Bahrain Islamic Bank B S C : Composition of Capital and Liquidity Disclosures – 31 March 2023

Bahrain Islamic Bank B.S.C.

Composition of Capital and Liquidity Disclosures

As at 31 March 2023

Reconcilation of Published Financial Balance Sheet to Regulatory Reporting as at 31 March 2023

	Statement of Financial	Statement of Financial
	position as per
	position as per
	published financial
	Regulatory Reporting
	statements
	Q1 2023	Q1 2023
	BD'000	BD'000
Assets
Cash and balances with banks and Central Bank	58,858	58,858
Gross Placements with financial institutions	69,612	69,612
Less: Expected credit loss (stage 3)	(3,686)	(3,686)
Less: Expected credit loss (stage 1 and stage 2)	(6)	-
Net placements with financial institutions	65,920	65,926
Gross financing assets	647,629	647,629
Less: Expected credit loss (stage 3)	(18,324)	(18,324)
Less: Expected credit loss (stage 1 and stage 2)	(13,913)	-
Net financing assets	615,392	629,305
Gross investment securities	286,612	286,612
Less: Expected credit loss (stage 3)	(26,801)	(26,801)
Less: Expected credit loss (stage 1 and stage 2)	(119)	-
Net investment securities	259,692	259,811
Ijarah Muntahia Bittamleek	316,685	316,685
Less: Expected credit loss (stage 3)	(1,545)	(1,545)
Less: Expected credit loss (stage 1 and stage 2)	(1,932)	-
Net Ijarah Muntahia Bittamleek	313,208	315,140
Investment in associates	8,960	8,960
Investment in real estate	13,661	13,661
Property and equipment	13,824	13,824
Other assets	16,250	16,250
TOTAL ASSETS	1,365,765	1,381,735
Liabilities, Equity Of Investment Accountholders
And Owners' Equity
Liabilities
Placements from financial institutions	164,745	164,745
Placements from non-financial institutions and individuals	298,615	298,615
Financing from financial institutions	108,752	108,752
Customers' current accounts	200,034	200,034
Other liabilities	36,370	36,277
of which: Expected credit loss - Off balance sheet exposures (stage 3)	1,310	1,310
(stage 1 and stage 2)	93	-
of which: Other liabilities	34,967	34,967
Total Liabilities	808,516	808,423
Total Equity of Investment Accountholders	418,771	418,771
Owners' Equity
Share capital	106,406	106,406
Subordinated Mudaraba (AT1)	-	-
Treasury shares	(892)	(892)
Shares under employee share incentive scheme	(169)	(169)
Share premium	206	206
Statutory reserve	6,606	6,606
Real estate fair value reserve	1,320	1,320
Investment securities fair value reserve	1,635	1,635
Expected credit loss	-	16,063
of which: amount eligible for Tier 2 capital subject to a maximum of 1.25% of credit risk weighted assets	-	9,108
of which: amount ineligible for Tier 2 capital	-	6,955
Profit for the year	3,003	3,003
Retained earnings brought forward	(4,637)	(4,637)
of which: Retained earnings as of 1 January 2023	(4,217)	(4,217)
of which: Zakah and donations approved	(420)	(420)
of which: Profit distribution on AT1 Capital	-	-
of which: Share of reserve of investment in associate	-	-
of which: Transfer to statutory reserve	-	-
Equity Attributable to Parent's Shareholders	113,478	129,541
Subordinated Mudaraba (AT1)	25,000	25,000
Total Owners' Equity	138,478	154,541
TOTAL LIABILITIES, EQUITY OF INVESTMENT
ACCOUNTHOLDERS AND OWNERS' EQUITY	1,365,765	1,381,735

Composition of Capital Common Disclosure Template as at 31 March 2023

	Common Equity Tier 1 capital: instruments and reserves
1.	Directly issued qualifying common share capital plus related stock surplus	115,160
2.	Retained earnings	11,088
3.	Accumulated other comprehensive income (and other reserves)	1,635
4.	Not applicable	-
5.	Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)	-
6.	Common Equity Tier 1 capital before regulatory adjustments	127,883
	Common Equity Tier 1 capital: regulatory adjustments
7.	Prudential valuation adjustments	-
8.	Goodwill (net of related tax liability)	-
9.	Other intangibles other than mortgage-servicing rights (net of related tax liability)	-
10.	Deferred tax assets that rely on future profitability excluding those arising from 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	-
16.	Investments in own shares	-
17.	Reciprocal cross-holdings in common equity	-
	Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation,
18.	net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above 10%	-
	threshold)
19.	Significant investments in the common stock of banking, financial and 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	-
29.	Common Equity Tier 1 capital (CET1)	127,883

Composition of Capital Common Disclosure Template as at 31 March 2023

	Additional Tier 1 capital: instruments
30.	Directly issued qualifying Additional Tier 1 instruments plus related stock surplus	25,000
31.	of which: classified as equity under applicable accounting standards	-
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) 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	25,000
	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 outside the scope of regulatory consolidation,
39.	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)
40.	Significant investments in the capital of banking, financial and insurance entities 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)	25,000
45.	Tier 1 capital (T1 = CET1 + AT1)	152,883
	Tier 2 capital: instruments and provisions
46.	Directly issued qualifying Tier 2 instruments plus related stock surplus	1,320
47.	Directly issued capital instruments subject to phase out from Tier 2	-
48.	Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third	-
parties (amount allowed in group Tier 2)
49.	of which: instruments issued by subsidiaries subject to phase out	-
50.	Provisions	9,108
51.	Tier 2 capital before regulatory adjustments	10,428
	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 outside the scope of regulatory consolidation,
54.	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)
55.	Significant investments in the capital banking, financial and insurance entities 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)	10,428
59.	Total capital (TC = T1 + T2)	163,311
60.	Total risk weighted assets	847,482

Composition of Capital Common Disclosure Template as at 31 March 2023

	Capital ratios and buffers
61.	Common Equity Tier 1 (as a percentage of risk weighted assets)	15.09%
62.	Tier 1 (as a percentage of risk weighted assets)	18.04%
63.	Total capital (as a percentage of risk weighted assets)	19.27%
64.	Institution specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus countercyclical	9%
buffer requirements plus D-SIB buffer requirement, expressed as a percentage of risk weighted assets)
65.	of which: capital conservation buffer requirement	2.50%
66.	of which: bank specific countercyclical buffer requirement	N/A
67.	of which: D-SIB buffer requirement	N/A
68.	Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets)	15.09%
	National minima including CCB (where different from Basel III)
69.	CBB Common Equity Tier 1 minimum ratio	9.00%
70.	CBB Tier 1 minimum ratio	10.50%
71.	CBB total capital minimum ratio	12.50%
	Amounts below the thresholds for deduction (before risk weighting)
72.	Non-significant investments in the capital of other financials	-
73.	Significant investments in the common stock of financials	-
74.	Mortgage servicing rights (net of related tax liability)	-
75.	Deferred tax assets arising from temporary differences (net of related tax 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 standardized approach (prior to application of	16,062
cap)
77.	Cap on inclusion of provisions in Tier 2 under standardized approach	9,108
78.	N/A	-
79.	N/A	-
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	NA
81.	Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities)	NA
82.	Current cap on AT1 instruments subject to phase out arrangements	NA
83.	Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities)	NA
84.	Current cap on T2 instruments subject to phase out arrangements	NA
85.	Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)	NA