Ithmaar B S C : Composition of Capital Disclosure – 31 December 2022

% owned

Principal

Country of

business

Name

Total assets

Total Equity

Voting

Economic

Incorporation

activity

Regulatory Treatment

Faysal Bank Limited

1,775,752

111,995

67

67

Pakistan

Banking

Aggregation

Dilmunia Development Fund I L.P.

66,145

57,540

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

2,309,558

FAS 30 Transitional impact

21,630

Modification loss transitional impact

18,403

Aggregation

29,784

Balance sheet as in Regulatory Return

2,379,375

Step 2: Reconciliation of published financial balance sheet to regulatory reporting as at 31 December 2022

Balance sheet

as in published

Consolidated PIRI

Assets

financial statements

data

Reference

Cash and balances with banks and central banks

122,377

122,377

Commodity and other placements with banks, financial

and other institutions

18,440

18,440

Murabaha and other financings

578,510

578,510

Musharaka financing

573,470

573,470

Sukuk and investment securities

815,341

815,341

Investment in associates

3,204

3,204

Assets acquired for leasing

304

304

Other assets

67,527

67,527

Investment in real estate

4,792

4,792

Development Properties

57,280

57,280

Fixed assets

59,745

59,745

Intangible assets

8,568

8,568

FAS 30 Transitional impact

-

21,630

Modification loss transitional impact

-

18,403

Aggregation

-

29,784

Total Assets

2,309,558

2,379,375

-

Balance sheet

as in published

Consolidated PIRI

Assets

financial statements

data

Reference

Liabilities & Unrestricted Investment Accounts (URIA)

Unrestricted Investment Accounts

971,653

971,653

Other liabilities

1,258,568

1,258,568

Total Liabilities & URIA

2,230,221

2,230,221

-

Minority Interest

43,218

43,218

Owners' Equity

Share capital

100,000

100,000

A

Reserves

(53,699)

(53,699)

of which eligible for CET1

-

(37,097)

B

Accumulated losses

(10,182)

(10,182)

of which eligible for CET1

-

(46,822)

C

FAS 30 Transitional impact

-

21,630

D

Modification loss & ECL transitional impact

-

18,403

E

Aggregation

-

29,784

Total Owners' Equity

36,119

105,936

Total Liabilities + Owners' Equity

2,309,558

2,379,375

-

-

Step 3: Composition of Capital Common Template (transition) as at 31 December 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

(46,822)

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

(37,097)

B

Aggregation & deductions

95,996

Total CET1 capital

99,348

FAS 30 Transitional impact

6,588

Total T2 Capital

6,588

Total Capital

105,936

Total Risk Weighted Assets (RWA)

801,711

Capital Adequacy Ratio (CaR)

13.21%

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