Balance Sheet and Income Statement to be Published

147 Old No. 1522 Text/Section/1 R/33 T 30-6/2020 Basic Circular for Banks No. 33 To Financial Institutions and Supervisory Commissioners 1 Also addressed to 2

We enclose a copy of Basic Decision No. 6574 dated 24/4/1997 regarding the publication of the Financial Position Statement and Income Statement.

Beirut, 24 April 1997 Governor of Banque du Liban Riad Tawfiq Salamé

1 - Addressed to supervisory commissioners pursuant to Intermediate Decision No. 9874 dated 28/3/2008 (Intermediate Circular No. 158). 2 - Last amendment to this heading introduced by Article 1 of Intermediate Decision No. 10704 dated 15/4/2011 (Intermediate Circular No. 251).

148

Basic Decision No. 6574 1 Publication of the Financial Position Statement and Income Statement

The Governor of Banque du Liban, Pursuant to the Monetary and Loan Law, particularly Article 146 thereof, And pursuant to the decision taken by the Central Council in its session held on 23/4/1997, Decides as follows:

Article 1 All banks and financial institutions operating in Lebanon are required to prepare the Financial Position Statement and Income Statement for publication in accordance with the attached templates and their accompanying notes, in compliance with International Financial Reporting Standards (IFRS), effective as of the financial year 2018. Banks authorized to offer shares to the public or for trading on organized financial markets must publish the aforementioned financial statements quarterly, in a widely circulated stock exchange bulletin and two local newspapers, within a period not exceeding the end of the month following each quarter. As for other banks and all other financial institutions, they must publish the aforementioned financial statements on an annual basis within the legally prescribed deadline.

1 - Last amendment to this heading introduced by Article 1 of Intermediate Decision No. 10704 dated 15/4/2011 (Intermediate Circular No. 251). 2 - Last amendment to this Article introduced by Article 1 of Intermediate Decision No. 13032 dated 19/3/2019 (Intermediate Circular No. 518). 3 - Article 1 of Intermediate Decision No. 13128 dated 1/11/2019 (Intermediate Circular No. 531), which is deemed repealed following the issuance of Intermediate Decision No. 13184 dated 20/1/2020 (Intermediate Circular No. 540), states as follows: "Banks authorized to offer shares to the public or for trading on organized financial markets are granted a deadline until 31/12/2019 to publish the statements referred to in the second paragraph of Article 1 of Basic Decision No. 6574 dated 24/4/1997, pertaining to the third quarter of 2019."

149 Text/Section/1 R/33 T - -6 30 /2020 Banks authorized to offer shares to the public or for trading on organized financial markets shall, exceptionally, publish the statements referred to in the second paragraph above, starting from the third quarter of 2019 and thereafter, simultaneously with the publication of the 2019 financial statements audited by supervisory commissioners.

Article 2 Banks and financial institutions must provide the Statistics and Economic Research Department at Banque du Liban with the "Income Statement" for Lebanese branches prepared according to Template (-1PL) and the consolidated "Income Statement" prepared according to Template (-9PL), attached to this Decision, within a maximum deadline of the end of June of each year. Banks shall submit the statements referred to in this Article via the Special Project for Electronic Submission of Statistical Reports (eSTR) within the SEBIL system. Financial institutions shall submit the aforementioned statements on a magnetic disk.

Article 3 Banks and financial institutions must provide the Banking Supervision Committee with a copy of the newspapers in which the Financial Position Statement and Income Statement referred to in Article 1 of this Decision were published, within a one-week period from the date of publication.

Article 4 When publishing the Financial Position Statement and Income Statement for publication, banks and financial institutions must clearly and explicitly indicate the media (internet, newspapers, economic magazines, reports, etc.) that enable users of the published financial statements to obtain or access:

• 1 All other financial statements pertaining to the reported period, which, together with the Financial Position Statement and Income Statement for publication, constitute the complete set of financial statements that users must be informed of in accordance with International Accounting Standard (IAS) No. (1) 1 - This paragraph was added pursuant to Intermediate Decision No. 13184 dated 20/1/2020 (Intermediate Circular No. 540). 2 - Last amendment to this Article introduced by Article 2 of Intermediate Decision No. 13032 dated 19/3/2019 (Intermediate Circular No. 518). 3 - This Article was added pursuant to Intermediate Decision No. 9874 dated 28/3/2008 (Intermediate Circular No. 158), and subsequently amended by Article 3 of Intermediate Decision No. 10704 dated 15/4/2011 (Intermediate Circular No. 251). 4 - This Article was added pursuant to Intermediate Decision No. 9874 dated 28/3/2008 (Intermediate Circular No. 158), with the latest amendment introduced by Article 3 of Intermediate Decision No. 13032 dated 19/3/2019 (Intermediate Circular No. 518).

150 (Comprehensive Income Statement, Statement of Changes in Equity, Statement of Cash Flows, Notes including significant accounting policies...).

• 2 Disclosures and detailed information required for each of the Financial Position Statement and Income Statement for publication and all other financial statements referred to above, in accordance with IAS No. (1) and other International Financial Reporting Standards.
• 3 Any other disclosures or information that may be required by provisions issued by Banque du Liban and the Banking Supervision Committee.

Article 5 Islamic banks affiliated with Lebanese banks or financial institutions must publish their balance sheet and income statement prepared according to Templates (-1PBI) and (-1IPL) attached to Basic Decision No. 9526 dated 17/2/2007, at the same time and simultaneously with the consolidated financial statements of the group, in the same advertising media.

1 - This Article was added pursuant to Article 7 of Intermediate Decision No. 9874 dated 28/3/2008 (Intermediate Circular No. 158). Article 6 Circular for Banks and Financial Institutions No. 975 dated 13/9/1990 and its attached template are hereby repealed.

• This number corresponds to the old numbering. Article 7 This Decision shall be published in the Official Gazette and shall take effect upon its issuance.

Beirut, 24 April 1997 Governor of Banque du Liban Riad Tawfiq Salamé

2 - The numbering of this Article was amended pursuant to Article 4 of Intermediate Decision No. 9874 dated 28/3/2008 (Intermediate Circular No. 158), and was originally "Article 3". 3 - The numbering of this Article was amended pursuant to Article 4 of Intermediate Decision No. 9874 dated 28/3/2008 (Intermediate Circular No. 158), and was originally "Article 4".

151 Text/Section/1 R/33 T - -6 30 /2020 1 Financial Position Statement for Publication (*) In accordance with International Financial Reporting Standards (IFRS) (On an individual or consolidated basis, where applicable) (Values in millions L.L.) -I Assets Notes As of ..../../.. As of ..../../.. 1 Central Bank and issuing institutions 2 Deposits with banks and financial institutions 3 Head office, parent institution, banks and financial institutions, sister, subsidiary and associate institutions

• Loans to banks and financial institutions and repurchase agreements 4 Financial assets pledged as collateral 5 Financial derivatives 6 Equity instruments and shares at fair value through profit or loss (FVTPL) 7 Debt instruments and other financial assets at fair value through profit or loss (FVTPL) Of which: Net loans and advances to banks at fair value through profit or loss (FVTPL) 8 Equity instruments and shares at fair value through other comprehensive income (FVOCI) 9 Debt instruments and other financial assets at fair value through other comprehensive income (FVOCI) 10 Net loans and advances to customers at amortized cost 11 Net loans and advances to related parties at amortized cost 12 Debtors under acceptances 13 Debt instruments at amortized cost 14 Interests and participations in subsidiary and associate companies 15 Assets taken in settlement of debts 16 Tangible fixed assets 17 Intangible fixed assets 18 Non-current assets held for sale 19 Other assets 20 Goodwill 21 Total Assets (*) Banks and financial institutions must indicate the media that enable users of the published financial statements to access disclosures and detailed information required in accordance with International Financial Reporting Standards (Annual and periodic reports, headquarters, branches and subsidiaries of the bank or financial institution in Lebanon and abroad, websites, ...). 1 - Last amendment to the template introduced by Article 4 of Intermediate Decision No. 13032 dated 19/3/2019 (Intermediate Circular No. 518).

152 Financial Position Statement for Publication (*) In accordance with International Financial Reporting Standards (IFRS) (On an individual or consolidated basis, where applicable) (Values in millions L.L.) -II Liabilities and Shareholders' Equity Notes As of ..../../.. As of ..../../.. 1 Issuing institutions 2 Banks and financial institutions and repurchase agreements 3 Head office, parent institution, banks and financial institutions, sister, subsidiary and associate institutions

• Financial derivatives 4 Financial liabilities at fair value through profit or loss Of which: Deposits at fair value through profit or loss 5 Deposits and customer accounts payable at amortized cost
• Deposits and accounts of related parties at amortized cost 6 Liabilities represented by banknotes or financial bills 7 Commitments under acceptances 8 Other liabilities 9 Provisions for risks and charges 10 Subordinated debts and similar instruments 11 Non-current liabilities held for sale 12 Total Liabilities Shareholders' Equity - Group Share
• Capital - Ordinary shares 13
• Capital - Preference shares and similar instruments 13
• Share premium - Ordinary
• Share premium - Preference
• Cash advances allocated to capital
• Non-distributable reserves
• Free distributable reserves
• Treasury shares
• Retained earnings distributable
• Revaluation surplus of real estate (**) 14
• Real estate reserve and participations & partnership interests acquired in settlement of suspended or doubtful debts pursuant to Article 154 of the Monetary and Loan Law
• Change in fair value of financial instruments classified as at fair value through other comprehensive income (OCI) 15
• Change in fair value of cash flow hedging derivatives
• Foreign currency translation differences 16 Results of the financial year (±) 17 Minority interests 18 Expense and revenue accounts (in case of interim non-final position) 19 Total Shareholders' Equity / Head Office 20 Total Liabilities and Shareholders' Equity / Head Office (*) Banks and financial institutions must indicate the media that enable users of the published financial statements to access disclosures and detailed information required in accordance with International Financial Reporting Standards (Annual and periodic reports, headquarters, branches and subsidiaries of the bank or financial institution in Lebanon and abroad, websites, ...). (**) Banks and financial institutions operating in Lebanon must include the following in their required disclosures:
• The value of revaluation differences of real estate assets (land and buildings) wholly owned by the bank or financial institution, and real estate assets wholly owned by real estate companies in which the bank or financial institution holds shares.
• The value of differences resulting from the revaluation of real estate in accordance with Article 50 of the Lebanese Income Tax Law.

152 bis 1 Text/Section/1 R/33 T - -6 30 /2020 Financial Position Statement for Publication (*) In accordance with International Financial Reporting Standards (IFRS) (On an individual or consolidated basis, where applicable) (Values in millions L.L.) III - Off-Balance Sheet Notes As of ..../../.. As of ..../../.. Financing commitments

• Commitments given to banks and financial institutions
• Commitments received from banks and financial institutions
• Commitments to customers Guarantee commitments
• Guarantees, sureties and other guarantees given to banks and financial institutions Of which: Credit derivatives
• Guarantees, sureties and other guarantees received from banks and financial institutions Of which: Credit derivatives
• Guarantees, sureties and guarantees given to customers
• Guarantees, sureties and guarantees received from customers Commitments on securities
• Securities not yet delivered Of which: Values sold with repurchase or redemption rights
• Securities for delivery Of which: Values purchased with resale or redemption rights Foreign currency transactions
• Foreign currency not yet delivered
• Foreign currency for delivery Commitments on financial instruments for 1 year Other commitments Claims arising from legal disputes Credit accounts
• Subject to specific instructions
• Subject to prudent allocations Assets of asset management accounts Collective investment schemes Financial instruments and products linked to indices and financial derivatives Transferred bad customer debts to off-balance sheet (*) Banks and financial institutions must indicate the media that enable users of the published financial statements to access disclosures and detailed information required in accordance with International Financial Reporting Standards (Annual and periodic reports, headquarters, branches and subsidiaries of the bank or financial institution in Lebanon and abroad, websites, ...).

152 bis 2 1 Income Statement for Publication () In accordance with International Financial Reporting Standards (IFRS) (On an individual or consolidated basis, where applicable) (Values in millions L.L.) Subtotals Notes As of ..../../.. As of ..../../.. Interest and similar income 1 Interest and similar expenses - 2 Net interest income a Fee and commission income 3 Fee and commission expenses - Net fee and commission income b Net profit/loss on financial instruments at fair value through profit or loss ± c 4 Of which: Net unrealized profit/loss Of which: Net interest income/expenses Net profit/loss on financial investments ± d 5 Other operating income + e 6 Total operating income = a+b+c+d+e Allowance for Expected Credit Losses ± f 7 Impairment allowances on other financial investments g 8 (subsidiaries and associates) Other allowances h 9 Net operating income i = e+f+g+h Staff costs and related expenses 10 Administrative expenses and other operating charges - 11 Depreciation provisions and tangible fixed asset allowances (including assets taken in settlement of debt) 12 - Amortization of intangible fixed assets - Goodwill impairment provisions - 13 Total operating charges - j Operating profit k = i+j Our share in results of affiliated institutions according to net equity Net profit or (loss) on sale of other non-financial assets ± m 14 Results before tax ± n = k+l+m Income tax s Result after tax from ordinary activities - o = n+s Result after tax from discontinued operations or held for liquidation ± p 15 Net results ± q = o+p Net results - Minority interest ± Net results - Group share Earnings per ordinary share (EPS) 16 Diluted earnings per ordinary share (Diluted EPS) 17 () Banks and financial institutions must indicate the media that enable users of the published financial statements to access disclosures required in accordance with International Financial Reporting Standards (Annual and periodic reports, headquarters, branches and subsidiaries of the bank or financial institution in Lebanon and abroad, websites, ...). 1 - Last amendment to these notes introduced by Article 4 of Intermediate Decision No. 13032 dated 19/3/2019 (Intermediate Circular No. 518).

152 bis 3 Text/Section/1 R/33 T - -6 30 /2020 1 Notes to the Financial Position Statement for Publication In accordance with International Financial Reporting Standards (IFRS) -I Assets: Financial assets are reported after deducting the allowance for credit losses on financial assets subject to IFRS 9 (where applicable). No. Notes Explanation 1 This item includes the Central Bank and accounts with other issuing institutions. 2 This item includes the total of demand and time deposits with banks and financial institutions. 3 This item includes lending operations to banks and financial institutions, repurchase (Reverse Repo) and finance lease operations conducted with them, as well as conditional loans granted to them. 4 Financial assets pledged as collateral are reported regardless of their accounting classification. 5 This item includes the positive fair value of financial derivatives, including those designated as hedging instruments, regardless of their accounting classification. 6 This item includes equity instruments classified at fair value through profit or loss (FVTPL) in accordance with IFRS 9. 7 This item includes debt instruments and other financial assets, including loans and advances to customers and related parties, classified at fair value through profit or loss (FVTPL) in accordance with IFRS 9. 8 This item includes equity instruments classified at fair value through other comprehensive income (FVOCI) in accordance with IFRS 9. 9 This item includes debt instruments and other financial assets classified at fair value through other comprehensive income (FVOCI) in accordance with IFRS 9. 10 This item includes loans and advances to customers classified at amortized cost in accordance with IFRS 9, and accounts arising from factoring operations and finance leases with customers. Also recorded in this item are receivables related to reinsurance operations and facilities granted to reinsured parties. 11 This item includes debt instruments classified at amortized cost in accordance with IFRS 9. 12 This item includes participations in subsidiary and associate companies in accordance with IAS 27 and IAS 28. In the consolidated balance sheet, participations in associate companies are recorded in this item using the equity method. 13 This item includes assets taken in settlement of debts pursuant to Article 154 of the Monetary and Loan Law, plus revaluation differences of these assets, if any. 14 This item includes tangible fixed assets defined in IAS 16, including the bank's real estate assets (land and buildings) and approved revaluation differences by Banque du Liban, as well as revaluation differences in accordance with Article 50 of the Income Tax Law. 15 This item includes intangible fixed assets defined in IAS 38, excluding goodwill. 16 This item includes non-current assets held for sale in accordance with IFRS 5, based on materiality. 17 This item includes gold and other precious metals, plus assets whose value is not material, in addition to other assets. This item also includes clearing accounts, including settlement accounts for securities values and receivables related to current (Tax Current) and deferred (Tax Deferred) taxes defined in IAS 12. 18 Goodwill falling within the scope of consolidation in accordance with IFRS 3 and subject to impairment testing in accordance with IAS 36 is recorded in this item. 1 - Last amendment to these notes introduced by Article 4 of Intermediate Decision No. 13032 dated 19/3/2019 (Intermediate Circular No. 518).

152 bis 4 Notes to the Financial Position Statement for Publication In accordance with International Financial Reporting Standards (IFRS) -II Liabilities and Shareholders' Equity: No. Notes Explanation 1 This item includes payable accounts with Banque du Liban and other issuing institutions. 2 This item includes payable accounts with banks and financial institutions, excluding liabilities represented by banknotes or financial bills and conditional debts. It also includes repurchase agreements (REPO) with banks and financial institutions, payable accounts with regional and international bodies, and multi-lateral development banks. 3 This item includes the negative fair value of financial derivatives, including those accepted for risk coverage. 4 This item includes trading financial liabilities and other financial liabilities, including composite or derivative-linked deposit accounts recorded at fair value through profit or loss. 5 This item includes payable accounts at amortized cost pertaining to operations with non-bank/financial institution creditors, excluding composite or derivative-linked deposit accounts recorded at fair value through profit or loss. 6 This item includes liabilities represented by banknotes or financial bills, excluding conditional debts. 7 This item includes payable accounts related to current and deferred taxes defined in IAS 12. It also includes clearing accounts and payables on behalf of others, including employees, not listed in other liability items, if any. 8 This item includes provisions formed in accordance with IAS 37 and expected credit loss allowances on off-balance sheet financial commitments subject to IFRS 9. It also includes provisions for employee benefits. 9 This item includes bond issuances or subordinated debts with fixed or indefinite terms, plus preference shares not included in shareholders' equity in accordance with IAS 32. 10 This item includes liabilities related to non-current assets held for sale in accordance with IFRS 5, based on materiality. 11 Hybrid capital instruments are reported in any relevant item under this note, where applicable, in accordance with IAS 32, in addition to share-based payment instruments under IFRS 2. Reserves related to capital: legal reserve, non-distributable general reserve, etc., are also included in this item. Treasury shares deducted from equity are also included. 12 This item includes revaluation differences of real estate assets (land and buildings) wholly owned by the bank or financial institution, revaluation differences of real estate assets wholly owned by real estate companies in which the bank or financial institution holds shares, and revaluation differences of assets taken in settlement of debts pursuant to Article 154 of the Monetary and Loan Law. 13 Represents the change resulting from market factors. 14 This item includes only the group's share of profit or loss for the period. The minority interest share is recorded in the item designated for it in Note 15 below. 15 This item includes minority shareholders' equity in the net assets of consolidated units with the parent bank. III - Off-Balance Sheet: Off-balance sheet commitments and obligations subject to IFRS 9 are reported at their gross amount, i.e., without deducting expected credit loss allowances. No. Notes Explanation 1 This item includes mandatory execution contracts (... ,Futures, Swaps) at their nominal value, while conditional execution contracts (... ,Options) are recorded at the nominal value of the underlying asset.

152 bis 5 Text/Section/1 R/33 T - -6 30 /2020 1 Notes to the Income Statement for Publication In accordance with International Financial Reporting Standards (IFRS) No. Notes Explanation 1 This item includes interest and similar income, including fees with an interest nature, including the following key elements: