Agenda. Economic Landscape. Financial Performance. Inorganic Highlights. Performance vs. Peers. Conclusion

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2 Disclaimer 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. 2

3 Agenda Economic Landscape Financial Performance Inorganic Highlights Performance vs. Peers Conclusion 3

4 Economic Landscape 4

5 Inclusive growth needed to support future growth. Global Macro in deceleration mode, driven by below potential growth prospects, higher debt, unemployment level and political risk. 300 G3: Gross public debt (% GDP) Debt level on the rise.. (1) Unemployment remains high.. (1) Lower growth prospects.. (1) Brazil China India Japan Russia United States European Union 12 G3 and BRIC: Average GDP growth (%) 14 G3: Unemployment rate (%) (1) Source IMF 2013 Data base Japan United States EU Japan United States EU MENA Macro Low investment levels. Needs inclusive growth & job creation. Better implementation of structure reforms. Relatively better position than other regions of the world. MENA Banking Solvency, prudence and liquidity at good levels. High Governments presence, hence private sector credit-demand is relatively low. 5

6 Financial Performance 6

7 Strong Financial and Operating Performance Revenue (KD million) (1) Cost of Credit (KD million) 16.4% % FY 10 FY 11 FY 12 2,135 2,252 2, FY 10 FY 11 FY 12 Additional Provisions Net EOP Loans n KD million FY 12 Ex. BBT. Net Profit (KD million) FY 10 FY 11 FY 12 Key Indicators Burgan Bank Group FY 11 FY 12 Revenue Growth (YoY) (1) 6.1% 16.4% Operating Profit Growth (YoY) (1) 14.9% 16.6% Operating Profit Margin 62.4% 62.6% Cost to Income Ratio 37.6% 37.4% Jaws Ratio (YoY) 5.0% 0.5% Loans to Cust. Deposits 80.6% 86.9% Liquidity Ratio (2) 40.2% 31.5% NPL to Gross Loans 11.5% 7.1% NPL net of Collateral to Gross Loans 3.1% 1.9% ROE ROE 12.0% 12.0% 12.4% 12.4% ROTE ROTE 21.1% 21.1% 20.2% 20.2% (1) FY 2010 Figures Adj. for one time Consolidation gain of KD10.9m. (2) Liquid assets comprises of Cash & Cash eq., Treasury bills & bonds and Due from Banks & OFIS. 7

8 with quality earnings Revenue (KD million) Q1 11 Q1 12 Q2 11 Q2 12 Q3 11 Q3 12 Q4 11 Q4 12 Net Interest Income (2011) Non Interest Income (2011) Net Interest Income (2012) Non Interest Income (2012) Operating Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Profit 59.3% 63.5% 65.7% 60.5% Margin 62.3% 60.9% 64.2% 62.8% NIM^ (%) 2.5% 0.3% 2.2% BB Consolidated (KD mn) 2.6% 2.6% 2.6% 2.2% Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Due to BBT Acquisition One Off* 2.5% 0.3% * One off of KD 2.5mn Revenue composition has remained stable across FY 12. Net interest income as a percent of total income was ~63% in FY12 Contribution of net interest income and Fee income to total income was ~83% in FY 12 Fee income contributed nearly ~54% of total non interest income in FY 12 Post BBT acquisition, earnings quality is expected to remain strong with net interest income and fee income contributing to ~87% of BBT s revenues in FY 12 ^ Net interest income divided by end of period interest earning assets i.e. cash, t-bills and bonds, due from banks and OFIs, loans and advances to customers, investment securities. 8

9 and enhanced risk position Non Performing Loans (KD million) and Coverage Ratio % 200% % 145% 139% 154% 171% 150% % Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 (Ex. BBT) Q4 12 (Inc. BBT) NPL NPL net of collateral Total provisions Coverage net of collateral 50% 0% NPLs to Gross Loans (%) NPLs net of collateral to Gross Loans Gross Loan Industry Split (1) Real estate Trade Construction Manufacturing Personal Others 11.5% 10.6% 9.4% 8.8% 7.4% 7.1% 3.1% 2.8% 2.8% 2.5% 1.6% 1.9% 13.6% 30.4% 9.9% 3.7% 15.7% 22.4% 27.0% 9.7% 5.9% 15.1% 26.6% 19.8% 2011 Q1 12 Q2 12 Q3 12 Q4 12 *Q4 12 (Ex. BBT) (Inc. BBT) 2011 Q1 12 Q2 12 Q3 12 Q4 12 *Q4 12 (Ex. BBT) (Inc. BBT) FY 11 FY 12 (1)Includes Burgan Bank Turkey Figures of FY

10 supported by solid balance sheet growth KD (million) Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 (1) Q4 12 Loans & Advances 2,252 2,405 2,592 2,783 2,871 3,384 Total Assets 4,552 4,773 4,967 5,171 5,272 5,977 Deposits 2,796 3,040 3,164 3,330 3,392 3,895 Total Liabilities 3,986 4,205 4,386 4,573 4,652 5,357 Shareholder's Equity Liabilities & Sh. Equity 4,552 4,773 4,967 5,171 5,272 5,977 Assets Progression (KD billion) Liabilities Progression (KD billion) % 27.5% % 21.3% Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 (Ex. BBT) Loans & Advances Total Assets Q4 12 (Inc. BBT) Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 (Ex. BBT) Deposits Total Liabilities Q4 12 (Inc. BBT) (1)Excludes Burgan Bank Turkey. 10

11 Solid & improved shareholder returns Quarterly Net Profit (KD million) Annual Net Profit (KD million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 11 FY 12 Quarterly ROE (1) Annual ROE (2) % 16.9% 4.9% 3.7% 15.7% 16.4% 16.6% 16.6% 16.2% 7.8% 3.9% 2.4% 17.8% 9.9% 27.8% 26.5% 15.8% 16.3% 3.8% 3.9% 11.7% 13.2% 15.7% 8.6% 16.6% 12.7% 13.8% 7.9% 12.0% 12.4% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Additional Provisions before Zakat deductions. EPS for the year (Fils) Annual ROTE FY 11 FY 12 (1) ROE are calculated on a Quarterly basis (2) ROTE excl. additional provisions 11

12 Financial Performance - By Country 12

13 Diversity from all the subsidiaries Total Assets (KD mn) Net Loans (KD mn) Customer Deposits (KD mn) 3,273 3,854 1,576 2,054 1,819 2, Kuwait Jordan Algeria Iraq Tunisia FY 11 FY 12 Kuwait Jordan Algeria Iraq Tunisia FY 11 FY 12 Kuwait Jordan Algeria Iraq Tunisia FY 11 FY 12 Revenue (KD mn) Kuwait Jordan Algeria Iraq Tunisia FY 11 FY 12 Operating Profit (KD mn) Kuwait Jordan Algeria Iraq Tunisia FY 11 FY 12 Stable growth in MENA, but risks ahead from jittery global markets & lack of domestic credit growth. Low investment levels in a low interest environment. Burgan Banking Group continue to witness growth in core business. 13

14 and further strengthened by acquisition of BBT Contribution for FY 12 (Actual) (1) Contribution for FY 12 (Pro forma (2) ) (1) 11.1% 15.1% 12.9% 2.5% 4.5% 1.9% 5.9% 6.1% 6.8% 7.0% 15.0% 16.5% 15.4% 1.7% 6.5% 18.2% 24.2% 1.0% 5.0% 4.4% 18.3% 19.9% 10.3% 25.5% 11.1% 15.1% 12.9% 17.7% 8.0% 3.8% 4.2% 0.9% 2.5% 1.9% 4.6% 4.5% 5.9% 19.1% 6.1% 6.8% 1.4% 5.4% 16.9% 7.0% 15.0% 16.5% 15.0% 9.9% 15.4% 23.5% 19.9% 60.8% 60.5% 57.0% 49.4% 50.2% 65.5% 60.8% 60.5% 57.0% 40.7% 46.2% 63.0% Total Assets Customer Loans Customer Deposits Revenue Operating Profit Net Profit^ Total Assets Customer Loans Customer Deposits Revenue Operating Profit Net Profit^ Kuwait Jordan Algeria Iraq Tunisia Turkey Kuwait Jordan Algeria Iraq Tunisia Turkey ^ Net Profit contribution of BB Share; Tunisia Net Profit Contribution NM. (1) Reported contribution excluding consolidated adjustments. (2) Assuming 12 months of Consolidation of BBT in

15 Inorganic Highlights 15

16 BBT: Compelling Business Proposition Nationwide Network of 61 branches Istanbul Kocaeli 27 Sakarya Samsun Zonguldak Tekirdag 3 Ankara Bursa 1 6 Eskisehir Kayseri Diyarbakir 2 1 Izmir Konya Denizli Adana 1 Antalya Mersin Mugla 1 1 Gaziantep Hatay Note: Numbers in circles indicate number of branches Coverage Presence in 21 leading industrial and business cities, accounting for ~90% of the Turkish economy A Smart Transaction terms, acquired below book value. Modern and rebranded branches with highly scalable IT systems Branch network not operating at full capacity - providing further growth potential KD Million, as on Dec 12 BB, excl Turkey BBT BB + BBT Strategic fit, manageable risk, attractive financial performance Assets Loans Deposits Revenue 5,272 2,871 3, ,977 3,384 3, Net Income

17 Malta FIMBank FIMBank market presence is significant in almost all international trade finance markets, serving customers in more than 50 countries across four continents. Business Model Geographic Footprint & Service Offering FORFAITING TRADE FINANCE FACTORING Key Updates Approval received from Kuwait Regulator to proceed with the Debt to Asset swap of 25% stake in FIMBank. FIMBank general assembly approved on 31 st January a joint proposal submitted by UGB / BB to obtain a controlling stake in the bank. In the process of obtaining the necessary regulatory approvals, expected execution during the second quarter of

18 Performance vs. Peers 18

19 .. Local Peers (FY 12 Vs. FY 11) Net Loans Growth FY 12 vs. FY 11 Deposits Growth FY 12 vs. FY 11 Liquidity Ratio* 20.7% 14.4% 6.2% 50.3% 22.8% 27.5% 104% 108% 102% 94% 87% 39.8% 39.3% 14.1% 25.7% 0.1% 18.0% 21.3% 23.0% 24.3% 27.3% 29.2% 31.5% (3.8%) (0.3%) (1.5%) (12.5%) (2.5%) NBK ABK GBK CBK BB NBK ABK GBK CBK BB NBK ABK GBK CBK BB Revenue Growth FY 12 vs. FY 11 Net Profit Growth FY 12 (KD FY million) 12 vs. FY 11 ROTE 20.3% 16.4% 13.1% 6.1% 7.2% 0.2% 12.4% % 10.0% 14.5% 26.5% 20.2% 19.7% 0.6% 0.7% 12.8% (5.1%) 0.9% 0.9% (27.2%) 2, (40.3%) 6.1% 7.2% 0.2% 2,109 NBK 491 ABK GBK 430 CBK BB NBK ABK GBK CBK BB NBK ABK GBK CBK BB Open Shareholders Equity in KD million. Open Tangible Equity in KD million. Loan to Deposits Ratio. ROE. ROTE excl. additional provisions. * Liquid assets comprises of Cash & Cash eq., Treasury bills & bonds and Due from Banks & OFIS. Impact of Boubyan acquisition on NBK and BBT Acquisition on Burgan; NBK s P&L numbers have been adjusted for consolidation gains of KD 81.5mn and 58.4% NBK s stake in Boubyan) of KD 6mn (Islamic net profit). 19

20 .. Regional Peers (FY 12 Vs. FY 11) Net Loans Growth FY 12 vs. FY 11 Deposits Growth FY 12 vs. FY 11 Liquidity Ratio* 50.3% 22.8% 28.9% 20.7% 11.3% 16.5% 14.4% 8.2% 9.3% 3.1% 6.2% 27.5% 39.8% 39.3% 34.9% 14.1% 25.7% 7.4% 5.1% 8.9% 5.1% NBK Blom Bank 0.4% 18.0% 21.3% AUB BSF CBQ QNB Audi Burgan 23.0% NBK 33.1% Blom Bank 21.6% 16.5% 15.5% 13.1% 30.2% 31.5% AUB BSF CBQ QNB AUDI Burgan Revenue Growth FY 12 vs. FY 11 Net Profit Growth FY 12 vs. FY 11 ROTE 20.3% 26.5% 19.7% 9.1% 6.0% 9.9% 4.2% 12.2% 8.2% 16.4% 0.9% 2.6% 8.1% 3.6% 6.8% 13.2% 11.1% 10.0% 19.9% 20.2% 17.8% 18.2% 18.1% 14.5% 15.3% 14.1% 0.6% NBK Blom Bank AUB BSF CBQ QNB AUDI Burgan (27.2%) NBK Blom Bank AUB BSF CBQ QNB AUDI Burgan NBK Blom Bank AUB BSF CBQ QNB AUDI Burgan ROTE excl. additional provisions. * Liquid assets comprises of Cash & Cash eq. Treasury bills & bonds and Due from Banks & OFIS. Impact of Boubyan Acquisition for NBK and ET Acquisition for BB. 20

21 Brand Rating Variance YoY Strong Brand Position Burgan Bank is an award winning brand and the only banking brand in Kuwait which increased in value in 2013 with positive outlook ( rated AA)* Brand Value Variance YoY (1) Brand Value Comparison - Kuwaiti Banks -$54m +$24m Burgan Bank NBK Gulf Bank Commercial Bank $0m $0m AA+ AA AA- A+ A A- Brand Rating YoY Burgan Bank NBK Gulf Bank Commercial Bank Successful Strategic Brand Management pays fruitful results Strategic brand management approach led to the increase of brand value from $175m in 2012 to $199m in 2013 rated as AA with positive outlook. Burgan Bank is the only banking brand in Kuwait and 1 of 5 brands in the Middle East to show improvement in brand value in Burgan Bank is a recognized award winning brand; Won the Best Banking Brand by The Banker - Middle East in Burgan Bank brand has expanded its footprint internationally to Turkey with the rebranding of recently acquired Eurobank Tekfen to Burgan Bank Turkey. (1) Figures are USD million. * Brand Finance Rating * Top 500 most valuable banking brands Brand Finance, Mar

22 External Recognitions Q Q Q Q Best Corporate Bank in Kuwait Global Banking & Finance Review Best Banking Brand Banker Middle East 2012 Best Private Bank in Kuwait Capital Finance International Best Bank in Jordan for 2012 Global Banking & Finance Review Best Banking Group in MENA Global Banking & Finance Review Best Banking Group In Kuwait World Finance 2012 Best Private Bank In Kuwait World Finance 2012 Quality Recognition Award JP Morgan Chase Bank of the year Tunisia InterContinental Finance Magazine Best Private Banking offering in Jordan 2012 Global Banking & Finance Review Best Co-branded credit card in Jordan 2012 Global Banking & Finance Review Annual Golden International Arch of Europe - TIB Trophy, for Quality & technology Deal of the Year ET Deal Acquisition International Best Bank in Kuwait EMEA Finance Best Bank in Iraq 2012 EMEA Finance All awards mentioned above are the results of peers & customers voting process organized by the publications. 22

23 Conclusion 23

24 In Summary. Conclusion Economic and business environment were less favorable than anticipated Resilient Business Model; significantly improved market position, diversification strategy paying off and completion of BBT acquisition Enhanced Risk Position; both asset quality and coverage ratio showing considerable improvement Comfortable Capital Base; with Capital Adequacy ratio at 18.5% Future Leverage on our solid position and inertia to maintain and grow our market position Smooth the integration of our new partners directing them to commercial success Continue operating under the principle of prudence in risk and liquidty management All leading indicators in place to sustain a solid operating performance 24

25 Thank You 25