1

INVESTOR

PRESENTATION 3rd Quarter 2013 |

Financial Performance

2

Agenda

Operating Environment

Results Overview

Performance Trends: 3rd Quarter 2013

Summary

3

Operating Environment

4

No major changes… lower growth ahead

2013: Structural issues to restrain global growth, hampered by high debt, sovereign crisis and political

holdups. MENAT to outperform G3 with higher expected growth levels...

Global GDP | Average growth (%) MENAT GDP | Average growth (%)

G3: below-potential growth. High debt and unemployment to

constrain prospects.

Subdued growth will hinder demand for commodities

especially in developing countries.

MENAT growth as expected is slower, while there is an

urgent need to create jobs.

GCC: Low demand and high supply are likely to keep oil

prices low throughout the year hindering economic

performance, but public spending will support demand.

MENAT banking: is adequately capitalized and enjoys a

higher profitability when compared to G20 countries.

Key takeaways

Source: IMF 2013 Data base, World Bank & Burgan Bank Economic Research 2013.

0

2

4

6

8

10

12

14

16

182003-2010

2011-2018

0

2

4

6

8

10

12

14

16

182003-2010

2011-2018

MENAT employment and growth (2001 = 100)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

% % MENA

5

Algeria Foreign Exchange Regulations

Source: Burgan Bank Economic Research.

WHAT

HAPPENED?

According to new regulations, banks will NOT be able to charge an extra spread for

the FX transactions and will have to cover these operations at the effective

coverage rate set by the CBA.

The measure mostly impacts the foreign trade operations as all other FX operations

of banks are limited.

WHY IT

HAPPENED?

WHAT IS THE

IMPACT ON

SYSTEM?

April 2013: Central Bank of Algeria (CBA) issued new regulations and laws regarding the

Foreign Exchange Operations

The CBA is increasing regulation on banks, standardizing banking products, and

reducing profitability by setting pricing limits.

This set of measures is expected to increase the development of the local economy

by fostering banks’ lending in local currency.

From the domestic economy’s standpoint, as a result of the new measure, banks

are losing profitability while importers are gaining it, de facto a wealth transfer from

banks to importers.

6

Results Overview

7

9 Months 2013: Key Highlights

REVENUE GREW BY 34.8% (9M’13 VS. 9M’12) REACHING KD 187.3M

NIM’S ADVANCED TO REACH 2.61%(1), HIGHEST UNDERLYING LEVELS

OPERATING PROFIT REACHING KD 105.4M GROWING BY 21.5% (9M’13 VS. 9M’12)

NET INCOME REACHING KD 65.0M GROWING BY 23.0%(2) (9M’13 VS. 9M’12)

ENHANCED ASSET QUALITY; WITH IMPROVED NPA RATIO AND BETTER COVERAGE RATIO

BUILD UP ADDITIONAL PRECAUTIONARY RESERVE OF KD 47.5M (GENERAL PRECAUTIONARY RESERVE KD 42.5M & SPECIFIC PRECAUTIONARY RESERVE KD 5M)

NPA RATIO DECLINED FROM 8.8% IN 9M’12 TO 4.7% IN 9M’13

COVERAGE RATIO(3) IMPROVED FROM 55% TO 101%

MAINTAINED GROWTH YOY & QOQ IN BALANCE SHEET; SUPPORTED BY INTERNATIONAL

OPERATIONS PERFORMANCE

LOANS GROWING BY 27.6% YOY & 4.3% QOQ

DEPOSITS GROWING BY 29.2% YOY & 4.9% QOQ

OPTIMIZING BALANCE SHEET WITH SOUND LIQUIDITY LEVELS AND STABLE CAPITAL

BUFFER WITH CAR AT 17.6%

Solid Operating

Performance enabled us to accelerate

reserves build up

Healthy Balance

Sheet generating resilient

stream of earnings

Asset Quality in comfortable levels with

effective risk

management

(1) NIM’s excluding 1 off’s items. (2)Excl. additional precautionary reserves of KD 47.5m for 9m’13. (3)Total Provisions(General + Specific) to NPA’s.

8

Performance Trends –

3rd Quarter 2013

9

15.2

2.5

31.0

17.7

Q3'12 Q3'13

Net Profit | KD million(1)

Cost of Credit | KD million(1) Revenue | KD million(1)

Strong Financial and Operating Performance…

Key Indicators(1)

Burgan Bank Group 9M’12 9M’13

Revenue Growth (YoY) 11.1% 34.8%|17.3%(2)

Operating Profit Growth (YoY) 10.3% 21.5%|21.9%(2)

Cost to Income Ratio 37.5% 43.7%|35.1%(2)

Jaws Ratio (YoY) (1.5%) (22.2%)|6.0%(2)

Loans to Cust. Deposits 83.6% 82.6%|76.4%(2)

Liquidity Ratio(3) 34.8% 32.2%|35.8%(2)

NPA Ratio 8.8% 4.7%

NPA net of Collateral Ratio 3.7% 1.8%

ROE | ROE ex. Additional Provisions 14.1%|16.1% 4.8%|18.1%

ROTE | ROTE ex. Additional Provisions 23.1%|26.4% 7.5%|28.6%

130.8

167.6

8.1

19.6

138.9

187.2

9M'12 9M'13

(1)Figures are reported after consolidation adjustments, (2)Excl. BBT contribution in Q3’13 (3)Liquid assets comprises of Cash & Cash eq., Treasury bills & bonds and Due from Banks & OFIs.

Additional precautionary reserves.

∆ 34.8%

45.3

54.3 2.9

5.9

48.2

60.3

Q3'12 Q3'13

∆ 25.2%

1 offs Revenues items.

15.9 16.7

6.5

47.5

22.4

64.2

9M'12 9M'13

2,894 3,673

6.4 8.6 2.5

31.0

8.9

39.5

Q3'12 Q3'13

Gross Loans in KD million. Additional precautionary reserves

46.4

17.6

6.5

47.5

52.9

65.0

9M'12 9M'13(10.3)

20.7

10

…with improved underlying Net Interest

Income

30.6 29.7

35.2 38.0

39.3

0.2 0.5

(0.2)

5.0 2.8

30.8 30.2

35.0

43.0 42.2

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

25.6 28.0

28.7 29.9

26.8

30.8

23.5

30.2

104.6

118.9

FY 11 FY 12

Q2 Q2

Q1 Q1

2.64% 2.45% Net Interest

Margins(1)

2.58% 2.18%

2.49% 2.91% 2.80%

Ne

t In

tere

st

Inc

om

e | K

Dm

n

(1)FY NIM’s figures calculated based on the average of LTM of Interest Earning Assets.

Q3

Q3

1 offs Revenues items.

2.57%

2.15% 2.50% 2.57% 2.61%

Net Interest Margins. Net Interest Margins ex. 1 offs items.

11

…and Non-Interest Income

9.3 10.1 10.3 11.9

10.6

4.8 4.6

6.3

8.0

2.1

0.1 0.1

0.7

1.6

0.0

0.7 0.2

0.9

2.6

4.2

2.5

5.9

2.7

3.8

1.2 17.4

21.1 21.0

27.9

18.1

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

38.1 38.1

7.8

17.6 1.6

2.2

6.2

2.0 5.1

6.7 58.8

66.6

FY 11 FY 12

36.0% 35.9% 36.1% 35.3% 37.4% 39.4% 30.0%

No

n-I

nte

res

t In

co

me

| K

Dm

n(1

)

Fees & Commissions FX Income Dividend Security Gains Other Income Non-Interest Income

Non-Interest

Income(1) to

Revenues

(1)Q4 2012 excludes KD4.6m one off consolidation gains on BBT reported in Non Interest Income.

2.7 5.7 2.3 6.6 3.1

1 off’s items in KD million.

12

Strengthen / Diversified Balance Sheet

2,211 2,218 2,298 2,407 2,485

1,119

1,677 1,670

1,694 1,819

3,330

3,895 3,968

4,101

4,303

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

2,029 2,054 2,048 2,055 2,130

755

1,331 1,318 1,351 1,422

2,783

3,384 3,366 3,406

3,553

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

27.1% 39.3% 39.1% 39.7%

40.0%

Cu

sto

me

r L

oa

ns

| K

Dm

n

Cu

sto

me

r D

ep

os

its

| K

Dm

n

83.6% 86.9% 84.8%

83.1% 82.6%

33.6%

42.3%

International

Contribution

Loans to

Deposits

Kuwait International Customer Loans Kuwait International Customer Deposits

Customer loans and Customers deposits figures after consolidation adjustments.

13

…and effectively managed risk position

8.8%

5.6% 5.6%

4.2% 4.7%

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

NPA’s to Gross Facilities NPA’s net of collateral to Gross Facilities

3.7%

1.8% 1.8% 1.9% 1.8%

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

NPL KPIs

Indicators Q3’12 Q2’13 Q3’13

Gross Loans 2,894 3,536 3,673

NPL’s 253 188 219

NPL Ratio 8.8% 5.3% 6.0%

NPL, net of

collateral 2.5% 2.1% 2.1%

NPL Coverage, net

of collateral 154% 175% 157%

Non Performing Assets (KD million) and Coverage Ratio

341 267 277

206 237

143 86 90 92 94

188 194 202 226 238

131%

226%

226% 246%

254%

55% 73% 73%

110% 101%

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

NPA NPA net of collateral Total provisions Coverage net of collateral Coverage Ratio

14

ROE(1) ROTE(1)

13.8% 7.9%

13.4% 10.0%

(8.1%)

2.4% 9.9%

4.5% 10.0%

25.8%

16.2% 17.8% 17.9%

20.0%

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

22.4% 12.5%

21.5% 15.6%

(12.3%)

4.0% 16.1%

7.5% 16.3%

40.8%

26.4% 28.6% 29.0%

31.9%

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

… with stable shareholder returns

(1) Quarterly ROE & ROTE are Annualized.

Quarterly Net Profit | KD million

Additional precautionary reserves Additional precautionary reserves

16.1 9.2

17.5 13.6 15.2

7.9 4.0 2.5

16.1 17.1 17.5 17.6 17.7

15.2 9.2

15.6 12.3

(10.3)

2.5 10.8

5.0 11.5

31.0

17.7 20.0 20.6

23.8

2011 Quarterly Net Profits 2012 Quarterly Net Profits 2013 Quarterly Net Profits Additional precautionary

reserves

Q3’11 Q3’12 Q4’11 Q4’12 Q1’12 Q1’13 Q2’12 Q2’13 Q3’12 Q3’13

20.7

17.7% 28.5%

15

Burgan Bank –

By Country

16

Healthy balance sheet growth driving

Franchisees performance……

71.8

86.9

9M'12 9M'13

31.0

33.3

9M'12 9M'13

24.5

28.6

9M'12 9M'13

9.5

12.6

9M'12 9M'13

2.5

4.8

9M'12 9M'13

Kuwait

Jordan

Algeria

Iraq

Tunisia

24.3

9M'12 9M'13Turkey

2,029

2,130

9M'12 9M'13

520

521

9M'12 9M'13

209

263

9M'12 9M'13

30

49

9M'12 9M'13

5

8

9M'12 9M'13

592

9M'12 9M'13

2,211

2,485

9M'12 9M'13

596

663

9M'12 9M'13

243

324

9M'12 9M'13

212

319

9M'12 9M'13

68

86

9M'12 9M'13

427

9M'12 9M'13

Revenue(1) Loans Deposits

(1)Figures are reported before consolidation adjustments; Sub debt cost allocated to subsidiaries.

17 (1)Reported contribution excluding consolidated adjustments, with Sub Debt cost allocated to subsidiaries. (2)Net profit to BB Share Excluding Additional Precautionary Reserve of KD 47.5mn for 9M’13. (3)Turkey 9M’13 Net Profit Non Meaningful.

Burgan Bank Contribution Summary 9M’13(1)

71.3%

54.0%

45.6%

57.7%

59.8%

59.0%

6.1%

18.4%

17.5%

15.4%

14.6%

14.0%

16.4%

17.7%

15.0%

7.5%

7.4%

6.5%

0.4%

12.8%

9.9%

16.6%

12.6%

4.3%

6.5%

6.6%

7.4%

1.4%

5.5%

1.8%

2.9%

2.5%

2.0%

0.2%

2.5%

Net Profit

OperatingProfit

Revenue

CustomerDeposits

CustomerLoans

Total Assets

Kuwait Jordan Algeria Turkey Iraq Tunisia

Diversification Benefits Burgan Balance

Sheet / P&L…

(2)(3)

18

Kuwait Operations

19 (1)Excluding Corporate office figures from contribution.

Total Assets | KD billion(1)

Q3'12 Q3'13

Wholesale Retail Private Treasury & Investment

3.7 4.2

Burgan Bank Kuwait – Business Contribution

Total Assets

KDmn

Revenues | KD million(1)

9M'12 9M'13

Wholesale Retail Private Treasury & Investment

68.8 79.4

Operating Profit | KD million(1)

Revenues

KD mn

9M'12 9M'13

Wholesale Retail Private Treasury & Investment

44.8 53.6

Operating

Profit KD mn

Ke

y A

ch

ieve

me

nts

Corporate Banking granted credit facilities limits to 21 new

clients with total limits of KD 47.6M. 1

Wholesale assets grew by 1.6% and revenues grew by

8.4%. 2

Private Banking assets grew by 24.0% and revenues grew

by 62.2%. 3

Treasury & Investment assets grew by 16.1% and revenues

grew by 38.3%. 4

65%

13%

11% 12%

57%

17%

14%

13%

64%

8%

16%

13%

78%

(2%)

13% 11%

42%

10%

14%

35%

45%

10%

12%

33%

20

Revenue | KD million Operating Profit(1) | KD million

Retail Operating Performance

3.0 3.3 4.2 4.1

5.2 0.4 0.7

0.7 1.0

0.6

3.3 4.0

4.9 5.1 5.9

2.6% 2.9% 3.4% 3.1% 5.2%

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 (0.1)

0.4

1.8 1.5

2.2

0.0% 11.1%

36.9% 29.0%

37.9%

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

Operating ProfitOperating Profit Margins

Net Interest Income Non Interest Income

Revenues NIMs

(1)Operating Profit Margins: Q3 2012 Figures are Non Meaningful.

BB Kuwait Retail - Portfolio Vintage Lines

342

344 336

349

362

Q3'12 Q4'12 Q1'13 Q2'13 Q3'13

Re

tail

Re

va

mp

ed

Str

ate

gy Shift to Higher Income salaried & SME Banking. 1

Auto Loans / Fleet Car business launched since

May ’13. 2

Expansion of Credit cards portfolio via Co Branded

cards. (Q4 ‘13). 3

Retail Banking received an award in Q2’2013 for

Best Domestic Retail Bank of Year Asian Banking &

Finance Magazine 2013.

5

Retail Banking staff realigned to the requirement of

Retail Bank strategy to Balanced Business growth.

Enhancing staff skills via Training workshops &

Role Plays under “Driven by You”.

4

Total Assets | KD million

-1%

0%

1%

2%

3%

4%

5%

6%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2007 2008 2009 2010 2011 2012 2013

21

Performance vs. Peers

22

27.6%

9.3%

3.5%

7.2%

3.6%

BB

NBK

GBK

CBK

ABK

29.2%

16.0%

4.2%

15.6%

-1.4%

34.8%

-3.7%

-7.0%

6.9%

-4.7%

7.5%

15.8%

7.2%

1.9%

6.6%

21.0% 28.6%

Customer Deposits

Growth %

Customer Loans

Growth % ROTE(1)(2) %

Revenue

Growth %

…Outperforming Peers – Both Local (9M 2013 vs. 9M 2012)

(1)Burgan Bank ROTE exclude additional precautionary reserves of KD 47.5m for 9M’13. (2)Annualized ROTE based on Open Equity.

Burgan Bank Additional precautionary reserves impact

23

…and Regional (9M 2013 vs. 9M 2012)

27.6%

27.4%

10.3%

9.3%

10.1%

45.7%

5.9%

5.7%

33.3%

BB

QNB

ENBD

NBK

SFB

Audi

AUB

Blom

CBQ

29.2%

23.3%

6.8%

16.0%

6.9%

17.6%

19.5%

4.2%

38.4%

34.8%

28.9%

13.9%

-3.7%

1.5%

0.1%

9.5%

3.0%

8.1%

33.8%

11.8%

16.4%

18.5%

13.1%

12.7%

15.8%

11.4%

20.7%

7.5%

14.1%

21.0%

11.8%

16.4%

32.6%

13.1%

12.7%

15.8%

11.4%

20.7%

28.6%

Customer Deposits

Growth %

Customer Loans

Growth % ROTE(1)(2) %

Revenue

Growth %

(1)Burgan Bank ROTE exclude additional precautionary reserves of KD 47.5m for 9M’13. (2)Annualized ROTE based on Open Equity.

46.3%

AUB adjusted for 1 off gain of US$ 212.9mn in Q1’13

from Sale of its stake in Ahli Bank of Qatar.

Burgan Bank Additional precautionary reserves impact

24

Summary

25

… In Summary

MACRO No major changes with lower growth and weak fundamentals still

persist; new FX regulation and law in place in Algeria

GROWTH

NIM’S

ASSET

QUALITY

RETURNS

Healthy Balance Sheet maintained growth YoY & QoQ with

International operations contributed 40.9% of Total Assets

Advanced to reach 2.61%(1) backed by exposure to high growth

markets delivering resilient underlying operating performance

In Comfortable Levels, NPA ratio at 4.7% & provisions coverage at 101%

Maintaining high underlying returns with 9M’13 ROE at 18.1%(2) &

ROTE at 28.6%(2)

(1)NIM’s excluding 1 off’s items. (2)ROE & ROTE exclude additional precautionary reserves. Note: Annualized ROE & ROTE based on Open Equity.

26

Thank You

27

The information contained in this document has been provided on the basis of current

knowledge, assumptions and expectations. In the event that any information is incorrect or

any party misrepresented, Burgan Bank and its consultants cannot be held responsible for

this. Various factors could cause future results, performance or events to differ materially from

those given in this document. No obligation is undertaken to update this document or the

statements / information contained in it. The information contained in this document should by

no means be interpreted as an invitation to making any investment decision based on the

same. Our continuous advice is that every investor must rely on his/her own advisor and

resources to ensure the correctness of the information presented to him/her and then makes

his/her investment decision accordingly.

Disclaimer