A Leading Regional 1 Banking Group US$ 42 billion in total assets as at 31/12/2014 Of which 47% from entities outside Lebanon and 33% in investment grade countries Consolidated Activity Highlights as at EndDecember 2014 Sustained and Diversified Growth of Assets and Profits US$ 35.8 billion of total customers deposits, growing by 15.2% relative to enddecember 2013, of which 45% from entities outside lebanon US$ 17.2 billion of loans to customers, growing by 16.7% relative to enddecember 2013, of which 66% from entities outside lebanon US$ 3.3 billion of shareholders equity, after completing a capital increase of US$ 300 million in September 2014 US$ 350 million of net profits in 2014, growing by 15% relative to 2013, of which 42% from entities outside lebanon Financial Standing Indicators 13.7% of capital adequacy ratio as per Basel III 3.1% only of gross doubtful loans to gross loans ratio, reaching 0.9% when deducting specific loan loss reserves, excluding collective provisions 45.2% of primary liquidity to customers deposits ratio 13.6% of return on average common equity Universal Banking Offering through 12 Banks and 3 Financial Companies in 13 Countries LEBANON SWITZERLAND FRANCE JORDAN SYRIA EGYPT SUDAN KINGDOM OF SAUDI ARABIA QATAR MONACO TURKEY IRAQ REP. OFF. IN ABU DHABI 1 Refers to the Middle East and North Africa Region Bank Audi sal www.bankaudigroup.com
Consolidated Statement of Financial Position (Unaudited) ASSETS 31/12/2014 31/12/2013 Cash and balances with Central Banks Deposits with banks and financial institutions Loans to banks and financial institutions and reverse repurchase agreements Due from head office, sister, related banks and financial institutions Financial assets given as collateral Derivative financial instruments Shares and participations at fair value through profit and loss Debt instruments and other similar financial assets at fair value through profit and loss Of which: Net advances and loans at fair value through profit and loss Net loans and advances to customers at amortized cost (1) Net loans and advances to related parties at amortized cost (2) Debtors by acceptances Debt instruments classified at amortized cost (3) Shares and participations at fair value through other comprehensive income Investments in associates Assets taken in settlement of debts Property and equipment Intangible fixed assets Non current assets held for sale Other assets 13,247,387 9,192,108 3,657,466 4,229,556 2,928,743 657,945 192,091 136,062 58,170 64,632 410,078 344,451 12,043 47,844 25,770,531 22,064,822 110,007 114,829 340,480 262,689 14,573,317 16,023,035 135,706 272,475 27,587 28,615 18,510 14,334 949,604 575,836 92,652 82,259 4,984 541,359 278,584 Goodwill 197,473 211,144 Total assets 63,251,161 54,558,360 (1) After deduction of provisions amounting to LBP 679,237 million from loans and advances to customers as per IAS 39, of which LBP 209,555 million representing provisions on collective assessment. (2) Loans granted to related parties against cash collateral amounted to LBP 53,850 million. (3) Includes an amount of LBP 2,244 billion with risk ceded to customers.
Consolidated Statement of Financial Position (Unaudited) LIABILITIES 31/12/2014 31/12/2013 Due to Central Banks Due to banks and financial institutions and repurchase agreement Due to head office, sister, related banks and financial institutions Financial assets taken as a guarantee Derivative financial instruments Financial liabilities at fair value through profit and loss Of which: deposits at fair value through profit and loss Customers' deposits at amortized cost Deposits from related parties at amortized cost Debt issued and other borrowed funds Engagements by acceptances Other liabilities Provisions for risks and charges Subordinated loans and similar debts Non current liabilities held for sale Total liabilities Shareholders' Equity Group share Capital Common shares 659,586 Capital Preferred shares 8,250 Issue premium Common shares 883,582 Issue premium Preferred shares 745,500 Subsidiary shares warrants Share Capital and Cash contribution to capital 72,586 Non distributable reserves Distributable reserves 618,290 Treasury shares Retained earnings 606,914 Proposed dividends Revaluation reserve of real estate 355,380 Reserve on revaluation of financial assets at fair value through other comprehensive income 27,685 Remeasurement actuarial (gain)/loss on defined benefit plan Share of associates' other comprehensive income under equity method 4,546 Foreign currency translation reserve Net (loss) gain on hedge of net investments in foreign entities 438,385 252,042 1,785,794 1,796,092 116,303 134,466 53,422,738 46,118,217 580,462 757,590 89,528 340,480 262,689 519,069 502,771 153,958 132,882 764,927 537,101 58,211,644 50,493,850 454,324 6,495 659,206 747,255 19,259 72,586 1,050,579 959,545 589,523 (4,929) (114,327) 441,400 20,375 119,443 (12,454) (13,641) (557,162) Result of the current Period 513,436 Shareholders' Equity _ Group Share 4,976,234 Non Controlling Interest 63,283 Total shareholder's equity Total liabilities and equity 4,546 (399,804) (14,814) 454,621 4,001,547 62,963 5,039,517 4,064,510 63,251,161 54,558,360
Consolidated Off Balance Sheet (Unaudited) 31/12/2014 31/12/2013 Financing commitments Financing commitments given to banks and financial institutions 685,748 570,906 Financing commitments given to customers 4,491,889 3,754,997 Bank guarantees Guarantees given to banks and financial institutions 351,005 383,675 Of which: credit derivatives 889 Guarantees received from banks and financial institutions 1,706,271 424,712 Of which: credit derivatives Guarantees given to customers 2,337,082 2,242,142 Guarantees received from customers 28,292,046 20,898,416 Financial notes commitments Financial notes commitments to be received Of which: financial instruments sold with a buy back option Financial notes commitments to be delivered Of which: financial instruments purchased with a buy back option Foreign currencies forwards Foreign currencies to receive 5,049,267 4,355,887 Foreign currencies to deliver 5,053,068 4,370,373 Commitments on term financial instruments 9,808,834 7,167,566 Other Commitments Claims from legal cases Fiduciary accounts 1,727,524 1,389,016 Under specific instructions 1,427,779 1,351,026 Under discretionary investments 299,745 37,990 Assets under management 12,933,250 12,286,291 Mutual funds 561,719 327,000 Structured financial products Engagement unlikely to be executed Bad debts written off during the year 13,676 14,371
Consolidated Income statement (unaudited) 2014 2013 Interest and similar income 3,401,959 2,693,381 Interest and similar expense (2,150,881) (1,731,234) Net interest margin 1,251,078 962,147 Fee and commission income 458,037 351,110 Fee and commission expense (85,356) (69,092) Net Fee and commission Income 372,681 282,018 Net gain on financial assets or liabilities at fair value through profit and loss 50,717 162,307 Of which: interest income 17,868 26,719 Net gain on financial investments 294,156 193,557 Other operating Income 24,210 12,909 Total operating income 1,992,842 1,612,938 Net provisions for credit losses (207,011) (135,362) Credit losses related to debt instruments classified at amortized cost 699 736 Provision for doubtful accounts (226,968) (150,229) Recoveries of provisions for doubtful accounts 19,258 14,131 Impairment on related financial investments Net Operating income 1,785,831 1,477,576 Personnel expenses (622,924) (493,064) Other operating expenses (386,942) (343,122) Depreciation of property and equipment (64,707) (52,723) Amortization of intangible assets (23,586) (16,092) Impairment of goodwill (3,015) Total Operating Expenses (1,101,174) (905,001) Operating Profit 684,657 572,575 Share of profit of associates under equity method 197 1,169 Net gain (loss) on sale or disposal of other asset 816 685 Profit before tax 685,670 574,429 Income tax (157,584) (114,711) Profit after tax 528,086 459,718 Result of discontinued operations, net of tax 39 (600) Profit for the current period 528,125 459,118 Minority Share Profit for the current period 14,689 4,497 Group Share Profit for the current period 513,436 454,621 Basic earnings per share LBP Diluted earnings per share LBP Basic earnings per share from continuing operations LBP Diluted earnings per share from continuing operations LBP