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Resilience Powered by Innovation Resilience powered by Innovation Bank ABC Group Annual Report 2020 Table of Contents ABC Group Exemplary Financial 1 Snapshot 5 Performance 2 Our Promise 98 Independent Auditors’ Report 5 2020 at a glance 104 Consolidated Statement of Financial Position 105 Consolidated Statement of Profit or Loss Visionary 106 Consolidated Statement of 2 Leadership Comprehensive Income 107 Consolidated Statement of Cash Flows 10 Directors’ Report 108 Consolidated Statement of Changes 16 Board of Directors in Equity 18 Head Office Management 109 Notes to the Consolidated Financial Statements 20 Organisational Chart 21 Group Performance 22 Financial Highlights Sound Conduct & 6 Global Access Operational 184 Code of Conduct 3 Excellence 192 Directory 193 Network 26 Review of Operations 38 Corporate Governance Responsible 4 Governance 56 Risk Management Table of Contents ABC Group Exemplary Financial 1 Snapshot 5 Performance 2 Our Promise 98 Independent Auditors’ Report 5 2020 at a glance 104 Consolidated Statement of Financial Position 105 Consolidated Statement of Profit or Loss Visionary 106 Consolidated Statement of 2 Leadership Comprehensive Income 107 Consolidated Statement of Cash Flows 10 Directors’ Report 108 Consolidated Statement of Changes 16 Board of Directors in Equity 18 Head Office Management 109 Notes to the Consolidated Financial Statements 20 Organisational Chart 21 Group Performance 22 Financial Highlights Sound Conduct & 6 Global Access Operational 184 Code of Conduct 3 Excellence 192 Directory 193 Network 26 Review of Operations 38 Corporate Governance Responsible 4 Governance 56 Risk Management Our Promise A team committed to your success. 2 Bank ABC Group Annual Report 2020 Strategic Intent To be MENA’s leading international bank. Resilience powered by Innovation 3 Our Objectives To unlock the full To digitise retail To enhance our To seek potential of our banking in MENA and operating model to inorganic growth global wholesale grow our commercial increase resilience & opportunities and bank. banking in Brazil. strengthen culture. improve returns. Core Values CLIENT CENTRIC COLLABORATIVE CONSISTENT We are committed to We work together as one We are trusted to deliver knowing our customers team across our international every time in the right way, and developing long-term network, providing a superior demonstrating integrity to relationships. client experience. all our stakeholders. 4 Bank ABC Group Annual Report 2020 Bank ABC at a Glance in 2020 Your business partner across 5 continents and 15 countries. UNDERLYING TOTAL UNDERLYING NET TIER - 1 OPERATING INCOME OPERATING PROFIT RATIO $793 $282 16.6 % MILLION MILLION CREDIT LIQUIDITY CAPITAL RATINGS COVERAGE RATIO BASE BBB- 324 % 4,285 MILLION 46% TOTA L Arab World ASSETS 26% Latin America 10% $30.4 Western Europe 9% BILLION North America 5% Others 4% Asia Resilience powered by Innovation 5 Consistent Commitment, The recognitions we received: Persistent Recognition Bank ABC has always been committed to delivering while also combatting the tumultuous economic excellence in financial services. In this pursuit, the environment of 2020. Bank of the Year- Eye on Innovation Best Trade Digital Banking Best Visual Identity Group’s products, systems and processes have In this “year like no other”, Bank ABC’s resilience, 2020, Bahrain Award for Financial Finance Provider Experience of the Year from the Financial evolved over the years to become industry excellence in business and leaps in innovation Services- EMEA for in Bahrain Services Sectors benchmarks. The Group today remains steadfast were recognised by a number of prestigious developing 'Fatema' in developing the ‘Bank of the Future’ international awards. ila bank's digital Best Overall assistant Visual Identity Our core values: Best Use of Typography Best External Stakeholder Relations during a Brand Development Project CLIENT CENTRIC COLLABORATIVE CONSISTENT Bank ABC’s vision, its consistent Bank ABC was awarded the ‘Bank of the Year – for the commitment to all its stakeholders second time as a testament to our client-centric and pioneering digital transformation business model. In our 40 years of existence, we have enabled it to weather an extremely seen from experience that it is commitment that hostile year. This has been recognised matters. Commitment to excellence and commitment to not just by our industry peers and performance. It is this vision that guides us forward rating agencies, but now by The and drives our strategic decision making, aimed at Banker Awards. superior client-centred operations. So at ABC, we see these honours as recognition of Saddek Omar El Kaber, Group Chairman what is truly paramount. Your success. on The Banker award win www.bank-abc.com Consistent Commitment, The recognitions we received: Persistent Recognition Bank ABC has always been committed to delivering while also combatting the tumultuous economic excellence in financial services. In this pursuit, the environment of 2020. Bank of the Year- Eye on Innovation Best Trade Digital Banking Best Visual Identity Group’s products, systems and processes have In this “year like no other”, Bank ABC’s resilience, 2020, Bahrain Award for Financial Finance Provider Experience of the Year from the Financial evolved over the years to become industry excellence in business and leaps in innovation Services- EMEA for in Bahrain Services Sectors benchmarks. The Group today remains steadfast were recognised by a number of prestigious developing 'Fatema' in developing the ‘Bank of the Future’ international awards. ila bank's digital Best Overall assistant Visual Identity Our core values: Best Use of Typography Best External Stakeholder Relations during a Brand Development Project CLIENT CENTRIC COLLABORATIVE CONSISTENT Bank ABC’s vision, its consistent Bank ABC was awarded the ‘Bank of the Year – for the commitment to all its stakeholders second time as a testament to our client-centric and pioneering digital transformation business model. In our 40 years of existence, we have enabled it to weather an extremely seen from experience that it is commitment that hostile year. This has been recognised matters. Commitment to excellence and commitment to not just by our industry peers and performance. It is this vision that guides us forward rating agencies, but now by The and drives our strategic decision making, aimed at Banker Awards. superior client-centred operations. So at ABC, we see these honours as recognition of Saddek Omar El Kaber, Group Chairman what is truly paramount. Your success. on The Banker award win www.bank-abc.com Innovation driven resilience with visionary An astute and unwavering leadership leadership at the helm, was instrumental in the Group's navigation through a tumultuous year. 8 Bank ABC Group Annual Report 2020 Innovation driven resilience with visionary An astute and unwavering leadership leadership at the helm, was instrumental in the Group's navigation through a tumultuous year. Resilience powered by Innovation 9 Directors’ Report Saddek Omar El Kaber Chairman On behalf of the Directors of the Bank ABC Group, it is my pleasure to submit the annual report for 2020 to the shareholders. It highlights the Bank’s achievements and consolidated financial performance during this Following a year of extraordinary year and outlines its strategic direction robust financial results for 2021. in 2019, Bank ABC began A year like no other 2020 optimistic about its The International Monetary Fund’s annual report for prospects for the year last year declared 2020 to be “a year like no other”. The ahead, supported by a reason, of course, was the COVID-19 pandemic, which has swept around the globe, transforming the way we live, bedrock balance sheet. work and conduct business. Following a year of robust However, by the time financial results in 2019, Bank ABC began 2020 optimistic about its prospects for the year ahead, supported by March arrived, everything a bedrock balance sheet. However, by the time March had changed as the impact arrived, everything had changed as the impact of the of the pandemic began to pandemic began to be felt across the world. These unprecedented challenges were addressed right be felt across the world. away with the establishment of a Crisis Management Team as early as February 2020. The Bank responded swiftly to protect the health and safety of its people and to ensure the stability of the business. We strictly adhered to the measures and protocol prescribed by the local authorities across our global network and also promptly deployed the necessary Information Technology infrastructure to enable our staff, where possible, to work remotely from home with VPN (Virtual Private Network) access under a solid information security framework. 10 Bank ABC Group Annual Report 2020 In addition to supporting our employees, we remained steadfast in ensuring business continuity. We adopted a “War Room” approach to address three critical aspects: We adopted a “War Room” operational resilience, to prioritise staff wellbeing and business continuity across the group network, financial approach to address three resilience, to focus on contingency planning; and client critical aspects: operational impact to consider unique requirements of our clients in resilience, to prioritise staff these extraordinary times. The Crisis Management teams met daily to monitor developments and regulations as wellbeing and business they unfolded and determined the necessary actions continuity across the across our countries of presence. group network, financial
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