INVESTOR PRESENTATION SEPTEMBER 2018 Disclaimer THIS PRESENTATION - PowerPoint PPT Presentation

INVESTOR PRESENTATION SEPTEMBER 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Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR THE UNITED STATES.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 Q3-18 Q3-17 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 9,332 10,265 11,030 11,072 10,575 497 corporate banking, investment banking and treasury services. Total Equity 845 1,239 1,387 1,525 1,557 1,398 159  Second largest listed bank in Oman by total assets as at 30 th Establishment September 2018 which currently stand at USD 11.072 billion and Net Loans, has approximately 1,598 employees as at 30 th of September Advances & 5,857 7,088 7,764 8,439 8,272 8,247 25 2018. Financing to  Offers both conventional and Islamic products. Customers  Operates a network of 71 branches with 61 conventional Customer Deposits 6,447 6,732 7,494 7,970 7,899 8,056 -157 branches, 10 Islamic branches, total 186 ATM/CDM/FFM Total Operating machines made up of 122 Automated Teller Machines 257 299 331 330 261 244 17 Income (“ATMs”), 52 Cash and Cheque Deposit Machines (“CCDMs”) Operations and 12 Full Function Machines (“FFMs”) as at 30 th September Net Profit 105 121 124 124 95 90 5 2018 Tier 1 Ratio 10.76% 12.68% 12.77% 13.29% 12.95% 12.18% 0.77%  Offers its services and products exclusively within Oman. Capital Adequacy 15.44% 14.52% 14.61% -0.09% 14.05% 14.70% 14.41%  Operates via business divisions: Retail Banking, Wholesale Banking, Treasury and FI Banking, Islamic Banking (as a Ownership Structure (as at 30 th September 2018) 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 1.020 billion as at 30 th September 2018 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 9.9% 10.3% September 2018. 6.3% Ministry of Defence Pension Fund 8.3%  In 2013, MAISARAH (the Islamic Banking window) was Public Authority of Social Insurance launched, offering retail and corporate Shari'ah-compliant 7.0% financial services and products to its customers. 8.6% Dhofar Intl. Development & Investment Holding Co. Credit Ratings Rating Agency Date Long Term Rating Eng. Abdul Hafidh Salim Rajab Al Ajuaili & his Cos. July 2017 Baa3 H.E. Yousuf bin Alawi bin Abdullah & his Cos. 21.7% Qais Omani Establishment May 2018 BB+ 28.0% Other 4 Represent Govt. Entities/ownership Conversion Rate: 1.00 OMR = 2.5974 USD 27.3% 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  27% Government ownership in the Bank enabling strong  Products offered through a large number of delivery relations with local government departments. channels (71 branches, 186 ATMs/CDM/FFM made up  Supplier of banking services and products to the employees of 122 ATMs, 52 CCDMs and 12 FFM as at 30 th Sep of the Ministry of Education, the Ministry of Health and the 2018) 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 NPL ratio at 3.51% as at 30 th September 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 nine-month period ended 30 th September 2018 Increased by 4.86% OMR 36.485 M. Robust Corporate Governance and Risk Management (vs. Sep-17 OMR 34.793M.). 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  Introduction of MAISARAH in March 2013 offering Shari’ah compliant products and services to retail and corporate Experienced Management customers.  Experienced and dedicated management team with  One of the fastest growing Islamic banking windows in Oman many years of regional and global experience with in asset book and customer base. leading financial institutions in both conventional  Best Islamic Retail Bank Oman 2017 – Maisarah Islamic banking and Islamic finance. Banking by Global Banking & Finance Review  Best Islamic bank in Oman - Maisarah Islamic Banking Services at the Middle East Banking Awards 2017 (EMEA 6 Finance).

Omani Banking Sector Comparison TOTAL ASSETS NET PROFIT USD million, 30 th September 2018 USD million, 30 th September 2018 Bank Muscat 30,568 Bank Muscat 350 Bank Dhofar 11,072 National Bank of Oman 99 National Bank of Oman 9,007 Bank Dhofar 95 Bank Sohar 7,710 HSBC 65 Bank Sohar 57 HSBC Oman 6,099 Ahli Bank 56 Ahli Bank 5,849 0 50 100 150 200 250 300 350 400 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 NET LOANS TOTAL CUSTOMER DEPOSITS USD million, 30 th September 2018 USD million, 30 th September 2018 Bank Muscat 17,602 Bank Muscat 20,174 Bank Dhofar 7,899 Bank Dhofar 8,272 National Bank of Oman 6,495 National Bank of Oman 6,843 HSBC Oman Bank Sohar 5,044 5,769 Bank Sohar Ahli Bank 4,859 4,459 Ahli Bank HSBC Oman 3,739 4,071 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 - 5,000 10,000 15,000 20,000 25,000 NET LOANS GROWTH CUSTOMER DEPOSIT GROWTH USD million, 30 th September 2018 USD million, 30 th September 2018 Ahli Bank 13.09% Ahli Bank 8.10% HSBC Oman 8.05% Bank Muscat 4.91% Bank Sohar 5.83% Bank Sohar 4.49% Bank Muscat 5.55% National Bank of Oman 0.39% Bank Dhofar 0.31% Bank Dhofar -1.94% National Bank of Oman -2.03% HSBC Oman -3.06% Conversion Rate: 1.00 OMR = 2.5974 USD 7 Source: Banks’ Annual & Quarterly Reports Comparison includes only MSM listed banks, Excluding Islamic banks