LEBANESE ECONOMY GAINS BACK SOME GROUND IN EARLY 2016

N 43 April 2016 Page 3 Consumption gains momentum into 2016 Page 4 Government revenues floundered in, debt ratings stable Page 5 Real estate kicks off the year with a bang Page 6 Profits at Alpha Group banks topped $2bn in Page 7 Latest data for Lebanon s key economic sectors Page 8 Key trends in the Lebanese economy LEBANESE ECONOMY GAINS BACK SOME GROUND IN EARLY 2016 Coincident indicator up 3.5% yoy in January Wider trade deficit weighed on balance of payments in January Almost $650m in foreign aid pledged in early 2016 The Lebanese economy started 2016 on a stronger footing than it did in. Banque du Liban s coincident indicator, a composite index that serves as a proxy for economic growth, increased by 3.52% yoy to 279.4 points in January, thereby reversing a 3.71% drop registered in January. Improved activity likely resulted from a rebound in real estate transactions, faster growth in money supply, and continued strength in the consumer segment. Real estate transactions surged by 40.6% yoy to $1.41bn in the first two months of 2016, reviving hopes of a recovery in the realty market after years of cooling. Money supply (M2) was also 7.33% yoy higher in January 2016, as loans to the resident private sector grew by $128.8m during the month, compared with a contraction of $91.5m in January. New loans, however, are coming at an increasing cost for borrowers. The USD lending rate spiked to 7.18% in January, its highest level in over three years. Although helpful, improving spreads have yet to make a significant contribution to profit growth at Lebanese banks. Total net profits of the 14 Alpha banks, those with over $2bn in deposits, crossed $2bn in, buoyed by accelerating foreign growth. Indeed, domestic profits increased by just 6.24% to $1.66bn while those from foreign operations swelled 20.6% to $373m. CONSUMERS ON THE MEND Consumer confidence also appears to be on the mend despite the public s frustration with a trash crisis that started in July of and only ended in March. A confidence index published by ARA Research & Consultancy is up 12.7% on average in the 12 months through February 2016 amid improved security conditions. Average lending rate on USD Accounts 7.3% 7.2% 7.1% 7.0% 6.9% 7.05% 7.18% 7.09% 6.8% Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Source: ABL, Economena, SGBL Research Note: Average of the last three months on new loans. Tourist arrivals (% yoy) 50 40 30 20 14.4% 10 0-10 -20-30 -40-50 Feb -10 Feb -11 Feb -12 Feb -13 Feb -14 Feb -15 Feb -16 Source: MoT, Economena, SGBL Research ext.11210

Consumers are still benefiting from improved purchasing power with prices falling by 3% on average in the first two months of 2016, data by the Central Administration of Statistics showed. The decrease in prices doesn t appear to reflect a drop in aggregate demand, but is more likely driven by lower fuel prices and depreciation in the Euro and other currencies against the US Dollar to which the Lebanese Pound is pegged. A stable security situation is also providing much-needed impetus for strong growth in tourism, a part of which likely reflects activity by foreign aid workers. Tourist arrivals rose by 9.1% yoy to 191,808 visitors in the first two months, amid record visitors from Europe, North America, Egypt, and Iraq during the period. Imports rose by 7.9% yoy to $2.87bn through February, contributing to a 13% yoy widening in the trade deficit to $2.46bn over the period. TRADE DEFICIT WIDENS Rising demand is pushing Lebanon s import bill back up despite continued savings from cheaper oil. Imports rose by 7.9% yoy to $2.87bn through February, contributing to a 13% yoy widening in the trade deficit to $2.46bn over the period. Export activity was also 14.9% slower in the first two months of 2016, particularly to Saudi Arabia and UAE. A bigger trade deficit and slower growth in the deposits of non-residents led to a $718.9m deficit in the balance of payments in January, its worst showing for the period in 5 years, before recovering slightly to $362.6m in February. FOREIGN AID AWAITS POLITICAL SOLUTION The country is missing out on hundreds of millions of dollars in financial flows from foreign aid as a result of a two-year political stalemate that has left Lebanon s top post vacant and Parliament virtually paralyzed, according to World Bank estimates. Lebanese aid agencies received only $89m as of March 22 2016, or 5% of their $1.76bn appeal for the year, according to data by UNHCR. The country s official refugee response plan is seeking a total of $2.48bn for 2016, including direct financial support for the state. Donor countries had pledged $12bn in grants for the next 5 years at a February Syria conference in London, including $5.9bn for 2016. Almost 75% of the funding has yet to be allocated to the various refugee host countries, but at least $175m have been earmarked for Lebanon. Lebanon s budget deficit reached $3.95bn in, $880m more than in 2014 and the second highest in the country s history. Indeed, some of the aid is still flowing into the country despite the deadlock. In March, the World Bank announced a $100m loan to provide universal education for Syrian refugees in Lebanon, and the country s Council for Development and Reconstruction signed a $372m loan agreement with the Islamic Development Bank to improve water infrastructure. The country s public finances have been stretched thin by the economic slowdown and by pressure from an estimated 1.06 million registered Syrian refugees. Lebanon s budget deficit reached $3.95bn in, $880m more than in 2014 and the second highest in the country s history. Sovereign credit ratings are already at the risk of being downgraded by Standard & Poor s which affirmed its B- rating in March, but maintained its negative outlook for the coming 12 months. The credit agency said its ratings are predicated on banking sector s deposit growth of at least 4% in 2016 to maintain its ability to roll over government debt and subscribe to new issues. Even then, public finances and fiscal flexibility will remain constrained by structural expenditure pressures, including transfers to EdL, as well as by high interest payments, which account for more than two-fifths of general government revenues, stated S&P. Consumer confidence (12m moving avg, %yoy) Exports ($m, Jan-Feb) 30 20 10 0-10 12.7% 312 408 573 657 655 601 777 785 497 486 414-20 -30-40 Feb-13 Feb-14 Feb-15 Feb-16 Source: ARA Research & Consultancy, Economena, SGBL Research 2006 2008 2010 2012 2014 2016 Source: Customs, Economena, SGBL Research

CONSUMERS CONSUMPTION GAINS MOMENTUM INTO 2016 Confidence highest among youth, high-income earners Car market sets new record through February Beirut retail activity shows mixed results Consumption in Lebanon regained some momentum at the end of and is making an even stronger showing in the early months of 2016. Imports of vegetable products, vehicles, textiles, prepared foods, footwear and other consumer products bounced back in the first two months of 2016, reflecting strengthening demand in the local market. The value of vegetable product imports rose by 6.8% yoy to $165.9m through February, and those of prepared foodstuffs, beverages, and tobacco increased by 6.4% yoy to $216.7m over the same period. Vibrant car market activity is confirming the rebound in consumer spending. New passenger car sales reached a record 5,204 vehicles in the first two months of 2016, a whopping increase of 13.7% over the same period in. A stronger dollar has lifted consumers purchasing power, while lower fuel prices are improving the appeal of cars in general to more people. Higher sales in the affordable car segment brought about much of the improvement in the new car market, with Kia, Toyota, and Hyundai accounting for 20%, 16%, and 13% of sales volumes respectively through February. Stronger results in the affordable segment partly reflect higher confidence levels among youth in Lebanon, and students in particular. Students had the country s highest consumer confidence among a list of 26 consumer groups at the end of. Those earning $2,500 and above per month came second, followed by those in the 21 to 29 years old group. Rising confidence is also carrying into 2016 with a consumer confidence index published by ARA Research & Consultancy increasing by 2.05% yoy on average in the first two months. RISKS REMAIN HIGH Worries over income growth, however, are coming back to haunt consumers. Consumer confidence in future individual income tumbled to its lowest level since 2014, according to the ARA monthly survey. Consumer confidence (, difference from average) $2500 and Above Student 21-29 Years 60 Years and Above Mount Lebanon South Lebanon $1500-2499 Housewife North Lebanon Less than $750 Private Sector Employee Female Self-Employed 40-49 Years Male 30-39 Years Bekaa $750-1499 Beirut 50-59 Years Public Sector Employee Unemployed 16.7-12.8 Source: AUB/Byblos Bank, Economena, SGBL Research Indeed, consumption trends do not reflect a widespread recovery in the economy, rather resilience in specific niches such as cars and healthcare. The Beirut retail trade index, a composite measure of sales activity in the capital, sank to 55.6 points in the fourth quarter of, compared with 58.4 points at the end of 2014, on the back of slumping sales of luxury products, building equipment, and furniture. On the other hand, sales at sports equipment and sportswear stores, restaurants and bars, and medical equipment stores showed double-digit increases in the last quarter of, according to data by the Beirut Traders Association via Economena Analytics. New passenger car sales (Jan-Feb, 2016) Beirut retail trade index (real) 64.5 Kia 20% Others 38% 58.9 58.4 Renault 6% Nissan 7% Hyundai 13% Toyota 16% 55.6 54.5 52.8 53.8 55.3 55.6 Source: AIA, Economena, SGBL Research 4q13 1q14 2q14 3q14 4q14 1q15 2q15 3q15 4q15 Source: BTA, Fransabank, Economena, SGBL Research

GOVERNMENT GOVERNMENT REVENUES FLOUNDERED IN, DEBT RATINGS STABLE Revenues fell by 12% to $9.6bn on lower telecom transfers Deficit widened to $3.95bn despite lower electricity spending Debt ratings affirmed at B-, outlook still negative Lebanon s public finances were saddled by sluggish economic activity in and by irregular telecom transfers, leaving the state with a $3.95bn deficit, $880m more than in 2014 and the second highest in the country s history. With lower fuel prices, transfers to Electricite du Liban were cut by almost a half to $1.1bn during the year. Longstanding divisions among the country s political parties have culminated in deadlock in the government s legislative and executive branches in recent years. Lebanon has been without a President since May 2014, and Parliament has only met once in recent months. The country was left without garbage collection for almost 8 months, highlighting the fragile state of the current Cabinet. In the absence of active fiscal policy, Lebanon s economic growth ground to a halt in, while regional conflict depressed investment in the country s once-booming real estate sector. Total revenues fell by 12% to $9.6bn from a peak of $10.9bn in 2014. Income from the Value Added Tax (VAT), the government s largest source of revenue, fell by 4.3% to $2.1bn in, equivalent to a drop of $95m. Public revenues in () Others, 2.96, 31% Telecom, 1.23, 13% Customs, 1.37, 14% VAT, 2.10, 22% Income Taxes, 1.92, 20% Source: MoF, Economena, SGBL Research Part of the decline in VAT revenues can be attributed to lower consumer prices, which fell by an average of 3.75% in, according to the Central Administration of Statistics. Still, lack of growth in the state s main taxation measure reflects dismal consumer and business spending trends in the country. In line with a cooling real estate market, revenues from real estate registrations slumped by 10.7% to $513.1m in. The biggest hit to revenues, however, came from a change in the way the Ministry of Finance (MoF) accounts for its revenues from telecommunications services. Starting, the MoF started reporting only actual cash transfers it receives from the Ministry of Telecom, after relying on its own estimates in previous years. The change, along with a one-off transfer in late 2014, left the government with just $1.2bn in telecom revenues in, down from $2bn in 2014. SOVEREIGN RATINGS STABLE Despite the government s swelling deficit and its large debt stock, bank deposits are still growing at a pace that is sufficient to meet public financing needs, according to Standard & Poor s (S&P). Private sector deposits grew by 5% in and would need to increase by at least 4% in 2016 for the country s sovereign debt ratings to remain stable at B-. S&P maintained a negative outlook for Lebanese sovereign debt ratings, citing risks to deposit growth, foreign currency reserves, and to the functioning of the Lebanese government amid regional tensions. Private sector deposits would need to increase by at least 4% in 2016 for the country s sovereign debt ratings to remain stable at B-. Fiscal deficit () Interest as a percent of revenues 3.93 4.22 3.95 50% 46.5% 47.8% 46.5% 45% 3.04 2.55 2.92 2.96 2.89 2.34 3.07 40% 38.5% 39.7% 2006 "07 "08 "09 "10 "11 "12 "13 "14 Source: MoF, Economena, SGBL Research 35% 2010 "13 "16f "17f Source: S&P, Economena, SGBL Research

REAL ESTATE REAL ESTATE KICKS OFF THE YEAR WITH A BANG Transactions surged by 40.6% yoy to $1.4bn through February Construction permits rebounded outside Beirut and Tripoli Office space construction on the rise in Ashrafieh Real estate transactions rebounded to $1.41bn in the first two months of 2016, up 40.6% from the same period in, reviving hopes of a recovery in the realty market after years of cooling. Property sales had floundered in amid increased regional uncertainty, especially in Syria, and prolonged domestic political deadlock. The number of transactions also increased considerably to 9,460 through February, up from 7,531 in the first two months of, adding critical depth to a market where liquidity had briefly appeared to be waning. Foreigners were a counterparty in 1.74% of the transactions, broadly in line with the norm in recent years. Developers have reportedly been more flexible on prices as they look to reduce their stock of unsold apartments, which likely contributed to higher sales volumes, particularly in Beirut. The average value per transaction rose by 27.3% yoy to $171,400 through February 2016, pointing to a possible sale of more higher-priced properties during the period than in previous months. Despite improved security in the country, the political environment has yet to contribute to the pick up in investor confidence that the real estate sector needs to make a full recovery. OUTLOOK FOR CONSTRUCTION IMPROVING The outlook for construction activity also received a boost from a surge in construction permits in the first two months, after investors had increasingly shied away from the sector in recent years. The area of permits increased by 12% yoy to 2.05 million sqm through February, and the number of permits rose by 27.2% yoy to 2,505. Demand for permits at the start of the year came largely from Mount Lebanon which made up 49.5% of the area of all permits. Developers sought more permits for construction across all regions except Beirut and Tripoli, where the area of issued permits fell by 35% yoy and 55.1% yoy respectively. The move away from the capital s center is also reflected in the office space market in municipal Beirut where 34 projects with 194,863 sqm of office space are under construction at the start of 2016, down from 37 projects and 195,694 sqm in, according to a survey by RAMCO, a real estate advisory company. However, unlike the Beirut Central District and Western Beirut, Ashrafieh appears to be bucking the downward trend. The area of office space under construction in Ashrafieh rose to 139,099 sqm over 24 projects in 2016, up from 130,752 sqm over 23 projects in, and 97,471 sqm at 18 projects in 2014. Real estate transactions (Jan-Feb, ) Construction permits (Jan-Feb, m sqm) 1.16 1.39 1.41 2.05 0.92 1.00 1.83 1.20 2012 2013 2014 2016 Source: CADASTRE, Economena, SGBL Research 2006 "07 "08 "09 "10 2011 "12 "13 "14 "15 2016 Source: OEB, OET, Economena, SGBL Research

PROFITS AT ALPHA GROUP BANKS TOPPED $2BN IN Net profits are up 8.68% to $2.04bn in on foreign growth Deposit growth rates are down by half during the year Alpha banks added 15 local branches and 1,315 staff in Unaudited performance figures for the top 14 banks in Lebanon show that the Alpha group of banks with deposits above $2bn per bank has achieved total assets of $203.8bn at year end, representing an increase of 4.76% when compared with December 2014. The highly watched annual growth in customer deposits, which is considered vital for Lebanon s financial stability, halved from 9.4 % in 2014 to 4.55% with customer deposits reaching $168.3bn. Combined loan portfolios of Alpha banks expanded by 5.67% to $63.7bn. In addition, banks were hit by slowing trade volumes in Lebanon and the region, which pulled down letter-of-credit openings by 19.22% in and slowed growth in fee and commission income to 2.19% during the year, down from 13.3% in 2014. Still, faster growth in aggregate lending activity relative to deposits lifted the loans-to-deposits ratio at Alpha banks by 40 basis points to 37.87% at the end of. Amidst uncertain trends in international monetary developments, key performance ratios of Lebanese banks did not show a turnaround but reported slower rates of decline when compared with 2014. The return on average equity dropped five basis points to 11.50 and the return on average common equity fell seven basis points to 12.82. When compared with slowing growth of assets and deposits, some encouraging signals for the banking sector originated from the bottom line. Net profits of Alpha banks rose for the first time beyond $2 billion. Profits were buoyed by accelerating foreign growth in profits which made up 18.3% of the Alpha group s aggregate net income. Domestic profits increased by 6.24% to $1.66bn while those from foreign operations surged by 20.6% to $373m in. Alpha Group, December Assets () Net Profit ($m) Bank Audi 42.3 403.1 BLOM Bank 29.1 404.7 Fransabank 20.0 179.8 Byblos Bank 19.9 160.6 Societe Generale de Banque au Liban 16.5 170.1 Bank of Beirut 16.2 193.4 BankMed 15.6 139.1 Banque Libano-Française 11.6 103.9 Credit Libanais 9.9 66.6 BBAC 6.1 44.5 IBL Bank 5.7 68.1 First National Bank 4.1 35.0 Lebanon and Gulf Bank 3.6 30.7 Creditbank 3.3 36.5 Alpha Group 203.8 2,035.9 Source: Bankdata FInancial Services, Economena, SGBL Research PROVISIONS SLOWING Profits from foreign operations were fully wiped out by a massive increase in provisions. The 14 Alpha banks were hit by $425.8m in net provisions for credit losses in, 15.2% more than in 2014. New collective provisioning requirements introduced by the Central Bank in late 2014 likely contributed to some of the uptick in provisions, and may continue to weigh on profit growth in coming years. On the other hand, substandard and doubtful loan ratios fell for the second year in a row, reaching 6.14% of gross loans at the end of, compared with 6.45% in 2014. The drop is likely partly a result of new Central Bank regulations offering banks more leeway to restructure struggling businesses that are suffering from the economic slowdown but with a demonstrated proven business model. BANKS SLOWING THEIR EXPANSION Alpha banks continued to expand their domestic and regional footprint in, albeit at a slower pace than in previous years. The country s largest banks by deposits added 32 branches during the year, down from 70 new branches in 2014. Lebanon s share of new branches reached 15 in while the rest of the world took in 17, bringing the combined network of Alpha banks to 1,233 branches, 34% of which located abroad. Slower network growth has also translated into fewer new hires, although all 14 Alpha banks still saw an increase in headcount in. The total number of staff employed increased by 1,315 to 30,737 personnel at the end of the year, compared with an increase of 1,653 staff members in 2014. More cautious organic growth among Alpha banks is helping keep operating costs in check at a time of rising domestic and global political and economic uncertainty. Staff expenses, which made up 27.2% of operating income in, rose by just 1.93% to $1.54bn during the year, down from growth of 11.2% in 2014. As a result, banks were able to cut their growth in operating expenses by over a half to 4.5% in, compared with 9.3% the year before. Alpha Group net profit () 1.60 1.72 1.72 1.87 2.04 2011 2012 2013 2014 Source: Bankdata FInancial Services, Economena, SGBL Research

Key indicators Cleared cheques Real estate transactions Construction permits Cement deliveries Tourist arrivals Airport traffic Balance of payments Money supply: M3 BSE volumes Passenger car sales Hotel occupancy (average) Sqm, m Tons, m m m m % 69.44 8.01 12.34 5.04 1.52 7.24-3.36 123.62 74.64 39,361 56 5.80 0.90 1.08 0.45 0.12 0.62-0.37 123.62 4.16 3,440 56 Jan-16 5.77 0.53 0.81 0.25 0.09 0.55-0.72 123.26 4.48 2,411 53 Feb-16 n.a 0.89 1.24 n.a 0.10 0.55 n.a n.a 4.96 2,793 57-0.78 85.15 0.27-4.73 14.37 0.15 156.60 5.23-77.32 30.45 2 YTD 5.77 1.41 2.05 0.25 0.19 1.09-0.72-0.36 9.44 5,204 55 PYTD 5.82 1.00 1.83 0.26 0.18 0.90-0.28-0.54 24.80 4,577 53 Indices Consumer Confidence Index - ARA Consumer Price Index Purchasing Managers' Index BdL Coincident Indicator 95.08 97.03 48.38 278.61 108.00 95.92 47.90 302.30 Jan-16 115.00 94.07 49.10 n.a. Feb-16 84.00 94.35 47.40 n.a. -24.32-2.94-2.67 3.35 %YTD -22.22-1.63-1.04 3.35 Trade Imports Exports Trade balance Port of Beirut volumes TEUs, m 18.07 2.95-15.12 1.13 1.84 0.24-1.60 0.10 Jan-16 1.49 0.19-1.31 0.09 Feb-16 1.38 0.23-1.15 0.08 4.31-3.29 5.96 4.44 YTD 2.87 0.41-2.46 0.17 PYTD 2.66 0.49-2.17 0.16 Financial and monetary Commercial bank assets Claims on the resident private sector Claims on the non-resident private sector Claims on the public sector Resident private sector deposits Dollarization rate (average) Non-resident private sector deposits Dollarization rate (average) Private sector deposits with commercial banks Private loans / deposits Public sector deposits BdL foreign assets BSE market capitalization Gross public debt % % % 185.99 48.04 6.18 37.80 119.73 59.32 31.86 86.44 151.59 39.74 8.77 40.49 11.22 70.31 Nov-15 183.18 47.45 5.77 37.94 118.84 59.02 30.96 85.84 149.81 39.93 9.49 41.51 11.19 70.44 185.99 48.04 6.18 37.80 119.73 59.23 31.86 86.09 151.59 40.13 8.77 40.49 11.22 70.31 Jan-16 186.20 48.17 6.22 37.87 119.51 58.96 31.98 86.01 151.50 40.31 8.76 n.a. 11.09 70.62 5.95 6.40 17.63 1.90 5.05-0.77 5.27-1.18 5.10 0.51-4.05-6.61-1.46 6.06 YTD 0.21 0.13 0.04 0.07-0.21 58.96 0.12 86.01-0.09 40.31-0.02-2.87-0.13 0.30 %YTD 0.11 0.27 0.61 0.17-0.18 0.99 0.39 0.99-0.06 1.01-0.22-6.61-1.18 0.43 Public finance Revenues Value Added Tax Telecommunications Income taxes Customs Expenditures Transfers to EdL Debt service Primary balance Fiscal balance $m 9.58 2.10 1.23 1.92 473.20 13.53 1.14 4.46 0.72-3.95 Oct-15 1.04 0.32 0.21 0.16 42.82 1.03 0.08 0.46 0.49 0.01 Nov-15 0.61 0.11 0.10 0.07 38.26 1.25 0.09 0.50-0.10-0.64 0.70 0.10 0.07 0.07 38.87 1.41 0.08 0.36-0.34-0.71-52.51-10.13-92.07 11.17-6.05-7.28-65.21 14.55-1,357.67 YTD: year-to-date, PYTD: previous year-to-date. Source: MoF, BdL, BSE, ARA, Customs, Markit, EY, RHIA, CAS, Economena, SGBL Research YTD 9.58 2.10 1.23 1.92 473.20 13.53 1.14 4.46 0.72-3.95 PYTD 10.88 2.19 2.01 1.85 508.04 13.95 2.13 4.19 1.31-3.07

Lebanese inflation and the Euro (correlation = 0.64) The decrease in prices in Lebanon doesn t appear to reflect a drop in aggregate demand. Instead, falling consumer prices are more likely driven by depreciation in the Euro and in other currencies against the US Dollar to which the Lebanese Pound is pegged. 2,300 2,200 2,100 2,000 1,900 1,800 1,700 1,600 EUR/LBP CPI (% yoy) 12% 10% 1,500-6% Feb-10 Feb-12 Feb-14 Feb-16 8% 6% 4% 2% 0% -2% -4% Source: CAS, BdL, Economena, SGBL Research Beirut hotel occupancy and RevPAR (12m moving average) Beirut s hotels are lowering their prices to keep their occupancy rates above 55%. The Revenue per Available Room (RevPAR) for Beirut s 4- and 5-star hotels fell to $96.4 in the 12 months through February, 2016. 220 200 180 160 140 120 100 80 RevPAR ($) Occupancy (%) 56.17 55 96.42 60 45 Feb-10 Feb-12 Feb-14 Feb-16 80 75 70 65 60 50 Source: EY, Economena, SGBL Research Lebanon exports (Jan-Feb 2016, yoy change, $m) Weighted average interest rate on USD deposits (%) Lebanese exports to South Africa regained momentum in the first two months of 2016, while those to Arab countries, including Saudi Arabia and UAE, are losing ground. Exports to China, Germany, Bulgaria, and Iran were also higher through February. South Africa Germany China / Hong Kong Bulgaria Iran Switzerland Syria Iraq ed Arab Emirates Saudi Arabia -17.6-11.1-13.4-8.7-9.3 2.9 2.4 5.6 4.5 13.7 Source: Customs, Economena, SGBL Research THE APP TOMANAGE YOUR ACCOUNTS Banks in Lebanon are consistently paying more to attract dollar deposits. The average rate on new deposits in the three months through January, 2016 hit 3.19%, an increase of 9 basis points over the same period in. 2.85 2.86 2.96 3.10 3.19 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Source: ABL, Economena, SGBL Research MOBILE BANKING sgbl.com