#1Emirates NBD Emirates NBD Investor Presentation April 2020 %#2Important Information Disclaimer The material in this presentation is general background information about Emirates NBD's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take in to account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. The information contained here in has been prepared by Emirates NBD. Some of the information relied on by Emirates NBD is obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. Forward Looking Statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning. Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. Emirates NBD undertakes no obligation to revise or update any forward looking statement contained within this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise. 2#31. Emirates NBD Profile 2. Financial & Operating Performance 3. Economic Environment 4. Divisional Performance 3#4Emirates NBD is a Leading Bank in the MENAT Region Key Highlights as of Q1 2020 USD 189 Bn Total Assets 13 Countries Emirates NBD at a Glance USD 129 Bn Gross Customer Loans 970 Branches USD 14.3 Bn Market Capitalization* 14.7 million Customers 3rd Largest in GCC** 56% Government of Dubai Shareholding 2nd Largest in the UAE** 20% Foreign Ownership Limit ~20% Market Share in UAE (Assets, Loans, Deposits)* 40% *** Intent to Further Increase Foreign Ownership Limit *Market cap as at 27-Apr-20; **By assets as at 31-Mar-20 ***Market share in UAE as at Q1-20 Emirates NBD Profile 4#5Emirates NBD at a glance. Bahrain 4 KSA 143 Mumbai UAE Market share in the UAE* Assets 18.2%; Loans 22.2%; Deposits 20.5% ➤ Largest financial institution in Dubai, 3rd largest in the GCC ➤ Leading retail banking franchise with a branch network of around 1,000 branches throughout the MENAT region with operations in 13 countries ➤ Leader in digital banking: 6th best banking app worldwide with expanding customer acquisition 55.8% indirectly owned by the Government of Dubai through ICD ➤ Stable credit ratings Rated A3 / A+ by Moody's / Fitch Emirates NBD's International Presence Moscow 1 London 16 Germany 27 Austria Turkey 708 67 Egypt * ENBD as at 31-Mar-20 excluding DenizBank Emirates NBD Emirates NBD Rep. Offices DenizBank Singapore 1 Jakarta Beijing 1 Emirates NBD Profile 5#6Emirates NBD is one of the largest banks in the GCC % Mar-20 vs. Mar-19 Total Assets USD Bn, 31-Mar 2020 Gross Loans USD Bn, 31-Mar 2020 Total Deposits USD Bn, 31-Mar 2020 Net Profit USD Mn, Q1 2020 YoY * QNB 262 9% * QNB 197 13% QNB 192 11% QNB 981 0% بنك أبوظبي الأول FAB First Abu Dhabi Rank 228 14% Emirates NBD 129 30% بنك أبوظبي الأول Emirates NBD 189 32% FAB First Abu Dhabi Bank بنك دبي الإسلامي بنك دبي الإسلامي بنك أبوظبي الأول بنك أبوظبي الأول FAB 135 15% FAB 656 -22% First Abu Dhabi Bank First Abu Dhabi Bank 107 6% Emirates NBD 127 30% Emirates NBD 567 -24% بنك دبي الإسلامي Dubai Islamic Bank 75 19% Dubai Islamic Bank 51 20% Dubai Islamic Bank بنك دبي الإسلامي 54 54 22% Dubai Islamic Bank 303 -18% Emirates NBD Profile 6#7Strong track record of profitability Consistently profitable due to diversified and resilient business model 9.1% 9.3% 8.8% 10.5% 15.7% 19.7% 18.0% 18.7% 20.3% 24.2% 12.0% Operating Revenue '10-'19 CAGR: 10% Net Profit '10-'19 CAGR: 23% Record year for revenue and profit 6.1 4.7 4.1 4.2 4.0 3.9 4.0 3.2 2.6 2.7 2.8 2.7 2.3 1.9 2.0 1.4 0.9 0.6 0.7 0.7 1.9 0.6 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 ■Operating Revenue (USD Bn) Net Profit (USD Bn) Return on Average Tangible Equity Emirates NBD Profile 7#8Stable Shareholder Base and Diversified Business Model Split of ownership - Anchored by the Government of Dubai Ownership structure as at 31 March 2020 • Investment Corporation of Dubai ("ICD") 56% Others 39% • Capital Assets 5% Balanced asset composition % by segment as at 31 March 2020 DenizBank 19% CIB 47% Highlights • • • . A flagship bank for the Government of Dubai and the UAE Strong and supportive shareholder base from the Government of Dubai via Investment Corporation of Dubai International presence in Asia, Europe and MENAT across 13 countries. DenizBank acquisition further enhanced geographic profile Well diversified and balanced asset composition between corporate, consumer and Islamic banking Foreign ownership limit raised to 20% from 5% in September 2019 Intent to raise Foreign ownership limit to 40%, subject to Regulatory approval Equity Analysts Coverage Buy Hold Sell Recommendation 10 1 0 In AED GMT 16% RBWM 9% Islamic Banking 9% Target Price Price at 27-Apr-2020 12.00 8.30 Adjusted EPS 31-Mar-2020 0.31 Emirates NBD Profile 8#9• • • • • Leader in Digital Banking and Innovation liv. The lifestyle digital bank for millennials - launched its innovative digital credit card offering a truly customized experience Commenced pilot operations in the Kingdom of Saudi Arabia, a large market with a young and dynamic population In partnership with AECB, now enables instant access to credit scores to help customers for a healthier financial future Sure, Smartphone insurance - range of insurance products • Expanded range of services with international transfers UAE's fastest growing retail bank; +12,000 customers p/month Continues to attract an overwhelming base of millennials as their primary spend account; Strong customer engagement Crossed 370,000 customers - Google Play Store rating 4.4 / 5 • . Key Digital Developments Committed to continue with safe operations during C-19 situation Instant mobile account opening without the need to visit a branch now represent 23% of customer accounts openings for Emirates NBD Introduced new touchpoint with Voice Banking on Amazon Alexa 70% of corporate clients opt for our award-winning digital platform New contactless sales processes rolled out for retail loans, cards Chat Banking service via WhatsApp simplifies banking experience Announced the launch of our digital business bank E20. Transactions via digital channels 94% Disability friendly Branch Network 52% Retail Business customers digitally active 72% QQ O Emirates NBD Profile 9#10Emirates NBD maintains strong balance sheet and good profitability despite increased impairments in Q1-20 Key Metrics Q1 2020 2020 Guidance Net Profit USD 0.6 Bn +3% q-o-q -24% y-o-y Profit NIM 3.02% 2.55-2.65% Cost to income 29.8% 33% NPL Ratio 5.5% Increasing Credit Quality Coverage Ratio 120.5% Strong CET 1 14.8% Capital Tier 1 16.8% CAR 17.9% LCR 149.7% Liquidity ADR 94.8% Increasing mid-single Assets Loan Growth 1% digit 2020 Macro themes Regional Global • Strong regulatory and government support to mitigate effects of COVID-19 • Strong measures by Governments and Central Banks to provide additional liquidity and support for businesses affected by COVID-19 • • Unprecedented economic impact expected due to COVID-19 Prolonged low oil price and contraction in non-oil private sector • Sharp GDP contraction expected in 2020 • Financial market volatility and slowing global trade Financial & Operating Performance 10#11Q1 2020 Financial results highlights. • • • • • • Highlights Net profit of USD 567 Mn was down 24% y-o-y, or 43% excluding DenizBank, mainly due to higher provisions. Net profit up 3% q-o-q Results include DenizBank revenue of USD 614 Mn and net profit of USD 137 Mn Net interest income improved 45% y-o-y on loan growth and higher NIMs from DenizBank and declined 3% q-o-q as lower interest rates fed through to the loan book Excluding DenizBank net interest income declined 1% y-o-y on lower interest rates in Q1-20 partially offset by 6% loan growth NIMS of 3.02% improved 19 bps y-o-y helped by the positive impact from DenizBank and declined 9 bps q-o-q Non-interest income improved 48% y-o-y and 8% q-o-q on account of higher core fee income Excluding DenizBank non-interest income declined 4% y-o-y due to lower fee, commission and investment securities related income Costs increased 47% y-o-y due to the DenizBank acquisition, or increased 2% excluding DenizBank Costs improved 18% q-o-q on lower staff and marketing expenses and improved cost management by DenizBank Impairment allowance of USD 697 Mn increased 349% y-o-y and 24% q-o-q due to higher stage 1 and 2 ECL allowances. Excluding DenizBank impairment allowances increased 177% y-o-y NPL ratio settled at 5.5% in Q1-20 LCR of 149.7% and AD ratio of 94.8% demonstrate the Group's healthy liquidity position Gain on bargain purchase Taxation charge LCR (%) Key performance indicators USD Mn Q1-20 Q1-19 Better/ (Worse) Better/ Q4-19 (Worse) Net interest income Non-interest income 1,345 926 45% 1,380 (3)% 531 359 48% 494 8% Total income 1,876 1,285 46% 1,874 0% Operating expenses (558) (381) (47)% (681) 18% Pre-impairment operating 1,318 905 46% 1,193 10% profit Impairment allowances Operating profit Share of profits from associates (697) (155) (349)% (562) (24)% 621 749 (17)% 630 (2)% 0 7 (100)% 0.5 (94)% n/a (13) n/a (54) (479)% (67) 20% Net profit 567 747 (24)% 551 3% Cost: income ratio Net interest margin 29.8% 3.02% 29.6% (0.2)% 36.4% 6.6% 2.83% 0.19% 3.11% (0.09)% USD Bn 31-Mar-20 31-Mar-19 % 31-Dec-19 % Total assets 188.5 143.3 32% 186.2 1% Loans 120.7 92.0 31% 119.2 1% Deposits 127.3 97.9 30% 128.7 (1)% 149.7% 198.8% (49.1)% 160.0% • Net cost of risk increased to 210 bps in recognition of the potential deterioration in credit quality in subsequent quarters related to the COVID-19 pandemic ADR (%) NPL ratio (%) 94.8% 5.5% 94.0% (0.8)% 92.6% 5.9% 0.4% 5.6% (10.3)% (2.2)% 0.1% Financial & Operating Performance 11#12Net interest income • • Highlights Q1-20 NIM of 3.02% increased 19 bps y-o-y as higher margins from DenizBank coupled with improved deposit and funding costs offset the reduction in loan yields Excluding DenizBank, Q1-20 NIM of 2.56% declined 27 bps y-o-y as lower loan yields offset the benefit from lower deposit cost Net Interest Margin (%) • . 3.11* Qtrly NIM YTD NIM 3.02 NIM declined 9 bps q-o-q as the reduction in loan yields and DenizBank margins offset the impact of lower deposit cost Loan yields declined 70 bps y-o-y and 22 bps q-o-q which offset the improved deposit cost of 28 bps y-o-y and 15 bps q-o-q 2.68 2.81 2.82 2.89 2.87 2.85 2.83 2.82 2.83 2.77 2.82 2.78 • NIM guidance revised down to 2.55-2.65% as recent decline in interest rates start to flow through to the loan book in subsequent quarters and DenizBank assets reprice Net Interest Margin Drivers (%) 2.83 Q1-20 vs. Q1-19 2.72 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 3.02 3.11 0.46 2.56 (0.70) 0.15 0.28 Q1-20 vs. Q4-19 0.01 (0.03) 3.02 (0.22) 0.15 Q1 19 Loan Yield Deposit Treasury ENBD Ex- DenizBank Q1 20 Q4 19 Cost & Other DenizBank Loan Yield Deposit Cost Treasury DenizBank Q1 20 & Other Financial & Operating Performance 12#13Loan and deposit trends Highlights Trend in Gross Loans by Type (USD Bn) +30% • Gross loans grew 2% since start of the year with growth across operating segments +2% DenizBank Consumer • Corporate lending grew 3% from end 2019 due to growth in financial institutions sectors Corporate Islamic* 125 127 129 . Consumer lending down 5% from end 2019 due to decline in credit cards and private banking activity 23 24 23 99 99 . Islamic financing grew 3% from end 2019 due to growth across a range of sectors 92 93 96 97 99 70 72 73 74 76 78 68 69 70 • CASA deposits represent 46% of total Group level deposits 10 10 10 11 12 11 11 12 11 • Domestic CASA engine remains strong at 54% (including Islamic) 14 15 15 15 15 15 16 16 16 * Gross Islamic Financing Net of Deferred Income Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Trend in Deposits by Type (USD Bn) DenizBank Other Time CASA 82 90 91 93 2 2 2 37 40 43 224 98 100 95 2 2 45 46 48 51 50 50 +30% -1% 128 129 127 22 1 27 2 22 27 22 25 50 51 49 48 48 50 50 49 49 49 49 52 32 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Financial & Operating Performance 13#14Loan composition Net Loans by Geography Q1-20 Gross Loans by Segment Q1-20 UAE 75% Net Loans by Geography Q1-19 Gross Loans by Sector Q1-20 Trans. & com. Agriculture Trade 7% 2% 2% 4% 5% Hotels and restaurants Construction Fin Institutions 3% Manufacturing 4% Mgmt of Cos 4% 3% Others ** Corporate 37% Sovereign Sovereign 2% GCC 34% 23% International 16% Retail Gross Loans by Segment Q1-19 13% Islamic 34% 4% 11% Services Real estate Gross Loans by Sector Q1-19 18% Personal Agriculture Construction Trans. & com. Trade Corporate 7% 0% 5% 2% 32% Sovereign 1% 1% Sovereign 3% 4% Fin Institutions Hotels and restaurants Manufacturing Mgmt of Cos Others ** 4% UAE 93% 2% GCC 5% International 42% Note: Gross loans include Islamic financing gross of deferred income **Others include Mining & quarrying (and Agriculture for Islamic Loans) 11% Retail 15% Islamic 42% 18% Personal 13% 1% Services Real estate Financial & Operating Performance 14#15Non-interest income • • • • Highlights Core fee income up 46% y-o-y due to the DenizBank acquisition Investment securities income declined 36% y-o-y mainly due to changing interest rates Non-interest income higher by 8% q-o-q mainly on account of higher derivative income Excluding DenizBank, non-interest income declined 4% y-o-y on account of lower fee, commission and investment securities related income Composition of Non Interest Income (USD Mn) Better/ USD Mn Q1-20 Q1-19 (Worse) Core gross fee income 695 448 55% Fees & commission expense (164) (86) (92)% Core fee income 531 362 46% Property income/(loss) (11) (22) 48% Investment securities & other income 12 18 (36)% Total Non Interest Income 531 359 48% Trend in Core Gross Fee Income (USD Mn) +55% +5% 695 659 620 120 159 12 448 450 220 209 13 14 161 157 11 11- 435 386 388 231 241 45. 42. Q1 19 Q2 19 63 93 84 Q3 19 Q4 19 Q1 20 Forex, Rates & Other Brokerage & AM fees Fee Income Trade finance Financial & Operating Performance 15#16Operating costs and efficiency Highlights • Q1-20 costs increased 47% y-o-y due to the DenizBank acquisition • Excluding DenizBank, costs increased 2% y-o-y mainly due to higher depreciation charges and information technology related costs • Cost to Income Ratio (%) ......Target CI Ratio (YTD) Cl Ratio 36.4 "32.9" 33.5 Costs improved 18% q-o-q due to lower staff and marketing expenses and improved cost management by DenizBank 31.1 31.5 32.1 31.3 32.3 31.9 29.6 29.7 31.3 29.8 30.3 • The cost to income ratio at 29.8% is within 2020 guidance but is expected to increase during the year on lower expected income partially offset by further cost management Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Cost Composition (USD Mn) +47% 681 -18% 558 512 351 381 390 329 304 24 243 246 80 21 58 28 21 69 17 16 38 40 227 129 139 83 88 Q1 19 Q2 19 Q3 19 Q4 19 Staff Occupancy Depreciation & Amortization Q1 20 Other Financial & Operating Performance 16#17Credit quality Highlights Impaired Loan & Coverage Ratios (%) • During Q1-20 NPL ratio stable at 5.5% 127.9 128.4 127.4 127.3 125.8 126.6 • Coverage ratio improved significantly by 8.2% to 120.5% on higher expected credit loss overlay related to COVID-19 123.9 • Net cost of risk increased to 210 bps (430 bps for DenizBank and 161 bps Emirates NBD only) on higher net impairment charge of USD 697 Mn USD 97 Mn of write backs & recoveries in Q1-20 compared to USD 90 Mn during same period last year NPL ratio Coverage ratio 112.3 120.5 • • Stage 1 & 2 ECL allowances amount to USD 2.7 Bn or 2.6% of CRWA Provisions will be reviewed regularly as the impact of COVID-19 becomes more apparent 6.0 6.0 5.8 5.9 5.9 5.9 5.6 5.5 4.8 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Impaired Loans and Impairment Allowances (USD Bn) Impaired Loans* Impairment Allowances +19% +22% +8% +0% 8.6 7.1 7.1 8.0 7.6 5.8 5.9 6.0 7.2 7.4 0.6 A 1.1 1.2 0.1 0.4 0.0 0.0 0.1 4.1 4.1 4.2 5.4 5.5 5 5.6 5.8 6.1 4.4 4.4 0.2 0.3 0.2 0.2 0.2 1.5 1.5 1.5 1.3 1.3 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 DenizBank 0.3' 0.3 0.3 0.3 1.5 1.6 1.6 1.5 35 0.3 1.6 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Core Corporate Retail Islamic *Includes purchase originated credit impaired loans of USD 0.7 bn (Dec-19: USD 0.8 bn) acquired at fair value Financial & Operating Performance 17#18Impairment allowances and Stage 1, 2 and 3 Coverage Highlights Stage 1 coverage ratio improved to 1.2% from 1.1% in Q1-20 as Stage 1 impairment allowances increased to USD 1.4 bn from USD 1.3 bn Stage 2 coverage ratio improved to 19.3% from 15% in Q1-20 as Stage 2 impairment allowances increased to USD 1.3 bn from USD 1.0 bn . Continued strong Stage 3 coverage ratio at 89.3% . Customers continue to be assessed closely for stage migrations on a case by case basis under the COVID-19 situation The Group has re-assessed scenario weighting to reflect the impact of current uncertainty in measuring ECLs across portfolios and also applied additional adjustments for retail exposures to employees of specific industries most impacted due to COVID-19 such as airlines, hospitality, retail and tourism The increase in the downside weighting of the macro-economic scenario and the management overlays have resulted in an additional ECL of USD 239 million for the Group The Group has used expert judgement where required to assess the overlays and will continue to reassess the position and related impact on a regular basis. Impairment allowances and Coverage % Stage 1 Stage 2 Stage 3 ECL Allowances (USD Bn) *ECL to Loan Coverage % 8.6 1.1 8.0 1.2 1.4 15.0 19.3 1.3 1.3 1.0 90.4 89.3 5.7 5.8 2019 Q1 2020 2019 Q1 2020 Total Gross Loans (USD Bn) 2019 Q1 2020 *Stage 3 coverage adjusted for purchase originated credit impaired loans acquired at fair value 5% 5% 89% 89% 6% 6% Stage 1 Stage 2 Stage 3 Financial & Operating Performance 18#19Capital adequacy • • Highlights In Q1-20, capital ratios declined as 2019 dividends and additional risk-weighted assets more than offset the impact of retained earnings Capital ratios remain above original minimum regulatory requirements of 11% for CET-1 ratio, 12.5% for Tier 1 ratio and 14.5% for CAR ratio Capital ratios not expected to weaken materially whilst TESS provides temporary relief of 3% from minima (1.5% CCB and 1.5% D-SIB) Capitalisation 20.7 21.2 21.2 20.9 18.5 17.9 18.0 18.7 18.9 19.8 17.4 16.8 16.6 15.3 15.6 14.8 21.6 21.1 1.3 1.3 2.5 2.4 15.7 16.0 14.8 13.8 0.9 1.7 1.8 2.4 1.8 2.4 17.8 17.3 12.0 13.1 11.6 12.7 2015 2016 2017 2018 2019 Q1-20 T2 T1 CET1 T1 % CAR % CET1 Capital Movements table Risk Weighted Assets USD Bn CET1 Tier 1 Tier 2 Total Denizbank Market Risk Capital as at 31-Dec-2019 Operational Risk Credit Risk 17.8 20.3 1.3 21.6 +1% +75% 116.8 117.4 Net profits generated 0.6 0.6 0.6 34.2 32.2 2019 Dividend (0.7) (0.7) (0.7) 74.4 76.6 8.4 8.4 69.8 66.9 Interest on T1 securities (0.1) (0.1) (0.1) 7.2 7.6 2.5 2.7 7.0 2.1 2.5 6.6 1.1 1.4, Amortisation of T1 (0.1) (0.1) 71.7 74.1 Other (0.3) (0.3) 0.0 (0.3) 59.2 61.4 65.1 66.4 Capital as at 31-Mar-2020 17.3 19.7 1.3 21.1 2015 2016 2017 2018 2019 Q1-20 Financial & Operating Performance 19#20Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) LCR (%) • Q1-20 LCR of 149.7% and AD ratio of 94.8% demonstrate the Group's continuing healthy liquidity 250 AD Ratio (%) 100 196.5 195.3 198.8 188.8 • Liquid assets of USD 30 Bn as at Q1-20 (18% of total liabilities and 200 24% of total deposits) 158.7 160.0 152.9 149.3 149.7 150 • During Q1-20, USD 2.5 Bn of term debt issued in five currencies through two public issues and private placements with maturities out 100 to 20 years 95 95.2 94.8 94.4 50 93.8 94.3 94.0 • 78% of the term liabilities maturing in 2020 re-financed during Q1-20 covering maturities through to July; Only USD 0.7 Bn remaining to be re-financed 92.6 92.1 91.8 0 90 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 LCR (Min. limit 100) AD Ratio Composition of Liabilities/Debt Issued (%) Liabilities (USD 167 Bn) Debt/Sukuk (USD 15.3 Bn) Banks 9% Customer deposits 76% Others 6% Maturity Profile of Debt Issued (USD Bn) Maturity Profile of Debt/ Sukuk Issued USD 15.3 Bn 4.3 Syn bank borrow. 1% DenizBank Club Deal Public & Private Placement 2.0 2.7 Loan secur. 2.3 Debt/Sukuk 9% 0.1% 2.0 0.6 EMTNS 7% Sukuk 1.6 1% 1.1 2.3 1.7 0.7 0.6 *Including cash and deposits with Central Banks but excluding interbank balances and liquid investment securities 2020 2021 2022 2023 2024 2025 2026 - - 2035 Beyond 2035 Financial & Operating Performance 20#21DenizBank Business Overview • • • • • • Business Overview DenizBank contributed total income of USD 614 million and net profit of USD 137 million to the Bank for the first three months in 2020 Operating expenses and impairment allowances amounted to USD 171 million and USD 267 million respectively for the same period Total assets of USD 34.8 billion, net loans of USD 22.9 billion and deposits of USD 25.3 billion at the end of Q1-20 DenizBank is the fifth largest private bank in Turkey with wide presence through a network of 752 branches and 3,000+ ATMs Operates with 708 branches in Turkey and 44 in other territories (Austria, Germany, Bahrain) Full service commercial banking platform of Corporate banking, Retail banking and Treasury Financial Highlights USD Mn** Net interest income Non-interest income Taxation charge Net profit • Servicing around 14 million customers, through 14,000+ employees Segment breakdown Net Loans as at 31-Mar-20 Corporate Banking Consumer Banking 59% 41% All financial numbers post acquisition (1-Aug-19) include the fair value adjustments, unless otherwise stated. **Metrics converted to USD using spot / average exchange rate for balance sheet / income statement DenizBank Better/ Q1-20 Q4-19 (Worse) 428 454 (6)% 186 197 (5)% Total income 614 650 (6)% Operating expenses (171) (227) 25% Pre-impairment operating profit 444 423 5% Impairment allowances (267) (252) (6)% Operating profit 176 172 3% (39) (60) 35% 137 112 23% Cost: income ratio Net interest margin 27.8% 34.9% 7.1% 4.92% 5.06% (0.14)% Financial Highlights (USD Bn**) 7.5 92.7 7.5 96.4 36.5 34.8 26.8 23.3 22.9 25.3 Q4-19 Q1-20 Assets Net Loans Deposits AD Ratio (Unadjusted) NPL Ratio (Unadjusted) Financial & Operating Performance 21#22UAE: private sector credit growth slowed down in Q1 2020 Breakdown of UAE bank credit by economic activity 12 110 % y/y AD Ratio (RHS) Bank Deposits (LHS) % Bank Loans (LHS) Highlights Growth in UAE bank deposits rose 1.3% m/m and 5.9% y/y during March 2020. Non Resident deposits were up 3.9% m/m in March while resident deposits were also slightly up 1.0% m/m. Deposit growth averaged 4.5% in first three months of 2020 Gross loans rose 1.3% m/m in March 2020 and 5.6% y-o-y while bank credit growth averaged 4.8% in first three months of 2020. Private sector credit growth remained modest, reaching 1.3% y/y in March up 0.7% m/m 10 8 6 4 GCC banking market, March 2020 UAE KSA Qatar Kuwait Banking Assets USD Bn Oman 79 235 427 Source: UAE Central Bank, Bloomberg; *ENBD as at 31-Mar-20 excluding DenizBank 713 2 105 100 95 0 90 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 UAE banking market (USD Bn), March 2020* 843 Gross Loans 106 370 476 Deposits 102 396 498 Assets 154 690 Emirates NBD Other Banks 843 Economic Environment 22#23UAE: 2020 GDP forecast revised down • • • Highlights COVID-19 causing significant economic impact on global economy, leading to lower GDP growth The IMF has revised down the annual UAE GDP growth forecast for this year to -3.5% compared to 1.3% expected in 2019. However the uncertainty around the economic impact of C-19 remains high Tourism, hospitality, transportation, logistics, trade, construction and real estate are all anticipated to be adversely affected Residential real estate prices have fallen steadily and further softening is expected during the year The OPEC agreement reached in April is expected to result in a sharp contraction in oil production this year. Negative oil prices reflect the distortion in market and are expected to remain highly volatile UAE GDP growth 6.0 % y/y growth 4.0 UAE oil production and prices mn b/d 3.4 3.2 3.0 2.8 2.6 2.9 2.9 2.9 2.9 2.8 29 30 32 90 80 70 60 50 3.1 3.1 3.1 3.1 3.0 20 10 2322O 40 30 2.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 UAE oil output (LHS) 2019 Brent oil (RHS) Q1 Q2 Q3 Q4 Q1 2020 Residential property prices 50 % y/y growth Dubai Abu Dhabi 40 5.1 2.0 4.4 3.0 0.5 1.7 1.3 133 0.0 -2.0 -3.5 30 3.3 20 10 0 -10 -4.0 -20 2014 2015 2016 2017 2018 2019e* 2020f* 2021f* Source: Bloomberg, BIS, IMF forecasts USD/b Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Economic Environment 23#24Divisional performance (Excluding DenizBank) • • • Retail Banking & Wealth Management RBWM income grew 6% y-o-y due to higher net interest income backed by increased volumes and higher core fee income Liabilities grew by 1% supported by customer campaigns and customer advances were lower by 3% due to reduced activity Low cost CASA to deposit ratio increased to 77% from 75% in previous quarter Balance Sheet Trends USD Bn Income Trends USD Mn +1% +6% -3% 572 572 0% 540 41.7 42.2 360 384 390 • Cost to Income ratio improved to 24.9% from 27.4% y-o-y 12.4 11.9 • Relief measures rolled out for customers to minimize the impact of ongoing COVID-19 pandemic Emirates Islamic • • • • El total income was lower by 3% y-o-y due to a reduction in non-funded and investment income partially offset by increase in funded income supported by balance sheet growth Total assets reached USD 17.1 billion at the end of Q1-20 Financing and Investing Receivables increased by 4% to USD 10.6 billion from end 2019 Customer deposits at USD 12.2 billion broadly flat from end 2019 • CASA balances represented 66% of total customer accounts compared with 63% at the end of 2019 El's headline Financing to Deposit ratio stood at 87% and is comfortably within the management's target range 181 188 183 Q4 19 Loans Q1 20 Deposits Q1 19 Q4 19 Q1 20 NII NFI Balance Sheet Trends USD Bn Income Trends USD Mn -1% -3% +4% 181 +3% 169 175 12.3 12.2 10.2 10.6 121 128 135 60 34 47 Q4 19 Q1 20 Q1 19 Q4 19 Q1 20 Financing receivables NII NFI Customer accounts Divisional Performance 24#25Divisional performance (Excluding DenizBank) Corporate and Institutional Banking ° • CIB income up 2% y-o-y due to a 7% increase in net interest income mainly due to growth in lending activity Fee income declined 12% y-o-y due to lower lending fee, trade commissions and treasury sales, partially off-set by increased investment banking activity The division continued to spend on digitization programs and technology to enhance the Transaction Banking Services product offering Loans grew 3% during the year with stable momentum in lending activity Deposits grew 11% with continued focus on growing CASA balances reflecting the Group's aim to reduce the average cost of funding while maintaining liquidity at an optimum level Global Markets & Treasury • GM&T income declined 95% y-o-y primarily due to the decrease in net Balance Sheet Trends USD Bn Income Trends USD Mn +11% +2% +3% +6% 438 448 422 73.4 75.4 323 40.1 44.6 327 346 • • • interest income on account of lower interest rates. NFI declined 11% y-o-y Trading and Sales desks continued to deliver a solid performance despite significant market volatility During Q1-20, USD 2.5 Bn of term debt issued in five currencies through two public issues and private placements with maturities out to 20 years 78% of the term liabilities maturing in 2020 re-financed during Q1-20 covering maturities through to July; Only USD 0.7 Bn remaining to be re- financed 115 96 102 Q4 19 Q1 20 Q1 19 Q4 19 Q1 20 Loans Deposits NII NFI 82 62 Income Trends USD Mn -95% NII NFI 55 -121% 4 27 24 224 2- -20 -20 -18 Q1 19 Q4 19 Q1 20 Divisional Performance 25#26Get in touch. INVESTOR RELATIONS Emirates NBD Head Office | 4th Floor PO Box 777 | Dubai, UAE [email protected] Tel: +971 4 609 3046 26