In the Name of Allah, The Most Gracious , The Most Merciful

The Almighty, Allah said that: “Say, “You have to work and Allah will see your work with His prophet and

the believers . Then you will be returned to The Cognizant of unknown and the realm and He will tell you about your deeds”

“Quran, Altoba 105”

4

Vision: “To be the first Sudanese bank in banking industry, development and foreign trade”

Mission:“We strive to satisfy all partners and clients through provision of prominent banking products in advanced technology by qualified cadres with dedication to sustainable excellence”

5

PageItem

4Bank Directory ...............................................................................................................

7The bank strategy...........................................................................................................

8Board of Directors .........................................................................................................

9Shariah Supervisory Board ............................................................................................

10Top Management ..........................................................................................................

12Executive Management .................................................................................................

13Indicators of Global Economy during 2017...................................................................

14Indicators of Performance of National Economy during 2017 .....................................

15Classification of Omdurman National Bank in 2017 ....................................................

16Indicators of Financial Performance of the Bank ........................................................

18Report of Board of Directors on 2017 performance in the twenty second general assembly meeting ..........................................................................................................

21Shariah Supervisory Board Report ................................................................................

22National Audit Chamber Report ..................................................................................

24Statement of Financial Position as at 31/12/2017 .........................................................

25Income Statement of the year ended at 31/12/2017 ......................................................

26Statement of cash Flow of the year ended at 31/12/2017 .............................................

27Statement of Changes in Equity as at 31/12/2017 .....................................................

28Notes to Financial Statements as at 31/12/2017 ...........................................................

CoNTeNTS

6

Omdurman National Bank was founded as a joint stock company in January 1993 and the bank commenced its activities in August 1993 by providing all types of banking and investment services that comply with the principles and norms of Shariah law. The Bank is considered as the most important and main pillar of the national economy in the field of banking, investment and external trade through a network of correspondents that spread all over the world. The bank`s most important objectives:

Collection and mobilizing Sudanese peoples` savings inside and outside Sudan.Financing the internal and foreign trade operations and activation of cross relationships with the international banks and financial institutions.Financing of private sector.Contribution to financing the different economic sectors and investment portfolios.Contributing effectively to the social responsibility and support of the state efforts in broadening the microfinance base and social-oriented finance as well as supporting artisans and small producers.Deepening and development of Islamic financing formulas.Financing projects of the economic development in the fields of mining, agriculture, industry , transportation and different infrastructural projects.

The Bank Memberships in Institutions and Unions: The bank is prominent for its memberships in many local, regional and international institutions and unions. The most important of these institutions and unions are:

Membership in Sudanese Banks Union ( SBU)- Membership in the Union of Arab Banks ( UABS)- Membership in Accounting and Auditing Organization for Islamic Financial - Institutions ( AAOIFI).Membership in Islamic Financial Services Board ( IFSB)- Membership in Sudanese Banking Deposits and Savings Fund (BDSF).- Membership in SWIFT network.- Membership in Association of Development Financing Institutions (ADFIMI)-

Many other regional and international institutions

BANk DIreCTorY

7

operATING BrANCHeS AND SUB-BrANCHeS

The operating branches:

No Branch Country /City key Telephone 1 Khartoum 00249183 789125-789124-777225-7772192 Omdurman 00249187 455307-4548953 Port Sudan 00249311 826091-8208704 Elgeyada 00249183 795231-7794419- 795230 5 ElGadaref 00249441 843302-8400826 El Obeid 00249611 8237407 Sinnar 00249561 8244588 ElSaggana 00249183 467784- 488322- 4629519 AlDamazin 00249551 822081-82206410 Nyala 00249711 837068-83254911 AlSoug Almahali- Khartoum 00249183 431790-431791- 43517612 Soug Libya- Omdurman 00249187 594340-58542213 El Mogran 00249183 766909- 766925-76693614 ElSinaat – Bahry 00249185 320677 – 32067815 Atbara 00249211 83292516 Shari Alwadi - Omdurman 00249183 770400-861-86217 Hilat kuku 00249183 770400-815-81618 Medani 00249183 770400-640-64119 Kosti 00249183 770400-409-41020 Rabuk 00249183 770400-420—42121 Mohmed Najeeb 00249183 770400-620-32122 Bahry-alsoug 00249183 770400-310-31123 Shari Obeid Khatim 00249183 770400-82-82124 Alkalakla 00249183 770400- 780-78125 Kassala 00249183 770400 – 650-65126 Sudan University 00249183 770400 -325-32627 Gubra 00249183 770400 – 530-531

The operating sub-branches:

No Sub-branch City key Telephone 1 Ma`ashien Tower / Elgeyada 00249183 770400-3502 Southern market/ Nyala 00249183 770400-737

3 Sea Ports Corporation/Port Sudan 00249183 770400-563

4 Almen’a Alganoubi Branch 00249183 770400-5635 Alanagreeb market window 00249183 770400-8506 Soug lybia Window 00249183 770400-7597 Giad Window-khartoum 00249183 770400-2638 Alsouqe Almahli 00249183 770400 - 7209 Souqe Alwehda alhajyousif 00249183 770400 - 830

8

MAp of GeoGrApHICAl SpreAD of BANk BrANCHeS

Khartoum

Portsudan

Elgadarif

Elobied Sinnar

EldamazinNyala

Capital BranchesKhartoum1Omdurman2Elgeyada3ELsaggana4Elsouq Elmahali5Souq Libia6Elmogran7Elsina’at -Bahry8Bahry-alsoug9Shari Alwadi . Omdurman10Hilat kuku11Mohmed Najeeb12Shari Obeid Khatim13Sudan University14Alkalakla15Gubra16

The States BranchesPortsudan1Elgadarif2Elobied3Sinnar4Eldamazin5Nyala6Atbara7Medani8Kosti9Rabak10Kassala11

(16 Branches)

Atbara

Kassala

Medani

Kosti Rabak

9

THe BANk STrATeGY : The bank`s strategy aims to realize its mission in contributing strongly in building its country based on its people`s inherited civilization and values to realize its objectives. Also, the strategy aims to achieve the vision of the bank for providing its client with distinct banking services in order to meet the ambitions of depositors, investors as well as shareholders. In this course, the bank will use the best banking technologies and instruments that will be offered through qualified cadres foreseeing brighter future for Sudan. The most important features of the bank strategy are as follows: 1. Commitment to adjust the bank various activities by the principles and provisions of Islamic Shariah .2. Using the latest available banking technological systems to improve and promote the quality level of the provided banking services and satisfy its clients.3. Developing the skills and the experiences of the human capital through continuous training and capacity building.4. Optimizing the use of resources to increase the income, maximizing revenues and maintain low cost rate.5. Strengthening and expanding the bank`s external relationships.

THe BANk`S fUTUre plANS: 1. The bank looks forward to continue focusing on developing the banking technology through completing the phases of introducing the new electronic banking system so as to cope with the modern banking industry.2. The bank strives to incur sustainable improvement in the banking services quality and the levels of clients satisfaction3. The bank is working to maintain its pioneering position in the Sudanese Banking sector in terms of capturing the lion`s share of assets , deposits and financing.

10

BoArD of DIreCTorS

Dr. Sabir Mohamed HassanDeputy Chairman

Dr. Abd elrahman Moh. Dirar Chairman

11

Mr/ Mohammed AlHassan Alssanossi Member

Mr/ Abd Elmohsin Abd Elbagi SiragMember

Dr / Abdelhameed Mohammed Jameel (GM)Member and reporter

Mr/ Yahia Osman AliMember

Mr/ Isameldin Khalid BasheerMember

Mr/ Mohammed Ahmed Haj MajidMember

Mrs . Amna Merghani Hassan AltoumMember

Mr/ Mohammed Alhassan AbdallaMember

BoArD MeMBerS

Shariah Supervisory Board 1- Dr. Ahmed Ali Abdalla – chairman.2- Mr . Mukhawi Mudawi Mukhawi – Deputy Chairman3- Dr. Ali Abdalla Mohammed AlHusein – Member

Legal advisor : Ustaz . Hashim Abubakr ElGaaliTechnical advisor: Prof/ Awad Haj AliLegal auditor: National Auditor ChamberBoard of Directors` Secretary General : Mr. Ahmed Anwar GasimThe Compliance Manager: Dr. Ayman Mohammed ALAmin Abdalla

12

Dr. Abdelhameed Mohammed Jameel

GeNerAl MANAGer

Top MANAGeMeNT

13

Mr. Yahia Mohamed Mukhtar

Deputy General Manager

Assistants General Manager

Mr. Ahmed Albasheer Moh. AhmedAssistant G.M for Operations

Mr. Mohammed Alamin Alhaj AlhusseinAssistant G.M for Policies &

Administration

14

exeCUTIVe MANAGeMeNT

Directors of Departments: No Director Department 1 Mr. Ahmed Elbasheer Mohamed Ahmed Correspondent banking and treasury 2 Mr. Abdalla Khogali Mohammed Elfaki Technology Projects Unit3 Mr. Hussein Mohammed Ali Omer Human Resources Development4 Mr. Nuraldeen Ahmed Mohammed Abdelmajeed Risk Management5 Mr. Faisal Mahmoud Abdalla Ahmed Administrative Affairs6 Mr. Mohammed Abdalla Ali Alshier Information technology 7 Mr. AlBager Mohammed Abdalkarim Internal Audit8 Dr. Atif Alsheikh Ali Mohammed Marketing 9 Mr. Isamedin Abdelrahim Ibrahim Finance and Credit10 Mr. Isamedin Abu Aleizeib Abu Central Operations 11 Mr. Abdulaziz Hassan Mohammed Ahmed Kareiri Systems and Development12 Mr. Khalfalla Saeed Mohammed Ahmed Financial Affairs13 Mr. Osama Mohammed AlKheir Okasha Legal affairs 14 Dr. Mohammed Hussein Abdulrahman Hashim Planning and Quality15 Mr. Ihab Mohammed Osman Executive Office

The Branches Managers: first: khartoum state Branches:

No Manager Branch 1 Mr. Osamas Abdulrahman Ali Mohammed Khartoum 2 Dr. Omer Hassan Ahmed Hassan Soug Almahali-Khartoum3 Mr. Amir Hassan AlBasheer AlHassan Elgeyada4 Mr. Mubarak Daffalla Nussar El Mogran5 Mr. Moawia Ahmed Hussien Omdurman6 Mr. AlMahdi Abbakr Mohammed Daleel Soug Libya- Omdurman7 Mr. Mohammed AlHassan Abdelghani ElSinaat – Bahry8 Mr. Abdulrahman Mohammed Babiker ElSaggana9 Mr. Abdelhafeez Mohammed Mohammed Kheir Shari Alwadi- Omdurman10 Dr. Anas Osman Hassan Malik Hilat kuku11 Mr. Imadeldin Merghani Alnier Mohammed Najeeb12 Mr. Salih Mohammed Abdalla Bahry-alsoug13 Mr. Abdufatah Alawad Alhassan Shari Obeid Khatim14 Mr. Abdulrahim Babiker Abdulrahim Alkalakla15 Mr. Ayman Mohammed Alamin Abdalla Gindeel Sudan University16 Mr. Osman Mohammed Alazurag Gubra

Second: other states Branches:No Manager Branch 17 Mr. Mohammed Onour Mohammed Ismaeel Port Sudan18 Mr. Faris Hassan Albnna Kuku AlDamazin19 Mr. Omer Mohammed Ahmed Abdalla Atbara20 Dr. Hassan Abdalwahab Mohammed Nyala21 Mr. Mohammed Haroon Idriss Adam El Obeid22 Mr. Tajeldeen Ibrahim ElSheikh ElGadaref23 Mr. Hajo Mohammed Hajo Mohammed Sinnar24 Mr. Omran Abdalla Abdelrahim Medani25 Mr. Izzaldin Ali Mohammed Alhaj Kosti26 Mr. Mohammed Abdelgadir Mohammed Rubak27 Mr. Alzubeir Idriss Mohammed Ali Kassala

15

INDICATorS of GloBAl eCoNoMY DUrING 2017

The growth rate of the global economy during the year 2017 was 3.7% compared to 3.2% in 2016. Economic activity in the advanced economies recorded a remarkable progress of 2.3% in year 2017 compared to 1.67 in 2016. Brazil’s GDP grew by 1.1% in 2017 compared with a decline of -3.5% in 2016 and Russia by 1.80% in 2017 compared with a decline of -0.6% in 2016 China recorded growth of 6.8% ), India (6.7%), China (6.8%), the largest growth expected in 2017. The countries of the Middle East, North Africa, Afghanistan and Pakistan recorded growth (2.5) in 2017 Compared to (4.9) in 2016.The countries of trade cooperation with Sudan in the field of foreign trade and investment witnessed a variation in growth rates. According to country The trade with Turkey rose to 5.1% while it declined with UAE, Egypt and Japan, while Saudi Arabia recorded the lowest growth rate of 1%.The Arab Free Trade Zone witnessed an average growth rate of 4.8% in 2017 compared to 1.8% in 2016 while the average inflation rate increased from 4.9% in 2016 to 8.1% in 2017.The COMESA region has an average growth rate of 6.7% in 2017, the highest growth rate achieved by the State of Libya with a growth rate of 55.1% followed by Ethiopia with a growth rate of 8.5%.The International Trade: The international trade grew in 2017 by 4.7% compared to 2.5 % in 2016. The imports of the developed economies increased by 4.1% in 2017 compared with 2.5% in 2016 . Also, the economies of the emerging markets and developing economies increased by 3.2% in 2017 compared to 5.9% in 2016. prices of oil and raw Materials: The oil barrel prices in US Dollar for Brent crude oil of the United Kingdom, Fatih .Dubai and Western Texas Intermediate reached $ 52.7 US Dollar for a barrel in 2017 , compared to $ 42 US Dollar in 2016. Whereas the consumer goods in the advanced economies registered change rate of 1.7% in 2017 compared to 0.8% in 2016. For the economies of emerging markets and developing economies the change rate registered is 4.1% in 2017 compared with 4.3% in 2016.Global primary commodity prices are expected to rise in the next year, especially oil prices which expected to reach 65$ by the end of this year . due to strong demand and oil producer discipline, Metal prices will rise by 9% this year pushing by rising in demand and supply constraints.Energy prices, including oil, natural gas and coal, are expected to rise by 20 percent in 2018.The metals index is expected to rise as the 9% fall in iron ore prices is offset by an increase in the prices of all base metals, led by nickel, which is expected to rise by 30%. Average oil prices are expected to reach $ 65 a barrel during 2019 as well.Precious metal prices are expected to rise by 3% this year in anticipation of higher US interest rates and inflation.Agricultural commodities, including food commodities and raw materials, are expected to rise by more than 2 percent this year due to reduced crop growth, and weather disturbances are expected to be at its lowest level.

Sources : * world Bank * International Monetary Fund

16

Sources : * world Bank * International Monetary Fund

INDICATorS of perforMANCe of NATIoNAl eCoNoMY DUrING 2017

The year 2017 witnessed a number of economic changes at the local and regional levels that had a major effect on the Sudanese economic indicators. The most important indicators are as follows: Gross Domestic product (GDp):According to the data of International Monetary Fund (IMF), Sudan economy incurred growth with 5.7% in 2017, compared to growth rate of 3.1% in 2016 the productive sectors grew despite the decline in oil exports and the decline in the proceeds of gold exports. Inflation Rate: The average inflation rate for 2017 was 32.6% compared to 17.8% in 2016foreign Trade:The Sudanese exports reached $ 4 billion US Dollars in 2017 compared to $ 3.1 billion in 2016. And the imports reached $ 9.2 billion in 2017 compared to $ 8.3 billion in 2016.The Monetary indicators and exchange rate: The money supply at the end of 2017 reached SDG 203 billion compared to SDG 120 billion at the end of 2015The average exchange rate of the European currency (Euro) in December 2017 was SDG 8.43 compared to SDG 6.89 in December 2016. Also, the incitement system of purchase and selling foreign currency with average exchange rate reaching more than 100% of the official rate.Deposits and finance:The deposits in the Sudanese commercial banks increased to SDG 140 billion at the end of 2017 compared to SDG 68 billion in 2016. The volume of the banking financing reached SDG 103 billion by the end of 2017 compared to SDG 80 billion of finance in 2016.

17

ClASSIfICATIoN of oMDUrMAN NATIoNAl BANk IN 2017

The bank was rated in 2017 , according to the regional and international institutions, in a leading position at the top of the Sudanese banks. This rating included the following:a) Omdurman National bank has been awarded the prize of the First Bank in Sudan in 2017 ,for the third consecutive year and the ninth time since establishment of the so-called prize , by “ The Banker Awards “ magazine that issued by the British Financial Times institution, for possessing the largest assets volume , beside the highest rates of return on ownership equity and net profits as well as the bank`s ability to absorb the crises and overcome the difficulties which may obstruct its march forward.b) Omdurman National Bank has been awarded the prize of the compliant financial institutions in line of the social responsibility of 2017 for the Islamic Banks. This is among 12 Sudanese banks through sessions of Conference and prize of the social responsibility for Islamic Banks in 2017 which held in the Kingdom of Bahrain c) Omdurman National bank has been awarded the Arab prize of the productive families of 2017 as the best Bank that supports and nurtures the productive families for 2017. This competition is organized by Bahrain Kingdom every two years through the Ministry of Labor and Social Development in Bahrain.d) The Omdurman National bank has been awarded the national prize of the productive families for 2017 that is provided annually by Ministry of Social Care and Insurance in Sudan.e) The Omdurman National bank has maintained its pioneer position among the Sudanese banks, occupying the rank no (81) in the list of the biggest Islamic institutions and the rank no (73) in the list of the Islamic banks in the world, and the rank no (1) in the list of the Sudanese Financial institutions according to the rating of (The Banker) of the British Financial Times issue of 2013.f) The Omdurman National bank has maintained its leading position among the Sudanese banks in the list of the Biggest 150 Arab banks according to the rating of the Journal of Arab banks Union for the years 2007, 2008, 2009 , 2010 and 2011. g) The Omdurman National bank has occupied the rank no (81) in the list of the Biggest 100 African banks according to the rating of “ the Banker “ magazine issue of January 2014.h) The Omdurman National bank has occupied the rank no (117) in the list of the first 150 Arab banks in terms of shareholders rights according to the rating of “ Economics and Business “ magazine – Bruit in the issue no 418 of October 2014.

18

Assets Demand deposits

The following table shows the most significant financial indicators:

(Thousands SDG)Description 2012 2013 2014 2015 2016 2017Assets 9,165,359 10,561,174 12,607,097 13,992,164 15,574,165 28,358,964Demand deposits 2,115,397 2,413,425 2,864,531 4,787,312 5,741,962 10,494,701Investment deposits 4,489,368 5,275,374 5,657,779 6,552,219 7,009,359 13,872,458Paid up capital 800,000 800,000 800,000 800,000 800,000 1,000,000Equity 1,121,817 1,217,670 1,306,296 1,469,842 1,615,911 2,143,895Revenues 707,706 714,943 887,073 1,196,336 1,651,733 2,383,067Operating Expenses 118,444 141,016 165,977 212,635 298,006 362,434Provisions 110,580 30,569 75,281 66,303 60,975 120,800Net profits 102,331 166,594 233,050 358,397 434,545 703,485

INDICATorS of fINANCIAl perforMANCe of THe BANk(2012 -2017)

19

Investment deposits Paid up capital

Equity Revenues

Net profits

20

reporT of BoArD of DIreCTorS oN 2017 perforMANCe IN THe 22ND GeNerAl ASSeMBlY

In the Name of Allah the Most Gracious the Most Merciful

Dear brothers..Allah`s peace , mercy and blessing be upon you Praise is to Allah with Whose grace the righteous are done, and utmost peace and blessings be upon the most honourable creature – our messenger, Mohammed and to his family and followers.Honorable brothers..On this bright day , I am fully proud to meet you in our regular 22nd meeting of the bank general assembly to evaluate the performance during the past year 2017, to specify the pros and cons, to enhance the pros avoid the cons stressing our sustainable commitment towards our mission and theme for realization for the vision of this bank`s leadership of the Sudanese banking system in banking industry, development and foreign trade and to continue in the leading position for Sudanese banking system as well as being a model for national institutions in supporting the national economy. Dear brothers..The bank witnessed remarkable progress in its business size and results, continuing its leadership of the Sudanese banks in 2017 as a result of the adoption of an ambitious strategy which took into consideration all the external and internal effects, depending on the same pattern of previous performance with professionalism, institutional control and transparency. In the beginning, please excuse me to summarize the most important financial results achieved by the bank in 2017 which reflects , in all its indicators , a positive growth in all data . And it is the thing that assisted the bank to maintain its pioneer position in the banking system. It is important to mention that the bank managed to realize the objectives of the plan and budget for 2017 with higher performance and praise is to Allah. These indicators are as follows: Firstly: Assets: The Total Assets reached SDG 28.36 billion in 2017 compared to SDG 15.57 billion in 2016, registering a growth rate of 82%. Secondly: Liabilities and investment Deposits: The liabilities in 2017 reached SDG 26.2 billion compared to SDG 13.9 billion in 2016 with growth rate of 88%.The most important liabilities and investment deposits are as follows: 1) Total deposits: The total deposits in local and foreign currencies reached SDG 24.430 billion in 2017 compared to SDG 12.748 billion in 2016 with growth rate of 92%. And this is apparently displayed in the following: 1- current deposits: The total current deposits in 2017 reached SDG 7.9 billion (SDG 7.851 million) compared to SDG 3.9 billion (SDG 3.905 million) in 2016 with growth rate of 102%.2- Saving deposits: The saving deposits increased in 2017 to reach SDG 1.6 billion (SDG 1.605 million) compared to SDG 0.88 billion (SDG 882 million) in 2016 with growth rate of 82%.3- Insurances and margins :The insurances reached SDG 1.04 billion (SDG 1.039 million) in 2017 compared to SDG 0.96 billion (SDG 955 million) in 2016 with growth rate of 9%. 4- Investment deposits ( investors accounts): The investment deposits reached SDG 13.9 billion (SDG 13.872 million) in 2017 compared to SDG 7 billion (SDG 7.009 million) in 2016 with growth rate of 98%.Thirdly: Equity:The equity increased with 33% in comparison to 2016 as it reached SDG 2.14 billion (SDG 2.144 million) in 2017 compared to SDG 1.62 billion (SDG 1.616 million) in 2016. This increase is greatly attributable to increase of the paid-up capital , profits and the reserve. Fourthly: the bank investment activities:The bank continued its special strategy of financing the private and public sectors` companies operating in infrastructural and developmental projects. it has also participated in all financing portfolios which have been

21

executed by the banking system in the fields of agricultural and industrial production and the increase of non-petroleum exports and housing. Besides the finance of micro-finance activity and the finance that has a social dimension.The bank has continued playing its leading role of supporting the national economy, as the size of finance and investment for the various sectors has reached SDG 15 billion by the end of 2017 compared to SDG 10 billion in 2016 registering a growth rate of 50%.The bank continued its special strategy of financing public and private sector companies operating in line of infra-structure and development projects. Also, the bank contributed to all financing portfolios executed by the banking system covering the fields of dwelling , agricultural production , industrial products and increasing the non-petroleum exports. Also, 2017 witnessed execution of several financing agreements for the projects of Railways Corporation, the most important of them is Gezira train that links Khartoum with Medani with cost that exceeds $ US 12.7 million. Also, 2017 witnessed importation of 24 carriages with total cost that exceeds $US 40 million and importing of 1050 cargo carriages with cost that exceeds $US 80 million.as well as financing the project of Digein – Wager road in Kassala state. Beside, the construction of the fourth sector in Omdurman – Bara national road was financed with 100 Km length with SDG 504 million that isin addition to financing the construction of internal roads in a number of states cities.As continuation of the bank major role in financing infrastructure , construction and development projects, the year 2017 witnessed signing the contract of constructing 250 housing units for Merowe dam affected individuals in Albuhaira locality in The River Nile state beside financing the activity of microfinance and social aspect finance. With regard to the finance of the small sectors and productive families, the bank continued its policy of supporting this sector believing that, supporting these segments and helping them to enter the production cycle is the best way for alleviating poverty as well as broadening the base of economic activities to increase the Gross Domestic Production (GDP). In this scope the bank has adopted the expansion of the micro-finance umbrella and activities through focusing on the training of the targeted groups before offering the finance in a shape of consecutive classes in coordination with organizers. Accordingly the bank has held more than (25) training courses during the last five years training more than 2700 persons from the targeted groups of : martyrs` families , military pensioners , widows and groups coordinated with Sudanese Women Union and all were offered the finance. This experience proved to be successful as it is clearly apparent in the improvement of the living standards of the beneficiary families and nearly no default registered.The bank also always uses a notable portion of its finance portfolio in financing other sectors those have social dimension.Fifthly: Gross Income and Net profits (income statement): The bank net profits reached SDG 703 million as at the end of 2017 compared to SDG 479 million in 2016 with growth rate of 47%. These profits were realized as a result of the high revenues accomplished this year reaching SDG 2,383 million before the deduction of the profits of investment deposits at an operating cost rate not exceeding 15% of revenues. Knowing that the international standard of operating cost rate is 35% and this is clearly refers to the effectiveness of the bank in generating revenues and the good management of expenses. And the total cost rate approximately reached 35% in 2017 compared to the international standard rate of 55%. Sixthly : Investment Deposits Profits: The Investment Deposits Profits reached SDG 980 million at the end of 2017 compared to SDG 703 million in 2016. The profits were distributed at the rate of 15% for the long-term deposits and 13.5% for absolute and restricted deposits in local currency compared to 14% , 12.5% consecutively in 2016. Also, profits were distributed at the rate of 6% distributed for the deposits in foreign currency in 2017 , the same as in 2016 ( referring to that the investment deposits size reached SDG 13.9 billion with the rate 31% of the investment deposits in the banking system at the end of 2017.Seventhly: Early warning indicators:The year 2017 witnessed a remarkable stability in the bank rating according to the preventive supervisory standard (CAEL) and the quarterly reports of Central Bank of Sudan. As the bank rank remain stable at “ Satisfactory” level. This is clearly attributed to the apparent stability in the most important element forming the standard ( capital sufficiency – profitability – liquidity – assets quality and defaulting ).Dear honorable brothers The human resource development is the main base and the key of success and accomplishments. So, the board of directors and executive management concentrate on providing an excellent working environment for the staff and on improvement of their performance through the continuous training program inside and outside Sudan. The training opportunities in 2017 reached 1600 ones inside and outside Sudan at the rate of two training courses for an individual.

22

Also, the management has been keen in its policy of granting incentives to the staff, and continuously improving their living and financial standards, as the year 2017 witnessed an increase in the number of promoted employees and increased loans allowed to employees. Also, post- services benefits were cleared out for all staff in order to achieve the job satisfaction , urging them to exert more efforts as well as the activation of the programs of strengthening the social ties among the staff. Dear attendees The year 2017 witnessed implementation of the bank restructuring as one of most important objectives is to cope with banking , financial , managerial and technological development in the banking environment in which the banks operate internally and externally. For central operations department was established as well as establishing a marketing department to support the competitive state of the bank beside releasing a number of marketing products, services and packages. Also, the concepts of renovation in customers relation management was supported and activated for raising the quality of the bank services and then amplifying the revenues to strengthen its financial position and increase the market share.In regard to the bank striving to amplify its market share, the strategy of financial comprehensiveness was implemented as the year 2017 witnessed opening of several branches as Rubak branch in The White Nile state; Shari Mohammed Najeeb branch ; Bahri alsoug branch ; Shari Obeid khatim Branch ; Alkalakla branch ; Sudand University in Khartoum and Kassala in kassala state branches were opened this year also, Gabra branch was opened beside two windows of Soug alanagreeb , soug lybia in Omdurman and a window of Giad tower in Khartoum were opened. More branches in Khartoum state and other states will be opened. Dear attendees In regard to social responsibility, the bank has continued its usual role of the direct support to the needs of the community (individuals and institutions) such as the rehabilitation of education , health , religious institutions. Also, the year 2017 witnessed the onset of the orphan joy project which includes distribution of Eid dress and wears among the orphan children besides, the bank held national festival commemorating the 62nd anniversary of Independence under the theme of “ Dear Country, honoured by your love” to be the first bank celebrating Independence anniversary. Believing in the importance of the youth role in all lines , the bank organized sport sessions for youth and youngsters in a number of states in Sudan. Also, the bank has continued its remarkable activity in the Holly Month Ramadan of daily providing food and beverages to 3000 person during the month in the grand mosques of Khartoum, Khartoum North and Omdurman. Besides, it provides food and beverages to the passerby in the main streets.Dear honorable brothers As culmination to the bank`s accomplishments during 2017, the bank has occupied many advanced positions and ranks in the classifications conducted by the specialized regional and international financial and banking institutions at the regional and global levels. Really, this is a repetition and assurance of the bank pioneer position in the Sudanese banking system. As the bank managed to maintain its leading position in the Sudanese banking system in 2017 obtaining the rank no (1) in Sudan of 2017, according to the classification of “ The Banker” the British magazine in the issue December 2017. also, the bank was awarded the prize of the compliant financial institution in the field of the social responsibility of 2017 for the Islamic banks to be within 12 Sudanese banks in the conference and the prize of Social Responsibility of Islamic banks for 2017 held in Kigdom of Bahrain Dear brothers,Praise be to Allah for these remarkable accomplishments which have been achieved by Allah`s Divine support, and as the result of the joint efforts exerted by shareholders, board of directors, its committees, the top executive management and the staff.Also, we assure that the march of accomplishments will never cease to this limit deeply believing that Omdurman National Bank will continue to be the first choice for clients in Sudan and for outside correspondents banks as well. Finally, we submit our recommendations for your honorable assembly for approval of the Financial statements, the Reports of Board of Directors, National Audit Chamber , Shariah Supervisory Board and legal advisor. Also, we submit our proposal for profits distribution for the year 2017.

On Allah we rely and He leads the righteous wayPeace be upon you

Dr. Abdulrahman Mohammed Dirar Chairman of board of directors

23

In the Name of Allah the Most Gracious the Most Merciful

SHArIAH SUperVISorY BoArD

Rajab 2nnd 1439April 8th 2018

SHArIAH SUperVISorY BoArD reporT of 2017Praise is to Allah – the Generous Patron and pray be to our master, Mohammed peace be up on him and his family Dear shareholders of omdurman National BankPeace and Allah`s blessings be upon youReferring to the foundation order of Shariah supervisory board, the standard of Islamic financial institutions governance and Central Bank of Sudan mandate about appointment of Shariah supervisory board with its responsibilities and reports.The Shariah supervisory board present to Omdurman National Bank general assembly the following report:The responsibility of commitment to the articles of Islamic Shariah and its principles beside doing of all bank daily transactions in accordance with the above is borne by the bank management to be regarded as routine work and executive activity and the board in collaboration with training administration offer the training programs as well as issuance of Islamic consultation “Fatwa”, resolutions and directives that lay the basics of the banking activity and elaborations of its rules. Also, the board issues an independent opinion reflecting its supervision of the bank activities and direct its remarks to realize the goal of serious work to comply with Shariah principles . The board and Shariah superintendent visited all of the bank branches and went over the audit administration report about the correctness of the bank transactions audited by it and the legal affairs about their reviewing remarks result in addition to the certificate of financial administration about spending of illegal earnings ;to charitable activities.Also, the board went over the national auditor chamber report about distribution of profits among the owners of absolute investment deposits and owners` equity beside what appears about the bank Zakat for the fiscal year 2017.So, Shariah supervisory board has come out with the following: 1/ the bank transactions revised by the board in the terminating year on 31/12/2017 were performed according to the Islamic laws and principles. 2/ the realized gains obtained from illegal sources and means were retained as an illegal gains and spent in charitable activities as mandated to. 3/ the Zakat was allocated according to Shariah principles , Zakat law and Zakat Chamber mandate.The board hereby offers its due thanks to the bank administration for its cooperation and commitment to Shariah law and principles. Besides , the due attention of the bank administration paid to encourage te staff to promote their faith and conscience spontaneously. We ask Allah success and welfare to all.

Mr . Mukhawi Mudawi Mukhawi Dr. Ali Abdalla MohmedAlhusain Deputy chairman member

24

NATIoNAl AUDIT CHAMBer reporTAUDITor’S reporT To

SHAreHolDerS of oMDUrMAN NATIoNAl BANk

In the Name of Allah the Most Gracious the Most Merciful

The opinion: We have audited the accompanying financial statements of Omdurman National Bank which consist of statement of financial position as at December 31st 2017, income, changes in owners` equity and cash flow statements for the year then ended and summary of significant accounting policies and other explanatory notes.In our opinion that the enclosed financial statement are authentic and fair representation of the bank financial position as at December 31st 2017, beside its financial performance and cash flow for the year then ended in accordance with international financial reporting standards and accounting standards issued by Auditing Organization for Islamic Financial Institution and in compliance to laws and by-laws.The basis of opinion: We conducted our audit in accordance with International Standards on Auditing. Our responsibility in light of these standards will lately be mentioned under the article of Auditors` Responsibility about financial statements audition. Our independence required us to be restricted to the professionalism principles according to standards and international auditing profession ethics as well as the ethical prerequisites relevant to financial statement audition. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.Governance body and Management`s responsibility for the financial statement: Management is responsible for the preparation and fair presentation of these financial statements in accordance with international financial reporting standards and accounting standards issued by Auditing Organization for Islamic Financial Institutions. This responsibility also includes maintaining appropriate internal control and monitoring system, in accordance with what is determined by management relevant to the preparation and fair presentation of financial statements that are free from material misstatement , whether due to fraud or error.In preparing those statements , the management will be responsible for evaluating the extent of the bank capability to proceed sustainably and reveal , if it is possible, the relevant items of sustainability. This is in addition to use the sustainability principle otherwise , the management intends to liquefy the bank or cease working or in absence of actual alternative for the management to adopt. The responsibility of the governance body is supervising the process of the bank financial report preparation. Auditors` responsibility: Our objectives are acquiring reasonable assurance about whether the financial statements as whole are free from material misstatement , whether due to fraud or error. And issuing a report that reflects our opinion. The reasonable assurance represents high degree of assurance but not enough guarantee that auditing was performed in accordance with International Standards on Auditing, as material misstatements may often be discovered when found. Errors can happen as a result of fraud or mistake and they are considered material if they are individual or collective and expected to impact the user economic decision made arising from these financial statements. As a part of auditing and according to those international standards, we perform the professional judgment maintaining the professional skepticism attitude throughout the auditing process. Also, we have performed the following:- Determining and evaluating risks and material misstatements found in the financial statements , whether

25

resulted from fraud or error. And design and executing auditing procedures to deal with such risks and obtaining sufficient and appropriate evidences to provide the basis for stating our opinion. The danger of not discovering the material misstatements resulted from fraud is higher than error misstatement. For fraud misstatements can entails fraudulence, intended deletion, conspiring, misleading notifications or surpassing the internal audition procedures.- Understanding the relevant internal audition so as to design appropriate auditing procedures for current conditions. - Assessing the extent of accounting policies appropriateness and the reasonability of accounting estimates and relevant disclosures performed by the management.- Judging the extent of appropriateness in management using of accountancy sustainability principle. That is raised from the auditing evidence we obtained. Whether there is material non-assurance related to events or circumstances that may raise material skepticism about the bank capability to proceed sustainably in its activity according to sustainability principle. If we deduced that there is material non-assurance, we ought to remark ,on our report, to the relevant disclosures stated on the bank financial statements. If these disclosures are not sufficient, we ought to amend our opinion. Our judgments depend on the auditing evidence obtained up to our report date. Moreover, the future events and circumstances may lead to cessation of bank to proceed sustainably in its activity according to the sustainability principle.- Evaluating the general objective, structure and content of the financial statements including the financial notes, whether they exhibit transactions and events in a fair manner. - Obtaining sufficient auditing evidences for the commercial activities inside the bank , in order to formulate our judgment about them in the financial statements. We are responsible for directing and supervising and performing auditing processes for the bank and we remain just responsible for our opinion in auditing. We notify the governance body about , among other issues, the scope and time of auditing plans and its important results including any defects in the internal monitoring system that were discovered during our auditing. auditing One of notices reached with the governance body that we determined the most important notices during auditing the current financial statements. And depending on that , we consider them as important notices about auditing processes. We describe these notices in our report. Except in case there is a law or by-laws preventing publicly disclosing these notices or in case that , in rare exceptional conditions, disclosing notice must not mentioned in our report for the impacts from that may harm the goals of public interest of disclosing.

AlTahir Abdulgaioom Ibrahim FCCAGeneral AuditorThe Republic of SudanKhartoum Date: 16 Ragab 1439April 3rd 2018

26

STATeMeNT of fINANCIAl poSITIoN AS AT 31/12/2017 (SDG)

Dr. Abdelrahman Mohammed DirarDr. Sabir Mohammed Hassan Dr. Abdelhameed Mohammed JameelChairmanMember of board of directorsGeneral Manager

Item Notes 31/12/2017 31/12/2016 AssetsCash and Cash equivalent (3) 12,788,758,326 5,700,516,357Sales receivables (4) 9,244,604,131 4,685,237,092Short term investments (5) 3,609,947,730 4,012,808,218Long term investments (6) 327,941,154 280,416,673Other assets (7) 1,436,385,785 497,844,521Under execution assets (8) 9,531,799 54,739,368Net fixed assets (9) 941,795,317 342,602,731Total assets 28,358,964,242 15,574,164,960Liabilities and Equity of unrestricted investment accounts holders and owners `equityLiabilitiesCurrent accounts (10) 7,850,988,822 3,905,263,999Saving accounts (11) 1,605,086,618 881,644,687Accounts payable (12) 1,785,366,786 1,446,729,159Other liabilities (13) 1,101,168,294 715,257,319Total liabilities 12,342,610,520 6,948,895,164unrestricted investment accounts (14) 13,872,458,230 7,009,358,542Total liabilities and unrestricted investment accounts 26,215,068,750 13,958,253,706

Owners` equity:The authorized capital (1.2 billion SDG)Paid up capital (15) 1,000,000,000 800,000,000Reserves (16) 503,840,673 381,365,780Retained profits 640,054,819 434,545,474Total owners` Equity 2,143,895,492 1,615,911,254Total liabilities, unrestricted investment accounts and owners `equity 28,358,964,242 15,574,164,960

Contra Accounts (17) 7,902,590,373 6,531,169,951

The attached notes from no1 to no 25 forms an integral part of financial statements

27

INCoMe STATeMeNT of THe YeAr eNDeD AT 31/12/2017 (SDG)

Dr. Abdelrahman Mohammed DirarDr. Sabir Mohammed Hassan Dr. Abdelhameed Mohammed JameelChairmanMember of board of directorsGeneral Manager

The attached notes from no1 to no 25 forms an integral part of financial statements

Item Notes 31/12/2017 31/12/2016Income:Sales receivables revenues (18) 1,230,253,522 877,036,510Short term investments revenues (19) 450,008,712 387,999,665

1,680,262,234 1,265,036,175Minus : unrestricted investment accounts revenues 980,000,000 703,000,000

Bank share of investment revenues ( as speculator and capital owner) 700,262,234 562,036,175

Bank own investment revenues (capital contributions) 791,002 34,674

Banking services revenues (20) 543,588,161 252,491,085Profits of foreign currency trade 143,581,517 126,037,589Other revenues (21) 14,844,253 8,133,176Total revenues 1,403,067,167 948,732,699 Minus : Expenses:Employees` expenses (22) 220,133,881 214,921,891General expense (23) 142,299,632 83,084,165Depreciation provision 23,810,673 15,361,386 Provisions (24) 120,799,613 60,975,000Central Bank of Sudan penalties 52,000 109,750Total Administrative and general expenses 507,095,799 374,452,192Profits before zakat and tax 895,971,368 574,280,507Minus : Year Zakat 28,940,747 28,882,898Minus : Year tax (25) 163,545,692 66,049,334Net profit 703,484,929 479,348,275

28

STATeMeNT of CASH floW of THe YeAr eNDeD AT 31/12/2017 (SDG)

Dr. Abdelrahman Mohammed DirarDr. Sabir Mohammed Hassan Dr. Abdelhameed Mohammed JameelChairmanMember of board of directorsGeneral Manager

Item Notes 31/12/2017 31/12/2016Cash flow from operationsNet income 703,484,929 479,348,275Adjustments to reconcile net income from net cash resulting from operating activities:-Depreciation of non-current assets 23,810,673 15,361,386Provisions of doubtful debts 39,358,711 1,500,000Provisions of post service 2,000,000 58,336,492Provisions of post service paid (1,321,355) (213,813,503)Provisions of zakat 28,940,747 28,882,898Provisions of tax 163,545,692 66,049,334Zakat paid (28,882,898) (27,065,288)Tax paid (66,049,334) (25,767,119)Provisions for unrestricted investment accounts 980,000,000 703,000,000Profit paid to unrestricted investment accounts holders (716,366,835) (596,571,536)

Previous years Settlements (126,967,521) (251,265,132)Gains from sales of non-current assets (3,177,578) (2,637,794)Net cash flow provided by operations 998,375,231 235,358,013Cash flows from investment activitiesPurchase of non-current assets (571,212,282) (94,859,248)Proceeds of sales of non-current assets 4,315,231 2,741,352increase in under execution assets (7,721,060) (48,680,034)Increase in sales receivables (4,578,838,623) (383,750,251)Increase /decrease in short term investments 402,860,488 (372,778,779)Increase / decrease in long-term investment (15,285,208) (1,000,000)Net cash flow from investment activities (4,765,881,454) (898,326,960)Cash flow from financing activitiesIncrease in unrestricted investment accounts 6,863,099,688 457,138,991Increase in current and saving accounts 4,669,166,754 1,267,458,595Cash distributed among stakeholders (100,659,570) (104,000,000)increase / decrease in payables 338,637,626 (304,946,065)Increase in other liabilities 24,044,958 23,229,224Increase in other assets (938,541,264) (212,699,240)Net cash flow from financing activities 10,855,748,192 1,126,181,505Increase in cash and cash equivalent 7,088,241,969 463,212,558Cash and cash equivalent in the beginning of the year 5,700,516,357 5,237,303,799

Cash and cash equivalent at the end of the year 12,788,758,326 5,700,516,357

The attached notes from no1 to no 25 forms an integral part of financial statements

29

STAT

eM

eN

T o

f C

HA

NG

eS

IN e

QU

ITY

AS

AT 3

1/12

/201

7 (S

DG

)

Dr.

Abd

elra

hman

Moh

amm

ed D

irar

Dr.

Sabi

r Moh

amm

ed H

assa

n D

r. A

bdel

ham

eed

Moh

amm

ed Ja

mee

lC

hairm

anM

embe

r of b

oard

of d

irect

ors

Gen

eral

Man

ager

Des

crip

tion

Paid

-up

capi

tal

Res

erve

sR

etai

ned

profi

ts/

loss

To

tal

Lega

l In

vest

men

tsre

serv

eR

eval

uatio

n of

fixe

d as

sets

Bal

ance

as a

t 31/

12/2

015

800,

000,

000

95,4

55,6

2798

,892

,886

117,

096,

660

358,

397,

158

1,46

9,84

2,33

1C

ontri

butio

ns re

valu

atio

n(1

04,0

00,0

00)

(104

,000

,000

)So

ld F

ixed

ass

ets

21,9

85,7

8021

,985

,780

Settl

emen

ts o

f pre

viou

s yea

rs

(251

,265

,132

)(2

51,2

65,1

32)

Net

yea

r pro

fit47

9,34

8,27

547

9,34

8,27

5

Tran

sfer

red

to le

gal r

eser

ve47

,934

,827

(47,

934,

827)

-B

alan

ce a

s at 3

1/12

/201

680

0,00

0,00

014

3,39

0,45

412

0,87

8,66

611

7,09

6,66

043

4,54

5,47

41,

615,

911,

254

Cas

h di

vide

nds f

or st

akeh

olde

rs(1

00,6

59,5

70)

(100

,659

,570

)C

ontri

butio

ns re

valu

atio

n52

,126

,400

52,1

26,4

00M

ater

ial d

ivid

ends

for

stak

ehol

ders

200,

000,

000

(200

,000

,000

)-

Settl

emen

ts o

f pre

viou

s yea

rs(1

26,9

67,5

21)

(126

,967

,521

)N

et y

ear p

rofit

703,

484,

929

703,

484,

929

Tran

sfer

red

to le

gal r

eser

ve70

,348

,493

(70,

348,

493)

-B

alan

ce a

s at 3

1/12

/201

71,

000,

000,

000

213,

738,

947

173,

005,

066

117,

096,

660

640,

054,

819

2,14

3,89

5,49

2

The

atta

ched

not

es fr

om n

o1 to

no

25 fo

rms a

n in

tegr

al p

art o

f fina

ncia

l sta

tem

ents

30

NoTeS To fINANCIAl STATeMeNTS AS AT 31/12/ 2017Note no. (1)foundation and activity:Omdurman National Bank was founded in January 1993 as a public limited company with limited responsibilities according to Sudanese Companies Law of 1925 and the bank commenced its activities in August 1993 by providing all types of banking and investment services that comply with the principles of Islamic Shariah Law.The bank is one of the pioneering national institutions and the main pillar of the Sudanese economy in the field of banking, investment, development and foreign trade through its wide network of correspondents that spread all over the world.The bank performs its banking activity through the headquarter and its branches spread all over Sudan – fifteen of them in Khartoum state, in addition to eleven branches in other states as well as five sub-branches.The Authorized Capital: one billion and two hundred million SDGThe Paid-up capital: SDG 1 billionThe Bank`s most important objectives: Mobilizing and taking the clients` savings from all over Sudan and attraction and reception of Sudanese expatriates` savings.Financing the projects of economic development, mining sector , productive sectors as well as foreign trade operations. Support and financing micro-finance and micro-micro-finance sector of the social aspects as well as cooperatives and sectors of artisans and other professionals..Providing the social and cooperative support for the state employees and pensioners .Striving for realization of social justices and balanced development through establishing branches of the bank in all Sudan states. Establishment of private companies for the bank and contributing to partnership companies with others to support the bank objectivesNote no. (2)The Accounting policiesa) The principles of financial statements preparation:The financial statements are prepared according to the accounting standards adopted that comply with the international accounting standards, AAOIFI and the Central Bank of Sudan mandates. The financial data are prepared according to historical cost principles.b) Transactions with foreign currencies:The bank accounts are opened in Sudanese pound (SDG). The other foreign currencies are recorded during the fiscal year by applying the exchange rate prevailing at the value date. The assets and liabilities in foreign currencies are reported in the financial statements as at 31/12/2017 at the exchange rate of $1= SDG 8.9343 , Euro 1 = 10.7143 SDG, SAR 1 = SDG 2.3821c) The revenues and expenses:They are recognized in accordance with the accrued basis and the revenues from the different sales receivables` operations (Murabaha , Mogawala, installment sale , and securities are recognized in accordance with the accrual basis. Musharaka and Mudaraba revenues are recognized on the actual cash basis according to AAOIFI standards.The revenues and expenses are recorded at the average exchange rate of the foreign currency plus the incitement price announced by the Central Bank of Sudan. d) The fixed assets depreciation:The fixed assets are depreciated according to the fixed installment and the depreciation of the added assets acquired during the year is monthly calculated since activation date at the annual depreciation percentage applied for the variable fixed assets.e) The inventory: The inventory is evaluated by the end of the fiscal year at the cost price.f) The classification of financial statements of 2016 has been readjusted in order to be in consistence with the financial statements of 2017 in accordance with the standards of AAOIFI.g) the principles of distributing the profits of investment accounts holders:The share of investment accounts is determined from the profit according to contribution size in finance portfolios through balance rate method and account numbers , then a percentage is subtracted from the profits for the stakeholders interest as an administrative margin in equivalent to the effort of the bank for exercising finance operations management and as “Mudarib” agent.

31

Note no. (3) :Cash and cash equivalent (SDG)

Item 31/12/2017 31/12/2016Cash in hand in local currency 373,870,000 108,499,495Cash in hand in foreign currencies (equivalent in local currency) 67,461,175 71,141,593

Balance of the current account with the Central Bank of Sudan ( in local currency) 1,576,564,562 425,760,189

Balance of the current account with the Central Bank of Sudan in foreign currency (equivalent in local currency) 8,186,838,649 3,809,656,867

Balances of the current accounts with correspondents in foreign currencies (equivalent in local currency) 667,589,980 470,857,372

Cash margin accounts with correspondents in foreign currencies (equivalent in local currency) 464,290,550 36,948,355

Legal reserve in local currency 1,013,068,364 370,526,708Legal reserve in foreign currency 439,075,046 407,125,778Total 12,788,758,326 5,700,516,357

Note no (4):Sales receivables: (SDG)

Item 31/12/2017 31/12/2016Murabaha 4,796,462,610 2,070,798,018Salam 14,098,494 11,516,993Mogawala 6,539,206,879 3,526,735,716Installment sales 256,387,172 344,759,259

11,606,155,155 5,953,809,986Minus : profits of postponed sales (2,120,401,247) (1,112,331,761)

9,485,753,908 4,841,478,225Minus: provision of doubtful and bad debts (241,149,777) (156,241,133)Total 9,244,604,131 4,685,237,092

32

Note no. (5) Short– term investments: (SDG)

Item 31/12/2017 31/12/2016Investments in securities ( shahama + sarah + shihab ) 1,855,527,500 1,855,527,500Investments in securities (shasha +shama) 1,265,032,500 1,286,074,000Investment deposits of local banks and correspondents in foreign currency equivalent to local - 94,695,000

Mudaraba 21,387,848 20,959,181Musharaka 77,895,020 108,500,027Igara 5,764,429 3,341,603Finance portfolios 345,329,612 611,832,180Ghard Hassan 4,158 45,244Confiscated credits 12,760,056 53,503,302Confiscated letters of guarantee 24,896,799 33,703,443Debt transfer 90,086,152 117,443,985Goods against obligations 24,386,501 13,588,820

3,723,070,575 4,199,214,285Minus : provision of finance risks (113,122,845) (186,406,067)Total 3,609,947,730 4,012,808,218

Note no. (6): Long-term investments (SDG)

Item 31/12/2017 31/12/2016 percent %The bank contribution in Duty Free Shops & Zones Co.Ltd 4,217,260 4,217,260 1%

The bank contribution in Banking Services Co.Ltd 123,658 123,658 1%The bank contribution in White Nile Sugar Co.Ltd 303,314,094 232,889,779 7%The bank contribution in National Agency for Exports Insurance and Finance Co.Ltd 350,000 350,000 1%

The bank contribution in Sudanese Batteries Factory - 19,887,127 0%

The bank contribution in Alhaza Silos and Mills Co.Ltd 18,222,142 21,234,849 17%

The bank contribution in AlMutakhasisa for Medical Insurance Co.Ltd 1,000,000 1,000,000 10%

The bank contribution in Financial and Banking Systems Co.Ltd(FBS) 714,000 714,000 10%

Total 327,941,154 280,416,673

33

Note no. (7):other Assets (SDG)

Item 31/12/2017 31/12/2016Staff Loans 126,978,540 96,522,767Advance under the expected profits 13,963,435 11,315,546 Murabaha under process 560,177,633 106,284,249Securities revenues and other accrued revenues 706,509,915 218,784,432Advance payables – advance expenditures 9,400,860 981,053Current stationeries stores 2,408,259 1,368,968Current publications stores 1,758,944 388,462Current stores / assets 793,994 789,840Direct Electricity purchases 1,307,585 352,176Creditors (7/1) 12,770,163 61,041,229Exchange -- 166-Current the bank H.Q and branches 316,457 15,965Total 1,436,385,785 497,844,521

34

Note no. (8):Under execution assets (SDG)

Item 31/12/2017 31/12/2016Medani Branch establishment project - 4,500,000Close Circuit T.V project - 154,167Obied Khatim Branch establishment project - 10,689,315Rabak Branch establishment project - 10,957,491Bahri Branch establishment project - 7,260,637Kassala Branch establishment project - 10,683,996Alkalkla Branch establishment project - 1,978,425Alamarat Branch establishment project - 2,496,250Sudan University Sub-Branch establishment project - 1,554,242Almadfaia ATM establishment project - 49,120Abageir Window establishment project - 584,765Data center Rehabilitation project - 2,020,221Optical archive project 1,928,394 1,810,739Alsiteen Branch establishment project 60,000 -Investment Portfolios System Project 170,000 -SWIFT network interface development project 892,493 -Omdurman alsoug Window rehabilitation project 912,913 -Soug Lybia Window rehabilitation project 877,740 -Bint Khwailed -Alsinaat Window establishment project 589,028 -New Departments Seating Projects 402,049 -Ministry of Health – ElObied ATM establishment project 118,670 -

Giad Exhibition Window rehabilitation project 572,724 -Auto-service devices purchase project 1,386,420 -Secrecy Devices Development project 198,711 -Ministry of Finance – Nyala ATM establishment project 33,210 -Gubra Branch establishment project 47,291 -Central Network Switch purchase project 1,142,156 -Bank mobile service application project 200,000 -Total 9,531,799 54,739,368

35

Not

e. (9

) :fix

ed a

sset

s )

(SD

G)

Item

Tota

l ass

ets

in

Add

itive

sW

ithdr

awal

Tota

l ass

ets i

n

Depreciationpercent

Sum

of

trans

ferr

ed

depr

ecia

tion

In

Year

de

prec

iatio

n A

dditi

ves

depr

ecia

tion

Excl

usio

n de

prec

iatio

n

Tota

l de

prec

iatio

n on

Tota

l ass

ets

in

1/1/

2017

31/1

2/20

171/

1/20

171/

1/20

1731

/12/

2017

31/1

2/20

17La

nds

146,

932,

520

476,

244,

948

-62

3,17

7,46

8%

00

00

00

623,

177,

468

Bui

ldin

gs63

,598

,523

11,8

76,9

04-

75,4

75,4

272.

5%10

,261

,172

1,58

9,08

066

,031

011

,916

,283

63,5

59,1

44D

écor

of b

uild

ings

87,4

67,6

2549

,492

,143

15,1

8113

6,94

4,58

75%

24,3

01,2

084,

347,

228

522,

374

4,74

429

,166

,066

107,

778,

521

Furn

iture

and

libr

ary

10,1

90,4

945,

991,

192

80,8

6016

,100

,826

10%

3,34

3,84

793

7,03

820

8,17

860

,877

4,42

8,18

611

,672

,640

Air-

cool

ers a

nd re

frig

erat

ors

9,52

0,78

97,

044,

828

115,

220

16,4

50,3

9710

%2,

234,

465

903,

129

168,

213

75,6

453,

230,

162

13,2

20,2

35

Com

mun

icat

ion

appl

ianc

e9,

013,

159

1,27

9,56

96,

619

10,2

86,1

0910

%3,

018,

729

887,

379

44,3

705,

992

3,94

4,48

66,

341,

623

Vehi

cles

and

tran

spor

t mea

ns22

,946

,461

25,3

83,1

282,

331,

021

45,9

98,5

6815

%7,

668,

632

3,07

8,84

21,

494,

571

1,28

5,31

510

,956

,730

35,0

41,8

38eq

uipm

ents

& M

echa

nics

5,16

2,78

89,

767,

337

78,1

9214

,851

,933

10%

1,58

9,19

349

5,33

023

3,49

062

,612

2,25

5,40

112

,596

,532

Safe

kee

ping

& c

abin

ets

2,69

4,36

34,

107,

816

6,80

2,17

95%

1,11

1,24

712

9,39

755

,666

01,

296,

310

5,50

5,86

9M

achi

nes a

nd c

alcu

lato

rs7,

455,

496

7,35

5,15

030

,950

14,7

79,6

967.

5%1,

950,

114

551,

764

211,

148

26,9

772,

686,

049

12,0

93,6

47C

ompu

ters

47,7

03,9

7725

,597

,896

4,17

473

,297

,699

15%

14,6

04, 8

576,

747,

546

1,13

9,89

82,

402

22,4

89,8

9950

,807

,800

Tota

l41

2,68

6,19

562

4,14

0,91

12,

662,

217

1,03

4,16

4,88

90

70,0

83,4

6419

,666

,733

4,14

3,93

91,

524,

564

92,3

69,5

7294

1,79

5,31

7

36

Note no. (10):Current accounts (SDG)

Item 31/12/2017 31/12/2016Current deposits ( in local currency) 6,356,545,366 2,903,746,595Current deposits ( in foreign currency) 1,494,443,456 1,001,517,404Total 7,850,988,822 3,905,263,999

Note no. (11):Saving accounts (SDG)

Item 31/12/2017 31/12/2016Saving deposits ( in local currency) 1,455,581,578 762,949,342Saving deposits ( in foreign currency) 149,505,040 118,695,345Total 1,605,086,618 881,644,687

Note no. (12):Accounts payable (SDG)

Item 31/12/2017 31/12/2016Draft cheques 348,839,338 167,036,384Cash margins against L/cs and L/Gs (local) 24,789,805 16,110,923Cash margins against L/cs and L/Gs (foreign ) 1,013,835,809 938,942,521Trusts on call ( local and foreign) 191,986,801 23,945,352Blocked amounts ( local and foreign) 80,693,687 162,809,533Proceeds of exports and funds devoted for goods imports 46,200,720 106,462,380

Transfers for persons who don’t maintain accounts with the bank 50,627,614 2,820,526

Deposits guarantee fund 13,424,170 10,600,000Correspondent s margins ( local and foreign) 12,452 1,713Exporting companies intermediate bills/ direct payment center 739,469 46,443

SWIFT claims 10,935,020 17,373,103 Other Creditor accounts (12/1) 3,281,901 580,281Total 1,785,366,786 1,446,729,159

37

Note no. (13) : other liabilities (SDG)

Item 31/12/2017 31/12/2016Provision of Profits of investment accounts under distribution 825,061,629 561,428,464

Provision of staff incentives 64,890,902 46,000,000Board of directors remuneration 14,800,000 10,200,000Auditing fees provision 400,000 345,000Zakat provision 28,940,747 28,882,898Tax provision 163,545,692 66,049,334Legal advisor fees provision 1,350,000 930,000End of service benefits provision 1,259,382 580,737Due expenditures provision (13/1) 919,942 840,886Total 1,101,168,294 715,257,319

Note no. (14): Unrestricted investment accounts (SDG)

Item 31/12/2017 31/12/2016Investment accounts ( local) 6,527,610,674 4,018,208,098Investment account ( foreign) 7,344,847,556 2,991,150,444Total 13,872,458,230 7,009,358,542

Note no. (15): paid Capital (SDG)

Item 31/12/2017 31/12/2016 percent to totalCentral Bank of Sudan 845,850,625 676,680,500 84.585%

The National Economic Corporation 73,071,025 58,456,820 7.307%

AlShaheed Organization 34,302,262 27,441,810 3.430%Badaiel Contracting and Construction Co.Ltd 19,566,525 15,653,220 1.957%Shikan for Insurance and Reinsurance Co. Ltd 15,632,550 12,506,040 1.563%Karere Printing and Press Co.Ltd 4,162,725 3,330,180 0.416%Warpharma Pharmaceutical Factory 3,698,212 2,958,570 0.370%Alshajara Trading Complex 1,849,112 1,479,290 0.185%National Pensioners Fund 1,786,575 1,429,260 0.179%Alzubeir Ahmed Alhassan 26,800 21,440 0.003%Sidahmed Hammad Mohammed 17,863 14,290 0.002%Salah Mohammed Mohammed Salih 17,863 14,290 0.002%Mohammed Sanosi Ahmed 17,863 14,290 0.002%Total 1,000,000,000 800,000,000 100%

38

Note. (16): reserves (SDG)

Item 31/12/2017 31/12/2016Legal reserve 213,738,947 143,390,454Reserve of fair value of investment 173,005,066 120,878,666Fixed assets revaluation reserve 117,096,660 117,096,660Total 503,840,673 381,365,780

Note no. (17): Contra Accounts (SDG)

Item 31/12/2017 31/12/2016Banks Liabilities for import L/C’s 6,402,244,685 5,902,426,611Bank Liabilities for letters of guarantee 342,410,074 191,320,148Bank Liabilities for finance contracts 966,858,312 437,423,192Bank Liabilities for bad operations (17/1) 191,077,302Total 7,902,590,373 6,531,169,951

Note no. (18) : Sales receivables revenues (SDG)

Item 31/12/2017 31/12/2016 Return of Murabaha 544,368,655 364,205,220Return of Mogawala 670,481,785 510,965,823Return of Salam 1,557,850 1,865,467installment sales 13,845,232Total 1,230,253,522 877,036,510

Note no. (19): Short– term investments revenues (SDG)

Item 31/12/2017 31/12/2016Return of direct investment ( musharka , mudaraba , others) 6,842,947 22,836,852

Return of portfolios and investment funds 40,401,409 14,575,233Return of investment on securities 402,764,356 350,587,580Total 450,008,712 387,999,665

39

Note no. (20):Banking services revenues (SDG)

Item 31/12/2017 31/12/2016Return of Technical services 4,737,679 3,722,036Return of Cheque books 1,985,461 1,450,689Return of draft cheques & transfers 337,433,528 88,678,966Return of Letters of guarantees 15,338,938 10,987,807Return of Letters of Credit and documentary 179,050,049 143,770,426Ledger fees 3,283,655 2,667,200Other banking revenues (20/1) 1,758,851 1,213,961Total 543,588,161 252,491,085

Note no. (21): other revenues (SDG)

Item 31/12/2017 31/12/2016Return of Means of communication 1,166,330 593,698Return of rentals and storage 1,623,518 1,206,885Commission of Insurance agency 2,223,389 542,675Assets liquidation revenues 3,177,578 2,637,794Return of archives photocopying 2,232 2,449Return of execution of investment operations for other branches 3,356,772 843,710

Return of securities speculation 1,514,733 603Return of SWIFT messages 215,403 76,167Return of variable payment means 1,564,298 2,229,195Total 14,844,253 8,133,176

40

Note no. (22):Staff expenses (SDG)

Item 31/12/2017 31/12/2016Basic salary 25,661,187 19,196,402Livelihood allowance 2,833,225 2,131,671Representation allowance 2,489,604 1,854,876Transition allowance 5,954,485 4,450,150Work nature allowance 8,499,685 6,372,396Children allowance 3,053,231 2,920,165Hospitality allowance 1,254,480 823,400Unified allowance 5,807,962 4,440,422Social allowance 4,784,412 3,758,512Dwelling allowance 6,849,214 5,322,668Staff clothes 23,492,450 17,884,233Holiday expenses 49,807,807 31,424,824Two «Eieds» grants 28,258,189 21,704,617End of service benefits 2,000,000 56,323,153Social insurance 10,953,421 7,166,387Additional wage 5,993,273 4,266,862Labour clothes 2,317,100 1,775,932Medications 20,675,791 15,940,477Technical allowance 1,302,047 1,088,615Hardship allowance 1,287,072 1,078,312Transport expenses 488,911 503,757Responsibility equivalent 335,438 253,818Schools allowance 5,711,202 4,136,786Social cooperation 323,695 103,456Total 220,133,881 214,921,891

41

Note no. (23):General expenses (SDG)

Item 31/12/2017 31/12/2016External missions 8,211,026 3,585,592Internal missions 1,817,570 1,265,498Stationary , equipment and publications 6,145,510 4,239,102Electricity and water 5,161,818 2,820,465Cars , buildings and cash insurance 2,651,193 1,989,679Rents and duties 2,811,455 1,444,227Newspapers and magazines 188,800 132,812Post, telephone , swift and fax 1,704,004 1,145,457Entertainment 1,147,014 1,007,645Alms and donations 6,858,358 3,659,470Social services 6,509,662 4,395,795Portage , transport and staff group transportation 1,625,116 1,254,160Security and guarding 4,876,248 2,488,832Cleaning 3,429,881 2,355,277Commissions paid to banks and cash sorting commissions 692,231 557,217

Advertisement & promotion and media services 19,726,077 13,146,217Publications, books , periodicals , the bank magazine and annual report 303,059 198,005

Consultancy , research and subscription to the financial of Banking institutions 1,387,012 688,342

Legal and courts fees 2,626,926 42,943Board of directors expenses 3,646,022 1,773,936Shariah supervisory board expenses 174,000 48,000External training 15,310,128 4,196,124Internal training 1,993,951 1,584,412Administrative expenses for the new projects 424,489 198,097Maintenance expenses 16,285,639 13,044,764Banking Deposits Guarantee Fund 12,600,000 9,748,362Technical services communication and correspondents` expenditures 7,397,810 4,435,246

Expenses of Foreign currency exportation 3,980,109 7,636Fuel & grease for cars and generators 2,393,860 1,611,567Other unclassified expenses 220,664 19,286Total 142,299,632 83,084,165

42

Note no. (24) :provisions (SDG)

Item 31/12/2017 31/12/2016Staff bonus 64,890,902 46,000,000Bad and doubtful debts provision 39,358,711 1,500,000Board of directors incentives 14,800,000 10,200,000Auditor`s fees provision 400,000 345,000Legal advisor fees provision 1,350,000 930,000End of service benefits provision - 2,000,000Total of provisions 120,799,613 60,975,000

Note no. (25) : Tax (SDG)

Item 31/12/2017 31/12/2016Share of AlShaheed from tax (exempted) 5,609,987 2,265,642Taxes 157,935,705 63,783,692Total 163,545,692 66,049,334