Arab Banking B S C : Regulatory Capital Disclosures - 30 Sep 2023

Regulatory Capital Disclosures

30 September 2023

Regulatory Capital Disclosures

PD 1: Post 1 January 2019 disclosure template

US$ million

PIR as on 30

Basel III Common Disclosure TemplateSeptember Reference 2023

Common Equity Tier 1 capital: instruments and reserves

1	Directly issued qualifying common share capital plus related stock surplus	3,104	a
2	Retained earnings	1,112	b
3	Accumulated other comprehensive income (and other reserves)	(316)	c1+c2+c3+c4
			+c5
4	Not applicable	-
5	Common share capital issued by subsidiaries and held by third parties (amount	274	d
allowed in group CET1)
6	Common Equity Tier 1 capital before regulatory adjustments	4,174
Common Equity Tier 1 capital: regulatory adjustments
7	Prudential valuation adjustments	-
8	Goodwill (net of related tax liability)	41
9	Other intangibles other than mortgage-servicing rights (net of related tax	113	e
liability)
10	Deferred tax assets that rely on future profitability excluding those arising from	17	f
	temporary differences (net of related tax liability)
11	Cash-flow hedge reserve	-
12	Shortfall of provisions to expected losses	-
13	Securitisation gain on sale (as set out in paragraph 562 of Basel II framework)	-
14	Not applicable	-
15	Defined-benefit pension fund net assets	33	c6
16	Investments in own shares	-
17	Reciprocal cross-holdings in common equity	-
	Investments in the capital of banking, financial and insurance entities that are
18	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)
	Significant investments in the common stock of banking, financial and
19	insurance 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 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	CBB specific regulatory adjustments	-
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	204
29	Common Equity Tier 1 capital (CET1)	3,970

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Regulatory Capital Disclosures

PD 1: Post 1 January 2019 disclosure template (continued)

			US$ million
		PIR as on 30
Basel III Common Disclosure Template	September	Reference
		2023
Additional Tier 1 capital: instruments
30	Directly issued qualifying Additional Tier 1 instruments plus related stock	362
	surplus
31	of which: classified as equity under applicable accounting standards	362
32	of which: classified as liabilities under applicable accounting standards	-
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)	101	g
	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	463
Additional Tier 1 capital: regulatory adjustments
37	Investments in own Additional Tier 1 instruments	-
38	Reciprocal cross-holdings in Additional Tier 1 instruments	-
	Investments in the capital of banking, financial and insurance entities that are
39	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)
	Significant investments in the capital of banking, financial and insurance entities
40	that are outside the scope of regulatory consolidation (net of eligible short	-
	positions)
41	CBB specific regulatory adjustments	-
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)	463
45	Tier 1 capital (T1 = CET1 + AT1)	4,433
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	-
	Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or
48	34) issued by subsidiaries and held by third parties (amount allowed in Group	84	i
	Tier 2)
49	of which: instruments issued by subsidiaries subject to phase out	-
50	Provisions	251	h
51	Tier 2 capital before regulatory adjustments	335
Tier 2 capital: regulatory adjustments
52	Investments in own Tier 2 instruments	-
53	Reciprocal cross-holdings in Tier 2 instruments	-
	Investments in the capital of banking, financial and insurance entities that are
54	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)

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Regulatory Capital Disclosures

PD 1: Post 1 January 2019 disclosure template (continued)

US$ million

PIR as on 30

Basel III Common Disclosure TemplateSeptember Reference 2023

Tier 2 capital: regulatory adjustments (continued)

	Significant investments in the capital banking, financial and insurance entities
55	that are outside the scope of regulatory consolidation (net of eligible short	-
	positions)
56	National specific regulatory adjustments	-
57	Total regulatory adjustments to Tier 2 capital	-
58	Tier 2 capital (T2)	335
59	Total capital (TC = T1 + T2)	4,768
60	Total risk weighted assets	28,878
Capital ratios and buffers
61	Common Equity Tier 1 (as a percentage of risk weighted assets)	13.7%
62	Tier 1 (as a percentage of risk weighted assets)	15.4%
63	Total capital (as a percentage of risk weighted assets)	16.5%
	Institution specific buffer requirement (minimum CET1 requirement plus
64	capital conservation buffer plus countercyclical buffer requirements plus G-	2.5%
	SIB buffer requirement, expressed as a percentage of risk weighted assets)
65	of which: capital conservation buffer requirement	2.5%
66	of which: bank specific countercyclical buffer requirement	N/A
67	of which: G-SIB buffer requirement	N/A
68	Common Equity Tier 1 available to meet buffers (as a percentage of risk	4.7%
weighted assets)

National minima including CBB (where different from Basel III)

69	CBB Common Equity Tier 1 minimum ratio	9%
70	CBB Tier 1 minimum ratio	10.5%
71	CBB total capital minimum ratio	12.5%

Amounts below the thresholds for deduction (before risk weighting)

72	Non-significant investments in the capital of other financials	8
73	Significant investments in the common stock of financials	32
74	Mortgage servicing rights (net of related tax liability)	-
75	Deferred tax assets arising from temporary differences (net of related tax	225
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	269	h*
standardised approach (prior to application of cap)
77	Cap on inclusion of provisions in Tier 2 under standardised approach	329

1. N/A
2. N/A

• As adjusted based on CBB circular OG/226/2020

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Regulatory Capital Disclosures

PD 1: Post 1 January 2019 disclosure template (continued)

US$ million

PIR as on 30

Basel III Common Disclosure TemplateSeptember Reference 2023

Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2019 and 1 Jan 2023)

80	Current cap on CET1 instruments subject to phase out arrangements	N/A
81	Amount excluded from CET1 due to cap (excess over cap after redemptions	N/A
and maturities)
82	Current cap on AT1 instruments subject to phase out arrangements	N/A
83	Amount excluded from AT1 due to cap (excess over cap after redemptions	N/A
and maturities)
84	Current cap on T2 instruments subject to phase out arrangements	N/A
85	Amount excluded from T2 due to cap (excess over cap after redemptions and	N/A
maturities)

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Regulatory Capital Disclosures

PD 2 : Reconciliation of regulatory capital

i) Step 1: Disclosure of Balance Sheet under Regulatory scope of Consolidation

		US$ million
	Balance sheet
	as in published
	financial	Consolidated
	statements	PIR data
Liquid funds	2,586	-
Cash and balances at central banks	-	2,163
Placements with banks and similar financial institutions	2,765	4,911
Reverse repurchase agreements and other similar secured lending	1,721	-
Financial assets at fair value through P&L	1,191	1,191
Non-trading investments	11,463	-
Investments at Amortized Cost	-	6,124
Investments at FVOCI	-	5,351
Loans and advances	17,598	17,830
Investment properties	-	-
Interest receivable	-	598
Other assets	3,680	2,894
Investments in associates and joint ventures	-	32
Goodwill and intangible assets	-	155
Property, plant and equipment	257	257
TOTAL ASSETS	41,261	41,506
Deposits from banks	4,340	7,859
Deposits from customers	20,914	17,395
Certificate of deposits issued	201	201
Repurchase agreements and other similar secured borrowing	6,735	6,735
Interest payable	-	896
Taxation	122	-
Other liabilities	2,962	2,164
Borrowings	1,298	1,203
Subordinated liabilities	-	-
Additional Tier 1 Instrument	390	485
TOTAL LIABILITIES	36,962	36,938
Paid-in share capital	3,110	3,110
Treasury shares	(6)	(6)
Reserves	717	717
Non - controlling interest	478	478
Expected credit losses	-	269
TOTAL SHAREHOLDERS' EQUITY	4,299	4,568

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Regulatory Capital Disclosures

PD 2 : Reconciliation of regulatory capital (continued)

ii) Step 2: Expansion of the Balance Sheet under Regulatory scope of Consolidation

			US$ million
	Balance sheet
	as in
	published
	financial	Consolidated
ASSETS	statements	PIR data	Reference
Liquid funds	2,586	-
Cash and balances at central banks	-	2,163
Placements with banks and similar financial institutions	2,765	4,911
Reverse repurchase agreements and other similar secured	1,721	-
lending
Financial assets at fair value through P&L	1,191	1,191
Loans and advances	17,598	17,830
Non-trading investments	11,463	11,475
Of which investment NOT exceeding regulatory threshold	-	11,475
Interest receivable	-	598
Other assets	3,680	2,894
Of which deferred tax assets arising from carryforwards of	-	17	f
unused tax losses, unused tax credits and all other
Of which deferred tax assets arising from temporary	-	225
differences
Investments in associates and joint ventures	-	32
Of which Significant investment exceeding regulatory threshold	-	-
Of which Significant investment NOT exceeding regulatory	-	32
threshold
Goodwill and intangible assets	-	155
Of which goodwill	-	41
Of which other intangibles (excluding MSRs) phased in at	-	113	e
100%
Of which MSRs	-	-
Property, plant and equipment	257	257
TOTAL ASSETS	41,261	41,506

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Regulatory Capital Disclosures

PD 2 : Reconciliation of regulatory capital (continued)

ii) Step 2: Expansion of the Balance Sheet under Regulatory scope of Consolidation (continued)

			US$ million
	Balance sheet
	as in
	published	Consolidated
	financial
LIABILITIES & SHAREHOLDERS' EQUITY	statements	PIR data	Reference
Deposits from banks	4,340	7,859
Deposits from customers	20,914	17,395
Certificate of deposits issued	201	201
Repurchase agreements and other similar secured borrowing	6,735	6,735
Interest payable	-	896
Taxation	122	-
Other liabilities	2,962	2,164
Borrowings	1,298	1,203
Subordinated liabilities	-	-
Of which amount eligible for TII	-	-
Of which amount Ineligible	-	-
Additional Tier 1 Instrument	390	485
Of which amount eligible for AT1	-	43	g
Of which amount eligible for TII	-	10	i
Of which amount Ineligible	-	432
TOTAL LIABILITIES	36,962	36,938
Paid-in share capital	3,110	3,110
Treasury shares	(6)	(6)
Of which form part of CET1
Ordinary Share Capital	3,110	3,110	a
Treasury shares	(6)	(6)	a
Reserves	717	717
Of which form part of CET1
Retained earnings/(losses) brought forward	1,067	1,067	b
Net profit for the current year	183	183	c1
Legal reserve	545	545	c2
General (disclosed) reserves	100	100	c3
Fx translation adjustment	(1,146)	(1,146)	c4
Cumulative changes in fair value	1	1	c5
Pension fund reserve	(33)	(33)	c6
Non - controlling interest	478	478
Of which amount eligible for CETI	-	274	d
Of which amount eligible for ATI	-	58	g
Of which amount eligible for TII	-	74	i
Of which amount ineligible	-	72
Expected credit losses	-	269
Of which amount eligible for TII (Maximum 1.25% of Credit RWA)	-	269	h
Of which amount Ineligible	-	-
TOTAL SHAREHOLDERS' EQUITY	4,299	4,568

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Regulatory Capital Disclosures

PD 3 : Main features of regulatory capital instruments

Disclosure template for main features of regulatory capital instruments

1	Issuer	Arab Banking Corporation	Arab Banking Corporation	Banco ABC Brasil
2	Unique identifier	ABC	XS2426192261	LFSC19000 (series with various suffixes)
3	Governing law(s) of the instrument	Laws of Bahrain	English and Bahrain Law	Laws of the Federative Republic of Brazil
Regulatory treatment
4	Transitional CBB rules	Common Equity Tier 1	N/A	N/A
5	Post-transitional CBB rules	Common Equity Tier 1	Additional Tier 1	Additional Tier 1
6	Eligible at solo/group/group & solo	Group & Solo	Group& Solo	Group
7	Instrument type (types to be specified by each jurisdiction)	Common equity shares	Perpetual NC 6 Additional Tier 1 Capital	Perpetual NC 5, Sub-ordinated to all except
Securities	Shareholders' Equity
8	Amount recognised in regulatory capital (Currency in mil, as of	US$ 3,110	US$ 390	BRL 515 million (of which US$ 43 million
	most recent reporting date)			equivalent eligible for AT1)
9	Par value of instrument	1	1	300,000
10	Accounting classification	Shareholders equity	Shareholders equity	Liability- Amortized cost
11	Original date of issuance	Various	28th March 2022	Various
12	Perpetual or dated	Perpetual	Perpetual	Perpetual
13	Original maturity date	No maturity	No maturity	No maturity
14	Issuer call subject to prior supervisory approval	Yes	Yes	Yes
15	Optional call date, contingent call dates and redemption	N/A	28th March 2028 and every interest payment	Yes
	amount		date thereafter
16	Subsequent call dates, if applicable	N/A	Every interest payment date after the first call	N/A
			date
Coupons / dividends
17	Fixed or floating dividend/coupon	Floating (Dividend as decided by the	Fixed	Floating
shareholders)
				Average market yield of 13,901%, equivalent
18	Coupon rate and any related index	N/A	N/A	to 1,10 times the current Selic Rate of 12,65%
				p.a.
19	Existence of a dividend stopper	N/A	Yes	No

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Regulatory Capital Disclosures

PD 3 : Main features of regulatory capital instruments (continued)

Disclosure template for main features of regulatory capital instruments

20	Fully discretionary, partially discretionary or mandatory	Fully discretionary	Partly discretionary (Insufficiency of profits)	Partly discretionary (Insufficiency of profits)
21	Existence of step up or other incentive to redeem	No	No	No
22	Non-cumulative or cumulative	N/A	Non-cumulative	Non-cumulative
23	Convertible or non-convertible	N/A	Convertible	Non convertible
24	If convertible, conversion trigger (s)	N/A	Non-Viability Event	N/A
25	If convertible, fully or partially	N/A	Fully	N/A
26	If convertible, conversion rate	N/A	Conversion Price as defined	N/A
27	If convertible, mandatory or optional conversion	N/A	Mandatory	N/A
28	If convertible, specify instrument type convertible into	N/A	Ordinary Shares	N/A
29	If convertible, specify issuer of instrument it converts into	N/A	ABC	N/A
30	Write-down feature	No	No	Yes
31	If write-down,write-down trigger(s)	N/A	N/A	CET 1 at 5.125% or below
32	If write-down, full or partial	N/A	N/A	Fully discretionary
33	If write-down, permanent or temporary	N/A	N/A	Permanent
34	If temporary write-down, description of write-up mechanism	N/A	N/A	N/A
	Position in subordination hierarchy in liquidation (specify	Subordinated to all depositors and creditors	Subordinated to all senior obligations of the
35	bank and in priority to the Junior obligations	AT1 capital bills
	instrument type immediately senior to instrument)	(including subordinated debt) of the Bank	(such as equity shares).
36	Non-compliant transitioned features	No	No	No
37	If yes, specify non-compliant features	N/A	N/A	N/A

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