Interim results for the six months to 30 June 2025

CAB Payments Holdings plc and its subsidiaries

("CAB", "CAB Payments", the "Group" or the "Company")

Interim results for the six months ended 30 June 2025

Good strategic progress and momentum going into H2

Financial performance stabilised into 2025, income streams diversified, and foundations built for growth

(a) H1 2024 Total Income has been re-presented to add back IFRS 16 interest expense on lease liabilities reflecting updated presentation of the Group's financial statements. The IFRS 16 interest expense on lease liabilities is reflected separately in the Profit and Loss statement under other finance costs.

(b) In Q1 2025, a review of the primary nature of client payment activity was completed and a portion of client income was reclassified from Wholesale FX income to Payment FX income. To ensure comparability, prior period financial information related to these products has been reclassified, amounting to £2.2m of FY24 income (£1.1m in both H1 and H2 2024) moving from Wholesale FX to Payment FX

· The Group added 46 new network counterparties, taking the total size of the network to 436 liquidity and nostro providers (2024: 390). Our growing network enables us to better serve our client needs

· Successfully executed the first sale of trade finance loans from our portfolio driving additional and scalable fee-based income. Trade finance balances stood at £199m as at H1 2025 (H1 2024: £105m), cementing strong relationships with local banks and liquidity providers

· Received a licence to operate a representative sales office in New York

· Approved by the Central Bank of Nigeria to operate an IMTO licence in July 2025, enabling greater participation in Naira transactions

· Processed the first payments through CAB's partnership with Visa, 52 supported currencies now live via Automated Clearing House ('ACH') rails

· Added capability to quote any currency against the Chinese Renminbi (CNY) reflecting the increased importance of the CNY in cross-border payments

· FX Derivatives undergoing pilot testing and guaranteed deposits operationally ready and expected to be launched in H2

About CAB Payments

CAB Payments Holdings plc is the holding company for Crown Agents Bank Limited. Regulated in the UK, Crown Agents Bank specialises in FX and cross-border payments for hard-to-reach markets. Its strength of network and deep expertise means it can move money into and out of the world's most complex financial markets. Trusted by a global ecosystem of leading institutions across the public, private and development sectors, Crown Agents Bank's strength lies in its network which connects its clients to underserved geographies, giving them access to 100+ currencies across 700+ currency pairs.

The delivery of fast, transparent and efficient transactions moves money where it's needed. Crown Agents Bank's network offers multiple transaction solutions, delivered via a single API, digital trading platforms, or through bespoke approaches developed by its specialist teams.

Crown Agents Bank is one of the first banks to achieve B Corporation™ status. The Bank was awarded the Platinum Sustainability Rating by EcoVadis in 2025, ranked within the top 1% of 100,000 companies assessed across 160 countries and over 200+ industries. Crown Agents Bank was awarded a Gold EcoVadis rating in 2022, 2023 and 2024.

CAB Payments Holdings plc Ordinary Shares are traded on the London Stock Exchange (ticker: CABP; LEI: 8945007OZHZDN4LW1G21).

For further information, please contact:

CAB Payments Holdings plc

Gaurav Patel, Head of Investor Relations

[email protected]

www.cabpayments.com

FTI Consulting

(Public Relations Adviser to CAB Payments)

Edward Bridges +44 (0) 7768 216 607

Katie Bell +44 (0) 7976 870 961

[email protected]

Chief Executive Officer's Review

Our first half 2025 (H1 2025) results confirm that we are successfully executing against our strategic plan having made significant progress since we set out a new strategic framework in late 2024. While there is still more to be done, we are making clear progress and the steps we've taken are starting to deliver momentum despite the challenging environment.

At a time when markets remain volatile, global trade patterns are shifting and development aid budgets are under pressure, our business has been resilient. We have stayed close to our clients, ensuring we are best positioned to partner with them in providing solutions to deliver fast, reliable, and compliant FX and cross-border payments.

We continue to be the trusted FX and cross-border payments provider in emerging and frontier markets. It is our enduring understanding of the local markets we operate in that means we are uniquely placed to provide liquidity and manage risk for clients in hard-to-reach currencies.

We have made meaningful operating advances during the first half. Our strategy is working, and after delivering a satisfactory first half financial performance, together with successfully completing the transformation of our business, we exit H1 with confidence in our ability to deliver increased revenue in the second half and beyond.

Our first half achievements show progress against each of our strategic pillars:

Clients

· Onboarded 52 new clients overall, of which 21 were already transacting with us in the first half reflecting faster onboarding times, in addition to a further 15 new active clients that were onboarded last year

· Onboarded our first customers in our CAB Europe office who are already generating revenue

· Won the Global Markets Award at the 2025 Central Banking Awards, validating our strong central bank relationships and that we are a key partner for them

Network

· Secured the licence to operate a representative office in New York, our gateway to the US market which also brings us closer to our USD clearing partners

· Approved by the Central Bank of Nigeria to operate an IMTO licence, enabling greater participation in Naira transactions

Platform

· Opened 39 new FX and payment corridors across development agencies, banks and financial institutions

· Platform agility allowed us to add CNY conversion to all currency pairs

· Continued to deepen relationships in key footprint markets, including opening up several exciting new markets in Africa

Invest & Innovate

· Launched our enhanced USD smart-routing platform, optimising our dollar clearing capabilities

· Reduced client onboarding times through increased automation

· Executed a number of "firsts" including:

- Processing our first client payments through our Visa partnership

- Conducting our first sale from our trade finance portfolio

- Executing our first test client derivative transaction

Importantly, we also successfully completed the strategic restructuring exercise that we outlined at the beginning of the year as part of our transformation plan. We have now right-sized our business, removed (c.100) surplus roles, and have increased the proportion of roles that are client facing, our total headcount was 345 as at the end of H1. Where we see opportunity to invest in further sustainable revenue-generating roles we will look to increase this proportion further. We remain on track to deliver broadly flat staff costs year-on-year, before potential variable pay.

In the first half of the year we have onboarded 52 new clients of which 21 have already started to transact through our platform. This new cohort will mature in the coming months and will help to drive momentum in the second half of the year. This brings our total active client base to 573 (2024: 546).

With the granting of the licence to operate a representative office in New York, a proposed new office in Abu Dhabi (subject to regulatory approval) together with our existing Amsterdam and UK locations, we are increasing the reach and relevance of our business to a broadening client base. Our expanded footprint allows us to get closer to clients and immerse ourselves in a greater number of significant global payment streams.

Our network remains a key competitive advantage underpinning our FX & Payments infrastructure. In H1 2025, we added 46 new nostro accounts and liquidity providers versus our position at the end of 2024. Local banks want to partner with us based on our high standard of operating processes driven by our UK banking licence, strong brand and a reputation of trust and client service.

Stabilised performance, expecting an improved performance in H2

Looking at the performance in the first half, our total volumes continued to grow, up 13% YoY and 2% HoH to £19.9bn (H1 2024: £17.6bn) as we grew our client base and focused on our relationship-led business model. We experienced developed FX volume growth (+26% YoY, 5% HoH) due to the onboarding of more EMFI clients who utilise our platform for all types of FX and Payment flows. Emerging FX volumes declined 7% YoY and 6% HoH, largely as a result of well publicised, reduced capacity and uncertainty in International Developmental Organisation (IDO) activity. We remain fully committed to supporting this important activity for our clients.

Our overall take rates have remained in-line with the levels we saw towards the end of 2024 and appear to have broadly stabilised. This is aligned to our near-term expectations. Take rates reflect a number of factors such as the prevailing market economic conditions, local market demand for hard currency, the relative mix of corridors traded in our portfolio and levels and types of central bank interventions. As we move towards a multi-product, fee-based solutions model, working alongside central banks and other clients, we should be less dependent on volatile take rates.

While total income in H1 2025 of £51.8m (H1 2024: £56.0m) represented a decrease of 8% year-on-year, it was up 3% half-on-half (H2 2024: £50.4m) as we stabilised revenue. Importantly, we have spent the first half of 2025 adding new clients, many of whom have recently started transacting with us or are set to do so in the near term, whilst also adding product enhancements and services to better serve the needs of our clients as outlined above.

Outlook: continuing with strategic execution, expect revenue growth in 2025

The business has made strong strategic progress during the first half of 2025 with financial performance stabilised and income showing modest growth compared to the second half of 2024. Given the progress made on key strategic priorities, the increase in the number of active clients and market initiatives now live, we can expect an improved performance in the second half of 2025 and we maintain the expectation of overall year-on-year income growth for the 2025 financial year and more meaningful growth in 2026.

I would like to thank all our staff for their dedication and hard work to get us to this point as we undergo our transformation journey. They have demonstrated continued professionalism especially during the restructuring exercise that we conducted earlier in the year and have remained focused on delivering value to our clients.

Financial Review

The first half of 2025 marked a period of operational and strategic progress, and financial stabilisation for the Group. While Total Income declined 8% YoY to £51.8m (H1 2024: £56.0m), income performance was up 3% compared to H2 2024 (£50.4m). The YoY decline in Total Income was driven by an increased mix towards lower-margin developed FX volumes while also experiencing lower Emerging FX take rates throughout H2 2024 and H1 2025. The HoH total income stabilisation has resulted from the focus on delivering our strategic and client priorities that were set in late 2024.

Adjusted EBITDA of £13.1m was 30% lower than the first half of 2024 given the decline in income noted above. However, it was up 8% versus H2 2024 (£12.1m), illustrating the early signs of operational leverage as Income growth (+3%) outstripped growth in Total Operating Expenses before non-underlying expenses (+2%). Total Operating Expenses benefitted from the strategic restructuring exercise in March, which more than offset both the full year impact of hires made in the prior year and the effects of inflation.

Adjusted Operating Free Cash Flow remained robust at £9.5m, up 1% YoY and up 56% HoH with a strong conversion rate of 72%, evidencing the underlying cash-generative nature of the business and low capital intensity.

Reported Profit After Tax fell to £2.3m (H1 2024: £10.2m) largely reflecting the exceptional restructuring costs of £2.5m alongside other non-underlying expenses and the decrease in Income. Earnings Per Share decreased to 0.9 pence (H1 2024: 4 pence).

¹ See Alternative Performance Measures

Total Income

Wholesale FX and Payments FX Income

Total Wholesale FX and Payment FX income has stabilised versus H2 2024 with H1 2025 income at £23.9m (H2 2024: £24.0m) with lower Emerging FX volumes (down 6%) largely offset by higher Developed FX volumes (up 5%). Compared to H1 2024, income was 20% lower largely reflecting a compression in Emerging take rates as well as non-repeat of a short-lived market dislocation in Q1 2024.

Developed FX volumes grew 26% YoY to £13.6bn (H1 2024: £10.8bn) and 5% HoH (H2 2024: £12.9bn). This reflected the benefit of deeper relationships with EMFI clients and the impact of a wider product offering, including trade finance, derivatives, deposits and correspondent banking.

Emerging FX volumes at £6.3bn declined 7% YoY (H1 2024: £6.8bn) driven largely by lower volumes from the IDO sector as a result of well publicised funding constraints. Furthermore, a stronger dollar compared to emerging FX currencies in the first half of the year lowered average transaction sizes.

FX take rates across Developed and Emerging currencies at 0.12% compressed throughout 2024. Blended take rates remained stable HoH at 0.12%, but were down 0.05% YoY, largely reflecting: the impact of volume mix with a larger proportion of developed FX volumes in H1 2025, Emerging FX take rate compression in the second half of 2024 and a short-lived dislocation in a particular currency at the beginning of 2024.

Other Payments

Other Payments revenue, which includes correspondent banking and income from pension payments was up 4% HoH, driven by the successful onboarding of new correspondent banking clients across H2 2024 and H1 2025, as we continue to deepen our USD Clearing partnerships.

Banking Services

Net Interest Income (NII) at £16.5m grew 7% HoH and 1% YoY as the impact of falling global interest rates was offset by an increase in average call deposit balances (H1 2025: £771m; H1 2024: £596m). We are increasingly being seen by clients as a trusted deposit partner, increasing our Clients' ease of connecting with our payments and FX businesses.

Trade finance and other banking services income was £3.9m in the period, which was up versus both H2 2024 (+3%) and H1 2024 (+70%), primarily reflecting actively managed growth in the trade book throughout 2024. We have demonstrated our ability to originate and maintain the portfolio at around the levels of our capital appetite. Further income growth will be driven by execution of our origination and distribution model. In the period we also executed the first trade finance asset sale transaction, demonstrating the ability to distribute these assets and drive a scalable, low capital and fee-based revenue stream.

Client Performance

During the period we consolidated previous segments of EMFIs and Major Market Banks (MMBs) into a single 'Banks' segment which better reflects how we manage the business and our go-to-market strategy.

The Banks segment grew 10% YoY and 5% HoH driven by increased call deposits, growth in trade finance and increased FX through the onboarding of new correspondent banking relationships. The Banks segment was the biggest driver of the increase in developed FX volumes.

The IDO segment, representing around 11% of income, delivered lower revenues principally due to continued funding pressure for the IDOs which started in the second half of 2024. We remain committed to supporting their vital work.

The NBFI and Fintech segment income grew 5% HoH but was down 28% year YoY, reflecting the non-repeat of income earned in market dislocations in H1 2024. We have grown the client numbers through H1 and continue to be well positioned to serve this client segment going forward.

Expenses

Operating expenses were managed tightly in H1 despite inflationary pressures and the impact of previous investment leading to higher depreciation and amortisation costs. Total operating expenses at £48.1m were up 13% YoY and up 5% HoH.

Within this, Staff costs of £22.7m were flat HoH and marginally down YoY despite staff cost inflation, annualisation effects of prior year hires, accruals for discretionary variable pay, as well as the prioritisation of investment in revenue generating teams. The successful execution of the restructuring exercise in March 2025, where approximately 100 roles were removed, resulted in a FTE of 345 as at 30th June 2025.

Following the strategic restructuring exercise, the company remains on track to deliver broadly flat staff costs YoY, excluding discretionary variable pay.

Other operating expenses at £16.0m were up 10% YoY (1% up HoH) largely reflecting higher levels of operational activity and the non-repeat of a £0.6m VAT refund recognised in H1 2024.

Depreciation and Amortisation increased to £5.2m (H1 2024: £3.8m), reflecting the combination of higher levels of investment in 2024 and in H1 2025, along with £1.0m right of use depreciation, up £0.5m (H1 2024: £0.5m).

Non-underlying items increased to £4.2m (H1 2024: £1.0m), reflecting £2.5m of redundancy costs, £1.1m of transitioning costs related to executive committee roles and £0.6m of transformational costs.

Capital, Liquidity & Investment

The Group's unique business model led by FX and Payments, means that it is significantly less capital intensive than that of other banks given a large proportion of income is derived from transactional activity. Accordingly, the Group remains strongly capitalised with a CET1 ratio of 19.5% (H1 2024: 22.5%). The CET1 ratio reduced through 2024 largely as a result of the controlled growth of the Trade Finance portfolio. The CET1 Ratio does not yet take into account profits generated in the first half. These profits will be reflected as capital following the completion of the full-year results process. The bank remains profitable with a Total CET1 capital of £115.4m, representing a significant surplus over regulatory requirements.

Liquidity metrics remain strong and with both LCR and NSFR well above regulatory minimums at 138.8% and 134.4% respectively.

Core intangible capital expenditure for the first half of 2025 was £3.5m, with the Group reiterating guidance that full-year capex will be managed to under £8 million and focused on delivering new product initiatives for clients.

Taxation

The tax charge arising during the period of £0.8m (H1 2024: £3.4m) is based on an effective tax rate of 25.1% (being the expected rate for the entire year). This is comparable to the H1 2024 effective tax rate of 25.1%. The tax rate takes into account the standard corporation tax rate of 25%.

Dividends

No dividends have been declared in 2025 (2024: nil). The Group does not currently have a dividend policy and chooses, at this time, to reinvest retained profits into client focused growth initiatives.

Related Parties

Please refer to Note 23 to the interim condensed consolidated financial statements where detailed disclosures on related parties are made.

Summary

The business has made good financial, strategic and operational progress during the first half of 2025 with growth in total Income and adjusted EBITDA starting to come through versus H2 2024. We will continue to deliver our strategic initiatives throughout the second half, which, alongside our strong pipeline, gives us confidence in an improved income performance in H2.

Principal Risks and Uncertainties

The principal risks and uncertainties facing the Group were disclosed on pages 43 to 48 of the CAB Payments Holdings plc 2024 Annual Report and Account after review and approval by the Board. The Group considered that the overall principal risks and uncertainties, risk appetite, key risks and management of risks unchanged.

The principal risks include:

• Business risk

• Financial crime risk

• Operational risk

• Credit risk

• Market risk

• Regulatory and compliance risk

• Capital adequacy risk

• Liquidity and funding risk

• Conduct risk

Statement of directors' responsibilities

The directors confirm that these condensed interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

• An indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

• Material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report

The maintenance and integrity of the CAB Payments Holding Plc website is the responsibility of the directors; the work carried out by the authors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that might have occurred to the interim financial statements since they were initially presented on the website.

A list of current directors is maintained on the CAB Payments Holding Plc website:

www.cabpayments.com

By order of the Board,

Neeraj Kapur

Group Chief Executive Officer

James Hopkinson

Group Chief Financial Officer

13 August 2025

Alternative Performance Measures

CAB Payments uses alternative performance measures ('APM') when presenting its financial results. Management believes these provide stakeholders with additional useful information to interpret the underlying performance of the business. They are used by the Directors and management to monitor performance.

APMs used within this Annual Report are supplemental to, but not a substitute for, IFRS measures presented within the Financial Statements. They may not be comparable with the APMs of other companies. The APMs are calculated on the same basis as the prior year.

Total Income

The Group's focus is on controlled investment, whether as capital expenditure or through operating costs, to drive income growth. Total Income is the same as 'Total income, net of interest expense' as reported in the Interim Condensed Consolidated Statement of Profit and Loss.

In H1 2025, £0.7m of IFRS 16 lease costs was reclassified, which were previously recorded as an interest expense within Total Income, moving these costs to their own separate line in the financial statements under 'Other finance costs'. The effect of this on H1 2024 has been to increase total income by £0.2m but has had no impact on EBITDA or Adjusted EBITDA. No other adjustments were made to interest expense.

EBITDA

EBITDA is the key measure of profitability used internally at Executive Committees and Board, and externally with investors.

It is calculated as Profit before Tax and IFRS 16 lease liability interest expense, depreciation and amortisation. Although it is typical to calculate EBITDA before interest, our net interest income is generated from client deposits and subsequent reinvestment to generate returns for shareholders and therefore remains included within EBITDA.

The calculation for EBITDA can be seen in Note 3 Segment reporting.

Adjusted EBITDA and Adjusted EBITDA Margin

The Group believes that Adjusted EBITDA is a useful measure for investors because it is closely tracked by management to evaluate the Group's performance for making financial, strategic and operating decisions, as well as aiding investors to understand and evaluate the underlying trends in the Group's performance period on period, in a comparable manner.

Adjusted EBITDA margin is another measure of profitability, by understanding how much of the income is converted to profit, by calculating Adjusted EBITDA as a percentage of total income.

Adjusted Profit and Earnings Per Share

A measure of profitability based on adjusting the statutory profit after tax by removing identified items that do not form part of the ongoing running costs of the business.

Operating Free Cash Flow and Free Cash Flow conversion

A measure of cash flow generated by the business. It is a non-statutory measure used by the Board and the senior management team to measure the ability of the Group to support future business expansion, distributions, or financing. It is calculated as Adjusted EBITDA before the cost of purchasing property, plant and equipment, the cost of intangible asset additions, and the cost of lease payments. The Group also measures free cash flow conversion, being operating free cash flow as a percentage of Adjusted EBITDA.

Independent Review Report to the members of CAB Payments Holdings plc

Report on the interim condensed consolidated financial statements

Our conclusion

We have reviewed CAB Payments Holdings plc's interim condensed consolidated financial statements (the "interim financial statements") in the Interim results of CAB Payments Holdings plc for the 6 month period ended 30 June 2025 (the "period").

Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

The interim financial statements comprise:

· the Interim Condensed Consolidated Statement of Financial Position as at 30 June 2025;

· the Interim Condensed Consolidated Statement of Profit or Loss for the period then ended;

· the Interim Condensed Consolidated Statement of Other Comprehensive Income for the period then ended;

· the Interim Condensed Consolidated Statement of Cash Flows for the period then ended;

· the Interim Condensed Consolidated Statement of Changes in Equity for the period then ended; and

· the explanatory notes to the interim financial statements.

The interim financial statements included in the Interim results of CAB Payments Holdings plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

Basis for conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the directors

The Interim results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Interim results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Interim results, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

Our responsibility is to express a conclusion on the interim financial statements in the Interim results based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP

Chartered Accountants

London

13 August 2025

Interim Condensed Consolidated Statement of Profit or Loss

for the six months ended 30 June 2025

The notes to the accounts form part of these interim condensed consolidated financial statements.

Interim Condensed Consolidated Statement of Other Comprehensive Income

for the six months ended 30 June 2025

The notes to the accounts form part of these interim condensed consolidated financial statements.

Interim Condensed Consolidated Statement of Financial Position

as at 30 June 2025

Company registration number - 09659405

The notes to the accounts form part of these interim condensed consolidated financial statements.

The Board of Directors approved the interim condensed consolidated financial statements on 13 August 2025.

Interim Condensed Consolidated Statement of Changes in Equity

for the six months ended 30 June 2025