ALM Bank

Balance sheet - Assets(Thousand USD) 31/12/2017 31/12/2016 31/12/2015 31/12/2014

Cash 89,053 79,634 67,139 93,546

Central Bank 1,419,628 1,390,204 1,404,857 926,601
DEPOSITS WITH BANKS: 733,885 974,022 1,055,071 695,359
of which: Short - up to 1 year 697,191 925,321 1,002,317 660,591
of which: Medium - over 1 year 36,694 48,701 52,754 34,768
Treasury Bills at Amortized Cost 1,563,639 1,274,709 1,106,428 1,179,357
Government Securities at Amortized Cost 998,221 1,053,547 890,687 926,738
Reverse Repos 252,286 0 0 0
Central Bank CDs at Amortized Cost 1,096,948 963,647 1,129,099 1,096,162
Financial Instruments at FVTPL 85,354 81,117 70,945 130,242
LOANS AND ADVANCES:
Short Term 1,841,925 1,724,331 1,588,784 1,340,344
Medium/long term (MLT) 816,909 796,826 600,962 641,491
Of which are non-performing Loans 143,271 167,071 124,845 125,332
GROSS LOANS AND ADVANCES 2,658,835 2,521,156 2,189,746 1,981,834
Loan- loss Reserve 128,548 132,476 126,281 120,328
NET LOANS LOANS AND ADVANCES 2,530,287 2,388,680 2,063,464 1,861,507
Debtors by Acceptances 78,159 54,266 57,504 52,364
SUBSIDIARIES & AFFILIATES 3,862 3,862 3,862 3,862
FIXED ASSETS 94,568 87,726 78,490 73,817
OTHER ASSETS 145,507 161,954 149,908 91,881
TOTAL ASSETS 9,091,399 8,513,369 8,077,455 7,131,436

CONTINGENT ACCOUNTS:
Documentary L/Cs 116,544 158,271 282,900 45,849
Bid/Performance/Retention Bonds 467,532 436,926 87,112 0
TOTAL CONTINGENT ACCOUNTS 584,076 595,197 370,012 45,849

BALANCE SHEET - LIABILITIES(Thousand USD) 12/2017 12/2016 12/2015 12/2014

SHORT - TERM INTERBANK LIABILITIES:
ST Placements From Banks 310,785 199,750 234,228 177,471
Acceptances 78,159 54,266 57,504 52,364
Repos With Banks 0 0 0 0
Interbank Liability to Parent/Related Party 0 0 0 0
Total SHORT-TERM INTERBANK LIABILITIES 388,944 254,017 291,732 229,834
CUSTOMER DEPOSITS:
Demand 1,078,685 868,151 804,914 724,261
Savings 373,542 349,422 323,766 290,736
Time 5,460,119 5,223,286 5,265,382 4,693,765
Other 919,340 995,189 704,720 622,905
TOTAL CUSTOMER DEPOSITS 7,831,686 7,436,049 7,098,783 6,331,667
TOTAL DEPOSITS +ST INTERBANK LIABILITIES 8,220,630 7,690,065 7,390,515 6,561,501
NON-BANK SHORT-TERM DEBT 0 0 0 0
MEDIUM/LONG TERM FUNDING 0 0 0 0
SUBORDINATED DEBT (fully eligibile for Tier 2 Capital) 75,000 75,000 0 0
OTHER LIABILITIES 58,503 64,286 55,552 42,692
TOTAL LIABILITIES 8,354,134 7,829,351 7,446,067 6,604,194

CAPITAL:
Common Shares 176,944 164,164 151,533 126,538
Preferred Shares 143,767 143,767 143,767 96,324
Legal and statuatory reserves 154,826 133,261 111,945 100,367
Retained Earnings 258,043 239,406 220,986 201,378
Other Reserves (all of which are eligible for CET1 capital) 3,686 3,420 3,157 2,636
TOTAL CAPITAL 737,265 684,018 631,388 527,243
TOTAL LIABILITIES + TOTAL CAPITAL 9,091,399 8,513,369 8,077,455 7,131,437

Total Risk Weighted Assets/ Total Assets (%) as per local stds 55% 54% 57% 59%

PROFIT AND LOSS ACCOUNT (Thousand USD) Dec-17 Dec-16 Dec-15 Dec-14
Interest Income 442,051 408,666 405,403 374,493
Interest Expense 304,636 279,867 267,962 264,501
Net Interest Income 137,414 128,799 137,441 109,992
Net Fees and Commissions 36,604 35,299 31,258 28,477
FX Trading Income 6,584 13,616 14,713 5,195
Derivatives Income
Gain/Loss on Securities 12,064 9,643 2,799 7,804
Other Investment Income 3,745 2,730 4,899 3,129
Gain/Loss on Real Estate Held For Investment -23 -80 -83 446
Share of Profits From Associates
Net Insurance Income
Other Income 4,312 1,303 1,857 1,763
TOTAL NON-INTEREST INCOME 63,285 62,510 55,442 46,815
GROSS INCOME 200,700 191,309 192,883 156,807
Operating Expenses 112,842 103,382 99,160 82,760
OPERATING PROFIT 87,858 87,927 93,723 74,047
Total Provisionning Expenses 1,188 -1,474 -7,129 2,929
GROSS PROFIT/LOSS 89,046 86,452 86,594 76,975
Extraordinary Items Tax & Equivalent -15,495 -14,685 -15,369 -13,342
NET PROFIT (or- Loss) 73,550 71,767 71,225 63,634

Proposed Cash Dividends 18,522 18,524 17,460 14,138

ALM Bank
PERFORMANCE RATIOS 31/12/2017
A. SIZE FACTORS (USD mn)
1. Total Assets 9,091
2. Total Capital 737
3. Net Profit 74
B. ASSET QUALITY
4. Total Assets Growth Rate (YoY%) 6.79%
5. Estimated Non-Performing Loans (NLPs) Net Accrestion Rate (%) -14.25%
6. NPL Ratio (%) 5.39%
7. NPAs (including NPLs) to Total Assets (%) 4.22%
8. Loan-Loss Reserve To NPLs (%) 89.72%
9. Loan-Loss Reserve To Gross Loans (%) 4.83%
10. Unprovided Non-Performing Loans To Free Capital (%) 2.30%
11. Effective NPL Coverage Ratio (Times) 5.36
12. Unprovided NPLs To Operating Profit (Months) 2.01
13. Loan-Loss Provisioning Expense To Gross Loans (%) 0.04%
15. Total Contingents To Total Assets (%) 6.42%
C. CAPITAL ADEQUACY
16. Reported Common Equity Tier 1 Ratio To Local Standards (%) 11.87%
17. Reported Tier 1 Ratio To Local Standards (%) 14.74%
18. Reported Total Capital Adequency Ratio To Local Standrads (%) 16.24%
19. Internal Capital Generation (%) 8.04%
20. Total Capital Growth Rate (YOY %) 7.78%
21. Total Capital To Total Assets (%) 7.78%
22. Total Capital To Gross Loans (%) 27.73%
23. Free Capital (USD mn) 639
24. Free Capital To Total Capital (%) 86.65%
25. Dividend Payout Ratio (%) 25.18%
D. LIQUIDITY
26. STABLE FUNDS (USD mn) 8,546
27. Net Loans to Total Assets (%) 27.83%
28. Net Loans To Total Customer Deposits (%) 32.31%
29. Net Loans to Total Deposits (%) 15.76%
30. Net Loans To Stable Funds (%) 29.61%
31. Net Investments To Total Assets (%) 41.18%
E. PROFITABILITY
39. Return on Average Assets (%) 0.84%
40. Operating Profit To Average Assets (%) 1.00%
41. Gross Income to Average Assets (%) 2.28%
42. Estimated Funding Cost (%) 3.46%
43.Estimated Interest on Average Total Assets (%) 5.02%
44. Estimated Net Interest Margin (%) 1.56%
45. Non-Interest Income To Gross Income (%) 31.53%
46. Operating Expenses To Gross Income (%) 56.22%
47. Operating Expenses To Average Assets (%) 1.28%
48. Operating Profit Growth Rate (YOY %) -0.08%
49. Risk Provisioning Expense To Operating Profit (%) 1.35%
50. Return on Average Equity (%) 10.35%
RATES
Exchange Rate (Units per USD) 1507.5
Inflation Rate (%) N/A
Weighted average cost of USD deposits N/A
Weighted average cost of LBP deposits N/A
Average Assets (mn) 8,802
Average Common Equity (in mn) 567
Average Equity (in mn) 711
31/12/2016 31/12/2015 31/12/2014

8,513 8,077 7,131

684 631 527
72 71 64

5.40% 13.27% N/A

33.82% -0.39% N/A
6.63% 5.70% 6.32%
4.90% 4.37% 4.08%
79.29% 101.15% 96.01%
5.25% 5.77% 6.07%
5.84% -0.26% 1.11%
4.34 5.41 4.55
4.72 -0.18 0.81
-0.06% -0.33% 0.15%
6.99% 4.58% 0.64%

11.75% 10.59% 10.24%

14.88% 13.71% 12.53%
16.51% 13.71% 12.53%
10.76% 13.11% N/A
8.34% 19.75% -
8.34% 19.75% -
27.13% 28.83% 26.60%
592 549 450
86.61% 86.96% 85.27%
25.81% 24.51% 22.22%

8,103 7,648 6,781

28.06% 25.55% 26.10%
32.12% 29.07% 29.40%
15.79% 14.24% 14.44%
29.48% 26.98% 27.45%
39.62% 39.58% 46.73%

0.87% 0.94% N/A

1.06% 1.23% N/A
2.31% 2.54% N/A
3.37% 3.52% 7.42%
4.93% 5.33% -
1.55% 1.81% -
32.68% 28.74% 29.85%
54.04% 51.41% 52.78%
1.25% 1.30% N/A
-6.18% 26.57% N/A
-1.68% -7.61% 3.95%
10.91% 12.29% N/A

1507.5 1507.5 1507.5

N/A N/A N/A
N/A N/A N/A
N/A N/A N/A
8,295 7,604 N/A
514 459 -
658 579 -