Bahrain Islamic Bank B S C : Annual Financial & Sustainability Report 2022

SIMPLICITY THROUGH INNOVATION

ANNUAL FINANCIAL AND SUSTAINABILITY REPORT 2022

WWW.BISB.COM

Bahrain Islamic Bank B.S.C.

P.O. Box 5240, Manama, Kingdom of Bahrain

T [phone]

F [phone]

1. [e-mail]
   www.bisb.com

Licensed as an Islamic Retail Bank by the Central Bank of Bahrain

Late Amir	His Majesty	His Royal Highness
His Highness	King Hamad bin Isa	Prince Salman bin Hamad
Shaikh Isa bin Salman	Al Khalifa	Al Khalifa
Al Khalifa
		The King of	The Crown Prince and Prime
		the Kingdom of Bahrain	Minister of the Kingdom of
			Bahrain

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ABOUT THE REPORT

The Bahrain Islamic Bank (BisB) Annual Financial and Sustainability Report (the Report or this Report) for the year 2022 highlights the Bank's financial performance and sustainability development. Through this Report, we aim to provide our stakeholders with insights into the financial value created by BisB, and highlight Environmental, Social, and Governance (ESG) targets achieved through various industry-lead initiatives and business practices.

In line with BisB's commitment to transparent ESG reporting, the Bank conducted a comprehensive review of its ESG progress in 2022 to help the key stakeholders and investors make informed decisions. To get a complete overview of BisB's performance metrics, we recommend viewing our ESG report along with our consolidated Financial Statements, Risk and capital management disclosure, Corporate Governance, and Remuneration disclosures.

2022 REPORTING SCOPE AND ORGANIZATIONAL PARAMETERS

2022 was an important year for BisB. We continued to invest in new technologies to enhance our digital products and operational capabilities. Furthermore, our bank-wide approach focused on delivering improved customer experience while ensuring ESG progress.

Reporting Boundary

The financial and sustainability information provided in this Report corresponds to the fiscal year 2022 (1st January 2022 till 31st December 2022), unless otherwise stated.

The bank has nine branches, all operating in the Kingdom of Bahrain. Therefore, Bisb's Reporting boundary is within the Kingdom of Bahrain.

The consolidated financial statements include the results of the Bank and its wholly owned subsidiaries (together the "Group"). The bank holds 100% of the share capital of Abaad Real Estate W.L.L.

National Bank of Bahrain (NBB) owns 78.81% of shares. Hence, NBB is considered as Parent of the Bank for financial reporting purposes.

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Reporting Frameworks

The Report has been prepared in accordance with internationally recognized reporting standards and frameworks in order to ensure complete accountability and transparency.

This includes:

• Adhering to the International Integrated Reporting Framework (IIRF), now part of the IFRS Foundation. The framework requires complete disclosure of financial and non-financial performance to provide a holistic overview of a company's long and short-term goals and value creation.
• The consolidated financial statements have been prepared in accordance with FAS issued AAOIFI and applicable rules and regulations issued by CBB.
• Ensuring the sustainability content of the Report is in accordance with the Global Reporting Initiative (GRI).
• Following the 32 ESG metrics outlined by the Bahrain's National Stock Exchange (Bahrain Bourse), wherever possible. These metrics are aligned with the Sustainable Stock Exchanges (SSE) initiative.
• Adhering to the UN Sustainable Development Goals (SDG) that were developed to achieve environmental sustainability by world economies by 2030.
• Aligning BisB's ESG initiatives with the Bahrain Economic Vision 2030.

Relevant sections of the Report clearly outline the framework and international reporting standards they adhere to. Further details are included in the GRI Appendix at the end of the Report.

Financial Data Accuracy

Fair presentation in all material aspects underpins BisB's financial reporting. To that end, the consolidated financial statements of BisB were audited KPMG Fakhro, an internationally recognized audit firm. Additionally, BisB's board of directors has approved these consolidated financial statements.

Reporting Integrity

The Board of Directors ensures the integrity of this Report and confirms that the disclosed information is fairly presented, in all material aspects, and is in accordance with International Integrated Reporting Framework, the Financial Accounting Standards issued by AAOIFI as well as the GRI Standards.

Disclaimer: Forward-Looking Statements:

Forward-looking statements involve uncertainty given the many external factors that could have an impact on the environment in which the Bank is operating. BisB bears no obligation to publicly update or revise any/all forward- looking statements included in the report unless required by applicable laws and regulations.

ANNUAL FINANCIAL & SUSTAINABILITY REPORT 2022 3