#1Emirates NBD Investor Presentation June 2015 Emirates NBD#2Important Information Emirates NBD 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. 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. 2#3Emirates NBD Profile Operating Environment UAE Economic Overview Highlights Any Non-oil sector growth remains robust, underpinned by infrastructure spending and growth in key trading partners. Oil production in Q1 2015 was 1.2% higher y/y at just under 2.8mn bpd, according to Bloomberg estimates. increase, if sustained, would be a potential upside to our 4.3% growth forecast which had assumed flat oil output. PMI readings have eased in Q1 2015, but remain well above the neutral 50-level. Export order growth has remained very strong, supported by regional demand. Country UAE China Appendix Strategy M bpd Financial Operating Performance 0.5 0.0 Dec-10 UAE Oil Production 3.5 3.0 2.5 2.0 1.5- 1.0- Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 UAE Oil Production (lhs) Source: Bloomberg, Emirates NBD Research OPEC oil price (rhs) Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 140 120 100 ུ 8 ༅ ⌘ ྴ °༠ 80 USD per barrel 58 56 56 556 54 52 54 50 Aug-09 Source: Markit/HSBC 62 22 60 60 Real GDP Growth Forecasts Emirates NBD 2010 2011 2012 2013 2014F 2015F 1.6% 4.9% 4.7% 5.2% 4.5% 4.3% 10.4% 9.3% 7.7% 7.7% 7.4% 7.0% Eurozone 1.9% 1.6% -0.7% -0.4% 0.8% 1.5% Hong Kong 6.8% 4.8% 1.5% 2.9% 2.2% 2.7% India 9.4% 7.7% 4.8% 4.7% 4.8% 5.5% Japan 4.7% -0.5% 1.8% 1.6% 0.5% 1.5% Singapore 15.4% 5.3% 2.5% 3.9% 2.8% 3.2% UK 1.9% 1.6% 0.7% 1.7% 3.0% 2.5% US 2.5% 1.6% 2.3% 2.2% 2.0% 3.5% Saudi 4.8% 10.0% 5.4% 2.7% 3.6% 3.0% Source: Bloomberg, Emirates NBD Research UAE PMI - Non Oil Private Sector Activity Nov-09 Feb-10 May-10 Aug-10 Nov-10 Nov-10 Feb-11 Feb-11 Aug-11 May-11 Aug-11 Nov-11 Nov-11 Feb-12 May-11 May-12 May-12 Aug-12 Nov-12 Feb-13 May 12 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 3#4Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Dubai Economic Overview (1/3) Highlights Highly diversified economy and key contributor to UAE's non-oil sector growth. Limited impact from oil price decline: 2014 growth forecast retained at 5.0% and 2015 forecast revised slightly down to 4.7% (from 5%). and Transport, logistics, manufacturing, construction financial services are expected to be key growth drivers for Dubai in 2015. Growth also expected to be underpinned by investment in infrastructure ahead of Expo 2020, as well as improving external conditions. % y/y -4% Composition of Dubai GDP Dubai GDP by Sector (%) - 2013 Other 5% Hosp. 5% Financial Trade servcs. 29% 11% Transport, comm. 15% Manuf. 14% Constr. & RE 21% Source: Dubai Statistics Centre, Emirates NBD Research % y/y Dubai: Real GDP growth Emirates NBD 6% 5.0% 4.6% 4.7% 4.1% 3.5% 3.5% 4% 3.0% 2% 0% -2% -4.3% -6% 2008 2009 2010 2011 2012 2013 2014f 2015f Source: Dubai Statistics Centre, Emirates NBD Research Dubai's Fastest Growing Sectors Manuf Fin. Serv. Trans. & Comm. Hospitality Trade Constr. & RE 25050525 15 10 -5 -10 -15 -20 2010 2011 2012 2013 Source: Dubai Statistics Centre, Emirates NBD Research 4#5Appendix Strategy Financial & Operating Performance 100% 80% 60% 40% 20% 0% -20% -40% Feb-12 May-12 Aug-12 Emirates NBD Profile Operating Environment Dubai Economic Overview (2/3) Highlights Tourism continues to be a key driver of Dubai's growth with Dubai International Airport, the world's busiest international hub, enjoying strong passenger growth of 6.0% in 2014 despite major runway refurbishment in May-July. • Growth in passenger numbers slowed to -5.0% y/y in March 2015, as the number of Russian/ CIS passengers declined by more than a third relative to a year ago. Increased supply of rooms in the hotel sector, and a strong USD have contributed to a -7.7% y/y decline in RevPAR (Feb 2015). Hotel occupancy stood at 86.2% in February, just 2% lower y/y. Mn 7 654 3 210 Hotel Occupancy and RevPAR Nov-12 Feb-13 May-13 Aug-13 . RevPAR (% y/y) Hotel Occupancy (%) Source: STR Global, Emirates NBD Research Nov-13 Feb-14 May-14 - Aug-14 Nov-14 Feb-15 Dubai Airports Passenger Traffic Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Passenger traffic (Mn people) (lhs) Source: Dubai Airports, Emirates NBD Research Passenger traffic (% y/y) (rhs) Dubai: External Trade Growth Trends Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 1,000 800 600 60% 40% 400 200 Matt 20% 0% -20% 0 -40% 2006 2007 2008 2009 2010 2011 2012 2013 2014e Exports & Re-Exports (lhs) Imports (lhs) Imports (% y/y) (rhs) Source: Dubai Statistics Centre Exports & Re-exports (% y/y) (rhs) 5 TT Emirates NBD 30% 25% 20% 15% 10% 5% 0% -5% -10% -15%#6Appendix Strategy Financial & Operating Performance Price per sq ft (In AED) 2500 2000 1500 1000 500 0 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 - Mid range villa Mid range apt High end villa Source: Cluttons via Bloomberg, Emirates NBD Research Mar-10 Sep-10 Mar-11 Emirates NBD Profile Operating Environment Dubai Economic Overview (3/3) Highlights Higher transaction fees and mortgage caps implemented in 2014 have helped to cool the market. Residential real estate prices continue to ease, but on low volumes, particularly in the villa sector. Mid-range villa prices declined -10.7% y/y in March 2015, with high-end villas down -3.8% y/y. • Medium term outlook is balanced, with growth prospects in the 'affordable housing' sector. • Commercial property prices have stabilized, with price per square foot unchanged over the last three quarters. Dubai Residential Property Prices Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Lease rates per sq ft (In AED) 500 450 400 350 300 250 200 150 100 50 Mar-06 Sep-06 No. of licenses in '000s 130 110 Business Licenses Issued* 90 70 50 30 10 -10 -30 2010 2011 2012 2013 2014 ■New Licenses Renewed Cancelled Source: DSC, *Licenses issued by DED only (excludes Freezones) Dubai Commercial Property Lease Rates Low end apt Prime office Secondary office Source: Cluttons via Bloomberg, Emirates NBD Research Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 6 Emirates NBD#7Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment UAE Banking Market Overview Highlights • UAE Banking sector is the largest by assets in the GCC. Sector is dominated by 23 local banks which account for more than 75% of banking assets; 28 foreign banks account for the remainder. Banking sector liquidity remains strong despite decline in oil price, with loan-to-deposit ratio at 97.5% as of February 2015. Money supply growth remains robust at 8.5% y/o/y (Feb-15). • Loan growth steady around the 8% mark while bank deposit growth stayed around the 10% mark over the three months to February 2015. 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% Composition of UAE Banking Market (AED Bn) Gross Loans 271 1,123 1,394 Deposits 260 1,170 1,430 Assets 368 1,967 Emirates NBD Other Banks Source: UAE Central Bank Statistics as at Feb 2015, ENBD data as of Q1 2015. Aug-09 Nov-09 Feb-10 May-10 Bank Deposit and Loan Growth* Aug-10 Nov-10 Bank deposits (% y/y) Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Emirates NBD Bank Loans (% y/y) Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Source: UAE Central Bank, *loan growth gross of provisions GCC Banking Market UAE(1) Banking Assets USD Bn Assets % GDP(3) 636 578 KSA Qatar Kuwait 2,335 Bahrain (2) 49 Oman 66 201 282 82 48 134 144 1) Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2015 forecasted. Bahrain and Oman as at Dec 2014; UAE, Kuwait and Saudi as at Feb 2015; Qatar as at Mar 2015 Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts 84 139 7 156 Nov-14 Feb-15#8Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD is a leading banking group in the region and the largest bank in the UAE Size Flagship • One of the largest financial institutions (by asset size) in the GCC Flagship bank for Dubai Government Ownership • 56% owned by Dubai Government Profitable • Emirates NBD Consistently profitable; despite significant headwinds during the global financial crisis Diversified offering Geographic presence Fully fledged, diversified financial services offering Growth • Ever increasing presence in the UAE, the GCC and globally • Well positioned to grow and deliver outstanding value to its shareholders, customers, and employees 8#9Financial Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Emirates NBD at a glance A Leading Bank in the UAE Market share in UAE (at 31 Mar 2015): - Assets c.15.7%; Loans c.18.2% Deposits c.19.4% Retail market shares (estimated at 31 Mar 2015): Personal loans c.14% Home loans c.4% - Auto loans c.15% Credit cards c.17% Debit cards c.24% Fully fledged financial services offerings across retail banking, private banking, wholesale banking, global markets & trading, investment banking, brokerage, asset management, acquiring and cards processing merchant Credit Ratings Long Term Short Term Outlook M Baa1 P-2 Stable Moody's Fitch Ratings CCAPITAL A+ F1 Stable A A1 intelligence Stable Emirates NBD Largest Branch Network in the UAE Dubai 101 Ras al-Khaimah (5) Abu Dhabi 25 Sharjah 17 Other Emirates 11 Umm al-Quwain (2)- Total 154 Ajman (2)- Fujairah (2) Dubai (101) Abu Dhabi (25) International Presence Branch Rep office Egypt (61 branches) Sharjah (17) Conventional 98 Islamic Total 56 154 9#10Operating Performance Emirates NBD Profile Operating Environment Financial Strategy Appendix Emirates NBD is the largest bank in the UAE by Operating Income, Net Profit, Loans and Deposits in Q1 2015 Operating income AED Mn, Q1 2015 Net profit AED Mn, Q1 2015 Net Loans AED Bn, Q1 2015 Emirates NBD x% Q1 2015 vs. Q1 2014 Total Deposits AED Bn, Q1 2015 Emirates NBD 3,845 15% Emirates NBD 1,671 60% Emirates NBD 249 1.2% Emirates NBD 260 0.8% NBAD 2,684 7% NBAD 1,423 1% بنك الطبخ الايف FGB بنك أبوظبي التجاري ADCB بنك دبي الإسلامي السلمي AULA Dubai Islamic Bank mashreq 2,308 3% 2,192 15% بنك الطيح الفوت FGB بنك أبوظبي التجاري ADCB 1,420 6% 1,249 13% ت توطين الوالي NBAD بنك الطبخ الايك FGB بنك أبوظبي التجاري ADCB 200 3.0% 143 2.2% 141 0.4% ولين الس NBAD بنك الطبخ النوف FGB بنك أبوظبي التجاري ADCB 250 2.7% 143 1.2% 128 2.0% 1,563 20% بنك دبي الإسلامي السلة APLAT بنك دبي الإسلامي السن Dubai Islamic Bank 850 ASEAN 82 34% Dubai Islamic Bank 9.4% ARAN بنك دبي الإسلامي السلي 104 13.0% Dubai Islamic Bank 1,492 8% mashreq 13% 668 ADIB 72 (1.5%) ADIB 88 3.3% 10 10#11Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Financial Emirates NBD is among top 3 banks in the GCC by Operating Income, Loans and Deposits in 2014 Operating income USD Bn, 2014 Net Profit USD Bn, 2014 Net Loans USD Bn, 2014 Emirates NBD x% 2014 vs. 2013 Deposits USD Bn, 2014 الأهلي NCB * QNB 4.3 9% *QNB 2.9 11% * QNB 93 9% * QNB 99 7% 4.2 7% الأهلي NCB Al Rajhi Bank Emirates NBD 3.9 22% مصرف الراجحي Al Rajhi Bank مصرف الراجحي 3.6 (1%) بنك الطيح الليل FGB 3 2.3 12% Emirates NBD 67 10 1.8 (8%) الأهلي NCB Al Rajhi Bank 20% مصرف الراجحي 1.6 الوطني الوطني NBK NBK 2.8 4% NBAD 1.5 18% بيت التمويل الكويتي Kuwait Finance House بنك الرياض 58% 2.6 (3%) Emirates NBD 1.4 riyad bank 3% الأهلي NCB 89 11% 18% 59 Emirates NBD 70 8% 55 55 10% Al Rajhi Bank 68 11% مصرف الراجحي 53 7% بنك الرياض riyad bank 41 2% سامبا samba 7% 66 44 3% 11#12Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance Profit and Balance Sheet Growth in Recent Years Emirates NBD Revenues and Costs (AED Bn) Revenues Costs Profits (AED Bn) Pre-Provision Operating Profits Net Profits +6% +4% 14.4 +7% 4.4 4.2 10.1 +9% 5.1 11.9 3.6 3.8 3.6 10.8 9.9 9.7 10.2 3.1 7.7 7.1 6.6 6.3 6.5 3.3 3.3 11.1 8.2 9.2 2.7 7.2 7.7 7.5 2.3 2.8 2.8 3.3 3.3 7.8 2.3 2.5 2.6 4.1 +15% 5.5 6.0 3.8 1.1 4.9 4.9 4.7 +21% 2.1 +60% 2.8 1.1 2.4 1.7 +3% 1.9 2.6 2.6 2.7 2.3 2.6 3.3 0.9 0.9 0.8 1.0 0.9 1.0 1.7 1.7 1.7 1.4 1.7 2.3 1.3 1.1 1.4 0.6 0.8 1.0 2009 2010 2011 2012 2013 2014 Q1 15 2009 2010 2011 2012 2013 2014 Q1 15 2009 2010 2011 2012 2013 2014 Q1 15 2009 2010 2011 2012 2013 2014 Q1 15 Assets and Loans (AED Bn) Assets Loans Deposits and Equity (AED Bn) Deposits +5% +3% +1% +6% 363 368 342 282 286 285 308 238 246 249 +1% 258 260 215 196 203 218 240 +1% 181 200 193 214 26 26 28 29 Equity +8% -1%) 41 40 35 37 31 2009 2010 2011 2012 2013 2014 Q1 15 2009 2010 2011 2012 2013 2014 Q1 2009 2010 2011 2012 2013 2014 Q1 2009 2010 2011 2012 2013 2014 Q1 15 15 15 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 12#13Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Q1-15 Financial Results Highlights Emirates NBD Highlights Net profit of AED 1,671 Mn for Q1-15 improved 60% y-o-y and 36% q-o-q • Net interest income rose 11% y-o-y mainly due to growth in Retail assets and a lower cost of funds. NII is flat q-o-q due to NIMS remaining stable and marginal asset growth Non-interest income improved 23% y-o-y and 26% q-o-q due to increases in foreign exchange and derivative income, higher asset management fees and gains from the sale of investment property Costs increased 3% y-o-y but reduced by 8% q-o-q. Cost trends comfortably within guidance and continue to remain well managed • NPL ratio stable at 7.8% • Provisions of AED 1,085 Mn further boosted coverage ratio to 103.9% • AD ratio of 95.6% within management range • NIMS maintained at 2.90% q-o-q despite a competitive environment Key Performance Indicators AED Mn Q1-15 Q1-14 Better/ |(Worse) Q4-14 Better / (Worse) Net interest income Non-interest income 2,485 2,232 11% 2,473 0% 1,360 1,102 23% 1,082 26% Total income 3,845 3,333 15% 3,555 8% Operating expenses (1,079) (1,050) (3%) (1,177) 8% Pre-impairment 2,766 2,283 21% 2,378 16% operating profit Impairment allowances (1,085) (1,267) 14% (1,163) 7% Operating profit 1,681 1,016 65% 1,214 38% Share of profits from associates 36 61 (41%) 51 (29%) Taxation charge (46) (35) (31%) (39) (16%) Net profit 1,671 1,042 60% 1,226 36% Cost: income ratio (%) 28.1% 31.5% 3.4% 33.1% 5.0% Net interest margin (%) 2.90% 2.75% 0.15% 2.91% (0.01%) AED Bn 31-Mar-15 31-Mar-14 % 31-Dec-14 % Total assets 367.5 347.1 6% 363.0 1% Loans 248.9 239.7 4% 246.0 1% Deposits 260.4 251.5 4% 258.3 1% 13#14Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Net Interest Income Emirates NBD Highlights NIMs steady in Q1-15 vs. Q4-14 at 2.90% and widened 15 bps vs. Q1-14 • Loan spreads declined marginally q-o-q and improved 6 bps y-o-y due to higher yielding Islamic products and time loans . Deposit spreads improved 2bps q-o-q supported by CASA growth and improved 9 bps y-o-y due to CASA growth and repayment of MOF Tier 2 deposits in 2014 Treasury spreads increased by 2bps q-o-q as interest earned from bank placements more than offset the higher cost of term debt Guidance for NIMS in 2015 in the range of 2.7 -2.8% Net Interest Margin (%) 2.95 2.91 2.90 2.83 2.85' 2.83 2.78 2.76 2.75 2.77 2.63 2.48 2.58 2.39 2.44 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Qtrly NIM YTD NIM Net Interest Margin Drivers (%) 2.91 Q1-15 vs. Q4-14 Q1-15 vs. Q1-14 2.90 0.02 0.04 (0.03) 0.09 0.02 2.90 (0.04) (0.01) 2.75 0.06 Q4 14 Loan Deposit Treasury Other Q1 15 Spreads Spreads Spreads Q1 14 Loan Deposit Treasury Other Spreads Spreads Spreads Q1 15 14#15Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Non-Interest Income Highlights Non-interest income improved 26% o-q driven by increases in foreign exchange and derivative income, higher asset management fees and credit card volumes and gains from the sale of investment property Composition of Non Interest Income (AED Mn) 9- AED Mn Q1-15 Q1-14 Better / (Worse) Q4-14 Better/ (Worse) Core gross fee income Fees & commission expense 1,270 1,031 23% 1,088 17% (175) (157) (11%) (118) (48%) Core fee income 1,095 874 25% 970 13% Property income/(loss) Investment securities Total Non Interest Income 170 115 48% 101 68% 95 111 (14%) 12 692% 1,360 1,102 23% 1,082 26% • Additional DirectRemit destinations, such as Pakistan in Q1-15, are expected to help sustain and grow non-interest income Property income improved significantly helped by a number of bulk sales. Income from sale of Property and Investment securities does tend to be more volatile Trend in Core Gross Fee Income (AED Mn) +23% 1,270 +17% 1,146 1,031 1,059 1,088 387 317 246 256 273 54 69 76 64 63 537 586 575 578 646 180 167 164 174 183 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Forex, Rates & Other Brokerage & AM fees Fee Income Trade finance 15 Emirates NBD#16Operating Environment Operating Costs and Efficiency Emirates NBD Highlights Costs decreased by 8% q-o-q in Q1-15 and increased by 3% y-o-y • Cost to Income Ratio improved by 5% q-o-q to 28.1% due to growth in non-interest income and a control on costs. Adjusted for one-offs, Cost to Income Ratio would be 30.2% for Q1-15 The longer term management target for cost to income ratio is 33% which headroom for future provides investment Cost to Income Ratio (%) 33.1 31.5 30.4 30.3 29.3 29.5 27.9. 28.1 Q1 14 Q2 14 CI Ratio (YTD) Q3 14 Q4 14 Q1 15 CI Ratio Appendix Strategy Financial & Operating Performance Emirates NBD Profile Cost Composition (AED Mn) +3% 1,177 -8% 1,050 1,087 1,075 83: 79 78- 86 1,079 =83 677 620 664 656 670 81 -81 75 94 94 -78 94 97 86 86 176 167 172 229 163 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Egypt Staff Cost Occupancy cost Depr & Amort Other Cost 16#17Operating Environment Credit Quality Emirates NBD Highlights • NPL ratio improved marginally to 7.8% Impaired loans increased by AED 0.1 Bn Impaired Loan & Coverage Ratios (%) 103.9 100.3 92.0 85.4 76.1 80.1 66.2 70.3 59.8 57.5 60.7 64.7 • Q1 2015 net impairment charge of AED 1.1 Bn Coverage ratio increased to 103.9% 49.4 43.4 13.8 14.3 13.9 13.8 13.5 12.6 4.3 4.0 3.6 3.5 3.5 3.1 7.9 7.8 9.5 10.3 10.3 10.2 10.0 9.5 Appendix Strategy Financial & Operating Performance Emirates NBD Profile Impaired Loans and Impairment Allowances (AED Bn) Impaired Loans Q4 11 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Impact of DW % NPL ratio, excl. DW Coverage ratio, excl. DW % Coverage ratio, incl. DW % Impairment Allowances 36.1 36.0 33.6 35.8 34.4 23.1 24.2 29.7 20.8 21.9 +4% 9.4 9.3 9.1 8.5 9.4 +1% 16.6 0.5 0.4- -0.4- -0.4 21.2 22.0 9.2 21.1 21.2 12.9 0.6 12.8 13.6 14.5 15.2 16.2 16.2 16.2 15.1 15.8 0.6- 16.4 16.9 9.9 13.6 15.3 15.4 7.0 3.7 3.7 3.8 1.4 3.6,0.3 3.8 3.8 2.1 3.8 3.9 3.9 3.9 0.5 2.9 4.9 6.5 6.6 6.4 0.2 6.1 5.3 0.4,0.1 5.2 0.5,0.1 3.6 0.2 3.8 0.2 3.4 3.8 0.1 0.5 4.2 0.1 4.5 0.1 4.2 4.3 0.3 0.4 -0.2 0.2 -0.2- -0.25 -0.1 Q4 11 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 DW Core Corporate Q1 15 Retail Q4 11 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Islamic Other Debt Securities 17#18Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Capital Adequacy Emirates NBD Highlights CAR decreased by 0.6% to 20.5% and Tier 1 ratio decreased by 0.5% to 17.5% in Q1-15 due to: — Annual dividend payment exceeding the quarterly retained profit Capitalisation 19.2 19.6 20.4 21.1 20.5 17.2 18.0 17.5 15.0 15.6 43.6 44.4 45.7 46.4 46.0 9.4 9.0 7.0 6.7 6.8 — Marginal increase in credit risk weighted assets 34.2 35.4 38.7 39.7 39.2 Capital Movements (AED Bn) Q4-14 to Q1-15 (AED Bn) Capital as at 31-Dec-2014 Net profits generated FY 2014 dividend paid Tier 1 Issuance/Repayment Tier 2 Issuance/Repayment Amortisation of Tier 2 Interest on T1 securities Goodwill Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 T2 T1 T1 % CAR % - Risk Weighted Assets – Basel II (AED Bn) -2% Tier 1 Tier 2 Total 39.7 6.7 46.4 227.6 226.5 224.5 220.2 223.9 +2% 1.7 1.7 14.9 18.6 2.4 2.7 18.6 -5.1 21.3 21.3 (1.9) (1.9) 7.0 3.7 210.2 205.1 200.8 191.9 198.8 (0.1) (0.1) 0.1 0.1 Q1 14 Other (0.1) 0.1 0.0 Q2 14 Operational Risk Q3 14 Q4 14 Market Risk Q1 15 Credit Risk Capital as at 31-Mar-2015 39.2 6.8 46.0 18#19Funding and Liquidity Highlights AD ratio of 95.6% within 90-100% management target range Liquid assets* of AED 50.3 Bn as at Q1-15 (15.7% of total liabilities) Maturity Profile of Debt Issued significantly extended in Q1 2015 thanks to, - - Issue of AUD 450 Mn 7-year notes Issue of EUR 550 Mn 7-year notes Issue of over USD 430 Mn of private placements in 6 currencies Modest maturity profile affords Emirates NBD ability to consider public and private debt issues opportunistically Debt and Sukuk issuance now represent 10% of total liabilities Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Emirates NBD Advances to Deposit (AD) Ratio (%) 98.1 105.1 102.0 99.5 99.2 95.3 95.6 95.2 95.6 Q4 10 Q4 11 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Target range AD Ratio Composition of Liabilities/Debt Issued (%) Liabilities (AED 321.3 Bn) Debt/Sukuk (AED 34 Bn) Maturity Profile of Debt Issued (AED Bn) Maturity Profile of Debt/Sukuk Issued 100% AED 34 Bn Customer deposits 81% Banks 5% Syn bank borrow. 1% Loan secur. 1% 6,1 6,1 Others 4% Debt/Sukuk 10% 5,2 5,4 4,7 3,0 2,4 EMTNS 7% 0,6 0,2 0,1 0,1 Sukuk 1% 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 2026 *including cash and deposits with Central Banks but excluding interbank balances and liquid investment securities 19#20Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Loan and Deposit Trends Emirates NBD Highlights Gross loans grew 1% since end 2014 mainly due to growth in Islamic financing • Islamic financing grew 6% since end 2014 • Consumer lending grew 1% since end 2014, mainly due to personal loans and auto loans • Deposits increased 1% q-o-q and 4% y-o-y in Q1-15 Strategic push to grow CASA continued in Q1 2015: ― ― CASA deposits up 4% q-o-q and 11% y-o-y CASA deposits as a percentage of total deposits have increased to 60% in Q1-15, up from 43% at end 2012 and 53% at end 2013 Trend in Gross Loans by Type (AED Bn) +1% 272 259 262 265 267 271 235 221 216 205 178 195 196 197 200 201 202 171 162 166 22 28 29 29 33 27 27 25 22 20 20 20 28 33 36 36 38 39 38 40 3. Q4 09 Q4 10 Q4 11 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Corporate Consumer Islamic* Treasury/Other Trend in Deposits by Type (AED Bn) མིི་ +1% 252 253 258 260 +4% 240 250 214 5- 5 200 193 181 107 105 97 103 99 110 122 138 113 122 ထာ * Gross Islamic Financing Net of Deferred Income 127 141 144 148 151 157 79 91 56 61 Q4 09 Q4 10 Q4 11 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Other Time CASA 20 20#21Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Loan Composition Total Gross Loans (AED 271 bn) Treasury/Other Retail Corporate 27 92 (34%) 1 (10%) (0%) Corporate Loans (AED 92 bn) Cont. Trans. & com. 8% 6% Trade 14% Sovereign 111 (41%) Retail Loans (AED 27 bn) Others Overdrafts 6% Car Loans 13% RE 33% 40 (15%) 7% Manuf. Islamic* 4% 3% Others** 25% Serv. Fin Inst 14% Personal 34% 14% 14% 5% Credit Cards Mortgages Time Loans Islamic* Loans (AED 40 bn) Per. - Retail 52% *Islamic loans net of deferred income; **Others include Agriculture and allied activities and Mining and quarrying RE 16% Emirates NBD Fin Inst 6% 6% Serv. 5% 0% 2% Per. - Corp. Others** 3% 7% Manuf. 3% Trade Cont. Trans. & com. 21#22Divisional Performance Appendix Strategy Financial & Operating Performance Emirates NBD Profile Islamic Banking Retail Banking & Operating Environment Wealth Management Retail business has grown but revenue stable due to a change in internal transfer pricing • Deposits declined 3% from end 2014 as more expensive time deposits were retired • Loans grew 1% from end 2014 • The bank has improved its distribution as part of its channel optimization strategy and had 530 ATMs and 98 branches as at 31-March-2015 • RBWM offers an award winning 'best-in-class' online and mobile banking solutions and continue to launch innovative services such as the e-IPO and DirectRemit Islamic Banking revenue continues to grow strongly, improving 13% q-o-q • Financing receivables grew 6% from end 2014 Customer accounts also increased by 6% from end 2014 • • Emirates Islamic delivered healthy increase in NFI thanks to ongoing success of the murabaha trading platform and increased revenue from the sale of takaful or insurance products • At Q1-15, El had 56 branches and an ATM & CDM network of 167 Emirates NBD Balance Sheet Trends -3% Revenue Trends AED Bn AED Mn +1% -1% 113.5 109.7 1,388 1,417 1,402 446 487 536 30.3 30.7 941 930 866 Q4 14 Q1 15 Q1 14 Q4 14 Q1 15 Loans Deposits NFI NII Balance Sheet Trends AED Bn Revenue Trends +6% AED Mn +6% 33.4 31.5 27.9 29.5 +13% 662 586 284 420 213 115 373 378 305 Q4 14 Q1 15 Financing receivables Customer accounts Q1 14 Q4 14 Q1 15 NFI NII 22 22#23Wholesale Banking Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Global Markets & Treasury Divisional Performance (cont'd) Emirates NBD Wholesale Banking revenues grew 15% q-o-q • Loans grew 1% from end 2014 Deposits also grew by 1% from end 2014 • Focus during 2015 is 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 +1% Revenue Trends AED Mn +1% 187.0 188.0 +15% 1,246 1,146 1,084 349 331 347 91.8 92.7 815 898 737 • Revenue at AED 105 Mn declined 34% q-o-q NII fell as some balance-sheet hedges rolled off and the size of the investment portfolio reduced. Sales revenue grew on higher volumes in Interest Rate hedging products and Foreign Exchange Sales. Trading revenues increased as the Foreign Exchange trading desk delivered a strong performance. • GMT expects Sales & Trading revenues to be strong in 2015 as more corporate clients look to hedge their interest rate exposures on the expectation that global interest rates will start to rise Q1 14 Q4 14 Q1 15 Q4 14 Loans Q1 15 Deposits NFI NII Revenue Trends AED Mn 244 -34% 160 105 182 113 163 63 47 -58 Q1 14 Q4 14 Q1 15 NFI NII 23 23#24Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Summary Profitability • Net profit of AED 1.7 Bn for Q1-15 improved 60% y-o-y due to higher income, stable costs and lower provisions Emirates NBD Income CI Ratio Provisions Credit Quality • Total income rose 15% y-o-y to AED 3.8 Bn helped by an improving asset mix, strong fee income and efficient funding base • Costs increased 3% y-o-y, improving the Cost to Income ratio by 3.4% to 28.1% in Q1-15 Impairment allowances improved by 14% y-o-y to AED 1.1 Bn, strengthening the coverage ratio to 103.9% • NPL ratio improved to 7.8% • NIMS steady at 2.90% in Q1-15 Net Interest Margin Capital and Liquidity Outlook • Tier 1 ratio declined by 0.5% due to annual dividend payment • AD ratio stable at 95.6% whilst term liabilities extended by $1 billion 7 year issuance Some signs of a slowdown in the economy due to lower oil prices and a strong dollar, but this is from a relatively high base • The Bank's strong balance sheet is able to take advantage of any regional growth opportunities 24#25Appendix Strategy Financial Operating Performance Emirates NBD Profile Operating Environment Emirates NBD's core strategy is focused on the following building blocks Key Objective Strategic Levers Drive core business Deliver an excellent customer experience Run an efficient organization Enablers Build a high performing organization Drive geographic expansion 25 Emirates NBD#26Appendix Emirates NBD Profile Operating Environment Strategy Financial & Operating Performance 3 Strategic priorities for 2015 Priorities Deliver an excellent customer experience Focus Areas . • • Emirates NBD Continue to deliver superior customer experience through better service and product offerings Drive front line cultural/ behavior change Reinforce ENBD's position as a digital innovator in the region via best-in-class online and mobile banking services Enhance customer relationships in Wholesale Banking through new tools 2 Build a high performing organization . Increase nationalization efforts with a focus on developing local leadership talent • Improved performance and reward management • Continue raising Employee Engagement level to meet global standards Diversify loans portfolio to include broader representation of sectors and markets • Drive asset growth through the fast growing Retail and Islamic franchises • Drive core business • . Increase penetration in key Wholesale Bank growth sectors, e.g., Trade Finance, Manufacturing Increase fee and commission income, e.g., via increased Trade Finance penetration and improved Treasury product offering Run an efficient organization Drive digital channel adoption to lower transaction costs Develop robust risk and compliance culture to meet enhanced regulatory standards Streamline processes and procedures in key business units 5 Drive geographic expansion • Complete IT and systems integration in Egypt by Q2 2015 • 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 26#27Operating Environment Appendix Strategy Financial Operating Performance Emirates NBD Profile 2015 Awards Best Bank and Best Regional Bank Awards Asset Management and Consumer Finance Awards • Emirates NBD . . Emirates NBD Capital won 'Best Sukuk house' and 'Best local Investment Bank' in the UAE at EMEA Finance's Middle East Banking Awards 2014 Emirates NBD won 'Most Innovative Bank' in Pan-Middle East at EMEA Finance's Middle East Banking Awards 2014 Emirates NBD named Best Private Bank in the UAE for Philanthropy and Social Impact Investing by Euromoney • Emirates NBD named Best Retail Bank in the Middle East and the UAE by the Asian Banker • Group CEO named “Best CEO in the Region" at TOP CEO awards by TRENDS magazine and INSEAD Emirates NBD Asset Management won three awards at MENA Fund Manager Performance Awards - - UAE Asset Manager of the Year for third consecutive year Fixed Income Fund of the Year for the Emirates MENA Fixed Income Fund Real Estate Fund of the Year for the Emirates Real Estate Fund Emirates NBD Asset Management won at Fund Selector Asia Awards 2015 Marketing, Social Media and Customer Engagement Awards • Emirates NBD ranked among top 25 Global Banks on Social Media . Emirates NBD named the most valuable banking brand in the UAE with a brand valuation of US$1.78 billion Emirates NBD was recognised in first ever global Midas Brand Report 2014 Treasury, Emerging and Capital Markets Awards Other Awards . Emirates NBD won Best Financial Institution Borrower 2014 from Emeafinance Emirates NBD's "RISE The Power of Small" campaign won four Gold and one Bronze awards in the Cristal MENA Awards event#28Large Deals Concluded in 2015 PORT & FREE ZONE WORLD FZE USD 1,100,000,000 CREDIT FACILITIES MARCH 2015 STANBIC BANK UGANDA LIMITED Stanbic Bank A member of Standard Bank Group USD $5,000,000 EIGHTEEN MONTH TERM LOAN FACILITY JANUARY 2015 Initial Mandated Lead Arranger, Bookrunner and Underwriter Emirates NBD Initial Mandated Lead Arranger, Bookrunner, Coordinator, Documentation and Publicity Agent Emirates NBD Appendix Strategy Financial Operating Performance Emirates NBD Profile Operating Environment Emirates NBD#29Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] Emirates NBD 29 29