INVESTOR PRESENTATION MARCH 2019 Disclaimer THIS PRESENTATION IS - PowerPoint PPT Presentation

INVESTOR PRESENTATION MARCH 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Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR THE UNITED STATES.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 BankDhofar 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 Yoy. established in the Sultanate of Oman ( “Oman”) in January 1990 USD million 2015 2016 2017 2018 Q1-2018 Q1-2019 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 11,030 10,944 10,914 11,416 501 Establishment  Second largest listed bank in Oman by total assets as at 31 st March 2019 which currently stand at USD 11,416 billion and has Total Equity 1,239 1,387 1,525 1,813 1,509 1,761 252 approximately 1,603 employees as at 31 st of March 2019. Net Loans, Advances &  Offers both conventional and Islamic products. 7,088 7,764 8,439 8,205 8,366 8,078 -288 Financing to Customers  Operates a network of 71 branches with 61 conventional Customer Deposits 6,732 7,494 7,970 7,596 8,203 7,842 -361 branches (including 1 corporate center), 10 Islamic branches, total 190 ATM/CDM/FFM machines made up of 120 Automated Total Operating Income 299 331 330 348 86 88 3 Teller Machines (“ATMs”), 56 Cash and Cheque Deposit Operations Machines (“CCDMs”) and 14 Full Function Machines (“FFMs”) Net Profit 121 124 124 131 35 33 -3 as at 31 st March 2019 CET 1 Ratio 9.43% 9.85% 10.53% 11.88% 10.33% 11.74% 1.41%  Offers its services and products exclusively within Oman.  Capital Adequacy 14.70% 14.41% 15.44% 17.33% 14.03% 17.04% 3.01% Operates via business divisions: Retail Banking, Wholesale Banking, Treasury and FI Banking, Islamic Banking (as a Ownership Structure (as at 31 st March 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 billion as at 31 st March 2019 Business business segments, collectively contributing to 79% of the total Segments assets and 83% of the net operating income as at 31st March Civil Service Pension Fund 10.8% 10.4% 2019. 5.5% Ministry of Defence Pension Fund  7.0% In 2013, MAISARAH (the Islamic Banking window) was launched, offering retail and corporate Shari'ah-compliant Public Authority of Social Insurance 8.8% financial services and products to its customers. 9.8% Dhofar Intl. Development & Investment Holding Co. Credit Ratings Rating Agency Date Long Term Rating Eng. Abdul Hafidh Salim Rajab Al Ajuaili & his Cos. March 2019 Ba1 H.E. Yousuf bin Alawi bin Abdullah & his Cos. 24.4% Qais Omani Establishment 23.4% March 2019 BB Other 4 Represent Govt. Entities/ownership Conversion Rate: 1.00 USD = 2.5974 USD 24.7% 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 Strong Relations with the Omani Government Developed & Diversified Distribution & Delivery Channels  25% Government ownership in the Bank enabling strong relations with local government departments.  Products offered through a large number of delivery  Supplier of banking services and products to the employees channels (71 branches, 190 ATMs/CDM/FFM made up of 120 ATMs, 56 CCDMs and 14 FFM as at 31 st Mar of the Ministry of Education, the Ministry of Health and the Ministry of Defense. 2019) alongside innovative technology.  Focus on determining optimal channel mix to customers that will maximize revenue (or reduce costs) without Strong Asset Quality reducing customer satisfaction or engagement  Continued improvement in asset quality with a relatively low  Actively reduce its retail customer servicing costs, where Net NPL ratio at 1.11% as at 31 st March 2019. possible, by offering alternatives to the traditional branch  Conservative lending policy has allowed the Bank to achieve network including internet banking, mobile banking a continued decline in non-performing loans and limited formation of new NPLs.  Prudent lending policy. Operating Performance and Profitability  Strong financial performance has helped BankDhofar expand the network strategically across Oman. Net profit for the quarter ended 31 st March 2019  Decreased by -7.25% USD 32.72M. (vs. Mar-18 USD Robust Corporate Governance and Risk Management 35.33M.). Culture  Particular focus on maintaining the highest standards of Strong Brand Recognition corporate governance with a well-established Risk  Well recognized brand in the Omani market, reflecting Management framework. high-quality customer service and established track record in retail banking, corporate banking. Islamic Banking Window  Proven track record in offering innovative and reliable  Introduction of MAISARAH in March 2013 offering Shari’ah products across business segments. compliant products and services to retail and corporate customers. Experienced Management  One of the fastest growing Islamic banking windows in Oman in asset book and customer base.  Experienced and dedicated management team with  Best Islamic Retail Bank Oman 2017 – Maisarah Islamic many years of regional and global experience with Banking by Global Banking & Finance Review leading financial institutions in both conventional  Best Islamic bank in Oman - Maisarah Islamic Banking Services banking and Islamic finance. 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, 31st March 2019 USD million, 31st March 2019 Bank Muscat 31,114 Bank Muscat 119 Bank Dhofar 11,416 Bank Dhofar 33 National Bank of Oman 9,265 National Bank of Oman 32 Bank Sohar 8,021 Bank Sohar 26 HSBC 21 HSBC Oman 6,117 Ahli Bank 19 Ahli Bank 6,197 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 NET LOANS TOTAL CUSTOMER DEPOSITS USD million, 31st March 2019 USD million, 31st March 2019 Bank Muscat 8,042 Bank Muscat 9,158 Bank Dhofar 3,019 Bank Dhofar 3,110 National Bank of Oman 2,532 National Bank of Oman 2,779 HSBC Oman Bank Sohar 1,912 2,337 Bank Sohar Ahli Bank 1,964 1,818 Ahli Bank HSBC Oman 1,291 1,693 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 NET LOANS GROWTH CUSTOMER DEPOSIT GROWTH 31 st March 2019 31st March 2019 Ahli Bank 10.45% Ahli Bank 11.00% Bank Sohar 9.80% Bank Muscat 7.93% Bank Muscat 5.39% Bank Sohar 7.52% 3.24% National Bank of Oman National Bank of Oman -1.11% -3.07% HSBC Oman Bank Dhofar -3.43% Bank Dhofar -4.39% HSBC Oman -9.53% Conversion Rate: 1.00 USD = 2.5974 USD 7 Source: Banks’ Annual & Quarterly Reports Comparison includes only MSM listed banks, Excluding Islamic banks