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Disclaimer

Nexx Financial Consultants WLL is authorized as a financial consultant by the Central Bank of Bahrain, and is incorporated under the Commercial Companies Laws No.

21/2001 of the Kingdom of Bahrain.

The information, data and approaches provided herein are an outcome of our research and content expertise. Although we referred to third party materials and analyzed

their impact, however the content is the outcome of NEXX's proprietary knowledge and is rightfully owned by us. This work is copyright protected and legally privileged.

Please do not distribute this presentation without the prior written consent of NEXX Financial Consultants WLL or its authorized affiliates.

NEXX has made best efforts to ensure that this material is complete in its entirety. However, we do not warrant its completeness or accuracy nor do we warrant that the

results obtained will be useful or will satisfy the all requirements.

Copyright © 2015 NEXX Financial Consultants WLL

Nexx Financial Consultants: An introductory presentation

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Contents

Introduction

Our team

1

3

Why us2

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Contents

Introduction

Our team

1

3

Why us2

3

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Nexx is organized in three practice areasEach practice is supported by domain experts

4

Domain ExpertisePractices

Systemic stability

Regulation & Supervision

Governance & Financial

Conduct

Financial Markets

Infrastructure

Corporate Strategy

Organization & Governance,

Compliance & Policy

Finance & Risk

Systems, Applications, Data

& Information Technology

• Supranational institutions

o Financial sector assessment

program

• Central banks

o Financial stability

o Financial Markets Infrastructure

• Regulators

o Banking and Insurance

o Capital markets

Retail Business

Banking

• Retail markets and channels

• Small and Medium Enterprise banking

• Mid-market banking

• Wealth management

Corporate

Investment

Banking

• Originate-to-hold banks

• Originate-to-distribute banks

• Private Equity

• Brokerages & Securities firms

• Asset managers

Regulators &

Infrastructure

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Prudential expertise coverage

Regulators

and Central

Banks

Systemic stability

Regulation & Supervision

Governance & Financial Conduct

Financial Markets Infrastructure

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FS expertise coverage

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CEO &

Board

PMO

CRO & CCO

CFO & Treasury

CIO

Practice

leads

Knowledge

transfer SME

Finance

Domain

SME

Tech

SME

Risk &

Compliance

SME

• Subject-matter expertise

• Access project manager, consulting team or execution capabilities

• Access project content

• Capital budgeting process

• Balance sheet management

• Loan loss measurement

• Prop. Investment management

• Risk diagnostic, development of tolerance framework,

measurement and analytics

• Value analytics: Risk-return framework, Capital and its

management

• Compliance and governance framework design

• Crisis and event response, fire drills

• Business and IT alignment

• Operating model review, re-design and build-out

• Data warehousing and analytics

• RBB: Retail markets and channels, Small and Medium

Enterprise banking, Wealth management

• CIB: Originate-to-hold banks, Originate-to-distribute banks,

Private Equity, Brokerages & Securities firms, Asset managers

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Nexx also offers training courses that help clients accelerate revenue growth or improve functionality standards

Corporate

Investment

Bankers

Central

bankers and

regulators

Retail

business

bankers

Training and knowledge transfer

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The following training topics are offered by our practicesCustomised content and courses can also be organized

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• Regulators and Infrastructure

I. Regulation of banks and risk management in a post-crisis world

II. Banking supervision and capacity building

III. Regulator-mandated stress testing

• Retail business banking

I. Service excellence: Improving productivity at retail branches

II. Small Medium Enterprise: Strategies and channel development

III. Private banking and wealth management: Challenges, opportunities and strategies

IV. Financial Instruments: Practical valuation approaches

V. Developing and parameterizing Retail and SME credit scoring models

• Corporate Investment banking

I. Building a successful sales pipeline: A training for commercial and corporate

bankers

II. Corporate credit origination and structuring

III. Project financing: A best practice approach

IV. Debt capital markets: Warehousing and securitization of loans

V. Equity capital markets: Private Equity valuation and investment

VI. Hedge Funds 360: From theory to practice

VII. Managing the Private Equity risk

VIII. Financial Instruments: Practical valuation

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Contents

Introduction

Our team

1

3

Why us2

9

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Why us?

• The re-shaped consulting landscape features ‘unbundling’ and ‘de-commoditization’ of expertise - giving clients a direct

access to a menu of choices. Nexx’s relationship interface is designed to accommodate this change. We distinguish

ourselves from our peers by offering independent advice and finding a perfect fit between the clients’ needs and our

expertise

• Without an imputed overhead cost of supporting a huge consulting pyramid, the nimbleness of our approach is reflected

in our fee, as our consultants charge weekly, daily or even hourly rates. This benefits our clients as they end up paying

for expert advice only, and not for any other add-ons

• We have organized our service offering in two broad streams:

I. Non-tendered projects stream

a. Access our subject-matter experts: Choose to access deep practitioner’s knowledge of Nexx’s Subject

Matter Eeperts, Partners or Affiliates, who would work seamlessly with your teams

b. Access our project manager, consulting team or execution capabilities: Nexx offers unparalleled project

execution capabilities. Our consultants immediately integrate with Internal Projects teams, remove project

roadblocks and bring control back in the hands of project sponsors

c. Access our project content: Jointly with our affiliates, we have developed project toolkits for over 50 key

projects. These toolkits are organized in three broad themes: regulation self-assessment, best practice

benchmarking and strategic knowledge transfer and can be made available to you remotely

II. Tendered projects stream

a. Access our project pyramid: You want to out-source an entire project by contracting an outside vendor

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Our research - illustrative

Regulation Self Assessment

Best Practice Benchmarking

Self-assessment: Review of Pillar 3

disclosure requirements, issued by

BCBS June 2014

Self assessment: Principles of

effective data aggregation, issued

by BCBS June 2013

Self assessment:

• Basel II Annex 4 – Treatment of

counterparty credit risk and

cross-product netting

• Capital requirements for bank

exposures to central

counterparties

Self assessment: Principles for

an effective Risk-Appetite

framework, issued by FSB May

2014

Self assessment: Risk

Governance and organizational

design

Self assessment: Operational

risk benchmarking – a survey of

major insurance companies

Self assessment: Risk

capabilities and benchmarking

Self assessment: Best practices

in retail risk management

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Prudential projects – a snapshot

Project title Client Description

Financial sector strategy

Phase 1

Minister of Finance,

Gulf government

Established high-level vision for financial services sector

development

Financial sector strategy

Phase 2

Minister of Finance,

Gulf government

Detail specific sector opportunities; develop strategy to establish

‘national champions’ that can flourish in competition with

international players

Integration of regulatory

regimes

Minister of Finance,

Gulf government

Integrated multiple sector-specific bodies to create single

financial services regulator; planned transition to international

standard regulatory regime

Streamlining of regulatory

process

FS regulator, Gulf

government

Advised on streamlining regulatory processes and risk-based

deployment of regulatory resources

Basel II implementation

plan

FS regulator, Gulf

government

Developed approach to Basel II implementation, customised to

local market conditions, addressing both Pillar 1 and 2

Implementation of deposit

insurance system

Asian central bank Design key structural features of deposit insurance, including size

of fund, approach to pricing, asset maintenance, initiation /

transitioning

Financial Sector

Assessment Program

Sub-contracted for FS

regulator

Advised on streamlining regulatory processes and risk-based

deployment of regulatory resources

Regulatory stress testing Central bank, Gulf

government

Developed a top-down, off-site stress testing and provisioning

framework and integrated with Early Warning dashboard of the

key decision-makers

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FS projects examples

Project title Client Description

Optimization of Risk Weighted

Assets

CRO, A Middle

Eastern bank

Main areas of support and development were: built RWA projection

model to highlight severity of constraints, assessed levers to manage

credit RWAs, developed reporting templates, analyzed relative

profitability (return on credit RWAs), and identification of differences

from existing pricing capabilities. Integrated with reverse stress testing

framework

Capital management: Forecasting

loan losses using stress modelling

Chair of the Board,

Gulf bank

The Bank’s management used the insights gleaned from Expected Loss

modelling as the basis to develop a better understanding of the riskiness

of borrow cohorts, credit adjudication, pricing and capital management.

Over the course of a period, this approach allowed the bank to improve

overall credit discipline, improve collections and recoveries.

Strategic IT: Developing Risk Data

Mart

CRO, Gulf bank Framework for the automation of reporting packs, developed process for

data aggregation using metadata framework; developed risk data

governance framework

Strategic IT: Roll-out of rating tools

and development of risk data store

Board, Gulf bank Implementation of a internally developed rating models in a web-enabled

IT platform. Developed modelling data store to capture relevant

customer and facility information, which would allow refinement and

validation of rating tools in the future. Guidance on how to develop

interface of data store with the risk data.

Validation & Refinement of

Corporate Rating Tools and

Implementation in web-enabled

application

CRO, Gulf bank Re-development of new corporate scorecards and implementation into

the CRM system

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Contents

Introduction

Our team

1

3

Why us2

14

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Advisory board

15

Matthew Lord

MD/Founder, Tellthemarket

London, UK

• Oliver Wyman,

• PwC

• Cable & Wireless

• Masters, Organizational

Psychology, University of New

South Wales

David Gibson-Moore

Sr. Advisor, LGT Group Dubai, UAE

• Chief Representative, LGT Bank

• CEO, Robeco Group, ME

• Bachelors and Masters, Natural

Science, Oxford University

• M.Sc. (cum laude), Financial

Economics and Diploma in

Econometrics, University of London

• Chartered Accountant, PwC

Fetooh A. Al Zayani

Sr. Advisor, Board Member

Kingdom of Bahrain

• Regulations

• Business development

• Underwriting

• Insurance/re-insurance

• Chartered Insurance Institute

• Graduate degree, UK

• Organizational design

• Human resources

• Human capital management

• Arab Insurance Group

• Dubai International Financial Centre

Authority

• Qatar Financial Centre Authority

• Corporate Finance

• Investment banking

• Asset management

• Business development

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Practice leaders

16

Sohail Farooq

Practice Leader, CIB

Acting Practice Leader, R&I

• Capital Calibration Partners

• Moody’s Corporation

• Oliver Wyman

• Ernst & Young

• Product structuring, origination and

securitization

• Functional and capabilities expert

• Regulatory compliance

• Systemic risk

• M.Sc. Quantitative Finance, Frankfurt

School of Finance and Management,

Germany,

• MBA, Finance, Rowe School of

Business, Dalhousie University,

Halifax, Canada

Gerry Purcell

Practice Leader, RBB

• Internal Consulting Group

• Boston Consulting Group

• A. T. Kearney

• Retail markets and channels

• Business strategy aimed at

revenue growth, risk and cost

controls

• Implementation of sustainable

business improvements

• B.Comm, University of Toronto,

Canada

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Disclaimer

Nexx Financial Consultants WLL is authorized as a financial consultant by the Central Bank of Bahrain, and is incorporated under the Commercial Companies Laws No.

21/2001 of the Kingdom of Bahrain.

The information, data and approaches provided herein are an outcome of our research and content expertise. Although we referred to third party materials and analyzed

their impact, however the content is the outcome of NEXX's proprietary knowledge and is rightfully owned by us. This work is copyright protected and legally privileged.

Please do not distribute this presentation without the prior written consent of NEXX Financial Consultants WLL or its authorized affiliates.

NEXX has made best efforts to ensure that this material is complete in its entirety. However, we do not warrant its completeness or accuracy nor do we warrant that the

results obtained will be useful or will satisfy the all requirements.

Copyright © 2015 NEXX Financial Consultants WLL

Thank You