CONTENTS

BOARD OF DIRECTORS AND MANAGEMENT

Chairman’s letter

STATEMENT OF FINANCIAL POSITION

Off Balance Sheet

Income statement

FINANCIAL HIGHLIGHTS 2015

BANK AUDI ADDRESSES

06

07

08

10

11

12

13

01

02

03

04

06

07

05

BOARD OF DIRECTORS

Member of the Audit Committee

Member of the Risk Committee

Member of theRemuneration

Committee

Mr. Philippe R. SEDNAOUI Chairman

Mr. Fady G. AMATOURY Member

Mr. Toufic R. AOUAD Member

Dr. Khalil M. BITAR Member Chair

Mrs. Wafaa S. DAOUK Member

Dr. Joe A. DEBBANE Member Chair

Mr. Georges S. DOUMITH Member Chair

Mr. Salam G. NADDA Member

Bank Audi sal Member

MANAGEMENT

Mr. Philippe R. SEDNAOUI Chairman and General Manager

Mr. Toufic R. AOUAD General Manager

AUDITORS

Ernst & Young p.c.c.

BDO, Semaan Gholam & Co.

LEGAL ADVISORS

MM. Ramzi Joreige & Partners Law Firm

06Audi Private Bank sal

BOARD OF DIRECTORS AND MANAGEMENT01

The profound restructuring of the wealth industry has continued unabated in 2015, with several international players exiting totally or partly their market coverage due to increased regulatory standards and reputational exposure, in markets where they did not fully apprehend the local customer base.

2015 has been another year of solid development of the private banking and wealth franchise of our company. This performance has been recognized by the prestigious Euromoney publication that awarded APB the award of best wealth manager of the Middle East in May 2016.

More than ever and as a strategic decision, Audi Private Bank is dedicated to furthering the coverage of its client base in the greater Middle East, Africa and Latin America in close harmony with the overall footprint of the Bank Audi Group.

In 2015 APB achieved solid results, with net profit increasing by approximately 7% and reaching LL 32 billion. This positive result was fundamentally due to a 13% increase in fee based revenue, on the back notably of an expansion in our assets under discretionary management and transactional volumes in the FX and advisory activities.

Also noteworthy to report in 2015, was the launch by Bank Audi sal and APB of a joint service to offer international wealth services to clients of Bank Audi in Lebanon. This service permits access to all private banking bookings along with constant monitoring of clients investment portfolios.

The above successes were achieved while fully implementing the modern investment rules edicted by the CMA in 2015 for the Lebanese capital markets, including the launch of several IT developments covering client suitability and investments as well as other regulatory requirements.

We are confident that 2015 has laid firm footings for the year to come and take this opportunity to thank all our colleagues for their valuable work and dedication, and our clients whose best interests we are here to serve for their trust and loyalty.

Philippe R. SednaouiChairman of the Board

07Annual Report 2015

CHAIRMAN’S LETTER02

08

AS AT31/12/15 31/12/14

LL C/V LL Total LL C/V LL Total

ASSETS

Cash and balances with Central Banks 8.459 256.548 265.007 13.094 258.070 271.164

Deposits with banks and financial institutions 17 17.836 17.853 18 22.592 22.610

Due from head office, sister, related banks and financial institutions 305.183 1.089.549 1.394.732 318.336 1.080.782 1.399.118

Loans to banks and financial institutions and reverse repurchase agreements - - - - - -

Financial assets given as collateral - - - - - -

Derivative financial instruments 870 251 1.121 471 131 602

Shares and participations at fair value through profit and loss - 7.954 7.954 - 10.015 10.015

Debt instruments and other similar financial assets at fair value through profit and loss - - - - - -

Of which: Net advances and loans at fair value through profit and loss - - - - - -

Net loans and advances to customers at amortized cost(1) 30.002 204.844 234.846 30.142 232.423 262.565

Net loans and advances to related parties at amortized cost(2) - 8.943 8.943 - 10.006 10.006

Debtors by acceptances - - - - - -

Debt instruments classified at amortized cost(3) - 15.903 15.903 - 15.906 15.906

Shares and participations at fair value through other comprehensive income 4.018 580 4.598 3.904 569 4.473

Investments in associates 8.335 88.280 96.615 8.335 88.280 96.615

Assets taken in settlement of debts 41 3.135 3.176 41 3.135 3.176

Property and equipment 1.290 6 1.296 1.415 2 1.417

Intangible fixed assets 1.248 - 1.248 1.090 - 1.090

Non current assets held for sale - - - - - -

Other assets 5.336 2.939 8.275 3.490 1.198 4.688

Goodwill - - - - - -

Total 364.799 1.696.768 2.061.567 380.336 1.723.109 2.103.445

(1) After deduction of provisions amounting to LBP 20.619 million from loans and advances to customers as per IAS 39, of which LBP 900 million representing provisions on collective assessment.

(2) Loans granted to related parties against cash collateral amounted to LBP 8.900 million.(3) Includes an amount of LBP (million) 15.903 representing Lebanese Eurobonds.

STATEMENT OF FINANCIAL POSITION(in LBP millions)03

Audi Private Bank sal

09Annual Report 2015

AS AT31/12/15 31/12/14

LL C/V LL Total LL C/V LL Total

LIABILITIES AND SHAREHOLDERS’ EQUITY

Due to Central Banks - - - - - -

Due to banks and financial institutions and repurchase agreement 185 68 253 1.281 1.636 2.917

Due to head office, sister, related banks and financial institutions - 356 356 2.976 23.454 26.430

Financial assets taken as a guarantee - - - - - -

Derivative financial instruments 966 - 966 1.160 - 1.160

Financial liabilities at fair value through profit and loss - - - - - -

Of which: deposits at fair value through profit and loss - - - - - -

Customers' deposits at amortised cost 138.822 1.614.240 1.753.062 179.914 1.597.797 1.777.711

Deposits from related parties at amortized cost 4.808 28.649 33.457 3.561 47.974 51.535

Debt issued and other borrowed funds - - - - - -

Engagements by acceptances - - - - - -

Other liabilities 19.285 1.236 20.521 20.576 2.498 23.074

Provisions for risks and charges 8.182 - 8.182 7.390 - 7.390

Subordinated loans and similar debts - - - - - -

Non current liabilities held for sale - - - - - -

Total liabilities 172.248 1.644.549 1.816.797 216.858 1.673.359 1.890.217

SHAREHOLDERS' EQUITY - GROUP SHARE

Capital - Common shares 40.000 - 40.000 40.000 - 40.000

Capital - Preferred shares - - - - - -

Issue premium - Common shares - - - - - -

Issue premium - Preferred shares - - - - - -

Subsidiary shares warrants - - - - - -

Share Capital and Cash contribution to capital - - - - - -

Non distributable reserves 70.640 32.167 102.807 64.262 29.707 93.969

Distributable reserves 43.914 3.317 47.231 43.914 3.317 47.231

Treasury shares - - - - - -

Retained earnings 21.073 - 21.073 362 - 362

Proposed dividends - - - - - -

Revaluation reserve of real estate - - - - - -

Reserve on revaluation of financial assets at fair value through other comprehensive income 2.521 128 2.649 2.424 118 2.542

Remeasurement actuarial (gain)/Loss on defined benefit plan (528) - (528) (425) - (425)

Share of associates' other comprehensive income under equity method - - - - - -

Foreign currency translation reserve - - - - - -

Net (loss) gain on hedge of net investments in foreign entities - - - - - -

Result of the current Period 31.538 - 31.538 29.549 - 29.549

Shareholders' Equity - Group Share 209.158 35.612 244.770 180.086 33.142 213.228

Non Controlling Interest - - - - - -

Total shareholder's equity - - - - - -

Total liabilities and equity 381.406 1.680.161 2.061.567 396.944 1.706.501 2.103.445

10

AS AT31/12/15 31/12/14

LL C/V LL Total LL C/V LL Total

Financing commitments- Financing commitments given to banks and financial

institutions - - - - - - -

- Financing commitments given to customers - 33.809 33.809 - 34.876 34.876

Bank guarantees

- Guarantees given to to banks and financial institutions 415 14.015 14.430 415 14.015 14.430

Of which: credit derivatives - - - - - -

- Guarantees received from banks and financial institutions - - - - - -

Of which: credit derivatives - - - - - -

- Guarantees given to customers 1.877 1.367 3.244 1.862 1.894 3.756

- Guarantees received from customers 59.302 407.095 466.397 57.844 447.742 505.586

Financial notes commitments

- Financial notes commitments to be received - - - - - -

Of which: financial instruments sold with a buy back option - - - - - -

- Financial notes commitments to be delivered - - - - - -

Of which: financial instruments purchased with a buy back option - - - - - -

Foreign currencies forwards

- Foreign currencies to receive - 234.127 234.127 - 135.201 135.201

- Foreign currencies to deliver - 234.223 234.223 - 135.890 135.890

Commitments on term financial instruments - 27.523 27.523 - - -

Other Commitments 38 - 38 91 - 91

Claims from legal cases - - - - - -

Fiduciary accounts 2.112 597.330 599.442 3.512 558.244 561.756

Under specific instructions 2.112 597.330 599.442 3.512 558.244 561.756

Under discretionary investments - - - - - -

Assets under management 56.666 1.826.816 1.883.482 51.865 1.690.164 1.742.029

Mutual funds - - - - - -

Structured financial products - - - - - -

Engagement unlikely to be executed - - - - - -

Bad debts written off during the year 667 11.418 12.085 127 5.825 5.952

OFF BALANCE SHEET(in LBP millions)04

Audi Private Bank sal

11Annual Report 2015

31/12/15 31/12/14

Interest and similar income 88.894 94.880

Interest and similar expense (48.198) (50.992)

Net interest margin 40.696 43.888

Fee and commission income 17.081 15.959

Fee and commission expense (1.236) (1.551)

Net Fee and commission Income 15.845 14.408

Net gain on financial assets or liabilities at fair value through profit and loss 2.167 2.319

Of which: interest income - -

Net gain on financial investments 84 74

Other operating Income 2.362 1.162

Total operating income 61.154 61.851

Net provisions for credit losses 1.541 1.900

Credit losses related to debt instruments classified at amortized cost - -

Provision for doubtful accounts (114) (350)

Recoveries of provisions for doubtful accounts 1.655 2.250

Impairement on related financial investments - (283)

Net Operating income 62.695 63.468

Personnel expenses (15.674) (15.480)

Other operating expenses (8.770) (11.876)

Depreciation of property and equipment (388) (351)

Amortization of intangible assets (384) (333)

Impairment of goodwill - -

Total Operating Expenses (25.216) (28.040)

Operating Profit 37.479 35.428

Share of profit of associates under equity method - -

Net gain (loss) on sale or disposal of other asset (1) -

Profit before tax 37.478 35.428

Income tax (5.940) (5.879)

Profit after tax 31.538 29.549

Result of discontinued operations, net of tax - -

Profit for the current period 31.538 29.549

Minority Share Profit for the current period - -

Group Share Profit for the current period - -

Basic earnings per share LBP - -

Diluted earnings per share LBP - -

Basic earnings per share from continuing operations LBP - -

Diluted earnings per share from continuing operations LBP - -

INCOME STATEMENT(in LBP millions)05

Year 2015 is yet another year of growth for Audi Private Bank (APB) amidst erratic market conditions both domestically and regionally.

Total footings (on-balance sheet assets and off-balance sheet assets under management) have grown by 3.11%, moving from LL 4,407

billion to LL 4,544 billion as at end of 2015.

Off balance sheet assets under management have increased significantly by 8.12% moving from LL 1,742 billion as of December

2014 to LL 1,883 billion as of December 2015; customers’ deposits reached a total of LL 1,786 billion despite stagnation witnessed

in the Lebanese market.

Audi Private Bank has complied with the group decision to distribute dividends. As a result, APB’s net interest income went down from

LL 44 billion to LL 41 billion. This decrease was offset by a year-on-year increase of 13% in non-interest income recording LL 20 billion.

Mainly driven by net fees and commissions income (+9.97%).

Adding to the above, net recoveries on credit losses and provision on impairment of financial instruments equal to LL 1.54 billion.

Within the context of a better control of expenses, APB has managed to decrease YoY by 10% its General operating expenses moving

from LL 28 billion to LL 25 billion.

Audi Private Bank has succeeded to maintain its fast growing track, by achieving YoY an increase of the net profit 6.73% (LL 32 billion).

12

FINANCIAL HIGHLIGHTS 201506

Audi Private Bank sal

BANK AUDI

BANK AUDI salBeirutHEADQUARTERS Tel: +961 1 994 000Bank Audi Plaza Fax: +961 1 990 555Bab Idriss Customer Helpline: +961 4 727777P.O. Box 11-2560 contactus@bankaudi.com.lbBeirut, Lebanon bankaudigroup.com

COUNTRY MANAGEMENT - LEBANONBank Audi Palladium Tel: +961 1 994 000Bab Idriss Fax: +961 1 990 555P.O Box 11-2560 contactus@bankaudi.com.lbBeirut, Lebanon bankaudi.com.lb

M1 Building Tel: +961 1 994000Bab Idriss Fax: +961 1 990555P.O. Box 11-2560 contactus@bankaudi.com.lbBeirut, Lebanon bankaudi.com.lb

BANK AUDI FRANCE saParis Tel: +33 1 53 83 50 0073 Champs-Elysées Avenue Fax: +33 1 42 56 09 74 75008 Paris, France contactus@bankaudi.fr bankaudi.fr

BANK AUDI LLC

DohaQatar Financial Centre Tower, 18th Fl. Tel: +974 44967365Diplomatic Area, West Bay Fax: +974 44967373P.O. Box 23270 contactus.qatar@bankaudipb.comDoha, Qatar bankaudipb.com

BANK AUDIINVESTMENT BANK

AUDI INVESTMENT BANK salBeirut Bank Audi Plaza Tel: +961 1 994 000Block B, Bab Idriss Fax: +961 1 999 406P.O. Box 16-5110 contactus@bankaudiib.comBeirut, Lebanon bankaudigroup.com

BANK AUDIPRIVATE BANK

AUDI PRIVATE BANK salBeirutHEAD OFFICEBank Audi Plaza Tel: +961 1 954 800, 954 900Block D, Bab Idriss Fax: +961 1 954 880P.O. Box 11-1121 contactus.lebanon@bankaudipb.comBeirut, Lebanon bankaudipb.com

BRANCHBank Audi Plaza Tel: +961 1 954 800, 954 900Block D, Bab Idriss Fax: +961 1 991 287, 954 841Beirut, Lebanon principale@bankaudipb.com

BANQUE AUDI (SUISSE) SA

HEAD OFFICEGeneva Tel: +41 22 704 11 1118, Cours des Bastions Fax: +41 22 704 11 00P.O. Box 384 contactus.gva@bankaudipb.com1211 Geneva 12, Switzerland bankaudipb.com

REPRESENTATIVE OFFICEBeirutBank Audi PlazaBab IdrissP.O. Box 11-2666 Tel: +961 1 977 544Beirut, Lebanon Fax: +961 1 980 535

AUDI CAPITAL (KSA) cjscRiyadh2980 Centria Bldg., 3rd Floor, PrinceMohammad Bin Abdul Aziz Road(Tahlia). Postal Address: Unit No. 28 Tel: +966 1 2199300Ar Riyadh 12241-6055 Fax: +966 1 4627942P.O. Box 250744 Riyadh 11391 contactus@audicapital.comKingdom of Saudi Arabia audicapital.com

AUDI CAPITAL GESTION samMonaco Tel: +377 97 97 65 11Monte-Carlo Palace Fax: +377 97 97 65 193-9 Boulevard des Moulins contactus.mc@bankaudipb.comMC - 98000 Monaco bankaudipb.com

BANK AUDI salAbu Dhabi REPRESENTATIVE OFFICEEtihad Towers, Tower 3, 15th Fl. Tel: +971 2 6331180Office 1503, Corniche Street Fax: +971 2 6336044P.O. Box 94409 Abu Dhabi contactus.abu-dhabi@bankaudipb.comUnited Arab Emirates bankaudipb.com

13Annual Report 2015

BANK AUDI ADDRESSES07

Nothing is more valuable than family. At Bank Audi Private Bank, we believe that the most important bonds are the ones forged over time.

Beyond sharing your region and culture, we also share your values, giving us a deeper understanding of who you are. It is for this reason that we can create the most effective strategies to help you manage your wealth and ensure a prosperous future for your family. Our private bankers understand that true wealth isn’t an inheritance passed down, but rather the wisdom of an entire generation.

Every banker knows the value of wealth.Few know the wealth of values.

bankaudipb.com