Investor Analyst Day 2016 28 November 2016

Vision and Five year plan Joseph Abraham Chief Executive Officer

Market and Context

Commercial Bank’s financial ratios have diverged Our first goal is to return to the market average

10.0%

14.2%

Source: Commercial Bank financial results September 2016, Market Qatar Banks December 2015

CET 1

13.6%

15.1%

Tier 1

15.7% 15.4%

Capital Adequacy Ratio

Return On Equity (ROE) Cost to Income Ratio Return On Assets (ROA)

3.6%

12.3%

EPS Price To Book NPL Ratio

CB Mkt. Average CB Mkt. Average CB Mkt. Average

45%

30.6%

0.5%

1.7%

CB Mkt. Average CB Mkt. Average CB Mkt. Average

CB Mkt. Average CB Mkt. Average CB Mkt. Average

5.3%

2.0%

0.9

1.6

1.4

5.5

Fiscal Breakeven Oil Price (US$) 2016F Govt. Fiscal Balance (% GDP – 2016F)

Source: International Monetary Fund, Middle East and Central Africa Regional Economic Outlook; International Monetary Fund, World Economic Outlook; World Economic Forum, The Global Competitiveness Report; Bloomberg, Qatar Central Bank; Gas futures USD/MMBtu, Brent Crude futures USD/bbl.

Qatar economic growth: The new norm

Govt. Current Expenditure Real Estate Prices

Oil & Gas Prices

Economic Growth Forecast (2017-18 F)

QCB Price Index 310

267

178

-

20

40

60

80

100

120

140

-

1

2

3

4

5

6

7

Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16

Natural Gas - Futures Brent Crude - Futures

52 52

67 72 73

95

Qatar Kuwait KSA UAE Oman Bahrain

-3.4% -4.9%

-11.4%

-13.6%

-15.5% -16.7%

Qatar UAE KSA Kuwait Bahrain Oman

43.5

56.2

68.9 68.4

24.8

55.6

3.4%

4.9% 4.6%

4.0%

3.3% 3.4% 3.4%

2.9%

2011A 2012A 2013A 2014A 2015A 2016F 2017F 2018F

Real GDP Growth

Commercial Bank: A solid franchise built on more than 40 years of innovation and customer service

Incorporated in 1974 as the first private bank in Qatar

The first Bank in Qatar to introduce: • ATM’s • Credit cards • POS machines • Personal & Vehicle Loans • Internet Banking services • Mall Pavilions/mini-branches

We were the first Qatari bank to: • Become a licensed broker on the Doha

Securities Market • List its shares (in the form of GDRs) on the

London Stock Exchange • List a bond issue on the SIX Swiss

Exchange • Be awarded the PCI Card Security

Certificate

Vision and Strategic Reshape

Vision: To be the ‘Best Bank in Qatar’ recognised for our Five C’s

Corporate Earnings Quality

Client Experience

Creativity and Innovation

Culture

Compliance

Sustainable quality earnings, risk book re-shape, diversify revenue streams, cost control, subsidiary and associates contribution

People, Process, Technology - ‘Qatari Bank of Choice’ for our clients

Digital Transformation, e2e, STP

One Bank, Collaboration, No Bureaucracy, Empowerment, Teamwork, Realising People Potential

Good Governance - Essential Foundation for a Bank, Growth with Governance

Confidence and Trust

From our Clients, Regulators, Shareholders, Board and Staff

First C: Corporate Earnings Quality Steps taken to raise and maintain our capital levels

Actions have already been taken to raise our CET1 Capital from 10% (September 2016):

• Rights issue announced of QAR 1.5 billion • Asset revaluation

Our regulatory minimum CET ratio requirement will rise to 10% by

2018 (under QCB guidelines for a domestic systemically important bank)

Strategic Intent: Maintain a minimum CET1 range of 11.0% to 11.5% at all times

First C: Corporate Earnings Quality Cleanse legacy assets with prudent provisioning and diversification

Review undertaken across the portfolio

Loan and Investment provisioning strategy implemented through 2016 and 2017

Proactively de-risk and improve asset quality through

sectoral, geographic and tenor diversification

Tightened underwriting standards

Strategic Intent: De-risk legacy assets, diversify the portfolio and proactively exit high risk names

First C: Corporate Earnings Quality Reshape and rebalance our loan book

Diversify portfolio on sector, tenor and geography

Reduce Real Estate exposure from 23%, targeting

a maximum of 16%

Increase share of Govt. & Public Sector, from

current 8%, targeting a minimum of 16%

Grow International Portfolio

Proactively Exit High Risk exposures

Strategic Intent: Reshape and diversify our loan book

Loan Book composition

Commercial Bank

Qatar Banking Sector

13%

23%

21%

14%

9%

8%

4% 8%

15%

16%

10%

8% 5%

33%

1%

2% 11%

Source: September 2016 Financials and QCB Market Data

First C: Corporate Earnings Quality Steps are under way to reduce costs

Goals – Reduce C/I ratio

Key steps have already been taken:

Review of staff costs in line with market benchmarks

Significantly reduced general and administrative costs

And the following are under consideration:

Staff efficiency

Branch reconfiguration

Process re-engineering

Strategic Intent: Costs broadly held flat until Commercial Bank moves back into alignment with the market

average

45% 41%

31%

CB (Consolidated)

Mkt. Average CB (Domestic)

Commercial Bank financial results September 2016

Second C: Client Experience Reclaim our position as the ‘Qatari bank of choice’

Client experience at the centre of our competitive offering

Embedding a ‘one bank’ experience across channels and segments

Building enduring relationships

Enhancing our speed of service and reducing transaction turnaround time

Continuous improvement and automation

Strategic Intent: Focus on client experience as a key differentiator

Third C: Creativity and Innovation Digital and technology upgrades

Multi- channel

Social media

Appification

Mobile channel

Digital- enabled

sales

Product innova-

tion

STP/ paper-

less

Real-time MIS

End-to-end digitisation

Business model

innovation

Innovation culture

Next product to buy

Innovation

Connectivity Digitisation

Decision making

Improved customer experience

Cost efficiencies

Improved process turnaround time

Improved data security and information for decisions

Single source of truth to underpin customer relationship management and decision making

Strategic Intent: Deepen our digital leadership through end-to-end process automation

Data warehouse replacement

Core Bank enhancement

Process re-engineering & automation

Trade services platform replacement

Fourth C: Culture One Bank with shared vision, teamwork and empowerment

Shared vision and strategy

Customer service as a key value

Collaboration and teamwork

Empowered organisation

Rapid decisions and reduced bureaucracy

Strategic Intent: ‘One Team – One Bank’ culture

Fifth C: Compliance Good governance is the essential foundation for growth

Mandatory deferred executive remuneration linked to clear outcomes with Malus and Clawback

Culture of good governance

Good governance as the essential foundation

Strategic Intent: Market leader for Compliance and good governance

Subsidiary & Associates: Aligned strategies and risk profiles for sustainable earnings

75% shareholding

34.9% shareholding

40% shareholding

Exec. representation on Board Committees

Integrated strategic planning, centralised credit process, Risk management, Treasury and Investment limits

Monthly CEO and functional forums

Shareholding as at 30 September 2016

Governance Cost & Product

Leveraging best practice

Cross alliance product development

Knowledge and intellectual property transfer

Shared centre of excellence for Financial Projects Monitoring Unit

Revenue & Business

Cross- border referrals and joint transactions

Wholesale and Retail (e.g. companies and their employees)

Cash and trade replication

Strategic Intent: A region-wide ‘Alliance of banks’ with closer integration of risk protocols and business strategy for sustainable earnings

Strategic Intent

Our 5-year plan is key to achieving our Vision

1

2

3

4

5

6

7

8

9 A region-wide ‘Alliance of banks’ with closer integration of risk protocols and business strategy for sustainable earnings

Market leader for compliance and good governance

‘One Team – One Bank’ culture

Deepen our digital leadership through end-to-end process automation

Focus on client experience as a key differentiator

Costs broadly held flat until CB moves back into alignment with the market average

Reshape and diversify our loan book

De-risk legacy assets, diversify the portfolio and proactively exit high risk names

Maintain a minimum CET1 range of 11.0% to 11.5% at all times

Strategic Intent:

Capital and Financials Rehan Khan EGM, Chief Financial Officer

Focus Areas

Improve asset quality

Increase portfolio mix of high quality assets

Further reduce domestic real estate portfolio

Address legacy issues and annual impairment review in 2016/2017

Normalise provisions in 2018

Diversified liquidity funding

Issuance of QAR 2 billion Additional Tier 1 Capital completed in 2016

Approved rights issue of QAR 1.5 billion

Fixed assets revaluation

Strengthen our balance sheet and liquidity position

Profit retention and dividend pay out

Reduction of cost income ratio

Self-capitalisation post rights issuance

Reduce Cost to Income Ratio each year to align with market average by holding costs broadly flat through various management initiatives:

- Reduction in Staff costs

- Reconfigure branch network

- Cost efficiency led by Technology

Domestic Cost to Income Ratio to be in-line with peers

1

2

3

4

Capital Adequacy Ratio (CAR) Governance

9.9%

11.8%

13.5%

Tier 1 CAR CET1

Dec 15: Capital Ratio & Limits

8.6%

10.6%

12.6%

Min. Regulatory Requirement

10.0%

13.6%

15.8%

Tier 1 CAR CET1

8.8%

10.8%

13.8%

Sept 16: Capital Ratio & Limits

Capital Ratio Governance outlook:

Our Tier 1 and Total CAR Ratios remain adequate vs. the minimum requirement

CB is identified as a DSIB and based on QCB guidelines CET1 will increase by a further 0.25% by 2018

Counter-cyclical buffer has been introduced and will need to be maintained as part of CET1 (2016 is 0%)

Breakdown of minimum CAR required by QCB: CET1 6%, Tier1 8%, CAR 10%, and current minimum buffers required are capital conservation buffer 2.5%, DSIB 0.25%, countercyclical buffer 0% and ICAAP buffer 1%

Hence minimum CET1 could increase to 10% by January 2018

Enhanced Capital Adequacy Ratios

10.0% 8.8%

13.6%

10.8%

15.8%

13.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

CB Sept 2016 Min. QCB req. 2016

CET1 Tier 1 CAR

Capital enhancement Capital headwinds

CET1 will increase in Q4 2016 following revaluation of Fixed Assets

Regulatory charge to capital on implementation of IFRS 9 in 2017-18

CET1 to increase following Rights Issue of QAR 1.5bn in Q1 2017

Anadolu Group has exercised its put option to sell 25% shares of ABank to Commercial Bank. This is awaiting regulatory approvals and will result in a reduction of CAR of approximately 0.3%

CET1 held at a minimum range of 11.0% -11.5%

Capital Enhancements in Q4 2016 & Q1 2017

NPLs to increase Loan Coverage Ratio to improve across the plan period

NPL ratio on 30 September was 5.3% with Loan Coverage Ratio at 79%. As Commercial Bank addresses its legacy issues, the NPL ratio is expected to increase before stabilising and then normalise.

Factors that lead to higher provisioning and an inflated NPL ratio:

Write-off process is long drawn even when provisioned for 100%. (Thus, legacy loans will inflate the ratio in the next few quarters)

When determining provisioning levels, QCB takes into consideration the lower of:

⁻ 50% of the loan principal or ⁻ 50% of the collateral value (for non-cash security)

Collateral is therefore discounted, leading to higher provisioning and net loan values are therefore

recorded below recoverable collateral values. It also means that loan coverage is not required at 100%.

NPL collateral example

Collateral is discounted in the calculation in the provisioning of NPLs Loan coverage ratio will therefore be below 100%

The following example shows how the treatment of collateral reduces the loan coverage ratio

Loan given 150 Value of collateral 200

Value of collateral if loan becomes NPL

Lower of : 50% of loan 75

50% of collateral 100

So collateral value is taken at 75 Provision amount 75

Loan coverage 50%

Diversifying liquidity pools is the key to managing cash flows and costs in tight market conditions

Tight but manageable liquidity conditions

The prolonged reduction in oil price has seen the GCC move from liquidity provider to consumer

Conditions have been challenging. However Commercial Bank has been able to maintain compliance with regulatory ratios

Reg. Ratios 2016 Range

LCR 90% to 120%

NSFR 85% to 95%

LDR 106% to 111% (current mkt avg – 120%)

Diversifying funding both geography and by product will remain a strong focus:

Regular issuer of senior debt through Euro Mid Term Programme

First Qatari bank to list GDRs and bonds on LSE and first Qatari bank to list bonds in SIX Swiss Exchange

In 2016, Commercial Bank tapped the Japanese Market with the first Ninja Bond for the region

In the next quarter, we shall establish a USD 500mn Commercial Paper Program and access funding in the United States

Build on cash management and trade business to increase low cost deposit volumes

Asia will remain a key focus of funding for both deposits and bond issuance as investor demand for CB paper remains strong in the market

Focus Areas Summary

Improve asset quality

Strengthen our balance sheet and liquidity position

Profit retention and dividend pay out

Reduction of cost income ratio

1

2

3

4

Wholesale Banking Raju Buddhiraju EGM, Chief Wholesale Banking

Strategic Re-shape

Create sustainable revenue streams in terms of fee income

Focus on Cash Management and Trade and Forex businesses

Tight cost control (cut layers in the business organization)

IT investments to automate and reduce costs

Reshape the composition of the balance sheet to reflect the market (focus on Government & Public

Sector and rationalise Real Estate)

Selectively de-risk large exposures via sell down /risk participation Asset growth to reflect market growth rate

Integrate as one bank (cutting across Retail/Corporate business unit to offer an integrated and comprehensive one-stop offering)

Omni channel (ability of customers to process transactions across all channels)

Government & Public Sector

Real Estate*

13%

29%

21%

25%

* Wholesale Banking portfolio

29

2021 2016

Balance Sheet

Sustainable Revenues Customer Experience

1

2 3

Key Priorities

Launch Supply Chain Finance to capture delayed payment opportunity

Upgrading to a new platform, TI Plus for enhanced customer experience

Launched Structured Cash Back LCs, UPAS LC, Refinancing of Trade Assets and Avalisation

Enhanced cash management integrated with Corporate Internet Banking

Launching Remote Cheque Deposit (RCD), Account Aggregation, Direct Debit, consolidated payments for selected mobile operators

End-to-end STP digitised process to significantly reduce cost of transaction / serve and improve the whole customer experience

Improve turnaround time

Omni channel to all customers to process transactions across multi-channels

Commercial Bank / UAB / NBO / ABank to act as one bank for credit origination plus other auxiliary services like Cash Management /Trade Finance and Treasury solutions

Success knowledge transfers for best practices to enhance overall customer experience and offer a seamless one touch point

30

Cash Management 1

Trade Finance 2

Digital 3

Regional Hub 4

Best Cash Management in Qatar 2016

International Banking Fahad Badar EGM, Chief International Banking

International Banking: Diversification and Healthy Growth

Strategic Priority Actions Overview Impact

Greater geographic diversification for a

healthier risk profile

Decrease concentration in areas where the Bank holds also equity exposures (Turkey)

Target geographies with high growth potential (Asia and Africa)

Leverage the Qatar trade and investment flows with a number of selective geographies ( Europe and America)

Healthier risk profile for the international portfolio booked out of Qatar by reducing individual geographic concentrations

Enhanced value proposition to

accelerate growth

Building up a distribution capability through Structured Finance dedicated resources

Acquire origination capabilities across targeted geographies vs. plain syndication participation

Increase cross-sell efforts especially for off B/S income

Enhance the added value to clients, reinforce the Bank’s competitive advantages and improve the international portfolio returns

Portfolio quality focus to ensure future

sustainability

Dedicated portfolio strategy detailing exhaustively risk governance parameters

Prudent lending criteria Prudent country and ticket limits

Maintain the excellent quality of the intl. portfolio which generated no credit incidents over the last 5 years

1

2

3

International Banking – Geographic Diversification

- Turkey exposure to be capped down at 25% of the total portfolio down from 52% currently

- Asia (excl. sub cont.) exposure to increase from 8% of the portfolio currently to 18%

- Africa’s weight within the portfolio to double from 6% currently to 12%

Diversify geographic distribution of the portfolio for healthier risk profile

Portfolio Contribution By Geography – Current vs. 5-Yr Strategic Vision Overview

Note : figures for international corporates and financial institutions portfolio booked out from Qatar only – current figures as of end of Sep 2016

1

Asia

Current Target

8% 18%

Turkey

Current Target

52% 25%

Asia Sub Cont.

Current Target

6% 6%

Africa

Current Target

6% 12%

International Banking – Geographic Diversification (cont’d)

- GCC would remain at a major weight within the portfolio

- Europe and America to step modestly within the portfolio

Diversify geographic distribution of the portfolio for healthier risk profile

Portfolio Contribution By Geography – Current vs. 5-Yr Strategic Vision Overview

Note : figures for international corporates and financial institutions portfolio booked out from Qatar only – current figures as of end of Sep 2016

1

For geographies with Alliance presence (i.e. Turkey, UAE and Oman), main focus will be on crystalizing synergies through

systemic client referral, market intelligence sharing and joint deals assessment

and participation

GCC

Current Target

25% 28%

MENA (excl. GCC)

Current Target

3% 2%

Europe

Current Target

0.002% 5%

Americas

Current Target

0.4% 3%

International Banking: Enhanced Value Proposition

Guidance

Double Digit CAGR for International Portfolio Income

over the next 5 years

Enhanced value proposition to accelerate growth crystalising the competitive advantages of

the Bank

Good knowledge of the GCC markets through associate synergies in the UAE and Oman

Advantageous geographic positioning in the middle of increasing trade flows between Asia and the rest of the world

Prudent risk appetite in line with the growing international relations of Qatar across the developed and emerging markets

Enhanced value proposition to accelerate growth

2

Mandated Lead Arranger

2016

USD 275 MM syndicated facility

Mandated Lead Arranger

2016

USD 350 MM syndicated facility

Mandated Lead Arranger

2012

USD 200 MM syndicated facility

Mandated Lead Arranger

2014

USD 50 MM facility

Bilateral Lender

2013

USD 100 MM facility

Mandated Lead Arranger

2012

USD 550 MM syndicated facility

Selected Executed Transactions

International Banking: Portfolio Quality Focus

Overview

While growing into new geographies, maintaining an excellent portfolio quality of the International

portfolio is key for the long term sustainability of the International Banking performance

Prudent risk management of

the international portfolio is driven by portfolio strategy

guidelines

Portfolio quality focus to ensure future sustainability

3

Ticket size

Maturity

Sectors and clients

Security support and collateral

Risk governance

Profitability assessment

Limited ticket size caps implemented in order to avoid single obligor concentration

Shorter tenor transactions favoured with an average maturity of the current corporate book around 2.75 years

Strategic sectors like oil, food, largest export sources and systemic NBFIs are favored. Residential real estate, greenfield or brownfield projects and contracting are avoided

Tangible collateral / corporate Guarantees. Sovereign support is favoured and assignment of cash flows with clear FX risk mitigation

English law and compliance with QCB regulations. Work with international and large regional banks with a presence. Checking with local banks for credit compliance

Strict implementation of a RAROC hurdle which allows a wise allocation of capital and favours well-secured, lower risk transactions

International Banking – Wrap Up

Strategic Priority

Diversify geographically

Grow and leverage the Alliance synergies

Focus on portfolio quality and reinforce track record

1

2

3

Retail and Consumer Banking Martin Leong AGM, Retail and Consumer Banking

57,621 60,351

81,288

122,267

2012 2013 2014 2015

The Retail Success Story

11,368

14,240

18,417

20,974

2012 2013 2014 2015Asset Liability

46,721

71,655

118,583

144,838

2012 2013 2014 2015

200%

748

1,002

1,298

1,509

2012 2013 2014 2015

310%

195% 205%

A success story that has served the Bank well and grown using innovation and execution.

Well funded with 51:49 Liability

to Asset ratio in Retail Underpinned further with the

split between Low Cost and High Cost looking favourable 54:46

Maintained market position in

2016 and ready for a fresh re-invigorated approach

Best Retail Bank in Qatar 2015

Salaried Customers

Operating income Balances

Product Sales

2011 2012 2013 2014 2015 2016

Selective and controlled growth, (15% of Retail)

Segmentation has improved service and the customer : RM ratio

Continued focus on diversified loans, smaller values, steady volumes,

tight controls and stringent underwriting

Deepening rather than widening of relationships

Strategic Reshape - Key Customer Segments

Focus on HNW Qatari clients to continue

Opportunity for enhanced Wealth proposition

Up-skilling of Relationship Managers (RM)

Assets

Liabilities

Key gateway product for cross sales

Successful ‘Banking at Work’ solution capturing Expats and Nationals

Higher Asset penetration resulting in a 20% higher customer value

Instant issuing and more one-stop-shop experiences to follow

329%

Growth in Private Banking combined Assets & Liabilities

General

BAW

60% new customers related to scheme companies

Healthy Ratio of Low Cost Funds

Private and Sadara

Salaried

Enterprise SME

1

2

3

Market prominence in Issuing & Acquiring 6,000 merchants,

10,000 Terminals developing - MPOS and Contactless

Limited Edition Card – highest spend per card globally

Award winning products - Cards, Affinity and Loyalty schemes

Deliver Refreshed Propositions

Market-leading expat arrivals proposition will continue

Continued growth of new accounts through this offer

Concentration on affluent salaries with packaged cross- sales

Customer differentiation - functional, efficient, minimal effort

Two key propositions attracting u25s

Entrepreneurship programme with INJAZ, QDB, Ooredoo

Launch of our own Young Elite Savers club

attracting ‘sticky’ funds from parents and children

40%

Aspiration of owning a business

2012 2016 2021

Higher % of Customer Growth through LIQ

230%

Spend Increase 2012-2016 CB

Other

53% Market Share of POS Commercial Retail

(non Govt.)

Life in Qatar 1

Cards 2

Qatari youth 3

Expanding functionality in the future

Money remittance by ATM

Paperless PIN issuance

Finger Vein access to ATMs without cards

Accelerate a Digital future

Active Users complete 9 mn transactions this year

Buy online Loans and Savings products

SME Mobile app is market first

Biometric sign on and other ‘intuitive’ developments follow

Digital absorbing the basics- allows time for customer discussion

BPM straight through processing underway

Premises optimisation- open, close and refurbish - lower cost

Service differentiation - dedicated business cheque and cash centres

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

Present Users Forecasted Active Users

100 ,000

200 ,000

300 ,000

400 ,000

1,00 0,000

6,00 0,000

11,0 00,00 0

16,0 00,00 0

2013 2014 2015 2016 2017 2018 2019 2020 2021

Cust Base Branch Tranx Digital Tranx

Digital migration climbs and will continue as Branch remains flat

Active users of Digital Banking increases

Internet and Mobile 1

ATM and Kiosks 2

Branch 3

Panel Discussion Q & A

Coffee Break

Subsidiary and Associates Presentation

Müge Öner Acting Chief Executive Officer, ABank

Milestones of ABank

1991 1992 1995 1996 2013 2014 2015 2016 2017

ABank commenced operations

February 1992

In 2015 «Transformation Project» strategy

kicked off and transformation started

Share trading started on the Istanbul Stock

Exchange July 1995

The Commercial Bank (CB) acquired 70.84% of ABank’s shares

July 2013

ABank was incorporated as a

joint stock company November 1991

ABank began to operate under the

majority ownership of the Anadolu Group

1996

Implementation of New Business Strategy

The Commercial Bank (CB) acquired

additional equity interest of 3.40% September 2013

The Commercial Bank (CB) initiated squeeze-out process of 0.75%

shares July 2014

Squeeze-out process of 0.75% shares finalized and

Commercial Bank (CB) shares reached 75% July 2015

Source: ABank Investor Relations

On 18 July 2016 Anadolu Endustri Holding has announced their decision to sell their %25 shares to The Commercial Bank. The regulatory approvals have been received and the process will be finalized until YE 2016.

Corporate Earnings Quality

Replace the high risk

high yield portfolio

with credible big

commercial and

corporate customers

Better categorize the portfolio by risk

indicators and take actions accordingly

including exiting risky customers

Focus on big commercial and corporate

customers with diversification potential

A sustainable revenue base with

diversification potential of earnings

through cross sell opportunities is

built

Cost of risk decreases as portfolio

evolves

Strategic objectives

High return and high

risk are not

sustainable and

creates periodicity

shifts and is not in line

with ABank’s new risk

appetite

Why we are doing? What we have been doing? How we benefit?

Breakdown of Loans in terms of Business Units (Jan2015 – Oct2016)

Commercial, 74%

52% 49%

Corporate, 21% 45% 49%

Retail, 5% 3% 2%

0%

50%

100%

Our customer coverage

Business lines

(coverage)

Product lines

Industry teams

Corporate (>300m TL assets/revenues or >100m

TL limit)

Commercial

Large commercial (>40m TL and <300m TL

assets/revenues)

SME (>10m TL and <40m TL assets/revenues)

Retail (Individuals)

Treasury Marketing Unit

(TMU)

Corporate finance

Insurance

Cash management

Current size of ABank does not justify employing specific

industry teams within ABank.

Advisors are utilized for real estate, energy and large

construction projects

Business line specific strategies

50

Positioning ABank as a new player in the segment by leveraging CB’s capital strength and brand

Create a platform that generate sustainable revenue stream with low expected loan losses

Opportunity to increase non-interest income through focusing on corporate finance, TMU and trade products

Contribute to sustainable funding base via building a diversified deposit base

Focus on non-interest income – vanilla or structured product sales to affluent clients

Collect structured deposit

Selected SME approach focused on

supply chain finance with higher yields

Better collateralization and access to cash management

No appetite for Micro segment

Core focus of the growth with reasonably better spreads and measurable risk

Higher cross-sell opportunities as the Bank looks to deepen relationship via trade finance, cash management, insurance and TMU products compared wallet share of ABank

Corporate Large

commercial

Retail SME

Creativity, Innovation and Culture

Build-up a strong

organization that fuels

the new strategy and

bring cost efficiency

Strategic objectives Why we are doing?

New strategy

requires

efficiency and

new employee

skill sets

A shared vision

by all levels helps

in the focused

strategy of ABank

What we have been doing? How we benefit?

Change the organization structure to

offer new products and services as well

as improving the focus on strategy

Hire new personnel with required skill

sets (i.e. credit underwriting, corporate

banking)

ABank reaches the

organization structure and

employee base that will be

required in offering of new

services and products

A well understood strategy

will improve processes and

boost efficiency as well as

employee engagement

Branch Network

Optimization

Communicate a clear

vision understood by

everyone

Shared Vision and

Strategy with CB and

Alliance banks

IT Investment and

Digitalization

Hire new personnel with required skill

sets (i.e. credit underwriting, corporate

banking)

ABank’s Plan, 2017 onwards

► A significant progress has been made since the start of the transformation in 2015 - despite economical, political and geo-political shocks. We plan 2017

to complete the structural changes/improvements; from 2018 onwards, those structural changes is expected to pay on profitability.

► In 2017, we will:

– Plan our segment growth to deliver profitability within the defined scope of risk appetite

– Optimize sector exposure

– Launch our re-branding following CB’s acquisition of 100% of shares

– Invest in IT systems

– Concentrate on cross sell

– Wealth management with Qatari clients on retail banking

► 2018 onwards;

– Factoring

– Investment brokerage services

– Establishment of foreign subsidiary

Digital

Bank

Brand

Location

Channel

Process

Data Center

Disaster Center

Ops. Center

Business Continuity

Head

Office

Mobile Banking

Call Center

Mobile Intranet

Corp. Web

Online Banking

Omni Channel

Chip Cards

ATM POS

Credit

Collect-ion

Scoring

Mobile Sales

MobileOps

53

Investor Presentation

November 2016

54

AGENDA

1 2 3 4 5 Financial

Results

About

NBO

Vision &

Aspiration

Business

Overview

Market

Context

55

THE SULTANATE OF OMAN, A BEACON OF MIDDLE EAST STABILITY FOR ALMOST HALF A CENTURY

10%

26%

16% 7%

9%

6%

22%

4%

$163bn

Large project Investment are planned to

further diversify Oman

With significant expenditure cuts, the fiscal

deficit is set to improve

Slower Real GDP growth due to lower

oil price

WEF rated Oman

top 10 most secure countries

6.4

6.1

5.4

Oman

UK

US

2.9% 3.3% 1.8%

2014 2015 2016 (F)

These investments continue to drive

steady banking loan growth

Generating stable banking shareholder

returns

10.5% ROE – Oman Market

ROA – Oman Market

1.2%

-3.4% -4.9%

-15.5% -16.7%

Qatar UAE Bahrain Oman

2015 16 17 18 19 2020

6 – 7%

CAGR

*Source International Monetary Find, November 2016, Business Monitor International, Meed Projects, Central Bank of Oman

56

THE FIRST INCORPORATED LOCAL BANK IN OMAN (SINCE 1973) WITH A STRATEGIC TRADE NETWORK ACROSS THE MIDDLE EAST AND NORTH AFRICA

$9,088 million In total

assets

460,000 Customers

3 Countries

70 Branches

178 ATMs

1500 Employees

24%

7%

8%

11%

15%

35%

NBO Global Presence Ownership

Suhail Bahwan Group

Civil Service Employees'

Pension Fund

MoD Pension Fund

Other

Commercial Bank of

Qatar

U.A.E

Oman

Egypt

PASI

57

OUR VISION IS TO BE THE BANK OF CHOICE BY DEVELOPING MEANINGFUL RELATIONSHIPS WITH OUR CLIENTS ACROSS EVERY PART OF THEIR BUSINESS AND LIFESTYLE NEEDS

Corporate

Government

Customer First To be the Bank of Choice for:

Customers

The best bank in service, value and

convenience for our target customer

segments

Employees

The best workplace and career opportunities

for our employees

Shareholders

The highest returns with sustainable

performance for our shareholders

Community

For you, for our Nation; most caring bank

for our community

58

THIS VISION GUIDES OUR EFFORTS TO BUILD THE BANK OF THE FUTURE

Performance Based Culture

Enabling Infrastructure

Omni-Channel & Brand

How

Customers

will

experience

our

offerings

and

solutions

Range of

capabilities

build

products/

solutions

Back end to

manage

customers’

money

Info

rma

tio

n S

ec

uri

ty

Intelligent Processes

Smart Controls

Segment Value Propositions

Transformation Themes

Intelligent Processes

• Dynamic, efficient processes and best in class

systems result in lower costs

Superior Customer Experience

• Focused, sophisticated front line tools and

sales culture

Omni-Channel & Brand

• Products and Services will be exposed through

an integrated Omni-channel

Segment Value Propositions

• Innovative products tailored to our segments of

focus (e.g. Cash Management)

Data, Insight & Analytics

• Robust analytics engine to analyze trends, and

visualize customer data to inform decisions

Smart Controls

• Intelligent, automated scoring models to enable

fast high quality credit scoring at the front line

Superior Customer Experience

Performance Based Culture

• Robust and standardized planning, budgeting,

policies, and talent management

Data

, In

sig

ht

& A

na

lyti

cs

Bu

sin

ess S

yn

erg

y

Com

plia

nce

59

WE OPERATE ACROSS FOUR MAJOR BUSINESS LINES, PROVIDING OUR CLIENTS A FULL RANGE OF FINANCIAL SERVICES

Provides banking services to 442,419

retail customers (58% of which are

Omani nationals, 42% are expatriates;

as of Sep 2016)

Retail Banking

Asset % Income %

Commercial

Banking**

Wholesale

Banking

The Commercial Banking Group includes

the following divisions: "Tijarati" SME

banking services; and business banking

(serving mid-sized corporate entities).

Building deep client relationships by

providing a one-stop shop for

corporates (including government,

treasury and investment banking)

NBO launched in 2013 an Islamic

window with the aim to provide

customers with an alternative to

conventional banking services

35%

32%

13%

4%

39%

31%

13%

3% Islamic

Banking

*Other income and assets are 14% and 16% respectively and are Head Office Related (including Central Bank balances)

**Includes international operations in UAE and Egypt

60

NBO CONTINUES TO ACHIEVE MARKET LEADING SHAREHOLDER VALUE PERFORMANCE – SEPTEMBER 2016 RESULTS

14.2%

13.6%

12.7%

12.6%

7.8%

6.7%

5.9%

NBO

Bank Dofhar

Bank Muscat

Ahli Bank

Oman ArabBank

Bank Sohar

HSBC

ROE 2016 Q3 Benchmark

Balance Sheet (US$m)

Earnings (US$m)

Operating

Income

Net Profit 4Y CAGR

(Topline)

266 109 8.4%

Total Assets Total Equity Loans & Advances Deposits

9,088 1,376 7,360

Highest

ROE and

ROA in

Oman 6,289

Solvency Risk Efficiency/ Profitability

ROE ROA Cost-to-

Income

14.2% 1.7% 44%

NPL

Coverage

Tier 1

Ratio

CAR

15.0%

Credit Rating

Moody’s Fitch

16.8% 134% Baa2 BBB

NPL

Ratio

2.2%

Source: National Bank of Oman’s audited financials. 1US$ = OMR 0.3850.

(1) CAR for interim period does not take into account interim profits (2) Liquid assets: Cash and balances with Central Banks, DFB and other money market placements, and

Financial investments.

Anthony Murphy Chief Financial Officer, United Arab Bank

Transformation Strategy ahead of plan to create a simpler, safer and sustainable Bank

New Senior Management team appointed to implement Board approved Strategy

Significant reduction in non-core assets - aiding Balance Sheet de-risking

Key banking fundamentals strengthened

Significant reduction in Cost Base

Organizational Structure streamlined

Resolution of legacy issues

Provisions on a downward trend

Three lines of defense enhanced

Investor Update Substantial progress recorded in 2016

UAB will enter 2017 with solid foundations

Transformation Pillars Building a simpler, safer and sustainable Bank

Strategic

Structural

Financial

Cultural

Simpler Smaller

Safer Stronger

Sustainable

Transformation Strategy A return to UAB’s traditional roots

Core Offering: Complemented by:

Corporate & Institutional Banking

Treasury & Capital Markets

Retail Banking

Sustained by:

Efficient Support Functions

Op

era

tin

g M

od

el

Proactively running down:

Non-core ‘higher-risk’ Assets

The 3 year strategic plan (adopted in Q4 2015) encompasses two key phases (running in parallel):

Phase 1 - unwind legacy issues, with an emphasis on reducing non-core lending portfolios, ‘right-sizing’ the cost base, ‘churning’ risk weighted assets into core activities and reducing provisions

Phase 2 - re-build the Bank, embedding a streamlined Operating Model and creating propositions to deepen customer relationships / aid cross-selling

The Bank remains dedicated to executing its long-term strategy of delivering shareholder value (by increasing risk-adjusted returns in its core businesses), measured by an acceptable Return on Equity

Financial Results - Q3 2016 Delivering on our strategic objectives

Capital Adequacy (%) Risk-weighted Assets (AEDm)

14.40%

16.1%

Q3 2015 Q3 2016

Total RWA’s managed 12% down with UAB’s higher risk non-core assets deleveraged by 59%

CAR significantly enhanced to 16.1%, representing highest position since 2013

21,097 18,600

2,284

932

Q3 2015 Q3 2016

Total RWA Non-Core RWA

Liquidity Ratios (%)

89.3% 78.5%

12.9% 18.4%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Q3 2015 Q3 2016

ASR ELAR

UAB’s regulatory ratios managed to historical highs

Financial Results - Q3 2016 Tangible progress against all key Transformational milestones

Pace of Delivery Accelerating

Net Profit AED88m - 22% up on Q3 2016

Operating Expenses

19% lower than PY, on track to deliver 25% annualized saving

Cost:Income Ratio

Maintained at 38%

Branch Network

Reduced by 1/3rd with pan-Emirate footprint maintained

Capital / Liquidity

Insourcing Back office activities ‘insourced’ – further

enhancing control framework

Asset Quality Ratios

Non-core Deleveraging

59% reduction delivered in 12 months, portfolio comprising 7% of Total Loans

Provisions 44% reduction vs. PY

Other Operating

Income

Sustained growth in Non-Interest Income - up 42% vs Q3 2015

Non-performing Loans - 4.46% Provision Coverage - 109%

Managed at / or above ‘historical’ highs

Looking Ahead Our revised business model will enable us to react effectively to the uncertain operating environment

Operating Environment

Customer

Competition

Regulation

Economy

UAB Operating Model

Expect full service proposition Digital adoption

UAE banking sector remains highly competitive

Basel III IFRS 9 Enhanced AML / KYC requirements

Prolonged period of lower oil prices Market volatility Uncertain economic outlook

Complimentary banking propositions (incl. UAB@WORK concept)

Enhanced online capabilities

Bespoke offerings targeting core segments Focus on cost efficiencies

Simplified / streamlined approach Key fundamentals managed to historical highs Significant investment in Risk & Compliance

Simple, UAE focused model Transition to lower risk / efficient Bank

Looking Ahead UAB will continue to deliver on its strategy to build a simpler, safer and sustainable Bank

De-risk the Balance Sheet (running-off non-core portfolio)

Complete Branch Rationalization Project

Continued focus on simplification, further capturing cost savings

‘Churn’ risk weighted assets into core activities

Resolve legacy issues

Completion expected in H2 2017

Accelerate transition to core businesses

Implement enhanced I.T platform

Ensure optimal customer experience, supported by enhanced propositions to deepen relationships

Deliver balanced / sustainable returns

Support UAE’s continued economic growth

In parallel, continue progressing against Phase 2

Target 2018

Deliver Phase 1 as per Transformation Strategy

Panel Discussion Q & A

Strategic Reshape Recap

Our 5-year plan is key to achieving our Vision

1

2

3

4

5

6

7

8

9 A region-wide ‘Alliance of banks’ with closer integration of risk protocols and business strategy for sustainable earnings

Market leader for compliance and good governance

‘One Team – One Bank’ culture

Deepen our digital leadership through end-to-end process automation

Focus on client experience as a key differentiator

Costs broadly held flat until CB moves back into alignment with the market average

Reshape and diversify our loan book

De-risk legacy assets, diversify the portfolio and proactively exit high risk names

Maintain a minimum CET1 range of 11.0% to 11.5% at all times

Strategic Intent: