Ithmaar B S C : Composition of Capital Disclosure – 30 September 2022

Ithmaar Bank B.S.C (C)

Common Disclosures Template for the period ended 30 September 2022

Expressed in thousands of Bahraini Dinars unless otherwise stated

PD : Reconciliation requirements

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

The Bank's subsidiaries (consolidated line by line for accounting purposes) have the following treatment for regulatory purposes

			% owned
						Principal
					Country of	business
Name	Total assets	Total Equity	Voting	Economic	Incorporation	activity	Regulatory Treatment
Faysal Bank Limited	1,689,553	105,637	67	67	Pakistan	Banking	Aggregation
Dilmunia Development Fund I L.P.	74,059	62,250	92	92	Cayman Islands	Real estate	Risk weight
The reconciliation from published financial information to regulatory return is as follows:
Balance sheet as per published financial statements	2,278,180
FAS 30 Transitional impact	21,630
Modification loss transitional impact	18,403
Aggregation	33,612
Balance sheet as in Regulatory Return	2,351,825
Step 2: Reconciliation of published financial balance sheet to regulatory reporting as at 30 September 2022
	Balance sheet
	as in published	Consolidated PIRI
Assets	financial statements	data	Reference
Cash and balances with banks and central banks	138,284	138,284
Commodity and other placements with banks, financial
and other institutions	17,852	17,852
Murabaha and other financings	641,929	641,929
Musharaka financing	531,875	531,875
Sukuk and investment securities	749,453	749,453
Investment in associates	1,595	1,595
Assets acquired for leasing	304	304
Other assets	76,555	76,555
Investment in real estate	3,885	3,885
Development Properties	65,870	65,870
Fixed assets	41,611	41,611
Intangible assets	8,967	8,967
FAS 30 Transitional impact	-	21,630
Modification loss transitional impact	-	18,403
Aggregation	-	33,612
Total Assets	2,278,180	2,351,825	-

1

Step 2: Reconciliation of published financial balance sheet to regulatory reporting as at 30 September 2022

	Balance sheet
	as in published		Consolidated PIRI
Assets	financial statements		data	Reference
Liabilities & Unrestricted Investment Accounts (URIA)
Unrestricted Investment Accounts	897,532		897,532
Other liabilities	1,303,640		1,303,640
Total Liabilities & URIA	2,201,172		2,201,172	-
Minority Interest	44,904		44,904
Owners' Equity
Share capital	100,000		100,000	A
Reserves	(63,139)		(63,139)
of which eligible for CET1	-		(37,043)	B
Accumulated losses	(4,757)		(4,757)
of which eligible for CET1	-		(39,877)	C
FAS 30 Transitional impact	-		21,630	D
Modification loss & ECL transitional impact	-		18,403	E
Aggregation	-		33,612
Total Owners' Equity	32,104		105,749
Total Liabilities + Owners' Equity	2,278,180		2,351,825
	-		-
Step 3: Composition of Capital Common Template (transition) as at 30 September 2022
			Reference numbers
			of balance sheet
			under the regulatory	Amount
			scope of	subject to
	Component of		consolidation from	pre- 2015
Composition of Capital and mapping to regulatory reports	regulatory capital		step 2	treatment
Directly issued qualifying common share capital (and equivalent for non-
joint stock companies) plus related stock surplus	100,000		A
Retained earnings	(39,877)		C
of which Modification loss including ECL provisions relating to stage 1
& 2	18,403		E
Expected Credit Losses (ECL) Stages 1 & 2	(52,762)
of which FAS 30 Transitional impact	21,630		D
Reserves	(37,043)		B
Aggregation & deductions	88,595
Total CET1 capital	98,946
FAS 30 Transitional impact	6,803
Total T2 Capital	6,803
Total Capital	105,749
Total Risk Weighted Assets (RWA)	751,099
Capital Adequacy Ratio (CaR)	14.08%

2

Ithmaar Bank B.S.C. (C)

For the period ended 30 September 2022

Disclosure template for main features of regulatory capital instruments

1	Issuer	Ithmaar Bank B.S.C. (C)
2	Unique identifier (Bahrain bourse ticker)	None (not listed)
		All applicable laws and regulations in the
3	Governing law(s) of the instrument	Kingdom of Bahrain
	Regulatory treatment
4	Transitional CBB rules	Common Equity Tier 1
5	Post-transitional CBB rules	Common Equity Tier 1
6	Eligible at solo/group/group & solo	Group and solo
7	Instrument type (types to be specified by each jurisdiction)	Equity shares
	Amount recognised in regulatory capital (Currency in mil, as of
8	most recent reporting date)	BD 100 million
9	Par value of instrument	BD 0.100
10	Accounting classification	Shareholders' equity
11	Original date of issuance	2 January 2017
12	Perpetual or dated	Perpetual
13	Original maturity date	No maturity
14	Issuer call subject to prior supervisory approval	No
	Optional call date, contingent call dates and redemption
15	amount	Not applicable
16	Subsequent call dates, if applicable	Not applicable
	Coupons / dividends
17	Fixed or floating dividend/coupon	Dividend as declared by shareholders
18	Coupon rate and any related index	Not applicable
19	Existence of a dividend stopper	Not applicable
20	Fully discretionary, partially discretionary or mandatory	Fully discretionary
21	Existence of step up or other incentive to redeem	No
22	Noncumulative or cumulative	Non-cumulative
23	Convertible or non-convertible	Not applicable
24	If convertible, conversion trigger (s)	Not applicable
25	If convertible, fully or partially	Not applicable
26	If convertible, conversion rate	Not applicable
27	If convertible, mandatory or optional conversion	Not applicable
28	If convertible, specify instrument type convertible into	Not applicable
29	If convertible, specify issuer of instrument it converts into	Not applicable
30	Write-down feature	No
31	If write-down,write-down trigger(s)	Not applicable
32	If write-down, full or partial	Not applicable
33	If write-down, permanent or temporary	Not applicable
34	If temporary write-down, description of write-up mechanism	Not applicable
35	instrument type immediately senior to instrument)	Not applicable
36	Non-compliant transitioned features	No
37	If yes, specify non-compliant features	Not applicable

3