#1Emirates NBD Investor Presentation February 2018 Emirates NBD#2Emirates NBD 2 Important Information Disclaimer The material in this presentation is general background information about the activities of Emirates NBD Bank PJSC (Emirates NBD), current at the date of this presentation, and believed by Emirates NBD to be accurate and true. It is information given in summary form and does not purport to be complete. Some of the information that is relied upon by Emirates NBD is obtained from sources believed to be reliable, but Emirates NBD (nor any of its directors, officers, employees, agents, affiliates or subsidiaries) does not guarantee the accuracy or completeness of such information, and disclaims all liability or responsibility for any loss or damage caused by any act taken as a result of the information. The information in this presentation is not intended to be relied upon as advice or a recommendation to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. An investor should seek independent professional advice when deciding if an investment is appropriate. Due to rounding, numbers and percentages presented throughout this presentation may not add up precisely to the totals provided. Forward Looking Statements Certain matters discussed in this presentation about the future performance of Emirates NBD or members of its group (the Group), including without limitation, future revenues, earnings, strategies, prospects and all other statements that are not purely historical, constitute "forward-looking statements". Such forward-looking statements are based on current expectations or beliefs, as well as assumptions about future events, made from information currently available. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "seek”, “believe”, “will”, “may”, “should”, “would”, “could” or other words of similar meaning. Undue reliance should not be placed on any such statements in making an investment decision, as forward-looking statements, by their nature, are subject to known and unknown risks and uncertainties that could cause actual results, as well as 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, such as 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 statement, including 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.#3Appendix Strategy Financial & Operating Performance | 2.0 M bpd 2.2 3.0 Emirates NBD Profile Operating Environment UAE Economic Update Highlights Oil production declined -1.6% y/y in 2017 to 2.91mn bpd, higher than the OPEC agreed target of 2.87mn. To the extent that we had factored in the lower oil production number in our GDP growth forecast, there is an upside risk to our 2.0% 2017 GDP growth estimate. We expect growth to accelerate to 3.4% in 2018 The Emirates NBD Purchasing Managers' Index (PMI) for the UAE declined to 56.8 in January from 57.7 in December, signaling solid albeit slightly slower non-oil sector growth at the start of 2018. Oil Price and UAE oil production 3.2 2.8 2.6 2.4 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Jan-15 Apr-15 Jul-15 Oct-15 $1-120 Jan-16 Jan-16 Apr-16 UAE Oil Production (LHS) Source: Bloomberg, Emirates NBD Research ICE Brent (RHS) Jul-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 25 75 100 125 60 USD per barrel 60 50 52 62 54 99 56 58 Real GDP growth forecasts Emirates NBD 2013 2014 2015 2016 2017F 2018F S. Arabia 2.7 3.7 4.1 1.7 -0.5 2.5 UAE 4.7 3.3 3.8 3.0 2.0 3.4 Qatar 4.0 3.5 3.3 2.0 2.5 3.0 Kuwait 1.1 0.5 0.6 3.5 -1.2 2.1 Oman 4.4 2.5 4.7 5.4 1.0 2.3 Bahrain 5.4 4.4 2.9 3.0 3.0 3.0 GCC (average) 3.3 3.2 3.6 2.5 0.6 2.8 Egypt 2.1 2.9 4.4 4.3 4.3 4.9 Jordan 2.8 3.1 2.4 2.0 2.8 3.0 Lebanon 3.0 1.8 1.5 2.4 3.1 3.3 Tunisia 2.9 2.3 0.8 1.1 2.1 3.3 Morocco 4.4 2.7 4.5 1.2 4.3 3.7 MENA (average) 2.8 2.7 3.8 3.1 3.7 4.4 Source: Bloomberg, Emirates NBD Research UAE PMI - Non oil private sector activity 50 Jan 15 May 15 Sep 15 Jan 16 May 16 Sep 16 Jan 17 May 17 Sep 17 Jan 18 Source: Markit / Emirates NBD 3#4Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Dubai Economic Update (1/3) Highlights After easing in December, Emirates NBD Dubai Economy Tracker Index (DETI) rose to 56.0 in January mainly on the back of faster output and employment growth. Dubai's economy expanded 3.2% y-o-y in Q1-17. Hospitality (restaurants and hotels) was the fastest growing sector in Dubai at 8.8% followed by Real Estate at 7.2% Composition of Dubai GDP Dubai GDP by Sector (%) - Q1-17 Hosp 6% Others 22% Trade 25% Transportat & Storage 12% Constr. & RE 13% Manuf. 8% Financial services 12% Source: Dubai Statistics Centre Dubai: Key sector growth rates in Q1-17 Emirates NBD Dubai Economy Tracker Index 10.0 9.0 8.0 62 7.0 60 58 6.0 5.0 8.8 4.0 7.2 56 54 3.0 4.8 4.2 3.9 2.0 1.0 52 0.0 50 48 Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17 Jul-17 Dec-17 Source: Markit, Emirates NBD Research Source: Dubai Statistics Centre Hospitality Real Estate Transportatio Social Manufacturing Communication 2.5 0.7 Utilities Emirates NBD 4#5Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Dubai Economic Update (2/3) Highlights Passenger traffic at the Dubai International Airport (DXB) rose to 88.2 million in 2017, up by 5.4% y/y. In December alone, 7.9mn passengers passed through DXB, up by 1.9% y/y. Dubai Airports passenger traffic million people 90 Emirates NBD 5 2700 million tons • Passenger traffic is expected exceed 90 million in 2018, according to Dubai Airports. 70 2300 88.2 83.7 • Dubai's hotel occupancy averaged 77.3% in Jan-Dec 2017 slightly up from 76.9% the same period a year ago. 78.0 50 70.5 66.4 2100 57.7 51.0 • The supply of hotel rooms in Dubai increased by 5.5% y/y in 2017 to 97,546 rooms. The Department of Tourism and Commerce Marketing (DTCM) is targeting 140,000 to 160,000 hotel rooms by the end of the decade Source: Dubai Airports, Emirates NBD Research 30 1900 2011 2012 2013 2014 2015 Passenger traffic (LHS) 2016 Freight volumes (RHS) 2017 Hotel occupancy and RevPAR 100 % 90 80 70 60 50 40 30 Top 10 visitors by nationality in 2017 y/y growth 25 % of total 15.8mn visitors Oct-12 May-13 Dec-13 Jul-14 Feb-15 Sep-15 Apr-16 Nov-16 Jun-17 Average hotel occupancy rates, % (LHS) Average revenue per available room, y/y growth, 3M MA (RHS) Source: STR Global, Emirates NBD Research ន់៦៦៦ ឆ្នំា ១ ៣៩ ៩ ត -5 -10 -15 -20 -25 India 13.1% Saudi Arabia 9.7% Other 44.7% UK 8.0% Oman 5.5% China 4.8% Germany USA 3.2% Iran 3.2% Pakistan 4.0% 3.8% Source: Department of Tourism and Commerce Marketing, Emirates NBD Research 2500#6Emirates NBD Profile Operating Environment Emirates NBD 6 Dubai Economic Update (3/3) Highlights Softness in residential real estate prices continues with apartment prices faring better than villas Apartment prices were down -2.8% y/y in December, compared with -6.8% y/y in December last year. Villa prices fell -14.3% y/y in December Higher interest rates, declining rents and increasing supply are likely to remain headwinds in 2018. Dubai residential real estate prices expected to recover modestly in 2019 and rise further in 2020-2021, according to Phidar Advisory. Residential property prices 350 300 250 200 150 100 50 0 Feb-03 Oct-03 Jun-04 Feb-05 Oct-05 Jun-06 Feb-07 Oct-07 Jun-08 Feb-09 Oct-09 Jun-10 Feb-11 Oct-11 Jun-12 Feb-13 Oct-13 Jun-14 Feb-15 Oct-15 Jun-16 Feb-17 Oct-17- Dubai residential property prices Strategy -12 Financial & Operating Performance | % y/y 63 0 Appendix Apartments ⚫Dubai Source: Bank of International Settlements Dubai transaction volumes Villas 1600 1400 1200 1000 800 600 400 -15 -18 200 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Source: Phidar Advisory, Emirates NBD Research Abu Dhabi Apartments (LHS) Villas (RHS) Jan-14 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 Dec-16 May-17 Oct-17 Source: Phidar Advisory, Emirates NBD Research 200 180 160 140 120 100 60 40 ྣ ༅ ༅ ༈ ཊཿ ༄ 』 ཋ ¥ 8 80#7Appendix Strategy Financial & Operating Performance | Emirates NBD Profile Operating Environment UAE Banking Market Update Highlights Bank loans increased by AED 6.7 bn and 0.4% y/y to AED 1580.7 bn in December. Bank deposits increased by AED 64.4 bn and 4.1% y/y to AED 1627.3 bn in December Although the 3m EIBOR rate has increased in recent months, this has been mostly due to higher USD rates, with the spread over 3m LIBOR narrowing Bank deposit and loan growth AD ratio (RHS) 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% Bank deposits (% y/y) Bank Loans (% y/y) 110% 105% 100% 95% 90% 85% 80% UAE banking market (AED Bn) Gross Loans 304 1287 Deposits 327 1269 1627 Assets 470 2198 1581 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Source: UAE Central Bank; loan growth gross of provisions GCC banking market Banking Assets USD Bn Assets % GDP(3) 734 198 UAE(1) KSA Qatar Kuwait 2695 Bahrain(2) 58 82 Oman Emirates NBD Other Banks 111 Total Source: UAE Central Bank Statistics and ENBD as at December 2017 1) Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2017 forecasted. UAE, KSA, Qatar, Kuwait and Oman as at December 2017; Bahrain as at November 2017. Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts. 375 229 615 89 168 220 222 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Emirates NBD 7#8Appendix Strategy Emirates NBD at a glance A leading bank in the region Market share in the UAE (as at 31 December 2017) - Assets 17.5%; Loans 19.2%; Deposits 20.1% Leading retail banking franchise in the UAE with the largest distribution network, complemented by a best-in-class mobile and online banking platform Fully fledged financial services offerings across retail banking, private banking, wholesale banking, global markets & trading, investment banking, brokerage, asset management, merchant acquiring and cards processing 55.8% indirectly owned by the Government of Dubai through its investment arm (Investment Corporation of Dubai) Credit ratings Financial & Operating Performance Emirates NBD Profile Operating Environment Fitch Ratings Long Term / Short Term Outlook Most Recent Rating Action A+ / F1 Stable M A3 / P-2 Stable Moody's GCAPITAL A+ / A1 intelligence Stable Ratings affirmed (12-Feb-2018) LT ratings upgraded and outlook 'Stable' (16-Jun-16) Emirates NBD 8 Largest branch network in the UAE Dubai 104 Ras al-Khaimah (4) Abu Dhabi 26 Sharjah 18 Umm al-Quwain (2). Other Emirates 11 Total 159 Ajman (2)- Dubai (104) Fujairah (3) - Sharjah (18) Abu Dhabi (26) International presence Ratings affirmed (11-Oct-2017) Branch Rep office Egypt (67 branches)#9Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Key strengths Size One of the largest financial institutions by asset size in the GCC (top 3); 2nd largest in the UAE Flagship Flagship bank for the Government of Dubai and the UAE, playing a strategic role in developing the economy Balance Sheet Well-capitalized with a strong balance sheet that is positioned to grow and deliver outstanding value to its stakeholders Geographic Presence Sizeable footprint in the UAE (with the largest branch network); international presence in Asia, Europe and MENA. Emirates NBD Diversified Offering Fully fledged, diversified financial services offering and regional leader in digital banking Emirates NBD Ownership 56% owned by the Government of Dubai (via Investment Corporation of Dubai) Profitable Consistently profitable, despite low commodity price environment and other regional headwinds 9#10Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Emirates NBD is the regional leader in digital innovation 2012 New Dynamic IVR 2015 Introduced Direct Remit to Pakistan Remit to Pak in just 60 secs Emirates NBD Introduced ENBD Pay NFC based mobile contactless payment service 10 CRM Started multichannel CRM foundation and Mobile Banking vision 2013 Introduced 1st Generation of Mobile Banking App IPO Introduced Direct Remit to Philippines Remit to Phil in just 60 secs Introduced IPO Subscription through ATM, Online and Mobile 04 Inaugurated FutureLab Pepper Robot mePay cardless cash withdrawal Introduced Get Queuing Ticket For the first time in the region Introduced Direct Remit 2 Mobile Cash Remit cash to any Indian Mobile number 2017 liv. Digital Bank for Millennials Introduced The new ITM The First video based interactive teller machine in MENA Introduced mePay Introduced P2P money Introduced Remote Cheque Deposit for the first time outside of US and Canada Investment Portfolio Widgets on Mobile Banking transfer service for Emirates NBD Customers ICCS Collect digital warehousing and processing of cheques 4.5/5 (Avg. Rating) 2014 IVR for SME WU Introduced Western Union Transfers through mobile banking for the first time in the region 5 Introduced Direct Remit to India Remit to India in just 60 secs Introduced Direct Remit 2 Mobile Remit to India Mobile number in just 60 secs Introduced Shake n' Save The First Mobile Savings product in the region Introduced Social Banking Twitter inquiry service for the first time in MENA sm Introduced Direct Remit to Egypt Remit to Egypt in just 60 secs CRM 2016 Introduced Direct Remit to Sri Lanka Remit to SL in just 60 secs CRM Cockpit app smart, paperless and instant banking Introduced SkyShopper FaceBanking 6 th best app worldwide (as ranked by Forrester) EUROMONEY AWARDS FOR EXCELLENCE 2017 Best Digital Bank in the Middle East Introduced InstaLoan The first instant paperless loan disbursal in MENA Introduced Apple Pay Samsung Pay#11Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Emirates NBD is one of the largest banks in the GCC Assets USD Bn, 2017 * QNB بنك أبوظبي الأول Loans USD Bn, 2017 223 13% * QNB بنك أبوظبي الأول Deposits USD Bn, 2017 161 12% * QNB بنك أبوظبي الأول Emirates NBD 11 x% 2017 vs. 2016 Operating Income USD Bn, 2017 161 16% * QNB بنك أبوظبي الأول 6.3 0% FAB 182 3% FAB 90 (1%) FAB 108 4% FAB 5.3 (4%) First Abu Dhabi Bank First Abu Dhabi Bank First Abu Dhabi Bank First Abu Dhabi Bank Emirates NBD 128 5% Emirates NBD 83 88 NCB الأهلي " 118 0% NCB Al Rajhi Bank مصرف الراجحي 91 1% Al Rajhi Bank مصرف الراجحي الأهلي 5% Emirates NBD 89 5% NCB 66 (2%) NCB 62 62 4% الأهلي الأهلي 4.9 5% Al Rajhi Bank 32 82 (2%) |↓ 4.2 مصرف الراجحي 12% Al Rajhi Bank مصرف الراجحي | | ↓ 73 0% Emirates NBD 4.2 5% الوطني الوطني ع الوطني NBK 86 7% NBK 48 7% NBK الوطني 46 9% NBK 2.7 9%#12Emirates NBD Profile Operating Environment Strategy Financial & Operating Performance Appendix Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Revenues Costs +9% +5% 14.4 15.2 14.7 15.5 11.9 4.2 4.4 4.7 4.9 4.8 3.8 10.2 Emirates NBD 12 Profits (AED Bn) Pre-Provision Operating Profits Net Profits +10% 10.1 10.5 10.6 9.9 7.7 6.5 +27% 8.3 7.1 7.2 5.1 3.3 2.6 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Assets and Loans (AED Bn) Assets Loans Deposits and Equity (AED Bn) Deposits +9% +7% 448 470 +9% 407 308 342 363 271 290 304 218 238 246 311 327 287 214 240 258 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Equity +12% 48 45 41 35 31 54 54 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Equity is Tangible Shareholder's Equity excluding Goodwill and Intangibles. All P&L numbers are YTD, all Balance Sheet numbers are at end of period Source: Financial Statements#13Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Emirates NBD delivered a strong set of results in 2017 FY 2017 Key Metrics FY 2017 v. 2017 Guidance 2018 Guidance AED 8.35 Bn Profit Net profit +15% NIM 2018 Macro themes Regional 2.47% 2.45 -2.50% 2.55-2.65% • Cost-to- 31.3% 33% 33% income Credit NPL 6.2% Quality Improving trend Coverage 124.5% Capital * CET 1 16.4% Tier 1 19.7% CAR 22.0% Liquidity AD ratio 93.1% 90-100% 90-100% LCR ratio 146.0% Assets Loan growth 5% mid-single digit mid-single digit * Based on Basel III capital regulations • • Emirates NBD 13 Resilience of UAE • economy underpinned by non-oil activity growth Higher growth in GCC economies Improving liquidity Geo-politics within GCC Strong dollar impact on Dubai tourism Introduction of VAT Global Emirates NBD's balance sheet positioned to benefit from rising interest rates Improved banking system liquidity to support private sector growth Potential Euro area volatility from implementation of Brexit and key government elections •#14Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment FY 2017 Financial Results Emirates NBD 14 Highlights • Net profit of AED 8,346 Mn for FY 2017 improved 15% y-o-y Net interest income improved 7% y-o-y due to 5% loan growth and helped by recent interest rate rises Non-interest income improved 1% y-o-y as higher foreign exchange and derivatives income offset lower gains from the sale of properties Costs improved 1% y-o-y as lower staff costs more than offset an increase in costs both on Marketing and IT relating to our planned investment in digital and technology refresh Provisions of AED 2,229 Mn improved 15% y-o-y as cost of risk continues to normalize on the back of improving asset quality metrics NPL ratio stable at 6.2% and coverage ratio strengthened to 124.5% Liquidity Coverage Ratio (LCR) of 146.0% and AD ratio of 93.1% demonstrates healthy liquidity position NIMS were stable y-o-y as the benefit from rate rises coupled with lower deposit and wholesale funding costs in 2017 offset higher deposit costs experienced in 2016 Key Performance Indicators AED Mn Net interest income Non-interest income Total income FY 2017 FY 2016 Better/ (Worse) 10,786 10,111 7% 4,669 4,637 1% 15,455 14,748 5% Operating expenses (4,844) (4,888) 1% Pre-impairment operating profit 10,611 9,860 8% Impairment allowances Operating profit (2,229) (2,608) 15% 8,382 7,252 16% Share of profits from associates Taxation charge 72 135 (47%) (109) (148) 27% Net profit 8,346 7,239 15% Cost: income ratio (%) Net interest margin (%) 31.3% 33.1% 1.8% 2.47% 2.51% (0.04%) AED Bn 31-Dec-17 31-Dec-16 % 470.4 448.0 5% 304.1 290.4 5% Deposits AD ratio (%) 326.5 310.8 5% 93.1% 93.4% 0.3% NPL ratio (%) 6.2% 6.4% 0.2% Total assets Loans#15Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD Q4-17 Financial Results Highlights Highlights • • Net profit of AED 2,176 Mn for Q4-17 increased 17% y-o-y and declined 4% q-o-q Net interest income improved 14% y-o-y due to loan growth and helped by recent interest rate rises. Net interest income was flat q-o-q Non-interest income improved 24% y-o-y and 7% q-o-q due to higher income from bancassurance and the sale of investments Costs were higher by 4% q-o-q on an increase in Marketing and IT costs relating to our planned investment in digital and technology refresh Provisions of AED 537 Mn are higher 27% y-o-y and 24% q-o-q NPL ratio stable at 6.2% and coverage ratio strengthened to 124.5% Liquidity Coverage Ratio (LCR) of 146.0% and AD ratio of 93.1% demonstrates healthy liquidity position NIMs widened y-o-y helped by rate rises and improved funding costs and declined q-o-q due to competition for liquidity over year-end Key Performance Indicators AED Mn Better / Q4-17 Q4-16 Q3-17 (Worse) Better / (Worse) Net interest income Non-interest income Total income 2,795 2,460 14% 2,806 (0%) 1,241 1,003 24% 1,160 7% 4,037 3,463 17% 3,965 2% Operating expenses (1,322) (1,194) (11%) (1,270) (4%) Pre-impairment 2,715 2,269 20% 2,696 1% operating profit Impairment allowances (537) (424) (27%) (431) (24%) Operating profit 2,178 1,845 18% 2,264 (4%) Share of profits from 18 49 (64%) 42 (57%) associates Taxation charge (20) (37) 46% (30) 34% Net profit 2,176 1,857 17% 2,276 (4%) Cost: income ratio (%) Net interest margin (%) 32.7% 34.5% 1.7% 32.0% (0.7%) 2.51% 2.29% 0.22% 2.56% (0.05%) AED Bn Total assets 470.4 448.0 5% 461.1 2% Loans 304.1 290.4 5% 304.1 0% Deposits 326.5 310.8 5% 322.1 1% AD ratio (%) 93.1% 93.4% 0.3% 94.4% 1.3% NPL ratio (%) 6.2% 6.4% 0.2% 6.1% (0.1%) 31-Dec-17 31-Dec-16 % 30-Sep-17 % 15#16Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Net Interest Income Highlights NIMS showed an improving trend in 2017, as rate rises flowed through to the loan book and liquidity conditions improved Net Interest Margin (%) 2.85 2.82 Q4-17 NIM of 2.51% improved 22 bps y-o-y Loan yields improved 2 bps y-o-y and held steady q-o-q helped by recent interest rate rises Funding costs adversely impacted margins in Q4 reflecting higher premium for liquidity over year end. Bank successfully prefunded expensive debt maturing in Q1-18 by issuing a $750 Mn 5-year senior bond in November 2018 NIM guidance raised to 2.55-2.65% as we expect improvement in funding costs coupled with further benefit from anticipated rate rises Net Interest Margin Drivers (%) Q4-17 vs. Q3-17 2.56 0.00- -0.00 Emirates NBD 16 2.62 2.62 2.58 2.54 2.56 2.51 2.51 2.49 2.46 2.55 - 2.41 2.47 2.44 2.33. 2.29 Q415 Q116 Q216 Q316 Q416 Q1 17 Q2 17 Q3 17 Q4 17 Qtrly NIM YTD NIM FY 2017 vs. FY 2016 2.51 0.02 (0.03) (0.05) 2.51 (0.04) 2.47 Q3 17 Loan Yield Deposit Cost Treasury & Other Q4 17 Q4-16 Loan Yield Deposit Cost Treasury & Other Q4-17#17Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Non-Interest Income Highlights Core fee income improved 9% y-o-y driven by growth in foreign exchange and derivative income, bancassurance, credit card and trade finance income Non-interest income improved 1% y-o-y as higher core fee income offset lower gains from the sale of properties and investments Income from property declined 129% y-o-y due to a downward revaluation of illiquid inventory Investment securities & other income was 9% lower y-o-y due to lower income from dividend and investment securities sales Composition of Non Interest Income (AED Mn) AED Mn Core gross fee income Better / (Worse) 9% FY 2017 FY 2016 5,325 4,889 Fees & commission expense Core fee income (981) (886) (11%) 4,344 4,003 9% Property income/(loss) (60) 210 (129%) Investment securities & other income Total Non Interest Income 386 424 (9%) 4,669 4,637 1% Trend in Core Gross Fee Income (AED Mn) +23% 1,373 1,283 1,338 1,332 (0%) 1,078 410 302 347 328 101 42 52 42 54 29 777 749 766 776 795 160 162 Q4 16 Q1 17 174 162 180 Q2 17 Q3 17 Q4 17 Forex, Rates & Other Fee Income Brokerage & AM fees Trade finance Emirates NBD 17#18Operating Environment Emirates NBD Operating Costs and Efficiency Highlights FY 2017 costs improved 1% y-o-y as lower staff costs more than offset an increase in costs both on Marketing and IT relating to our planned investment in digital and technology Costs increased 4% q-o-q in Q4-17 due to and an increase in IT and related staff costs as signaled earlier Costs expected to be within 2018 guidance of 33% as we continue our digital investment and IT transformation Cost to Income Ratio (%) ..........32.6...... 33.7 34.5 32.8. 32.0 33.1 32.0 31.3 32.3 32.0 32.7 $30.9 30.8 30.2 30.9 29.6 Q1 16 Q2 16 Q3 16 ■■■■■ Target Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 CI Ratio (YTD) CI Ratio Appendix Strategy Financial & Operating Performance Emirates NBD Profile Cost Composition (AED Mn) 1,194 1,270 1,322 1,116 1,136 +4% 765 797 737 738 732 93 88 89 100 86 91 98 108 90 91 269 202 222 314 329 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Staff Cost Occupancy Cost Depr & Amort Other Cost 18#19Credit Quality Highlights • • • NPL ratio improved to 6.2% during 2017 Impaired loans were steady at AED 20.3 Bn during 2017 helped by AED 1,777 Mn of write backs & recoveries FY 2017 cost of risk at 68 bps continued to moderate as net impairment charge of AED 2,229 Mn improved 15% y-o-y • Coverage ratio strong at 124.5% Total portfolio impairment allowances amount to AED 7.6 Bn or 3.20% of credit RWA Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Emirates NBD 19 Impaired Loan & Coverage Ratios (%) 120.1 122.5 123.5 124.9 124.5 111.5 99.6 76.1 66.2 - 59.8 57.5 '49.4 43.4 13.9 4.3 4.0 3.6 7.9 7.1 6.4 6.3 6.1 6.1 6.2 9.5 10.3 10.3 Q4 11 Q4 12 Q4 13 Q4 14 Q4 15 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Impact of DW % NPL ratio Coverage ratio, excl. DW % Coverage ratio Impaired Loans and Impairment Allowances (AED Bn) Impaired Loans 14.3 14.1 13.8 14.0 13.7 13.8 13.7 14.0 +1% 21.0 20.4 20.1 20.3 20.1 20.2 20.1 20.3 +1% 23.9 24.1 24.3 24.3 24.7 24.9 25.2 25.3 Impairment Allowances 18.0 18.5 18.5 18.7 19.1 19.3 19.3 19.7 0.7 0.6 0.7 0.7 0.7 0.7 0.7 5.9 5.5 0.1 5.6 0.1 5.5 0.1 5.6 0.1 5.6 0.1 5.6 0.1 0.8 5.5 0.1 0.8 0.8 0.8 0.8 0.8 0.8' 0.9 0.9 5.0 4.8 0.1 5.0 4.8 4.7 0.1 0.1- -0.1 0.1 0.1 4.7 -0.1. 4.9 0.0 4.6 -0.0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Core Corporate Retail Islamic Other Debt Securities#20Capital Adequacy Emirates NBD 20 Highlights In Q4-17, Tier 1 ratio improved by 0.7% to 19.5% and CAR increased by 0.7% to 21.9% Capitalisation - Basel II 21.9 21.2 20.2 20.7 21.2 19.5 Increase in Tier 1 capital from retained earning more than offsetting modest increase in risk weighted assets 18.3 18.7 17.8' 18.8 54.4 53.4 55.3 57.6 59.5 Under the Basel III framework: - Common Equity Tier 1 ratio is 16.4% Tier 1 ratio is 19.7% 6.5 6.4 6.4 6.5 6.5 47.8 47.0 48.9 51.1 53.0 Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment - Total Capital ratio is 22.0% Emirates NBD has been designated a Domestically Systemically Important Bank. Additional D-SIB buffer of 0.75% for 2017 rising to 1.5% by 2019 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 T2 T1 T1 % CAR % Capital Movements – Basel II Risk Weighted Assets - Basel II (AED Bn) AED Bn Capital as at 31-Dec-2016 Net profits generated FY 2016 dividend paid Tier 1 Issuance/Repayment Tier 2 Issuance/Repayment Amortisation of Tier 2 Interest on T1 securities Other Tier 1 Tier 2 Total +6% 47.8 6.5 54.4 8.4 8.4 256.2 263.8 267.1 271.6 272.0 (2.2) (2.2) 25.7 -5.0 25.7 7.3 25.7 25.7 8.4 -7.3 26.4 7.8 I 225.4 230.9 233.0 238.6 237.8 (0.6) (0.6) Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 (0.4) (0.1) (0.4) Capital as at 31-Dec-2017 53.0 6.5 59.5 Operational Risk Market Risk Credit Risk#21Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD 21 Funding and Liquidity Highlights • Liquidity Coverage Ratio (LCR) of 146.0% and AD ratio of 93.1% demonstrates healthy liquidity position Liquid assets of AED 71.9 Bn as at Q4-17 (17.5% of total liabilities) Debt & Sukuk term funding represent 11% of total liabilities • In 2017, AED 10.2 Bn of term-debt issued in maturities out to 20 years Advances to Deposit (AD) Ratio (%) 118.5 98.1 currencies with 105.1 102.0 99.5 95.9 96.1 95.2 94.2 95.0 94.4 92.8 93.4 92.5 93.1 Maturities of AED 5.9 billion in 2018 allow the Group ability to consider public and private debt issues opportunistically Q4 Q4 Q4 Q4 Q4 09 8 22 Q4 Q4 Q1 Q2 Q3 Q4 10 11 12 13 14 15 16 16 16 16 17 1875 187 Q1 Q2 Q3 Q4 17 17 Target range AD Ratio Composition of Liabilities/Debt Issued (%) Liabilities (AED 411 Bn) Debt/Sukuk (AED 45.3 Bn) Maturity Profile of Debt Issued (AED Bn) Maturity Profile of Debt/Sukuk Issued AED 45.3 Bn Customer deposits 80% Banks 5% Others 4% Debt/Sukuk 11% EMTNS 8% Syn bank borrow. 2% 13.3 Loan secur. 0% Sukuk 7.2 5.9 1% 7.9 5.4 ميل 3.7 0.5 0.2 0.1 0.8 0.3 0.2 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2032 2037 *Including cash and deposits with Central Banks but excluding interbank balances and liquid investment securities#22Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance Emirates NBD 22 Loan and Deposit Trends Highlights Gross loans grew 5% in 2017 with growth mainly from corporate lending Corporate lending grew 7% in 2017 due to growth in real estate, services and trade sectors Consumer lending grew 3% in 2017 with growth in credit cards and mortgages Islamic financing contracted 3% in 2017 due to a slowdown in new business as Emirates Islamic tightened underwriting standards Deposits grew 5% in 2017 with higher growth in fixed deposits in Q4 reflecting competition for liquidity over year-end CASA deposits represent 55% of total deposits Trend in Gross Loans by Type (AED Bn) 33 +5% 329 329 329 320 310 314 315 303 294 285 215 221 225 226 227 233 242 242 243 209 29 30 30 31 33 35 35 35 =4 34 35 46 48 51 54 54 53 52 52 53 51 1 0. 0 -0 -0. 0. -0 0 -0 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Corporate Islamic* Treasury/Other Consumer 33 Trend in Deposits by Type (AED Bn) * Gross Islamic Financing Net of Deferred Income +5% 312 311 319 320 322 327 287 269 པླ☁ 291 298 7 133 133 131 132 141 99 121 113 122 135 164 160 172 169 172 169 179 181 181 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Other Time CASA 183 178#23Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD 23 Loan Composition Total Gross Loans (AED 329 bn) Treasury/Other Retail Corporate 35 103 (31%) (11%) 0 Corporate Loans (AED 103 bn) Cont. Trans. & com. 2% Trade 6% RE 13% 34% Sovereign 141 (43%) (0%) Retail Loans (AED 35 bn) Others Manuf. 6% 5% 51 (15%) Others** 1% Islamic* Per. - Corp. 5% 3% Serv. 12% Hotels/Rest. 13% Fin. Inst. Mgmt. of Cos. 10% Overdrafts Personal 9% 31% Car Loans 12% Islamic* Loans (AED 51 bn) RE 18% Mgmt. of Cos. 1% Fin Inst 5% Personal 48% 3% Serv. 4% Others** 3% Manuf. 4% 12% 2% Trade 17% 19% Credit Cards 3% Mortgages Time Loans * Islamic loans net of deferred income; **Others include Agriculture & allied activities and Mining & quarrying Cont. Trans. & com.#24Appendix Emirates NBD Divisional Performance Wealth Management Revenues increased 11% y-o-y Net interest income grew 17% led by liabilities. Fee income grew 1% supported by wealth, FX and cards and accounts for 35% of total RBWM revenue Loan growth was flat as growth in credit cards and mortgages was offset by a decline in micro-SME balances RBWM continued to lead the market in digital and innovation with the launch of Liv., the UAE's first digital bank targeted at millennials; FaceBanking video banking service; and EVA, the region's first voice-based virtual chatbot Balance Sheet Trends AED Bn Revenue Trends AED Mn -3% 0% +11% 141.6 137.1 6,833 6,171 2,419 2,388 38.7 38.8 4,414 3,783 Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Retail Banking & Emirates Islamic The bank continues to optimize its distribution network with 583 ATMs and 95 branches as at 31-Dec-17 2016 2017 2016 2017 Loans Deposits NFI NII El achieved a record net profit of AED 702 million in Balance Sheet Trends 2017, a six-fold improvement from 2016 Revenue Trends AED Bn AED Mn +2% Financing receivables declined 7% to AED 34 billion in 2017 due to a slowdown in new business as El tightened underwriting standards -4% -7% 2,495 2,392 41.1 41.8 36.3 736 33.8 765 Customer accounts grew 2% to AED 42 billion as El focused on improving liability mix and cost of funding. CASA now represents 81% of El's customer deposits As at 31-Dec-17, El had 64 branches and an ATM & CDM network of 203 1,759 1,627 2016 2017 2016 2017 Financing receivables Customer accounts NFI NII 24#25Emirates NBD Divisional Performance (cont'd) Wholesale Banking Wholesale Banking revenues increased 16% y-o-y Loans grew 7% in 2017 due to growth in real estate, services and trade sectors. Deposits up 19% in 2017 Net Interest Income grew 19% y-o-y driven by an improvement in margins and growth in lending activity Fee income grew 6% y-o-y mainly due to growth in loans and trade finance Focus in 2017 was on enhancing customer service quality in key sectors, share of wallet, increased cross- sell of Treasury and Investment Banking products and larger Cash Management and Trade Finance penetration Balance Sheet Trends AED Bn 211.5 +19% +7% 227.1 Revenue Trends AED Mn +16% 4,979 4,298 1,283 1,206 118.9 100.1 3,695 3,092 Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Global Markets & Treasury • • GM&T revenues increased 106% y-o-y Revenue growth helped by Balance Sheet positioning to take advantage of rate rises Sales revenue from FX increased on higher volumes due to enhanced product capability and closer working relationship with Corporate & Institutional clients Raised AED 10.2 billion of term funding through private placements with maturities out to twenty years, a US$750m 5-year benchmark issue and a 10-year Australian dollar deal 2016 Loans 2017 2016 2017 Deposits NFI NII Revenue Trends AED Mn +106% 782 380 528 464 254 -83 2016 2017 NFI NII 25#26Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD's core strategy is focused on the following building blocks Key Objective Deliver an excellent customer experience (with digital being the focus) Strategic Run an Levers Drive core business efficient organization Enablers Build a high performing organization Drive geographic expansion Emirates NBD 26#27Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Highlights of strategic achievements in 2017 2 3 2017 Strategic Priorities Deliver an excellent customer experience Drive core business Run an efficient organization • • • • Reinforce ENBD's position as a digital innovator in the region via Best-in-class online, mobile banking services New digital channels, products, capabilities Digital platforms for seamless service to Corporates Gain market share across Retail products Rebalance Islamic franchise for profitable growth Diversify wholesale banking loans portfolio Grow fee income via improved Transaction Banking, Treasury and online offerings Transform the IT platform to increase agility and enable digital banking Streamline and automate key processes for end-to- end digitization Optimize risk return matrix and lower cost of risk Alignment of KPIs and optimization of governance structures for better collaboration Key Achievements • Won several awards including Most Innovative Financial Services Organization of the Year globally, at BAI Global Innovation Awards 2017 Launched Liv., the first digital bank for millennials centred on lifestyle • • • . • • • • • 60% of Corporate cheques deposited online using ICCS collect product Other key innovations - EVA, SkyShopper, FaceBanking RBWM CASA balances up 6%; over AED 2 bn disbursals in home loans Introduced Samsung Pay and Apple Pay, expanding digital offering suite Emirates Islamic recorded 565% YOY growth in Net Profits Engaged more Corporates on fee drivers with growth in payments volumes (11% YOY) and higher non-funded income (8% YOY) Committed an AED 1 bn investment towards digital transformation (invested over next 3 years) Achieved service milestones - increased self-service (12% drop in branch transactions), introduction of paperless personal loan applications through tablets (two-thirds of sourcing) Commenced development of state-of-the-art Wholesale Banking CRM 5 Drive geographic expansion • . Sustain growth and deepen footprint in Egypt Catalyze growth in other offshore locations Continue to evaluate potential organic and inorganic opportunities in selected markets • • Build a high performing organization Continue to drive nationalization efforts and develop local leadership talent Focus on performance management and employee engagement (People management capabilities, reward systems, impactful action) • Commenced branch operations in India in November, 2017 Expedited work on opening of three new branches in KSA (Q1, 2018) International assets grew by 3% YOY • • Received approval to open a Representative Office in Turkey to focus on Fl and Corporates Many key strategic roles in the Group were filled by senior Nationals New performance model in line with Group's digital and agile agenda was successfully piloted. Emirates NBD engagement level in 2017 was 62%, which is higher than GCC Commercial Banks (52%) and Global Commercial Banks (61%). Emirates NBD 27#28Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance 3 Strategic priorities for 2018 Pillars of our strategy Key focus areas Emirates NBD 28 Deliver an excellent customer experience (with digital being the focus) Continue to deliver superior customer experience and lead digital innovation in the region via • Prudent investments in to new digital opportunities while continuing to develop existing ones (e.g. Liv) • Continued efforts to upgrade digital banking services for Corporates 2 Drive core business Run an efficient organization • Drive geographic expansion • • Strengthen core business streams by increasing cross-sell and market share (Retail Banking), diversifying the loan portfolio (Wholesale Banking), and sustaining profitable growth (Islamic franchise) Increase fee and commission income via improved Transaction Banking, Treasury and online offerings . • Continue efforts to transform organization-wide IT platform to increase agility and accelerate digital innovation Streamline and automate key processes for end-to-end digitization • Continue improving organization-wide efficiency drivers -low cost of risk, optimal capital allocation and better cross- functional collaboration • Meet all new regulatory requirements (VAT, IFRS 9, BASEL III etc.) Sustain our growth path in Egypt, and develop other offshore locations (focus on newly opened India branch, accelerate KSA growth with three new branches) Catalyze growth in current international markets by focusing on cross border trade and other opportunities Continue to evaluate potential organic and inorganic opportunities in selected markets 5 Build a high performing organization • . Develop and execute Nationalization strategy in line with new point system mandated by UAE Central Bank. Launch and roll out the new performance philosophy, aligned with the Group's digital and agile strategy, which is aimed at facilitating a high performance and collaborative culture. • Invest in leadership development to equip staff to engage and inspire their teams.#29Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance 2017 Selected Awards GULF BUSINESS AWARDS 2017 The Banker Top 500 Banking Brands Emirates NBD emeafinance THE ASIAN BANKER® STRATEGIC BUSINESS INTELLIGENCE FOR THE FINANCIAL SERVICES COMMUNITY 'Banking Company of the Year' and 'Bank of the Year - UAE 2016' 'Top banking brand in the UAE' 'Best Local Investment Bank' and 'Best equity house in the Middle East' 'Best Private Wealth Bank in the UAE', 'Best Retail Bank in UAE' and 'Auto Loan Product of the Year in Asia Pacific' PRIVATE BANKER INTERNATIONAL The Banker GLOBAL FINANCIAL INTELLIGENCE SINCE 1926 BAI Ⓡ yc yallacompare 'Outstanding Global Private Bank Middle East' - 'Bank of the Year - UAE 2017' 'Most Innovative Financial Services Organization of the Year' 'Islamic Personal Finance Provider of the Year' Emirates Islamic Banker MIDDLE EAST PRODUCT AWARDS 'Best Retail Customer Service' and 'Best Online Banking Services' EUROMONEY AWARDS FOR EXCELLENCE 2017 'Best Digital Bank in the Middle East', Best Bank in the UAE' BANKING & FINANCE RETAIL BANKING AWARDS 2017 Gulf Customer Experience Awards 'UAE Domestic Cash Management Bank of the year' 'best Customer Experience Team' 29#30Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance Large Deals Concluded in 2017 Emirates NBD 30 Eastern and South African Trade and Development Bank USD 236,000,000 AND EUR 59,100,000 TDB Dual Tranche Dual Currency Syndicated Term Facilities December 2017 Mandated Lead Arranger and Bookrunner, Documentation Agent and Structuring Bank Emirates NBD Gems Menasa (Cayman) Limited Usd 1,250,000,000 GEMS EDUCATION Dual Currency Dual Tranche Conventional and Islamic Facilities December 2017 Initial Mandated Lead Arranger, Bookrunner And Underwriter Emirates NBD Emirates Reit USD 400m m..m Emirates Reit 5 yr Sukuk December 2017 Joint Lead Manager & Bookrunner Emirates NBD Mercuria Energy Trading PTE. LTD. and Mercuria Asia Group Holdings PTE. LTD. USD 131,000,000 AND EUR USD 740,000,000 Emirates NBD USD 750m MERCURIA Syndicated Revolving Credit Facility November 2017 Bookrunning Mandated Lead Arranger Emirates NBD Emirates NBD 5 year Bond November 2017 Joint Lead Manager & Bookrunner Emirates NBD Arab Petroleum Investments Corporation USD 500m Investment Corporation of Dubai USD 200m Tap on existing USD 300m Bond Türkiye İş Bankası A.Ş USD 500m Tap on existing USD 750m Bond Etihad Airways Pjsc USD 300,000,000 الاتحاد Meraas USD 400m + USD 200m Tap ابيكورب APICORP 5 year Sukuk October 2017 Joint Lead Manager & Joint Bookrunner Emirates NBD As of end December 2017 INVESTMENT CORPORATION OF DUBAI 10 year Bond TÜRKİYE October2017 Joint Lead Manager & Joint Bookrunner BANKASI 7 year Bond October 2017 Joint Lead Manager & Joint Bookrunner ETIHAD AIRWAYS Murabaha Financing Facility August 2017 Murabaha Arranger MERAAS 1 راس Joint Lead Manager & Joint Bookrunner May & August 2017 5 yr Sukuk Emirates NBD Emirates NBD Emirates NBD Emirates NBD#31+ Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] Emirates NBD