Consolidated balance sheet of all banks Al-Baraka Bank Sal Emirates Lebanon Bank Sal o.w. Bekaa 70 Al-Bilad Islamic Bank for Investment & Finance PSC Federal Bank of Lebanon Sal Overseas Banking Network 422 AM Bank Sal Fenicia Bank Sal Arab African International Bank FFA Private Bank Sal Remarks: Arab Bank Plc Finance Bank Sal Figures herein are based on the consolidated financial statements as Arab Bank (Switzerland) Lebanon Sal First National Bank Sal released by the banks including all their subsidiaries. Audi Investment Bank Sal Fransa Invest Bank Sal Audi Private Bank Sal Fransabank Sal B.L.C. Bank Sal HBL Habib Bank 1- The capital adequacy ratio was estimated on basis of 38 banks out Bank Audi Sal IBL Bank Sal of 46 in 2017 and 2016. Bank of Baghdad Private S.A. Co. IBL Investment Bank Sal 2- Arab African International Bank did not communicate its income Bank of Beirut Invest Sal Jammal Trust Bank Sal statement for both years. The consolidated figures does not include Bank of Beirut Sal Lebanese Swiss Bank Sal estimates. Bankmed Sal Lebanon and Gulf Bank Sal 3- Syrian Lebanese Commercial Bank Sal did not communicate its Banque Bemo Sal Libank Sal (Levant Investment Bank) figures in 2017, the consolidated figures include estimates. Banque de Crédit National Sal Lucid Investment Bank Sal 4- Arab Finance House Sal (Islamic Bank) and Lebanese Islamic Bank Banque de l’Habitat Sal MEAB Sal Sal were not included in our analyses because of the specific nature Banque Libano-Française Sal MedInvestment Bank Sal of the banks activity. Banque Misr Liban Sal National Bank of Kuwait (Lebanon) Sal 5- Bank Saderat Iran and Invest Bank P.S.C. did not communicate BBAC Sal North Africa Commercial Bank Sal their figures. BLOM Bank Sal Qatar National Bank S.A.Q. - Lebanon 6- In cases of mergers & acquisitions, subsidiary banks were BLOM Development Bank Sal Rafidain Bank consolidated with their mother bank’s groups. BLOMINVEST Bank Sal Saradar Bank Sal BSL Bank Sal Saudi Lebanese Bank Sal Byblos Bank Sal Société Générale de Banque au Liban Sal (SGBL) Byblos Invest Bank Sal Syrian Lebanese Commercial Bank Sal Cedrus Bank Sal Network: Cedrus Invest Bank Sal Lebanon Network 1,070 Citibank N.A. o.w. Beirut 490 Crédit Libanais Investment Bank Sal o.w. Mount Lebanon 288 Crédit Libanais Sal o.w. South Lebanon 116 Creditbank Sal o.w. North Lebanon 106 CSCBank Sal Summary of performance highlights Network and staff 2015 2016 2017 Branches 1,483 1,426 1,411 o.w. Lebanon 1,056 1,067 1,077 Staff employed 36,053 35,818 35,697 o.w. Lebanon 25,952 26,778 27,572 Staff employed in banking entities 34,185 33,798 33,556 Growth (%) 2015 2016 2017 Assets 4.8 5.9 6.9 Loans to customers 5.6 2.0 2.3 Deposits from customers 4.5 3.6 3.3 Shareholders' equity 6.9 9.9 6.6 Total L/C openings of the year -21.0 5.8 14.5 Total income 6.5 31.5 -14.6 General operating expenses 4.0 15.8 -5.5 Net profits for the year 6.9 12.6 4.4 Management efficiency 2015 2016 2017 Average footings per branch (LL Billion) 280.285 296.606 321.236 Average footings per staff (LL Billion) 11.616 12.005 12.743 Average staff per branch 22.9 23.4 23.7 Cost per average branch (LL Billion) 3.304 3.856 3.738 Staff expenses per average staff (LL Billion) 0.076 0.081 0.080 Staff expenses to total operating expenses (%) 55.84 52.13 54.06 Cost to income (%) 50.33 44.30 49.06 Cost to average assets (%) 1.44 1.59 1.41 Total income per average staff (LL Billion) 0.272 0.352 0.302 Domestic market share (%) 2015 2016 2017 Assets 100.00 100.00 100.00 Loans to customers 100.00 100.00 100.00 Deposits from customers 100.00 100.00 100.00 Investment considerations 2015 2016 2017 Common shares outstanding (000) 5,241,824 3,982,643 3,986,401 Of which GDRs 253,044 257,200 257,248 Preferred shares outstanding (000) 66,638 78,388 59,238 Common earnings per share (LL) 535.59 788.68 847.66 Common book per share (LL) 4,599.41 6,560.42 7,161.59 Common dividends 918,874.887 1,162,545.259 1,310,624.048 Common dividends per share (LL) 175.30 291.90 328.77 Preferred dividends 350,938.714 380,775.590 377,329.100 Common payout ratio 30.96 34.63 37.18 Total payout ratio 38.26 41.29 43.25 ROAE to hurdle rate (times) 0.75 0.80 0.77 Breakdown of assets 2017 Breakdown of income 2017 Loans 29% Fixed assets Other income 2% 16% Other assets 2% Net commissions Portfolio securities 15% Net interest income 27% 69% Liquid assets 40% Consolidated balance sheet of all banks Balance sheet and contra accounts LL Million USD Million Structure (%) at year end 2016 2017 17/16 2016 2017 17/16 2016 2017 Assets 1. Cash and balances with Central Banks 96,344,471.131 124,080,503.284 28.8 63,910.097 82,308.792 28.8 26.5 31.9 2. Deposits with banks and financial institutions 20,863,893.834 22,836,320.289 9.5 13,840.062 15,148.471 9.5 5.7 5.9 3. Due from HO/Parent, sister, related banks & financial inst. 1,565,565.420 1,133,950.063 -27.6 1,038.518 752.206 -27.6 0.4 0.3 4. Loans to banks & fin. inst., reverse repurchase agreements 4,879,474.115 3,530,097.577 -27.7 3,236.799 2,341.690 -27.7 1.3 0.9 5. Financial assets given as collateral 1,528,687.081 2,888,846.225 89.0 1,014.054 1,916.316 89.0 0.4 0.7 6. Derivative financial instruments 461,795.737 439,740.532 -4.8 306.332 291.702 -4.8 0.1 0.1 7. Shares and participations at fair value through profit & loss 774,983.991 797,513.360 2.9 514.086 529.030 2.9 0.2 0.2 8. Bonds & other financial assets at fair value through P&L 6,585,054.653 5,845,720.383 -11.2 4,368.195 3,877.758 -11.2 1.8 1.5 Of which net advances & loans at fair value through P&L 21,898.000 47,658.000 117.6 14.526 31.614 117.6 0.0 0.0 9. Net loans and advances to customers at amortized cost 110,166,530.968 113,114,658.400 2.7 73,078.959 75,034.599 2.7 30.3 29.1 10. Net loans & advances to related parties at amortized cost 1,547,368.572 1,179,328.953 -23.8 1,026.447 782.308 -23.8 0.4 0.3 11. Debtors by acceptances 2,312,023.491 3,389,593.566 46.6 1,533.681 2,248.487 46.6 0.6 0.9 12. Debt instruments classified at amortized cost 105,742,194.846 96,133,723.743 -9.1 70,144.076 63,770.298 -9.1 29.1 24.7 13. Shares & participations at fair value through OCI 1,422,250.404 1,563,568.322 9.9 943.450 1,037.193 9.9 0.4 0.4 14. Debt instruments & other financial assets at FVTOCI - 1,391.000 - - 0.923 - - 0.0 15. Investments in associates 394,649.833 573,013.412 45.2 261.791 380.108 45.2 0.1 0.1 16. Assets taken in settlement of debt 1,368,370.138 1,559,844.212 14.0 907.708 1,034.723 14.0 0.4 0.4 17. Tangible fixed assets 4,698,155.452 4,981,028.866 6.0 3,116.521 3,304.165 6.0 1.3 1.3 18. Intangible fixed assets 228,669.969 253,647.327 10.9 151.688 168.257 10.9 0.1 0.1 19. Non current assets held for sale 535,162.943 1,974,267.407 268.9 355.000 1,309.630 268.9 0.1 0.5 20. Other assets 1,836,257.517 1,977,588.574 7.7 1,218.081 1,311.833 7.7 0.5 0.5 21. Goodwill 484,163.553 403,416.057 -16.7 321.170 267.606 -16.7 0.1 0.1 Total assets 363,739,723.648 388,657,761.553 6.9 241,286.716 257,816.094 6.9 100.0 100.0 Liabilities and shareholders' equity 1. Due to Central Banks 7,612,706.726 18,720,233.897 145.9 5,049.888 12,418.066 145.9 2.1 4.8 2. Due to banks & financial inst. & repurchase agreements 13,291,156.637 13,551,323.276 2.0 8,816.688 8,989.269 2.0 3.7 3.5 3. Due to HO/Parent, sister, related banks & financial inst. 1,525,036.811 2,270,069.550 48.9 1,011.633 1,505.850 48.9 0.4 0.6 4. Financial assets taken as a guarantee 342,400.266 326,985.289 -4.5 227.131 216.906 -4.5 0.1 0.1 5. Derivative financial instruments 328,152.692 254,242.402 -22.5 217.680 168.652 -22.5 0.1 0.1 6.