 20, 2019 Interest Payable to Term-Investment Deposits: Annual Report 2019

Short-term Deposits Special short-term Deposits General Certificate of Deposit Special Certificate of Deposit 1-Year Deposits 2-Year Deposits 3-Year Deposits 4-Year Deposits 5-Year Deposits Investment Deposit Received from Banks & Credit Institutes Deposits-Foreign Currency Total of Interest Payable to Term-Investment Deposits

28.2. 109 110 29. Capital: When the EN Bank was established, the initial capital amounted IRR250 billion, divided into 250 million shares with a nominal value of IRR1,000. The mentioned capital has increased on some occasions up to IRR13,131 billion which has been registered in Companies Registration Office on 25.12.2016.

Registration Date of % of Capital Amount of Capital New Capital Source of Capital Increase Capital Increase Increase Increase Annual Report 2019 16.11.2004 100% 250,000 500,000 Cash Contribution & Claims 18.11.2004 100% 500,000 1,000,000 Cash Contribution & Claims 14.02.2007 100% 1,000,000 2,000,000 Cash Contribution & Claims 11.06.2008 25% 500,000 2,500,000 Cash Contribution 12.07.2009 20% 500,000 3,000,000 Cash Contribution & Claims 26.05.2010 33.3% 1,000,000 4,000,000 Cash Contribution & Claims 08.01.2011 37.5% 1,500,000 5,500,000 Cash Contribution & Claims 20.02.2012 45.5% 2,500,000 8,000,000 Cash Contribution & Claims 20.10.2013 41.4% 3,312,000 11,312,000 Assets Revaluation Surplus 25.12.2016 16.1% 1,819,000 13,131,000 Retained Earnings

29.1. The Composition of Shareholders With more than One Percent Ownership Stake on Balance Sheet date is Stated Below:

March 19, 2020 March 20, 2019 No of Shares % of Shares No of Shares % of Shares 1% & Above Percentage Percentage Behshahar Tehran Industrial Group Construction Investment 1,148,233,740 8.74% 1,148,233,740 8.74% Co. (Public J.S) Behpkhsh Co. (Public J.S) 1,146,284,371 8.73% 1,146,284,371 8.73% Behshahr Iran Industrial Group Investment Co. 846,396,193 6.45% 870,736,193 6.63% Behshahr Industries Development Sugar Industry 728,839,846 5.55% 728,839,846 5.55% Management Co. (Public J.S) Iran Construction Investment Co. (Public J.S) 667,313,207 5.08% 1,246,715,297 9.49% Javanan Housing Co. (Private J.S) 638,698,071 4.86% 1,119,075,363 8.52% Saramad Behshahr Industries Co. (Public J.S) 532,551,544 4.06% 532,551,544 4.06% Ayandeh Pouya Plan & Development Management Co. 460,842,796 3.51% 460,842,796 3.51% (Private J.S) Behpak Industrial Co. (Public J.S) 380,525,189 2.90% 380,525,189 2.90% Tehran Renovation & Construction Co. (Public J.S) 377,204,654 2.87% 882,490,564 6.72% Samaneh Stratus Investment Co. (Public J.S) 278,195,604 2.12% 720,320,258 5.49% Parsian Bank Financial Group Co. (Private J.S) 276,532,218 2.11% 276,532,218 2.11% Novin Housing Co. (Public J.S) 275,563,489 2.10% 494,656,334 3.77% Civil Pension Fund Investment Co. (Public J.S) 275,226,812 2.10% 275,226,812 2.10% Karafarin Bank Co. (Public J.S) 239,305,342 1.82% - - Behshahr Industries Development Co. (Public J.S) 205,712,505 1.57% 46,891,861 0.36% Civil Servants Pension Fund 204,787,766 1.56% 204,787,766 1.56% Capital-oriented management investment company 178,000,000 1.36% 156,000,000 1.19% Poshtiban Ijad Sakhteman Co. (Private J.S) 69,648,160 0.53% 305,441,018 2.33% Faraz Civil Development Engineering Co. 35,372,095 0.27% 245,991,683 1.87% Kowsar Bahman Investment Management Company(Public - - 242,357,587 1.85% J.S) Others - - - - Legal Entities (177 Shareholders) 1,393,867,348 10.62% 124,771,908 9.86% Individual (68115 Shareholders) 2,771,899,050 21.11% 398,779,652 3.04% 13,131,000,000 100% 13,131,000,000 100%

30. Capital Increase in Progress: In spite of its irrelevance, the heading has been disclosed in compliance with the sample financial statements of CBI. 31. Provision for Share Premium: In spite of its irrelevance, the heading has been disclosed in compliance with the sample financial statements of CBI. 32. Legal Reserve:

Group March 19, 2020 March 20, 2019 Million IRR Million IRR Flow of the Parent Company during the Year Balance at the Beginning of the Year 4,650,091 4,650,091 Transfer from the Allocable Profit 90,780 - Balance at the End of the Year 4,740,871 4,650,091 Balance of Subsidiary Companies Account: EN Bank Leasing Co. 229,214 190,003 Novin Insurance Co. 48 48 Pardakht Novin Arian Co. 53,916 37,502 Rah-e Eghtesad Novin Financial & Credit Services Co. 100 100 Novin Capital Management Co 1,890 1,890 Eghtesad Novin Foreign Currency & Exchange Services Co. 41,291 41,291 Paydar Iranian Investment Co. 2,192 2,192 Islamic Cooperation Bank for Investment - Iraq 155,002 111,894 Novin Support Services Co. 8,176 8,176 EN Investment Co. 41,809 34,188 Avaye Salame Mehr Novin Co. 99 99 533,736 427,382 5,274,607 5,077,473

32.1. Article 31 of the Bank’s Articles of Association and clause A of Article 33 of the Monetary & Banking Act, require that 15% of the year’s profit, less losses in the previous years and transfer of 5% of the profit of subsidiaries (according to Articles 140 and 238 of Commercial Code as amended ratified in 1347) from allocable profit to legal deposit. The above articles require that this process to proceed until such time as legal deposit reaches capital and 10% of the capital for the subsidiary companies, after that, Annual Report 2019 it is optional. Legal deposits are not transferable to company capital and cannot be distributed among 111 shareholders, unless in the event of liquidation. 112

33. Other Reserves: The Parent Company does not have any Other Reserves. The balance of other reserves completely related to the subsidiaries is as follows:

Annual Report 2019 Group March 20, 2019 March 20, 2019 Million IRR Million IRR Balance at the Beginning of the Year 34,048 31,896 Decrease - - Transfer from Allocable Profit 10,031 2,152 Balance at the End of the Year 44,078 34,048 34. Assets Revaluation Surplus:

Group March 19, 2020 March 20, 2019 Amount of Assets Surrendered, Written Down, Balance of Assets Balance of Assets Date Revaluation Retired/Capital Increase Revaluation Revaluation Million IRR Million IRR Million IRR Million IRR March 20, 2019 21,544,979 - 21,544,979 - Total 21,544,979 - 21,544,979 -

Parent Company March 19, 2020 March 20, 2019 Amount of Assets Surrendered, Written Down, Balance of Assets Balance of Assets Date Revaluation Retired/Capital Increase Revaluation Revaluation Million IRR Million IRR Million IRR Million IRR March 20, 2019 21,280,209 - 21,280,209 - Total 21,280,209 - 21,280,209 -

35. Foreign Currency Transition Profit: Group March 19, 2020 March 20, 2019 Note Million IRR Million IRR Currency Translation of Overseas Operations Banking Operations in Iraq 8,378,700 3,162,792 Total 8,378,700 3,162,792 Result of Legal Fluctuations of Exchange Rate 35.1 - - Currency Translation 8,378,700 3,162,792

35.1. According to CBI circular 1844/MB dated 19.01.2004, equalizing the foreign currency rates, the differences from legal forex in 2003-04 are reflected under the heading of “Forex Fluctuation Results” which is relevant to this bank. 36. Treasury Stock In spite of its irrelevance, the heading has been disclosed in compliance with the sample financial statements of CBI. 37. Income from Granted Loans, Investment and Due Bonds:

Group

March 19, 2020 March 20, 2019

Joint Non-joint Total Joint Non-joint Total

Note Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR

Income from Loans 37.1 31,901,918 4,341,304 36,243,222 35,712,160 4,772,739 40,484,898 Granted

Income from Investment & Debt 37.2 6,135,665 133,037 6,268,701 1,528,700 56,818 1,585,517 Securities

Total Granted Loans & 38,037,583 4,474,340 42,511,923 37,240,860 4,829,556 42,070,416 Investment

Parent Company

March 19, 2020 March 20, 2019

Joint Non-joint Total Joint Non-joint Total

Note Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR

Income from Loans 37.1 31,440,800 4,123,284 35,564,083 35,787,926 4,558,192 40,346,118 Granted

Income from Investment & Debt 37.2 6,049,177 76,175 6,125,352 1,450,873 70,697 1,521,571 Securities

Total Granted Loans & 37,489,977 4,199,459 41,689,435 37,238,799 4,628,890 41,867,689 Investment Annual Report 2019 113 114 429 Total 4,919 77,099 19,106 133,953 804,989 325,573 214,546 Million IRR 6,848,734 3,480,398 2,129,459 26,366,725 40,484,898 - - - - - 13,055 47,001 78,967 771,477 613,561 670,678 214,546 Non-joint Million IRR 1,940,529 4,270,848 Annual Report 2019 Foreign Currency - - 429 Total 4,919 77,099 19,106 133,953 134,311 278,572 188,930 Million IRR 6,835,680 2,708,921 25,753,164 36,214,051 Fiscal Year Ended March 20, 2019 ------24 IRR 78,967 19,106 66,125 134,311 203,357 501,891 Non-joint Million IRR - - - 429 Joint 4,919 75,214 77,099 78,967 133,953 122,804 Million IRR 6,835,655 2,708,921 25,753,164 35,712,160 Group - Total 49,060 58,111 969,458 672,444 218,020 162,395 130,252 Million IRR 1,781,245 1,640,296 1,989,577 14,422,657 14,002,938 36,243,222 ------252 31,809 23,960 146,768 218,020 Non-joint Million IRR 1,607,695 1,698,919 3,580,655 Foreign Currency - - Total 49,060 58,111 173,550 648,484 969,458 130,252 290,659 162,395 Million IRR 1,640,296 14,422,405 13,971,129 32,662,567 Fiscal Year Ended March 19, 2020 ------IRR 5,133 173,550 202,311 146,768 130,252 102,634 760,648 Non-joint Million IRR - - - Joint 49,060 58,111 446,173 969,458 146,768 188,025 162,395 Million IRR 1,640,296 14,417,271 13,971,129 31,901,918

37 . 1

Morabeheh Late Payment Penalty Late Payment Penalty of L/Cs Debtors Instalment Sales Salaf Commitment Purchase Civil Partnership Late Payment Penalty of Paid L/Gs Debtors Income from Loans Granted by Iraq Bank Total Income of Loans Granted Joaleh Mozarebeh Other Hire Purchase 37.1. Income of Loans Granted: 37.1. Income of Loans Granted: 429 Total 4,919 19,106 78,967 77,099 804,989 133,953 325,573 Million IRR 3,480,398 6,848,734 2,129,459 26,442,491 40,346,118 ------Foreign 13,055 47,001 670,678 771,477 613,561 Currency Non-joint Million IRR 1,940,529 4,056,301 429 Total 4,919 19,106 78,967 77,099 134,311 133,953 188,930 278,572 Million IRR 2,708,921 6,835,680 25,828,930 36,289,817 Fiscal Year Ended March 20, 2019 ------24 IRR 19,106 78,967 66,125 134,311 501,891 203,357 Non-joint Million IRR - - - 429 Joint 4,919 77,099 75,214 133,953 122,804 Million IRR 6,835,655 2,708,921 25,828,930 35,787,926 Parent Company Total 2,784 49,060 130,252 146,768 162,395 969,458 254,220 Million IRR 1,781,245 1,640,296 1,989,577 14,435,090 14,002,938 35,564,083 ------252 Foreign 31,809 23,960 Currency Non-joint Million IRR 1,607,695 1,698,919 3,362,635 Total 2,784 49,060 130,252 146,768 173,550 162,395 969,458 230,260 290,659 Million IRR 1,640,296 14,434,837 13,971,129 32,201,448 Fiscal Year Ended March 19, 2020 ------IRR 5,133 130,252 146,768 760,648 173,550 202,311 102,634 Non-joint Million IRR - - - Joint 2,784 49,060 27,949 162,395 969,458 188,025 Million IRR 1,640,296 14,429,704 13,971,129 31,440,800

37 . 1 Annual Report 2019 Total Income of Loans Granted Other Late Payment Penalty of Paid L/ Gs Debtors Morabeheh Late Payment Penalty of L/Cs Debtors Civil Partnership Mozarebeh Salaf Commitment Purchase Late Payment Penalty Instalment Sales Hire Purchase Joaleh

115 116 - - Total Total 650,392 355,784 515,394 355,784 579,341 650,392 Million IRR Million IRR 1,521,571 1,585,517 - - - 20,213 20,213 Non-joint Million IRR - - - Foreign Currency Annual Report 2019 34,093 34,093 Million IRR - Foreign Currency Non-joint Total 355,784 559,128 650,392 Million IRR 1,565,304 - Fiscal Year Ended March 20, 2019 - - - Total IRR 481,301 650,392 355,784 36,604 36,604 Million IRR 1,487,478 Non-joint Million IRR Fiscal Year Ended March 20, 2019 - - - IRR IRR - Million 36,604 36,604 Non-joint Joint 559,128 319,180 650,392 Million IRR 1,528,700 Group - Joint - 481,301 650,392 319,180 Million IRR 1,450,873 Total 432,786 Million IRR 3,059,283 2,776,633 6,268,702 Parent Company - Total 432,786 Million IRR - - - 2,915,934 2,776,633 6,125,352 78,063 78,063 Non-joint Million IRR Foreign Currency - - - 21,201 21,201 - Non-joint Million IRR Total 432,786 Foreign Currency Million IRR 2,981,220 2,776,633 6,190,639 Fiscal Year Ended March 19, 2020 - - - - IRR Total 54,974 54,974 Non-joint 432,786 Million IRR Million IRR 2,894,732 2,776,633 6,104,151 - - - - Fiscal Year Ended March 19, 2020 IRR Joint Million 54,974 54,974 IRR 377,812 Non-joint Million IRR 2,981,220 2,776,633 6,135,665 - Joint 377,812 Million IRR 2,894,732 2,776,633 6,049,177

Income of deposits and debt securities

Bonus on Statutory Deposit (Bank & Depositors’ Share) Term Deposit Interest Held with Banks Dividend of Participating Bonds & Certificate Deposit

Income of Joint Funds with Fixed Income of Joint Funds with Fixed Term Deposit Interest Held with Banks Dividend of Participating Bonds & Certificate Deposit Income of deposits and debt securities Bonus on Statutory Deposit (Bank & Depositors’ Share)

37.2. Income of Deposits and Debt Securities: 38. Investments Net Profit (Loss): Group

March 19, 2020 March 20, 2019 Foreign Foreign IRR (Joint) Currency Total IRR (Joint) Currency Total (Non-joint) (Non-joint) Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Realized Profit (Loss) of

Investments Companies’ Dividend & 38.1 559,166 - 559,166 410,270 - 410,270 Investment Holdings Profit (Loss) of Selling Companies 38.2 4,256,947 - 4,256,947 2,366,823 - 2,366,823 & Investment Holdings' Shares Total Realized Profit (Loss) of 4,816,113 - 4,816,113 2,777,093 - 2,777,093 Investments

Investments Value Increase

(Decrease) Profit (Loss) Investments Value Increase 38.3 - - - 610,272 - 610,272 (Decrease) Net Profit (Loss) Investments Net Profit (Loss) 4,816,113 - 4,816,113 3,387,365 - 3,387,365

Parent Company

March 19, 2020 March 20, 2019

Foreign Foreign IRR (Joint) Currency Total IRR (Joint) Currency Total (Non-joint) (Non-joint)

Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR

Realized Profit (Loss) of

Investments

Companies’ Dividend & 38.1 3,101,244 280,948 3,382,191 1,789,724 - 1,789,724 Investment Holdings

Profit (Loss) of Selling Companies 38.2 3,789,436 - 3,789,436 2,134,501 - 2,134,501 & Investment Holdings' Shares

Total Realized Profit (Loss) of 6,890,680 280,948 7,171,627 3,924,226 - 3,924,226 Investments

Investments Value Increase

(Decrease) Profit (Loss)

Investments Value Increase 38.3 - - - 610,272 - 610,272 (Decrease) Net Profit (Loss)

Investments Net Profit (Loss) 6,890,680 280,948 7,171,627 4,534,498 - 4,534,498 Annual Report 2019 117 118 38.1. Dividends for Companies & Investment Fund:

Group March 19, 2020 March 20, 2019 Foreign Foreign IRR (Joint) Currency Total IRR (Joint) Currency (Non- Total

Annual Report 2019 (Non-joint) joint) IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million Moshtarek Miad Iranian 4,626 - 4,626 922 - 922 Mutual Fund Atiyeh Novin Fund 6,166 - 6,166 5,936 - 5,936 Yekom Moshtarek Iranian 2,576 - 2,576 2,466 - 2,466 Mutual Fund Iran Credit Scoring Co. 4,304 - 4,304 6,456 - 6,456 Shaparak Electronic - - - 20,060 - 20,060 Payment Card Co. Other Companies 411,960 - 411,960 122,129 - 122,129 Long-term Investments 429,632 - 429,632 157,969 - 157,969 Dividend ran National Copper - - - 12,863 - 12,863 Industry Co. Omid Investment - - - 4,155 - 4,155 Management Group Co. Iran Transfo Co. 5,119 - 5,119 6,943 - 6,943 Iranol Co. - - - 3,100 - 3,100 ourse Kalaye Iran 648 - 648 2,860 - 2,860 Financial Institutes Kharazmi Investment Co. - - - 5,234 - 5,234 Retirement Fund - - - 16,602 - 16,602 Investment Co. Khouzestan Steel Co. 21,718 - 21,718 - - - Armaghan Iranian 22,258 - 22,258 - - - Investment Fund Khouzestan Steel Co. 24,218 - 24,218 - - - Other Companies 55,573 - 55,573 200,545 - 200,545 Short-term Investments 129,534 - 129,534 252,301 - 252,301 Dividend Companies and Investment Funds 559,166 - 559,166 410,270 - 410,270 Dividend Parent Company March 19, 2020 March 20, 2019 Foreign Foreign IRR (Joint) Currency Total IRR (Joint) Currency Total (Non-joint) (Non-joint) IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million EN Bank Leasing Co. 712,500 - 712,500 712,500 - 712,500 Novin Investment Bank 1,464,228 - 1,464,228 379,615 - 379,615 Novin Capital Management Co. 384,990 - 384,990 149,996 - 149,996 Pardakht Novin Arian Co 248,841 - 248,841 140,001 - 140,001 Shaparak Electronic Payment Card Co. - - - 20,060 - 20,060 Outstanding Debts Settlement 36 - 36 46 - 46 Iran Credit Scoring Co. 4,304 - 4,304 6,456 - 6,456 Chemibaft Co. - - - 245,010 - 245,010 Eghtesad Novin Foreign Currency & 5,144 - 5,144 - - - Exchange Services Company Rah-e Eghtesad Novin Financial & Credit 16,492 - 16,492 - - - Services EN Investment Company 168,065 - 168,065 - - - Paydar Iranian Investment Co. 1,483 - 1,483 - - - Islamic Cooperation Bank for Investment - 280,948 280,948 - - - (Iraq) Long-term Investments Dividend 3,006,084 280,948 3,287,031 1,653,684 - 1,653,684 Iran National Copper Industry Co. - - - 12,863 - 12,863 Omid Investment Management Group Co. - - - 4,155 - 4,155 Iran Transfo Co. 5,119 - 5,119 6,943 - 6,943 Tehran Oil Refining Co. ------Iranol Co. - - - 3,100 - 3,100 Bourse Kalaye Iran Financial Institutes 648 - 648 2,860 - 2,860 Kharazmi Investment Co. - - - 5,234 - 5,234 Retirement Fund Investment Co. - - - 16,602 - 16,602 Khouzestan Steel Co. 21,718 - 21,718 - - - Other Companies 32,061 32,061 53,326 53,326 Short-term Investments Dividend 59,547 - 59,547 105,082 - 105,082 Atiyeh Novin Fund 6,154 - 6,154 5,936 - 5,936 Armaghan Iranian Investment Fund 22,258 - 22,258 21,635 - 21,635 Moshtarek Miad Iranian Mutual Fund 4,626 - 4,626 922 - 922 Yekom Moshtarek Iranian Mutual Fund 2,576 - 2,576 2,466 - 2,466 Dividend of Investment Funds Units 35,614 - 35,614 30,959 - 30,959 Companies and Investment Funds 3,101,244 280,948 3,382,192 1,789,724 - 1,789,724 Dividend Annual Report 2019 119 120

38.2. Profit (Loss) of Selling Companies and Investment Funds’ Shares is as follows:

Group March 19, 2020 March 20, 2019 No. of Shares Book Value Sales Net Value Profit (Loss) Profit (Loss) Annual Report 2019 Shares Million IRR Million IRR Million IRR Million IRR Profit (Loss) of Selling Companies - IRR (Joint)

Novin Investment Bank 166,268,229 170,284 436,375 266,090 2,338,491 MAPNA Group Co. 5,700,000 12,302 29,754 17,452 - Iran Transfo Co. 15,125,670 96,662 233,713 137,051 9,209 Sepah Investment Co. 22,784,040 50,847 118,264 67,417 (5,382) Machine Sazi Arak Co. 23,500,000 61,309 116,762 55,453 (8,309) Khouzestan Steel Co. 21,718,040 141,980 156,506 14,525 - Tehran Housing Investment 14,507,113 25,817 49,006 23,189 - Co. Alborz Ivestment Co. 16,340,943 46,047 111,389 65,342 (621) Alborz Ivestment Co. Stock 2,431,500 4,420 3,941 (479) - Rights Tamin Petroleum & 11,340,586 21,127 26,771 5,644 (30,313) Petrochemical Investment Co Rail Pardaz Seir Co. 13,662,059 23,860 26,802 2,942 (1,566) Darou Pakhsh Pharmaceutical 2,240,000 30,138 40,504 10,366 - Co. Bank Sarmayeh 131,541 132 143 11 - Chemibaft Company 63,007,206 141,252 3,305,130 3,090,218 - Novin Pishro Market Making 18,255 24,699 86,077 61,379 - Investment Fund Ardakan Industrial Ceramics 10,221,077 2,312 37,993 35,681 - Co. Esfahan Mobarakeh Steel - - - - 118,706 Novin Building Investment Co. - - - - 16,924 Esfahan Steel Co. - - - - 231 Paxan Co. - - - - 7,175 Tehran Oil Refining Co. - - - - 53,847 Others - 554,599 959,265 404,666 (131,570) Total 1,407,788 5,738,395 4,256,947 2,366,823 Parent Company March 19, 2020 March 20, 2019 No. of Shares Book Value Sales Net Value Profit (Loss) Profit (Loss) Shares Million IRR Million IRR Million IRR Million IRR Profit (Loss) of Selling Companies - IRR (Joint) Novin Investment Bank 160,300,000 170,141 427,265 257,124 2,338,491 Iran Transfo Co. 15,125,670 96,662 233,713 137,051 9,209 Sepah Investment Co. 22,345,514 49,949 117,102 67,153 (5,382) Machine Sazi Arak Co. 23,500,000 61,309 116,762 55,453 (8,309) Khouzestan Steel Co. 21,718,040 141,980 156,506 14,525 - Tehran Housing Investment Co. 14,507,113 25,817 49,006 23,189 - Alborz Ivestment Co. 16,340,943 46,047 111,389 65,342 (621) Alborz Ivestment Co. Stock Rights 2,431,500 4,420 3,941 (479) - Tamin Petroleum & Petrochemical 8,340,586 15,934 21,096 5,162 (30,313) Investment Co Rail Pardaz Seir Co. 13,662,059 23,860 26,802 2,942 (1,566) Darou Pakhsh Pharmaceutical Co. 2,240,000 30,138 40,504 10,366 - Bank Sarmayeh 131,541 132 143 11 - Chemibaft Company 63,007,206 141,252 3,305,130 3,090,218 - Esfahan Mobarakeh Steel - - - - 118,706 Novin Building Investment Co. - - - - 16,924 Esfahan Steel Co. - - - - 231 Paxan Co. - - - - 7,175 Tehran Oil Refining Co. - - - - 53,847 Tehhran Stock Exchange Financial - - - - 60,504 Institutes Bourse Kalaye Iran Financial - - - - 22,475 Institutes Mines & Metals Development - - - - 19,092 Investment Co. OTC - - - - 8,104 Iran National Copper Industry Co. - - - - 7,877 Pars Khazar Co. - - - - 3,257 Parsian Oil & Gas Development Co. - - - - (143) Maskan Shomalgharb Investment Co. - - - - (258) Rayan Saipa Leasing - - - - (783) Behshahr Industries Development - - - - (2,446) Co. National Investment Co. - - - - (3,358) SAIPA Investment Group Co. - - - - (4,609) Ardakan Industrial Ceramics Co. - - - - (5,582) Iran Building Investment Co. - - - - (9,865)

Sepahan Oil Co. - - - - (10,849) Annual Report 2019 Tejarat Bank - - - - (11,708) 121 122 Shiraz Petrochemical Co. - - - - (12,334) Iranian Petrochemical Investment Co. - - - - (13,029) Fars and Khouzestan Cement Co. - - - - (13,177) Iranol Co. - - - - (13,547) Omid Investment Co. - - - - (22,985) Persian Gulf Petrochemical Industries - - - - (27,259) Annual Report 2019 Tabriz Oil Refining Co. - - - - (29,742) Tuka Foolad Investment Co. - - - - (35,398) Kharazmi Investment Co. - - - - (65,350) Retirement Fund Investment Co. - - - - (70,571) Ghadir Investment Co. - - - - (132,610) Total 363,650,172 807,641 4,609,358 3,728,057 2,134,100 Profit (Loss) of Selling Investment Funds - IRR (Joint) Novin Pishro Market Making 18,255 86,077 24,699 61,379 Investment Fund Mutual Funds - Asas - 401 Total 18,255 86,077 24,699 61,379 401 Overall Total 363,668,427 893,719 4,634,057 3,789,436 2,134,501 38.3. Net Profit (loss) from Increase (decrease) of Investment Value is Stated Below:

Group March 19, 2020 March 20, 2019 Investments Value Increase (Decrease) Profit (Loss) - IRR No. of Sales Net Profit Book Value Profit (Loss) (Joint) Shares Value (Loss) Shares Million IRR Million IRR Million IRR Million IRR Novin Investment Bank - - - - 610,272 Total - - - - 610,272

Parent Company Investments Value Increase (Decrease) Profit (Loss) - IRR (Joint) March 19, 2020 March 20, 2019 No. of Book Sales Net Profit (Loss) Profit (Loss) Shares Value Value Shares Million IRR Million IRR Million IRR Million IRR Novin Investment Bank - - - - 610,272 Total - - - - 610,272 39. Deposit Interest Expenses: Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Investment Deposits Interest - IRR 39.5 50,168,380 45,203,530 50,265,008 45,280,699 Deposits Interest - Foreign Currency 1,564,430 1,949,984 1,564,430 1,949,984 Total 51,732,810 47,153,514 51,829,438 47,230,683 Fiscal Year Ended Fiscal Year Ended Item March 19, 2020 March 20, 2019 Note Million IRR Million IRR Joint Incomes Income of Granted Loans 37 31,440,800 35,787,926 Income of Depositing & Debt Securities 37 5,671,365 1,131,693 Net Profit (Loss) of Investments 38 6,890,680 4,534,498 Total of Joint Incomes 44,002,844 41,454,117 Bank's Share from Joint Incomes 39.1 - 229,897 Despositors' Share from Joint Incomes befor Honorarium 44,002,844 41,684,014 Honorarium 39.2 (5,863,609) (5,220,075) Despositors' Share from Joint Incomes 38,139,236 36,463,939 Bonus on Statutory Deposits of Investment Deposits 39.3 377,812 319,180 Compensation of Surplus of Free Resources of Investment 39.4 1,273,791 Depositors to Joint Facilities Final Interest for Investment Deposits 39,790,839 36,783,120 Certificate of Special Deposits Final Interest (2,166,499) (11,905,048) Deposits Interest - IRR (48,098,509) (33,375,651) Total Cost of Payed Interests to Deposits (50,265,008) (45,280,699) Difference of Payable Interest ( Surplus of Payed Interest) to (10,474,170) (8,497,579) Depositors 39.1. The Bank Share of Joint Income: 39.1.1. The Bank Share of Joint Income is Stated Below: Resources of the Bank to Total Fiscal Year Joint Incomes Bank’s Share of Joint Income Consumptions Ratio (39.2) Percentage Million IRR Million IRR Ended March 19, 2020 0% 44,002,844 - Ended March 20, 2019 1% 41,454,117 229,897 * In Case the joint facilities are less than total free resources of investment deposits, the Bank’s resources and hence the Bank’s share from joint incomes will be zero. 39.1.2. Average of Joint Facilities: Item Fiscal Year Ended March 19, 2020 Fiscal Year Ended March 20, 2019 Description Note Million IRR Million IRR 52 Week Average of Joint Facilities 39.1.2.1 293,180,430 262,459,284 Average Average of Investment 52 Week 39.1.2.2 339,938,207 292,993,518 Deposits Balances Average Less: Average of Statutory 52 Week Deposit for Investment (38,270,812) (31,989,785) Average Deposits Free Resources of Investment (301,667,395) (261,003,733) Deposits Bank’s Resources Quota from Joint Facilities (Free (8,486,965) 1,455,550 Resources Surplus of Investment Deposits

* The Bank’s share in joint facilities includes: joint facilities less free resources (investment deposits net Annual Report 2019 of statutory deposit). In case the free resources of investment deposits exceed joint facilities, the excess 123 amount is considered as surplus of free resources of investment deposits. 124 39.1.2.1. Average of Joint Facilities:

Fiscal Year Ended March 19, 2020 Fiscal Year Ended March 20, 2019 Joint Facilities Items Amount (Average) Amount (Average) Million IRR Million IRR Net Facilities Related to Loans 258,406,007 244,417,701 Annual Report 2019 Net Facilities Related to Deposits Held with Other Banks 14,512,065 2,516,947 Net Facilities Related to Investments & Participating Bonds 20,262,359 15,524,636 Total Facilities Related to Joint Operations 293,180,430 262,459,284

39.1.2.2. Average of Joint Facilities Balances:

Fiscal Year Ended March 19, 2020 Fascial Year Ended March 20, 2019 Investment Deposits Amount (Average) Amount (Average) Million IRR Million IRR 1-Year 248,405,531 206,010,515 2-Year - - 3-Year - - 4-Year - 47,577 5-Year 107,925 1,124,504 Short-term Deposits 88,456,857 85,809,752 Investment Deposits Received from Banks & Credit Institutes 2,967,788 - Special Short-term Deposits 105 1,170 Average of Investment Deposits 339,938,206 292,993,518 39.2. Attorney Fee: Attorney Fee, 2%, has been calculated for the fiscal year of 2019-20. Attorney Fee= Attorney Rate × Depositors Free Resources Average 39.2.1. Attorney’s Fee announced and in Effect:

March 19, 2020 March 20, 2019 Attorney’s Fee Announced Attorney’s Fee in Effect Attorney’s Fee in Effect Fee - Million Fee - Million Rate - % Rate - % Fee - Million IRR IRR IRR Short-term Investment 2% 1,568,345 1.94% 1,524,221 1,541,271 Special Short-term Investment 2% 2 1.94% 2 20 General Certificate of Deposit 2% - 1.94% - - 1-Year 2% 4,403,730 1.94% 4,279,832 3,658,065 2-Year 2% - 1.94% - - 3-Year 2% - 1.94% - - 4-Year 2% - 1.94% - - 5-Year 2% 2,159 1.94% 2,105 810 Investment Deposits Received from Banks 2% 59,113 1.94% 57,449 19,910 & Credit Total of Attorney's Fee 6,033,348 5,863,609 5,220,075 39.3 Bonus on Statutory Deposits of Investment Deposits is as follows:

Description March 19, 2020 March 20, 2019 Million IRR Million IRR Statutory Deposits Average of Investment Deposits 38,270,812 31,989,785 Bonus on Statutory Deposits 377,812 319,180

39.4. Compensation of Surplus of Free Resources of Investment Depositors to Joint Facilities:

According to circular numbered 94/69383 dated 10.06.2015 is calculated as below.

Surplus of Free Resources of Investment Depositors to Joint Facilities (Joint Income) * (Average of Joint Facilities)

8, 486, 965 44,002,844 =1,273,791 *293,180,430

39.4.1 In the fiscal year ended March 20, 2019, due to lack of increase in the free resources of investment depositors, according to above circular, compensation is not relevant to the reporting fiscal period. 39.5. On-account Interest Paid to Investment Deposits:

Parent Company March 19, 2020 March 20, 2019 Million IRR Million IRR Short-term 5,857,690 7,436,833 Special Short-term Investment 139 173 Long-Term Deposits 1-Year 41,700,267 24,296,043 4-Year - 10,648 5-Year 29,047 289,135 Certificate of Deposit 2,166,499 11,905,048 Investment Deposits Received from Banks & Credit 511,367 1,342,820 Total of On-account Interest Paid to Investment Deposits 50,265,008 45,280,699

40. Reconciliation Statement of On-Account Interest Paid to Investment Deposits (IRR) with Expenses of Investment Deposit Interest in the Parent Company is as follows:

Parent Company March 19, 2020 March 20, 2019 Note Million IRR Million IRR Actual Interest Payable to Investment Deposits 39,790,839 36,783,120 On-account Interest Paid to Investment Deposits 39.5 (50,265,008) (45,280,699) Difference of Interest Payable to Depositors (Surplus of Interest (10,474,170) (8,497,579) Paid to Depositors) Annual Report 2019 125 126 41. Commission Income: Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Net Commission of Gharz-al Hassaneh Operations 214,960 110,729 214,960 110,729

Annual Report 2019 Opened L/Cs 167,455 138,583 167,455 138,583 Issued L/Gs 2,397,745 1,687,970 2,271,134 1,687,970 Foreign Currency Operations 474,404 344,798 451,614 344,798 Private Banking Commission 235,129 527,625 235,129 527,625 Collateral Assessment 309,371 162,257 309,371 162,257 Customers’ Credit Records Check 24,854 16,359 24,854 16,359 Commission Received for E-Banking Services 449,847 448,638 449,847 448,638 SHETAB Plan 354,852 273,699 354,852 273,699 Commission of Securities and Bonds Guarantee 30,000 - 30,000 - Other 247,861 265,652 247,861 265,652 Total Commission Income 4,906,478 3,976,309 4,757,076 3,976,309

42. Commission Expenses:

Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Commission Paid to SHETAB 800,746 795,243 800,746 795,243 Paid Commission- Others 204,629 121,839 207,245 124,239 Total of Commission Expenses 1,005,375 917,081 1,007,991 919,481 43. Net Profit (loss) of Foreign Currency Transactions: Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Cash Foreign Currency Exchange Profit (Loss) 8,048,873 5,665,419 8,251,084 5,650,835 Net Profit (loss) of Foreign Currency Transactions 8,048,873 5,665,419 8,251,084 5,650,835

43.1. According to circular numbered 450580 dated 2020/03/18, the basis of currency exchange of foreign currency assets and liabilities for the end of the fiscal year ended at March 19, 2020 is 102,000 IRR for 1.00 EUR (90,000 IRR for 1.00 USD), (the exchange for previous year was 85,000 IRR for 1 EUR and 75,000 for 1 USD); other currencies are to be calculated based on their exchange rate to Euro at the end of fiscal year. 43.1.1. Those monetary items of assets and liabilities that are identified, created, and recorded based on Nima system and Electronic Trade System (ETS) rates in the Banks’ and non-bank credit institutes’ books, while the said rate is higher than the announced rate in note 43.1, will be exchanged based on the rates at the time of primary creation and identification (final cost). 43.1.2. Those monetary items of assets and liabilities that are identified, created, and recorded based on Nima system and Electronic Trade System (ETS) rates in the Banks’ and non-bank credit institutes’ books, while the said rate is lower than the announced rate in note 43.1, will be exchanged based on rates announced in note 43.1. 44. Other Operating Income: In spite of its irrelevance, the heading has been disclosed in compliance with the sample financial statements of CBI. 45. Other Net Incomes and Expenses:

Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Profit of Selling Tangible & Infixed tangible assets 357,088 228,943 213,631 228,657 Profit of Selling Repossessed Collateral 2,123,525 454,106 2,123,525 454,106 Income from Services 666,578 889,304 - - Income from Leasing Shares of Novin Investment Bank to Atiyeh Derakhshan Co. 395,306 - 395,306 - Income from Insurance, Registration & Collateral 6,981 1,178 6,981 1,178 Assets Rent 17,686 17,558 38,206 45,309 Income from Leasing Shares of Chemibaft Co. to National 73,660 73,660 Investment Co. Other Items 427,979 46,089 207,213 43,057 Total of Other Net Incomes and Expenses 4,068,803 1,637,177 3,058,522 772,307

46. General and Administrative Expenses: Group Parent Company March 19, March 20, March 19, March 20,

2020 2019 2020 2019 Note Million IRR Million IRR Million IRR Million IRR Personnel’s Expenses 46.1 5,261,219 3,868,197 4,604,614 3,539,576 Administrative Expenses 46.2 3,565,583 2,626,773 3,760,190 3,328,886 Total of General and Administrative Expenses 8,826,802 6,494,969 8,364,804 6,868,461

46.1. Personnel’s Expenses are as Follow: Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Wage, Salary & Allowances 4,008,067 2,990,406 3,487,211 2,721,988 Employer’s Premium 463,741 351,673 429,717 335,204 Retirement & Work Termination 593,529 344,071 575,991 319,002 Allowances Travel & Mission Allowance 65,219 37,921 48,695 36,215 Other 130,664 144,126 63,000 127,166 Total of Personnel’s Expenses 5,261,219 3,868,197 4,604,614 3,539,576 Annual Report 2019 127 128 46.2. Administrative Expenses are as follows: Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Rent 553,549 500,949 513,908 481,247 Annual Report 2019 Purchasing Technical Devices to Provide E-banking 212,558 360,016 1,027,137 1,047,159 Accessories Contracting Services Fees 730,116 386,250 471,105 375,557 Advertisement 20,358 56,685 15,605 55,208 Water, Gas & Electricity 253,730 148,323 142,459 113,889 Pantry, Formalities & Reception 62,937 51,372 55,753 36,280 Consumable Materials 178,317 97,929 118,403 88,543 Repair & Maintenance of Fixed Assets 248,230 70,168 180,394 186,847 Food Expenses 89,941 85,603 89,860 84,509 Marketing 58,202 52,433 54,833 52,169 Service & Support 208,418 96,420 208,418 94,535 Insurance of Assets & Funds 91,632 75,213 91,320 74,867 Transportation 24,876 35,212 26,286 19,037 Auditing Fee (Independent & Internal) 14,566 7,341 8,267 3,263 Training and Research 17,965 16,761 16,624 14,742 Print & Copy 6,345 5,842 6,255 5,095 Expert Services - 30 107,313 102,674 Attendance Fee at Board of Directors Meetings 3,421 4,057 250 540 Deposits Guarantee Fund Membership Fee 436,000 360,000 436,000 360,000 Other 354,422 216,169 190,002 132,725 Total of Administrative Expenses 3,565,583 2,626,773 3,760,190 3,328,886 47. Expenses of Doubtful Debts: Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Specific Doubtful Debts Expenses 47.1 341,423 2,609,260 341,423 2,609,260 General Doubtful Debts Expenses 47.2 2,410,689 (10,711) 2,418,387 (10,711) Total Expenses of Doubtful Debts 2,752,112 2,598,549 2,759,810 2,598,549 47.1. Specific Doubtful Debts Expenses: Parent Company March 19, 2020 March 20, 2019 Doubtful for Doubtful for up to Overdue Deferred more than 5 Total Total 5 Years Years Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Net Total of Non-current Loans and Dues before Provision for doubtful debts Other Banks & Credit Institutes ------Governmental Parties ------Non-governmental Parties 2,307,626 3,092,895 62,358,207 - 67,758,729 83,106,791 Balance of Other Accounts Receivable at the end of Year Claims from Subsidiary and Affiliated ------Companies Other Accounts Receivable ------Total of Non-current Loans and Dues 2,307,626 3,092,895 62,358,207 - 67,758,729 83,106,791 before Deduction of Collaterals Values Less: Collaterals Values with Coefficient in Effect Saving and Investment Deposits (725,469) (1,093,159) (9,667,849) - (11,486,476) (21,774,871) Bonds & Securities Guaranteed by CBI (483) (727) (6,434) - (7,644) (29,262) & Government Bonds & Securities Guaranteed by ------Other Banks Bank L/Gs (15,256) (22,988) (203,307) - (241,551) (160,230) Transferred L/Cs ------Approved Shares in Stock Market (524,061) (789,672) (6,983,824) - (8,297,557) (5,551,376) Estates & Properties (266,460) (401,511) (3,550,944) - (4,218,915) (4,475,391) Machinery ------Other (40,960) (61,720) (545,845) - (648,525) (1,564,800) Total of Collaterals Values with (1,572,689) (2,369,778) (20,958,202) - (24,900,669) (33,555,930) Coefficient in Effect Balance of Special Provision Basis of 734,938 723,117 41,400,005 - 42,858,060 49,550,862 Calculation Coefficient of Special Provision Basis of 10% 20% 50% 50 to 100% Calculation - % Provision for Specific Doubtful Debts 73,494 144,623 20,700,002 - 20,918,120 49,550,862 Added: Specific Provision for Non- Current and Renewal Debts Less: Balance of Specific Provision of (356,453) (1,848,615) (18,371,629) - (20,576,697) (17,967,437) Doubtful Debt at the End of Year Added: Bad Debts Specific doubtful debts expenses (282,959) (1,703,992) 2,328,373 - 341,423 2,609,260 Annual Report 2019 129 130 47.2. General Doubtful Debts Expenses: Parent Company March 19, 2020 March 20, 2019 Million IRR Million IRR Loans Granted to Other Banks & Credit Institutes - - Annual Report 2019 Dues from Government - - Loans Granted to Governmental Parties - - Loans Granted to Non-governmental Parties (Note 13.1) 459,410,796 313,533,079 Net Customer Dues for Term L/Cs After Deducting Advance Payments - - (Note 20.1) Claims from Subsidiary and Affiliated Companies - - Other Accounts Receivable - - Less: Balance of Granted Loans & Dues with Specific Provisions (67,758,729) (83,106,791) Balance of General Provision Basis of Calculation 391,652,068 230,426,288 Coefficient of General Provision Basis of Calculation - % 1.5% 1.5% General Provision for Granted Loans & Dues 5,874,781 3,456,394 Less: General Provision for Loans at the End of Last Year (3,456,394) (3,467,106) Added: Bad Debts during the Period - - General Doubtful Debts & Granted Loans Expenses 2,418,387 (10,711)

48. Financial Expenses:

Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Interest of Loans Received from Other Banks & 141,747 922,863 136,110 920,682 Credit Institutes Total of Financial Expenses 141,747 922,863 136,110 920,682

49. Depreciation Expenses: Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Fixed Tangible Assets Depreciation 360,815 408,441 187,450 193,819 Intangible Assets Depreciation 40,113 34,803 36,943 29,873 Goodwill Depreciation 43,556 43,556 - - Total of Depreciation Expenses 444,484 486,801 224,393 223,691 50. Prior Years’ Adjustments: Prior years’ adjustments include the following items:

Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Accumulated Effect of Changes in 50.1 - - - - Accounting Procedure Amending Errors (1,445,389) (4,182,353) (965,348) (4,193,718) Total (1,445,389) (4,182,353) (965,348) (4,193,718)

50.1. Compared to previous year, no accounting procedure change has been taken in the fiscal year ended March 19, 2020. 51. Reconciliation Statement of Net Profit: Reconciliation statement of net profit with net cash inflow from operating activities stipulated in cash flow statement is as follows: Group Parent Company Revised Revised March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Net Profit (Loss) 1,049,123 (1,155,726) 605,200 (1,959,909) Depreciation Expense 400,928 443,245 224,393 223,691 Goodwill Depreciation Expense 43,556 43,556 - - Doubtful Debts Expense 2,752,112 2,598,549 2,759,809 2,598,549 Profit & Loss of Applying Equity Method (1,915,458) (934,692) - - Net Increase (Decrease) of Provision for Employees’ 484,359 287,440 454,388 279,231 Work Termination Benefits & Pension Commitments Net Increase (Decrease) of Payable Financial Expense - - - - Net Increase (Decrease) of Payable Income Tax (891,857) 271,803 (965,348) (674,790) Profit (Loss) of Selling Tangible & Intangible Fixed (357,088) (228,943) (213,631) (228,657) Assets Profit (Loss) of Selling Non-operating Properties - - - - Cash Foreign Currency Exchange Net Profit (Loss) (4,563,919) (583,965) (4,401,847) (583,965) Total (2,998,244) 741,266 (1,537,037) (345,850) Net Increase (Decrease) of Operating Liabilities Dues to Banks & Other Credit Institutes (15,997,359) 16,075,952 (16,799,201) 17,817,016 Customers’ Deposits 50,327,268 10,306,017 50,290,314 10,953,697 Debt Securities - - - Operating Portion of Reserves & Other Dues 4,608,791 16,750,076 4,192,628 16,407,550 Investment Depositors Rights 114,051,022 1,684,338 114,403,917 1,962,727 Total 152,989,722 44,816,384 152,087,657 47,140,989 Net Decrease (Increase) of Operating Assets Dues from Banks & Other Credit Institutes 4,434,033 (1,844,570) 4,327,621 (5,224,103) Dues from Government (21,297) - (21,297) - Granted Loans & Dues from Governmental Authorities - - - - Granted Loans & Dues from Non-governmental Parties (140,220,873) (9,620,840) (149,010,518) (9,004,542) Investment in Shares & Other Securities (12,899,160) 223,516 (12,277,263) (2,745,464) Dues from Subsidiary & Affiliated Companies (661,882) 1,184,802 (779,018) 1,070,294 Other Accounts Receivable (2,417,764) (4,061,020) (3,812,921) (3,999,724) Statutory Deposit (20,275,201) (1,539,078) (20,157,038) (1,425,150) Operating Portion of Other Assets (400,987) 13,725,254 3,234,631 13,447,130 Total (172,463,132) (1,931,938) (178,495,803) (7,881,559) Annual Report 2019 Net Cash Inflow (Outflow) from Operating (22,471,654) 43,625,712 (27,945,183) 38,913,580 Activities 131 132 52. Non-cash Transactions: The comparative amount of non-cash transactions of Group and parent company during the year is as follows:

Group Note March 19, 2020 March 20, 2019

Annual Report 2019 Million IRR Million IRR Asset Repossession in Turn of Loans Granted 52.1 3,132,801 1,818,165 Clearance of Asset with Loans Granted 52.2 - - Loans Granted to Collect Prior Ones (Facilities Resumption) - - Asset Exchange 52.3 - - Capital Increase from Shareholders’ Matured Claims - 48,841 Capital Increase from Assets Revaluation Surplus - - Total of Non-cash Transactions 3,132,801 1,867,006

Parent Company Note March 19, 2020 March 20, 2019 Million IRR Million IRR Asset Repossession in Turn of Loans Granted 52.1 3,132,801 1,818,165 Clearance of Asset with Loans Granted 52.2 - Loans Granted to Collect Prior Ones (Facilities Resumption) - Asset Exchange 52.3 - - Capital Increase from Shareholders’ Matured Claims - Clearance of Due from Tax Affairs Office with Other Identified Incomes - Capital Increase from Assets Revaluation Surplus - Total of Non-cash Transactions 3,132,801 1,818,165

52.1. The Repossessed Properties during this Fiscal Year is as follows: Repossessed Payed by Amount Payed for Amount of Due Balance of Type of Repossessed Customer's Property Value Customer Surplus of Expert at the Time of Debt After Property Relation Type Estimated by / Relief by Estimated Value of Repossession Repossession Experts the Bank Repossessed Property Million IRR Million IRR Million IRR Million IRR Million IRR Unrelated Residential Property 1,745,662 1,607,186 - - 138,476 Customer Commercial / Unrelated 1,627,505 1,525,615 - - 101,889 Administrative Property Customer Total 3,373,166 3,132,801 - - 240,365

52.2. In the fiscal year ended 20.03.2017, the bank has no clearance of asset with loans granted. 52.3. In the fiscal year ended 20.03.2017, the bank has no asset exchange. ------159,354 1,421,438 1,580,792 1,580,792 IRR Equivalent ------Foreign Amount Currency 13,935,664 127,417,675 Balance at the End of Period ------5 11 - - Number 807 (29) (405) (1,512) (3,208) (82,285) (74,067) (32,826) (41,873) (869195) (517,635) (152,278) (158,521) (237,162) (1,623,141) (2,988,939) (4,129,257) (10,437,202) (10,674,364) IRR Equivalent IRR (36) (970) (1,925) (4,085) (86,407) (34,433) (41,725) (53,584) (800095) (829,077) (104,247) (193,854) (202,313) (338,101) Equivalent (4,224,050) (4,818,376) (5,404,278) (16,461,354) (16,799,455) (4,734) Currency (168,352) 46,325 (2,476,400) (2,378,758) (4,245,109) (3,010,684) Settled (Cancelled) during the Year (16,949,754) (10,821,608) (87,128,035) (734,732,580) (116,660,075) (138,364,010) Amount Foreign (7,436,707,479) (1,431,297,000) (2,540,995,771) (1,122,964,580) 5 3 9 3 8 2 6 1 1 6 16 87 52 27 11 104 Number ------IRR 408 174,478 229,929 2,455,331 2,083,280 4,943,426 Equivalent 4,943,426 ------

- - - Currency 46,325 1,042,337 3,766,389 38,372,660 317,670,000 4,322,765,442 Amount Foreign Opened during the Year ------9 2 8 2 42 - - - Number - 65 966 3,438 7,293 74,551 33,626 95,457 178,313 346,133 168,691 360,834 3,551,214 5,724,036 1,669,290 1,116,783 575,264 10,780,495 24,111,185 23,535,921 IRR Equivalent - 4,734 168,352 Currency 1,434,063 2,378,758 4,245,109 3,010,684 16,949,754 99,991,350 417,062,580 126,829,350 10,821,608 87,128,035 3,241,359,712 1,431,297,000 2,540,995,771 1,122,964,580 Amount Foreign Balance at the Beginning of 7 3 9 8 2 6 1 6 - 73 27 50 84 11 3 3 1 Number Bank Commitments for L/C (foreign currency) are as Follow: Bank Commitments For L/C (foreign Currency) and IRR Equivalent Annual Report 2019 TRY JPY INR RUB CHF Type of Currency KRW AED Sight CNY Term EUR EUR AED KRW JPY CNY TRY INR OMR 53. Off-Balance Sheet Items: 53.1. 53.1.1. 133 134 53.1.2. Bank Commitments for L/C (IRR) are as Follow:

Balance at the Start of Settled (Cancelled) During Balance at the End of the Opened During the Year the Year the Year Year Credit Type Number Million iRR Number Million IRR Number Million IRR Number Million IRR Sight ------Total 1,346,384 9,820,333 (4,196,159) 6,970,558 Annual Report 2019

53.2. Commitments for issued IRR and Foreign Currency L/Gs 53.2.1. The Report for the Bank’s Commitments for Foreign Currency L/Gs is as follows: March 19, 2020 March 20, 2019 Amount Foreign Currency IRR Equivalent Amount Foreign Currency IRR Equivalent Million IRR Million IRR EUR 112,277,284.51 11,452,283 128,241,843.10 10,900,557 GBP 101,354 11,357 101,354 10,093 USD 181,989,848 16,379,086 184,810,892.00 13,860,817 OMR - AED 5,229,108 131,681 5,229,108 106,784 JPY - INR 7,100,000 8,880 CNY 150,724,804.10 1,988,572 56,130,182 626,906 Total of Commitments for Issued in Foreign 29,971,859 25,505,157 Currency L/Gs 53.2.2. Commitments for issued IRR L/Gs: March 19, 2020 March 20, 2019 Million IRR Million IRR Commitments for Issued L/Gs 122,120,285 79,761,586

53.3. Bank’s other Commitments are as follows: Group and Parent Company March 19, 2020 March 20, 2019 Million IRR Million IRR Commitments for Mozarebeh Contracts 116,076 122,463 Commitments for Transacted Conducted Contracts - Civil Partnership - IRR Eqivilant 359,271 641,555 Commitments for Credit Cards 10,648 62,120 Commitments for Transacted Conducted Contracts - Civil Partnership 147,500 147,500 Commitments for Conducted Contracts in Foreign Currency - Provision for Foreign Currency 8,223 23,547 Account Commitments for Guaranteeing Sukuk Securities - Commitments for Guaranteeing the Investment Fund 282,974 1,289,233 Commitments for Kara Credit Cards 50,000 50,000 Commitments upon Parties - Members' Commitments - Sigma Card 890,000 890,000 Commitments for Syndicated Funds 4,214,511 Commitments for Funds Received from National Development Fund 39,989 Total of Bank's Other Commitments 6,119,192 3,226,418 53.4. Commitments for L/Cs and L/Gs based on the type of Collateral: Group and Parent Company March 19, 2020 March 20, 2019 Million IRR Million IRR Deposit 5,503,208 5,175,589 Participating Bonds & Other Securities Guaranteed by Government & CBI - - Participating Bonds & Other Securities Guaranteed by Other Banks 900,222 581,227 Bank L/Gs - - Transacted L/Cs - - Shares Listed in Stock Exchange 96,156 87,260 Land & Building 4,935,100 4,714,253 Machineries - - Cheque & Promissory Note 132,616,156 120,165,982 Other 22,814,603 3,326,565 166,865,445 134,050,877 Commitments without Collateral - - 166,865,445 134,050,877

54. Capital Commitments and Contingent Liabilities: EN Bank was investigated by the authorities for Social Security Insurance from 2002 to 2013, however as of the date of preparing the financial statements, the amount of debt hasn’t been announced to the Bank. The capital commitment and contingent liabilities of the group is as follows: 54.1. Capital commitment of the group and parent company from signed and approved contacts at the date of balance sheet is as follows:

Group and Parent Company Million IRR Investment in Project 875,932 Total 875,932

54.2. Contingent Liabilities of the Group in the Balance Sheet date is as Follow:

Group Million IRR Our Guaranteed Cheques Held with Others 3,274,309 Our Blocked Deposits Held with Others 450,000 Blocked Deposits Held with Banks 200 3,724,509

Parent

Company Million IRR Blocked Deposit (For L/G) 450,000 450,000 Annual Report 2019 Group possible dues mainly include dues to social security organization, VAT, performance tax and prior 135 years’ payments. 136 55. Earnings per Share: Earnings per share are the result of dividing profit of the shareholders to weighed average of shares number at shareholders’ disposal. Weighted average shares number (base) is IRR13,131 million. 55.1. Fully Diluted Earnings per Share: Fully diluted earnings per share equals Earnings per share.

Annual Report 2019 56. Events after Balance Sheet Date: - Follow up for dues from Stratus Group Companies which initiated in previous year, has finalized based on the agreement between the Bank and these companies through proper economic crimes judiciary authorities with repossession of property and part of shares of Iran Building Investment Company, EN Bank, EN Investment Bank, and Iran’s Energy Market, at June 26th 2020. - After providing and approval of capital increase rationale report by the Bank’s Board of Directors via assets revaluation (property) and cash contributions from the shareholders, the general meeting at May 11th 2020, approved the capital increase in the amount of IRR17,294,734 million (131.7% of the Bank’s registered capital), solely via assets revaluations, the proceedings of which are underway. 57. Bad Debts: EN Bank did not have any Bad Debts on March 19, 2020.

58. Bank Risks Description: The Bank is subjects to the Credit risk, Liquidity risk, Market risk, Operating risk. The impact of different risks to the Bank’s business in different fields is shown in the following diagram: 58.1. The Following Diagram Represents the Relationship Between Different Business Areas and Main Risks Each Unit is Exposed to:

EN Bank

Private Banking Corporate Banking Retail Banking

Credit Risk: High Credit Risk: High Credit Risk: Medium Market Risk: Low Market Risk: Low Market Risk: Low Liquidity Risk: Medium Liquidity Risk: Medium Liquidity Risk: Medium Operating Risk: Medium Operating Risk: Medium Operating Risk: Medium

58.2. Risk Management Structure Diagram and Framework: EN bank has established “risk management and research group” which has been promoted to independent management since 2005. Risk management duties and responsibilities include recognition, measurement, control and management of various risks in the bank. It is noteworthy that all managers and staffs of the bank are responsible to do above duties. To effectively managing and controlling the risk EN Bank has High Risk Committee which is a main council of the board of directors and consists of two members of the board of directors, an independent and expert member out of the bank and risk manager as the secretary of the committee. Executive unit of risk management which is under supervision of the Bank’s managing director in the management level is responsible to perform the decisions made by the high risk management and report the results to the committee as well as perform duties assigned by the managing director. Secondary Committee of Board of Directors Market Risk

Secondary Committee of Risk Supreme Credit Risk Committee CEO Secondary Committee of Executive unit or Liquidity Risk Risk Management

Secondary Committee of Operational Risk

58.3. Credit Risk: 58.3.1. Definition Credit risk essentially refers to the borrower. In other words, credit risk is customer’s default in repaying all or a portion of its debt according to the provisions of contracts, which result in any depreciation of a portion of the Bank’s assets, especially the financial section of loans. 58.3.2. The Bank’s Credit Policies: The Bank’s credit policies are determined with respect to the CBI’s advices in reference to reducing credit risk. In this context, having put into consideration the policies and supervisory packages and circulars of CBI as well as the recommendations of Basel Committee and current economic and future conditions influencing Iran’s money market, the Board of Directors formulate the credit policies of the Bank. 58.3.3. Credit risk Management Executive Units: Having received customer requests from branches, regional offices and corporate banking offices, these units obtain documents from customers in full and act in accordance with regulations. Then based on the completed documents, the customer’s creditworthiness is evaluated on the basis of the scope of rating authority of branches, Rah -e Eghtesad Novin Financial & Credit Company and credit management department. Final approval of the applicant is then analyzed and the credit result is obtained in view of relevant credit conditions. The Bank’s supervisory units (Inspection, Risk Management, Supervisory & Credit Information and Internal Audit Departments) offer their expert opinion and controlling reports and act as supporting units of the executive units. 58.3.4. Scope of Authority of Different Levels of Organization for Approving Facilities and Commitments: Approving customer loans and commitments are based on the scope of authority of all related credit groups, including the credit committee of branches, Regional Credit Committee, Credit Committee, Credit High Committee and the Bank’s board of directors. 58.3.5. Methods of Reducing Credit Risk: Having credit committees in view of their scope of authority. Identifying sustainable businesses and reputable customers for the purpose of improving credit portfolio. Assessing the quality of credit portfolio and required reserves as well as conducting necessary adjustments. Frequent Assessing the performance of different credit pillars within the Bank. Reporting the Bank’s large loans and commitments and assessing the scope of these loans in accordance with the CBI instruction. Complying with the existing instructions in reference with maximum loans granted to related parties. Obtaining sufficient and creditworthy collateral in proportion with loans granted. Taking necessary measures to create a comprehensive data base to collect all the details about the Bank’s credit customers’ collaterals, as well as developing an organizational culture in which obtaining liquefiable collaterals to decrease the level of weighted assets in of importance. Annual Report 2019 Using inquiry systems that are approved by the CBI. 137 138 Creating encouraging and motivational plans to settle non-current debts. Implementing Credit Risk Critical Tests in accordance with CBI’s instructions. 58.3.6. Customer Credit Rating Process: At EN Bank, customer credit rating is conducted on two levels. First, Rah-e Eghtesad Novin Financial & Credit Services Company”, which is a subsidiary of EN Bank, specializing in credit rating, conducts customer credit rating with the aid of its specialized experts and submits its opinion to the Bank. Then, the Bank’s credit experts on branches, regional offices, credit management and specialized credit committee levels Annual Report 2019 submit their opinion based on customer type, scale of request, previous customer credit performance (using terminals and accessible data banks of CBI and the advice of Iran Credit Rating Consulting Company), customer domicile, capability of fulfilling future commitments, considering the identifiable risks in the economic sectors where customers are concerned as well as other technical and economic conditions of customers. Their opinion is then taken into account by the Credit Committee upon decision making 58.3.7. Credit Quality Analysis: Bank’s assets quality including loans, commitments and investments, type and amount of collaterals received and adequacy of collaterals obtained (ratio of granted loans balance to updated value of collaterals or LTV) from aspect of credit risk is displayed in tables 58.3.7.1 to 58.3.7.4. 58.3.7.1. Internal Credit Rating System for Credit Customers is Currently Being Installed at EN Bank and Filling the Table of this Note is Pendent upon Completion of this Project. 58.3.7.2. Granted Loans and Commitments and Investments Credit Quality Analysis Table based on Assets Categories:

Loans Granted to Banks Loans Granted to Customers Commitments for L/Gs & L/Cs March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Current - - 391,652,068 230,426,288 166,762,684 133,950,730 Overdue - - 2,307,626 5,632,401 - - Deferred - - 3,092,895 14,603,130 - - Doubtful 779,747 629,867 62,358,207 62,871,260 - - Total of Gross 779,747 629,867 459,410,796 313,533,079 166,762,684 133,950,730 Fee Value Decrease - - (26,792,901) (24,033,091) - - Reserve Net Book Value 779,747 629,867 432,617,896 289,499,988 166,762,684 133,950,730 58.3.7.3. Credit Quality of Participation Bond and the Like:

Credit Quality Analysis March 19, 2020 March 20, 2019 Million IRR Million IRR Governmental Securities & Government Treasury Notes Government Benefit Bonds 5,000,000 - Islamic Treasury Notes 13,544,135 6,686,856 Total 18,544,135 6,686,856 Public Companies Securities Government Participating Lease Bond - 980 Total - 980 Private Companies Securities Mutual Investment Funds - Sepehr Andisheh Novin Combined Fund 12,027 12,027 Armaghan Iranian Investment Fund 90,000 90,000 Atiyeh Novin Investment Fund 30,000 30,000 Foreign Currency Investment Fund - - Yekom Moshtarek Iranian Mutual Fund 28,109 28,109 Novin Market Making Investment Fund - 45,000 Capital Market Development Mutual Fund 200,409 200,409 Moshtarek Miad Iranian Mutual Fund 4,500 4,500 Novin Pishro Market Making Investment Fund 275,078 299,776 Non-governmental Salaf Securities 299,250 - Total 939,373 709,821 Overall Total 19,483,508 7,397,657

58.3.7.4. Type and Amount of Collateral Obtained from Credit Customers: Main Types of Collaterals March 19, 2020 March 20, 2019 Million IRR Million IRR Loans Granted to Natural Persons Cash - - Participation Bonds 4,806 39,388 Marketable Securities 15,175 14,074 OTC Listed Shares 5,949 7,902 Deposit 8,368,090 5,322,140 Real Estate and Properties 25,386,354 27,335,574 Factories and Facilities - - L/G 2,473 12,396 Cheque 21,328,240 21,124,971 Promissory Notes 33,115,747 31,308,943 Binding Agreement 56,005,223 50,517,243 Movable Property 7,836 9,992 Total of Natural Customers'' Collaterals 144,239,892 135,692,622 Loans Granted to Legal Entities Cash Participation Bonds 37,776 151,914 Marketable Securities 44,782,813 28,820,385 OTC Listed Shares 175,767 10,910 Deposit 56,765,100 21,280,534 Real Estate and Properties 24,386,342 23,234,328 Factories and Facilities - - L/G 1,274,597 831,844 Cheque 899,344,536 588,657,795 Promissory Notes 55,199,461 56,225,275 Binding Agreement 352,935,235 172,345,223 * MovableThe mentioned Property amount is the mortgaged value of collateral based on the written3,673,018 report of the Bank’s expert3,717,891. Total of Legal Cutomers' Collaterals 1,438,574,645 895,276,099 Annual Report 2019 Total of Collaterals Obtained from Credit Customers 1,582,814,537 1,030,968,720 139 140 58.3.7.5. Balance of Loans based on Loans Balance Ratio (Less Reserves) at Updated Cash Value of Collaterals:

Description March 19, 2020 March 20, 2019 Million IRR Million IRR Loans Granted to Banks Below 50% - -

Annual Report 2019 51-70% - - 71-90% - - 91-100% - - Above 100% 779,747 629,867 Total 779,747 629,867 Loans Granted to Natural Customers Below 50% 20,786,438 18,435,968 51-70% 4,365,363 3,091,561 71-90% 5,525,428 5,222,194 91-100% 2,496,722 2,563,892 Above 100% 25,953,055 41,664,146 Total 59,127,006 70,977,760 Loans Granted to Legal Customers Below 50% 87,971,947 91,676,339 51-70% 11,318,722 4,804,449 71-90% 3,286,383 3,597,093 91-100% 5,461,993 5,474,828 Above 100% 265,451,845 112,969,518 Total 373,490,890 218,522,228 Overall Total 433,397,643 290,129,855 * In calculating the amount in question, mortgaged value is updated taking into consideration the mentioned liquidity coefficient referred to by Assets Categorization & Provisions Circular.

58.3.8. Credit Risk Concentration: Here, the Bank’s policy refers to distribution of credit risk in view of economic sectors, domestic and overseas sectors as well as contracts and the results of enforces these policies are stated in tables 58.3.8.1. and 58.3.8.2. 58.3.8.1. Distribution of Economic Section of Loans and Investments and its Domestic and Overseas Concentration:

Loans Granted Investments

March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Book Amount 460,190,543 314,162,946 11,885,502 12,403,911 Loans/Commitments based on Economic Sectors Industry 58.3.8.1.1 241,471,957 132,073,802 10,623 497,916 Housing 34,629,984 37,055,614 588,947 614,764 Trading 91,738,725 76,133,349 - - Services 85,874,219 60,748,603 7,793,068 7,430,213 Agriculture 1,987,255 2,105,964 - - Imports & Exports 1,422,384 1,433,155 - - Other 2,286,272 3,982,592 10,473 378,495 Banks 779,747 629,867 3,482,391 3,482,522 Total 460,190,543 314,162,946 11,885,502 12,403,911 Amount of Loans/Commitments in Iran & Over Seas In Iran 459,410,796 313,533,079 8,465,879 8,984,288 Over Seas 779,747 629,867 3,419,623 3,419,623 Total 460,190,543 314,162,946 11,885,502 12,403,911

58.3.8.1.1. Distribution of Loans, Commitments And Investments based on the Industry is as follows: Description March 19, 2020 March 20, 2019 Million IRR Million IRR Loans Automobile & Parts 29,544,554 11,487,180 Steel & Mineral Industries 72,810,151 35,388,994 Chemical & Petrochemical Industries & Petroleum Products 97,893,900 60,016,683 Food & Medicine 13,729,281 10,531,038 Energy 1,451,167 1,030,020 Contracting - - Communications, Computer & Related Industries 5,116,172 4,396 Financial Intermediary - - Other Productions 14,488,479 7,080,550 Building 555,222 504,792 Other 5,883,031 6,030,147 Total 241,471,957 132,073,802 Investments Automobile & Parts - 61,309 Steel & Mineral Industries - 141,997 Chemical & Petrochemical Industries & Petroleum Products 10,316 167,503 Food & Medicine 307 30,445 Energy - 96,662 Contracting - - Communications, Computer & Related Industries - - Financial Intermediary - - Other - - Total 10,623 497,916

Overall Total 241,482,580 132,571,717 Annual Report 2019 141 142 58.3.8.1.2. Distribution of Loans based on Participatory and Non-Participatory Contracts and Customer Type: Type of Contract Type of Customer Balance of Loans at the End of the Period Amount In Proportion to Total Million IRR % Natural Customers 22,786,368 4.96% Annual Report 2019 Non-participatory Contracts Legal Customers 271,955,349 59.20% Total 294,741,718 64.16% Participatory Contracts Natural Customers 42,464,357 9.24% Legal Customers 122,204,722 26.60% Total 164,669,079 35.84% Overall Total 459,410,796 459,410,796 100.00%

58.3.9. Methods of Non-Current loans Management: In this section, in order to collect claims, whilst the Bank aim to prevent current loans to enter non-current loans heading, it follows up its claims constantly and on a daily basis through its regional offices and branches. Referring to the dues of those customers whose debts have been transferred to non-current heading, the Bank holds numerous meetings with customers and grants allowances according to the Bank’s regulations and a portion of dues is obtained (a portion of interest, penalties and principal amount of loan, were possible). The initial amount is obtained in cash in accordance with the Bank’s regulation and instruction and the remainder is obtained in one go or by instalments, upon customer request. In addition, it is noteworthy that the Bank has no intention of acquiring the properties of customers, unless in cases where customers do nothing to fulfill their commitments. In such cases, the Bank takes all necessary measures to safeguard its rights by repossessing customer properties and to recover its claims. In implementing this process, (repossessing collateral of current loans) it is inevitable that a wealth generating asset shall become a non-wealth generating asset, reducing the Bank’s asset returns. In this regard, in order to organize the repossessed properties, the Bank has established a specialized company known as: Iranian Omran Investment & Sustainable Development Company. By following policymaking and focused planning, this company takes important steps in selling repossessed assets, which is referred to in note: “Other Income”. 58.3.9.1. Flow of Non-Performing Loans:

March 19, 2020 March 20, 2019 Late Payment Late Payment Principal Interest Total Principal Interest Total Penalty Penalty Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Non-current Loans Balance at the 27,511,961 15,021,306 40,573,524 83,106,791 30,353,254 12,577,333 32,275,745 75,204,331 Beginning of the Year Transferred to Non-current during 60,605,231 329,049 912,615 61,846,895 99,160,001 5,434,514 16,980,862 121,575,377 the Year Non-current Loans Settled during the Year Cash Recovery (4,279,181) (2,336,398) (6,310,762) (12,926,340) (5,088,276) (2,778,157) (7,503,983) (15,370,415) Recovery by Asset (1,404,358) (766,786) (2,071,091) (4,242,217) (388,987) (212,384) (573,662) (1,175,032) Repossession Settled by New Loans ------Extended (60,002,568) (60,002,568) (96,524,032) - - (96,524,032) Bad Debts ------Due Transfer ------Writing- off - - (23,832) 23,832 - - (405,438) (605,438) Penalties Non-performing Loans Balance at 22,431,085 12,247,189 33,080,455 67,758,729 27,511,961 15,021,306 40,573,524 83,106,791 the End of the Year

58.3.9.2. Distribution of Non-Current Loans based on Economic Sectors:

Balance of Non-current Loans & Dues Specific Provision for Doubtful Debts Net Non-current Loans & Dues March 19, March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 March 20, 2019 2020 Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Partial Distribution of Non-performing Loans Industry 9,996,562 26,001,634 (4,401,308) (3,132,187) 5,586,254 22,869,448 Housing 10,175,437 22,116,155 (4,678,711) (3,756,986) 5,496,725 18,359,169 Trading 28,063,791 14,224,093 (7,432,090) (8,792,912) 20,631,701 5,431,181 Services 17,361,948 18,344,472 (3,640,725) (4,064,394) 13,721,223 14,280,078 Agriculture 882,305 1,097,154 (211,107) (269,383) 671,199 827,772 Imports & Exports 1,003,855 1,102,364 (477,954) (488,023) 525,900 614,341 Other 274,831 220,919 (67,225) (72,812) 207,606 148,107 Total 67,758,729 83,106,791 (20,909,120) (20,576,697) 46,840,609 62,530,094 58.3.9.3. Balance of Repossessed Assets:

Description March 19, 2020 March 20, 2019 Million IRR Million IRR Movable Assets - - Residential Properties 8,042,430 9,551,527 Commercial / Administrative Properties 7,619,295 5,343,794 Factories and Facilities 195,646 195,646 Securities - - Land 660,330 652,645 Other 1,208,909 432,148 Balance of Repossessed Assets 17,726,610 16,175,761 58.3.10. Capital Required to Cover Credit Risk: Capital required for recovering credit risk of bank’s assets amount IRR29,292,608 million. The calculations for this amount of capital are presented in Table 58.3.10.1 58.3.10.1. Calculations of Required Capital for Recovering Credit Risk: In the following table, capital to recover credit risk is presented in order to achieve capital adequacy of 8% (Allocated capital=8% × Risk)

March 19, 2020 March 20, 2019 Million IRR Million IRR Total of Assets Weighted to Credit Risk 58.7.2.1 366,157,597 324,071,049

Ratio (Percent) 8.00% 8.00% Annual Report 2019 Capital Required to Cover Credit Risk 29,292,608 25,925,684 143 144 58.4. Liquidity Risk: 58.4.1. Definition: Liquidity is generally the ability of a financial institution to fulfil its dues commitment without enduring considerable and unaccepted losses. Thus, liquidity risk is the inability to fulfil its current and future predicted and unpredicted requirements of cash flows and collateral needs, without significantly affecting daily operations. Liquidity risk is mainly divided into two categories of liquidity risk of funding

Annual Report 2019 and liquidity risk of assets. 58.4.2. Liquidity Risk Policies & Procedures: At EN Bank, liquidity risk management policies are formulated by the liquidity risk secondary committee on the basis of current economic conditions influencing Iran’s money and financial markets and taking into consideration, the recommendations of CBI and its guidelines and instructions, specifically the “Minimum required measures of liquidity risk management for credit institutes” instruction. In addition, the tasks of the liquidity risk secondary committee are codified based on said instructions. It’s worth noting that in accordance with the “Minimum required measures of liquidity risk management for credit institutes” instructions, the documents for “Liquidity Risk Management Strategy” and “Guideline for Liquidity risk secondary Committee” have also been codified. These policies have been defined in a way so that the combination of assets and liabilities in IRR and foreign currencies, based on their due dates and exchange rates are made to control and manage liquidity risk. Besides they are to cover the Bank’s liquidity risk in long and short term facing the situations that are to come and prevent any crisis causing conditions from occurring. At the same time, the Bank is active in interbank market with relative reliance on major financial leverages, liquidity and marketability of assets, and considering the situations at hand, will take action in depositing the surplus of its resources with other banks or taking deposits from other banks to cover its short term resources deficit, and overall will be proactive to confront potential long and short-term liquidity disorders. 58.4.3. Liquidity Risk Management Executive Units: At EN Bank, Liquidity risk management and control is carried out via the Customers & Branch Affairs Deputy as well as the International Affairs Department. The Financial & Logistics Deputy (along with the executive financial management and treasury units, including liquidity management, clearing room, treasury and accounting) act as the Bank’s main controller and treasurer within the framework of EN Bank’s policies. By offering their expert opinion and control reports, supervisory units such as inspection, risk management, and internal audit act as the supporting units of the executive units. 58.4.4. Liquidity Risk Measurement Method (Including Principles and Assumptions): • Periodical measuring of asset/liability gap (IRR and foreign currency) within determined periods. • Constantly calculating and measuring liquidity to liability and commitments ratios in order to sustain suitable level of liquid assets. • Periodical calculation of Liquidity Coverage Ratio (LCR) in accordance with the “Minimum required measures of liquidity risk management for credit institutes” instructions. • Assessing the concentrated risk of the bank’s depositors on different dates. • Codifying a list of the Bank’s financing resources, including various deposits and other financing tools. • Calculating the determined limits for each major foreign currency separately and combined.

58.4.5. Liquidity Risk Monitoring & Control Mechanisms: • Formulating required policies for managing the Bank’s assets and liabilities. • Monitoring and assessing the Bank’s liquidity through Assets-Liabilities and Resource-Consumption Committee and Liquidity Secondary Committee. • Monitoring and assessing the impact of fluctuations of granted loans interest rates on Bank’s incomes. • Monitoring and assessing the impact of fluctuations of deposit rates on Bank’s expenses. • Evaluating the cost of money with the aim of reducing it. • Avoiding long-term commitments based on unusual rates. • Implementing and executing the strategies related to the assets-liabilities management. • Identifying the behavior of large depositors and lobbying with them in reference with possible fluctuations of their deposits. • Offering attractive packages of products and services in order to attract and sustain more deposits. • Monitoring and assessing the Bank’s major financing resource provider trading parties. • Monitoring and assessing Bank’s financing resources, including various deposits and other financing tools. • Monthly monitor of Net Open Position (NOP) to comply with set limits for each foreign currency separately and total currencies. 58.4.5.1. The Following Table Presents the Bank’s Liquidity Reserves Composition:

Description March 19, 2020 March 20, 2019 Million IRR Million IRR Balance Held with CBI 736,256 420,039 Cash & Balance Held with Other Banks 27,470,769 50,526,604 Securities Published by the Government 18,544,135 6,687,836 Investment in Marketable Shares 3,462,985 4,139,854 50,214,144 61,774,332

58.4.5.2. Liquidity Ratios:

At the Beginning Period Maximum during Maximum during At the End of

of the Year Average the Period the Period the Period % % % % % Cash & Cash Equivalent to All Assets 14% 13% 17% 8% 8% Cash & Cash Equivalent to All Deposits 19% 17% 21% 10% 10% Net Cash Assets to All Deposits* 9% 11% 19% 6% 6% Loans to All Deposits 83% 79% 84% 76% 84% Loans Granted to 1-Year and Above Deposits 139% 127% 139% 109% 139% Demand Deposits to All Deposits** 37% 34% 37% 30% 36%

Cash and cash equivalents includes, cash balance, participating bonds, claims from banks and other credit institutes. * Net cash assets include cash balance, participating bonds, claims from banks and other credit institutions after deducting debts to banks and credit institutes. * * Demand deposits include sight, Gharz-al Hassaneh and current deposits. Annual Report 2019 145 146

- - - 21,297 (9,327) Million IRR 4,561,645 9,709,448 4,929,481 28,207,024 31,369,009 14,668,115 30,218,132 57,888,700 21,914,784 (1,478,834) 459,410,796 (93,189,016) (18,719,878) (68,121,159) (32,864,641) 662,898,433 (421,722,677) Balance before (603,240,891) (636,105,532) Deduction of Provisions

Annual Report 2019

------Date 0 . 00% 0 . 00% (9,327) 26 . 73% 11 . 00% Million IRR 1,496,336 7,692,355 4,929,481 2,339,200 30,218,132 (7,644,302) (1,478,834) 44,336,304 (9,132,463) (32,864,641) (41,997,104) Without Maturity

------23 (200) (200) (200) 40 . 05% 16 . 48% (26 . 73%) (11 . 00%) Million IRR 3,504,693 3,504,516 3,504,716 (2,339,200) Over 5 Years

------4,349 2,944 1-5 Year (25,857) 416 . 81% 171 . 56% (66 . 78%) (27 . 49%) Million IRR 4,836,690 27,266,453 11,672,960 36,475,119 (7,282,420) (5,843,717) 43,783,396 (7,308,278) (7,308,278) March 19, 2020

------116 Million IRR 8,213,112 2,139,070 (483 . 58%) (199 . 05%) (423 . 98%) 10,425,889 31,348,353 (5,375,421) (1030 . 06%) 185,829,792 (52,754,045) (42,318,835) (90,141,295) 237,956,331 (269,968,160) (328,097,626) (328,097,626) 3 Month to 1 Year

------546 . 48% 224 . 94% 226 . 19% 109 . 57% Million IRR 1-3 Month 4,314,741 45,388,538 11,488,895 (3,052,837) 47,822,459 23,294,292 61,192,174 (34,845,044) (37,897,881) (37,897,881)

------16,832 280 . 29% 115 . 37% 280 . 29% 115 . 37% Million IRR (440,392) 4,561,645 28,207,024 19,696,049 22,222,640 24,528,167 24,528,167 170,628,419 (84,734,701) (18,719,878) 245,332,610 Below 1 Month (116,909,473) (220,804,443) (220,804,443)

- - - 21,297 (9,327) Million IRR 4,561,645 9,709,448 4,929,481 28,207,024 31,369,009 14,668,115 30,218,132 21,914,784 57,888,700 (1,478,834) Book Amount 432,617,896 (93,189,016) (18,719,878) (68,121,159) (32,864,641) 636,105,532 (421,722,677) (603,240,891) (636,105,532) Granted Loans & Dues from Governmental Authorities Dues from Banks & Other Credit Institutes Dues form Affiliated & Subsidiary Companies Dividend Payable Assets Cash Dues from Government Granted Loans & Dues from Non-Governmental Entities Investment in Shares & Other Securities Other Accounts Receivable Fixed tangible assets Customers’ Deposits Debt Securities Intangible Assets Other Assets Total Assets Liabilities Dues to Banks & Other Credit Institutes Performance Tax Reserve Legal Deposits Employees’ Work Termination Benefits & Retirement Commitments Provision Reserves & Other Dues Ratio of Retained Gap to Base Capital - % Ratio of Retained Gap to Base Capital based on Other Cautionary Ratios - % Investment Depositors’ Rights Total Liabilities Total Shareholders’ Equity Retained Gap Ratio of Gap to Base Capital - % Ratio of Gap to Base Capital based on Other Cautionary Ratios- % Total Outgoing Cash from Off Balance Sheet Items Total Liabilities & Shareholders’ Equity Off Balance Sheet Items Gap 58.4.5.3. Assets and Liabilities Maturity Analysis Maturity of Bank’s financial liabilities and assets based on the time probable to be settled is presented in following tabl e: 58.4.5.4. Analysis of Assets & Liabilities Contractual Maturities: 58.4.5.4.1. Financial Liabilities Maturity Date based on the Date Mentioned in the Contract is Presented below:

March 19, 2020

3 Months to 1 Over 5 Without Book Amount Below 1 Month 1-3 Months 1-5 Years Year Years Maturity Date

Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR

Liabilities & Deposits

Dues to Banks & Other ( 18,719,878 ) ( 18,719,878 ) - - - - - Credit Institutes

Customers’ Deposits ( 93,189,016 ) ( 84,734,701 ) ( 3,052,837 ) ( 5,375,421 ) ( 25,857 ) ( 200 ) -

Debt Securities ------

Loans Received form National ( 54,072,295 ) ( 440,392 ) - ( 46,349,483 ) ( 7,282,420 ) - - Development Fund

Investment ( 421,722,677 ) ( 116,909,473 ) ( 34,845,044 ) ( 269,968,160 ) - - - Depositors’ Rights

Total ( 587,703,867 ) ( 220,804,443 ) ( 37,897,881 ) ( 321,693,065 ) ( 7,308,278 ) ( 200 ) -

March 20, 2019

3 Months to 1 Over 5 Without Book Amount Below 1 Month 1-3 Months 1-5 Years Year Years Maturity Date

Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR

Liabilities & Deposits

Dues to Banks & Other ( 34,627,421 ) ( 34,597,217 ) - - ( 30,204 ) - - Credit Institutes

Customers’ Deposits ( 42,898,702 ) ( 37,275,863 ) ( 2,050,861 ) ( 3,548,932 ) ( 22,547 ) ( 500 ) -

Debt Securities ------

Loans Received form National ( 45,551,355 ) - - - ( 45,551,355 ) - - Development Fund

Investment ( 307,318,760 ) ( 107,030,359 ) ( 9,050,257 ) ( 191,238,144 ) - - - Depositors’ Rights

Total ( 430,396,239 ) ( 178,903,439 ) ( 11,101,118 ) ( 194,787,076 ) ( 45,604,106 ) ( 500 ) - Annual Report 2019 147 148 58.4.5.4.2. Financial Liabilities (Foreign Currency) Maturity Date based on the Date Mentioned in the Contract is Presented below: March 19, 2020 Book Below 1 3 Months to 1 Over 5 Without 1-3 Months 1-5 Years Amount Month Year Years Maturity Date Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Annual Report 2019 Liabilities & Deposits Dues to Banks & Other Credit ( 7,743,549 ) ( 7,743,549 ) - - - - - Institutes Customers’ Deposits ( 6,880,463 ) ( 6,880,463 ) - - - - - Debt Securities ------Loans Received form National ( 52,631,903 ) - - ( 45,349,483 ) ( 7,282,420 ) - - Development Fund Investment Depositors’ ( 2,670,757 ) ( 1,237,662 ) ( 1,389,192 ) ( 43,903 ) - - - Rights Total ( 69,926,673 ) ( 15,861,674 ) ( 1,389,192 ) ( 45,393,386 ) ( 7,282,420 ) - -

March 20, 2019 3 Months to 1 Without Book Amount Below 1 Month 1-3 Months 1-5 Years Over 5 Years Year Maturity Date Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Million IRR Liabilities & Deposits Dues to Banks & Other ( 31,658,163 ) ( 31,627,959 ) - - ( 30,204 ) - - Credit Institutes Customers’ Deposits ( 8,215,684 ) ( 8,215,684 ) - - - - - Debt Securities ------Loans Received form National Development ( 44,111,355 ) - - - ( 44,111,355 ) - - Fund Investment ( 3,127,317 ) ( 1,440,538 ) ( 211,275 ) ( 1,475,503 ) - - - Depositors’ Rights Total ( 87,112,519 ) ( 41,284,181 ) ( 211,275 ) ( 1,475,503 ) ( 44,141,559 ) - - 58.4.6. Counter-Crisis plan (Liquidity Adequacy Stress Test): In this test, the impact of withdrawals on liquidity ratio (cash assets and equivalent cash/total deposits) for the period ended 20.03.2017 has been calculated. This test is based on the assumption that required liquidity is supplied from cash and cash equivalents to cover the shock arising from flight of deposits. In other words, cash assets are affected in the same scale as deposits. The main objective of this test is to assess liquidity ratio prior and after shock. Shock (Deposits’ Withdrawal Percent) 5% 10% 15% Deposits Changes (a) a=Dep(1-5%) a=Dep(1-10%) a=Dep(1-15%) Cash Assets Change (b) b=Ca-(Dep*5%) b=Ca-(Dep*10%) b=Ca-(Dep*15%) Liquidity Ratio before Shock Ca/Dep Ca/Dep Ca/Dep Liquidity Ratio after Shock b/a b/a b/a Dep: Deposits Dep (1- X%): Deposits change Ca: Cash Assets Ca-(Dep× X%): Cash assets changes Ca/Dep: Liquidity Ratio March 19, 2020 Shock (Deposits’ Withdrawal Percent) 5% 10% 15% Deposits 514,911,693 514,911,693 514,911,693 Change in Deposits Resulting from Shock 25,745,585 51,491,169 77,236,754 Deposits after Shock 489,166,109 463,420,524 437,674,939 Cash & Cash Equivalent Assets 16,940,902 16,940,902 16,940,902 Cash & Cash Equivalent Assets after Shock (8,804,683) (34,550,268) (60,295,852) Liquidity Ratio before Shock 3% 3% 3% Liquidity Ratio after Shock -2% -7% -12% EN Bank’s breakeven point for deposits run-off and liquidity compensation is 3%.

March 19, 2020 Shock (Deposits’ Withdrawal Percent) 5% 10% 15% Deposits 350,217,463 350,217,463 350,217,463 Change in Deposits Resulting from Shock 17,510,873 35,021,746 52,532,619 Deposits after Shock 332,706,590 315,195,717 297,684,843 Cash & Cash Equivalent Assets 29,471,396 29,471,396 29,471,396 Cash & Cash Equivalent Assets after Shock 11,960,523 (5,550,350) (23,061,223) Liquidity Ratio before Shock 8% 8% 8% Liquidity Ratio after Shock 3% -2% -7% EN Bank’s breakeven point for deposits run-off and liquidity compensation is 8%.

58.5. Market Risk: 58.5.1. Definition: Risk arising from uncertainty in banks’ transactions portfolio income due to change in market condition including asset price, interest rate, market fluctuations and market liquidity. 58.5.2. Market Risk Management Executive Units: The Deputies of “Financial & Logistics” and “Banking Operations” and Eghtesad Novin Asset Management Company conduct market risk management and control including interest rate, forex and share prices fluctuation risks. The Risk Management Unit offers its expertise and control reports and acts as a supporting unit of the executive units. 58.5.3. Market Risk Measurement Method: The Bank’s value at risk (VaR), open foreign currency position and shares portfolio are calculated using the Historical Simulation, Variance – Covariance Analysis, and Monte Carlo Simulation methods. 58.5.4. Analyzing the Value at Risk of Investment in Shares and other Marketable Investments:

March 19, 2020 March 19, 2020 Probable Change in Market Probable Change in Market Template Effect in Profit & Loss Effect in Profit & Loss Price Price Percentage Million IRR Percentage Million IRR Historical Simulation (-12.20%,+10.88) (130,412) (-7.76%m+9.38%) (60,240) Variance Covariance (-10.06%,+12.31%) 107,512 (-6.27%,+7.02%) (48,674) Monte Carlo (-9.65%,+13.54%) 10,136 (-6.16%,+7.55%) (47,820)

Coefficient of confidence is 99% within a 10-day period. Annual Report 2019 149 150

6,018,299 10,313,387 (4,295,088) Other Currencies ------Annual Report 2019 CNY 52 . 75% 21 . 71% 6,042,038 4,616,551 22,866,795 78,700,139 45,386,740 (6,042,038) 12,841,001 (8,224,450) 696,357,437 843,311,111 150,724,804 156,766,843 (24,667,790) (277,582,737) (181,516,151) (150,724,804) (483,766,678) (156,766,843) (359,544,433) (640,533,521) 1,000,077,953 ------JPY 5,144 4 . 60% 1 . 90% 402,890 421,709 (18,819) (4,937,416) 502,029,837 502,034,981 479,630,881 (17,466,684) (22,404,100) 502,034,981 (22,404,100) ------CHF (348) 7 . 65% 18 . 58% 671,548 (64,123) (64,471) (133,837) 1,360,709 1,360,709 1,626,260 1,760,097 16,710,325 17,381,872 17,317,401 (1,360,709) (1,360,709) 18,742,581 (1,425,180) ------GBP (100) 3,010 0 . 03% 0 . 01% 27,605 36,253 231,089 231,089 101,354 101,354 (28,234) (32,411) 332,443 (33,243) (142,739) (203,484) (101,354) (101,354) (304,838) ------EUR 50 . 04% 177,500 121 . 57% (177,500) 2,556,956 6,153,399 93,485,269 22,660,203 10,638,325 (5,366,001) 42,233,061 169,247,290 266,076,913 125,135,001 147,972,704 104,297,301 (23,453,946) (42,389,307) (80,760,270) (15,176,089) (22,660,203) 414,049,617 (31,594,736) (161,779,612) (125,135,001) (147,972,704) (309,752,316) ------USD 3 . 14% 1 . 29% 396,970 275,195 8,900,336 5,500,347 8,554,063 3,057,720 (5,242,614) (8,554,063) 71,096,476 583,262,279 598,059,933 183,346,846 191,900,909 (10,549,733) (19,200,142) 789,960,842 (70,821,281) (560,009,724) (595,002,213) (183,346,846) (191,900,909) (786,903,122) Cash Dues from Banks & Credit Institutes Dues from Government Granted Loans & Dues from Governmental Authorities Granted Loans & Dues from Non-governmental parties Investment in Shares & Other Securities Dues from Affiliated & Subsidiary Companies Other Accounts Receivable Dividend Payable Employees’ Work Termination Benefits & Retirement Commitments Provision Fixed tangible assets Intangible Assets Statutory Deposits Other Assets Dues to Banks & Other Credit Institutes Customers’ Deposits Debt Securities Performance Tax Reserve Reserves & Other Liabilities Investment Depositors’ Rights Total of F/X Liabilities Bank's Other Commitments Total F/X Assets Costumers' Commitments for L/Cs Costumers' Commitments for Issued L/Gs Costumers' Other Commitments Total of Costumers' Commitments Total of F/X Assets & Costumers' Commitments Total of F/X Assets & Costumers' Commitm ents IRR Equivalent - Million Bank's Commitments for L/Cs Bank's Commitments for Issued L/Gs Total of Bank's F/X Commitments Total of Bank's F/X Commitments and Liabilities Total of Bank's F/X Commitments and Liabilities IRR Equivalent - Million Net Foreign Currency Open Position at March 19, 2020 IRR Equivalent of Foreign Currency Open Position at March 19, 2020 - Million % of Foreign Currency Open Position to Base Capital % of Foreign Currency Open Position to Effective Base Capital 58.5.5. Exchange Rate Risk Analysis: Foreign currency assets, liabilities and commitments at March 19, 2020 are as follows:

5,104,706 22,570,955 ( 17,466,249 ) Other Currencies ------CNY 4 . 22% 17 . 38% 896,585 81,092,737 56,130,182 43,816,356 80,275,897 259,645,547 103,002,035 159,132,216 ( 62,702,017 ) ( 56,130,182 ) ( 42,919,771 ) ( 103,002,035 ) ( 159,132,216 ) 2,043,404,833 1,379,829,921 3,763,973,039 3,923,105,255 ( 2,125,735,792 ) ( 1,495,259,333 ) ( 3,683,697,142 ) ( 3,842,829,358 ) ------JPY 5,144 6 . 27% 1 . 52% 898,440 323,702 ( 414,977 ) ( 574,739 ) 12,255,671 12,255,671 735,078,399 585,739,403 480,298,490 ( 92,747,855 ) ( 12,255,671 ) ( 12,255,671 ) ( 747,361,625 ) ( 840,524,456 ) ( 852,780,127 ) 1,320,822,946 1,333,078,617 ------CHF ( 348 ) 6 . 03% 24 . 84% 671,548 ( 297,289 ) ( 297,637 ) ( 200,631 ) 2,378,990 2,378,990 1,482,194 1,281,564 16,723,492 17,395,039 19,774,029 17,097,402 ( 2,378,990 ) ( 2,378,990 ) ( 2,676,627 ) ------( 11 ) GBP 2,572 0 . 05% 0 . 01% 32,967 25,829 229,709 229,709 101,354 101,354 331,063 ( 28,717 ) ( 32,414 ) ( 30,395 ) ( 142,739 ) ( 203,880 ) ( 101,354 ) ( 101,354 ) ( 305,234 ) ------EUR 53 . 90% 177,500 222 . 09% ( 177,500 ) 2,556,956 6,785,831 18,144,692 55,134,500 11,459,264 188,567,422 173,092,469 389,147,369 131,074,459 128,241,843 259,493,802 648,641,171 134,814,873 ( 69,788,838 ) ( 60,194,913 ) ( 24,121,060 ) ( 43,675,235 ) ( 100,227,685 ) ( 254,332,496 ) ( 131,074,459 ) ( 128,241,843 ) ( 259,493,802 ) ( 513,826,298 ) ------USD 3 . 45% 0 . 84% 585,308 177,897 8,814,577 5,500,347 8,554,063 2,371,958 55,907,472 ( 9,872,093 ) ( 8,554,063 ) 537,167,769 552,068,001 184,810,892 193,364,955 745,432,957 ( 10,325,782 ) ( 14,740,007 ) ( 55,729,575 ) ( 514,758,162 ) ( 549,696,044 ) ( 184,810,892 ) ( 193,364,955 ) ( 743,060,999 ) Annual Report 2019 151 Cash Dues from Banks & Credit Institutes Dues from Government Granted Loans & Dues from Governmental Authorities Granted Loans & Dues from Non-governmental parties Investment in Shares & Other Securities Dues from Affiliated & Subsidiary Companies Other Accounts Receivable Fixed tangible assets Intangible Assets Statutory Deposits Other Assets Total F/X Assets Costumers' Commitments for L/Cs Costumers' Commitments for Issued L/Gs Costumers' Other Commitments Total of Costumers' Commitments Total of F/X Assets & Costumers' Commitments Total of F/X Assets & Costumers' Commitments IRR Equivalent - Million Dues to Banks & Other Credit Institutes Dividend Payable Customers’ Deposits Debt Securities Performance Tax Reserve Reserves & Other Liabilities Employees’ Work Termination Benefits & Retirement Commitments Provision Investment Depositors’ Rights Total of F/X Liabilities Bank's Other Commitments Bank's Commitments for L/Cs Bank's Commitments for Issued L/Gs Total of Bank's F/X Commitments Total of Bank's F/X Commitments and Liabilities Total of Bank's F/X Commitments and Liabilities IRR Equivalent - Million Net Foreign Currency Open Position at March 20, 2019 IRR Equivalent of Foreign Currency Open Position at March 20, 2019 - Million % of Foreign Currency Open Position to Base Capital % of Foreign Currency Open Position to Effective Base Capital Foreign Currency Assets, Liabilities and Commitments at March 20, 2019 are as follows: 152 58.5.5.1. Summary of Net Open Position of Foreign Currency: March 19, 2020 March 20, 2019 Positive Open Position of All Currencies – Million IRR 23,580,529 19,271,110 Negative Open Position of All Currencies – Million IRR (24,821) Net Open Position of Foreign Exchange Market – Million IRR 23,580,529 19,246,289

Annual Report 2019 Positive Open Position of All Currencies to Regulatory Capital of other Prudential Ratios - % 110.91% 90.64% Positive Open Position of All Currencies to Regulatory Capital of other Prudential Ratios - % 0.00% (0.12%)

58.5.5.2. Analysis of Gold, Silver, and Platinum VaR: March 19, 2020 March 20, 2019 Million IRR Million IRR Total Assets in Gold, Silver, and Platinum - - Total Liabilities in Gold, Silver, and Platinum - - Net Assets & Liabilities in Gold, Silver, and Platinum - - Total of Costumers' Commitments in Gold, Silver, and Platinum - - Total of Credit Institutes' Commitments in Gold, Silver, and Platinum - - Total Commitments in Gold, Silver, and Platinum - - Net Open Position of Gold - - Net Open Position of Gold (Always Positive) - - Net Open Position of Gold in Payed Capital & Free Deposits - -

58.5.5.3. Analysis of the Effects of Exchange rate Risk on Profit and Loss: According to the historical simulation method and its resulting probable percentage change in exchange rate, the VaR for F/X net assets and liabilities is as the table below:

March 19, 2020 March 20, 2019 Effect in Profit & Effect in Profit & Type of Currency Probable Change in Price Probable Change in Price Loss Loss Percentage Million IRR Percentage Million IRR USD (-0.00%,+0.59%) (-0.04%,+0.79%) ( 80 ) EUR (-3.09%,+2.90%) ( 328,610 ) (-3.09%,+3.51%) ( 354,039 ) GBP (-4.26%,+4.30%) ( 128 ) (-4.21%,+4.56%) ( 105 ) CHF (-3.07%,+3.31%) ( 49,942 ) (-3.14%,+3.52%) ( 40,486 ) JPY (-3.52%,+4.17%) ( 14,192 ) (-2.83%,+3.78%) ( 8,834 ) CNY (-2.18%,+2.35%) ( 100,852 ) (-1.94%,+3.46%) ( 18,202 ) Other Currencies ( 171,421 ) ( 159,454 ) ( 665,144 ) ( 581,200 ) Coefficient of confidence is 99% within a 10-day period. According to Variance – Covariance method and its resulting probable percentage change in exchange rate, the VaR for F/X net assets and liabilities is as the table below:

March 19, 2020 March 20, 2019 Type of Currency Probable Change in Price Effect in Profit & Loss Probable Change in Price Effect in Profit & Loss Percentage Million IRR Percentage Million IRR USD (-1.61%,+1.59%) ( 4,434 ) (--3.84%,+4.17%) ( 6,824 ) EUR (-3.08%,+2.99%) ( 327,735 ) (-4.85%,+5.19%) ( 555,990 ) GBP (-4.30%,+4.18%) ( 129 ) (-5.54%,+5.61%) ( 135 ) CHF (-3.07%,+3.09%) ( 49,898 ) (-4.74%,+5.03%) ( 60,808 ) JPY (-3.54%,+3.56%) ( 14,272 ) (-4.69%,+5.05%) ( 15,188 ) CNY (-2.48%,+2.39%) ( 114,265 ) (-4.33%,+4.68%) ( 38,793 ) Other Currencies ( 200,605 ) ( 253,944 ) ( 711,338 ) ( 931,682 ) Coefficient of confidence is 99% within a 10-day period. According to Monte Carlo method and its resulting probable percentage change in exchange rate, the VaR for F/X net assets and liabilities is as the table below: March 19, 2020 March 20, 2019 Type of Currency Probable Change in Price Effect in Profit & Loss Probable Change in Price Effect in Profit & Loss Percentage Million IRR Percentage Million IRR USD (-1.55%,+1.34%) ( 4,777 ) (-3.78%,+3.90%) ( 6,731 ) EUR (-3.29%,+3.07%) ( 350,163 ) (-4.89%,+5.08%) ( 560,799 ) GBP (-4.84%,+3.87%) ( 146 ) (-5.20%,+5.78%) ( 134 ) CHF (-2.92%,+2.84%) ( 47,457 ) (-5.11%,+4.92%) ( 65,482 ) JPY (-3.52%,+3.54%) ( 14,186 ) (-4.51%,+5.67%) ( 14,589 ) CNY (-2.49%,+2.48%) ( 115,003 ) (-4.33%,+4.62%) ( 38,830 ) Other Currencies ( 199,514 ) ( 251,922 ) ( 730,747 ) ( 938,486 ) Coefficient of confidence is 99% within a 10-day period. 58.5.6. Required Capital for Market Risk Cover: Total Capital Share Risk Foreign Currency Risk Required to Cover Market Risk Measurement Method Value at Risk Required Capital Value at Risk Required Capital Million IRR Million IRR Million IRR Million IRR Million IRR Historical Simulation (130,412) 505,691 (665,144) 1,900,110 2,405,800 Variance - Covariance (107,512) 403,533 (711,338) 2,108,587 2,512,120 Monte Carlo (103,136) 404,234 (730,747) 2,110,184 2,514,418 All VaR and open foreign currency position of EN Bank are calculated with a 99% coefficient of confidence within a 10-day period. Capital required for market risk cover is calculated by above instructions and following formula: Market Risk Capital=max(Var_t^(1%).k Var_t^(1%)) Where

Var_t^(1%): Value at risk within the period t Annual Report 2019 Var_t^(1%): Value average at risk within the last 60 days 153 k: Coefficient from 3 to 4 based on the pattern efficiency 154 ------( 9,327 ) Million IRR 4,561,645 9,709,448 7,692,355 4,929,481 28,207,024 11,672,960 30,218,132 21,914,784 ( 1,478,834 ) 118,905,829 ( 93,189,016 ) ( 68,121,159 ) ( 76,757,147 ) ( 32,864,641 ) ( 162,798,336 ) ( 195,662,977 ) Insensitive to Interest Rate Annual Report 2019 ------23 Million IRR 3,504,693 3,504,716 3,504,716 76,757,147 Over 5 Years ------4,349 2,944 1-5 Years Million IRR 4,836,690 27,266,453 32,110,436 32,110,436 73,252,431 ------March 19, 2020 116 Million IRR 2,139,070 31,348,353 41,141,995 185,829,792 219,317,331 ( 50,650,830 ) ( 269,968,160 ) ( 269,968,160 ) ( 269,968,160 ) 3 Months to 1 Year ------Million IRR 4,314,741 1-3 Months 45,388,538 49,703,279 14,858,235 91,792,825 ( 34,845,044 ) ( 34,845,044 ) ( 34,845,044 ) ------16,832 Million IRR 19,696,049 22,222,640 76,934,590 76,934,590 170,628,419 212,563,941 ( 18,719,878 ) Below 1 Month ( 116,909,473 ) ( 135,629,351 ) ( 135,629,351 )

- - - - 21,297 ( 9,327 ) Million IRR 4,561,645 9,709,448 4,929,481 28,207,024 31,369,009 14,668,115 30,218,132 57,888,700 21,914,784 ( 1,478,834 ) 432,617,896 636,105,532 Book Amount ( 18,719,878 ) ( 93,189,014 ) ( 68,121,159 ) ( 32,864,641 ) ( 421,722,677 ) ( 603,240,889 ) ( 636,105,532 ) Assets Cash Dues from Banks & Credit Institutes Dues from Government Granted Loans & Dues from Governmental Authorities Granted Loans & Dues from Non-governmental parties Investment in Shares & Other Securities Dues from Affiliated & Subsidiary Companies Other Accounts Receivable Fixed tangible assets Intangible Assets Statutory Deposits Other Assets Total Assets Liabilities Dues to Banks & Other Credit Institutes Customers’ Deposits Dividend Payable Debt Securities Performance Tax Reserve Reserves & Other Liabilities Employees’ Work Termination Benefits & Retirement Commitments Provision Investment Depositors’ Rights Total Liabilities Total Shareholders’ Equity Total Liabilities & Shareholders’ Equity Gap Retained Gap 58.5.7. Sensitive to Interest Rate Assets and Liabilities GAP Analysis: ------( 9,327 ) Million IRR ( 965,348 ) 3,207,738 4,902,071 8,888,154 6,755,508 8,930,430 8,889,266 22,016,614 11,684,641 50,946,642 ( 1,024,447 ) 123,013,325 ( 63,928,531 ) ( 42,898,702 ) ( 10,979,232 ) ( 119,805,587 ) ( 108,826,355 ) Insensitive to Interest Rate ------48 Million IRR 3,877,244 3,877,197 3,877,244 ( 3,207,738 ) Over 5 Years ------1,688 ( 30,204 ) ( 30,204 ) ( 30,204 ) 1-5 Years Million IRR 2,620,956 28,256,146 25,663,707 28,286,350 ( 7,084,983 ) ------March 20, 2019 Million IRR 1,478,731 19,867,775 38,162,069 59,508,576 ( 35,341,129 ) ( 131,729,568 ) ( 191,238,144 ) ( 191,238,144 ) ( 191,238,144 ) 3 Months to 1 Year ------Million IRR 2,188,175 1-3 Months 96,388,439 28,649,277 35,511,359 37,699,534 ( 9,050,257 ) ( 9,050,257 ) ( 9,050,257 ) ------Million IRR 7,407,106 67,739,162 67,739,162 15,673,976 186,284,657 209,366,738 ( 34,597,217 ) Below 1 Month ( 107,030,359 ) ( 141,627,576 ) ( 141,627,576 )

- - - - ( 9,327 ) Million IRR ( 965,348 ) 4,902,071 8,888,154 8,930,430 8,889,266 22,016,614 37,731,662 10,855,195 19,091,747 50,946,642 ( 1,024,447 ) 289,499,988 461,751,768 ( 63,928,531 ) Book Amount ( 42,898,702 ) ( 34,627,421 ) ( 10,979,232 ) ( 307,318,760 ) ( 461,751,768 ) ( 450,772,536 ) Annual Report 2019 155 Gap Retained Gap Total Liabilities & Shareholders’ Equity Total Shareholders’ Equity Total Liabilities Investment Depositors’ Rights Employees’ Work Termination Benefits & Retirement Commitments Provision Reserves & Other Liabilities Performance Tax Reserve Debt Securities Dividend Payable Customers’ Deposits Liabilities Dues to Banks & Other Credit Institutes Total Assets Other Assets Statutory Deposits Intangible Assets Fixed tangible assets Other Accounts Receivable Investment in Shares & Other Securities Dues from Affiliated & Subsidiary Companies Granted Loans & Dues from Non-governmental parties Granted Loans & Dues from Governmental Authorities Dues from Government Dues from Banks & Credit Institutes Assets Cash 156 58.6. Operational Risk: 58.6.1. Definition: Operational risk is possibility of loss arising from inappropriate and inadequate methods and processes, personnel and internal systems or from events outside of bank. 58.6.2. Operational Risk Management Executive Units: All units within the organization are obliged to take into account the guidelines of the CBI and the ratifications of the Board of Directors in order to minimize operational risk. The Risk Management Unit acts as the supervisory body and reports to Annual Report 2019 the Risk Supreme Committee and Risk Subcommittee the performance of each unit and the risks they are exposed to. 58.6.3. Strategies to Prevent intentional and Unintentional Human Error: • Establishing a passive defense in order to identify solutions or reduce the Bank’s vulnerability against natural and unnatural hazards. • Identifying operational risks related to the Bank's businesses through interviews and meetings with experts in related fields. • Identifying the controls corresponding to the risks in the Bank through interviews and meetings with experts in related fields. • Launching and updating security standards in order to upgrade data security, based on the ratifications of the Security Committee of the Bank’s data exchange. • Limiting the user accessibility to the Bank’s information systems via the Users’ Accessibility Levels to Software Systems Committee in order to prevent any deliberate or undeliberate error. • Safeguarding and securing the Bank’s key installations and centers through recruiting expert personnel, conducting research and constantly monitoring the performance of the mentioned centers. • Establishing supportive infrastructure for the vital parts of IT services including hardware, data stations, branch links, and telecommunications. • Launching a 24x7 monitoring system for IT services which include all banking services and some support and management services. • Determining mid-sector plans with the purpose of allocating the Bank’s human and other resources towards minimizing operational risk. • Assessing the performance of various units within the branches and regional offices in order to conform to the Bank’s strategic plan and to further reduce operational risk. • Documenting operation processes throughout the Bank and improving them in order to ease operations and to prevent operational risk. • Revising and adjusting the organizational structure of various sectors throughout the Bank. • Preparing a feasibility report which assesses the risks of all proposed projects and products of the Bank. • Initiating human resource training program in order to raise the general awareness of employees in reference with money laundering and the means to prevent it. 58.6.4. Preparations to Counteract Crisis: • Establishing a data center for backup and emergencies (in addition to the existing data center). • Making backups from the databank in order to avoid the risk of losing data in cases of incidents such as fire, flood, earthquake, etc. • Developing mechanisms in order to prevent any hiccups in banking operations. • Codifying instructions and executive guidelines for passive defense committee and crisis management headquarters. 58.6.5. Operational Risk Measurement Method: Operational risk is measured in compliance with ICB's "Calculation of regulatory capital and capital adequacy for credit institutes' instructions, and using the base index of Basel II Committee Guideline. 58.6.6. Methods of Controlling & Measuring Operational Risk: • Using control systems in order to control documents and other customer information to ensure of authenticity of customer identity and eligibility as means to prevent fraud. • Constantly adjusting and upgrading the Bank’s guidelines, regulations and contracts for the purpose of complying with Iran’s latest laws. • Identifying the controls corresponding to the risks in the Bank through interviews and meetings with experts in related fields. • Launching control mechanisms via activating commissions and various committees and executive units including Inspection Management, Risk Management, Internal Audit Department, AML Department and Compliance & Transparency Department. 58.6.7. Required Capital for Covering Operational Risk: According to the method applied by the bank in evaluating the operational risk, capital at this risk is as follows: Measurement Method Capital at Operational Risk Million IRR Base Index Method 1,425,102 58.7. Capital Management: 58.7.1. Regulatory Capital:

Description March 19, 2020 March 20, 2019 Million IRR Million IRR Regulatory Capital Capital after Deduction the Capital Provided by Reevaluation Surplus 9,819,000 9,819,000 Share Premium - - Retained Profit (Loss) (6,287,440) (6,801,859) Legal Reserve 4,740,871 4,650,091 Reserve Fund - - Other Reserves - - Total of Tier 1 Capital before Base Adjustments 8,272,431 7,667,232 Less: Regularity Adjustments Treasury Stock Total Cost - - Total Cost of the Credit Institute Shares Owned by Affiliated Units at the Time of Capital - (632) Adequacy Calculations Intangible Assets except for "Goodwill for Place of Business (Right to Do Business)" (57,150) (33,374) Minimum Total Cost of Mutual Investment in Shares of Affiliated Financial Foundations or (1) (1) Credit Institutes Net Book Value of Investment to limits Established in "Instructions for Investment in Securities", according to which the value must be weighted to risk and Net Total of Book Value (3,839,743) (3,710,084) of Investment that exceeds established limits, will be deducted from Tier 1 Capital to 50% and from Tier 2 Capital to 50% Other Adjustments by ICB's Diagnosis - - Total of Regulatory Capital Adjustments (3,896,893) (3,744,091) Total Tier 1 Capital after Regulatory Adjustments 4,375,538 3,923,140 Tier 2 Capital Liabilities from Issuing Debt Securities by Credit Institute and their Premiums and Other - - Liabilities after Established Conditions are met Provision for General Doubtful Dues up to 1.25% of Risk Weighted Assets 5,103,840 3,456,394 Adjusted Amount after Revaluation of Fixed Assets, Stocks, and Securities 11,066,494 1,490,400 Less: Net Book Value of Investment to limits Established in "Instructions for Investment in Securities", according to which the value must be weighted to risk and Net Total of Book Value (3,839,743) (3,710,084) of Investment that exceeds established limits, will be deducted from Tier 1 Capital to 50% and from tier 2 Capital to 50% Total of Tier 2 Capital 12,330,592 1,236,710 Less: Surplus of tier 2 Capital to Tier 1 Capital (7,955,054) - Tier 2 Capital Effective in Regulatory Capital 4,375,538 1,236,710 Regulatory Capital 8,751,076 5,159,850 Regulatory Capital as Basis of Other Prudential Ratios 21,260,525 21,260,525

“Regulatory Capital as Basis of Other Prudential Ratios” is erstwhile approved by ICB and in accordance to article 15 of “ Annual Report 2019 Instructions for Investment in Securities” is the basis of other prudential ratios at the time of credit institutes’ statements. 157 Needless to say that the new regulatory capital based on approved statements after the general meeting and taking in effect any probable adjustments and deductions, e.g. shares interest payment to shareholders, will be validated by CBI. 158 ------7,548 62,256 20,625 356,481 944,743 665,961 Million IRR 1,434,827 4,060,927 Required Capital Annual Report 2019 March 20, 2019 ------94,350 778,199 257,807 Million IRR 4,456,014 8,324,517 11,809,288 17,935,343 50,761,590 Commitments Risk adjusted Assets & - - - - - 7,422 10,643 42,654 202,773 876,074 957,441 656,250 118,258 Million IRR 2,805,208 Required Capital - - - - - 92,780 133,031 533,171 Million IRR 2,534,667 8,203,129 1,478,228 10,950,921 11,968,019 35,065,105 Commitments Risk adjusted Assets & % -% -% -% -% -% Risk 50% 50% 50% 75% 100% 150% 150% 200% 150% Coefficient March 19, 2020 - 88,688 61,853 Amount Adjusted Million IRR 2,016,916 1,420,256 5,069,335 4,101,564 1,066,341 1,970,971 57,888,700 18,544,135 21,901,843 11,968,019 23,376,737 % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Coefficient Conversion - 88,688 41,853 Amount Million IRR 2,016,916 1,420,256 5,069,335 4,101,564 1,066,341 1,970,971 57,888,700 18,544,135 21,901,843 11,968,019 23,376,737 Description On Balance Sheet Items Cash Balance (IRR & Foreign Currency Cash in Transition & Cash Balance (IRR & Foreign Currency in Transition at Hand) Statutory Deposit Held with CBI Dues from Government Dues from CBI Participation Bonds Issued or Guaranteed by CBI Dues from Credit Institutes Dues from governmental Organizations and Institutes Dues from governmental Organizations and Institutes and non-governmental public Organizations (Loans & Securities) or dues guaranteed by the said institutions Principal Amount of Participatory Contracts Loans Principal Amount of Participatory Contracts Loans (Civil Partnership, Mozarebeh, Mosaghat Mozareeh) of Companies Listed in TSE Principal Amount of Participatory Contracts Loans (Civil Principal Amount of Participatory Contracts Loans (Civil Partnership, Mozarebeh, Mosaghat, Mozareen) of Other Individuals & Legal Entities Non-trade Investment in Companies Listed in TSE after Non-trade Investment in Companies Listed TSE after Deduction of Accumulated Impairment Non-trade Investment in Other Credit Institute and foreign Non-trade Investment in Other Credit Institute and foreign Credit Institute After deducting reserves, the value of shares in other companies decreased Non-trade Investment in Other Companies After deducting Non-trade Investment in Other Companies After deducting reserves, the value of shares in other companies decreased Amount & Interest of Non-Participatory Contracts Loans- Amount & Interest of Non-Participatory Contracts Loans- for Residential Real Estates Principal Amount & Interest of Non-Participatory Contracts Loans- Amount & Interest of Non-Participatory Contracts Loans- For individuals, small and medium enterprises & Legal Entities (with maximum workforce of 100 people) Loans up to IRR 20 Billion 58.7.2. Capital Allocation: 58.7.2.1. Total Risk- Weighted Assets of the Bank Amounts to IRR366,157,597 million at Fiscal Year Ended March 19, 2020: - - - 39,960 117,006 168,084 436,916 405,220 714,434 656,555 711,052 1,730,243 1,733,332 1,534,659 3,017,750 1,818,193 - - - 499,494 1,462,571 2,101,046 5,461,451 5,065,246 8,930,430 8,206,941 8,888,154 21,628,042 21,666,655 19,183,234 37,721,875 22,727,415 - - - 557,274 960,475 568,545 776,756 966,323 1,307,205 1,037,820 1,254,974 4,582,659 2,287,635 1,073,135 2,417,451 1,828,333 - - - 6,965,924 7,106,815 9,709,448 16,340,061 12,972,749 12,005,936 15,687,178 57,283,242 28,595,440 13,414,184 12,079,044 30,218,132 22,854,156 -% 20% 50% 75% 50% 20% 100% 150% 100% 150% 100% 100% 100% 100% 100% 100% - - - 9,709,448 34,829,622 32,680,122 17,296,999 12,005,936 10,458,119 57,283,242 19,063,627 13,414,184 14,213,630 12,079,044 30,218,132 22,854,156 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% - - - 9,709,448 34,829,622 32,680,122 17,296,999 12,005,936 10,458,119 57,283,242 19,063,627 13,414,184 14,213,630 12,079,044 30,218,132 22,854,156 Annual Report 2019 Amount & Interest of Non-Participatory Contracts Loans- Amount & Interest of Non-Participatory Contracts Loans- For individulas, small and medium enterprises & Legal Entities (with maximum workforce of 100 people) Loans up to IRR 20 Billion & other legal entities (with maximum workforce of 100 people) Amount & Interest of Non-Participatory Contracts Loans- Amount & Interest of Non-Participatory Contracts Loans- For individuals & legal entities Which is not included in the above paragraphs Net non-current receivables(Interest & Late Payment Net non-current receivables(Interest & Late Payment Penalty) Less Related Special Provision Amounts to below 20% of Non-Current Claims Balance Net non-current receivables (Interest & Late Payment Net non-current receivables (Interest & Late Payment Penalty) Less Related Special Provision Amounts to 20% 50% of Non-current Claims Balance Net non-current receivables (Interest & Late Payment Net non-current receivables (Interest & Late Payment Penalty) Less Related Special Provision Amounts to 50% and above of Non-current Claims Balance Other Accounts Receivable (Current) Non-governmental Participation Bonds Dues from Subsidiary & Associated Companies (to be Current Dues & Lacks Loans Nature) Net Fixed Assets Other Balance Sheet Items Claims from loans, or purchasing bonds from other Claims from loans, or purchasing bonds other governments, central banks, non-governmental public authorities of other countries with ratings AAA to AA- Claims from loans, or purchasing bonds from other Claims from loans, or purchasing bonds other governments, central banks, non-governmental public authorities of other countries with ratings A+ to A- 159 160 ------57,369 380,144 469,912 201,734 808,337 Annual Report 2019 ------717,110 4,751,797 5,873,904 2,521,672 10,104,207 ------66,286 106,899 566,073 176,262 250,521 ------828,577 1,336,237 7,075,906 2,203,271 3,131,510 50% 20% 50% 20% 50% 50% 50% 100% 150% 100% 100% 150% 100% 100% 150% 100% ------1,657,155 1,336,237 7,075,906 3,131,510 11,016,356 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% ------1,657,155 1,336,237 7,075,906 3,131,510 11,016,356 Claims from loans, or purchasing bonds credit financial institutes of other countries with ratings less than B- Claims from loans, or purchasing bonds other governments, central banks, non-governmental public authorities of other countries with ratings BB+ to B- Claims from loans, or purchasing bonds other governments, central banks, non-governmental public authorities of other countries with ratings of less than B- Claims from loans, or purchasing bonds other governments, central banks, non-governmental public authorities of other countries without rating Claims from loans, or purchasing bonds multi-purpose development banks with ratings of AAA+ to AA- Claims from loans, or purchasing bonds multi-purpose development banks with ratings of A+ to A- Claims from loans, or purchasing bonds multi-purpose development banks with ratings of B88+ to BBB- Claims from loans, or purchasing bonds multi-purpose development banks with ratings of BB+ to B- Claims from loans, or purchasing bonds multi-purpose development banks with ratings of less than B- Claims from loans, or purchasing bonds multi-purpose development banks without rating Claims from loans, or purchasing bonds credit financial institutes of other countries with ratings AAA+ to AA- Claims from loans, or purchasing bonds credit financial institutes of other countries with ratings A+ to A- Claims from loans, or purchasing bonds credit financial institutes of other countries with ratings BB+ to B- Claims from loans, or purchasing bonds credit financial institutes of other countries without rating Claims from loans, or purchasing bonds other governments, central banks, non-governmental public authorities of other countries with ratings BBB+ to BBB- Claims from loans, or purchasing bonds credit financial institute bodies of other countries with ratings BBB+ to BBB------258,113 2,099,718 1,013,584 25,925,684 ------3,226,418 26,246,478 12,669,802 324,071,049 ------334,423 489,535 2,007,301 29,292,608 ------4,180,282 6,119,192 25,091,261 366,157,597

20% 50% 100% 100% 100% 150% 100% 100% 100% 100% 100% 100% 100%

------4,180,282 6,119,192 25,091,261

20% 50% 20% 50% 50% 50% 100% 100% 100% 100% 100%

------8,360,563 6,119,192 125,456,305 Annual Report 2019 Claims from loans, or purchasing bonds credit financial institutes of inside the country with ratings AAA+ to AA- Claims from loans, or purchasing bonds credit financial institutes of inside the country with ratings A+ to A- Claims from loans, or purchasing bonds credit financial institute bodies of inside the country with ratings BBB+ to BB- Claims from loans, or purchasing bonds credit financial institutes of inside the country with ratings less than BB- Claims from loans, or purchasing bonds credit financial institutes of other countries without rating Unconditional Revocable commitments Irrevocable commitments with a maturity of one year or less after deducting cash deposit and advance receive Irrevocable commitments with a maturity of one year after deducting cash deposit and advance receive Commitments for issued or approved letters of credit whose subject matter is credit collateral after deduction of advance receive Commitments for issued or approved letters of credit whose subject matter is not credit collateral after deduction of advance receive Commitments for Guarantees issued after deducting cash deposit Commitments for Transactions concluded and guarantees of various types of sukuk, including participation bonds Total Other Commitments * The items that are on the balance sheet adjusted in accordance with article 12 of 98/436798 circular dated March 7m 2020 and then multiplied to risk coefficients . 98/436798 in accordance with article 12 of the type of collateral received and are adjusted balance sheet are synchronized with on items, then based off the items * The circular dated March 7m 2020 and then are weighted with risk coefficients . 161 162 58.7.2.2. Total Market Risk-Weighted Assets Amount to IRR24.462.879 million Fiscal Year Ended March 19, 2020:

March 19, 2020 March 20, 2019 Description Risk Required Risk Required Amount Amount Coefficient Capital Coefficient Capital Annual Report 2019 Million IRR % Million IRR Million IRR % Million IRR

Trade Shares 882,350 8.00% 70,588 746,513 8.00% 59,721

Total Cost of Trade Securities- Special Risk - 5.00% - - 5.00% -

Trade Securities- General Risk-Time Left - 0.0% - - 0.0% - to Maturity: 1 Month & Below

Trade Securities. General Risk-Time Left - 0.2% - - 0.2% - Maturity: 1 Month to 3 Months

Trade Securities- General Risk-Time Left - 0.4% - - 0.4% - Maturity: 3 Months to 6 Months

Trade Securities- General Risk-Time Left - 0.7% - - 0.7% - Maturity: 6 Months to 12 Months

Trade Securities- General Risk-Time Left - 1.25% - - 1.25% - Maturity: 1 Year to 2 Years

Trade Securities- General Risk-Time Left - 1.75% - - 1.75% - Maturity: 2 Years to 3 Years

Trade Securities- General Risk-Time Left - 2.25% - - 2.25% - Maturity: 3 Years to 4 Years

Trade Securities- General Risk-Time Left - 2.75% - - 2.75% - Maturity: 4 Years to 5 Years

Trade Securities- General Risk-Time Left - 3.25% - - 3.25% - Maturity: 5 Years to 7 Years

Trade Securities- General Risk-Time Left - 3.75% - - 3.75% - Maturity: 7 Years to 10 Years

Trade Securities- General Risk-Time Left - 4.50% - - 4.50% - Maturity: 10 Years to 15 Years

Trade Securities- General Risk-Time Left - 5.25% - - 5.25% - Maturity: 15 Years to 20 Years

Trade Securities- General Risk-Time Left - 6.00% - - 6.00% - Maturity: above 20 Years

All Foreign Currencies Positive Open Position or Absolute Value of All Foreign 23,580,529 8.00% 1,886,442 19,271,110 8.00% 1,541,689 Currencies Negative Open Position whichever is Higher

Total Capital required to Cover Market 1,957,030 1,601,410 Risk

Coefficient 12.5 12.5

Market Risk-Weighted Assets 24,462,879 20,017,623 58.7.2.3. Total Operational Risk-Weighted Assets Amounts to IRR 17.813.778 million Fiscal Year Ended March 19, 2020:

Description March 19, 2020 March 20, 2019 Required Capital to Required Risk Risk Amount Cover Operational Amount Capital to Cover Coefficient Coefficient Risk Operational Risk Million IRR % Million IRR Million IRR % Million IRR Average Total Income of Banks 9,500,682 15.00% 1,425,102 8,284,461 15.00% 1,242,669 within the last 3 years Coefficient 12.5 12.5 Operational risk-weighted Asset 17.813.778 15,533,364

58.7.3. Capital Adequacy Ratio: Bank’s capital adequacy ratio is 2.14% at the end of the fiscal year ended March 19, 2020.

March 19, 2020 March 20, 2019 Million IRR Million IRR Regulatory Capital * 8,751,076 5,159,850 Credit Risk Weighted Assets 366,157,597 324,071,049 Market Risk Weighted Assets 24,462,879 20,017,623 Operational Risk Weighted Assets 17,813,778 15,533,364 Total of Risk Weighted Assets 408,434,254 359,622,037 Tier 1 Capital to Risk Weighted Assets Ratio - Percentage 1.07% 1.09% Capital Adequacy Ratio - Percentage 2.14% 1.43%

* See note 58.7. 58.7.4. Degree of Leverage: Degree of leverage is bank’s total assets divided to shareholders’ equity. Bank’s degree of leverage at the end of the fiscal period leading to March 19, 2020 is 5.17%.

March 19, 2020 March 20, 2019 Million IRR Million IRR Total of Shareholders’ Equity 32,864,461 10,979,232 Total of Assets 636,105,532 461,751,768 Degree of Leverage - Percentage 5.17% 2.38%

59. Transactions with Affiliated Parties: 59.1. Major Shareholders’ Changes (Above 1%) During the year ended at March 19, 2020, Karafarin Bank Co. (Public Stock) and Behshahr Industries Development Co. (Public Stock) have purchased 445,017,847 shares and thus entered the classification of over 1% shareholders. Also Poshtiban Ijad Sakhteman Co. (Private J.S), Faraz Civil Development Engineering Co. (Private J.S), and Kosar Bahman Investment Management Co. (Private J.S) have sold their shares of the bank, hence are no longer among the above 1% shareholders. 59.2. Transactions with Managers: The bank has no transactions with managers (Including bank’s managing director, board members and agent board). 59.3. Transactions with Affiliated Parties:

59.3.1. Information Related to Affiliated Parties to the Group Except for Companies that are Subject to Annual Report 2019 Consolidation During the Reported Period is as follows: 163 164 ------Due - - - Million IRR Balance of (19,010) (64,544) (83,554) Million IRR Balance of Due March 20, 2019 March 20, 2019 - - - - Due 622,552 762,329 Million IRR Balance of 3,787,399 Annual Report 2019 - - - - (17,793) (17,793) Million IRR ------Debt Balance of Debt Million IRR Balance of - - - - Due 586,819 412 Million IRR Balance of 1,164,140 3,954,335 7,832 5,254 35,448 Million IRR 1,493,619 1,542,565 Balance of Due - - - - 331 324 6,129 11,342 (Loss) of Million IRR Gross Profit Transaction 28 33 862 269 3,803 4,996 Million IRR Transaction 5,975 5,232 5,975 5,232 Gross Profit (Loss) of 55,718 65,437 Million IRR Amount of 6,617,877 6,475,036 Transaction March 19, 2020 256 302 7,832 2,449 34,575 45,414 Pricing Method Contract Contract Contract Million IRR Amount of Million IRR Transaction No No Yes Article 129 Inclusion of Contract Contract Contract Contract Contract Million IRR Pricing Method March 19, 2020 Subject of Investment Contracting Commission Transaction Million IRR Real Estate System Providing Management Fee Insurance Services Coins Purchase Fund Settlement Coins Settlement Maintenance of ATMs Fund Finance Expense Subject of Transaction Foreign Currency Purchase Foreign Currency Settlement Received R&M Services and Selling Repossessed Received R&M Services for Branches & Feeding and Affiliated Affiliated Affiliated Affiliated Subsidiary Type of Relation Type of Relation Subsidiary Subsidiary Board Member Eghtesad Novin Khadamat Rayan Co . Behsazan Toseeh Soheil Eghtesad Novin Brokerage Co . Novin Insurance Co . EN Investment Bank Name of Related Party Name of Related Party EN Services & Supports Iranian Civil Investment & Sustainable Development EN Foreign Currency & Exchange 59.3.2. Information Related to Affiliated parties the Parent Company is as follows: - - - - (755,872) (755,872) - - 123 (261) 1,204 (48,807) (16,163) (92,443) Million IRR (156,347) - March 20, 2019 6,659 84,705 579,855 270,524 6,114,023 Claim (Debts) Balance at ------2,131 94,530 (40,029) (48,807) (88,836) 578,450 163,052 Million IRR 1,492,125 8,035,582 March 19, 2020 Claim (Debts) Balance at - - 412 5,014 3,465 73,483 12,535 121,077 114,047 348,158 276 276 87,497 20,615 31,500 121,077 114,047 668,030 752,872 15,032,672 ------Million IRR Debts, etc.) Contract Contract Contract Contract Contract Contract Adjustments (Expenses for Doubtful No No No No No Yes - - - - (123) 92,443 16,163 (1,204) (39,768) Million IRR Payment (Receipt) Investee Affiliated Affiliated Affiliated Other Other Affiliated Subsidiary Subsidiary Machines Mutual Control Type of Relation Sale of POS Machines Stocks Market Making Received Expert Services Investment Management Fee Commission for the 1st 4 Months of Year Received Support Services for ATM and POS Commission for the last 8 Months of Year Affiliated Subsidiary Subsidiary Subsidiary Board Member Annual Report 2019 Novin Investment Bank Brokerage Co . Khouzestan Investment & Development Co . Behshahar Industrial Group Construction Investment Co . Pad Novin Insurance Services Co Total EN Investment Bank Novin Building Investment Co . Eshtad Tejarat Co . Novin Investment Bank Pardakht Novin Arian Rah-e Eghtesad Novin Financial & Credit Services Co . Novin Investment Bank Avaye Salam Mehr Novin Communication EN Investment Bank Total Transactions value equals their fair . 59.4. The Balance of Affiliated Parties during the Year, with whom no Transaction has been Carried out, But have a At Ban k’s Accounts are Stated below: 59.4.1. The Balance of Affiliated Parties to the Group Except for Companies that are Subject Consolidation with whom no Transaction has been Carried out is as follows: 165 166 59.4.2. The Balance of Affiliated Parties to the Parent Company with whom no Transaction has been Carried out is as follows: Adjustments Claim (Debts) Claim (Debts) Type of Payment Name of Related Party (Expenses for Doubtful Balance at Balance at Relation (Receipt) Debts, etc.) March 19, 2020 March 20, 2019 Million IRR Million IRR Million IRR Million IRR

Annual Report 2019 Iraq Regional Development Bank Subsidiary 280,948 - 281,037 89 EN Bank Brokerage Co. Affiliated (3,313) - 2,863 3,313 Chemibaft Co. - (292,802) - - 292,802 EN Bank Leasing Company Subsidiary 1,014,373 - 1,014,490 2,028,863 Novin Investment Bank Affiliated (12) - 1,192 1,204 Novin Insurance Co. Affiliated (156) - 156 - Novin Capital Management Co Subsidiary (114,118) - 338,763 452,881 Eghtesad Novin Khadamat Rayan Co. Subsidiary (1,889) - 35,365 37,254 Total 883,031 - 1,673,866 2,816,406

60. Retained Earnings at the End of the Year: Allocation of retained earnings at the end of the year in the following items is dependent to approval of the ordinary general meeting of shareholders: Amount Legal Duties Million IRR Dividing at Least 10% of the Profit in 2016-17 According to Article. - 90 of Commercial Act as Amended Board of Directors’ Suggestion Dividend Suggested by Board of Directors -

61. Performance Statement of the IRR Saving Gharz-al Hassaneh Operations: 61.1. Balance of Gharz-al Hassaneh Consumption and Resources: March 19, 2020 March 20, 2019 Saving Gharz-al Hassaneh Resources Note Million IRR Million IRR Saving Gharz-al Hassaneh Deposits- IRR 22.2 7,709,341 4,164,849 Total 7,709,341 4,164,849 Gharz-al- Hassaneh Consumption Granted Loans & Dues from Non-governmental Entities (before

Reserve) Ordinary Loans (4,501,236) (2,794,107) Employee Loans (5,351) (1,729) Total of Loans Granted and Dues from Non-Governmental 13 (4,506,587) (2,795,836) Entities Total Gharz-al Hassaneh Consumption (4,506,587) (2,795,836) Reserve Deposit of Saving Gharz-al Hassaneh Resources (769,379) (365,683) Liquidity Provision for Saving Gharz-al Hassaneh Deposits (5%) (385,467) (208,242) Resources Surplus (Deficit) to Gharz-al Hassaneh 2,047,908 795,088 Consumption * Special Gharz-al Hassaneh Deposits (Managed Funds) are not recorded in the present section. 61.2. Gharz-al Hassaneh Operations Net Commission:

Group Parent Company March 19, 2020 March 20, 2019 March 19, 2020 March 20, 2019 Note Million IRR Million IRR Million IRR Million IRR Commission Received for Gharz-al 214,960 110,729 214,960 110,729 Hassaneh Gharz-al Hassaneh Deposits Prizes - - - - Expenses Gharz-al Hassaneh Operations Net 44.1 214,960 110,729 214,960 110,729 Commission

61.3. Classification of Granted Gharz-al Hassaneh Loans Based on Loans Subject:

March 19, 2020 March 20, 2019 Million IRR Million IRR Marriage 2,400,194 1,906,786 Employment 40,725 243,546 Education - - Medical Treatment - - Services 1,698,668 642,504 Total of Granted Gharz-al Hassaneh Loans 4,139,587 2,792,836

61.4. Classification of Granted Gharz-al Hassaneh Loans Based on Customer’s Type: March 19, 2020 March 20, 2019

Million IRR Million IRR Individuals 4,506,587 2,792,836 Legal Entities - - Total of Granted Gharz-al Hassaneh Loans 4,506,587 2,792,836 Annual Report 2019 167