BankMed/About Us/Letter from the Chairman

Letter from the Chairman

The new year opens a new chapter of success for BankMed; which has embarked on a solid and clear path to solidify its position at home and expand its presence abroad, as good growth opportunities present themselves. As one of the top ten banks in Lebanon, the Bank now stands on a solid platform and looks forward to growing further, by capitalizing on what it does best: provide the most optimal banking services to its broad range of customers. BankMed continues to be the market leader in corporate banking, and today we provide funding to a large majority of the top corporate groups in Lebanon. Yet, over the past four years we have focused concertedly on expanding and strengthening our Retail and Investment banking businesses. Our recent emergence as a market-leader in treasury and investment products was recognized when BankMed was awarded the Best Investment Bank Award for 2009 by Global Finance magazine. Our brokerage arm has grown into one of the most active players in the Lebanese market offering customers a strong variety of innovative tailor-made and off-the-shelf investment products - at a time when most financial markets around the globe suffered major losses. Our substantial growth momentum in the consumer business line in recent years has been sustained by continuously developing new products and services to meet the dynamics of market conditions and customer needs. BankMeds proactive approach to attracting clients, its dynamic market presence and close monitoring of customer satisfaction; have all helped BankMed significantly improve the delivery and quality of its services across all channels. Public perception and recognition of BankMeds retail image has been heightened by the successful Smile Campaign while the extension of our services beyond the geographical reach of our branch network through BankMeds comprehensive e-banking service-MedOnline- was undertaken to make our customers banking experience both more convenient and more efficient. Launched in early 2009, BankMeds environmental campaign - the Happy Plant Project -has been extended for another year owing to BankMeds conviction to preserving Lebanons spectacular natural heritage. This steadfast commitment to upholding our corporate social responsibilities has, thankfully, been reinforced by some great positive feedback from customers, stakeholders and the general public. The initiative encompasses an ongoing and widespread advertising campaign to raise public awareness of environmental issues, and is supported by the implementation of in-house eco-friendly practices as part of the Banks daily operations; most notably the carbon-reduction project at our head office, a first step towards reaching our goal to become the first bank in Lebanon to be certified as Carbon Neutral. For our customers, BankMed has introduced special banking products to promote eco-friendly projects in line with directives set out by the Governor of Lebanons Central Bank. BankMeds participation in and/or sponsorship of conservation projects in partnership with government departments, NGOs and educational institutions to address specific environmental challenges facing Lebanon; allows us to extend our commitment to conserving the environment beyond the physical reach of BankMeds branches and headquarters. In August 2009 a 400-member team of BankMed staff and volunteers from Cedars for Care, a local environmental NGO, undertook a massive clean-up of the Remeileh seashore on the countrys southern coast. 1,000 cedar trees - Lebanons national symbol - will be planted on behalf of the Bank through a reforestation initiative currently underway at the Barouk and Al Arz nature reserves. Additionally, specialized tree plantations are taking place in areas throughout Lebanon in collaboration with the American University of Beirut. Under this initiative, BankMed pledges to plant a tree for every square kilometre comprising the Lebanese territory. Thus, by the time our program is completed we will have planted 10,452 trees across the country. In 2009 we completed the upgrade and revamp of several of our branches, both functionally and aesthetically, to create a more opportune banking experience and uplift the BankMed image. Today, customers can apply for universal services at any of our conveniently located branches, which are expected to number 50 by the end of 2009. As a growing regional player, we hold ourselves to the highest international standards of best-practice and seek to constantly invest in innovation, while utilizing the latest technology to furnish the banking needs of an increasingly mobile and globalized customer-base. BankMed firmly believes that customer satisfaction is fundamental to our long-term success; and is one of the fundamental principles guiding our daily operations as BankMed strives to be A Bank for All kinds of customers - no matter how large or small their financial service needs are. Throughout 2009 Lebanon has surpassed expectations regarding its economic progress. For BankMed, the progress that was achieved within this positive environment is a signal to us that we are indeed on the right track. We look forward to the year ahead with optimism, and wish all our valued customers and clients a prosperous and peaceful new year.

Mohammed Hariri Chairman - General Manager

Profile
Who We Are
Headquartered in Beirut, BankMed is one of the top five banks in Lebanon. Originally established in 1944, under Beirut CR 5261 - Banks List No: 22, its market share - measured by total assets - has grown over the years to comprise around 10% of the total of the Lebanese banking system today. BankMed, through its 51 branches spread all over Lebanon, and one in Cyprus, offers a wide range of novel products and quality services to both individuals and corporations. BankMeds private bank in Switzerland, BankMed Suisse, is engaged in asset-management and advisory banking services, through its offices in Geneva. BankMeds regional presence was expanded to Turkey in 2007 with the addition of a subsidiary commercial bank, T-Bank,

to the Group. In 2008 the SaudiMed Investment Company was launched in Riyadh which provides investment and corporate advisory services to a growing base of customers in the Kingdom and elsewhere in Middle East. By the end of 2009, BankMeds total assets stood at around US$10.6 billion, it had customer deposits of approximately US$8.2billion and total loans of just over US$3.1 billion. BankMed has a client-portfolio currently exceeding 130,000 customers.

What We Stand For

BankMed has always believed that a thriving Lebanese economy is the best possible environment for a successful bank. Indeed, BankMeds role in financing commercial, industrial, and contracting activities has contributed to the growth of these sectors and the resurgence of the Lebanese economy since 1990. No wonder then that its corporate clients list boasts the top names across industries and services in Lebanon. Still, believing that an institution should always reinvent itself to meet the needs of a fast changing world, BankMed went through a major restructuring and reorganization campaign between 2006 and 2008. The three banks in the group were consolidated into one entity, where retail banking is being developed into a core line of business in addition to the well-established corporate banking business. Brokerage services, available 24 hours a day, are complementing private banking services, as well as new investments and foreign exchange products are being introduced constantly to meet growing client demand.

Where We Come From

BankMed is a member of a bigger family group that includes major corporate players in various sectors across the region. Chief among them, the Saudi Oger Group, which is a major Middle Eastern financial-industrial conglomerate whose main line of business is in the construction sector, and whose investments include a controlling interest in Trk Telekom via its ownership of Oger Telecom, a leading emerging markets telecommunications companies. At the end of 2008, the Saudi Oger Group had total gross assets of around US$29.7 billion. Other members of the group include MedGulf, a leading insurance provider with strong presence on the regional level.

Where We Are Going

BankMed understands that the globalization of financial services is an irreversible trend and believes, as a result, that regional financial institutions should invest in innovation so that they could meet the needs of a more demanding, global and mobile client base. BankMed comprehends these challenges, hence its continuous adoption of the latest in banking technology, as well as its emphasis on human resources training and development. Carefully calculated vertical integration and well researched horizontal expansion will continue to define BankMeds strategy to create a more successful business enterprise.

Management
Board of Directors
Mr. Mohammed Hariri Mrs. Nazek Audi Hariri Mr. Maroun Asmar Chairman Of The Board Member Member

Mr. Stanislas De Hauss Boncza Member Mr. Hani Fadayel Mr. Nemeh Sabbagh Mr. Basile Yared GroupMed Holding Sal Member Member Member Member

Management
Mr. Mohammed Hariri Mr. Mohamed Ali Beyhum Chairman / General Manager Executive General Manager

Mr. Marwan Abiad Mr. Maroun Asmar

Financial Control, Technology & Central Operations Advisor

Mr. Fouad Baalbaki Dr. Iman Baba Mr. Nadim Barrage Mr. Ameen Bissat Mr. Antoine Boustany Mr. Hatem Chaarani Ms. Diala Choucair Mr. Saad El Zein Mr. Muhieddine Fathallah Mr. Fadi Fleihan Mr. Ziad Ghosn Mr. Adel Jabre Mrs. Dania Kaakani Mr. Ahmad Kanaan Mr. Basil Karam Mr. Mahmoud Kibbi Mr. Mohamad Loutfi Mr. Afif Makkawi Mr. Faten Matar Mr. Samir Mouawad Mr. Fouad Saad Me. Joy Saba Mr. Abdellatif Sidani Dr. Mazen Soueid Mr. Khaled Zeidan

Information Technology Information Security & Business Continuity Special Projects Chief Audit Executive Operations Electronic Delivery Channels & Cards Products Marketing and Communication Corporate Banking Business Development Branch Network & Retail Liability Products Financial Institutions and Trade Finance Treasury Human Resources Remedial Management Retail Banking Administration Institutional Banking Real Estate Advisor Risk Management Advisor Legal Management Financial Controller Market & Economic Research MedSecurities

Regional Managers
Mr. Najib Abu Merhi Mr. Ahmad Hammoud Mr. Raed Jalloul Mr. Mazen Sammak Mr. Antoine Zeidan

Legal Advisors
Me. Aref Mneimneh Me. Fadi Moghaizel

Auditors
Deloitte & Touche

Ernst & Young

Financial Highlights

US$ in Millions

Balance sheet highlights Total Assets

2006 6,524

2007 9,134

2008 9,546

2009 10,585

2010 11,186

Total Loans Total Deposits Total Equity Income Statement Highlights Net Interest Income Commissions & Fees Net Income

1,438 4,727 569 2006 71.7 16.3 3.3 2006

2,059 6,991 734 2007 97.6 26.8 40.2 2007 1,390 63 2007 16.6 N.A 93.0

3,123 7,435 722 2008 175.1 39.1 70.1 2008 1,530 75 2008 N.A 8.3 108.3

3,134 8,183 1,142 2009 180.8 41.0 90.7 2009 1,665 79 2009 N.A 11.8 145.4

3,522 8,806 1,104 2010 195.3 40.5 105.6 2010 1,788 85 2010 N.A 11.1 182.0

Total Staff Number of Branches Key Ratios (%) Capital Adequacy- Basel I Capital Adequacy- Basel II Loan Loss Provisions to Non-performing Loans Not Applicable- N.A

961 47 2006 21.1 N.A 87.3

* 2009 figures are audited

Correspondent Banks
AUSTRALIA Arab Bank Australia Ltd. *

AUSTRIA

Bank Austria Creditanstalt AG

BAHRAIN

Arab Banking Corporation (BSC)

BELGIUM

Fortis Bank NV/SA * ING Bank NV *

CANADA

Royal Bank of Canada *

CHINA

Bank of China Limited

CYPRUS

Bank of Cyprus Public Company Limited* Marfin Popular Bank Public Co. Ltd*

DENMARK

Danske Bank A/S *

EGYPT

Arab Bank plc

FRANCE

BNP Paribas SA * Natixis *

GERMANY

Commerzbank AG * Deutsche Bank AG * Dresdner Bank AG Bayerische Hypo-und Vereinsbank

ITALY

Banca Nazionale del Lavoro SPA Banca UBAE SPA Intesa SanPaolo SpA *

JAPAN

The Bank of Tokyo-Mitsubishi UFJ Ltd * Sumitomo Mitsui Banking Corporation

JORDAN

Arab Bank Plc* The Housing Bank for Trade & Finance *

KUWAIT

Gulf Bank KSC * National Bank of Kuwait SAK

NORWAY

DnB NOR Bank ASA *

QATAR

Qatar National Bank SAQ*

SAUDI ARABIA

Banque Saudi Fransi * Riyad Bank * Saudi Hollandi Bank * The National Commercial Bank * The Saudi Investment Bank *

SOUTH AFRICA

The Standard Bank of South Africa *

SPAIN

Banco de Sabadell SA *

SRI LANKA

People's Bank * Standard Chartered Bank*

SWEDEN

Svenska Handelsbanken AB (publ) *

Nordea Bank AB (publ)

SWITZERLAND

BankMed (Suisse) SA * Credit Suisse * UBS AG *

TURKEY

Turkland Bank AS*

UNITED ARAB EMIRATES

MashreqBank PSC * Standard Bank PLC

UNITED KINGDOM

HSBC Bank plc * Wachovia Bank NA *

USA

American Express Bank Ltd* Bank of New York Mellon* Citibank NA * HSBC Bank USA NA * JPMorgan Chase Bank NA * National Bank of Kuwait SAK, New York Branch * Wachovia Bank NA *

* BankMed maintains Nostro account(s) with those banks.