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

INVESTOR PRESENTATION JUNE 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Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR THE UNITED STATES.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-H1 2019- YoY- USD Million 2015 2016 2017 2018 established in the Sultanate of Oman ( “Oman”) in January 1990 H1 Change as a public joint stock company and is engaged in retail banking, Total Assets 9,332 10,265 11,031 10,943 10,998 10,886 -112 corporate banking, investment banking and treasury services. Establishment  Second largest listed bank in Oman by total assets as at 30 th Total Equity 1239 1390 1525 1813 1528 1766 238 June 2019 which currently stand at USD 10.886 billion and has approximately 1,603 employees as at 30 th of June 2019. Net Loans, Advances  Offers both conventional and Islamic products. & Financing to 7,088 7,764 8,439 8,205 8,119 7,966 -153 Customers  Operates a network of 71 branches with 61 conventional Customer Deposits 6,732 7,493 7,969 7,595 8,102 7,508 -594 branches (including 1 corporate center), 10 Islamic branches, total 191 ATM/CDM/FFM machines made up of 121 Automated Total Operating 299 330 330 348 167 170 3 Teller Machines (“ATMs”), 56 Cash and Cheque Deposit Operations Income Machines (“CCDMs”) and 14 Full Function Machines (“FFMs”) Net Profit 122 125 125 130 65 51 -14 as at 30 th June 2019  Offers its services and products exclusively within Oman. 9.43% 9.85% 10.53% 11.88% 10.32% 11.45% 1.13% CET 1 Ratio  Operates via business divisions: Retail Banking, Wholesale 14.70% 14.41% 15.44% 17.33% 14.09% 16.60% 2.51% Capital Adequacy Banking, Treasury and FI Banking, Islamic Banking (as a Ownership Structure (as at 30 th June 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 June 2019 Business business segments, collectively contributing to 80% of the total assets and 86% of the net operating income as at 30 th June Segments Civil Service Pension Fund 10.9% 10.5% 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 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 OMR = 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 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 June of the Ministry of Education, the Ministry of Health and the 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 1.97% as at 30 th June 2019 (*Net of interest network including internet banking, mobile banking reserve and ECL provision); Net NPL before ECL provision 3.62%. Operating Performance and Profitability  Conservative lending policy has allowed the Bank to achieve a continued decline in non-performing loans and limited  Strong financial performance has helped Bank Dhofar formation of new NPLs. expand the network strategically across Oman.  Prudent lending policy.  Net profit for the quarter ended 30 th June 2019 Decreased by -20.99% USD 51.2M. (vs. Jun-18 USD Robust Corporate Governance and Risk Management 64.6 M.). Culture Strong Brand Recognition  Particular focus on maintaining the highest standards of 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, 30 th June 2019 USD million, 30 th June 2019 Bank Muscat 31,182 Bank Muscat 243.2 Bank Dhofar 10,886 National Bank of Oman 65.7 National Bank of Oman 9,309 Bank Dhofar 51.2 Bank Sohar 8,366 HSBC 50.0 Oman Arab Bank Bank Sohar 6,439 48.3 Ahli Bank HSBC Oman 38.8 6,400 Oman Arab Bank 38.3 Ahli Bank 6,190 0.0 50.0 100.0 150.0 200.0 250.0 300.0 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 NET LOANS TOTAL CUSTOMER DEPOSITS USD million, 30 th June 2019 USD million, 30 th June 2019 Bank Muscat 20723 Bank Muscat 23,580 Bank Dhofar 7508 Bank Dhofar 7,966 National Bank of Oman 6465 National Bank of Oman 7,311 HSBC Oman 5265 Bank Sohar 6,265 Bank Sohar Ahli Bank 5056 5,162 Oman Arab Bank Oman Arab Bank 5031 5,078 Ahli Bank HSBC Oman 3,634 4188 0 5000 10000 15000 20000 25000 - 5,000 10,000 15,000 20,000 25,000 NET LOANS GROWTH CUSTOMER DEPOSIT GROWTH 30 th June 2019 30 th June 2019 Bank Sohar Ahli Bank 10.09% 14.09% Oman Arab Bank Bank Sohar 9.73% 9.58% Oman Arab Bank Ahli Bank 6.90% 7.17% Bank Muscat Bank Muscat 6.28% 3.71% 0.07% National Bank of Oman National Bank of Oman 5.51% -1.07% HSBC Oman HSBC Oman 0.14% Bank Dhofar Bank Dhofar -1.88% -7.33% Conversion Rate: 1.00 OMR = 2.5974 USD 7 Source: Banks’ Annual & Quarterly Reports Comparison includes only MSM listed banks, Excluding Islamic banks