YTD Growth (in %) Peer Balance sheet data (In LL Million) Sep-12 Dec-12 Sep-13 Average High Low Assets 1. Cash and balances with Central Banks 44,930,294 47,466,979 50,997,524 7.44 28.70-9.02 2. Deposits with banks and financial institutions 22,565,967 24,109,216 20,334,787-15.66 9.88-39.19 3. Due from HO/Parent, sister, related banks and fin. inst. 1,112,603 977,243 875,649-10.40-6.42-31.50 4. Loans to banks & fin. inst. & reverse repurchase agreements 2,171,871 2,693,341 2,689,007-0.16 179.18-60.90 5. Financial assets given as collateral 70,471 75,037 144,924 93.14 108.43-20.17 6. Derivative financial instruments 69,786 100,302 197,242 96.65 180.74-11.96 7. Shares and participations at FVTPL 310,770 320,994 385,972 20.24 403.80-32.58 8. Debt instruments and other financial assets at FVTPL 4,102,457 4,277,104 5,442,411 27.25 478.34-77.22 Of which net advances and loans at FVTPL (1) - 75,555 50,053-33.75-33.75-33.75 9. Net loans and advances to customers at amortized cost (1) 64,409,532 67,437,556 74,786,584 10.90 31.54 1.48 10. Net loans and advances to related parties at amortized cost (1) 1,522,852 1,452,196 913,363-37.10 54.14-99.11 11. Debtors by acceptances 2,129,770 1,782,012 2,038,997 14.42 107.02-30.67 12. Debt instruments classified at amortized cost 78,358,153 79,662,376 83,771,998 5.16 24.45-40.84 13. Shares and participations at FVTOCI 1,081,498 1,136,968 998,556-12.17 16.18-99.45 14. Investments in associates 300,111 307,724 312,913 1.69 19.32-52.81 15. Assets taken in settlement of debt 942,520 932,802 1,009,297 8.20 243.71-27.10 16. Property and equipment 2,590,154 2,721,127 2,750,737 1.09 29.23-24.07 17. Intangible fixed assets 76,493 108,615 138,125 27.17 28.56-88.98 18. Non current assets held for sale 29,490 64,787 31,537-51.32 6.83-0.14 19. Other assets 1,477,310 1,280,476 1,634,974 27.68 197.80-6.29 20. Goodwill 872,748 831,508 805,353-3.15 1.14-11.22 Total assets (3) 229,124,846 237,738,365 250,259,950 5.27 11.55 0.77 Breakdown of balance sheet (In LL Million) Total Assets 229,124,846 237,738,365 250,259,950 5.27 11.55 0.77 Of which domestic 188,031,622 192,698,402 203,189,512 5.44 16.23-3.37 in LL 72,644,888 75,188,427 78,190,281 3.99 10.93-6.65 in FC 115,386,735 117,509,975 124,999,231 6.37 20.37-1.81 Of which foreign 41,093,224 45,039,963 47,070,439 4.51 38.32-89.23 Deposits from customers 191,724,394 199,086,595 209,069,158 5.01 9.95 0.51 Of which domestic 162,201,519 166,853,307 175,031,779 4.90 17.33-4.24 in LL 60,364,234 62,144,974 63,710,309 2.52 10.06-11.04 in FC 101,837,284 104,708,333 111,321,470 6.32 21.67-1.67 Of which foreign 29,522,875 32,233,287 34,037,379 5.60 48.09-89.25 Loans to customers 65,932,384 68,965,307 75,749,999 9.84 29.78 0.00 Of which domestic 50,492,239 52,064,916 54,439,321 4.56 13.09-0.74 in LL 11,532,826 11,883,813 12,935,808 8.85 21.93-16.45 in FC 38,959,413 40,181,103 41,503,513 3.29 16.20-3.50 Of which foreign 15,440,145 16,900,390 21,310,679 26.10 74.38-22.76 General information Sep-12 Dec-12 Sep-13 Peer Change High Low Number of branches 1,037 1,056 1,079 23 176 16 Domestic 720 731 740 9 116 15 Abroad 317 325 339 14 96 1 Staff employed (Banks + non Banks) 25,397 25,873 26,548 675 5,671 371 Domestic 17,946 18,269 18,552 283 3,006 351 Abroad 7,451 7,604 7,996 392 2,665 4 Staff employed in banking entities 24,088 24,520 25,096 576 5,192 371 Bankdata Financial Services 3
YTD Growth (in %) Peer Balance sheet data (In LL Million) Sep-12 Dec-12 Sep-13 Average High Low Liabilities and shareholders' equity 1. Due to Central Banks 3,018,716 2,468,127 2,912,918 18.02 942.01-25.08 2. Due to banks & fin. inst. and repurchase agreements 7,298,103 8,285,561 7,867,496-5.05 69.84-88.64 3. Due to HO/Parent, sister, related banks and fin. inst. 156,096 35,204 24,450-30.55 1.22-99.89 4. Financial assets taken as a guarantee 775 774 3,921 406.59-2.45-2.45 5. Derivative financial instruments 83,335 117,150 198,722 69.63 138.11-42.94 6. Financial liabilities at FVTPL 103,308 114,294 65,434-42.75-17.76-62.96 Of which deposits at FVTPL (2) 46,554 101,615 16,010-84.24-59.71-62.96 7. Deposits from customers at amortized cost (2) 187,953,336 195,463,813 206,094,665 5.44 10.06-0.09 8. Deposits from related parties at amortized cost (2) 3,724,503 3,521,167 2,958,482-15.98 469.87-87.56 9. Debt issued and other borrowed funds 1,153,343 1,437,457 1,405,625-2.21 1.41-35.94 10. Engagements by acceptances 2,129,770 1,782,012 2,038,997 14.42 107.02-30.67 11. Other liabilities 3,141,980 2,684,700 3,271,068 21.84 94.51-11.21 12. Provisions for risks and charges 721,157 702,988 766,057 8.97 59.33-42.00 13. Subordinated loans and similar debts 534,643 686,473 1,246,006 81.51 34.00-3.25 14. Non current liabilities held for sale 1,376 14,799 2,411-83.71 - - Total liabilities 210,020,442 217,314,518 228,856,253 5.31 10.83 0.32 1. Capital - common shares 3,509,646 3,515,964 3,531,702 0.45 3.59 3.59 2. Capital - preferred shares 150,695 183,698 187,225 1.92 166.67-66.04 3. Issue premium - common shares 1,527,714 1,678,424 1,678,423 0.00 0.00 0.00 4. Issue premium - preferred shares 3,370,550 3,865,299 4,322,898 11.84 82.66-4.25 5. Cash contribution to capital 279,220 277,761 277,761 0.00 - - 6. Legal and statutory reserves 3,174,442 3,205,889 3,784,857 18.06 40.42 4.79 7. Reserves available for distribution 1,335,952 1,497,935 1,780,041 18.83 40.34 1.68 8. Treasury shares -140,368-124,257-126,973-2.19 59.73-23.68 9. Retained earnings 2,893,688 2,739,865 3,193,933 16.57 98.74-33.45 10. Revaluation reserve of real estate 124,438 130,262 129,684-0.44 0.00-1.47 11. Reserve on revaluation of financial assets at FVTOCI 16,291 69,746 197,117 182.62 88.41 0.29 12. Reserve on changes in fair value of cash flow hedges 11,992 5,244 12,217 132.97 132.97 132.97 13. Foreign currency translation reserve -362,868-437,113-796,939-82.32-8.60-218.31 14. Other reserves 385,734 404,670 424,380 4.87 26.59-4.25 15. Result of the financial period 1,866,222 2,460,149 1,875,254-23.77 17.24-33.11 Total shareholders' equity - Group share 18,143,348 19,473,535 20,471,581 5.13 29.94-0.76 Shareholders' equity - Non controlling interest 961,056 950,312 932,116-1.91 15.42-34.65 Total shareholders' equity 19,104,404 20,423,847 21,403,697 4.80 28.89-2.04 Total liabilities and shareholders' equity 229,124,846 237,738,365 250,259,950 5.27 11.55 0.77 Selected off-balance sheet items LCs 4,148,023 4,013,636 3,996,459-0.43 99.07-47.15 Total LC openings 22,700,212 29,539,656 21,918,654-3.44 29.24-45.40 LGs 10,341,181 10,265,152 10,394,745 1.26 99.18-14.83 Fiduciary accounts 3,139,726 3,439,398 3,415,692-0.69 40.81-50.81 Assets under management 25,016,053 26,588,067 27,609,533 3.84 33.66-92.27 (1) Of which loans to customers in FC 54,399,558 57,081,493 62,814,191 10.04 31.36-3.11 (2) Of which deposits from customers in FC 131,360,159 136,941,621 145,358,849 6.15 15.19-0.92 (3) Of which total assets in FC 156,479,959 162,549,938 172,069,670 5.86 14.77-1.72 Bankdata Financial Services 4
Liquidity (In %) Sep-12 Dec-12 Sep-13 Peer High Low Primary liquidity / assets 30.92 31.68 29.99 29.99 36.49 22.84 Of which Central Bank / assets 19.61 19.97 20.38 20.38 29.30 15.97 Of which Banks / assets 11.31 11.72 9.61 9.61 14.35 5.88 Net primary liquidity / deposits 31.49 32.41 30.72 30.72 39.88 19.92 Of which net primary liquidity in LL / deposits in LL 21.51 22.27 20.08 20.08 42.34 6.70 Of which net primary liquidity in FC / deposits in FC 36.08 37.02 35.39 35.39 53.90 22.53 Loans / deposits 34.39 34.64 36.23 36.23 46.14 21.25 Of which loans / deposits in LL 19.11 19.12 20.30 20.30 28.24 11.29 Of which loans / deposits in FC 41.41 41.68 43.21 43.21 52.80 29.06 Portfolio securities breakdown (In LL Million) Peer YTD % High Low Lebanese treasury bills in LL 21,980,500 23,225,303 24,277,087 4.53 147.18-43.58 Lebanese sovereign eurobonds in FC 17,063,394 17,480,977 23,145,150 32.40 120.70-43.55 BDL Certificates of Deposits in LL 21,863,473 21,817,627 22,687,168 3.99 72.20-66.76 BDL Certificates of Deposits in FC 9,876,468 9,565,546 6,772,761-29.20 93.10-99.33 Other debt instruments 11,676,774 11,774,472 12,282,189 4.31 793.80-32.33 Equity instruments 1,392,268 1,457,963 1,384,528-5.04 72.61-99.45 Total 83,852,877 85,321,888 90,548,884 6.13 25.35-6.14 In % Peer High Low Portfolio securities / deposits 43.74 42.86 43.31 43.31 56.79 36.40 Lebanese Treasury bills in LL / deposits in LL 36.41 37.37 38.11 38.11 53.41 13.91 BDL's Certificates of deposits in LL / deposits in LL 36.22 35.11 35.61 35.61 67.31 11.27 Lebanese Sovereign eurobonds / deposits in FC 12.99 12.77 15.92 15.92 31.26 5.73 BDL's Certificates of deposits in FC / deposits in FC 7.52 6.99 4.66 4.66 12.83 0.04 Lebanese Sovereign eurobonds / equity 89.32 85.59 108.14 108.14 229.82 33.59 Asset quality (In LL Million) Peer YTD % High Low Gross loans 70,380,893 73,432,791 80,585,662 9.74 29.19 0.33 Gross substandard loans (SLs) 598,443 434,954 544,268 25.13 215.59-61.48 Of which interest in suspense 125,672 118,904 108,390-8.84 109.24-61.65 Net substandard loans 472,772 316,050 435,878 37.91 369.09-61.44 Gross doubtful loans (DLs) 4,280,130 4,562,479 4,779,719 4.76 23.46-31.37 Of which net doubtful loans 771,330 935,515 884,743-5.43 116.85-52.35 Of which specific provisions for doubtful loans 1,726,560 1,794,208 1,944,176 8.36 29.39-55.06 Of which interest in suspense 1,782,240 1,832,756 1,950,799 6.44 26.20-20.14 Net loans 65,932,384 68,965,307 75,749,999 9.84 29.78 0.00 Gross DLs + SLs 4,878,574 4,997,432 5,323,987 6.53 19.88-29.07 Net DLs + SLs 1,244,102 1,251,565 1,320,621 5.52 81.85-62.80 LLRs on DLs and SLs 3,634,472 3,745,867 4,003,366 6.87 20.11-33.82 Collective provisions 814,037 721,617 832,297 15.34 56.64-6.50 Debt written off 1,035,161 1,161,356 1,234,671 6.31 90.25-17.93 Asset quality ratios (In %) Peer High Low Gross DLs / gross loans 6.08 6.21 5.93 5.93 16.20 1.79 Gross SLs + DLs / gross loans 6.93 6.81 6.61 6.61 16.79 2.23 Net DLs / gross loans 1.10 1.27 1.10 1.10 3.37-0.20 Net SLs + DLs / gross loans 1.77 1.70 1.64 1.64 3.82 0.11 LLRs on DLs / DLs 81.98 79.50 81.49 81.49 111.21 67.22 LLRs / gross loans 6.32 6.08 6.00 6.00 13.70 2.32 Collective provisions / net loans 1.23 1.05 1.10 1.10 3.14 0.20 Net DLs / equity 4.04 4.58 4.13 4.13 12.67-0.63 Equity / assets 8.34 8.59 8.55 8.55 10.06 6.64 Write-offs / gross DLs + write-offs 19.48 20.29 20.53 20.53 51.38 2.64 Bankdata Financial Services 5
Income Statement (In LL million) Sep-12 Dec-12 Sep-13 Peer YOY % High Low Interest & similar income 8,908,777 11,992,455 9,524,054 6.91 19.91-7.19 Interest & similar expense 5,755,061 7,760,242 6,298,706 9.45 27.10-10.34 Net interest income 3,153,715 4,232,213 3,225,348 2.27 42.92-54.47 Fee & commission income 998,631 1,322,657 1,045,652 4.71 22.46-5.96 Fee & commission expense 195,766 230,869 214,516 9.58 32.40-71.74 Net fee & commission income 802,865 1,091,789 831,136 3.52 55.30-9.78 Net gain(loss) on financial assets(liabilities) at FVTPL 559,454 757,239 533,759-4.59 131.53-41.83 Of which net unrealized gain(loss) 107,708 133,318 51,495-52.19 139.11-72.44 Of which net interest income(expense) 128,376 175,564 143,330 11.65 685.46-43.86 Of which net profits on foreign exchange 242,573 337,596 294,928 21.58 128.85-26.99 Net gain(loss) on financial investments 434,880 609,288 641,919 47.61 354.85-18.20 Other operating income 171,378 192,164 141,964-17.16 137.89-91.95 Total operating income 5,122,292 6,882,693 5,374,124 4.92 44.64-0.56 Net provisions for credit losses 441,253 601,688 448,509 1.64 158.24-63.73 Credit losses on debt instruments at amortized cost 681 1,299 5,571 718.67 154.48 154.48 Specific provisions for doubtful loans 380,571 574,717 331,717-12.84 635.17-80.42 Recoveries of provisions for doubtful loans 120,012 175,415 101,113-15.75 212.66-74.06 Collective provisions 189,104 213,766 192,415 1.75 364.20-94.27 Other net provisions -9,091-12,678 19,920 0.00 79.40 79.40 Provisions for impairment of other financial instr./inv. -18,967-19,003 1,222 0.00 51.11-6.25 Net operating income 4,700,006 6,300,008 4,924,393 4.77 25.10-7.70 Staff expenses 1,347,025 1,790,100 1,450,962 7.72 21.87-2.14 Administrative & other operating expenses 929,883 1,278,278 1,011,511 8.78 42.87-4.90 Depreciation of tangible fixed assets 155,336 204,585 160,617 3.40 23.56-23.63 Amortization of intangible fixed assets 11,509 19,475 18,506 60.80 228.96-76.98 Impairment of goodwill 9,817 21,167 - - - - Total operating expenses 2,453,570 3,313,606 2,641,595 7.66 22.24-5.30 Operating profit 2,246,436 2,986,402 2,282,797 1.62 50.23-10.45 Share of profit of associates under equity method 13,544 28,506 20,958 54.74 167.78-25.14 Net gain(loss) from sale or disposal of other assets 10,164 13,284 2,345-76.92 254.60-85.06 Profit before tax 2,270,145 3,028,192 2,306,101 1.58 46.09-10.45 Income tax 417,562 524,089 381,875-8.55 54.61-41.36 Profit after tax from operating activities 1,852,583 2,504,102 1,924,227 3.87 48.72-7.40 Profit after tax from discontinued activities 49,487 33,814 - - - - Net profit 1,902,070 2,537,917 1,924,227 1.16 48.72-15.55 Of which domestic net profit 1,568,822 2,133,610 1,603,337 2.20 48.72-8.85 Net profit - Non controlling interest 35,922 57,686 48,973 36.33 262.65-24.11 Net profit - Group share 1,866,148 2,480,231 1,875,254 0.49 48.68-17.03 Earnings per share 29,262.71 3,119,305.54 33,436.67 14.26 37.84-19.02 Structural ratios (In %) Sep-12 Dec-12 Sep-13 Peer High Low Interest expense / interest income 63.68 63.78 65.15 65.15 88.36 59.53 Credit cost / pre-provision, pre-tax profit 16.39 16.66 16.27 16.27 29.13-7.43 Credit cost / outstanding net loans 0.89 0.87 0.79 0.79 1.71-0.29 Non interest income / total income 36.22 36.35 37.59 37.59 71.06 18.52 Net fees and commissions / non interest income 43.07 43.38 40.97 40.97 67.86 9.84 Net fees and commissions / average assets 0.48 0.48 0.45 0.45 0.59 0.16 Operating expenses / average assets 1.46 1.45 1.44 1.44 2.24 0.87 Income tax / profit before tax 18.39 17.31 16.56 16.56 20.40 10.06 Net profit - group share / net profit 98.11 97.73 97.45 97.45 101.81 94.17 Bankdata Financial Services 6
Peer performance Key performance metrics (In %) Sep-12 Dec-12 Sep-13 Average High Low Yield on earning assets 5.63 5.56 5.51 5.51 6.04 4.92 o.w. in LL 7.32 7.28 7.04 7.04 7.78 4.99 o.w. in FC 4.85 4.78 4.81 4.81 6.18 3.84 - Cost of earning assets 3.58 3.55 3.59 3.59 4.97 3.18 o.w. in LL 4.98 4.99 4.87 4.87 5.97 3.61 o.w. in FC 2.94 2.89 3.00 3.00 4.10 2.55 Cost of funds 3.84 3.81 3.86 3.86 5.32 3.45 o.w. in LL 5.63 5.66 5.53 5.53 6.73 4.38 o.w. in FC 3.09 3.03 3.16 3.16 4.20 2.70 = Interest margin 2.04 2.02 1.92 1.92 2.36 0.65 o.w. in LL 2.34 2.30 2.17 2.17 3.26-0.98 o.w. in FC 1.91 1.89 1.80 1.80 2.50 0.99 x Average interest earning assets / average assets 95.53 95.68 95.92 95.92 98.66 90.93 o.w. in LL 96.00 95.87 95.75 95.75 98.63 89.33 o.w. in FC 95.31 95.59 96.00 96.00 98.67 91.50 = Spread 1.95 1.93 1.84 1.84 2.23 0.65 o.w. in LL 2.24 2.20 2.08 2.08 3.13-0.96 o.w. in FC 1.82 1.80 1.73 1.73 2.36 0.95 + Non interest income / average assets 1.11 1.10 1.11 1.11 2.01 0.43 = Asset utilization 3.06 3.03 2.95 2.95 3.83 2.23 x Net operating margin 36.00 36.16 35.65 35.65 49.74 27.89 Of which cost / income 47.68 47.85 48.94 48.94 58.59 36.86 Of which credit cost 8.57 8.69 8.31 8.31 15.69-3.17 Of which provisions on impairment of financial instruments -0.37-0.27 0.02 0.02 0.19 0.01 Of which tax cost 8.11 7.57 7.08 7.08 9.74 3.21 = ROAA 1.10 1.10 1.05 1.05 1.38 0.77 x Leverage (times) 11.86 11.88 11.49 11.49 15.74 9.69 = ROAE 13.07 13.01 12.08 12.08 17.55 9.16 ROACE 14.81 14.59 13.54 13.54 21.07 9.12 Management efficiency Average footings per branch (LL Billion) 265.190 268.115 280.573 280.573 425.331 167.170 Average footings per staff (LL Billion) 10.832 10.950 11.427 11.427 19.397 7.944 Average staff per branch 23.22 23.21 23.24 23.24 29.34 16.39 Cost per average branch (LL Billion) 2.382 3.188 2.475 2.475 3.765 1.733 Staff expenses per average staff (LL Billion) 0.053 0.070 0.055 0.055 0.068 0.044 Staff expenses to general operating expenses (%) 54.90 54.02 54.93 54.93 62.99 47.08 Total income per average staff (LL Billion) 0.204 0.272 0.206 0.206 0.311 0.132 Investment considerations Common shares outstanding (000) 1,496,698 1,497,014 1,497,014 115,155 565,515 57 Of which GDRs 239,684 240,265 240,133 18,472 102,018 64,219 Preferred shares outstanding (000) 73,104 76,979 68,092 5,238 21,000 32 Common earnings per share (LL) 1,108.30 1,454.93 1,096.97 1,096.97 2,329,681.81 228.75 Common book per share (LL) 9,631.03 10,101.68 10,506.50 10,506.50 15,243,530.18 3,021.69 Bankdata Financial Services 7