1. Based on financial reports prepare ratio analysis and interpret the result of the Following ratios:

Liquidity : Current Ratio, Quick Ratio

Leverage : Debt to Total Assets Ratio, Debt to Equity Ratio

Profitability : Based on Sales, Based on Investment and based on Market Ratios

Oman Arab Bank SAOC STATEMENT OF FINANCIAL POSITION Year ended 31 December 2016 Notes 2015 ROOM 25 1.5 7 8 9 10 11 12 192,124 83,226 1,519,571 118,357 40,856 28,565 1,982,699 ASSETS Cash and balances with the Central Bank of Oman Due from banks Loans and advances and financing to customers Investment securities Other assets Property and equipment Total assets LIABILITIES Due to banks Deposits from customers Other liabilities Subordinated debt Taxation Total liabilities 13 14 15 17 18 9,404 1,601,162 71,751 70,000 4,363 1,756,680 EQUITY Share capital 19 116,000 Legal reserve 20 33,368 General reserve 21 26,560 Subordinated debt reserve 22 40,000 Special reserve 23 Cumulative changes in fair value (3,260) Retained earnings 13,351 Total equity attributable to the equity holders of the Bank 226,019 Perpetual Tier I capital bonds Total equity 226,019 Total equity and liabilities 1,982,699 Contingent liabilities and commitments 374 859,862 The financial statements were authorised for issue by the Board of Director 23 January 2017 and signed by: 24 STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December 2016 Notes 26 27 RO 7 (2 2015 RO'000 64,455 (15,321) 28 29 30 49,134 20,411 2,511 5,649 77,705 31 9(a) 9(a) (41,962) (13,327) 7,977 (406) 2,400 10 Continuing operations Interest income Interest expense Net interest income Fee and commission income - net Investment (loss) income - net Other operating income Total income Operating expenses Impairment for credit losses Recoveries/release from provision for credit losses Impairment of investments available-for-sale Profit from sale of property Profit before tax from continuing operations Income tax expense Profit for the year from continuing operations Discontinued operations Profit after tax for the year from discontinued operations Profit for the year Other comprehensive income (expense) that will be reclassified to the profit or loss Net loss during the year on available-for-sale investments Recycling to profit or loss for impairment on investments available- for-sale Other comprehensive income (expense) for the year, net of tax Total comprehensive income for the year 18 32,387 (3,805) 28,582 32 429 29,011 (2,337) 406 (1,931) 27,080 33 20 0.025 Earnings per share: Basic and diluted (RO) Basic and diluted earnings from continuing operations (RO) 0.025 Oman Arab Bank SAOC STATEMENT OF CHANGES IN EQUITY (continued) Year ended 31 December 2016 Notes Share capital RO 900 Legal reserve RO 900 30,467 General Subordinated reserve debt reserve RO 900 RO'000 23,659 30,000 Cumulative changes in fair value RO 900 (1.329) Retained earnings RO 900 14,062 29,011 Total RO 900 212,859 116,000 (1.931) 29,011 (1.931) At 1 January 2015 Profit for the year Other comprehensive expense Total comprehensive (expense) income for the year Transfer to legal reserve Transfer to general reserve Transfer to subordinated debt reserve Dividend paid At 31 December 2015 (1.931) 27,080 2,901 2,901 10,000 29,011 (2,901) (2,901) (10,000) (13,920) 13,351 (13,920) 116,000 33,368 26,560 40,000 (3.260) 226,019 Oman Arab Bank SAOC STATEMENT OF FINANCIAL POSITION Year ended 31 December 2016 Notes 2015 ROOM 25 1.5 7 8 9 10 11 12 192,124 83,226 1,519,571 118,357 40,856 28,565 1,982,699 ASSETS Cash and balances with the Central Bank of Oman Due from banks Loans and advances and financing to customers Investment securities Other assets Property and equipment Total assets LIABILITIES Due to banks Deposits from customers Other liabilities Subordinated debt Taxation Total liabilities 13 14 15 17 18 9,404 1,601,162 71,751 70,000 4,363 1,756,680 EQUITY Share capital 19 116,000 Legal reserve 20 33,368 General reserve 21 26,560 Subordinated debt reserve 22 40,000 Special reserve 23 Cumulative changes in fair value (3,260) Retained earnings 13,351 Total equity attributable to the equity holders of the Bank 226,019 Perpetual Tier I capital bonds Total equity 226,019 Total equity and liabilities 1,982,699 Contingent liabilities and commitments 374 859,862 The financial statements were authorised for issue by the Board of Director 23 January 2017 and signed by: 24 STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December 2016 Notes 26 27 RO 7 (2 2015 RO'000 64,455 (15,321) 28 29 30 49,134 20,411 2,511 5,649 77,705 31 9(a) 9(a) (41,962) (13,327) 7,977 (406) 2,400 10 Continuing operations Interest income Interest expense Net interest income Fee and commission income - net Investment (loss) income - net Other operating income Total income Operating expenses Impairment for credit losses Recoveries/release from provision for credit losses Impairment of investments available-for-sale Profit from sale of property Profit before tax from continuing operations Income tax expense Profit for the year from continuing operations Discontinued operations Profit after tax for the year from discontinued operations Profit for the year Other comprehensive income (expense) that will be reclassified to the profit or loss Net loss during the year on available-for-sale investments Recycling to profit or loss for impairment on investments available- for-sale Other comprehensive income (expense) for the year, net of tax Total comprehensive income for the year 18 32,387 (3,805) 28,582 32 429 29,011 (2,337) 406 (1,931) 27,080 33 20 0.025 Earnings per share: Basic and diluted (RO) Basic and diluted earnings from continuing operations (RO) 0.025 Oman Arab Bank SAOC STATEMENT OF CHANGES IN EQUITY (continued) Year ended 31 December 2016 Notes Share capital RO 900 Legal reserve RO 900 30,467 General Subordinated reserve debt reserve RO 900 RO'000 23,659 30,000 Cumulative changes in fair value RO 900 (1.329) Retained earnings RO 900 14,062 29,011 Total RO 900 212,859 116,000 (1.931) 29,011 (1.931) At 1 January 2015 Profit for the year Other comprehensive expense Total comprehensive (expense) income for the year Transfer to legal reserve Transfer to general reserve Transfer to subordinated debt reserve Dividend paid At 31 December 2015 (1.931) 27,080 2,901 2,901 10,000 29,011 (2,901) (2,901) (10,000) (13,920) 13,351 (13,920) 116,000 33,368 26,560 40,000 (3.260) 226,019