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S T R AT E G I C R E P O R TC O R P O R AT E G O V E R N A N C EF I N A N C I A L S TAT E M E N T SKhalid Al RumaihiChairmanTariq Jaleel Al SaffarBoard MemberGhassan Ghaleb AbdulaalBoard MemberJoined BDB Board: March 2016Joined BDB Board: March 2016Joined BDB Board: March 2016ExperienceExperienceExperienceKhalid Al Rumaihi was appointed as the ChiefExecutive Officer of Mumtalakat, that took effectfrom September 2019. Prior to joining Mumtalakat,he served five years as the Chief Executive of theBahrain Economic Development Board (EDB)where he was responsible for channeling inwardinvestments into the country. He continues to playan active role as a Board member of the EDB.Mr. Al Saffar comes from a merchant family whichfocuses on FMCG products and food distribution.He has worked very closely with multi-nationals likeP&G, Clorox, Gillette, Kellogg’s, etc. He has over24 years of experience working with local & multinational companies in the communications arena.He is also experienced in startup and managementof companies from technology to healthcare anddistribution.The Global Head of Operations within the InvestorRelationship Management team at Investcorp.Mr. Abdulaal rejoined Investcorp in 2012 havingpreviously spent six years with the firm from 20032009. In the intervening period between 2009and 2012, he worked as an Investment Managerwith Bahrain Mumtalakat Holding Company. Priorto joining Investcorp in 2003, Ghassan workedat KPMG where he was a Consultant within theBusiness Performance Improvement Group.Before heading the EDB, Mr. Al Rumaihi spentover 10 years at Investcorp as a Managing Directorwhere he was also a Member of the ManagementCommittee and Head of the Institutional PlacementTeam covering Investcorp’s clients in the ArabianGulf. Before that, he had a nine-year term inJ.P. Morgan as head of its Private Client Group in theGulf region.Other DirectorshipChairman: Bahrain Real Estate Investment(Edamah). Board Member: Mumtalakat, McLarenGroup, National Oil and Gas Authority & Oil and GasHolding Company (Nogaholding).QualificationsMaster’s degree in public policy specializing inEconomic Development from Harvard University,and a Bachelor of Science degree in Foreign Servicefrom Georgetown University.Sabah Khalil Al MoayyedBoard MemberJoined BDB Board: March 2016ExperienceThe Managing Partner of Intellect ResourcesManagement W.L.L. Mrs. Sabah had held theposition of Chief Executive Officer and ExecutiveBoard Member of Eskan Bank Bahrain, ChiefExecutive Officer and Member of the Board ofDirectors of Ahli United Bank Bahrain B.S.C,Assistant General Manager, Corporate Banking/Financial Institution and Trade Finance at TheNational Bank of Bahrain B.S.C, Vice PresidentInvestment Division, Financial Banking Services atUnited Gulf Bank Bahrain and Manager at CitibankBahrain with extensive experience in corporate,retail, and investment banking.Other DirectorshipOther DirectorshipChairman: KKT Bahrain Clinic, KKT MENAHolding B.S.C. (c), Harbour Investment HoldingCompany, Arabian Taxi Company B.S.C. (c),Payment International Enterprise B.S.C. (c).QualificationsBachelor of Business, Marketing and Entrepreneurshipwith distinctions in Enterprise & Creativity from EdithCowan University in Perth, Australia.Maryam Adnan Al AnsariBoard MemberJoined BDB Board: March 2016Joined BDB Board: March 2016ExperienceExperienceCo-Founder and Managing Partner of Stratum,a boutique advisory services firm based in theKingdom of Bahrain and represents over 20-yearsof experience in strategic, financial, and transactionadvisory. He has advised the firm’s clients ontransactions both regionally and internationally andhas supported the development and growth of arange of businesses. Previously, Mr. Tabbara workedfor Citigroup in New York, London, and Bahrain.Other DirectorshipChairman: Bahrain Flour Mills Company B.S.C.Board Member: Bahrain Islamic Bank B.S.C.(Chairman of Risk Committee)QualificationsMaster’s Degree in Engineering Management anda Bachelor degree in Electrical Engineering andEconomics from Duke University.Assistant Under-secretary for Follow up andCoordination at the Ministry of Finance andNational Economy, responsible for monitoringthe implementation of priority projects as set byGovernment Priorities Framework. Before that, sheheld a few positions at the Office of the First DeputyPrime Minister where she oversaw strategic housingand infrastructure projects. Prior to that, Ms. Al Ansariworked at the Economic Development Board (EDB)as part of the Reform Projects department, whereshe contributed to revising the National EconomicStrategy, and worked closely with the Ministry ofHousing and the Ministry of Transportation andTelecommunication on key strategic projects.QualificationsBachelor’s degree in Commerce from University ofMcGill.Marwa Khaled Al SaadBoard MemberTala Abdulrahman FakhroBoard MemberJoined BDB Board: November 2019Joined BDB Board: March 2016The Vice President of Human Resources atMumtalakat Bahrain Holding Company. Ms. Al Saadbrings over 10 years of experience in HumanResources management ranging from performancemanagement, organizational development, andeffectiveness. She has both international and localexperience working for blue-chip companies suchas: General Mills Inc., Cummins Power Generation,KPMG, Tatweer Petroleum; and YBA KanooHoldings W.L.L. where she was heading the GroupHR function across the GCC.ExperienceExperienceBoard Member: L’azurde Company for Jewelry(Chair of the Audit Committee), Investcorp FinancialServices B.S.C (Member of the Audit Committee),The Council for Higher Education Bahrain (Memberof the Board of Trustee and Chair of the Finance andAdministrative Committee).A seasoned government administrator, fixed incomeproduct specialist and legal professional withextensive experience in structuring and portfoliomanagement at Morgan Stanley in London, GulfInternational Bank, the Saudi National CommercialBank and NCB Capital in Bahrain. Currently holdsthe position of Chief Projects Officer at the EconomicDevelopment Board.Master’s Degree in Business Management Financefrom University of De Paul, Chicago, a Bachelordegree in Economics and Business Administrationfrom the American University of Beirut, Lebanon,and has attended Advanced Executive Managementprograms at Wharton School Pennsylvania andDarden College Virgina - USA.Master of Science in Analysis, Design andManagement of Information Systems from theLondon School of Economics, and a Bachelordegree (Honours) in Accounting and Financefrom the University of Kent at Canterbury, UK.Marwan Khalid TabbaraBoard MemberChairperson: Flat6Labs Bahrain W.L.LQualificationsQualificationsOther DirectorshipBoard Member: The Benefit Company B.S.C. (c)and SICO B.S.C. (c).QualificationsA Juris Doctor from the Georgetown University LawCenter in Washington DC, a Bachelor degree inEconomics from Smith College, Northampton, andhas passed the New York bar exam.Marwa was the Chairman of the Nomination& Remuneration Committee for AXA Gulf.QualificationsMaster’s Degree from Purdue University, KrannertSchool of Management – USA with a focus inHuman Resources and a Bachelor degree fromPurdue University – USA majored in OrganizationalLeadership and Supervision.BAHRAIN DEVELOPMENT BANK BSCANNUAL REPORT 202011

12BAHRAIN DEVELOPMENT BANK BSCANNUAL REPORT 2020

S T R AT E G I C R E P O R TC O R P O R AT E G O V E R N A N C EF I N A N C I A L S TAT E M E N T SShari’a BoardSheikh Abdulnasser AlmahmoodDr. Omar Abdulaziz AlaaniDr. Mohammed Burhan ArbounaWell versed in Islamic banking and financewith over 28 years of Islamic bankingexperience, and the head in the Sharia’aCoordination and Implementation departmentat Khaleeji Commercial Bank. Before joiningKhaleeji Commercial Bank, Sheikh AbdulNaser was the Senior Manager in Sharia’aAudit Department in Ernst & Young – Bahrain.He also, worked as the Head of Sharia’aInternal Control Department in Bahrain IslamicBank as well as member of the Sharia‘aSupervisory Board inmany Islamic banksand institutions.Dr. Omar Abdulaziz Alaani has taught IslamicEconomy in many universities in Iraq, Russia,Yemen and Bahrain. He also participatedglobally in several conferences within his field.An Islamic finance expert with over 20 yearsof Islamic banking experience and head ofSharia Compliance in Al Salam Bank. Beforejoining Al Salam Bank Bahrain, he was theShari’a Head and Shari’a Board member insome other Islamic institutions.He holds a Master degree in BusinessAdministration from the Gulf University, aBachelor’s degree in Sharia’a and IslamicStudies from Qatar University, ADICAdvanced Diploma in Islamic Commercialfrom BIBF, CSAA Certified Shari’a Adviser &Auditor from AAOIFI, Associate Diploma inShari’a Control from Cambridge University fortraining- approved by British Council, and anInstructor Certified in BIBF.He has been working as an academic teacherin the University of Bahrain since 2000 inseveral fields, such as Financial transactions,insurance, Islamic Jurisprudence rules andhas retired in 2018.He obtained PhD majoring in IslamicEconomics in 1997, a Master Degree in 1993and Bachelor degree in 1984.He worked as a Shari’a researcher andconsultant for the Accounting and AuditingOrganization for Islamic Financial Institutions(AAOIFI). He lectures on Islamic banking andfinance and gives consultancy on orientationand professional programs for a number ofprofessional and educational institutions.He is a member of the Editing Committee ofInternational Islamic Financial Board (IFSB)and was a member of the steering committeefor International Liquidity ManagementFramework under the supervision of theCentral Bank of Bahrain.He obtained a Master degree in ComparativeLaws and a PhD in laws with specialization inIslamic banking and finance from InternationalIslamic University Malaysia. He also has aBachelor’s degree in Shari’a and a higherDiploma in Education from Islamic University,Medina.BAHRAIN DEVELOPMENT BANK BSCANNUAL REPORT 202013

Chairman’s StatementThe BDB group hasmaintained tremendousmomentum in itstransformation journey.We are well on our way to aCloud based environmentwith several workloadsalready migrated to Cloudand many more in thepipeline.Khalid Al RumaihiChairmanThe Directors of the Bahrain Development Bank Group,(“the bank and its subsidiaries”), pleasured to present theannual report accompanied by the consolidated financialstatements for the year ended 31 December 2020, another yearof continued profitability and growth.2020 was a year of significant challenge for economiesworldwide due to the pandemic. These challenges werewitnessed on all fronts including both operational andfinancial. Despite the turbulent operating backdrop, BahrainDevelopment Bank (BDB) managed to make great progress inbuilding on its core mandate to support Bahrain-based Smalland Medium Enterprises (SMEs) and in addition help themmitigate the negative impact of the pandemic and sustain theirbusinesses.In line with our strategy, Bahrain Development Bank increasedits disbursements by 179% in 2020 over 2019 (43% in 2019 over2018). This was achieved through two main-focal points. Thefirst being the continuation of the Liquidity Support Fund (LSF),which was launched by the Government of Bahrain in Q4 2019,and the second being the new concerted efforts to streamlineand facilitate faster, smoother and more performance driveninternal processes and organizational architecture.Despite the global turmoil and financial unrest witnessed in2020, BDB loans to SMEs have increased by 106%, with a totalof BD 48.1 million in loan disbursements in 2020 (2019: BD23.4million). This is a substantial achievement considering that,as a COVID-19 safety measure, almost 50% of the staff wereworking from home for the majority of the year.I am also pleased to report that 155 businesses benefitedfrom the various incubation facilities under the BDB group,including BBIC, Riyadat and Farmers Market, during 2020.14BAHRAIN DEVELOPMENT BANK BSCANNUAL REPORT 2020

S T R AT E G I C R E P O R TC O R P O R AT E G O V E R N A N C EF I N A N C I A L S TAT E M E N T SSMEs Loan DisbursementsIncubated BusinessesBD 48.1 m155In addition to incubation, these businesses received differentsupport initiatives & facilities to help them face the negativeimpacts of the pandemic.As the Bank increased its focus on the development of itsdigital and technology-driven services internally, it alsoremained dedicated to strengthening its role to support SMEsin the national economy. This was emphasized by continuedefforts to support key national projects under the directives ofthe Central Bank of Bahrain (CBB).Despite the global turmoil and financialunrest witnessed in 2020, BDB loans toSMEs increased by 106%, with a total ofBD 48.1 million in loan disbursements.The improvement in disbursements and revenues, effectivecredit, and recovery processes, along with strict cost controlwas first reflected in the year 2019 financials, where the Bankposted a full year net profit for the first time in 6 years. Thispositive trend has been maintained in 2020, with BDB groupposting a positive bottom-line for the full financial year despitethe adverse economic and credit environment.In conformity with the BDB group’s strategic plan towards digitaltransformation, and to strengthen our executive managementteam, four new key members joined the group to support thebank’s initiatives on a number of fronts. The new appointmentsincluded a Chief Technology Officer, a new Head of HumanResources, a new Head of Credit, and a new head of digitalmarketing.The BDB group has maintained tremendous momentum inits transformation journey. We are well on our way to a cloudbased environment with several workloads already migratedto Cloud and many more in the pipeline. In addition, our corebanking upgrade project was kicked off which will make BDBone of the first banks in the kingdom to operate on a cloudbased state-of-the-art SaaS-based core banking system.These initiatives, in addition to the transformation planned forthe customer facing channels with the soon-to-be launchednew digital interface of BDB, ‘tijara’, will strongly position BDBas the digital banking partner of choice and a national enablerfor SMEs and startups in Bahrain.155 businesses benefited from thevarious incubation facilities under theBDB group, including BBIC, Riyadat andFarmers Market.In spite of the challenges faced in 2020, the BDB group underthe wise leadership of the Kingdom of Bahrain has successfullyovercome adversity to post another year of financial growthand success. The bank has demonstrated a good level ofprogress and has provided a solid foundation for its clientelefor the years to come.I would like to take this opportunity to extend my sincere thanksand gratitude to His Majesty King Hamad bin Isa Al Khalifa,the King of the Kingdom of Bahrain, His Royal Highness PrinceSalman bin Hamad Al Khalifa, The Crown Prince and PrimeMinister, and the many government ministries and institutionsfor their continued support and wise leadership.In conclusion, I offer my thanks to the members of the Board ofDirectors, the executive management team and all partners andemployees. We look forward to successful future collaborationtowards our shared mission to build a sustainable economicfuture for the Kingdom of Bahrain.Khalid Al RumaihiChairmanBAHRAIN DEVELOPMENT BANK BSCANNUAL REPORT 202015

NURTURINGGROWTHTHROUGHOPPORTUNITYBahrain Development Bank remains dedicated to strengthenthe role of SMEs in the national economy. The crucial role ofSMEs is being supported with the efforts of BDB, along with keypublic and private entities and institutions. This collaboration isdesigned to develop a strong, stable and secure entrepreneurshipecosystem as per Bahrain’s Economic Vision 2030.16BAHRAIN DEVELOPMENT BANK BSCANNUAL REPORT 2020

S T R AT E G I C R E P O R TC O R P O R AT E G O V E R N A N C EF I N A N C I A L S TAT E M E N T SEnhanced ProductOfferingsEnhanced CustomerExperienceOmni ChannelService Offeringby refocusing our core mandate, in orderto support Bahrain-based Small andMedium Enterprises (SMEs).through our ongoing operational,hierarchical and digital transformationthat will help us in driving change.by streamlining the bank’s offering ofinnovative products and services to theSMEs sector through a world-class omnichannel platform.BAHRAIN DEVELOPMENT BANK BSCANNUAL REPORT 202017

Executive ManagementSanjeev PaulGroup Chief Executive OfficerRaed Yousuf BukannanHead of BankingAbdulrahman Abdulla BuhejiHead of CreditShohra Abdulnabi Abbas HusainHead of Human ResourcesMaitham A. Hameed AbbasHead of Business DevelopmentVijay Kumar T.Chief Risk OfficerNote: The executive management structure shown is as of 21st of March 202118BAHRAIN DEVELOPMENT BANK BSCANNUAL REPORT 2020Nada Mohamed AbdulrahmanChief Technology Officer

S T R AT E G I C R E P O R TC O R P O R AT E G O V E R N A N C EF I N A N C I A L S TAT E M E N T SSanjeev PaulGroup Chief Executive OfficerAbdulrahman Abdulla BuhejiHead of CreditMaitham A. Hameed AbbasJoined BDB: 2018Joined BDB: 2021Joined BDB: 2017Sanjeev Paul brings three decades of internationalbanking experience to Bahrain DevelopmentBank B.S.C (BDB). Prior to his appointment asGroup Chief Executive Officer of BDB in May2018, Sanjeev served Standard Chartered Bank(SCB) for 30 years as a member of SCB’s globalleadership team. He served SCB as ManagingDirector and Regional Head of CommercialBanking for ASEAN and South Asia, heading theBank’s commercial banking business across ninecountries, including markets such as Singapore,India, Malaysia and Indonesia. Prior to that, heserved as Global Head for Local Corporatesand Commodity Traders - a business spanningover 30 countries in SCB’s global franchise. Hehas also headed SCB’s structured trade financebusiness as Global Head of Structured TradeFinance. Earlier to that, Sanjeev was responsiblefor setting up Standard Chartered Bank’s MiddleMarket Business in India and has served as theSCB’s Risk Approver for five years. Sanjeevserved as the Chairman and Non-ExecutiveDirector on the Board of Directors for StandardChartered Bank Vietnam Ltd for 3 years till 2019.He is a Non-Executive Director on the Board ofEbdaa Bank for Microfinance since October 2018and also serves as an advisor to the Board ofTenmou, Bahrain.Abdulrahman has more than 13 years ofextensive experience in credit, investments, andcorporate banking both conventional and Islamicin nature. Prior to joining BDB, Abdulrahmanheld several senior positions including, ActingChief Credit Officer at BBK BSC, Head ofCorporate Banking Analysts at BISB, Area CreditManager at Bank ABC, and Project & StructuredFinance Manager at GIB.Maitham brings more than 15 years of diverseexperience to BDB. Prior to his appointment ashead of Business Development at BDB in 2017,Maitham served Kuwait Finance House in thecorporate banking and credit risk managementdivisions. Prior to this, he worked with UNIDOin investment promotion and entrepreneurshiptraining and SMEs counselling. Before this, heworked at BDO in strategy consulting. In additionto his role as Head of Business Development,Maitham is also the Bank’s Board Secretary.Sanjeev is a Singaporean national & holds aBachelor’s degree in Engineering and a Master’sdegree in Business Administration (MBA) inFinance and Marketing.Raed Yousuf BukannanHead of BankingJoined BDB: 2019Raed brings over 19 years of international anddomestic banking experience to BDB. Previousto his appointment as Deputy General Manager– Head of Banking in 2019 where he supervisesthe Banking and Remedial & Collections Teams,he gained a wealth of experience serving toptier institutions. Some of these include HSBC,Ahli United Bank, and National Bank of Kuwait,where he worked with SMEs, Large InstitutionalCorporates, Multi-national Companies, Gov’t& Gov’t Related Entities, and Financial & Nonbanking Financial Institutions.Raed holds a Bachelor’s degree infrom Nicholls State University,USA, and a Master’s degree inAdministration (MBA) from St.University, Texas, USA.MarketingLouisiana,BusinessEdward’sHead of Business DevelopmentAbdulrahman graduated with an MBA fromThe University, of Manchester and holdsa Bachelor of Commerce from ConcordiaUniversity Canada. He also holds variousprofessional certificates in Risk Management,Islamic Finance, and Real Estate, in addition tocompleting a comprehensive credit program(Credit Culture) with Moody’s.Nada Mohamed AbdulrahmanMaitham holds a Bachelor in Economics andPhysics from McGill University in addition tovarious professional qualifications in finance andrisk management.Vijay Kumar T.Chief Risk OfficerChief Technology OfficerJoined BDB: 2016Joined BDB: 2020Vijay brings to the bank 28 years of regional andglobal banking and financial services industryexperience across multiple streams of RiskManagement, Solutions implementation andConsultancy services. Prior to joining BDB asChief Risk

BDB Building, Diplomatic Area P.O. Box 20501, Manama, Kingdom of Bahrain T: ( 973) 17 511111, F: ( 973) 17 534005 E: info@bdb-bh.com Contents 02 31 37 . services. BAHRAIN DEVELOPMENT BANK BSC 04 ANNUAL REPORT 2020 2020 2019 2018 2017 2016 Income statement highlights (BD Thousands)