EARNINGS RELEASE FOR 2013 prior to approval by the General Meeting of Shareholders



The Board of Directors met on March 13th, 2014 and approved the consolidated balance sheet total which amounted to €1.717 million as at 31 December 2013, down 27.4% from 2012. On the same date, the Board of Directors also agreed on the consolidated net profit of €20.2 million for the year ended 31 December 2013, an increase of 14.8% over the previous year.
The share of minority interests amounted to €200,000.

In a persistently unfavourable environment in several respects, U.B.A.F. reports:
 an unstable situation in the MENA region,
 lower short-term and long-term interest rates,
 severe ongoing liquidity constraints,
net earnings in 2013 were higher than in 2012.

Trade financing decreased slightly to €737.5 million.
Deposits linked to commercial activity, especially documentary credits, decreased sharply to €788.9 million, reflecting suspension of trade with certain countries. However, these deposits remain our main source of financing.
The flow of documentary credits declined to €12.8 billion, and stocks fell to €1.4 billion, due to the above-mentioned cessation of some transactions and the difficult situation of some of our counterparties in the Arab world.
Earnings from commercial operations decreased by 4.5% due to lower interest rates and the discontinuation of certain activities. However, commissions on documentary credits increased modestly.
Treasury and securities operations, affected by less favourable financing conditions, showed a significant decrease compared to 2012 when substantial reversals of provisions were made.

General expenses globally declined by 1%, due to tax credits obtained in 2013 and a positive currency impact on expenditures of our Asian units.

The rating downgrades of some counterparties’ countries led us to strengthen our country risk provisions while at the same time the downward trend of the on- and off-balance sheet resulted in a significant improvement in our solvency ratio. The adoption of rigorous liquidity management has enabled us to maintain a regulatory ratio well above the required standard.

The sale of the building housing U.B.A.F.’s head office in December 2013 resulted in a capital gain, contributing to net earnings for the year of €20.2 million despite lower operating income and significant additions to provisions.
The political and economic outlook for some Arab countries remains uncertain.

March 2014

EDITORIAL

U.B.A.F. S.A. is a French registered bank established in 1970. Its shareholders originate from 19 Arab countries along with Crédit Agricole Corporate & Investment Bank. U.B.A.F. activity focuses on financing the trade between Asia, Europe and the Middle East.

With its international network in Asia, in the Arab World and in Europe, U.B.A.F. has become a key player in the area of Trade Finance with Arab countries.

U.B.A.F. is able to meet with the needs of both importers and exporters and to secure the flows of payments and goods from industrial or trade commodity companies.



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