#1বে Emirates NBD Investor Presentation H1 2021 September 2021 "CREATE OPPORTUNITIES TO PROSPER"#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 June 2021 USD 189 Bn Total Assets 13 Countries Emirates NBD at a Glance USD 129 Bn Gross Customer Loans 905 Branches USD 125 Bn Total Customer Deposits 17+ million Customers 4th Largest in GCC 56% Government of Dubai Shareholding 2nd Largest in the UAE 40% FOL 11.81% foreign owners as at 24-Aug-2021 -20% Market Share in UAE (Assets, Loans, Deposits) USD 23.6 Bn Market Capitalization* *Market cap as at 24-Aug-21 Emirates NBD Profile 4#5Emirates NBD at a glance Emirates NBD's International Presence Market share in the UAE* ➤ Assets 17.8%; Loans 22.6%; Deposits 20.2% ➤ Largest financial institution in Dubai, 3rd largest in the GCC ➤ Leading retail banking franchise with a branch network of 900+ branches throughout the MENAT region with operations in 13 countries Moscow London 9 Germany 17 Austria Turkey 690 Egypt ➤ Leader in digital banking: 6th best Finance app worldwide by FinTech Magazine 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 as at 30-Jun-21 excluding DenizBank Bahrain 67 7 KSA 109 UAE Mumbai 1 Emirates NBD Emirates NBD Rep. Offices DenizBank Singapore Jakarta Beijing 1 Emirates NBD Profile 5#6Leader in Digital Banking and Innovation • • • • liv. The lifestyle digital bank for millennials - launched its innovative digital credit card offering a truly customized experience, and personal loans to Liv. customers • UAE's largest digital bank with 470K+ customers; adding 10,000 customers every month despite economic slowdown Shifting from a digital bank to first super-app in the region Best-in-class lifestyle offering in partnership with leaders in gaming, entertainment, dining, travel, music, videos, etc. - Launched Liv. Prime a subscription based program that offers customers increased banking privileges as well as a range of exclusive lifestyle based offers. • Also launched accident and health insurance providing coverage for critical illness, disability, hospitalization and accidents at low monthly premiums In KSA, Liv. continues to grow impressively with over 76,000 customers. In KSA, Liv. introduced the ability to convert loyalty points as donation to charities during the holy month of Ramadan Continues to attract millennials as their primary account; strong customer engagement • • . Key Digital Developments • Mobile wallet 'contactless' payments continues to strengthen with 86% of all face-to-face card payment transactions Instant mobile account opening at -26% of all sourcing Enhanced digital security framework with a new time-based OTP authentication for all customers • Integrated website with UAE PASS for seamless digital account opening • Launched Instant Quick Account Opening For UAE National Individual And SME Customers • • Digital business bank E20. live for most of DED licensed entities and continues to scale up Transactions via digital channels Eligible Retail Business customers digitally active Eligible Corporate clients opting for digital platform 98% 78% 91% Emirates NBD Profile 6#7ESG Performance - Key Sustainability Developments Key Environmental developments 'Go Paperless initiative' Community Outreach Philanthropy • Aligned with the Dubai Paperless Strategy • 40% reduction in paper consumption in 2020 78+ initiates with 30 million paper saved, USD 1.1 million saved, 3,750 trees saved, 750 MT carbon reduction Green & Social Banking choices • • . Green Home Loans Green Auto Loans Paperless accounts (Liv. & E-Savings) RTA Credit Card by El Environmentally and socially responsible lending & investment . • • Increased digitization has reduced paper flow Lending to Agriculture up 170% and Education up 8% since Dec-19 Focus on clean energy, food security, vertical farming, mass transit and infrastructure • EmCap successfully closed Islamic Development Bank's first ever USD Sustainability Sukuk • First bank from the Gulf region to issue an ESG-linked syndicated loan Interest and principal deferral support to over 120,000 customers in the UAE • AED • Total Donation: USD 1.3 million Electronic Devices donation USD 110,000 (equivalent) donated to Beit Al Khair Society Volunteering - Exchanger Program • 12,001 kilograms of Marine debris collected via environmental volunteering activities 1,574 Volunteering hours Diversity & Inclusion Disability Friendly Branches (DFBs) & • 62% Branches are accessible with 20 accessibility elements 55 DFBS (43 UAE, 3 KSA, 9 EI) New Assistive Technology to be added at the Expo 2020 Branch Disability Etiquette Training and American Sign Language Workshops • • • 2100+ total staff trained since inception 39 hiring partners from private and government sectors 42 candidates retained in full time jobs during the pandemic Emirates NBD Profile 7#8Stable Shareholder Base and Diversified Business Model Split of ownership - Anchored by the Government of Dubai Ownership structure as at 30 June 2021 Others 39% Investment Capital Assets 5% Balanced asset composition Corporation of Dubai 56% 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 40% from 20% in July 2020 with foreign ownership at 11.81% at 24-Aug-2021 Equity Analysts Coverage % by segment as at 30 June 2021 DenizBank 18% CIB 46% GMT 17% Recommendation In AED Buy Hold Sell 11 1 Target Price 15.3 Price at 23-Aug-2021 13.85 RBWM 10% Islamic Banking 9% EPS 30-June-2021 0.36 Emirates NBD Profile 8#9Emirates NBD is one of the largest banks in the GCC... Total Assets USD Bn, 30-Jun-2021 Total Loans USD Bn, 30-Jun-2021 Total Deposits USD Bn, 30-Jun-2021 Operating Income USD Mn, H1 2021 * QNB 288 * QNB 208 * QNB 207 * QNB 3,624 بنك أبوظبي الأول FAB First Abu Dhabi Bank 257 SNB 136 SNB 157 بنك أبوظبي الأول SNB 3,542 SNB 239 Emirates NBD 129 FAB مصرف الراجحي 157 3,278 Al Rajhi Bank First Abu Dhabi Bank Emirates NBD 189 بنك أبوظبي الأول FAB First Abu Dhabi Bank 113 Emirates NBD 125 مصرف الراجحي مصرف الراجحي 0 مصرف الراجحي Al Rajhi Bank 146 Al Rajhi Bank 106 0 119 Al Rajhi Bank بنك أبوظبي التجاري ADCB 113 بنك أبوظبي التجاري ADCB 68 88 بنك أبو ظبي التجاري ADCB 68 Emirates NBD 3,144 بنك أبوظبي الأول FAB First Abu Dhabi Bank. بنك أبوظبي التجاري ADCB 2,607 1,655 Emirates NBD Profile 9#10...and one of the largest banks in the UAE Operating Income USD Mn, H1 2021 Net Profit USD Mn, H1 2021 بنك أبوظبي الأول Total Loans USD Bn, H1 2021 Coverage Ratio & NPL's (%) 30-Jun 2021 CET-1 Ratio (%) 30-Jun 2021 NPL% Emirates NBD 3,144 FAB 1,459 Emirates NBD 129 Emirates NBD 122.5% 6.3% Emirates NBD 15.6% First Abu Dhabi Bank بنك أبوظبي الأول FAB First Abu Dhabi Banki بنك أبو ظبي التجاري ADCB بنك دبي الإسلامي Dubai Islamic Bank المشرق mashreq مصرف أبوظبي الإسلامي ADIB بنك أبوظبي الأول 2,609 Emirates NBD 1,304 FAB 113 بنك دبي التجاري 118.1% 6.4% Commercial Bank of Dubai First Abu Dhabi Bank 1,656 بنك أبوظبي التجاري ADCB 1,592 بنك دبي الإسلامي Dubai Islamic Bank 782 767 مصرف أبوظبي الإسلامي ADIB 688 بنك أبو ظبي التجاري ADCB 508 بنك دبي الإسلامي Dubai Islamic Bank 302 بنك دبي التجاري 184 Commercial Bank of Dubai مصرف أبو ظبي الإسلامي ADIB المشرق mashreq 88 68 55 المشرق mashreq مصرف أبو ظبي الإسلامي ADIB 24 بنك دبي الإسلامي Dubai Islamic Bank 22 بنك أبوظبي الأول FAB First Abu Dhabi Bank. 117.0% 4.7% 115.2% 8.8% 103.0% 6.3% بنك دبي التجاري 14.5% Commercial Bank of Dubai مصرف أبو ظبي الإسلامي ADIB بنك أبوظبي التجاري ADCB بنك أبوظبي الأول 13.3% 13.2% FAB 13.0% First Abu Dhabi Bank 97.0% 3.9% بنك دبي الإسلامي Dubai Islamic Bank 12.8% Emirates NBD Profile 10#11Strong 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% 18.8% 20.3% 16.5% 9.5% 13.1% 3.2 Operating Revenue '10-'20 CAGR: 8% Net Profit '10-'20 CAGR: 11% 6.3 6.1 4.7 4.1 4.2 4.0 4.0 3.9 3.1 2.7 2.3 1.9 2.0 1.4 0.9 0.7 2.6 2.7 2.8 LLLI 0.6 0.7 2010 2011 2012 2013 2014 ■Operating Revenue (USD Bn) 1.9 1.3 2015 2016 2017 2018 ■Net Profit (USD Bn) 2019 Return on Average Tangible Equity Excl. NI gain for 2019 2020 H1 2021 Emirates NBD Profile 11#12Emirates NBD delivers higher profits in H1 2021 on improving economic conditions Key Metrics 2021 Macro themes H1 2021 2021 Guidance Net Profit USD 1.3bn +17% y-o-y Profit Regional Global NIM Cost to income 32.6% NPL Ratio 6.3% 35% mid-6% Credit Quality 2.45% ↑ 2.40-2.50% UAE non-oil GDP expected to grow by 3.5%, boosting overall economic growth to 1.5% in 2021 UAE is the world's most vaccinated country with 75% of the population fully vaccinated • Improved global indicators of economic and employment activity Accommodative central bank policies and government support measures Coverage Ratio 122.5% CET 1 15.6% Capital Tier 1 17.6% CAR 18.7% Curbs in oil production to weigh on headline GDP growth Continued uncertainty from new variants of Covid-19 LCR 158.8% Travel Liquidity ADR 95.7% Assets Loan Growth -1% 95-100% Low-single Digit restrictions remain a headwind for recovery in the tourism sector • Recent spike in inflation Financial and Operating Performance 12 12#13H1 2021 Financial results highlights Highlights • Total income up 9% over the preceding half year due to increased transactional activity during H1-21 and stable NIMs. Total income down 9% y-o-y as higher non-funded income was offset by decline in net interest income due to lower interest rates - Net interest income remained flat to H2-20 as improved deposit mix offset lower asset yields and declined 12% y-o-y due to lower interest rates and decline in DenizBank NIMS Non-funded income up 41% compared to H2-20 and 2% y-o-y due to higher activity, an increase in foreign exchange and derivative income and higher investment securities income Expenses improved 2% over H2-20 due to earlier management actions. Expenses also improved 6% y-o-y on lower staff and operating costs, and lower costs from DenizBank Impairment allowances of USD 712m down 30% over H2-20 and 38% y-o-y due to improving economic conditions, and following proactive provisioning in 2020 • Net profit of USD 1,304m improved 66% compared to H2-20 and 17% y-o-y on improving economic conditions with DenizBank adding significant diversification to the Group • H1-21 results include DenizBank income of USD 903m and net profit of USD 282m • Net loans down 1% during the year on repayments of corporate loans including loans receiving support and the FX translation impact on DenizBank's loan book • NPL ratio increased marginally to 6.3% and coverage ratio strengthened to 122.5% • Net cost of risk of 114 bps lower than 172bp in H1-20 on improved economic sentiment • LCR of 158.8% demonstrates the Group's healthy liquidity position • CET-1 strong at 15.6% and remains well above CBUAE minimum requirements Key performance indicators USD million H1-21 H1-20 Net interest income 2,220 Non-funded income Total income Operating expenses Pre-impairment operating profit Impairment allowances Operating profit Taxation charge and others Net profit 1,304 Cost: income ratio Net interest margin 32.6% 2.45% USD billion 30-Jun-21 30-Jun-20 924 906 3,144 3,441 (9)% (1,026) (1,090) 6% 2,119 2,351 (10)% 1,833 16% (712) (1,147) 38% (1,015) 30% 1,406 1,204 17% (103) (89) (16)% (34) 1,115 17% 31.7% (90) bps 2.84% (39) bps Inc / (Dec) Better/ (Worse) 2,535 (12)% 2,229 2% H2-20 Better/ (Worse) 0% 654 41% 2,883 9% (1,051) 2% 818 783 36.4% 2.45% 72% (198)% 66% 380 bps 0 bps Inc / 31-Dec-20 (Dec) 189.0 189.2 0% 190.2 (1)% 119.4 120.7 (1)% 120.9 (1)% Deposits 124.8 125.6 (1)% 126.5 (1)% CET-1 (%) 15.6% 15.3% 30 bps 15.0% 60 bps LCR (%) NPL ratio (%) 158.8% 6.3% 152.5% 5.8% 630 bps 50 bps 165.0% 6.2% (620) bps 10 bps Total assets Loans Financial and Operating Performance 13#14Q2 2021 Financial results highlights Highlights Key performance indicators • Total income down 6% y-o-y on lower NIMs and lower non-funded income. Total income down 13% q-o-q on lower non-funded income from DenizBank. USD million Q2-21 Q2-20 - - • • Net interest income declined 7% y-o-y due to lower interest rates and 1% q-o-q Non-funded income down 4% y-o-y and 37% q-o-q on lower foreign exchange and derivative income from hedging and swaps relating to DenizBank Expenses improved 3% y-o-y following earlier cost management actions. Expenses up 2% q-o-q mainly due to incentives related to strong retail growth and higher costs from DenizBank Impairment allowances of USD 232m lower by 48% y-o-y, and 52% q-o-q on improving economic conditions, and following earlier proactive provisioning • Net profit of USD 671m up 22% y-o-y and 6% q-o-q on improving economic conditions with DenizBank adding significant diversification to the Group • Q2-21 results include DenizBank income of USD 347m and net profit of USD 107m • Net loans up USD 0.6bn q-o-q as strong demand for retail loans and renewed growth in corporate and Islamic lending offset the FX translation impact from DenizBank • NPL ratio increased marginally to 6.3% and coverage ratio strengthened to 122.5% • Net cost of risk of 71 bps lower than 134bp in Q2-20 on improved economic sentiment Total assets Net interest income Non-funded income 1,106 Better/ (Worse) 1,190 (7)% Better/ Q1-21 (Worse) 1,114 (1)% 359 375 (4)% 565 (37)% Total income 1,465 1,565 (6)% 1,679 (13)% Operating expenses (517) (532) 3% (509) (2)% Pre-impairment operating profit 948 1,034 (8)% 1,170 (19)% Impairment allowances (232) (450) 48% (480) 52% Operating profit 716 583 23% 690 4% Taxation charge and others (46) (35) (29)% (57) 21% Net profit 671 548 22% 633 6% Cost: income ratio 35.3% Net interest margin 2.44% USD billion 30-Jun-21 31-Dec-20 189.0 34.0% (130) bps 30.3% 2.68% (24) bps Inc / (Dec) 190.2 (1)% 189.4 (500) bps 2.46% (2) bps Inc / 31-Mar-21 (Dec) 0% • LCR of 158.8% demonstrates the Group's healthy liquidity position • CET-1 strong at 15.6% and remains well above CBUAE minimum requirements Loans 119.4 120.9 (1)% 118.8 0% Deposits 124.8 126.5 (1)% 125.1 0% CET-1 (%) 15.6% 15.0% 50 bps 15.6% 0 bps LCR (%) 158.8% NPL ratio (%) 6.3% 165.0% 6.2% (620) bps 165.1% 10 bps 6.1% (630) bps 20 bps Financial and Operating Performance 14#15Net interest income Highlights • Q2-21 NIM declined 2 bps q-o-q to 2.44% as: Net Interest Margin (%) - - Loan yields declined 4 bps reflecting a 1 and 5 bps fall in 1 & 3-month EIBOR Funding costs improved 9 bps on higher CASA balances 3.11 2.83 3.02 Qtrly NIM YTD NIM - Treasury yields declined 6 bps as liquid assets were deployed at lower yields 2.89 - DenizBank margins down 1 bps as earlier rate rises have largely flowed through 2.84 2.77 2.73 • YTD NIM declined 39 bps y-o-y as improved funding costs were more than offset by reduced loan yields due to lower interest rates and lower DenizBank NIMS 2.82 2.65 2.68 2.72 2.48 2.46 • NIM guidance revised up by 5 bps to 2.40-2.50% as margins expected to remain stable for the remainder of the year 2.42 2.45 2.44 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Net Interest Margin Drivers (%) 2.84 0.44 2.51 2.45 0.07 (0.06) (1.08) 0.68 2.40 2.46 (0.06) 0.09 2.44 (0.04) (0.01) H1 20 Loan Yield Deposit Cost Treasury ENBD DenizBank H121 Q1 21 Loan Yield & Other Ex-Deniz Deposit Cost Treasury DenizBank & Other Q2 21 Financial and Operating Performance 15#16Loans and deposits trends Highlights Gross loans grew 1% in Q2-21 with Corporate, Retail and Islamic all registering growth • Gross loans declined 1% in H1-21 due to currency translation of DenizBank's loans Retail lending increased 6% in H1-21 with record demand for personal loans, auto loans and mortgages ⚫ Islamic financing increased 2% during H1-21 • • • Corporate lending declined 1% in H1-21 due to repayments of corporate loans including loans receiving support and borrowers successfully accessing capital market funding DenizBank gross loans and deposits increased 9% and 8% in local currency terms and declined 7% in AED terms due to 17% decline in Turkish lira during H1-21 Deposit mix continued to improve in Q2 with USD 2bn increase in CASA replacing USD 2bn of more expensive Fixed Deposits Trend in Gross Loans by Type (USD billion) DenizBank Corporate -1% Retail Islamic* +1% 127 129 129 130 130 129 129 125 24 23 24 23 23 23 22 22 22 22 23 99 0 76 78 78 79 78 77 78 73 74 11 11 12 11 11 12 2 12 12 13 15 16 16 16 16 17 17 17 17 • CASA deposits are 58% of total Group deposits, with domestic CASA at a record 67% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Total Gross Loans by Sector Trend in Deposits by Type (USD billion) DenizBank Agriculture Construction Trans. & com. Trade Other Sovereign 34% -1% Fin Institutions 0% 6% 2% 4% 3% Hotels and restaurants Manufacturing 128 129 127 3% 4% 5% Mgmt of Cos 2% 100 27 4% Others 20 2 48 50 225 27 22 25 51 49 2215 126 125 25 24 22 126 125 125 45 44 ANN 23 22 2 2 21 2 22 43 38 55 35 Time CASA 20% Personal 50 49 49 4% 11% Services Real estate * Gross Islamic Financing Net of Deferred Income 52 42 4 54 56 56 59 59 80 63 66 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Financial and Operating Performance 16#17Non-funded income Highlights Composition of Non-Funded Income (USD million) • Q2-21 core gross income up 6% y-o-y on higher transaction volumes and increased income from trade finance, brokerage and asset management USD million Q2-21 Q2-20 Better / (Worse) Better / Q1-21 (Worse) • Core gross income declined 28% q-o-q on lower foreign exchange and derivative income from hedging and swaps relating to DenizBank • Investment securities income improved y-o-y and declined q-o-q due to non-recurrence of disposals in Q1-21 Core gross income 495 466 6% 686 (28)% Fees & commission expense (159) (101) (58)% (181) 12% Core income 337 366 (8)% 505 (33)% Property income/(loss) 5 2 135% 2 188% Investment securities & other income 17 7 155% 58 (70)% Total Non-Funded Income 359 375 (4)% 565 (37)% Trend in Core Gross Income (USD million) +6% 686 578 -28% 205 495 466 195 15 387 57 60 25 164 11- 25 56 54-12- 62 29-11- 407 316 350 263 295 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Forex, Rates & Other Brokerage & AM fees Trade finance Fee Income Financial and Operating Performance 17#18Operating expenses Highlights Cost to Income Ratio (%) • Q2-21 expenses improved 3% y-o-y due to lower staff and operating expenses following earlier cost management exercises CI Ratio (YTD) → CI Ratio (QTD) 41.5 Target • Q2-21 expenses up 2% q-o-q due to incentives related to strong retail growth and higher costs from DenizBank • Q2-21 cost to income ratio increased to 35.3% on lower non-funded income, particularly from DenizBank 34.0 35.3 36.4 32.0 30.3 32.6 31.3 33.8 31.8 32.1 • The year-to-date cost to income ratio was 32.6% in H1-21 and is expected to increase in H2 towards the 35% management guidance 31.7 29.7 30.3 29.8 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Operating expenses composition (USD million) -3% 558 532 +2% 493 509 517 309 325 290 304 294 22 22 22 67 18 18 63 65 70 68 160 114 109 139 129 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Staff Occupancy Depreciation & Amortization Other Financial and Operating Performance 18#19Credit quality Highlights Impaired Loan & Coverage Ratios (%) 130 • NPL ratio increased marginally by 0.1% to 6.3% in H1-21 due to stage migrations 125.8 126.6 NPL ratio Coverage ratio 122.5 125.1 125 • Coverage ratio strengthened to 122.5% during H1-21 • H1-21 cost of risk decreased substantially to 114 bps (206 bps for DenizBank and 95120 bps ENBD) from 172 bps (374 bps for DenizBank and 126 bps ENBD) in H1-20 due to improved economic sentiment 120.5 119.6 112.3 116.9 117.3 115 • USD 182m of write backs and recoveries in H1-21 compared to USD 159m during same, period last year 110 6.2 6.3 6.1 5.9 6.0 5.8 • Stage 1 and 2 ECL allowances amount to USD 2.8bn or 2.7% of CRWA 105 5.6 5.5 4.8 100 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Impaired Loans and Impairment Allowances (USD billion) Impaired Loans* Impairment Allowances +8% +13% 8.1 7.5 7.7 7.9 8.1 9.8 9.9 +3% 9.3 9.5 8.8 +1%) 1.3 1.3 1.2 1.2 1.2 1.0 1.1 1.2 1.2 0.8 4.6 4.7 4.9 4.9 5.0 6.1 6.3 6.3 6.5 6.5 0.2 0.3 0.3' 0.2 0.2 0.4 0.4' 0.5 0.5 0.4 1.5 1.5 1.6 1.6 1.7 1.5 1.6 1.7 1.7 1.7 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 DenizBank Core Corporate Retail Islamic *Includes purchase originated credit impaired loans of USD 0.5bn (Dec-20: USD 0.6bn) acquired at fair value Financial and Operating Performance 19#20Impairment allowances and Stage 1, 2 and 3 Coverage Highlights • Stage 1 coverage ratio reduced to 0.9%, or USD 1.0 bn of impairment allowances, due to a combination of improved MEVS and stage migrations Impairment allowances and Coverage % Stage 1 Stage 2 Stage 3 ECL Allowances (USD billion) *ECL to Loan Coverage % . Stage 2 impairment allowances boosted to USD 1.8bn, strengthening the coverage ratio to 21.9%, while Stage 2 loans increased with stage migrations in H1-21 9.9 9.5 1.0 . Stage 3 impairment allowances boosted to USD 6.8bn, strengthening the coverage ratio to 88.4% as NPL ratio increased 0.1% to 6.3% during H1-21 due to stage migrations • The Bank has supported 120,328 customers with USD 2.9 billion of deferrals, of which USD 1.9 billion has been repaid, resulting in net support of USD 1 billion as at 30-Jun-21 ⚫ UAE customers continue to repay support demonstrating improving business sentiment 1.2 1.1 21.1 0.9- 21.9 1.9 1.6 85.7 88.4 6.7 7.0 UAE Customers receiving payment deferrals (USD billion) FY-20 H1-21 FY-20 H1-21 Total Gross Loans FY-20 (USD 130bn) H1-21 (USD 129bn) 2.9 2.8 2.5 2.3 2.3 0.5 1.5 1.1 1.9 6% 7% 88% 87% 6% 6% 1.8 1.4 1.3 1.0 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Repayment Existing Support *Stage 3 coverage adjusted for purchase originated credit impaired loans acquired at fair value Stage 1 Stage 2 Stage 3 Financial and Operating Performance 20 20#21Capital adequacy Highlights • CET-1 ratio improved 0.6% during H1-21 driven by USD 1.3bn of retained earnings which more than offset the 2% increase in RWAS Capitalisation 19.1 19.0 17.9 18.5 18.5 18.7 18.0 17.4 17.9 17.6 16.8 17.3 • • USD 0.5 billion increase in CRWAS relates to new CBUAE methodologies. The remaining increase is due to growth in retail and other lending 14.8 15.3 15.6 15.0 15.6 15.6 21.1 22.1 22.8 22.5 23.0 23.1 Tier 1 ratio and CAR fell slightly in Q2-21 following the issue of $750m Basel-III compliant AT1 notes and retirement of USD 1.1bn of legacy AT1 notes 1.3 1.3 1.3 1.3 1.3 1.4 2.8 2.8 2.8 2.5 • Capital ratios remain well above minimum requirements of 11% CET-1 ratio, 12.5% Tier 1 ratio and 14.5% CAR, with TESS providing further 3% temporary relief until end-2021 Excluding regulatory relief from ECL add-back, CET-1 ratio would be 0.5% lower at 15.1% 17.3 18.3 18.6 18.3 18.8 19.2 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Risk Weighted Assets (USD billion) T1 % CAP % CET1 T2 AT1 CET1 Financial and Operating Performance Capital Movements USD billion CET1 Tier 1 Tier 2 Total Capital as at 31-Dec-2020 18.3 21.1 1.3 22.5 Denizbank Operational Risk Market Risk +2% Credit Risk Net profits generated 1.3 1.3 1.3 117.4 119.8 119.1 121.6 121.1 123.5 Interest on T1 securities (0.1) (0.1) (0.1) 32.2 33.7 31.8 34.6 33.3 33.2 ECL add-back 0.1 0.1 0.1 8.4 8.4 8.4 8.5 8.5 8.5 2.7 2.9 3.6 3.4 2.7 3.5 T1 Issuance 0.7 0.7 Repayment of T1 Instruments (1.1) (1.1) 74.1 74.8 75.4 75.2 76.5 78.3 Other (0.4) (0.4) 0.0 (0.4) Capital as at 30-Jun-2021 19.2 21.7 1.4 23.1 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 21 21#22Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) 200 110 188.8 LCR (%) ADR (%) • LCR of 158.8% and ADR of 95.7% demonstrate the Group's continuing healthy liquidity • Liquid assets* of USD 22.5 billion cover 14% of total liabilities and 18% of deposits • USD 5.5bn issuance in 2021 fully covers this year's maturities and 1/3rd of 2022 maturities LCR % ADR % 180 105 165.0 165.1 149.3 160.0 161.7 158.8 160 152.5 100 149.7 DenizBank issued a USD 410 million multi-currency syndicated loan, the first Turkish bank syndication to include a Renminbi denominated tranche, reflecting DenizBank's increasing appeal amongst international investors 140 55 95 96.1 96.6 120 94.8 95.6 95.0 95.7 00 90 92.1 91.8 92.6 100 85 85 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Maturity profile of Debt Issued (USD billion) Q3 20 Q4 20 Q1 21 Q2 21 Composition of liabilities / Debt issued (%) Liabilities (USD 166.3bn) Debt/Sukuk (USD 17.2bn) Banks 9% Customer deposits 75% Others 6% Debt/Sukuk 10% Maturity Profile of Debt/ Sukuk Issued USD 17.2bn 2.9 0.1 Syn bank borrow. 2.8 2.6 2.7 0.1 0.3 2.6 1% 1.6 Loan secur. 0% 1.7 2.8 1.1 2.7 1.0 0.0 2.3 EMTNS Sukuk 0% 0.7 1.1 0.8 9% 0.3 2021 2022 2023 2024 2025 2026 - 2028 2029 - 2035 Beyond 2036 *Includes cash and deposits with Central Banks, excludes interbank balances and liquid investment securities DenizBank Club Deal Public & Private Placement Financial and Operating Performance 222 22#23Liquidity within the UAE banking system remains healthy Highlights Bank loan and deposit growth 12 110 • The gross advances to deposits ratio for the UAE remained healthy at 92.7% in June 2021 % yly AD Ratio (RHS) Bank Deposits (LHS) 10 • Growth in the UAE bank deposits rose 2.3% y-o-y in June while gross bank lending slowed to -1.2% y-o-y Bank Loans (LHS) % 105 8 6 • Gross loan growth continues to be driven by lending to the public sector, with lending to the private sector declining -2.3% y-o-y 100 4 95 2 0 00 90 -2 -4 85 59 Jan-18 Jun-18 Nov-18 Apr-19 Sep-19 Feb-20 Jul-20 Dec-20 May-21 GCC banking market, June 2021 UAE KSA Qatar Kuwait Banking Assets USD Bn Oman 82 Source: UAE Central Bank, Bloomberg; 249 478 UAE banking market (USD Bn), June 2021 Gross Loans 129 347 477 866 830 Deposits 125 386 511 Assets 188 678 866 ■Emirates NBD ■Other Banks Economic Environment 23#24UAE oil production and prices UAE economy expected to grow to 1.5% in 2021 Highlights • Emirates NBD Research expects the non-oil economy to grow by 3.5% in 2021 However, with oil production likely to rise only gradually in H2 2021, the oil sector is likely to remain a headwind to overall GDP growth this year expected to reach 1.5% • • • Higher economic growth expected this year in all the countries that the Group operates in UAE PMI rose to a two-year high in July as the economy continues to recover from the pandemic crisis • Residential real estate prices and rents in Dubai have risen in H1 2021, with larger units seeing the biggest increases in price • Demand for more space due to working from home, low interest rates, higher loan-to-value limits on mortgages and foreign demand have contributed to the rise in prices • Global oil demand very much in recovery mode in major markets but still far from levels seen prior to the Covid-19 pandemic UAE GDP growth mn b/d 3.4 3.2 6.0 % y/y growth 4.0 2.0 3.0 2.4 1.7 0.0 -2.0 -4.0 -6.0 -8.0 2016 2017 Source: Bloomberg, BIS, * ENBD Research forecasts 4.8 1.5 100 UAE oil output (LHS) Brent oil (RHS) 80 3.0 60 2.8 3.2 2.6 3.0 3.1 3.1 3.1 3.1 3.1 40 2.8 2.9 2.9 2.9 2.4 2.5 2.6 2.7 20 2.2 0 Q1 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 Residential property prices 50 % y/y growth 40 4.3 30 20 10 Dubai Abu Dhabi 0 -10 -6.1 -20 -30 2018 2019 2020e 2021f 2022f Jan-10 Apr-11 Jul-12 Oct-13 Jan-15 Apr-16 Jul-17 Oct-18 Jan-20 Apr-21 Economic Environment USD / b 24 24#25Dubai: property and tourism sectors continues to recover in the second half of the year Highlights Dubai Residential transactions 30,000 27,208 ⚫ Dubai Land Department figures show that property transaction volumes for H1-21 increased 79% compared to H1-20 driven by the strong rise in mortgages 25,000 TH1 2020 TH1 2021 39 . In H1-21, sales values reached USD 39 billion, up 100% compared to H1-20. New supply and population dynamics remain headwinds in the near to medium term 19 20,000 Visitor numbers have continued to recover in the first six months of 2021 reaching 2,500,000 although this is around 70% lower than the number of international visitors to Dubai the same period two years ago • Dubai's hotel occupancy recovered to 61% in the first half of 2021, up significantly from the 46% reading in the same period last year, as hotel operators continue to discount prices to attract back customers • Revenue per available room (RevPAR) was higher for the first half of the year averaging USD 85, higher than the USD 62 average in H1-2020, but still markedly lower than pre-pandemic levels Top visitors by nationality in H1 2021 5,000 0 15,429 15,000 10,000 10,811 Total Value in USD bn 5,425 600 in thousand tourists 500 1,328 1,703 Sales Mortgages Other Dubai occupancy rates and RevPAR 100 ■Jul-Nov 2020 EH1 2021 80 180 400 150 409 286 60 300 120 % 200 40 40 90 210 100 20 131 73 20 26 76.3 78.0 76.6 75.2 60.7 45.9 00 USD 660 33 38 0 100 94 35 0 90 67 12 64 30 30 India Russia KSA USA France Egypt Kazakhstan Germany Source: STR Global, Bloomberg, DTCM, DLD H1 2016 H1 2017 H1 2018 Average hotel occupancy rates (LHS) 0 H1 2019 H1 2020 H1 2021 Average revenue per available room RevPAR (RHS) Economic Environment 25 25#26Divisional performance (excluding DenizBank) Retail Banking & Wealth Management • RBWM income up 3% q-o-q and 9% y-o-y as record acquisition volumes led to improved non-funded income Balance Sheet Trends USD billion Income Trends USD million +3% +9% • Net interest income up 2% q-o-q on improved cost of funding from CASA and 1% lower y-o-y as growth in loan book was offset by impact of earlier interest rate cuts ⚫ NFI remained strong at 33% of the total income for Q2-21 compared to 26% in Q2-20 • Customer advances up 7% in H1-21 due to strong demand for retail products • • Liabilities up 3% with CASA increasing USD 2.8bn, up 8% in H1-21 supported by strong acquisitions and successful customer campaigns Digital adoption strengthened further with 78% of customers now digitally active while Liv. grew its UAE base to 470,000 customers and Liv. KSA growing to 75,000 +7% 537 551 507 +3% 45.0 46.5 364 370 375 12.6 13.4 132 173 181 Q4 20 Loans Q2 21 Deposits Q2 20 Q1 21 NII Q2 21 NFI Emirates Islamic El total income up 5% q-o-q on lower cost of funds and higher foreign exchange revenue Balance Sheet Trends USD billion Income Trends USD million • El total income increased 21% y-o-y due to higher non-funded income +4% • Customer financing at USD 11.3 billion, increased 2% from end 2020 +21% +2% • Customer deposits at USD 13.3 billion, increased 4% from end 2020 165 157 CASA balances represented 78% of customer deposits compared to 69% at end of 2020 ⚫ El's headline Financing to Deposit ratio healthy at 85% 12.8 13.3 +5% 136 11.1 11.3 108 114 114 Q4 20 Q2 21 Financing receivables Customer accounts 48 51 22 Q2 20 Q1 21 Q2 21 NII NFI Divisional Performance 26#27Divisional performance (excluding DenizBank) Corporate and Institutional Banking . CIB income down 2% q-o-q as higher non-funded income from investment banking and trade finance was more than offset by drop in net interest income on lower lending activity • Income down 3% y-o-y as improved non-funded income across products was more than offset by the impact of lower interest rates • Loans down 1% in H1-21 due to repayments of corporate loans, partially offset by new lending and growth in trade finance. Corporate customers also increased access to capital markets in the first half Deposits down 5% as CIB grew CASA base whilst retiring more expensive fixed deposits Emirates NBD Capital led 68 bond and loan transactions in H1-21, raising $50 billion for sovereigns, quasi-sovereigns, corporates and financial institutions from 15 countries in multiple currencies Global Markets & Treasury • GM&T total income down q-o-q and y-o-y due to lower non-funded income whilst net interest income improved by 40% on account of hedging & banking book investments • GM&T NFI declined y-o-y mainly on account of non-recurring gains on hedges Balance Sheet Trends USD billion Income Trends USD million -5% -3% 404 400 390 -1% -2% 75.2 74.5 285 273 331 45.2 43.0 115 117 73 Q4 20 Q2 21 Q2 20 Q1 21 Q2 21 NII NFI Loans Deposits Income Trends USD million • The first bank from the Gulf region to issue an ESG-linked loan, with cost of the USD 1.75 billion facility linked to environmental and social targets 2 48 • GM&T improved the efficiency and cost of the capital base in H1-21, retiring USD 1.1 billion of existing notes and replacing with a $750m issue more efficient AT1 issue 25 2 -23 -19 -49 -17 NII NFI -1 Q2 20 Q1 21 Q2 21 Divisional Performance 27#28DenizBank business overview Business Overview DenizBank contributed total income of USD 903m and net profit of USD 282m to the Group for H1-21 Financial Highlights USD million Q2-21 Q2-20 Better/ (Worse) Q1-21 Better/ (Worse) • DenizBank contributed total income of USD 347m and net profit of USD 107m to the Group for Q2-21 Net interest income Non-funded income 341 378 (10)% 350 (3)% 7 96 (93)% 205 (97)% •⚫ Net interest income down q-o-q on higher funding costs on earlier rate rises. Non-funded income declined q-o-q due to non-recurrence of Q1 MTM gains • Q2-21 net cost of risk of 125 bps compared to 320 bps in Q2-20 and 285 bps in Q1-21 • Total assets of USD 34bn, USD 20bn net loans and USD 22bn deposits at end Q2-21 DenizBank is the fifth largest private bank in Turkey with wide presence through a network of 719 branches servicing around 15m customers through 14,000+ employees • Operating profit Taxation charge Net profit Total income 347 474 (27)% 555 (37)% Operating expenses (157) (154) (2)% (152) (3)% Pre-impairment operating profit 190 320 (41)% 403 (53)% Impairment allowances (61) (178) 66% (180) 66% 129 142 (9)% 224 (42)% (21) (26) 18% (49) (56)% 107 116 (7)% 175 (39)% Cost: income ratio 45.2% 32.4% (12.8)% 27.4% (17.8)% Net interest margin 4.12% 4.40% (0.28)% 4.13% (0.01)% Segment breakdown Financial Highlights (USD billion) 7.0 6.7 Net Loans as at 30-Jun-21 46% 91.2 91.9 Corporate Banking Consumer Banking 35.7 34.3 22.1 23.1 20.4 21.5 Q4-20 Q2-21 54% Assets Net Loans Deposits NPL Ratio (Unadjusted) AD Ratio (Unadjusted) All financial numbers post acquisition (1-Aug-19) include the fair value adjustments, unless otherwise stated. Financial and Operating Performance 28#29Emirates NBD Thank you Investor Relations Emirates NBD Head Office | 4th Floor PO Box 777 | Dubai, UAE [email protected] Tel: +971 4 609 3046 "CREATE OPPORTUNITIES TO PROSPER"