Al-Hekma for Financial Services Tel +962 6 5654046/47/48 Fax: +962 6 5654049

1. Al-Hekma for Financial Services Tel +962 6 5654046/47/48 Fax: +962 6 5654049 Brief UpdateDate: Aug 2010 • ARBK Mid-Year 2010 Brief • Lower mid-year net income of 11.8%. Net income stood at $303 million against $344 million in mid-year 2009. The drop is mainly attributedto additional credit provisions of $124 million bringing total provisions to $864 million, 44.4% of non-performing loans, compared to 43.4% at year end. • Main balance sheet figures continue to tighten. Total assets declined to $48.9 billion , compared to $50.6 billion at the end of 2009. Net credit facilities also shrank from year end by 1% to reach a level of $ 21.8 billion as a result of low global demand for credit facilities. While customer deposits dropped from year end by 2.4% to reach a level of $30.7 billion. Noting that 38.3% of customer deposits at Arab bank is in NIB deposits ($11.8 billion). • Net income in 2010 expected not to exceed 2009 level of $576 million. Pressure to further grow credit provisions by $150-$250 to improve coverage ratio, the narrowing interest margins at 3% mid-year 2010 and the dim prospects of a quick real estate recovery in the Gulf ,may result in net income in 2010 lower and at best similar to 2009 levels.