ahlibank.com.qa

Investor

Presentation

Q3 2015

2

Overview

ABQ

Founded in 1983

Listed on the Qatar Exchange with a market cap of c.QAR 9 billion

Strategic Partner of the Qatar Foundation

47% owned by Qatar Holding and Qatar Foundation

Strong market position, focused in Qatar:

– World’s fastest growing economy 2008-2013 (IMF)

– Best regulated banking sector in the Middle East, according to the

World Bank

16 branches and 57 ATMs, all in Qatar

Fitch upgraded ABQ’s credit rating to A+ in Mar 2015

IFRS and Basel III environment

16.0% Basel III Capital Adequacy Ratio (CAR)

89% of funding coming from stable sources of funding:

– Qualifying Deposits (82%)

– Long-term wholesale funding (7%)

Liquid assets 28% of total assets, covering more than 2.4x short-term

funding needs

Effective risk management and high quality loan book as proven by low

non-earning assets

Declining NPL ratio (1.16%) and conservatively provisioned (140%)

28% cost income ratio and a ROAE consistently above 15%

Shareholding Structure

Qatar Foundation 29.41%

Qatar Holding Co (QIA) 17.65%

Others 52.94%

Key Indicators (QR million) Sep 2014 Sep 2015

Total Assets 30,402 32,198

Total Loans 20,202 22,427

Total Customer Deposits 19,675 21,245

Total Equity 4,040 4,426

Capital Adequacy Ratio (Basel III) 17.5% 16.0%

Cost/Income Ratio 30.6 28.2

3

ABQ has been at the heart of the community for over 30 years

1983 - Incorporated as part of CITI Group

1987 - ABQ starts operating as an standalone entity

2004 - Ahli United Bank (AUB) acquires a 40% stake through issue of new shares with a ten year Management Agreement

2008 - QIA announces 20% equity infusion in Qatar’s listed banks based on December 2008 share capital

2011 - Ahli Brokerage Co is launched as a fully owned Licensed Brokerage House in Qatar Exchange

2012 - 20% Rights issue to Qatari Shareholders raising capital of QAR 448m

2013 - AUB gives access to ABQ’s capital to the Qatar Foundation for Education, Science and Community Development through the sale of its 29.4% stake

2013 - New Strategic Plan is approved by the Board

2013 - New Organization Structure in place to focus on business banking and strengthen corporate governance

2014 - New brand reflecting the identity of the bank: “at the heart of the community”

2014 - Debut Syndicated Facility of US$ 200m 3-year loan

Incorporated in 1983

QIA becomes a shareholder (2008)

Qatar Foundation – Strategic Partner (2013)

“at the heart of the community”

4

“At the heart of the community” – Corporate Social Responsibility

Inspired

Our brand identity is a modern interpretation of a potent symbol from Qatar’s past, the oyster shell. The shell protects and nurtures its treasure, growing it over

time, just as we seek to grow and protect our customers’ assets.

We ask, we listen, and we act on

what we learn. We respond by

producing products that genuinely

meet the needs of our community.

We are who we are because of our

community. And that’s why we go

further for our customers and our

stakeholders.

We are always straightforward, approachable, and responsive. We are an active part of the community.

We never forget that our customers are also our neighbours.

Considered

Engaged

We will always stay actively involved

with our community. We aim to be a

sensitive bank: knowledgeable,

experienced, and insightful. We offer

what our customers tell us they need

most: reliable and effective products

and advice they can trust.

Corporate Social Responsibility

The Qatar Society

for Rehabilitation

of Special Needs

5

Shareholding Structure

Aligned shareholders

53% of shareholders are Qatari firms and individuals

Public entities own the remaining 47% of the shares

– The Qatar Foundation became ABQ’s strategic partners in 2013 with

the acquisition of a 29% stake of the bank’s capital from AUB

– Qatar Holding has maintained a c.18% stake

Percentages

Name Number of Shares %

Qatari firms & individuals and Others 96,197,533 52.94%

Qatar Foundation for Education, Science and Community Development 53,451,970 29.41%

Qatar Holding Company (Subsidiary of Qatar Investment Authority) 32,067,750 17.65%

Total 181,717,253 100%

6

Business Lines

Corporate

Treasury and

Investments

Retail

International

Banking

Private BankingAhli Brokerage

7

Business Line Contribution

Total Assets – September 2015 Total Liabilities – September 2015

Net Profit – YTD September 2015

Corporate54.5%

Private & International

5.8%

Retail13.6%

Treasury, Investments &

Brokerage

26.0%

Corporate44.9%

Private & International

9.2%

Retail19.4%

Treasury, Investments &

Brokerage

26.5%

Corporate44.1%

Private & International

7.0%

Retail11.2%

Treasury, Investments &

Brokerage

37.7%

8

533 508

628

692 753

-

100

200

300

400

500

600

700

800

2011 2012 2013 2014 2015

349 367

414 458

506

-

100

200

300

400

500

600

2011 2012 2013 2014 2015

Net Profit Operating Income

Consistent Performer

QR million

CAGR

10%

CAGR

9%

* For 9 months ending September

QR million

9

98

116 126

142

183

-

20

40

60

80

100

120

140

160

180

200

2011 2012 2013 2014 2015

75 78

94

106

113

-

20

40

60

80

100

120

2011 2012 2013 2014 2015

Non-interest Income

Net Fee & Commissions Non Interest Income

CAGR

11%CAGR

17%

QR million

* For 9 months ending September

QR million

10

30%

25%

31%

27%29%

31%32%

30%28%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2007 2008 2009 2010 2011 2012 2013 2014 Sep 2015

Managing Efficiency

Cost Income ratio

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Sep 2015

Asset peremployee

20.8 24.1 30.3 41.2 43.6 45.4 46.3 43.6 50.1 64.6 73.4 72.0

Headcount 206 257 315 378 408 407 389 411 411 405 429 447

-

50

100

150

200

250

300

350

400

450

500

0

10

20

30

40

50

60

70

80

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Sep 2015

Profit peremployee

407 539 642 801 1,044 738 1,060 1,076 1,132 1,298 1,402 1,508

Headcount 206 257 315 378 408 407 389 411 411 405 429 447

150

200

250

300

350

400

450

0

200

400

600

800

1,000

1,200

1,400

1,600

Asset per employee – QR million Profit per employee – QR ‘000

Cost to income (%) 2013 2014 YTD Sep 2015

Rayan 18.85 20.75 22.10

QNB 20.75 21.77 22.27

QIIB 22.45 21.51 23.70

ABQ 32.30 30.00 28.24

QIB 33.71 32.35 31.13

Khaliji 40.62 42.00 35.38

DB 36.10 35.84 35.79

CBQ 41.85 41.92 41.05

11

Steady Balance Sheet Growth

2,513

3,442 3,563

4,171 4,426

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2011 2012 2013 2014 Sep-15

12,690 13,953

18,891 19,893

21,245

-

5,000

10,000

15,000

20,000

25,000

2011 2012 2013 2014 Sep-15

12,344 14,014

17,312

21,308 22,427

-

5,000

10,000

15,000

20,000

25,000

2011 2012 2013 2014 Sep-15

17,923 20,606

26,177

31,380 32,198

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2011 2012 2013 2014 Sep-15

EquityDeposits

Assets Loans & Advances

QR million

CAGR

17% CAGR

17%

CAGR

15%CAGR

16%

QR million

QR million

QR million

12

2010 2011 2012 2013 2014 Sep 2015

Total Loans (Gross) 11,654 12,521 14,410 17,628 21,663 22,796

Standard Loans 11,312 12,152 13,953 17,376 21,403 22,532

Sub-standard Loans (NPL) 341 369 458 251 259 264

NPL/Total Loans (%) 2.93 2.95 3.18 1.42 1.20 1.16

2.93% 2.95% 3.18% 1.42% 1.20% 1.16%

97.07% 97.05%

96.82%

98.58%

98.80% 98.84%

-

5,000

10,000

15,000

20,000

25,000

Asset Quality

NPL ratio falls to 0.93% from 1.16% after adjusting for regularized NPLs of QR51 mln

QR

mil

lion

13

Loan Provision Coverage

QR million 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sep 2015

NPL 403 360 164 155 159 235 341 369 458 251 259 264

Provisions 361 336 146 141 147 209 315 367 397 315 355 369

89.5%93.3%

89.0% 90.9% 92.4% 89.0% 92.2%99.4%

86.7%

125.3%

136.9% 139.8%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sep 2015

14

Capital Adequacy Ratio

2007 2008 2009 2010 2011 2012 2013 2014 Sep 2015

Tier II 424 317 311 332 335 350 351 121 122

Tier I 1,065 1,128 1,442 1,531 2,283 2,758 3,152 3,923 3,921

CAR (%) 12.9 12.0 15.2 14.9 22.1 20.8 19.2 18.1 16.0

12.912.0

15.2 14.9

22.120.8

19.2

18.1

16.0

0.0

5.0

10.0

15.0

20.0

25.0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

%

QR

millio

n

Tier I Tier II CAR (%)

15

Diversified Funding Mix

Debut Syndicated Bank Facilities (September 2014)

3-year US$ 200m Syndicated Term Loan Facility for general

corporate funding purposes

Syndication was launched in an initial amount of US$ 100,000,000

and closed significantly oversubscribed

Lead Arrangers and Bookrunners were Barclays Bank,

Commerzbank, HSBC ,and First Gulf Bank PJSC

Lengthening Maturity Profile

5-year QAR 750m and 3-year US$ 125m Term Loan Facilities were

concluded in October 2014 and June 2015 respectively

We now have significantly improved our funding profile, positioning

ourselves in line with most peers, and demonstrated our ability to

access capital markets

DescriptionPrincipal

(QR million)Maturity

Subordinated Debt (Tier 2) 182.0 27 Dec 2017

Term Loan Facility (US$) 728.0 16 Sep 2017

Term Loan Facility (QAR) 748.6 31 Oct 2019

Term Loan Facility (US$) 455.0 12 Jun 2018

Total 2,113.6

7.2%

20.1%

6.1%7.8% 7.7% 7.6%

0.0%

5.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

ABQ CBQ DB Khaliji QNB QIIB Rayan QIB

Long-term debt/ loans % Liabilities

16

Cost to income (%) 2013 2014 YTD Sep 2015

Rayan 18.85 20.75 22.10

QNB 20.75 21.77 22.27

QIIB 22.45 21.51 23.70

ABQ 32.30 30.00 28.24

QIB 33.71 32.35 31.13

Khaliji 40.62 42.00 35.38

DB 36.10 35.84 35.79

CBQ 41.85 41.92 41.05

Market Positioning

Return on Equity (%) 2013 2014 YTD Sep 2015

QNB 19.51 19.50 20.61

Rayan 17.69 18.94 18.20

QIIB 15.04 15.80 16.75

ABQ 15.88 15.49 15.98

DB 14.56 14.28 15.95

QIB 11.36 13.52 15.19

CBQ 11.03 13.02 10.99

Khaliji 10.06 10.15 10.84

Return on Assets (%) 2013 2014 YTD Sep 2015

Rayan 2.70 2.72 2.50

QNB 2.30 2.24 2.31

QIIB 2.39 2.28 2.30

ABQ 2.26 2.15 2.17

DB 2.18 1.91 1.84

QIB 1.82 1.82 1.74

CBQ 1.71 1.65 1.38

Khaliji 1.56 1.35 1.16

NIM (%) 2013 2014 YTD Sep 2015

QIIB 3.42 3.10 2.84

QNB 2.90 2.82 2.73

QIB 3.25 2.89 2.69

Rayan 3.05 2.78 2.51

ABQ 2.96 2.71 2.44

DB 3.05 2.56 2.36

CBQ 2.51 2.23 2.27

Khaliji 1.67 2.09 1.67

17

Banking Partners’ Footprint

GCC Countries Banks

UAE

KSA

Bahrain

Oman

Kuwait

Who do we

principally

work with?

ahlibank.com.qa

Disclaimer:

The description in this Investor Relations Presentation is

provided for information purposes only and is not intended to

advise any person to invest in the Bank or to induce or attempt

to induce any person or entity to invest in any particular bank

product. The information and opinions contained herein are

provided for personal use and informational purposes only and

are subject to change without notice.