Calculation and Disclosure of the Interest Rate

on Credit Facilities & Deposits Related to Retail Banking

(As required under Qatar Central Bank Circular 40/2013)

1. On credit facilities – the annual interest rate agreed between the bank and the customer is calculated on a monthly basis over 360-day year period.

1.1 Retail Term Loans - are repaid in regular payments or equal monthly instalments over a set period of time. It includes personal, vehicle, mortgage and other loans of similar
nature.

Formula: Example:

Equal Monthly Instalment (EMI)
Where,
= (P x r) x (1 + r) n Total principal loan amount = QAR 100,000
(1 + r) n - 1 Interest rate = 6% p.a.
Number of Monthly instalments = 48 months
P = Principal Loan Amount
r = Annual Interest Rate / 12 EMI = (QAR 100,000 x 6%/12) x (1 + 6%/12)48 = QAR 2,349
n = Number of Monthly Installments (1 + 6%/12)48 – 1

Total Interest = (EMI x n) - P Total Interest = (QAR 2,349 x 48) – QAR 100,000 = QAR 12,752

1.2 Credit Cards - If the outstanding balance (purchases and cash advances) is paid in full each month on or before the payment due date, no interest is charged; otherwise full
interest is charged on the entire outstanding balance from the date of each individual purchase. Each month a statement of account is sent to the cardholder indicating the
purchases undertaken with the card, any outstanding fees, and the total amount owed.
January February
Formula:

Daily Interest Amount = Outstanding Balance1 x Annual Interest Rate / 360

Total Interest = Sum of Daily Interest amount from individual purchase date

Example 1st month - 1st Jan:

Interest rate = 12% p.a.

Outstanding balance month = QAR 0.00
Total purchases and advances2 current month = QAR 1,000.00
Total credits3 = QAR 0.00
Daily Interest charge on outstanding balance = QAR 0.00
Days from date of outstanding balance purchase = 0 days
Total Interest on outstanding4 = QAR 0.00

Example 2nd month - 1st Feb :

Interest rate = 12% p.a.

Outstanding balance month = QAR 1,000.00
Total purchases and advances2 current month = QAR 0.00
Total credits3 = QAR 0.00
Daily Interest charge on outstanding balance = QAR 0.33
Days from date of outstanding balance purchase = 58 days
Total Interest on outstanding4 = QAR 19.33

________
1
net of purchases and advances, and credits
2
used on various dates
3
paid on various dates
4
1st month QAR 9.00 plus 2nd month interest 10.33

2. On deposits – the interest rate is calculated based on 360-day year as agreed upon by parties in the Deposit Account Agreement according to the type of the deposit.

2.1 Super Savings and Young Savers Accounts

Description: Example:

Savings product with the flexibility of a savings account coupled with the returns of a
fixed deposit. The total interest is paid QUARTERLY
Formula:
Interest amount for Super Savings = [(Lowest monthly balance) x (No of days in a
month) x (annual interest rate/360)]
Deposit amount = QAR 250,000 (starting in January)
Balance (Average Monthly or Lowest Monthly) = QAR 250,000
Interest rate = 2% p.a.
Interest for January = (QAR 250,000 x 31 days x 2%/360) = QAR 430.56
Interest for February = (QAR 250,000 x 28 days x 2%/360) = QAR 388.89
Interest for March = (QAR 250,000 x 31 days x 2%/360) = QAR 430.56

Interest amount for Young Saver = [(Average monthly balance) x (No of days in a The total interest is paid QUARTERLY, on 01 April.
month) x (annual interest rate/360)]

2.2 Savings

Description: Example:

Entry level, basic saving account for those who want to start saving money. Deposit amount = QAR 50,000
The total interest is paid SEMI-ANNUALLY Average monthly balance = QAR 50,000
Interest rate = 1% p.a.
Formula:
The customer will receive interest twice a year; first interest payment of QAR
Interest amount = [(Average monthly balance) x (number of days in month) 252.63 on 30 June and second payment of QAR 253.91 on 31 December.
x (annual interest rate/360)]

2.3 Fixed and Call Accounts Deposits

Description: Example:

High yield deposit account for fixed amount over a fixed term Deposit or contract amount = QAR 300,000
Contract Period = 1-month with automatic roll-over to the next month
Formula: Interest rate = 1.35% p.a.

Interest amount = [(Contract amount) x (number of days in month) Interest for January = (QAR 300,000 x 31 days x 1.35%/360) = QAR 348.75
x (annual interest rate/360)] Interest for February = (QAR 300,348.75 x 28 days x 1.35%/360) = QAR 315.37

The total interest amount is paid only at maturity of contract.