Mashreq
INVESTOR PRESENTATION September 2019 Over 50 years… S P I R I T
Socially Passionate Respect for Innovative Integrity Transparent Responsible about clients colleagues
“To be the region’s most progressive bank enabling innovative possibilities for our clients, colleagues and communities”
2 UAE economy
Mashreq heritage
Structure and Leadership
Mashreq Strategy Investor Presentation Financial track record Trading history, rating and dividends
Corporate governance
Accolades
3 UAE - Second Largest Economy in the GCC with Promising Growth Prospects
UAE - The second largest economy in the GCC Real GDP Growth Potential – 2018-24F (%) Sovereign Rating by Moody's . Second largest economy in the GCC with nominal GDP of USD 428 billion for 2019E A1 Ba1 B2 Aa2 Aa3 Aa2*
. Well diversified economy with oil & gas contributing only 2.8 2.9 ~26% of the total GDP 2.4 2.4 2.7 2.2 . Despite volatile oil prices, UAE economy remains strong with current account surplus at 5.9% of GDP for 2019E . Holds 8.0% of the proven OPEC crude oil reserves, primarily concentrated in Abu Dhabi KSA Oman Bahrain Kuwait Qatar UAE . Young population with ~61.1% aged between 25-54 years and a literacy rate of ~95%
Nominal GDP per Capita – 2019E (USD thousand) GDP Breakdown by Sector – 2018 (%) Nominal GDP 2019E (USD billion) Oil & Gas 79 762 39 137 428 194 18% 26% Trade 70.3 Financial Corporations 39.8 6% Manufacturing 22.5 25.8 29.1 18.1 Construction 6% Public Admin 11% Oman KSA Bahrain Kuwait UAE Qatar 7% Real Estate Transportation 8% 9% 9% Others* SOURCE: IMF WEO Apr 2019,CIA & OPEC, Moody's. * Represents rating of Abu Dhabi *Others include Agriculture, Utilities, Education, Hotel and Accommodation and Other segments 4 Best Ranked Economy on Ease of Doing Business and Global Competitive Index Among the GCC Nations
Current Account Balance to GDP – 2019E (%) Govt. Net Lending/(Borrowings) to GDP – 2019E (%)
7.4 5.9 4.6 9.5 3.5 6.1
-3.6 -0.8
-8.7 -9.9 -8.4 -7.9 Oman Bahrain KSA Qatar UAE Kuwait Oman Bahrain KSA UAE Qatar Kuwait
Global Competitiveness Index – 2018-19 Ranking1 Ease of Doing Business – 2018 Ranking2
50 54 97 47 83 92 39 78 27 30 62 11
UAE Qatar KSA Oman Bahrain Kuwait UAE Bahrain Oman Qatar KSA Kuwait
1 Rank out of 137 economies; 2 Rank out of 190 countries SOURCE: IMF WEO Apr 2019, World Economics Forum-Global Competitiveness Index 2018, Trading Economics 5 Solid Institutional and Policy Framework as Reflected by Relatively Higher Scores Among the GCC Nations
Scores Highest Among GCC on Govt. Among the Best Ranked in GCC on Rule of Law Index1 Effectiveness Index1
1.4 0.8 0.7 0.7 0.4 0.4 0.2 0.2 0.1 0.2 0.1
-0.2
Bahrain UAE Qatar KSA Oman Bahrain Kuwait UAE Qatar Oman Kuwait KSA
Highest Ranking in GCC on Control of Corruption Enforcement of Contracts - Ranked Best in GCC Index1 122 128 1.1 0.7 73 77 59 0.4 0.2 9
-0.1 -0.3
UAE Qatar KSA Oman Bahrain Kuwait UAE KSA Oman Kuwait Qatar Bahrain
1 Score ranges from -2.5 (w eak) to 2.5 (strong) SOURCE: World Bank – Worldw ide Governance Indicators 2018 update, World Bank- Doing Business 6 UAE ECONOMY – MACROECONOMIC OUTLOOK Non-oil growth is supported by strong hospitality and logistics sectors
Non-oil growth continues to be steady with PMI remaining Non-oil direct trade flows have witnessed steady growth over the above 50 last few years Emirates NBD UAE PMI index UAE non-oil direct trade flows (AED billion) CAGR 65 Increasing rate of growth Re-exports Exports Imports ’13-’18 1,079 60 1,065 1,072 1,059 1,075 1,025 (1.3%) 57 57 57 215 55 55 56 55 55 55 56 232 244 221 252 217 55 54 3.0%) 55 169 148 132 161 159 172
50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec- (1.5%) 685 696 695 18 676 664 636 45 Increasing rate of contraction 40 2013 2014 2015 2016 2017 2018 50 – no change on previous month
The hospitality sector, especially in Dubai, is one of the major … along with the logistic sector
growth drivers … Dubai Abu Dhabi Hotel guests (million) Air passengers (million) UAE container volumes (TEU million)
18.0 18.6 20.2 21.2 20.4 21.0 15.8 15.9 88 89 16.6 14.9 84 14.2 78 13.2 70 66 11.0 10.0 58 UAE air freight (million tonnes) Dubai Abu Dhabi
5.0 4.4 4.9 25 25 * 3.3 3.4 3.5 3.5 4.1 20 23 22 2.9 3.1 3.2 2.8 2.4 2.8 15 17 2.4 2.5 2.6 2.7 2.3 2.4 2.6 0.6 0.7 0.8 0.8 0.8 0.8 0.1 2012201320142015201620172018 2012201320142015201620172018 2012 2013 2014 2015 2016 2017 2018
SOURCE: Emirates NBD, Federal Customs Authority, Hotel and Airport authorities of UAE, World Bank, Khaleej Times, National * Estimate for full year 2018 7 UAE ECONOMY – MACROECONOMIC OUTLOOK
Consumer borrowing has slowed due to flat employment levels
Rents continue to be falling … … as can also be seen in the fall in Dubai property prices over the year Dubai 2Q ‘19 Abu Dhabi 2Q ‘19 Dubai residential sale prices
(AED / SQM) YOY % 14,500 2 Rent Rent Rent Rent 14,000 0 (2 ) growth falling growth falling 13,500 (4 ) slowing slowing 13,000 (6 )
12,500 (8 )
14,011 14,012
14,008
13,971 13,971
13,937 13,928 13,820 (10 )
Rent Rent Rent Rent 13,532 13,358
12,000 13,128 12,385 growth bottoming growth bottoming 12,804 (12 ) acceler- out acceler- out 11,500 (14 )
ating ating
2016Q1 2016Q4 2017Q2 2018Q1 2018Q4 2015Q4 2016Q2 2016Q3 2017Q1 2017Q3 2017Q4 2018Q2 2018Q3 Residential Office Retail Hotel Sale price Dubai (LHS) Sale price growth Dubai (RHS) Consumer borrowing growth has slowed… … due to flat employment levels
Domestic credit to Individuals (AED Bn) Emirates NBD Employment index (#)
65 Increasing rate of growth +5% 52 51 50 51 51 51 50 50 50 51 50 60 49 338 337 332 311 326 283 55
50 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec- 18 45 Increasing rate of contraction
40 2014 2015 2016 2017 2018 May-19 50 – no change on previous month
SOURCE: JLL, UAE Central Bank, Emirates NBD 8 Well Regulated and Diversified Banking Sector
Diversified and Highly Regulated Banking Sector GCC Banking Assets – 2018 (AED billion)
. As of December 2018, UAE banking sector comprised 49 185% 80% 202% 155% 503% 94% banks 2,878 ‒ 22 National Banks with 743 branches and 2,311 ‒ 27 Foreign Banks with 80 branches 1,430 . Diversified loan portfolio - Real Estate and Construction sector 802 708 accounted for only ~20% of loan book in FY 2018 285 . Well regulated banking system, in line with internationally followed best practices . UAE Banking sector has a long-standing track record of UAE KSA Qatar Kuwait Bahrain Oman Government support during crisis situations Total Banking Assets to GDP Ratio Source: IMF WEO Apr 2019, Central Bank of respective country
UAE – Gross Credit and Deposits (AED billion) UAE - Loans by Sector – FY 2018 (%) 1% Mining and Quarrying CAGR 2013- 2018:5.4% 2% Manufacturing CAGR 2013- 2018:6.5% 10% 6% Electricity, Gas and Water
1,756 Construction and Real Estate 1,627 1,657 20% 1,575 1,563 1,580 20% Trade 1,485 1,472 1,378 1,421 Transport, Storage and Comm. 1,276 1,279 Financial Institutions 5% 10% Government 12% 5% Personal Loans for Business 9% 2013 2014 2015 2016 2017 2018 Personal Loans for Consumption Gross Credit Deposits Others Source: UAE Central Bank Source: UAE Central Bank Note: Others include loans to Serv ice Sector & Non Prof it Institutions
Largest banking system in the GCC with total assets of AED 2.9 trillion; sound regulatory framework with widespread support from the Government 9 UAE economy
Mashreq heritage
Structure and Leadership
Mashreq Strategy Investor Presentation Financial track record Trading history, rating and dividends
Corporate governance
Accolades
10 MASHREQ HERITAGE Mashreq is one of UAE's leading financial institutions
. Established in 1967 by the Al-Ghurair family Heritage . 52 years experience in the UAE banking and financial services market
. Oldest regional bank based out of UAE Publicly listed . Combines the entrepreneurial spirit of Dubai with enduring trade banking relationships across the region . Listed on the DFM on the creation of the local stock exchange
Strong . Prominent Regional bank with a presence in most GCC countries and a leading international network regional / with 24 branches / rep-offices in MENA, Asia, Europe and United States international presence . Well positioned to finance regional trade flows
. Universal bank offering a comprehensive suite of products and services to individuals and corporates Diversified across all lines of business business case . Most diversified revenue streams with fee and other income contributing ~ 40% of total income; and high degree of geographic diversification with 21% of revenue coming from outside of the UAE
Strong . Long serving senior executives along with international management expertise delivering a robust management growth model team . Led by Abdul Aziz Abdulla Al-Ghurair, Chief Executive Officer for over 28 years
Strong and . Al-Ghurair Group, the main shareholders of the bank, are a leading conglomerate in the UAE with supportive numerous business interests ownership . Featured in the Forbes billionaire list for the last 10 years structure . Mashreq has been the flagship business for the family for over 50 years
11 MASHREQ HERITAGE Stable and supportive ownership structure
Mashreq’s Leadership Ownership – Al-Ghurair flagship brand Mr. Abdulla Bin Ahmad Al-Ghurair ▪ Al-Ghurair families holds the majority stake in Chairman Mashreq (approximately 87%) and are the ▪ One of the most prominent businessmen and industrialists founders of the Bank in the UAE ▪ Al-Ghurair family has a strong commitment to ▪ Former Chairman of the UAE Banks Association the continued growth and financial solidity of H.E. Abdul Aziz Abdulla Al-Ghurair Mashreq Chief Executive Officer & Director ▪ Al-Ghurair family is one of the oldest and ▪ Chairman of UAE Banks Federation wealthiest families in the UAE ▪ Vice Chairman of the higher board of DIFC ▪ Chairman of Masafi – Featured in Forbes billionaire list for over ▪ Chairman of Oman Insurance 10 years ▪ Board Member of Emirates Foundation – Business interests include shopping ▪ Former Speaker of the Federal National Council malls, real estate, cement manufacturing, food industries, Masafi (mineral) water, Key shareholders (June 2019) contracting, trading, retailing, shipping, printing & packaging, aluminium 9.6% Saif Al Ghurair Investment LLC extrusion, building materials, oil refinery, Abdulla Ahmed Al Ghurair Inv. Co. manufacturing, steel and canning 3.6% Masar Investments 3.5% 39.5% Majid Capital ▪ Mashreq’s shares are listed and traded on 12.7% National Cement Company the Dubai Financial Market Other shareholders
31.1%
12 MASHREQ HERITAGE Strong distribution network in the UAE with 26 branches in Dubai
Alternate Channels ▪ 50 branches (out of which Mashreq Gold has presence in 29 branches and SME Banking has Umm Al Quwain Ras Al Khaimah presence in 24 branches) and a Retail Customer Ajman 1 branch 1 branch Service Center in UAE serving ~500K customers 1 branch ▪ ATMs and CCDMs increased coverage to 343 units in UAE
Sharjah ▪ 35,000 POS machines spread 14,000 merchant location in the UAE. Second Largest Merchant 8 branches acquirer in the UAE with close to 30% market share ▪ Internet Banking through Mashreq Online (Retail incl. Dubai Brokerage), Mashreq Business online (Corporate), Mashreq-FI online (Correspondent Banking); 306,662 26 branches active users are registered with online banking ▪ Mobile banking services: Snapp registration has grown up by 29% year on year and financial transactions has grown by 21% as compared to last year figures. Snapp has been recently upgraded with unique new features such as transfer your credit card balance from other banks card control, Quick remit to Pakistan, Mashreq Pay and Samsung Pay. ▪ Fully integrated electronic platform for transaction banking (GTS) Abu Dhabi Fujairah ▪ State of the art Polaris System (mashreqMATRIX) to provide online services to corporate customers 12 branches 1 branch ▪ 24 x 7 Direct Banking Call Centre
13 MASHREQ HERITAGE Regional and international banking presence with 21% of revenues from outside of UAE
London New York Pakistan Nepal Bangladesh
Kuwait India Hong Kong International Egypt branches Bahrain Financial Institution Qatar branches Representative Offices
14 MASHREQ HERITAGE Strong track record in International expansion
10 12
Egypt, London,
UAE Pakistan, Hong Kong Bahrain Bangladesh Nepal
1967 1981 2001 2010 1978
1971 1980 2009 1984
Qatar India New York Kuwait
2 7 9 11
Presence in number of countries 15 UAE economy
Mashreq heritage
Structure and Leadership
Mashreq Strategy Investor Presentation Financial track record Trading history, rating and dividends
Corporate governance
Accolades
16 STRUCTURE AND LEADERSHIP Mashreq organization chart
Board of Directors
Chief Executive Officer
Corporate Banking Retail Banking International Banking Treasury & Capital Group (CBG) Group (RBG) Group (IBG) Markets (TCM) (28% of revenue) (27% of revenue) (21% of revenue) (9% of revenue)
Corporate Operations & Compliance Credit Risk Internal Audit Affairs Technology Group Management Management Group (IAG) (CA) (O&T) (CG) (CM) (RM)
Note: Financials as of 30 June 2019 17 STRUCTURE AND LEADERSHIP Mashreq is a well diversified universal bank that covers significant lines of business with a full product and channel suite
Corporate Banking Group (CBG) Retail Banking Group (RBG)
Offers wholesale banking Offers personal banking . Energy, Services & Manufacturing . Personal Banking . Trading . SME . Contracting Finance . Mashreq Gold . Real Estate . Private Banking . NBFI . Payments . Emerging Corporates Division . Islamic Banking Products . Global Transaction Services . Distribution . Corporate Finance . Alternate Channels . Islamic Banking products . Direct Sales . Direct Banking Centre
Treasury & Capital Markets (TCM) International Banking Group (IBG)
Offers treasury and investment Offers banking services outside UAE products . Wholesale and Investment . FX and Investments Banking . Rates & Structured Solutions . Treasury and Investment . Mashreq Capital Products . Islamic Banking Products . Personal Banking . Equity Derivatives & Institutional . Financial Institutions Globally Sales . Islamic Banking Products . Mashreq Securities . Investments
Mashreq is a well diversified Universal Bank, covering significant lines of businesses while offering a comprehensive array of products and services
Note: Islamic banking and Insurance segments contributes the remaining revenue 18 STRUCTURE AND LEADERSHIP Oman Insurance is the largest subsidiary of Mashreq
Mashreqbank Psc
Oman Insurance Company (63.94%) Mashreq Al Islami Finance (99.8%) ▪ Largest insurance company in the UAE ▪ Islamic Finance Company ▪ Provides full range of Insurance Products & ▪ Provides full range of Islamic Products & Services Services ▪ Jun ’19 Equity: AED 891 Mn ▪ Jun ’19 Equity: AED 1.8 Bn ▪ 1H 2019 profit: AED 17 Mn ▪ 1H 2019 profit: AED 102 Mn
Mashreq Capital (100%) Mashreq Securities (99.98%) ▪ Registered in DIFC for Brokerage, Asset ▪ Securities brokerage Company registered at Dubai Management and Fund Management services Financial Market ▪ One of the largest asset management in UAE with ▪ One of the leading brokerage in the UAE USD 800 mn in asset under management ▪ Jun ’19 Equity: AED 70 Mn ▪ Funds rated highest in the market ▪ 1H 2019 Profit: AED (2.5) Mn ▪ Jun ’19 Equity: AED 29 Mn ▪ 1H 2019 profit: AED 1.4 Mn
Note: Figures are based on draft audited statements 19 PERFORMANCE BY DIVISION Business Review – Domestic Corporate
Business Highlights Operating Income (AED million)
• Corporate banking contributed ~34% to total assets and ~28% to total operating income as of 1H 2019
• Key product offering includes trade finance, contracting finance, 1.5% project finance, investment banking, corporate advisory, cash management and Islamic financing 10.4% 1,319 1,361 1,359 • Operates via expertise-led coverage model catering to contracting finance, government, MNCs, real estate, trading 778 859 companies, NBFIs and emerging corporates in the UAE (including Dubai, Northern Emirates & Abu Dhabi)
• The corporate Finance team has retained its position amongst 2016 2017 2018 1H 2018* 1H 2019* the premier institutions for debt capital raising in the region ‒ Mashreq was amongst the top-5 loan Bookrunners in the Segment Assets (AED million) GCC, as per Bloomberg
• Mashreq’s Global Transaction Services (GTS) team maintained its regional dominance in transaction banking space by winning 8 4.2% awards in 2018 for trade finance, factoring and cash management 44,062 45,926 • Introduced Origination and Business Development team in FY 2018, supporting new business to the Bank 30,911 32,798
• Mashreq was also the 1st bank to go live in the region with SWIFT’s Global Payment Initiative
• GTS won innovators award 2017 by Global Finance for providing 2016 2017 2018* 1H 2019* card less cash to its corporate clients, a first in the region * From 2019 onw ards, management has decided to merge its Islamic Banking business w ith its other segments. Accordingly, segmental operating income (for 1H 2018 and 1H 2019) and segmental assets (for 2018 and 1H 2019) have been restated 20 PERFORMANCE BY DIVISION Business Review – Domestic Retail
Business Highlights Operating Income (AED million)
• Domestic Retail contributed ~11% to total assets and ~27% to total operating income as of 1H 2019 • Product offerings include current, savings & fixed deposits, investment products, personal loans, auto loans, small business (4.2%) loans, mortgages, credit cards, bank assurance, private banking, wealth management and Islamic financing 1,684 (6.2%) • Currently operates 35k POS machines spread across 14k 1,530 1,546 merchant locations in the UAE ‒ 2nd largest merchant acquirer in the UAE with ~30% market 871 817 share • Select focus on fee based business including account management, forex and remittances among others, while unsecured lending has been ceased in the SME segment 2016 2017 2018 1H 2018* 1H 2019* • Key innovations include: ‒ 1st bank to integrate Apple’s Siri for voice-powered Segment Assets (AED million) payments ‒ 1st bank in the region to have early access to Samsung Pay - a secure mobile payment service that works as a contactless credit or debit card (0.4%) ‒ POS Plus - UAE’s first ever handheld payment acceptance device with built-in digital product catalogue (customers can see a merchant’s entire product line and variants on a 15,333 15,275 digital tablet) 13,579 13,487 ‒ Launched Mashreq NEO, a full-service digital bank to cater to the day-to-day needs of a world on the move • Key awards include: Best Smart Retail Bank – Middle East 2018, Best Call Centre – Insights Middle East Call Centre Awards, Islamic Banking & Finance Awards 2018 – Innovation in Islamic Banking 2016 2017 2018* 1H 2019*
* From 2019 onw ards, management has decided to merge its Islamic Banking business w ith its other segments. Accordingly, segmental operating income (for 1H 2018 and 1H 2019) and segmental assets (for 2018 and 1H 2019) have been restated 21 PERFORMANCE BY DIVISION Business Review – International Banking
Business Highlights Operating Income (AED million)
• International Banking contributed ~25% to total assets and ~21% to total operating income as of 1H 2019
• The decline in operating income in 2017 was primarily the result (10.6%) of devaluation adjustment impact in Egypt, while the fall in 2018 was the result of slowdown of business in Qatar 1,463 (0.8%) 1,241 1,169 • International Banking business covers Financial Institutions (FI) services globally and also offers Corporate and Retail Banking 640 635 services to customer segments in Bahrain, Egypt, Kuwait, Qatar and India
• The Bank was mandated lead arranger in important loan 2016 2017 2018 1H 2018* 1H 2019* syndications in overseas markets Segment Assets (AED million) • Introduced key sales management systems and processes like Client Relationship Management and Automated Account Planning (7.6%) • In key African countries, the Bank assisted in raising funds for the top banks and development FIs and continued to be the 36,906 leading Middle Eastern bank in the FI business 34,107 32,505 31,141 • During the year, a new corporate banking strategy for India was rolled out, which shows a promising start with a healthy pipeline ‒ In addition, an OBU unit was established in Bahrain
2016 2017 2018* 1H 2019*
* From 2019 onw ards, management has decided to merge its Islamic Banking business w ith its other segments. Accordingly, segmental operating income (for 1H 2018 and 1H 2019) and segmental assets (for 2018 and 1H 2019) have been restated 22 PERFORMANCE BY DIVISION Business Review – Treasury and Capital Markets
Business Highlights Operating Income (AED million)
• Treasury and Capital Markets contributed ~13% to total assets and ~9% to total operating income as of 1H 2019
• Operating income in 2018 broadly remained stable compared to 3.3% 2017, driven by investments and FX
• Treasury and Capital Markets business consists of customer flow (32.3%) 616 602 business and proprietary business 564 396 ‒ Customer flow business includes transactions for FX, 268 derivatives, hedging, investment products, equities and regional asset management undertaken on behalf of customers 2016 2017 2018 1H 2018* 1H 2019* ‒ Proprietary business includes trading and investing activity undertaken on behalf of the Bank Segment Assets (AED million) • The Rates & Structured Solutions business closed several large ticket hedging transactions for clients across the region, including a structured profit rate swap for a real estate loan (14.1%) • Treasury product suite grew across asset classes, supported by an online trading platform and 24 hour dealing room
• Makaseb Income Fund won Thomson Reuters Lipper Fund 19,988 17,004 17,585 17,166 award for Best Fund Performance over 5 Years 2010
• Global Finance award for the best Treasury and Cash Management in the UAE
• EMEA Finance – Best Treasury Services in the Middle East 2016 2017 2018* 1H 2019*
* From 2019 onw ards, management has decided to merge its Islamic Banking business w ith its other segments. Accordingly, segmental operating income (for 1H 2018 and 1H 2019) and segmental assets (for 2018 and 1H 2019) have been restated 23 PERFORMANCE BY DIVISION Business highlights – Insurance Business (Oman Insurance Company)
Business Highlights Net Profit (AEDm)
. Oman Insurance Company contributes c. 3% to total assets and 9% to total operating income (as of 1H 2019) 75.4% . Mashreq owns 63.9% of Oman Insurance Company
. Oman Insurance Company (OIC) is the largest insurance company in the UAE 105 106 products offered include life, medical, motor, marine cargo and hull, aviation, 81 79 property, fire and general accidents, engineering, energy, liabilities and personal 60 lines insurance 10 . Largest distribution network in the UAE; OIC has 12 branches, with operations across all Emirates in the UAE, the Sultanate of Oman, Qatar and Turkey 2015 2016 2017 2018 1H'18 1H'19 . The company is rated ‘A-’ Stable Outlook by Standard & Poor’s and ‘A Excellent’ Stable Outlook by AM Best, supported by leading multinational reinsurers such as Everest Re, XL Re and Scor Gross Written Premium (AEDm) . Oman Insurance Company continued its digital focus and now offers online sales and service capability through web portals and mobile apps for its Motor and Medical lines 3,555 3,718 3,699 . In 2018, in addition to substantially increasing its free cash flow, OIC 3,190 Management took proactive measures to strengthen its balance sheet, bolster its claim reserving and implement forward looking IFRS 9 provisioning. These actions have generated additional reserves and have impacted OIC’s earnings 2,044
. 1H’19 exceptional achievements to ensure long term sustainable profitability: ̶ Local solvency has been again improved from 174% to above 230% ̶ Normalized net underwriting income increased by 3.3% ̶ Expense ratio went down from 21.7% to 21.4% ̶ Net receivables dropped by more than 50% 2015 2016 2017 2018 1H'19 ̶ More than AED 220m of free cash flow generated over 1H’2019 . 85% of clients are Satisfied or Very Satisfied with OIC’s services
24 STRUCTURE AND LEADERSHIP Profile of Senior Management
Abdul-Aziz Abdullah Al-Ghurair Chief Executiv e Officer • A Graduate of Calif ornia Poly technic State University, H.E. Abdul-Aziz Al- Ghurair joined Mashreq, then Bank of Oman, in 1977 • He worked in dif f erent Divisions and through rigorous training in v arious assignments climbed to his current position as of March 1991
Ali Raza Khan Ahmed Abdelaal Head of Corporate Affairs Head of Corporate Banking Group • Ali Raza Khan is a Member of the Institute of Chartered Accountants of India • Ahmed Abdelaal is an MBA from the London Business School (1978) • Joined Mashreq from HSBC where he was the Regional Head of Corporate Clients • Joined Mashreq in 1980; as Head of Corporate Affairs, he is responsible for Covering MENAT and Head of Commercial Banking UAE Finance, HR and Administrative functions in the Bank • Prior to this, he has experience at senior positions at ABN Amro, American Express and Arab Bank
Subroto Som Jan-Willem Sudmann Head of Retail Banking Group Head of International Banking Group • Subroto Som is a graduate of IIT Delhi and has an MBA from IIM Ahmedabad • Jan-Willem Sudmann has a Masters in Economics from the University of Hamburg, Germany • Joined Mashreq in 2015 from the Boston Consulting Group • Joined Mashreq in 2015; prior to joining Mashreq he was Managing Director at Commerzbank • Prior to this, he has experience at senior positions at Citibank, Standard Shanghai Chartered & Seoul First Bank • Before joining Commerzbank, he worked for close to two decades at Dresdner Bank across various geographies such as Germany, UK and Egypt
Hammad Naqvi Anuratna Chadha Head of Treasury & Capital Markets Head of Risk Management Group • Mr. Hammad Naqvi has an MBA from the IBA, University of Karachi • Anuratna Chadha is an MBA from Indian Institute of Management, Ahmedabad and holds • Prior to joining Mashreq in 1996, he was Head of Treasury with Bank of America, Bachelor’s Degree in Commerce from Shri Ram College of Commerce, Delhi Pakistan and he was also posted as Treasurer of Bank of America, Poland • Joined Mashreq in 2019 and has over 30 years’ banking experience in risk management, • He has also spent 2 years in the merchant banking division of ANZ Grindlays in wholesale and corporate banking across Singapore, Japan, India and South Africa Pakistan
Roy Philip Sebastian Nasser A. Paracha Head of Credit Risk Management Head of Internal Audit Group • Roy Philip Sebastian holds Master’s Degree in Commerce and is a Certified • Nasser A. Paracha has a BSc from the University of Leeds. He completed a Associate of Indian Institute of Bankers (CAIIB) General Management Program from HBS • Joined Mashreq in 2019 and has over 30 years’ experience across both corporate • Joined Mashreq in 1995 from Deutsche Bank AG in Pakistan banking and credit risk management • Overall banking experience of approximatel y 25 years, covering corporate banking, • He has spent over 21 years in HSBC Group in the Middle East, with last position internal audit and compliance held as Regional Head of Credit Approval, Wholesale Credit MENAT Rajesh Verma Sandeep Chouhan Head of Compliance Group Head of Operations and Technology • Rajesh Verma holds Masters in Economics and is also a Certified • Sandeep Chouhan has a Masters in Technology, Management & Systems Compliance Officer with qualifications in Compliance & Financial Crime from IIT, Delhi, India • Joined Mashreq in 2007 and has over 27 years of experience across all three • Joined Mashreq in 2015 from CBQ, Qatar lines of defense – Corporate Banking, Audit and now Compliance • Prior to this, he was CIO with Barclays and Morgan Stanley
25 UAE economy
Mashreq heritage
Structure and Leadership
Mashreq Strategy Investor Presentation Financial track record Trading history, rating and dividends
Corporate governance
Accolades
26 STRATEGIC OBJECTIVES Well Defined Strategic Objectives…
Build long-term relationships by: “To be the region’s most . Delivering superior service to clients progressive bank enabling . Actively contributing to the community through responsible banking innovative possibilities Vision . Leading with innovation Mission for our clients, colleagues . Treating colleagues with dignity and fairness and communities” . Pursuing opportunities that grow shareholders’ value
G ain New Clients
R egulatory Compliance
O perational Excellence
Wisely Take Risk
Strategic Objectives T echnology & Innovation
H appier Employees
27 BUSINESS OBJECTIVES …Supported by Clearly Laid Down Business Objectives
. Support franchise client needs . Win new customers and increase customer . Optimize liability mix to lower cost of funds internationally and international client needs penetration through a differentiated and enhance margins customer centric, service oriented approach in our franchise by providing solutions to corporate clients across network and focus on continued product innovation . Deploy liquid assets into higher yielding . Provide cross border accessibility to clients, opportunities . Leverage balance sheet strength and such as offshore booking location for private liquidity position to grow market share and gold customers and non-resident . Capitalize on leadership position in fee- proposition across the network generating businesses . Maintain momentum in core target markets
. Reduce charge-to-loans ratio through . Leverage existing infrastructure to drive continued focus on portfolio and asset growth and returns quality . Significantly improve efficiencies across the . Selective portfolio / asset sales as part of an bank to bring cost/income ratio in line with ongoing portfolio balancing strategy market
Business objectives are strongly integrated with the long-term strategic direction of Mashreq 28 DIVERSIFICATION Diversified earnings base with strong growth potential
Gross Loans portfolio split as of (AED 74.9 bn) Business segments outlook June 2019 ▪ UAE Retail: Pick up in mortgage business; strong growth in cards Manufacturing and payment business and wealth management 7.5% 9.8% Construction ▪ UAE Corporate: Strong growth from trade, manufacturing, tourism and logistics driving overall UAE GDP in the coming Trade years leading to increased demand for credit & trade services 21.5% 17.6% Transport & Comm. ▪ International Banking: Tap and strengthen Regional market Services footprint to assist local corporations operating regionally Financial institutions ▪ Insurance: As the largest insurance company in the UAE, 2.7% Personal Mashreq’s Oman Insurance Company (OIC) subsidiary is 17.8% Govt/GRE expected to grow in line with the market 17.5% ▪ Treasury: Build on the market leading menu of TCM products 5.5% including hedging and FX products and increase cross-sell
Revenue split 1H 2019 (AED 3.1 bn) Asset split as of June 2019 (AED 139.9 bn)
8.0% Domestic Corporate 10.1% 9.0% Loans & Advances 28.0% Domestic Retail 9.6% Treasury & Cash and balances with CB Capital markets Interbank deposits & balances 49.5% 21.0% International 16.4% Financial Investments Insurance Other assets Others 27.0% 9.0% 14.4%
29 INNOVATION Strategic Advantage through Product and Service Innovation
Mashreq was the first bank in the UAE to:
Introduce consumer loans Introduce a comprehensive corporate Integrate Emirates ID with bank account cash management solution offering and allow its usage as a Debit Card (GTS)
Introduce “Branch of the future – self Introduce “Tap & Go”, mobile NFC service autonomous branches” sticker payment method
Centralize branch operations and Introduce Point-of-Sale terminals foreign trade services
Innovation Issue debit/credit cards Offer a direct banking centre
Offer Visa Connectivity across the Install ATM cash dispensers world
Launch full service digital bank “Mashreq Launch UAE’s first fully EMV Chip & PIN Neo“ compliant mobile POS solution
30 UAE economy
Mashreq heritage
Structure and Leadership
Mashreq Strategy Investor Presentation Financial track record Trading history, rating and dividends
Corporate governance
Accolades
31 FINANCIAL TRACK RECORD Robust performance over the past decade
Net profit (AED million)
+8%
2,401 2,402 2,052 2,060 1,806 1,926 1,312 1,222 1,000 803 820
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H 2019
Net loans and advances (AED billion)
71 +4% 69 63 58 60 61 48 50 41 41 38
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jun-19
32 FINANCIAL TRACK RECORD Steady performance over the last four years
Loans & Advances (AED billion) Customer deposits (AED billion)
4% 2% 69.3 70.7 62.7 83.2 58.0 60.2 61.0 77.0 76.1 77.6 68.5 73.6
2014 2015 2016 2017 2018 Jun-19 2014 2015 2016 2017 2018 Jun-19
Total Revenue (AED million) Net profit (AED million)
Fee and other income Net interest income1) -4% 2,401 2,402 0% 1,926 2,052 2,060 1,222 5,845 5,978 6,169 6,016 5,938
2,720 2,555 2,602 2,437 2,295 3,074 1,224 2014 2015 2016 2017 2018 1H’19 3,125 3,423 3,567 3,579 3,643 1,850 ROE 15.7% 14.2% 10.6% 10.5% 10.2% 12.0% 2014 2015 2016 2017 2018 1H’19
1 NII component booked under net investment income as per IFRS, reclassified under NII 33 Key financial ratios
30 Jun 2019 31 Dec 2018 30 Jun 2018
Capital adequacy
Tier I Capital Ratio 15.0% 15.3% 15.9%
Total Capital Ratio 16.2% 16.5% 17.0% Liquidity
Liquid Assets to Total Assets1) 29.1% 33.2% 27.3%
Advances to Deposits 91.1% 83.2% 87.0%
Liquidity Coverage Ratio (LCR) 133% 159% 137% Asset quality
NPL Coverage Ratio 128.0% 137.2% 179.1%
NPL to Gross Advances 3.5% 3.1% 2.9% Performance
ROA 1.8% 1.6% 1.8%
ROE 12.0% 10.2% 11.7%
Net Interest Margin 3.16% 3.24% 3.47%
Efficiency Ratio 42.8% 44.1% 42.2%
Fee and other income to total income 39.8% 38.7% 40.3% 34 Note: 1) Total Assets excludes contra items FINANCIAL TRACK RECORD Well-funded balance sheet …
Operating leverage (%) Liability by type as of June 2019
Loan to Deposits 12.8% (AED 115.0 bn)
91.1% Other Liabilities 84.8% 9.5% 81.7% 79.2% 82.5% 83.2% Med. Term FRN 1.6% Insurance Funds Due to Banks 8.7% Customer deposits 67.5%
2014 2015 2016 2017 2018 1H-19
Liquidity (%) Liability segment split as of June 2019 Liquid Assets to Total Assets (AED 115.0 bn) 10.2% 33.2% 2.3% 29.9% 30.4% Domestic Corporate 27.7% 29.6% 29.2% 33.6% Domestic Retail 17.8% Treasury & Capital markets International Insurance 15.4% Others 2014 2015 2016 2017 2018 Jun-19 20.5%
35 FINANCIAL TRACK RECORD …along with stable adequacy
Risk weighted assets (AED million) Tier 1 and Tier 2 capital (AED million) Tier 1 capital Tier 2 capital 134,362 126,545 21,713 20,042 20,993 20,819 113,514 118,874 117,969 19,179 1,513 17,726 1,377 1,422 106,628 1,178 1,077 1,450
18,965 19,616 19,397 20,200 16,277 18,001
2014 2015 2016 2017 2018 Jun-19 2014 2015 2016 2017 2018 Jun-19
Capital adequacy (%)
17.2% Tier I Capital ratio 16.6% 16.9% 16.0% 16.9% 16.0% 16.5% 16.2% 15.3% 15.9% 15.3% 15.0% Total Capital ratio
2014 2015 2016 2017 2018 Jun-19
36 Market performance in 1H ‘19
Total assets (AED bn) Total loans (AED bn) Peer group1) Mashreq Peer group1) Mashreq
DXB AUH DXB AUH
2,283 991 1,293 140 1,319 626 694 69 Dec’18 Dec’18
+3.1% 4.8% 1.8% -2.5% +2.0% 3.4% 0.7% +2.1%
2,355 1,038 1,317 Jun’19 136 1,345 647 698 Jun’19 71
Total deposits (AED bn) Total revenue (AED bn) Peer group1) Mashreq Peer group1) Mashreq
DXB AUH DXB AUH
1,525 674 851 Dec’18 83 39.9 20.3 19.6 Jun’18 3.1
+0.3% 3.2% (1.9%) -6.7% +7.0% 13.6% 0.2% -1.0%
Jun’19 Jun’19 1,530 695 835 78 42.7 23.1 19.6 3.1
1) Dubai Banks: ENBD, CBD, DIB & RAK; Abu Dhabi Banks: FAB, ADCB, & ADIB; ADCB is based on Pro Forma financials Source: Banks’ f inancial statements 37 GROWTH - Mashreq YTD June 2019 performance compared to peer group1) [AED billion]
Bank Total assets Total loans (net) Total deposits
Growth vs Growth vs Growth vs Dec '18 Dec '18 Dec '18
FAB 775 4% 366 4% 462 (1%)
ENBD 538 7% 338 3% 367 5%
ADCB 417 (2%) 251 (4%) 273 (4%)
DIB 228 2% 150 4% 157 1%
Mashreq 136 (3%) 71 2% 78 (7%)
ADIB 125 0% 81 2% 100 (1%)
55 8% CBD 78 6% 55 4%
RAK 57 9% 34 2% 39 14%
1) Total grow th over the period and not CAGR; ADCB numbers are based on Pro Forma financials 38 Source: Banks’ financial statements GROWTH - Mashreq 1H ’19 performance compared to peer group1) [AED billion]
Bank Revenue Net interest income Fee & other income
YoY YoY YoY growth growth growth
FAB 10.1 3% 6.4 (1%) 3.7 12%
ENBD 9.5 13% 6.9 10% 2.7 20%
DIB 7.0 25% 3.1 9% 3.9 42%
ADCB 5.2 (6%) 4.0 (6%) 1.2 (6%)
Mashreq 3.1 (1%) 1.9 0% 1.2 (2%)
ADIB 2.9 6% 1.9 2% 1.0 14%
RAK 2.0 7% 1.4 2% 0.6 21%
CBD 1.5 14% 1.0 7% 0.5 31%
Wt Avg 7.7% 2.3% 19.5% Growth2)
1) Total grow th over the period and not CAGR; ADCB numbers are based on Pro Forma financials 2) Grow th excludes Mashreq 39 Source: Banks’ financial statements PROFITABILITY - Mashreq 1H '19 performance compared to peer group [AED bn, %]
ROE1) [%] Bank Net profit [AED billion] 25.0 18.8 16.8 15.4 15.0 13.3 YoY 12.0 11.3 Ø 16
growth
DIB
FAB
CBD RAK
ENBD 49% ADIB ADCB
7.5 ENBD MASQ
FAB 4% 6.3 ROA2) [%]
ADCB 2.8 (15%) 2.8 2.3 2.0 1.8 1.8 1.8 1.6 1.3 Ø 1.9
DIB 2.7 14%
DIB
FAB
CBD RAK
1.2 6% ADIB ADCB
ADIB ENBD MASQ
Mashreq 1.2 5% Return on RWA [%]
0.7 25% CBD 5.0 2.8 2.6 2.4 2.2 2.1 2.0 RAK 0.6 29% Ø 2.7
NA
DIB
FAB
CBD
RAK
ADIB
ENBD ADCB MASQ
Source: Banks’ financial statements 1) Equity excludes tier 1 capital notes and their interest expense is deducted from net profits (minority is included) 40 2) Total net profits (including minority) after Tier 1 interest expense divided by total assets minus tier 1 notes UAE economy
Mashreq heritage
Structure and Leadership
Mashreq Strategy Investor Presentation Financial track record Trading history, rating and dividends
Corporate governance
Accolades
41 TRADING HISTORY Trading performance over the last 1 year
Mashreq’s trading price (September 2018 – September 2019) Share details Share performance Currency AED Mashreq – 12 months +9.8% Par value/ share 10 DFM GI – 12 months -2.9% Number of shares (Mn) 177.5 P/E (1 Sep ’19) 6.1x Market Cap (1st Sep ’19) (Mn) 12,960 P/B (1 Sep ’19) 0.6x Mashreq DFM 80 3,000 70 2,500 60 2,000 50 40 1,500 30 1,000 20 500 10 Mashreq DFM General Index 0 0 Sep’18 Aug’19
Source: DFM / Bloomberg 42 DIVIDENDS Progressive dividend policy based on solid performance
Net profit and Cash Payout (AED million) and Cash dividend (%)
Net profit Cash payout Cash dividend (%) 40% 40% 40% 40% 40%
2,500 2,401 2,402 2,052 2,060 2,000 1,806 1,926 1,500
1,000 676 676 710 710 710 710 500
0 1) 2013 2014 2015 2016 2017 2018 Dividend Payout 29.56 36.86 Ratio (%) 37.43 28.15 34.60 34.46
EPS 10.68 13.53 13.53 10.56 11.56 11.60 (AED)
BVPS 85.45 91.04 100.09 105.66 119.00 116.97 (AED)
1 Plus 5% Bonus Shares 43 CREDIT RATING Rated by four rating agencies
Rating Agency Long term Short term
A F1
A- A-2
Baa1 P-2
A A1
44 UAE economy
Mashreq heritage
Structure and Leadership
Mashreq Strategy Investor Presentation Financial track record Trading history, rating and dividends
Corporate governance
Accolades
45 CORPORATE GOVERNANCE Mashreq is regulated by the UAE Central bank and follows international banking standards
Supervisory Authority ▪ Mashreq’s home supervisory authority is the UAE Central Bank which is responsible for licensing, monitoring and supervising banks, finance companies and exchange companies in the UAE ▪ Internationally, Mashreq comes under the purview of respective country regulators such as the Federal Reserve and NYSDFS in the USA and Prudential Regulation Authority & Financial Conduct Authority in the UK
Basel II and III Accounting Standard ▪ Banks are expected to follow the Standardized Approach for both ▪ The Central Bank made it mandatory in 2000 for all Banks to credit and operational risks publish their Annual Financial Statement as per International ▪ UAE CB has rolled out Capital Adequacy Ratio (CAR) as per Financial Reporting Standards (IFRS) Basel III effective 1st Jan 2018 ▪ IFRS 9 has been implemented w.e.f 1st Jan 2018
Bank monitoring - liquidity Credit Limit
▪ Cash reserve ratio requirements (1% on Time Deposits and 14% ▪ Lending limits fixed by the Central Bank in relation to capital: on Demand Savings and Call deposits) – Commercial entities of Federal Govts and UAE Local Govts: ▪ Maintenance of 1:1 ratio is mandatory, i.e. utilization of funds 25%, 100% aggregate should not exceed stable sources – UAE Local Govts and non-Commercial entities: 25% ▪ As per Basel III, liquidity coverage ratio (LCR) and net stable Individual, 100% aggregate funding ratio (NSFR) have been implemented and submitted to – Principal shareholders and their related entities: 20% Central Bank of UAE periodically Individual, 50% aggregate
46 CORPORATE GOVERNANCE Robust Corporate Governance Framework
Chairman, Vice-Chairman and five Directors form Mashreq’s Board. Two of the seven board members are independent Board CEO is the only executive director Supervision The Board of Directors meet at least once every quarter Management issues are raised at Board level where the bank’s senior management presents details to the Board Board has delegated certain powers to CEO for effective day-to-day management
Remuneration Committee Audit Committee Risk Committee
Management Supervision
Executive Management Committee (reporting to the CEO) discusses and debates bank-wide issues, develops strategic plans for the Board’s approval and takes decisions on pan-bank issues
Executive Management Committee
Regulatory Information Human Risk Investment ALCO Compliance Security Resources Committee Committee Committee Committee Committee Committee
47 UAE economy
Mashreq heritage
Structure and Leadership
Mashreq Strategy Investor Presentation Financial track record Trading history, rating and dividends
Corporate governance
Accolades
48 ACCOLADES Key Awards
Gallup Great Workplace Award 2018, 2017, 2016, Daman Corporate Health Awards 2015, 2014 ▪ CSR EMPLOYEE ENGAGEMENT OF THE CSR Label – Dubai Chambers – 2018, YEAR 2017,2016, 2015, 2014, 2013, 2012 & 2011 Gulf Business Awards Banker ME Awards ▪ Business Leader of the Year – Banking ▪ Best Credit Card - Smartsaver Global Industry (H.E. AbdulAziz Al Ghurair) ▪ Best Savings Product- Mashreq Millionaire Retail Banking Conference & Awards: London ▪ Best Premium Credit Card- Solitaire ▪ Middle East Retail Bank of the Year ▪ Best Customer Loyalty Program- Salaam Rewards Global Banking & Finance Review Awards Global Finance 2019, 2018 2018 ▪ Digital Bank of Distinction - UAE ▪ Best Mobile Banking Application UAE ▪ Best Mobile Banking App – Middle East ▪ Best Retail Bank UAE ▪ Best Online Deposit, Credit and Investment Product Offerings – Middle East ▪ Best Bank for Factoring UAE ▪ Best SMS/Text Banking – Middle East ▪ Mashreq Al Islami - Most Innovative Islamic Banking Solutions Provider UAE Banker ME Industry Awards ▪ Best Regional Retail Bank 2016, 2015, 2014 IDC FinTech Real Results award ▪ Best Retail Bank in the Middle East • Digital Trust & Stewardship category - “Mashreq ▪ Best Digital Bank in the UAE BOT's Servicing Dubai Police with Virtusa” Euromoney Islamic Banking & Finance Awards 2018 ▪ Best Digital Bank in the Middle East • Innovation in Islamic Banking – Mashreq Al Islami World Finance 2019, 2018 FinX awards 2018 ▪ Best Digital Bank - 2018 - UAE • Best Digital Bank MENA ▪ Best Mobile Banking Application - 2018 – UAE EMEA Finance’s Treasury Services Awards ▪ Best Consumer Digital Bank - 2019 - UAE ▪ Best Mobile Banking App - 2019 - UAE • Best Cash Management Services in the Middle East • Best Factoring Services in the Middle East • Best Payment Services in the Middle East • Best Treasury Services in the Middle East 49 2Q 2019 financials – Consolidated Income statement [AED million]
Income statement 2019 2019 2018 Variance (% change)
2Q 2019 vs 1Q 2019 2Q 2019 vs 2Q 2018 2Q 1Q 2Q (Q-o-Q) (Y-o-Y)
Net interest income 913 936 945 (2.4) (3.3)
Net Fees and commission 349 361 383 (3.2) (8.8)
Net Investment income 7 48 5 (86.0) 32.2
Other income 235 225 254 4.7 (7.3)
Total operating income 1,505 1,569 1,586 (4.1) (5.2)
Operating expenses (665) (651) (718) 2.1 (7.3)
Operating profit 840 918 869 (8.6) (3.4)
Impairment allowance (221) (261) (287) (15.5) (23.1)
Tax expense (6) (8) (7) (24.1) (18.1)
Non-Controlling Interest (20) (21) (11) (7.2) 71.8
Net Profit 593 628 563 (5.5) 5.4
50 June 2019 financials – Consolidated Balance sheet [AED million]
Balance sheet 30 Jun 2019 31 Dec 2018 YTD (% ) Assets Cash and balances with central banks 14,901 20,148 (26%) Deposits and balances due from banks 22,202 23,009 (4%) Other financial assets measured at fair value 2,795 1,738 61% Other financial assets measured at amortised cost 11,599 11,681 (1%) Investment in Associates 29 - - Loans and advances measured at amortised cost 56,517 56,353 0% Islamic financing and investment products measured at 14,207 12,916 10% amortised cost Acceptances 9,313 9,782 (5%) Other Assets 2,663 2,332 14% Investment properties 490 490 0% Property and equipment 1,712 1,482 16% Total Assets 136,428 139,932 (3%) Liabilities Deposits and balances due to banks 9,408 9,060 4% Repurchase agreements with banks 582 2,117 (73%) Customers’ deposits 69,747 72,522 (4%) Islamic customers’ deposits 7,863 10,697 (26%) Acceptances 9,313 9,782 (5%) Other Liabilities 5,444 5,267 3% Medium-term loans 10,879 8,185 33% Insurance and life assurance funds 1,797 1,536 17% Total Liabilities 115,032 119,166 (3%) Total Equity 21,396 20,766 3% Total Liabilities and Equity 136,428 139,932 (3%) 51 FY 2018 financials – Consolidated Income statement [AED million]
Income statement 2018 2017 Variance (% change)
FY 2018 vs FY 2017 FY FY (Y-o-Y)
Net interest income 3,643 3,579 2
Net Fees and commission 1,413 1,558 (9)
Investment income / (loss) 27 107 (75)
Other income 855 772 11
Total operating income 5,938 6,016 (1)
Operating expenses (2,618) (2,361) 11
Operating profit 3,320 3,655 (9)
Impairment allowance (1,230) (1,488) (17)
Overseas tax expense (25) (78) (68)
Non-Controlling Interest (5) (37) (87)
Net Profit 2,060 2,052 0
52 December 2018 financials – Consolidated Balance sheet [AED million]
Balance sheet 31 Dec 2018 31 Dec 2017 YTD (% ) Assets Cash and balances with central banks 20,148 16,899 19.2% Deposits and balances due from banks 23,009 20,135 14.3% Other financial assets measured at fair value 1,738 1,581 9.9% Other financial assets measured at amortised cost 11,681 12,583 (7.2%) Loans and advances measured at amortised cost 56,353 53,394 5.5% Islamic financing and investment products measured at amortised cost 12,916 9,339 38.3% Other assets 2,332 3,016 (22.7%) Acceptances 9,782 6,380 53.3% Investment properties 490 518 (5.4%) Property and equipment 1,482 1,343 10.3% Total Assets 139,932 125,188 11.8% Liabilities Deposits and balances due to banks 9,060 9,313 (2.7%) Repurchase agreements with banks 2,117 557 279.9% Customers’ deposits 72,522 69,380 4.5% Islamic customers’ deposits 10,697 6,681 60.1% Other liabilities 5,267 3,942 33.6% Acceptances 9,782 6,380 53.3% Medium-term loans 8,185 6,226 31.5% Insurance and life assurance funds 1,536 1,583 (2.9%) Total Equity 20,766 21,126 (1.7%)
Total Liabilities and Equity 139,932 125,188 11.8% 53 54