Peace of Mind

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Brief Introduction to BLOM Bank

Asset Management from Lebanon & MIDCLEAR

The Development of the Custody Industry

AMEDA 11TH MEETING,

BEIRUT April 2010

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One of the oldest Bank , Largest and most profitable

Universal banking model

Active in Corporate, Retail, Trade Finance, Private Banking, Investment Banking, Brokerage, Asset Management, Islamic Banking and Insurance.

Well positioned to capture regional growth

Present in KSA & Qatar (2009), Abu Dhabi (Rep. Office 2008), Egypt (2005), Jordan (2004),

Syria (2004) and UAE (Dubai & Sharjah since 1976).

Wide presence in Europe

Present in France, UK, Switzerland, Cyprus and Romania

Highest “Credit” Ratings

- The highest national score rating Aa1.Lb from Moody’s

- Rated by Capital Intelligence, a Middle East specialized rating agency, BBB-, which is

the highest financial strength rating in Lebanon

Leading Banking Group In Lebanon

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Total Deposits

Branch International Expansion

High Growth, Expanding Overseas

Qatar(0.7%)

KSA(1.4%)Egypt

6.0%

Jordan2.4%

UAE2.3%

Syria5.3%

Lebanon80.3%

Europe5.8%

5958

4752 55

676458

3728

2005 2006 2007 2008 2009

Lebanon Foreign Countries

BLOM Bank strategy is based on the expansion in the region and the diversification of its services to become a leading regional bank while continuing to ensure Peace of Mind to its customers and stakeholders.

No. of Branches

Growth of Total Net Lending

Breakdown of Net Income

2009

CAGR: 16.4%($ in millions)

6,2157,686

9,03310,161

11,73113,737

15,10817,968

2002 2003 2004 2005 2006 2007 2008 2009

9961,376 1,411 1,670 1,986

2,7723,481

4,021

2002 2003 2004 2005 2006 2007 2008 2009

($ in millions)

CAGR: 22.1%

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: available business lines

CorporateTrade

FinanceRetail

Private Banking

Investment Banking

BrokerageIslamic Banking

Insurance Asset Mgmt Research

Lebanon 2006 2008

Syria 2007 2009 2006

Egypt 2006 2006 2009

Jordan 2004

UAE

Saudi Arabia 2010 2010 2010

Qatar 2010

Europe

Wide Diversification in Business Lines and Geographies

Insurance3.1%

Investment & Private Banking12.3%

Retail Banking12.5%

Corporate & Commercial

Banking23.5%

Liquidity*48.6%

Breakdown of Operating Income 2008

* Liquidity represents Treasury Bills, CD’s, Bonds and deposits with banks.

Insurance3.1%

Investment & Private Banking

8.7%

Liquidity*51.8%Retail Banking

10.9%

Corporate & Commercial

Banking25.5%

Breakdown of Operating Income

2009

BLOM has successfully delivered consistent annual net income growth

293.2251.6205180.3

136.8

91.288.383.6

2002 2003 2004 2005 2006 2007 2008 2009

BLOM Net Income($ in millions)

Source :Company Data

Long Track Record of Consistent Profitability

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CAGR: 19.6%

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Ratio of Fee Income to Operating Income

Fee Income Breakdown by TypeFee Income Breakdown by Region

Substantial and Growing Fee Income

% of operating income Fee Income

Source: Company Data

Source: Company Data Source: Company Data

Source: Company Data

2009

23.50%20.70%23.78%

30.27%

21.67% 22.62%

25.14%

2003 2004 2005 2006 2007 2008 2009

38 4049

115

145

7993

75

2002 2003 2004 2005 2006 2007 2008 2009

CAGR: 21.0%

Jordan2.4%

Syria7.8%

Egypt16.2%

UAE3.6%

Europe13.2%

Lebanon56.8%

2009Insurance

5.7%

Investment & Private Banking

46.0%

Retail9.1%

Corporate & Commercial

Banking39.2%

The development of the Custody Industry

Clearing ServicesLebanon

The securities market represents a large and growing part of financial Markets.

Custody as an industry originated with investors needing to keep security certificates in a safe place.

In step with the growth of sophisticated financial markets,

The custody industry evolved into a complex industry no

longer characterised by physical safekeeping but by a range

of information and banking services

The development of the Custody IndustryCustodian Banks, Central Securities Depositary, International CSD

Custodian Banks provide services related to settlement and Asset Servicing ; it involves acting as an information intermediary, communicating between issuers and securities holders. They have developed economies of scale to service their customers.

When acting in multiple markets they are called global custodian.

At the urging of national authorities and central banks, some markets set up CSD to immobilise securities certificates. Advances in technology enabled markets to dematerialise. Central Registrar as 1st service. Now highly diverse services are proposed by CSD, they are the cornerstone of any efficient settlement system, and supervised by national central banks and security market authorities to prevent systemic risk. They are required to avoid credit risk and abide by good governance.

EUROCLEAR & CLEARSTREAM have a different business model than CSD since they have been founded as for profit ventures by commercial banks . They combine CSD functions and banking services

The development of the Custody Industry Custody in the electronic age & Cross Border Custody Services

Investors continue to use custodian for several reasons:

Ineligibility, Intermediation solution, functions are different in terms of risk profile, the need to cope with non standardised activities with much lower level of automation, and the need to to engage in activities considered as high value added.

Specialised reporting and additional banking services

Single market custodian Multi direct custodians Global Custodians

Most CSD cover also securities deposited with other CSD with a secondary listing. They offer a custody service in securities outside their own markets either by appointing a multi single direct custodian bank as sub-custodian, or by opening an account in other CSD which may or may not involve the same membership rules that apply to MKT participants.

The development of the Custody Industry Demand for Custody Services : Investors &

Intermediaries Private Banking & Wealth Management customers Corporations Investment firms Institutional investors

Brokers Global Custodians Asset Managers Medium to small sized Banks Issuers

The development of the Custody Industry Challenges for the Custody Industry

Diversity and increasing complexity of Assets

Competition from CSD in Banking Services

Regional challenges specific to the maturity of the industry

Asset Management from Lebanon & MIDCLEAR

First Lebanese Fund using a Global Custodian Bank then shifting to MIDCLEAR for Administration

First Lebanese Fund investing in Jordan in cooperation with MIDCLEAR and a Local Custodian Bank

First Bahraini Fund investing in Lebanon and local Custodian outsourcing its custody and administrative activities with MIDCLEAR

First Lebanese Fund investing in EGYPT and appointing

MIDCLEAR as Custodian and administrative Agent