Abu Dhabi Commercial Bank PJSC Review report and condensed consolidated interim financial information for the six month period ended June 30, 2020 1 Table of contents Report on review of condensed consolidated interim financial information................................................................................................................................ 3 Condensed consolidated interim statement of financial position ................................................................................................................................................... 4 Condensed consolidated interim income statement (unaudited) ................................................................................................................................................... 5 Condensed consolidated interim statement of comprehensive income (unaudited) ........................................................................................................... 6 Condensed consolidated interim statement of changes in equity (unaudited)........................................................................................................................ 7 Condensed consolidated interim statement of cash flows (unaudited) ....................................................................................................................................... 8 Notes to the condensed consolidated interim financial information 1. General information ..................................................................................................................................................................................................................................... 10 2. Summary of significant accounting policies .................................................................................................................................................................................... 10 2.1 Basis of preparation ................................................................................................................................................................................................................................ 10 2.2 Application of new and revised International Financial Reporting Standards (IFRSs) ......................................................................................... 11 2.3 Basis of consolidation ............................................................................................................................................................................................................................. 13 2.4 Business combination under common control .......................................................................................................................................................................... 16 2.5 Changes in accounting policies on adoption of IFRS 9 – Hedge Accounting ............................................................................................................... 18 3. Critical accounting judgements and key sources of estimation uncertainty ................................................................................................................. 22 4. Coronavirus (Covid-19) outbreak and its impact on ADCB Group ..................................................................................................................................... 23 5. Cash and balances with central banks, net ...................................................................................................................................................................................... 31 6. Deposits and balances due from banks, net .................................................................................................................................................................................... 31 7. Derivative financial instruments ........................................................................................................................................................................................................... 32 8. Investment securities .................................................................................................................................................................................................................................. 33 9. Loans and advances to customers, net ............................................................................................................................................................................................... 34 10. Impairment allowances .............................................................................................................................................................................................................................. 36 11. Investment properties................................................................................................................................................................................................................................. 37 12. Other assets, net ............................................................................................................................................................................................................................................. 37 13. Due to banks ..................................................................................................................................................................................................................................................... 38 14. Deposits from customers ........................................................................................................................................................................................................................... 38 15. Euro commercial paper .............................................................................................................................................................................................................................. 39 16. Borrowings ........................................................................................................................................................................................................................................................ 40 17. Other liabilities................................................................................................................................................................................................................................................ 43 18. Share capital ..................................................................................................................................................................................................................................................... 43 19. Other reserves (unaudited) ...................................................................................................................................................................................................................... 44 20. Capital notes ..................................................................................................................................................................................................................................................... 46 21. Interest income (unaudited) .................................................................................................................................................................................................................... 46 22. Interest expense (unaudited) .................................................................................................................................................................................................................. 46 23. Net fees and commission income (unaudited) ............................................................................................................................................................................... 47 24. Net trading income (unaudited) ............................................................................................................................................................................................................ 47 25. Other operating income (unaudited) .................................................................................................................................................................................................. 47 26. Operating expenses (unaudited) ........................................................................................................................................................................................................... 47 27. Impairment allowances (unaudited) ................................................................................................................................................................................................... 48 28. Earnings per share (unaudited) ............................................................................................................................................................................................................. 48 29. Commitments and contingent liabilities ..........................................................................................................................................................................................