INVESTOR PRESENTATION MARCH 2018 Disclaimer THIS PRESENTATION IS - PowerPoint PPT Presentation

INVESTOR PRESENTATION MARCH 2018

Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR THE UNITED STATES.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”) Yoy SAOG or was USD million 2014 2015 2016 2017 Q1-18 Q1-17 Change established in the Sultanate of Oman ( “Oman”) in January 1990 as a public joint stock company and is engaged in retail banking, Total Assets 8,296 9,333 10,265 11,030 10,914 10,621 293 corporate banking, investment banking and treasury services. Establishment Total Equity 845 1,238 1,387 1,525 1,510 1,352 158  Second largest listed bank in Oman by total assets as at 30 th April 2018 which currently stand at USD 10.914 billion and has Net Loans, approximately 1,505 employees as at 31 st of Mar 2018. Advances & 5,856 7,089 7,763 8,439 8,365 8,005 360  Offers both conventional and Islamic products. Financing to Customers  Operates a network of 70 branches with 60 conventional branches, 10 Islamic branches, total 181 ATM/CDM/FFM Customer Deposits 6,447 6,733 7,494 7,970 8,202 8,125 77 machines made up of 121 Automated Teller Machines Operations Total Operating (“ATMs”), 49 Cash and Cheque Deposit Machines (“CCDMs”) 257 299 331 330 86 83 3 Income and 11 Full Function Machines (“FFMs”) as at 31 st Mar 2018  Net Profit 105 121 124 124 35 32 3 Offers its services and products exclusively within Oman.  Tier 1 Ratio 10.76% 12.68% 12.77% 13.29% 13.05% 12.56% 0.49% Operates via business divisions: Retail Banking, Wholesale Banking, Treasury and FI Banking, Islamic Banking (as a Capital Adequacy 14.05% 14.70% 14.41% 15.44% 14.03% 14.16% (0.13%) separate window) and Government Banking.  Retail and Wholesale Banking represents the Bank’s largest Ownership Structure (as at 31 st Mar 2018) Business business segments, collectively contributing to 85% of the total BankDhofar is listed on the Muscat Securities Market (MSM) with a market assets and 87% of the net operating income as at 31 st Dec Segments capitalisation of USD 1,254 billion as at 31 st March 2018 2017.  Civil Service Pension Fund In 2013, MAISARAH (the Islamic Banking window) was 8.3% 10.3% Ministry of Defence Pension Fund launched, offering retail and corporate Shari'ah-compliant 6.3% 8.8% Public Authority of Social Insurance financial services and products to its customers. State General Reserve Fund 6.8% Credit Ratings Dhofar Intl. Development & Investment Holding Co. 8.5% 2.8% Rating Agency Date Long Term Rating Malatan Trad. & Contracting Co. 1.2% 8.3% Eng. Abdul Hafidh Salim Rajab Al Ajuaili & his Cos. July 2017 Baa3 Al Ratib Commercial Company 10.0% H.E. Yousuf bin Alawi bin Abdullah & his Cos. May 2018 BB+ 28.0% Qais Omani Establishment 4 Other Represent Govt. Entities/ownership 29.0% Conversion Rate: 1.00 OMR = 2.5974 USD Source: BankDhofar’s Annual Report

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  29% Government ownership in the Bank enabling strong  Products offered through a large number of delivery relations with local government departments. channels (70 branches, 181 ATMs/CDM/FFM made up  Supplier of banking services and products to the employees of 121ATMs, 49 CCDMs and 11 FFM as at 31 st Mar 18) of the Ministry of Education, the Ministry of Health and the 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 decline in NPL possible, by offering alternatives to the traditional branch ratios from 4.75% in 2010 to 3.27% as at 31 st Mar 2018. 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 BankDhofar expand the network strategically across Oman.  Net profit for the three period ended 31 sy March 2018 Increased by 8.64% (vs. Mar-17). Robust Corporate Governance and Risk Management 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 products across business segments. Islamic Banking Window Experienced Management  Introduction of MAISARAH in March 2013 offering Shari’ah  Experienced and dedicated management team with compliant products and services to retail and corporate many years of regional and global experience with customers.  leading financial institutions in both conventional One of the fastest growing Islamic banking windows in Oman banking and Islamic finance. in asset book and customer base.  Recognized as the "Best Islamic Bank in Oman" in 2016 by Middle East Banking Awards. 6

A Leading Omani Bank TOTAL ASSETS NET PROFIT USD million, 31 st March 2018 USD million, 31 st March 2018 Bank Muscat 29,364 Bank Muscat 116 Bank Dhofar 10,914 Bank Dhofar 35 National Bank of Oman 9,371 National Bank of Oman 33 Bank Sohar 7,595 Bank Sohar 23 HSBC Bank 21 HSBC Oman 6,263 Ahli Bank 18 Ahli Bank 5,485 0 20 40 60 80 100 120 140 0 5000 10000 15000 20000 25000 30000 35000 NET LOANS TOTAL CUSTOMER DEPOSITS USD million, 31 st March 2018 USD million, 31 st March 2018 Bank Muscat 19,820 Bank Muscat 22,038 Bank Dhofar 8,202 Bank Dhofar 8,365 National Bank of Oman 6,841 National Bank of Oman 6,973 HSBC Oman Bank Sohar 5,124 5,645 Bank Sohar Ahli Bank 4,595 4,301 Ahli Bank HSBC Oman 3,707 3,981 0 5000 10000 15000 20000 25000 0 5000 10000 15000 20000 25000 NET LOANS GROWTH CUSTOMER DEPOSIT GROWTH Per cent., 31 ST March 2018 Per cent., 31 st March 2018 Ahli Bank 15.04% Ahli Bank 19.04% Bank Sohar 13.50% National Bank of Oman 4.08% HSBC Bank 13.13% HSBC Bank 1.61% Bank Muscat 6.00% Bank Dhofar 0.95% Bank Dhofar 4.50% Bank Muscat 0.49% National Bank of Oman -4.11% Bank Sohar -1.56% 7 Conversion Rate: 1.00 OMR = 2.5974 USD Source: Banks’ Annual Reports

A Leading Omani Bank OPERATING INCOME GROWTH COST TO INCOME RATIO Per cent. (%), 31 st March 2018 Per cent. (%), 31 st March 2018 Bank Sohar 23.38% Ahli Bank 36.86% Ahli Bank 20.85% Bank Sohar 43.12% 17.79% HSBC Bank Muscat 44.56% Bank Dhofar 3.11% National Bank of Oman 47.18% Bank Muscat 0.69% Bank Dhofar 49.91% National Bank of Oman -5.96% HSBC 56.53% OPERATING COST INCREASE RETURN ON EQUITY Per cent. (%), 31 st March 2018 Per cent. (%), 31 st March 2018 National Bank of Oman -0.65% HSBC 10.30% HSBC Oman 4.10% Bank Muscat 10.01% Bank Muscat 7.30% Ahli Bank 9.59% 8.00% Ahli Bank Bank Dhofar 9.44% Bank Dhofar 11.99% Bank Sohar 9.18% Bank Sohar 14.41% National Bank of Oman 8.77% BRANCHES (Domestic) NPL RATIO CAPITAL ADEQUACY RATIO 31 st March 2018 Per cent. (%), 31 st March 2018 Per cent. (%), 31 st March 2018 National… Ahli Bank Ahli Bank 1.20% 17.30% 20 Bank Sohar Bank Sohar Bank Muscat 17.15% 33 2.17% National Bank of Oman 68 Bank Muscat HSBC Oman 16.20% 3.00% Bank Dhofar 70 Bank Dhofar 3.27% Ahli Bank 15.54% HSBC Oman 74 HSBC Oman 3.76% Bank Sohar 14.53% Bank Muscat 157 National Bank… Bank Dhofar 4.15% 14.03% 0 20 40 60 80 100 120 140 160 180 8 Conversion Rate: 1.00 OMR = 2.5974 USD Source: Banks’ Annual Reports