Half Yearly Report

European Islamic Investment Bank plc

("EIIB" or the "Company")

Interim Financial Statements

For the six months ended 30 June 2015

Highlights

· Financial performance for the six months to 30 June 2015 was encouraging in challenging market conditions

· Operating income of £4.9m (first half 2014: £6m)

· Operating profit of £0.6m, compared to £0.9m for the first half 2014 (2014: full year profit before tax from continuing operations £1.5m)

· Income attributable to Equity holders of £1.0m, compared to £0.2m in first half 2014

· Assets under management (AUM) at 30 June 2015 including capital seeded by the Group stood at US$1,100m (31 December 2014: US$1,123m)

· Earnings per share of 3.33p, up from 1.02p in first half 2014

· Strong capital adequacy, regulatory and liquidity ratios maintained

For further information please contact:

EIIB plc Tel: +44 (0)20 7847 9900

Zak Caar Hydari, Chief Executive

Westhouse Securities  Tel: +44 (0)20 7601 6100

Antonio Bossi / David Coaten

Chief Executive's Statement

Financial results

During the first half of 2015 EIIB delivered encouraging financial performance in challenging market conditions.

Total operating income for the six months to 30 June 2015 was £4.9m (six months to 30 June 2014: £6m). Total expenses for the six months were £4.3m (first half 2014: £5.1m). The resulting Operating profit for the six months was £0.6m (first half 2014: £0.9m). However, the Income attributable to Equity holders of £1.0m was higher compared to £0.2m in the same period 2014.

The Group also maintained its strong capital adequacy, regulatory and liquidity ratios.

Commentary

In the first half of the year we maintained performance in challenging market conditions.

There has been significant volatility in the Middle East and North Africa (MENA) region from a geopolitical and economic perspective. Ever since oil prices started their downtrend trajectory equity markets have become more volatile. We expect volatility to remain high over the next 6-12 months with oil prices remaining low and energy subsidies being revised in Oman, Kuwait and Saudi Arabia. GCC governments are also likely to curtail non-essential spending and increasingly tap debt markets to fund expenditure. We also believe efforts to diversify economies away from oil will intensify and investments in infrastructure, transportation, healthcare and education will be prioritised.

Oil is under pressure from the demand side (rapid uptake of hybrid and alternative energy sources) as well as the supply side (US shale oil and Iran). US shale companies are the new swing producers in the market (almost 3 million barrels of supply) and have the technology to ramp up or cut down production within 6 to 12 months compared to 5 years on average for conventional producers.

The Iran nuclear deal is a significant development in the region. Whilst the heightened geopolitical tensions have added pressure to GCC budgets, we expect them to ease and remain hopeful that the Iranian deal will aid in solving conflicts in Syria, Yemen and Iraq. Our current strategy is focused on increasing allocation to the UAE where growth momentum remains strong. The Iran deal will have a positive impact on the UAE. Iran is the UAE's most important non-oil trade partner and the UAE accounted for approximately 30% of total Iran imports in 2014. Most of this trade goes through Dubai, which will benefit from a recovery in Iranian trade and investment as sanctions are lifted. On a longer term basis, the UAE's proximity to Iran, its safe haven status and its importance as an offshore trade and finance centre should drive UAE economic growth as it acts as an important hub for FDI into Iran.

Last year the upgrading of the UAE and Qatar to emerging markets status was a significant development. In the first half of this year Saudi Arabia followed through on earlier announcements to open its market to international investors. Whilst we are currently reducing exposure to Saudi Arabia, where earnings fell by 12% during the first half of 2015, the liberalisation of the $550bn Saudi market is transformational and increased ability to invest in Saudi Arabia will boost long-term prospects for regional markets.

Investment Management

Our investment performance was strong across all Funds and client portfolios. Our flagship funds, the Arabian Markets Growth Equity Fund and the Rasmala GCC Islamic Equity Income Fund, produced returns of 7.34% and 8.28% respectively, in the six months to 30 June 2015, and the Rasmala GCC Fixed Income Fund and the Rasmala Global Sukuk Fund, produced returns of 2.57% and 1.96%, respectively, over the same period.

Our Assets under management (AUM) including capital seeded by the Group stood at US$1,100m (period to 31 December 2014: US$1,123m). Gross inflows during the period exceeded $130m but were offset by redemptions and market movements. Strong demand for our Alternative strategies of Trade Finance and Leasing was particularly encouraging.

Investment Banking

In the first half of the year, we acted as lead arranger on a capital markets financing for National Bank of Fujairah. The total size was AED500m (US$140m) and was fully subscribed. Our Investment Banking team has also developed a real estate capability and expects to complete one client led real estate backed transaction in the second half of the year.

Principal Investments

We continue to manage our balance sheet on a conservative basis and deploy capital to drive our product expansion strategy. We are also increasing the level of management involvement in our remaining legacy investments to ensure we achieve a timely and orderly exit.

Tender Offer

EIIB successfully completed a GBP20m Tender Offer on 7 May 2015.

Outlook

We are pleased to report a profit for the first half of the year, despite a challenging geopolitical and economic environment. We expect the second half of the year to be even more volatile and our strategy is to make incremental progress towards our goals, whilst maintaining stability during this period of heightened volatility.

Condensed consolidated statement of income for the six months ended 30 June 2015 (unaudited)

Please note 3.33p as at 30 June 2015 is post Tender Offer

Condensed consolidated statement of other comprehensive income for the six months ended 30 June 2015 (unaudited)

Condensed consolidated statement of financial position at 30 June 2015 (unaudited)

Condensed consolidated cash flow statement for the six months ended 30 June 2015 (unaudited)

Notes to the condensed consolidated interim financial statements (unaudited)

At 30 June 2015

1. Principal activities and authorisation of the financial statements

European Islamic Investment Bank plc ('EIIB' or 'Company') is a London headquartered specialist asset management and financing group incorporated in the United Kingdom on 11 January 2005. The Company is focused on the Gulf Cooperation Council countries and offers investment management and structured finance solutions.

The interim condensed consolidated financial statements of the Company and its subsidiaries (the 'Group') for the six months ended 30 June 2015 were authorised by the Board of Directors for issue on 21 September 2015.

The condensed consolidated financial statements of the Group as at and for the period ended 30 June 2015 are available at www.eiib.co.uk

2. Accounting policies

The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2014.

3. Share capital and share premium

EIIB consolidated its ordinary shares following a tender offer and as a result, the number of ordinary shares with voting rights in issue in the company has changed to 30,446,654 from 39,121,206.

4. Subsequent events

There were no significant events occurring subsequent to the interim reporting period.