1) Reconciliation between Published Financial Statements and Regulatory scope of consolidation As per financial statements

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1 Basel III regulatory reporting: The Central Bank of Oman has issued final guidelines on the implementation of the new capital norms as well as the Liquidity norms along with the phase in arrangements and reporting norms. The bank remains strongly capitalised and is ahead of the transitional phase in arrangements. The appended tables are part of the disclosures under the new accord: 1) Reconciliation between Published Financial Statements and Regulatory scope of consolidation As per financial statements As at 30Sep2017 Under regulatory scope of consolidation As at 30Sep2017 in RO '000 in RO '000 Assets Cash and balances with CBO 741, ,404 Due from banks 529, ,464 Investments 1,136,601 1,136,600 Designated as fair value through profit or loss 51,004 51,004 Investment in associates (CET1 & T2 adjustment) 48,428 48, Investment in associates (CET1 & T2 adjustment) 2017 movement 354 NonStategic Investment (CET1 adjustment) 2,155 2, NonStategic Investment (CET1 adjustment) 2017 movement Loans & Advances/Islamic Financing Net, Of which: 8,347,263 8,347,263 Loans and advances to nonresident banks 145,937 Loans and advances to domestic customers 7,226,427 Loans and advances to nonresident for operations abroad 67,048 Loans and advances to SMEs 280,854 Financing from Islamic banking window 962,535 Provision against Loans and Advances, Of which: Specific provision and Reserve interest & profit (219,746) General Provision Amount eligible for Tier 2 (115,792) 50 General Provision 2017 Movement (4,942) Fixed assets 68,795 68,795 Other assets : 184, ,239 Acceptances 71,961 71,961 Positive value of Derivatives 21,708 21,708 Deferred Tax Asset (CET1 adjustment) Accrued Interest & Others 90,066 90,066 Total Assets 11,110,289 11,110,289 (0) Capital & Liabilities Paidup Capital, Of which: Amount eligible for CET1 Paidup share capital 270, ,936 1 Share Premium 509, ,377 1 Legal reserve 83,208 83,208 3 General reserve 244, ,808 3 Subordinated Loan Reserve 96,690 96,690 3 Retained earnings 289, ,008 2 Current Year Profit 130, ,257 Cumulative loss on Fair Value (CET1 adjustment) (313) 7 Foreign Currency Translation Reserve (CET1 adjustment) (1,647) (1,966) 7 Foreign Currency Translation Reserve 2017 movement 319 Amount eligible for AT1 Perpetual Tier I capital 130, ,000 Amount eligible for Tier 2 Cumulative gains on fair value 19,590 19,903 Positive MTM after applying 55% haircut 8, Subordinated liabilities 127, ,905 Subordinated liabilities Amortised / Matured (17,910) Mandatory Convertible Bonds 32,416 Mandatory Convertible Bonds Non Qualifying 32,416 Reserves & Surplus Revaluation reserve 5,305 5,305 Cash Flow Hedge reserve (348) (301) 7 Cash Flow Hedge reserve 2017 movement (47) Total Capital 1,937,505 1,937,505 Deposits from banks 828, ,415 Customer deposits 7,520,412 7,520,412 Unsecured bonds 44,608 44,608 Borrowings in the form of bonds and Notes 384, ,509 Other liabilities 362, ,789 Taxation 32,051 32,051 Total Capital & Liabilities 11,110,289 11,110,289 Ref.

2 Disclosure template for main features of regulatory capital instruments 1 Issuer US $ Subordinated Debt OMR Denominated Subordinated Debt Additional EquityTier 1 Capital (AET1) Amounts in RO million As at 30Sep2017 Paidup share capital 2 Unique identifier (eg CUSIP, ISIN or Bloomberg identifier for private placement) 3 Governing law(s) of the instrument Regulatory treatment 4 Transitional Basel III rules 5 Posttransitional Basel III rules 6 Eligible at solo/group/group & solo 7 Instrument type (types to be specified by each jurisdiction) 8 Amount recognised in regulatory capital* in RO million 9 Par value of instrument in RO English Law Tier 2 Capital CUSIP: EH CMA Oman Tier 2 Capital Governed by the Laws of the Sultanate of Oman. MSM code: BKMB CMA Oman CET1 Capital Tier2 Capital Tier2 Capital Additional Tier 1 Capital CET1 Capital Tier2 Capital Tier2 Capital Additional Tier 1 Capital CET1 Capital Group Group Group Group Subordinated Debt Subordinated Debt AET1 Capital Paidup share capital NA, debt instrument NA, debt instrument million baisa 10 Accounting classification 11 Original date of issuance 12 Perpetual or dated 13 Original maturity date 14 Issuer call subject to prior supervisory approval 15 Optional call date, contingent call dates and redemption amount Liability fair value Liability fair value option Equity Liability fair value option option 12Jan12 Various Refer Annexure 03Apr17 Various I Dated Dated Perpetual Perpetual 15Oct21 Various Refer Annexure Perpetual Various I No No Yes, After 5 years No NA NA Redemption of the Capital Deposit pursuant to NA agreement and CBO may only occur on the First Call Date or on any Call Date thereafter or on any interest payment date after the first call date. 16 Subsequent call dates, if applicable NA NA the First Call Date (fifth anniversary of the Deposit NA Date) or the Second Call Date or the call date falling on any interest payment date after the first call date. Coupons / dividends 17 Fixed or floating dividend/coupon Floating Fixed Fixed Floating 18 Coupon rate and any related index Libor Various Refer Annexure 5.50% NA 19 Existence of a dividend stopper No No No No 20 Fully discretionary, partially discretionary or mandatory Mandatory Mandatory Fully discretionary Partially discretionary 21 Existence of step up or other incentive to redeem No No No No 22 Noncumulative or cumulative Cumulative Cumulative Non cumulative 23 Convertible or nonconvertible Nonconvertible Nonconvertible Non convertible Nonconvertible 24 If convertible, conversion trigger (s) 25 If convertible, fully or partially 26 If convertible, conversion rate 27 If convertible, mandatory or optional conversion 28 If convertible, specify instrument type convertible into 29 If convertible, specify issuer of instrument it converts into NA 30 Writedown feature No No Yes No 31 Position in subordination hierarchy in liquidation (specify instrument type Senior Debt immediately senior to instrument) Senior Debt The instrument is subordinated to depositors, general creditors and subordinated debt/sukuk of the bank. SubDebt 32 If writedown, writedown trigger(s) NA NA Non viability event NA 33 If writedown, full or partial NA NA In Full or partial, as determined by the Bank in NA conjunction with CBO and in accordance with the Basel Regulations. 34 If writedown, permanent or temporary NA NA Permanent NA 35 If temporary writedown, description of writeup mechanism 36 Noncompliant transitioned features None None None None 37 If yes, specify noncompliant features *Net of reserves and haircut

3 Break up of OMR 100 million Denominated Subordinated Debt Amt in RO Interest million rate Issue Date Maturity % 18/12/ /11/ % 20/12/ /11/ % 25/12/ /11/ % 28/12/ /11/ % 28/01/ /11/ % 28/12/ /11/

4 Basel III common disclosure template to be used during the transition of regulatory adjustments (Please fill in only the cells highlighted in green with numbers and those in yellow with comments, if any) AMOUNTS SUBJECT TO PREBASEL III RO '000 TREATMENT Common Equity Tier 1 capital: instruments and reserves 1 Directly issued qualifying common share capital (and equivalent for nonjoint stock 780,313 companies) plus related stock surplus 2 Retained earnings 289,008 3 Accumulated other comprehensive income (and other reserves) 424,706 4 Directly issued capital subject to phase out from CET1 (only applicable to nonjoint stock companies) Public sector capital injections grandfathered until 1 January Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1) 6 Common Equity Tier 1 capital before regulatory adjustments 1,494,027 Comments Common Equity Tier 1 capital: regulatory adjustments 7 Prudential valuation adjustments 2,580 8 Goodwill (net of related tax liability) 9 Other intangibles other than mortgageservicing rights (net of related tax liability) 10 Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) 11 Cashflow hedge reserve 12 Shortfall of provisions to expected losses 13 Securitisation gain on sale (as set out in paragraph 14.9 of CP1) 14 Gains and losses due to changes in own credit risk on fair valued liabilities. 15 Definedbenefit pension fund net assets 16 Investments in own shares (if not already netted off paidin capital on reported balance sheet) 17 Reciprocal crossholdings in common equity 18 Investments in the capital of banking, financial, insurance and takaful entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 19 Significant investments in the common stock of banking, financial, insurance and takaful 50,229 entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold) 20 Mortgage Servicing rights (amount above 10% threshold) 21 Deferred tax assets arising from temporary differences (amount above 10% threshold, net of 504 related tax liability) 22 Amount exceeding the 15% threshold 23 of which: significant investments in the common stock of financials 24 of which: mortgage servicing rights 25 of which: deferred tax assets arising from temporary differences 26 National specific regulatory adjustments REGULATORY ADJUSTMENTS APPLIED TO COMMON EQUITY TIER 1 IN RESPECT OF AMOUNTS SUBJECT TO PREBASEL III TREATMENT 27 Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions 28 Total regulatory adjustments to Common equity Tier 1 53, Common Equity Tier 1 capital (CET1) 1,440,714

5 Basel III common disclosure template to be used during the transition of regulatory adjustments (Please fill in only the cells highlighted in green with numbers and those in yellow with comments, if any) AMOUNTS SUBJECT TO PREBASEL III RO '000 TREATMENT Additional Tier 1 capital: instruments 30 Directly issued qualifying Additional Tier 1 instruments plus related stock surplus 130, of which: classified as equity under applicable accounting standards 5 130, of which: classified as liabilities under applicable accounting standards 6 33 Directly issued capital instruments subject to phase out from Additional Tier 1 34 Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group AT1) 35 of which: instruments issued by subsidiaries subject to phase out 36 Additional Tier 1 capital before regulatory adjustments 130,000 Comments Additional Tier 1 capital: regulatory adjustments 37 Investments in own Additional Tier 1 instruments 38 Reciprocal crossholdings in Additional Tier 1 instruments 39 Investments in the capital of banking, financial, insurance and takaful entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold) 40 Significant investments in the capital of banking, financial, insurance and takaful entities that are outside the scope of regulatory consolidation (net of eligible short positions) 41 National specific regulatory adjustments REGULATORY ADJUSTMENTS APPLIED TO ADDITIONAL TIER 1 IN RESPECT OF AMOUNTS SUBJECT TO PREBASEL III TREATMENT 42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions 43 Total regulatory adjustments to Additional Tier 1 capital 44 Additional Tier 1 capital (AT1) 130, Tier 1 capital (T1 = CET1 + AT1) 1,570,714 Tier 2 capital: instruments and provisions 46 Directly issued qualifying Tier 2 instruments plus related stock surplus 47 Directly issued capital instruments subject to phase out from Tier 2 49, Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties (amount allowed in group Tier 2) 49 of which: instruments issued by subsidiaries subject to phase out 50 Provisions 124, Tier 2 capital before regulatory adjustments 173,713 Tier 2 capital: regulatory adjustments 52 Investments in own Tier 2 instruments 53 Reciprocal crossholdings in Tier 2 instruments 54 Investments in the capital of banking, financial, insurance and takaful entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above the 10% threshold) 55 Significant investments in the capital banking, financial, insurance and takaful entities that are outside the scope of regulatory consolidation (net of eligible short positions) 56 National specific regulatory adjustments REGULATORY ADJUSTMENTS APPLIED TO TIER 2 IN RESPECT OF AMOUNTS SUBJECT TO PREBASEL III TREATMENT 57 Total regulatory adjustments to Tier 2 capital 58 Tier 2 capital (T2) 173, Total capital (TC = T1 + T2) 1,744,427 Risk Weighted Assets RISK WEIGHTED ASSETS IN RESPECT OF AMOUNTS SUBJECT TO PREBASEL III TREATMENT 60 Total risk weighted assets (60a+60b+60c) 9,962,034 60a Of which: Credit risk weighted assets 9,058,583 60b Of which: Market risk weighted assets 169,266 60c Of which: Operational risk weighted assets 734,185 Capital Ratios 61 Common Equity Tier 1 (as a percentage of risk weighted assets) Tier 1 (as a percentage of risk weighted assets) Total capital (as a percentage of risk weighted assets) Institution specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus countercyclical buffer requirements plus GSIB/DSIB buffer requirement expressed as a percentage of risk weighted assets) 65 of which: capital conservation buffer requirement 66 of which: bank specific countercyclical buffer requirement 67 of which: DSIB/GSIB buffer requirement 68 Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets 5.81

6 Basel III common disclosure template to be used during the transition of regulatory adjustments (Please fill in only the cells highlighted in green with numbers and those in yellow with comments, if any) AMOUNTS SUBJECT TO PREBASEL III RO '000 TREATMENT Comments National minima (if different from Basel III) 69 National Common Equity Tier 1 minimum ratio (if different from Basel 3 minimum) 70 National Tier 1 minimum ratio (if different from Basel 3 minimum) 71 National total capital minimum ratio (if different from Basel 3 minimum) Amounts below the thresholds for deduction (before risk weighting) 72 Nonsignificant investments in the capital of other financials 73 Significant investments in the common stock of financials 74 Mortgage servicing rights (net of related tax liability) 75 Deferred tax assets arising from temporary differences (net of related tax liability) Applicable caps on the inclusion of provisions in Tier 2 76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap) 77 Cap on inclusion of provisions in Tier 2 under standardised approach 78 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratingsbased approach (prior to application of cap) 79 Cap for inclusion of provisions in Tier 2 under internal ratingsbased approach Capital instruments subject to phaseout arrangements (only applicable between 1 Jan 2018 and 1 Jan 2022) 80 Current cap on CET1 instruments subject to phase out arrangements 81 Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities) 82 Current cap on AT1 instruments subject to phase out arrangements 83 Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) 84 Current cap on T2 instruments subject to phase out arrangements 85 Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)

7 Bank: bank muscat LCR Common Disclosure Template for the period ending: Sep17 (RO 000) Total Unweighted Value (average) Total Weighted Value (average) High Quality Liquid Assets 1 Total High Quality Liquid Assets (HQLA) 1,579,547 Cash Outflows 2 Retail deposits and deposits from small business customers, of which: 3,087, ,467 3 Stable deposits 1,793,556 53,807 4 Less stable deposits 1,294,049 91,660 5 Unsecured wholesale funding, of which: 2,524,536 1,250,308 6 Operational deposits (all counterparties) and deposits in networks of cooperative banks 7 Nonoperational deposits (all counterparties) 2,524,536 1,250,308 8 Unsecured debt 9 Secured wholesale funding 10 Additional requirements, of which 597, , Outflows related to derivative exposures and other collateral requirements 50,670 50, Outflows related to loss of funding on debt products 13 Credit and liquidity facilities 546, , Other contractual funding obligations 15 Other contingent funding obligations 203,767 52, TOTAL CASH OUTFLOWS 1,621,404 Cash Inflows 17 Secured lending (e.g. reverse repos) 18 Inflows from fully performing exposures 1,682,680 1,019, Other cash inflows 20 TOTAL CASH INFLOWS 1,682,680 1,019,898 Total Adjusted Value 21 TOTAL HQLA 1,579, TOTAL NET CASH OUTFLOWS 601, LIQUIDITY COVERAGE RATIO (%) 263