MBA COMMUNITY LOANS PLC

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2 DIRECTORS' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 7 JULY 2017 REGISTERED NO

3 CONTENTS Page(s) Directors and Other Information Directors' Report Statement of Directors' Responsibilities Independent Auditor's Report Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements

4 DIRECTORS AND OTHER IN.FORMATION Company Number Directors Secretary and Corporate Service Provider Registered Office Independent Auditor Banks Lisa Hand Roddy Stafford Link IFS Limited (formerly Capita International Financial Service (Ireland) Limited) 2 Grand Canal Square Grand Canal Harbour Dublin2 Ireland 2 Grand Canal Square Grand Canal Harbour Dublin 2 Ireland KPMG I Harbourmaster Place IFSC Dublin I Ireland HSBC Bank Pie City of London Commercial Centre 28 Borough High Street London SE I l YB England Barclays Bank Pie PO Box299 Birmingham 81 3PF England Trustee Loan Servicer, Manager, Transfer Agent and Calculation Agent Legal Advisors Listing Agent Link Corporate Trustees (UK) Limited (formerly Capita Trust Company Limited) 6th Floor 65 Gresham Street London EC2V 7NQ England Prodigy Finance Limited Palladium House 1-4 Argyll Street London WlF 7LD England LK Shields Solicitors 39/40 Upper Mount Street Dublin 2 Ireland Matheson 70 Sir John Rogerson's Quay Dublin2 Ireland

5 DIRECTORS' REPORT The Directors present their report, together with the audited financial statements of MBA Community Loans PLC ("the Company") for the year ended 7 July PRINCIPAL ACTIVITY AND FUTURE DEVELOPMENTS The principal activity of the Company is to invest in student loan assets, the acquisition of which, is funded by the issue of notes to investors. These notes are issued in separate series. The Company does not undertake any business other than the acquisition, holding, financing, selling and granting of security over its assets. As at 7 July 2017, MBA Community Loans PLC had notes in issue to the value of 239 million (2016: 142 million). No significant changes in the principal activities of the Company are anticipated. The principal risks for the Company are dealt with in note 15 to the accounts. Each Series of notes is segregated from each other. EVENTS THAT OCCURRED DURING THE YEAR The Company issued 50 series of notes, and subsequently cancelled 6 series without any subscriptions ever having been made during the year ended 7 July The nominal amounts for these series are listed in note 13 'Debt securities issued'. Series 57 XS USD Series 97 XS Series 73 xs USD Series 98 XS Series 74 XS GBP Series 99 xs Series 75 XS GBP Series 100 xs Series 76 XS GBP Series 101 XS Series 77 xs l GBP Series 102 xs Series 78 XS USD * Series 103 xs Series 79 XS EUR Series 104 xs Series 80 XS USD Series 106 XS Series 81 xs EUR Series 107 XS Series 82 XS USD Series 108 xs Series 83 XS USD Series 109 xs l Series 84 xs l USD Series 110 XS Series 85 XS USD Series 111 xs Series 86 XS USD Series 112 xs l Series 87 XS USD Series 113 xs Series 88 XS GBP Series 114 xs Series 89 xs USD Series 115 XS Series 90 xs USD Series 116 XS Series 91 XS USD* Series 117 xs Series 92 XS USD Series 118 XS Series 93 XS USD Series 119 XS Series 94 xs USD * Series 120 XS Series 95 XS USD Series 121 XS Series 96 XS EUR Series 122 xs l GBP USD USD * USD USD GBP EUR EUR USD * USD USD USD USD USD USD * USD USD USD EUR USD USD USD USD USD USD *It was decided by the Board not to proceed with the issuance of this Series. No other significant events occurred during the year. RESULTS AND DIVIDENDS The Company made a profit after taxation for the year ended 7 July 2017 of 654,756 (2016: loss of1,057,418). No dividend has been proposed by the Directors for the year ended 7 July 2017 (2016: Nil). 2

6 DIRECTORS' REPORT - continued BUSINESS REVIEW AND KEY PERFORMANCE INDICATORS During the year ended 7 July 2017, the Company purchased additional portfolios of student loan assets. The acquisition of these assets was funded by the issue of notes to investors. These notes were issued in 44 additional series and 24 new tranches. As at 7 July 2017, MBA Community Loans PLC had notes in issue to the value of 239 million (2016: 142 million). There has been significant revenue growth during the year ended 7 July 2017 with the launch of the 44 additional series of loan backed debt securities. Finance income has increased from 7,206,387 in the year ended 7 July 2016 to 13,198,762. The gross profit margin for the year ended 7 July 2017 was 4,303,229, an increase of2,509,196 from The profit after taxation of the Company for the year ended 7 July 2017 was 654,756 (2016: loss of1,057,418). The net liability value of the Company as at 7 July 2017 was 656,543 (2016: 1,311,299). The Company's existing loan tranches are holding up well, however, a number of student loans have fallen into arrears and the Company has impaired these loans based on a model developed by the loan servicer. The Company accumulates and retains an interest margin on the spread between the interest rates of the student loans and the interest rates of the notes in issue; the details of which are outlined in note 15 'Financial Risk Management'. It is expected that the accumulated interest margin over the term of the notes will cover potential losses that may arise from student loan defaults and fund the repayment of the notes on maturity. Due to the limited recourse terms of the notes, if the accumulated interest margin is insufficient to cover the student loan defaults, any losses will be borne by the note holders. The Directors believe that the Company is viable and will continue to operate as a going concern. The Company did not have any employees during the year ended 7 July 2017 (2016: Nil). PRINCIPAL RISKS AND UNCERTANTIES The underlying business of the Company, being the purchase of student loan assets and the issuance of notes to investors, is expected to continue in an orderly, consistent manner over the coming year. The principal risk exposures for the Company relate to default by the borrowers, credit risk in dealings with counterparties and interest rate movements. The loan platform has been designed and developed to minimise the risk of arrears and default rates for loans to international students and a risk management framework is in place in order to manage and mitigate remaining risks. The principal risks and uncertainties are discussed in more detail in note 15 'Financial risk management'. Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Company's processes, personnel and infrastructure, and from external factors other than credit, market and liquidity risks such those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise from all of the Company's operations. MAJOR RELATED PARTIES' TRANSACTIONS Lisa Hand who is a Director of the Company, is employed by the corporate secretary and the corporate service provider. The corporate secretary, the corporate service provider and the security trustee are all companies whose ultimate parent is Link Administration Holdings Limited ("Link Group"), a company listed on the Australian Stock Exchange. These operating companies provide company administration, trustee and secretarial services to the Company, at normal commercial rates. During the year ended 7 July 2017, fees of160,360 (2016: 121,831) were earned by Link Group, the corporate secretary, the corporate service provider and the security trustee, in respect of corporate secretary, administration fees and trustee services and received the payment of183,918 (2016: 104,077). At 7 July 2017, there was outstanding balance of5,750 (2016: 29,308) owed by the Company. The Loan Servicer, Prodigy Finance Limited provides loan servicing, transfer agent and collection agent services to the Company. Management fees charged by Prodigy Finance Limited totalled 3,200,645 (2016: I, 788,110) and Administration fees - origination fees, split between Prodigy Finance Limited and Prodigy Services Limited, totalled 947,529 (2016: 662,725) and Prodigy Finance Limited received the payment of 3,153,028 (2016: 1,698,447) for management fee and 947,529 (2016: 662,725) for administration fees-origination fees in the year ended 7 July At 7 July 2017, Prodigy Investments Limited held 13,875,311 (2016: Nil) of the Company's notes with accrued interest of 277,861 (2016: Nil). At 7 July 2017, there were outstanding balances of259,463 (2016: 211,846) owed by the Company in respect of management fee and Nil (2016: Nil) owed by the Company in respect of administration-origination fees respectively. 3

7 DIRECTORS' REPORT - continued ACCOUNTING RECORDS The Directors believe that they have complied with the requirements of Sections 281 to 285 of the Companies Act 2014 with regard to adequate accounting records by engaging a service provider who employs accounting personnel with the appropriate expertise and by providing adequate resources to the finance function. The accounting records of the Company are maintained at 2 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland. POST BALANCE SHEET EVENTS The Company issued 12 series of notes, and subsequently cancelled Series 123 without any subscriptions ever having been made, between 8 July 2017 and 6 November Series 123 XS USD * NIA Series 126 xs USD 1,510,500 Series 134 XSl USD 1,612,260 Series 141 XS EUR 5,772,434 Series 142 XS EUR 3,250,000 Series 144 xs EUR 2,395,108 Series 145 XS EUR 4,014,558 Series 146 xs EUR 750,000 Series 147 XS GBP 3,086,511 Series 150 XS GBP 484,900 Series 151 xs GBP 500,000 Series 152 xs l GBP 544,300 *It was decided by the Board not to proceed with the issuance of this Series. On 4 August 2017, the Company sold the Student Loans that secured payment of the Series 74, 119 and 120 Notes and has used the sales price of the Student Loans on 14 August 2017 to discharge all payment obligations that had accrued or were owing on the sale date with respect to the relevant Series. There have been no other post balance sheet events that require disclosure in the financial statements. DIRECTORS' AND SECRETARY'S INTERESTS The Directors and Secretary who held office on 7 July 2017 do not hold shares in the Company at that date or during the period. Lisa Hand who is Director of the Company, is employed by the corporate secretary and the corporate service provider. The corporate secretary, the corporate service provider and the security trustee are all companies whose ultimate parent is Link Administration Holdings Limited ("Link Group"), a company listed on the Australian Stock Exchange. These operating companies provide company administration, trustee and secretarial services to the Company, at normal commercial rates. See following the persons who, during the financial year, were directors of the Company. Unless otherwise indicated, they served for the entire financial year: Lisa Hand Roddy Stafford Christian Currivan (alternate to Roddy Stafford) John Naughton (alternate to Lisa Hand) Marion Walsh (alternate to Lisa Hand) (appointed from 3 August 2016 to 12 August 2016) (appointed for 24 August 2016, 28 December 2016 & 10 January 2017) (appointed for 23 November 2016) REGISTERED ADDRESS The Company's registered address is 2 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland. POLITICAL DONATIONS The Company made no political donations during the year ended 7 July 2017 (2016: Nii). 4

8 DIRECTORS' REPORT - continued INDEPENDENT AUDITOR In accordance with Section 383(2) of the Companies Act 2014, the auditors KPMG, Chartered Accountants will continue in office. STATEMENT ON RELEVANT AUDIT INFORMATION In accordance with Section 330 of the Companies Act 2014, each Director at the date of approval of this report confirms that: so far as he/she is aware, there is no relevant audit information of which the Company's auditors are unaware; and the Directors have taken all steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditors are aware of this information. DIRECTORS' COMPLIANCE POLICY STATEMENT The Directors acknowledge that they are responsible for securing the Company's compliance with its relevant obligations as defined in section 225 of the Companies Act 2014 and hereby confirm that they have completed the following: l. drafted and reviewed a Compliance Policy Statement, setting out the Company's policies (that, in the Directors' opinion, are appropriate to the Company) respecting compliance by the Company with its relevant obligations; 2. put in place appropriate arrangements and structures that are, in the Directors' opinion, designed to secure material compliance with the Company's relevant obligations; and 3. have conducted a review of the aforementioned arrangements and structures during the financial year. 5

9 DIRECTORS' REPORT- continued CORPORATE GOVERNANCE STATEMENT Introduction The Company is subject to and complies with Irish Statute comprising the Companies Act 2014 and the listing rules of the Irish Stock Exchange which are applicable to debt listed companies. The Company does not apply additional requirements in addition to those required by the above. Each of the service providers engaged by the Company is subject to their own corporate governance requirements. Financial Reporting Process The Board of Directors (the "Board") is responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of failure to achieve the Company's financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board has established processes regarding internal control and risk management systems to ensure its effective oversight of the financial reporting process. These include appointing the Administrator, Link IFS Limited, to maintain the accounting records of the Company independently of Prodigy Finance Limited as Loan Servicer and Link Corporate Trustees (UK) Limited as Trustee. The Administrator is contractually obliged to maintain proper books and records as required by the Corporate Administration agreement. To that end the Administrator performs reconciliations of its records to those of the Loan Servicer and Trustee. The Administrator is also obliged to prepare for review and approval by the Board the annual and semi-annual reports including financial statements intended to give a true and fair view. The Board evaluates and discusses significant accounting and reporting issues as the need arises. From time to time the Board also examines and evaluates the Administrator's financial accounting and reporting routines and monitors and evaluates the external auditors' performance, qualifications and independence. The Administrator has operating responsibility for internal control in relation to the financial reporting process and the Administrator's report to the Board. Risk Assessment and Risk Management The Board is responsible for assessing the risk of irregularities whether caused by fraud or error in financial reporting and ensuring the processes are in place for the timely identification of internal and external matters with a potential effect on financial reporting. The Board has also put in place procedures and processes to identify changes in accounting rules and recommendations and to ensure that these changes are accurately reflected in the Company's financial statements. These procedures have been in place since incorporation and are regularly reviewed by the Board. More specifically, the Administrator has a review procedure in place to ensure errors and omissions in the financial statements are identified and corrected and regular training on accounting rules and recommendations is provided to the accountants employed by the Administrator. Control Activities The Administrator is contractually obliged to design and maintain control structures to manage the risks which the Board judges to be significant for internal control over financial reporting. These control structures include appropriate division of responsibilities and specific control activities aimed at detecting or preventing the risk of significant deficiencies in financial reporting for every significant account in the financial statements and the related notes in the Company's annual report. Monitoring The Board has an annual process to ensure that appropriate measures are taken to consider and address the shortcomings identified and measures recommended by the independent auditors. Given the contractual obligations on the Administrator, the Board has concluded that there is currently no need for the Company to have a separate internal audit function in order for the Board to perform effective monitoring and oversight of the internal control and risk management systems of the Company in relation to the financial reporting process. Capital Structure I 00% of the issued shares in the Company are held by Link Trust Nominees No. 1 Limited (formerly Capita Trust Nominees No. I Limited) (the Share Trustee), which is a company incorporated in England and Wales. The Share Trustee holds the benefit of the shares on trust for charity. The Share Trustee has no beneficial interest in and derives no benefit other than its fees for acting as Share Trustee, from its holding of the shares. With regard to the appointment and replacement of Directors, the Company is governed by its Constitution, Irish Statute comprising the Companies Act 2014 and the Listing Rules of the Irish Stock Exchange. The Constitution themselves may be amended by special resolution of the shareholders. 6

10 DIRECTORS' REPORT - continued CORPORATE GOVERNANCE STATEMENT- continued Powers of Directors The Board is responsible for managing the business affairs of the Company in accordance with the Constitution. The Directors may delegate certain functions to the Administrator and other parties, subject to the supervision and direction by the Directors. The Directors have delegated the day to day administration of the Company to the Administrator. The Constitution provide that the Director may exercise all the powers of the Company to borrow money or to mortgage or charge its undertaking, property and uncalled capital or any part thereof and, subject to section 20 of the 1983 Act, to issue debentures, debenture stock or other security whether outright or as security for any debt, liability or obligation of the Company or of any third party without limitation. The Notes are admitted to trading on the regulated market of the Irish Stock Exchange PLC pursuant to the Base Prospectus dated 14 August 2017 ("Base Prospectus"). The Central Bank of Ireland approved the Base Prospectus as meeting the requirements imposed under Irish and EU law pursuant to the Prospectus Directive 2003/71/EC (as amended, including by Directive 2010/73/EU). The takeover bids directive is not applicable as the Company does not have transferable securities carrying voting rights listed on a regulated market. Audit committee Statutory audits in Ireland are regulated by the European Communities S.I. No. 312/ European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No 537/2014) Regulations According to the regulations, if the sole business of the Irish SPY relates to the issuing of asset backed securities, the SPY is exempt from the requirement to establish an audit committee (under Regulation 91(9) (d) of the Regulations). Given the contractual obligations of the Administrator and the limited recourse nature of the securities the Company may participate in, the Board of Directors has concluded that there is currently no need for the Company to have a separate audit committee in order for the Board to perform effective monitoring and oversight of the internal control and risk management systems of the Company in relation to the financial reporting process. Accordingly, the Company has availed itselfofthe exemption under Regulation 91(9)(d) of the regulations. Approved by the Board of Directors and signed on behalfofthe Board: Roddy Stafford Director Date: 6 November 2017 Date: 6 November

11 STATEMENT UF DIRECTORS' RESPONSIBILITIES The Directors are responsible for preparing the Directors' Report and financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law, they have elected to prepare the Company financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and applicable law. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the Company and of its profit or loss for the year. In preparing the financial statements, the Directors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether they have been prepared in accordance with IFRS as adopted by the EU; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are also required by the Transparency (Directive 2004/ 109/EC) Regulations 2007 (the "Transparency Regulations"), to include a management report containing a fair review of the business and a description of the principal risks and uncertainties facing the Company. The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with the Companies Act They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. The Directors are also responsible for preparing a Directors' Report that complies with the requirements of the Companies Act Each of the Directors, whose names and functions are listed on page 1 of these Financial Statements confirm that, to the best of each person's knowledge and belief; the financial statements, prepared in accordance with IFRS as adopted by the EU, give a true and fair view of the assets, liabilities and financial position of the Company at 7 July 2017 and its result for the year then ended; and the Directors' Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces. Approved by the Board of Directors and signed on behalf of the Board: Director Date: 6 November 2017 Roddy Stafford Director Date: 6 November

12 KPMG Audit 1 Harbourmaster Place IFSC Dublin 1 D01 F6F5 Ireland INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MBA COMMUNITY LOANS PLC 1 Opinion: our opinion is unmodified We have audited the financial statements of MBA Community Loans PLC (the "Company") for the year ended 7th July 2017 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Statement of Cash Flows, and the related notes, including the accounting policies in note 2. The financial reporting framework that has been applied in their preparation is Irish Law and International Financial Reporting Standards (IFRS) as adopted by the European Union. In our opinion, the financial statements: give a true and fair view of the assets, liabilities and financial position of the Company as at 7th July 2017 and of its result for the year then ended; have been properly prepared in accordance with IFRS as adopted by the European Union; and have been properly prepared in accordance with the requirements of Companies Act Basis for opinion We conducted our audit in accordance with International Standards on Auditing (Ireland) ("ISAs (Ireland)") and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities section of our report. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the Board of Directors. We were appointed as auditor by the directors for the first period ending on 30 June The period of total uninterrupted engagement is the 7 years ended 7th July We have fulfilled our ethical responsibilities under, and we remained independent of the Company in ac~ordance with, ethical requirements applicable in Ireland, including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority (IAASA) as applied to listed public interest entities. No non-audit services prohibited by that standard were provided. 2 Key audit matters: our assessment of risks of material misstatement Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 9 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (" KPMG International"), a Swiss entity

13 ~ DEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MBA COMMUNITY LOANS PLC (continued) In arriving at our audit opinion above, the key audit matters, in decreasing order of audit significance, were as follows: Ownership and valuation of loans and receivables 175,863,944 ( ,615,466) Refer to page 21 (accounting policy) and page 25 (loans and receivables) and pages 30 to 33 (risk management framework) Description of the key audit matter The Company has purchased students loans amounting to 179,028,480 as at 7th July Due to the nature of the loans, there is a risk over the recoverability of these assets and the carrying value recorded in the financial statements. There is judgement involved in determining the recoverable amount of some of the loans and receivables and the associated impairment provision made on such loans and receivables. During the year a net provision of 1,894, 170 was recorded against the outstanding loan balances resulting in a cumulative provision of 3, 164,536 as at 7th July The net carrying value of loans and receivables recorded in the Company's financial statements as at 7 July 2017 is 175,863,944. How the matter was addressed in our audit Our audit procedures included among others: obtaining and documenting our understanding of the loans and receivables monitoring and impairment process and testing the design and implementation of the relevant controls therein; performing a roll forward of the loans and receivables balances; agreeing 100% of the loans and receivables to independently received confirmation from the loan servicer; agreeing a sample of the loans and receivables to the loan agreements; testing the adequacy of the Company's provisions against loans by assessing the assumptions used and comparing them against the impairment policy set out by the Directors; selecting a sample of student loans and recalculating the expected provision as per the impairment policy and comparing to the provision recorded by the Company on these loans. We found some immaterial differences which were corrected, and have been disclosed in our report to the Board of Directors. 10

14 ~ DEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MBA COMMUNITY LOANS PLC (continued) Ownership and valuation of debt securities issued 194,352,738 ( ,611,064) Refer to page 22 (accounting policy) and pages 27 to 29 (debt securities issued) Description of the key audit matter The Company's debt securities issued make up 96.6% of total liabilities (by value). We do not consider these financial liabilities to be at high risk of significant misstatement, or to be subject to a significant level of judgement. However, due to their materiality in the context of the financial statements as a whole, they were of significance in the audit of the financial statements. How the matter was addressed in our audit Our audit procedures included among others: agreeing 100% of the debt securities issued to independently received confirmation from the trustee; recalculating the outstanding balance of the debt securities issued and comparing to the amount recorded in the financial statements; agreeing the proceeds received from the issuance of the debt securities to bank statements; We noted that management made an impairment charge against the debt securities issued and this has been disclosed in our report to the Board of Directors. 3 Our application of materiality Materiality for the Company's financial statements as a whole was set at 2,004,823 (2016: 1,241,572) determined with reference to a benchmark of total assets of which it represents 1% (2016: 1%) We reported to the Board of Directors any corrected or uncorrected identified misstatements exceeding 100,241, in addition to other identified misstatements that warranted reporting on qualitative grounds. 4 We have nothing to report on going concern We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at least twelve months from the date of approval of the financial statements. We have nothing to report in these respects. 11

15 ~DEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MBA COMMUNITY LOANS PLC (continued) 5 We have nothing to report on the other information in the annual report The Directors are responsible for the other information presented in the annual report together with the financial statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work we have not identified material misstatements in the other information. Corporate governance disclosures As required by the Companies Act 2014, we report, in relation to information given in the Corporate Governance Statement on pages 6 to 7, that: based on the work undertaken for our audit, in our opinion, the description of the main features of internal control and risk management systems in relation to the financial reporting process, and information relating to voting rights and.other matters required by the European Communities Takeover Bids (Directive 2004/EC) Regulations 2016 and specified for our consideration, is consistent with the financial statements and has been prepared in accordance with the Act; and based on our knowledge and understanding of the company and its environment obtained in the course of our audit, we have not identified any material misstatements in that information. We also report that, based on work undertaken for our audit, other information required by the Act is contained in the Corporate Governance Statement. 6 Our opinions on other matters prescribed the Companies Act 2014 are unmodified Based solely on the work undertaken in the course of the audit, we report that in our opinion, the information given in the directors' report is consistent with the financial statements; and in our opinion, the Directors' Report has been prepared in accordance with the Companies Act We also report that, based on the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the directors' report. We have obtained all the information and explanations which we consider necessary for the purpose of our audit. In our opinion, the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited and the Company's statement of financial position and the Statement of Comprehensive Income is in agreement with the accounting records. 7 We have nothing to report on other matters on which we are required to report by exception The Companies Act 2014 requires us to report to you if, in our opinion, the disclosures of directors' remuneration and transactions required by sections 305 to 312 of the Act are not made. 12

16 ~ DEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MBA COMMUNITY LOANS PLC (continued) 8 Respective responsibilities Directors' responsibilities As explained more fully in their statement set out on page 8, the directors are responsible for: the preparation of the financial statements including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud, other irregularities or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. The risk of not detecting a material misstatement resulting from fraud or other irregularities is higher than for one resulting from error, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control and may involve any area of law and regulation not just those directly affecting the financial statements. A fuller description of our responsibilities is provided on IAASA's website at cf6-458b-9b8fa98202dc9c3a/description of auditors responsiblities for audit. pdf 9 The purpose of our audit work and to whom we owe our responsibilities Our report is made solely to the Company's members, as a body, in accordance with section 391 of the Companies Act Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for our report, or for the opinions we have for Shah awaz Mirza for and on behalf of KPMG Chartered Accountants, Statutory Audit Firm 1 Harbourmaster Place IFSC Dublin 1 06 November

17 STATEMENT OF COMPREHENSIVE INCOME Finance income Finance expense Net finance income Note 5 6 Year ended 7 Year ended 7 July 2017 July ,198,762 7,206,387 (8,895,533) (5,412,354) 4,303,229 1,794,033 Net other income Operating income - continuing operations 4 2,786, ,528 7,089,549 2,680,561 Operating expenses Profit/ (loss) on ordinary activities before taxation 7 (6,434,793) (3,737,979) 654,756 (1,057,418) Tax expense on ordinary activities Profit/ (loss) on ordinary activities after taxation 8 654,756 (1,057,418) Total comprehensive profit/ (loss) for the year 654,756 (1,057,418) The notes on pages 18 to 36 form part of these financial statements. 14

18 STATEMENT OF FINANCIAL POSITION As at 7 July 2017 Assets Note 7 July July 2016 Financial assets - Loans and receivables 9 175,863,944 99,615,466 Debtors 10 12,646,626 9,143,833 Cash and cash equivalents 11 11,971,756 15,397, ,482, ,157,219 Liabilities Debt securities issued ,352,738 ll9,611,064 Creditors (amounts falling due within one year) 12 6,786,131 5,857,454 Total liabilities 201,138, ,468,518 Capital and reserves Share capital 14 40,000 40,000 Retained earnings (696,543) (1,351,299) Total equity (656,543) (1,311,299) Total liabilities and equity 200,482, ,157,219 ;;;; ~:"'Q The notes to the financial statements on pages 18 to 36 form an intregal part of these financial statements. by the Bo,ro ofdire~,,_;:i~~ oo 6 Novenfo 2017 signed on its beh,lfby Lisa Hand Director Date: 6 November 2017 Roddy Stafford Director Date: 6 November

19 STATEMENT OF CHANGES IN EQUITY Share Capital Retained earnings Total Balance at 8 July ,000 (1,351,299) (1,311,299) Total comprehensive loss for the year 654, ,756 Balance at 7 July OOO (696,543) (656,543) Share Capital Retained earnings Total Balance at 7 July ,000 (293,881) (253,881) Total comprehensive loss for the year (1,057,418) (1,057,418) Balance at 7 July OOO (1,351,299} (1,311,299} 16

20 STATEMENT OF CASH FLOWS Note Year ended 7 July 2017 Year ended 7 July 2016 Cash flows from operating activities Profit/ (loss) on ordinary activities before tax Adjustments for: Net impairment loss on loans and receivables Net impairment gain on debt securities Reversal of foreign exchange gain Finance income Finance expense ,756 1,894,171 (3,164,536) (25,993) (13,198,762) 8,895,533 (1,057,418) 1,073,418 (42,344) (7,206,387) 5,412,354 Operating cash (outflow) before movements in working capital (4,944,831) (1,820,377) Movements in working capital Decrease/(lncrease) in debtors Increase/(Decrease) in creditors , ,920 (347,975) (15,633) Net cash out flows from operations (3,841,232) (2,183,985) Cash flows from investing activities Purchase and origination of loans and receivables Principal payments received from loans and receivables Interest received 9 9 (103,019,611) 22,596,087 8,823,290 (66,217,140) 13,218,537 3,541,226 Net cash outflow from investing activities (71,600,234) (49,457,377) Cash flows from financing activities Issuance of debt securities Principal repayments on debt securities Interest payments ,707,851 ( 19,974,331) (8,197,776) 70,674,589 (8,680,274) (3,323,720) Net cash inflow from financing activities 72,535,744 58,670,595 Net (decrease)/increase in cash at bank and in hand during the year (2,905,722) 7,029,233 Cash at bank and in hand at the start of the year 15,397,920 8,695,444 Non cash items (unrealised FX) (520,442} (326,757) Cash at bank and in hand at the end of the year 11,971,756 15,397,920 17

21 NOTES TO THE FINANCIAL STATEMENTS Corporate information The Company is a public limited company incorporated under the laws of Ireland with the registered office address 2 Grand Canal Square, Grand Canal Harbour, Dublin 2 and company number The Company was incorporated on 22 July 2010 and is domiciled in the Republic of Ireland. The debt securities issued by the Company are listed on the main market of the Irish Stock Exchange. The sole shareholder is Link Trust Nominees No. 1 Limited (formerly Capita Trust Nominees No. I Limited) (the Share Trustee), which is a company incorporated in England and Wales owns 100% of the issued shares (2016: the Share Trustee held % of the issued shares and the remaining shares were held by 6 nominee shareholders who held the shares of the trust for the Share Trustee). 2 Accounting policies 2.01 Basis of preparation The entity's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretations as adopted by the European Union and as applied in accordance with the Companies Act The accounting policies set out below have been applied in preparing the financial statements for the financial year ended 7 July The comparative information for the financial year ended 7 July 2016 presented in these financial statements has been prepared on a consistant basis. The financial statements have been prepared under the going concern basis and under the historical cost convention. During the year, the directors decided to change the format of the balance sheet and opted for a presentation based on liquidity as it is reliable and relevant information than separate current and non-current classifications Basis of measurement The financial statements are prepared on the historical basis. The Company has opted to classify its financial assets as loans and receivables and its financial liabilities as loans and other payables Going concern The financial statements have been prepared on a going concern basis because the Directors consider that this a fair basis for presenting the results of the accounting period and the state of the affairs at the end of the year, given the arrangement established when the Company was formed and the limited nature of its activities Significant judgements accounting policy The preparation of the financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The main area where judgement and estimates are utilised is in relation to the impairment analysis, specifically the collective provision. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only the financial year or in the financial year of the reviews and future financial years if the revision affects both current and future financial years. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the entity's financial statements are disclosed in note

22 NOTES TO THE FINANCIAL STATEMENTS- continued 2 Accounting policies - continued New standards, amendments or interpretations (i) New standards adopted during the year Amendments to!as I Disclosure Initiative The Company has applied these amendments for the first time in the current year. The amendments clarify that an entity need not provide a specific disclosure required by an IFRS if the information resulting from that disclosure is not material, and give guidance on the bases of aggregating and disaggregating information for disclosure purposes. However, the amendments reiterate that an entity should consider providing additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users of financial statements to understand the impact of particular transactions, events and conditions on the entity's financial position and financial performance. In addition, the amendments clarify that an entity's share of the other comprehensive income of associates and joint ventures accounted for using the equity method should be presented separately from those arising from the Group, and should be separated into the share of items that, in accordance with other IFRSs: (i) will not be reclassified subsequently to profit or loss; and (ii) will be reclassified subsequently to profit or loss when specific conditions are met. As regards the structure of the financial statements, the amendments provide examples of systematic ordering or grouping of the notes. The application of these amendments has not resulted in any impact on the financial performance or financial position of the Company. (ii) Effective for annual periods beginning on or after I January 2017 The Directors have set out the upcoming EU endorsed and un-endorsed accounting standards, amendments or interpretations as set out below: Description Effective date (period beginning) * IFRS 15: Revenue from contracts with customers (May 2014) including amendments 1 January 2018 (early adoption permitted) to IFRS 15: Effective date (September 2015) IFRS 9: Financial Instruments (July 2014) 1 January 2018 (early adoption permitted) Amendments to IFRS 2: Classification and Measurement of Share based Payment 1 January 2018 (early adoption permitted) Transactions Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an To be determined Investor and its Associate or Joint Venture Amendments to IAS 7: Disclosure Initiative 1 January 2017 (early adoption permitted) Amendments to IAS 12: Recognition of Deferred Tax Assets for Unrealised Losses 1 January 2017 (early adoption permitted) *Where new requirements are endorsed the EU effective date is disclosed. For un-endorsed standards and interpretations, the IASB's effective date is noted. Where any of the upcoming requirements are applicable to the Company, it will apply them from their EU effective date. The Directors have considered the new standards, amendments and interpretations as set out in the above table and have concluded that the following may be relevant to the Company. The Company does not plan to adopt these standards early; instead it will apply them from their effective dates as determined by their dates of EU endorsement. JFRS 9 Financial Instruments (2014) In July 2014, the IASB issued IFRS 9 "Financial Instruments", which replaces IAS 39, "Financial Instruments: Recognition and Measurement". IFRS 9 introduces new requirements for how an entity should classify and measure financial assets, requires changes to the reporting of 'own credit' with respect to issued debt liabilities that are designated at fair value, replaces the current rules for impairment of financial assets and amends the requirements for hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, The Company is currently assessing the impact ofifrs 9. 19

23 NOTES TO THE FINANCIAL STATEMENTS - continued 2 Accounting policies - continued 2.05 New standards, amendments or interpretations - continued (ii) Effective for annual periods beginning on or after I January continued Classification and Measurement of financial assets and liabilities IFRS 9 requires that an entity's business model and a financial instrument's contractual cash flows will determine its classification and measurement in the financial statements. Upon initial recognition each financial asset will be classified as either fair value through profit or loss ('FVTPL'), amortized cost, or fair value through Other Comprehensive Income ('FVOCI'). As these requirements are different than the assessments under the existing IAS 39 rules, some differences to the classification and measurement of financial assets under IAS 39 are expected. The classification and measurement of financial liabilities remain largely unchanged under IFRS 9 from current requirements. However, where issued debt liabilities are designated at fair value, the fair value movements attributable to an entity's own credit risk will be recognized in Other Comprehensive Income rather than in the Statement of Income. The standard also allows the election to apply the presentation of fair value movements of an entity's credit risk in Other Comprehensive Income prior to adopting IFRS 9 in full. The Company has not early adopted these requirements of the standard as IFRS 9. Impairment of financial assets The impairment rules under IFRS 9 will apply to financial assets that are measured at amortized cost or FVOCI, and off balance sheet lending commitments such as loan commitments and financial guarantees. The determination of impairment losses and allowances will move from an incurred credit loss model whereby credit losses are recognized when a 'trigger' event occurs under IAS 39 to an expected credit loss model, where provisions are taken upon initial recognition of the financial asset (or the date that the Company becomes a party to the loan commitment or financial guarantee) based on expectations of potential credit losses at that time. Under the IFRS 9 expected credit loss approach, the Company will recognise expected credit losses resulting from default events that are possible within the next 12 months for both the homogeneous and non-homogeneous performing loan pools (stage l). IFRS 9 also requires the recognition of credit losses expected over the remaining life of the assets ('lifetime expected losses') which have significantly deteriorated in credit quality since origination or purchase but have yet to default (stage 2) and for assets that are credit impaired (stage 3). Under IFRS 9 expected credit losses are measured by taking into account forward-looking information, including macro-economic factors. As a result of the changes to the impairment rules, IFRS 9 will result in an increase in subjectivity as allowances will be based on reasonable and supportable forward-looking information which probability weights future economic situations that are continuously monitored and updated over the life of the financial asset. This is in contrast to impairment recognition under IAS 39 which requires the occurrence of one or more loss events before an allowance is recorded. IFRS 9 is expected to result in an increase in the overall level of impairment allowances, due to the requirement to record an allowance equal to 12 months expected credit losses on those instruments whose credit risk has not significantly increased since initial recognition and the likelihood that there will be a larger population of financial assets to which lifetime expected losses apply as compared to the population of financial assets for which loss events have already occurred under IAS 39. Hedge accounting IFRS 9 also incorporates new hedge accounting rules that intend to align hedge accounting with risk management practices. Generally, some restrictions under current rules have been removed and a greater variety of hedging instruments and hedged items become available for hedge accounting. Amendments to JAS 7: Disclosure Initiative The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities. The amendments apply prospectively for annual periods beginning on or after l January 2017 with earlier application permitted. One way to meet this new disclosure requirement is to provide a reconciliation between the opening and closing balances for liabilities arising from financing activities. The Company believes that there is no need to provide a reconciliation to fulfil this requirement as it has already elected an enhanced disclosures in this area. Furthermore, the only financing activity of the Company is the issuance of the debt securities. Thus, the comparative balances presented in the Statement of financial position also represent the opening and closing balances of the liability arising from financing activities Finance income and expense Finance income is recognised on an accruals basis calculated by reference to the loan principal outstanding, applicable interest rate and loan term of each student loan. Finance expense is recognised on an accruals basis calculated by reference to the outstanding nominal, applicable interest rate and term of each note series. 20