INVESTOR PRESENTATION SEPTEMBER 2019 Disclaimer THIS PRESENTATION - PowerPoint PPT Presentation

INVESTOR PRESENTATION SEPTEMBER 2019

Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR THE UNITED STATES. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF AN OFFER TO SELL OR TO ISSUE ANY SECURITIES OR SOLICITATION OF AN OFFER TO PURCHASE, SUBSCRIBE OR SELL SECURITIES IN ANY JURISDICTION. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. 2

Table of Contents Section 1 4-8 Bank Dhofar Overview Section 2 10-11 Operating Environment Business Overview 13-14 Section 3 Section 4 16-25 Financial Performance Section 5 27-28 Appendix 3

BankDhofar Overview Snapshot of BankDhofar Financial Highlights  BankDhofar ( “ BankDhofar ” “the Bank”) SAOG or was 2018-Q3 2019- YoY- established in the Sultanate of Oman ( “Oman”) in January 1990 USD Million 2015 2016 2017 2018 Q3 Change as a public joint stock company and is engaged in retail banking, corporate banking, investment banking and treasury services. Total Assets 9,332 10,265 11,031 10,943 11,073 10,416 (657)  Second largest listed bank in Oman by total assets as at 30 th Establishment September 2019 which currently stand at USD 10.416 billion and Total Equity 1239 1390 1525 1813 1556 1784 228 has approximately 1,605 employees as at 30 th of September Net Loans, Advances 2019. & Financing to 7,088 7,764 8,439 8,205 8,273 7,905 (368)  Offers both conventional and Islamic products. Customers  Operates a network of 71 branches with 61 conventional Customer Deposits 6,732 7,493 7,969 7,595 7,899 7,081 (818) branches (including 1 corporate center), 10 Islamic branches, total 191 ATM/CDM/FFM machines made up of 121 Automated Total Operating 299 330 330 348 257 256 (1) Teller Machines (“ATMs”), 56 Cash and Cheque Deposit Operations Income Machines (“CCDMs”) and 14 Full Function Machines (“FFMs”) Net Profit 122 125 125 130 94 68 (26) as at 30 th September 2019  Offers its services and products exclusively within Oman. 9.43% 9.85% 10.53% 11.88% 10.25% 12.42% 2.17% CET 1 Ratio  Operates via business divisions: Retail Banking, Wholesale 14.70% 14.41% 15.44% 17.33% 14.52% 18.11% 3.59% Capital Adequacy Banking, Treasury and FI Banking, Islamic Banking (as a Ownership Structure (as at 30 th September 2019) separate window) and Government Banking. BankDhofar is listed on the Muscat Securities Market (MSM) with a market  Retail and Wholesale Banking represents the Bank’s largest capitalisation of USD 1,052 Million as at 30 th September 2019 Business business segments, collectively contributing to 84% of the total assets and 84% of the net operating income as at 30 th Segments Civil Service Pension Fund 10.9% 10.5% September 2019. 5.3% Ministry of Defence Pension Fund 7.0%  In 2013, MAISARAH (the Islamic Banking window) was Public Authority of Social Insurance launched, offering retail and corporate Shari'ah-compliant 8.8% financial services and products to its customers. 9.8% Dhofar Intl. Development & Investment Holding Co. Credit Ratings Eng. Abdul Hafidh Salim Rajab Al Ajuaili & his Cos. Rating Agency / Long term deposit Date Long Term Rating H.E. Yousuf bin Alawi bin Abdullah & his Cos. Sep 2019 Ba2 24.4% Qais Omani Establishment 23.4% Jul 2019 BB Other 4 Represent Govt. Entities/ownership 24.7% Conversion Rate: 1.00 OMR = 2.5974 USD Source: BankDhofar’s Annual& Quarterly Reports

BankDhofar’s Historic Evolvement B ANK D HOFAR HAS BEEN SERVING O MANI CUSTOMERS SINCE 1990 Bank purchases the assets and liabilities of BCCI Bank's 10 th anniversary and a BankDhofar al Omani al Islamic banking window, USD 300m Tier 1 Bond (Bank of Credit and Fransi and Majan new head office building MAISARAH launched successfully launched opened Commerce International) International Bank merger from the Central Bank 1992 1999 2003 2013 2015 2016 1990-91 2012 2001 2003 Bank launched its Bank acquires assets and liabilities of Bank hires Boston Bank acquires 16 Transformation Journey in Banque Paribas in Oman Consulting Group (“BCG”) branches from Change of name to “Together 2020” Staff to align its strategy with a “ BankDhofar ” Commercial Bank of Convention and regional Operations start as "BankDhofar al 5-year business plan Oman Roadshow Omani al Fransi" 5 Source: BankDhofar

Key Credit Strengths Developed & Diversified Distribution & Delivery Strong Relations with the Omani Government Channels  25% Government ownership in the Bank enabling strong  Products offered through a large number of delivery relations with local government departments. channels (71 branches, 191 ATMs/CDM/FFM made up  Supplier of banking services and products to the employees of 121 ATMs, 56 CCDMs and 14 FFM as at 30 th of the Ministry of Education, the Ministry of Health and the September 2019) alongside innovative technology. Ministry of Defense.  Focus on determining optimal channel mix to customers that will maximize revenue (or reduce costs) without reducing customer satisfaction or engagement Strong Asset Quality  Actively reduce its retail customer servicing costs, where  Continued improvement in asset quality with a relatively low possible, by offering alternatives to the traditional branch Net NPL ratio at 2.17% as at 30 th September 2019. network including internet banking, mobile banking  Conservative lending policy has allowed the Bank to achieve a continued decline in non-performing loans and limited Operating Performance and Profitability formation of new NPLs.  Prudent lending policy.  Strong financial performance has helped Bank Dhofar expand the network strategically across Oman.  Net profit for the quarter ended 30 th September 2019 Decreased by 28.95% USD 67.3M. (vs. Sep-18 USD Robust Corporate Governance and Risk Management 94.8M.). Culture Strong Brand Recognition   Particular focus on maintaining the highest standards of Well recognized brand in the Omani market, reflecting high-quality customer service and established track corporate governance with a well-established Risk record in retail banking, corporate banking. Management framework.  Proven track record in offering innovative and reliable Islamic Banking Window products across business segments.  Introduction of MAISARAH in March 2013 offering Shari’ah compliant products and services to retail and corporate Experienced Management customers.  One of the fastest growing Islamic banking windows in Oman in  Experienced and dedicated management team with asset book and customer base. many years of regional and global experience with  Best Islamic Retail Bank Oman 2017 – Maisarah Islamic leading financial institutions in both conventional Banking by Global Banking & Finance Review banking and Islamic finance.  Best Islamic bank in Oman - Maisarah Islamic Banking Services at the Middle East Banking Awards 2017 and 2018 (EMEA Finance). 6  Most innovative Islamic Bank in Oman by the International Finance Banking in 2018.

Omani Banking Sector Comparison TOTAL ASSETS NET PROFIT USD million, 30 th September 2019 USD million, 30 th September 2019 Bank Muscat 31,958 Bank Muscat 366.2 Bank Dhofar 10,416 National Bank of Oman 98.7 National Bank of Oman 9,361 Bank Dhofar 67.5 Bank Sohar 8,670 HSBC 67.5 Oman Arab Bank Bank Sohar 6,377 64.9 Ahli Bank HSBC Oman 59.7 6,421 Oman Arab Bank 51.9 Ahli Bank 6,540 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 NET LOANS TOTAL CUSTOMER DEPOSITS USD million, 30 th September 2019 USD million, 30 th September 2019 Bank Muscat 21205 Bank Muscat 23,286 Bank Dhofar 7081 Bank Dhofar 7,904 National Bank of Oman 6543 National Bank of Oman 7,208 Bank Sohar 5179 Bank Sohar 6,434 HSBC Oman Ahli Bank 5166 5,353 Oman Arab Bank Oman Arab Bank 5005 5,104 Ahli Bank HSBC Oman 3,836 4216 0 5000 10000 15000 20000 25000 - 5,000 10,000 15,000 20,000 25,000 NET LOANS GROWTH CUSTOMER DEPOSIT GROWTH 30 th September 2019 30 th September 2019 Bank Sohar Bank Sohar 11.54% 16.19% Bank Muscat Ahli Bank 10.16% 5.62% Oman Arab Bank Oman Arab Bank 4.76% 7.31% Ahli Bank National Bank of Oman 5.31% 3.55% 2.40% HSBC Oman HSBC Oman 2.60% 0.75% National Bank of Oman Bank Muscat 1.26% Bank Dhofar Bank Dhofar -4.44% -10.35% Conversion Rate: 1.00 OMR = 2.5974 USD 7 Source: Banks’ Annual & Quarterly Reports Comparison includes only MSM listed banks, Excluding Islamic banks