#1Emirates NBD Investor Presentation February 2016 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.#3Emirates NBD Profile Operating Environment Strategy Financial & Operating Performance Appendix Real GDP growth forecasts UAE Economic Update Highlights 2015 real GDP growth estimated at 4.0%. Oil production rose 4.1% according to Bloomberg estimates, offsetting slower growth in the non-oil sectors of the economy. UAE's PMI averaged 56.0 in 2015, down from 58.1 in 2014, signaling slower non-oil private sector growth. A strong USD, low oil prices and greater uncertainty about geopolitics and the economic outlook all contributed to weaker growth in the UAE's non-oil, service oriented sectors. Inflation averaged 4.0% in 2015, up from 2.3% in 2014. We expect inflation to average 3.5% in 2016 as lower housing costs are captured in the official data. Qatar Kuwait Oman Jordan Lebanon Tunisia UAE oil production 3.0 2.9 mn bpd 2.8 € 2.7 2.6 Emirates NBD 3 2013 2014 2015 2016F 2017F S. Arabia UAE 2.7 3.5 3.4 1.9 2.6 4.3 4.6 4.0 3.0 3.4 4.6 4.0 3.8 4.1 5.2 0.6 0.1 0.5 2.0 2.8 4.6 2.5 3.4 2.9 3.0 Bahrain 5.3 4.5 3.1 2.8 3.9 GCC (average) 3.2 3.4 3.4 2.6 3.2 Egypt 7.4 2.2 4.2 3.9 5.0 2.8 3.1 2.5 3.0 3.5 3.0 1.8 2.0 2.2 2.5 2.9 2.7 0.6 2.5 3.0 Morocco 4.4 2.0 4.4 2.1 4.8 MENA (average) 5.7 2.2 3.7 3.2 4.5 Source: Bloomberg, Emirates NBD Research UAE PMI - Non oil private sector activity 62 60 58 56 54 52 2.5 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Source: Bloomberg, Emirates NBD Research 50 Dec-12 May-13 Oct-13 Mar-14 Aug-14 Jan-15 Jun-15 Nov-15 Source: Markit / Emirates NBD#4Appendix Strategy Dubai Economic Update (1/3) Highlights Dubai's economy expanded 4.6% y/y in H1 2015, up from 4.0% in H1 2014. Wholesale & retail trade remains the largest sector in the economy, and expanded 5.3% in H1 2015. Transport, storage & communication rose 6.6% and retail and business services grew 4.5%. The Emirates NBD Dubai Economy Tracker indicates slower, but positive, growth in Dubai's non-oil private sector last year. The construction sector has showed robust levels of output and new orders expansion, while activity in the tourism & travel sector gained momentum in the last two months of 2015. 4.0 3.5 Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD Dubai Economy Tracker Emirates NBD 4 Dubai: Real GDP Growth, H1 2015 5.0 % y/y 4.5 3.8 4.7 4.0 3.0 3.0 2.7 2.5 H1 H1 H1 H1 H1 H1 2010 2011 2012 2013 2014 2015 Source: Dubai Statistics Centre, Emirates NBD Research 68 66 64 62 60 58 56 54 52 50 Dec-12 Key Sector Growth Rates, H1 2015 10 % y/y growth 8 6 4 8.5 6.6 6.6 2 5.3 4.5 3.1 0 May-13 Source: Markit / Emirates NBD, Emirates NBD Research Oct-13 Mar-14 Aug-14 Jan-15 Jun-15 Nov-15 Utilities 1.1 Hospitality Transport Trade Real Estate Manufacturing Construction Source: Dubai Statistics Centre, Emirates NBD Research 4.6#5Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD 5 Dubai Economic Update (2/3) Highlights Passenger traffic at the Dubai International Airport rose to 78 million in 2015, up by 10.7% y/y, retaining its position as the world's biggest international hub. Passenger traffic is expected to exceed 103.5 million by 2020, according to Dubai Airports. Dubai's hotel occupancy averaged 77% in 2015. The supply of hotel rooms in Dubai increased by 6.7% y/y in 2015 to 79,002 rooms with the Department of Tourism and Commerce Marketing (DTCM) targeting 140,000 to 160,000 hotel rooms by the end of the decade. Hotel occupancy and RevPAR Dubai Airports passenger traffic % y/y 20 16 12 8 4 0 Jan-11 Sep-11 May-12 Jan-13 Sep-13 May-14 Jan-15 Sep-15 Source: Dubai Airports, Emirates NBD Research Composition of Dubai GDP 100 80 60 40 20 0 -20 -40 بلسان Dubai GDP by Sector (%) - 2014 80 60 12 2 2 2 2 。 2 40 20 0 100 Other Hosp. 5% 5% Financial servcs. 11% Manuf. 14% -20 RevPAR (% y/y) Occupancy Rate (%) -40 Dec-12 Dec-13 Dec-14 Dec-15 Dec-10 Dec-11 Source: STR Global, Emirates NBD Research Transport, comm. 15% Source: Dubai Statistics Centre Trade 29% Constr. & RE 21%#6Emirates NBD Profile Operating Environment Business licenses issued* Dubai Economic Update (3/3) Highlights Residential property prices have continued to ease in December 2015 with apartment prices down -13.5% y/y and villa prices down -13% y/y. The Emirates NBD Dubai Real Estate Tracker indicates that activity in the residential real estate market slowed further in 2015 as the strong USD and low oil prices weighed on sentiment and affordability. Thousands 95 85 Dubai residential property prices 6 Strategy % y/y Financial & Operating Performance Appendix -6 -9 30 3 6 9 25 -12 -15 -18 Jan-15 Mar-15 May-15 Jul-15 Emirates NBD 6 125 Business licenses 115 105 12 % y/y 10 8 6 4 2 75 0 65 Jan-Sep 2011 Jan-Sep 2012 2013 Total Licences (LHS) Jan-Sep Jan-Sep 2014 Jan-Sep 2015 % y/y (RHS) Source: DSC, *Licenses issued by DED only (excludes Freezones) Dubai volumes 1600 200 Apartments (LHS) Villas (RHS) 180 Apartments Villas 1400 160 1200 140 1000 120 800 100 80 600 60 400 40 200 20 0 0 Feb-14 Sep-15 Nov-15 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Source: 9/5 House Index - Phidar Advisory, Emirates NBD Research Source: Phidar Advisory, Emirates NBD Research#7Emirates NBD 7 UAE Banking Market Update Highlights Tighter liquidity conditions are evident: • M2 growth slowed to 5.5% in December 2015 Bank deposits increased by AED 50.3bn in 2015, compared with AED 142.4bn rise in 2014. Gross loans increased by AED 107.4bn in 2015, pushing the loan/ deposit ratio to 100.9%. 3m EIBOR rate has continued to tick up since the start of 2015. The spread over 3m LIBOR widened during 2015 but has narrowed on the back of the Fed rate hike in December. Bank deposit and loan growth* 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% Dec-09 Mar-10 Jun-10 Bank deposits (% y/y) ZL-unc Bank Loans (% y/y) Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment UAE banking market (AED Bn) Gross Loans 296 1,189 1,486 Deposits 287 1,184 1,472 Assets 407 Source: UAE Central Bank, *loan growth gross of provisions GCC banking market Banking Assets USD Bn UAE(1) KSA Qatar Kuwait 2,068 2,474 Bahrain(2) 52 Oman 79 211 302 589 674 Assets % GDP(3) 84 99 Mar-15 Jun-15 Sep-15 Dec-15 142 159 152 ■Emirates NBD Other Banks Source: UAE Central Bank Statistics, ENBD data as at end Dec 2015 1) Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2015 forecasted. UAE, Saudi, Kuwait, Oman as at Dec 2015; Qatar as at Nov 2015; Bahrain as at Jun 2015 Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts 177#8Emirates NBD 8 Emirates NBD at a glance #1 bank in the UAE Market share in the UAE (as at 31 Dec 2015) Assets c.16.4%; Loans c.19.9% Deposits c.19.5% Retail market share (estimated as at 31 Dec 2015) Personal loans c.14% Home loans c.4% Auto loans c.15% Credit cards c.17.6% Debit cards c.23.6% 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 Largest branch network in the UAE Dubai 103 Ras al-Khaimah (5) Abu Dhabi 25 Sharjah 17 Umm al-Quwain (2) Other Emirates 12 -Fujairah (3) Total 157 Ajman (2) Sharjah (17) Dubai (103) Abu Dhabi (25) Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Credit ratings Long Term Short Term Outlook Baa1 P-2 Positive Moody's Fitch Ratings A+ F1 Stable CCAPITAL intelligence A A1 Positive International presence Branch ● Rep office ● Egypt (64 branches)#9Operating Environment Emirates NBD Profile Strategy | Financial & Operating Performance Appendix Emirates NBD 9 Emirates NBD is the largest bank in the UAE by Operating Income, Net Profit, Loans and Deposits in 2015 Operating Income AED Mn, 2015 Emirater TWDD 15,228 5% NBAD بنك الخليج الليف FGB بنك ابوظبي التجاري ADCB بنك دبي الإسلامي سين ALISLAT Dubai Islamic Bank mashreq 10,558 1% Net Profit AED Mn, 2015 بنك الخليج الأول FGB 7,123 39% Loans AED Bn, 2015 x% 2015 vs. 2014 Total Deposits AED Bn, 2015 271 287 10% Emirates N6D 11% 206 6% 6,006 6% NBAD NBAD 234 (4%) 9,434 5% NBAD 5,232 (6%) 8,262 10% بنك ابومبي التجاري ADCB 6,489 19% بنك دبي الإسلامي ALISLATI Dubai Islamic Bank 4,924 22% 3,556 34% بنك ابوظبي التجاري ADCB ملك الطبخ الأول FGB 154 9% 150 7% بنك ابوظبي التجاري ADCB بنك الطبخ التوت FGB 144 14% 142 1% بنك دبي الإسلامي السل 97 Dubai Islamic Bank 31% بنك دبي الإسلامي السا 110 19% ALISLAM Dubai Islamic Bank 5,978 2% mashreq 2,402 0% ADIB 78 7% ADIB 95 95 12%#10Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Emirates NBD 10 Emirates NBD is among top 3 banks in the GCC by Operating Income, Net Profit, Loans and Deposits in 2015 Operating Income USD Bn, 2015 Net Profit USD Bn, 2015 NCB الأهلي " * QNB Loans USD Bn, 2015 x% 2015 vs. 2014 Total Deposits USD Bn, 2015 4.6 8% * QNB 3.1 8% * QNB 109 15% QNB 109 10% 4.5 3% الأهلي NCBI 2.4 5% Emirates NBD 80 10% Emirates NBD 4.1 5% Emirates NBD 1.9 39% NCB Al Rajhi Bank مصرف الراجحي الأهلي 68 88 الأهلي NCBI 86 98 (3%) 13% Emirates NBD 78 11% Al Rajhi Bank 3.7 1% مصرف الراجحي 1.9 4% 58 NBAD 6% 2.8 (1%) NBAD Kuwait Finance House بيت التمويل الكويتي بنك الخليج العريف FGB 1.6 6% Al Rajhi Bank 68 0% مصرف الراجحي - Al Rajhi Bank இ 58 2% مصرف الراجحي | NBAD 64 (4%) 2.4 (5%) NBAD 1.4 (6%) الوطني NBK 47 10% سامبا ( samba 46 5%#11Operating Environment Strategy Financial & Operating Performance Emirates NBD Profile Appendix Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Profits (AED Bn) Revenues Costs Emirates NBD 11 Pre-Provision Operating Profits Net Profits +11% 14.4 15.2 9.9 10.2 11.9 +5% +7% 4.2 4.4 +14% 4.7 3.6 3.8 TA(+8% 10.1 10.5 FA(+5% 7.7 6.3 6.5 +30% +39% 7.1 5.1 3.3 2.5 2.6 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Assets and Loans (AED Bn) Assets Loans Deposits and Equity (AED Bn) Deposits Equity +9% +7% +10% +11% 407 342 363 285 308 +12% 203 218 238 246 271 287 258 45 +10% +10% 214 240 +11% 41 193 35 29 31 2011 2012 2013 2014 2015 20112012201320142015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 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#12Emirates NBD Profile Operating Environment Emirates NBD delivered a solid set of results in 2015 amid a challenging environment FY 2015 at a glance FY 2015 VS. 2015 guidance Profitability Net profit AED 7.1 Bn +39% Net interest margin 2.85% 2.70 2.80% range Cost-to-income 31.0% ratio 33% management target Credit Quality NPL ratio 7.1% Coverage ratio 111.5% 100-110% target range Capital & Tier 1 ratio Appendix Strategy Financial & Operating Performance Liquidity 18.0% Capital adequacy ratio 20.7% AD ratio 94.2% 90-100% management target Assets Loan growth (net) 10% 5% range Emirates NBD 12 2015 Macro themes • Regional Resilience of UAE economy due to non-oil sectors Sustained weakness in oil price dampened business and investor sentiment Strong dollar impact on Dubai tourism counterbalanced by overall growth in number of visitors helped by new routes Tighter market liquidity conditions due to outflow of government deposits in the banking system SME skip cases raised concerns on credit quality • Global Recovering US economy Global stock market volatility dampened investor sentiment Slowdown in global growth contributed to weaker business and investor sentiment#13Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment FY 2015 Financial Results Highlights • • • • • Net profit of AED 7,124 Mn for FY-15 improved 39% y-o-y Net interest income rose 8% y-o-y due to asset growth and a lower cost of deposits Non-interest income improved 1% y-o-y as core fee income growth was offset by lower gains from the sale of properties and investments. Core fee income improved 14% y-o-y driven by growth in trade finance, foreign exchange and derivative income, alongside growing credit card volumes Costs grew 8% y-o-y due to staff costs linked with rising business volumes and partially offset by a control on other costs Provisions of AED 3,406 Mn improved 32% y-o-y as cost of risk continues to normalise AD ratio of 94.2% improved 1% y-o-y despite tighter market liquidity conditions demonstrating strong structural liquidity NPL ratio improved to 7.1% and coverage ratio strengthened to 111.5% NIMS remained flat at 2.85% as downward pressure on loan spreads offset by growth in low-cost CASA deposits Key Performance Indicators AED Mn FY-15 FY-14 Better/ (Worse) Net interest income 10,241 9,496 8% Non-interest income 4,987 4,946 1% Total income 15,228 14,442 5% Operating expenses (4,719) (4,389) (8%) Pre-impairment operating 10,509 10,053 5% profit Impairment allowances (3,406) (4,995) 32% Operating profit 7,102 5,058 40% Share of profits from 166 210 (21%) associates Taxation charge (145) (129) (12%) Net profit 7,124 5,139 39% Cost: income ratio (%) Net interest margin (%) 31.0% 30.4% (0.6%) 2.85% 2.85% (0.00%) 31-Dec-15 31-Dec-14 % 406.6 363.0 12% Loans 270.6 246.0 10% Deposits 287.2 258.3 11% AD ratio (%) 94.2% 95.2% 1.0% NPL ratio (%) 7.1% 7.9% 0.8% AED Bn Total assets Emirates NBD 13#14Emirates NBD Profile Operating Environment Q4-15 Financial Results Highlights Highlights • • Net profit of AED 2,134 Mn for Q4-15 improved 74% y-o-y and 28% q-o-q Net interest income improved 8% y-o-y due to loan growth and 3% q-o-q due to loan growth coupled with a slight widening in margins Non-interest income improved 30% y-o-y and 39% q-o-q due to growth in core fee income coupled with some one-off gains from the sale of investments and other income. Costs increased 15% y-o-y and 21% q-o-q due to staff costs linked with changing business volumes, and an increase in marketing costs in Q4 as we prepared to hit the ground running in 2016 Provisions of AED 599 Mn improved 49% y-o-y and 27% q-o-q as cost of risk improved for the 6th consecutive quarter AD ratio of 94.2% improved 1% y-o-y and 3% q-o-q despite tighter market liquidity conditions demonstrating strong structural liquidity NPL ratio improved to 7.1% with strong coverage NIMS widened in Q4-15 by 7bp q-o-q to 2.82% as Treasury was able to profitably deploy excess liquidity at attractive yields. This, coupled with a widening in deposit spreads, more than offset the impact of rising EIBOR rates on loan spreads Appendix Strategy Financial & Operating Performance Emirates NBD Key Performance Indicators AED Mn Q4-15 Q4-14 Better / (Worse) Q3-15 Better / (Worse) Net interest income 2,669 2,473 8% 2,591 3% Non-interest income 1,404 1,082 30% 1,009 39% Total income 4,073 3,555 15% 3,600 13% Operating expenses (1,357) (1,177) (15%) (1,126) (21%) Pre-impairment 2,716 2,378 14% 2,474 10% operating profit Impairment allowances Operating profit Share of profits from associates Taxation charge Net profit (599) (1,163) 49% (822) 27% 2,117 1,214 74% 1,652 28% 53 51 4% 39 37% (36) (39) 7% (18) (103%) 2,134 1,226 74% 1,673 28% Cost: income ratio (%) Net interest margin (%) 33.3% 2.82% 33.1% (0.2%) 31.3% (2.0%) 2.91% (0.09%) 2.75% 0.07% AED Bn 31-Dec-15 31-Dec-14| % 30-Sep-15 % Total assets Loans 406.6 363.0 12% 390.4 4% 270.6 246.0 10% 261.6 3% Deposits 287.2 258.3 11% 269.3 7% AD ratio (%) 94.2% 95.2% 1.0% 97.2% 3.0% NPL ratio (%) 7.1% 7.9% 0.8% 7.1% 0.0% 14#15Operating Environment Appendix Strategy Financial & Operating Performance Emirates NBD Profile Net Interest Income Highlights - FY-15 NIMS remained flat at 2.85% Loan spreads experienced downward pressure y-o-y across a broad range of products - Deposit spreads improved as growth in low-cost CASA replaced more expensive time deposits. - Treasury Spreads flat as cheaper short term funding offset an increase in more expensive term funding • Q4-15 NIMS improved 7 bps q-o-q to 2.82% Net Interest Margin (%) Emirates NBD 15 2.95 2.91 2.90 2.83 2.83 2.85 2.83 2.80 2.76 2.75 2.78' 2.85 2.82 2.77 2.76 2.75 2.58 2.63 2.48 - Loan rates held steady against an 11 bps increase in EIBOR whilst cost of fixed deposits increased in Q4 - Treasury spreads improved as excess liquidity was profitably deployed We expect NIMs for 2016 to be in the range of 2.70 -2.85% 2.44 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Net Interest Margin Drivers (%) Qtrly NIM YTD NIM Q4-15 vs. Q3-15 2.82 2.85 2.75 FY-15 vs. FY-14 (0.00) 2.85 0.05 0.03 (0.11) 0.20 (0.13) 0.07 (0.05) Q3 15 Loan Deposit Treasury Other Spreads Spreads Spreads Q4 15 FY-14 Loan Deposit Treasury Other Spreads Spreads Spreads FY-15#16Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Financial Non-Interest Income Emirates NBD 16 Highlights • • . • Non-interest income rose 1% y-o-y as core fee income growth was offset by lower gains from the sale of properties and investment securities Core fee income improved 14% y-o-y driven by increases in trade finance, foreign exchange and derivative income, alongside growing credit card volumes. Property income declined on lower demand for bulk and individual property sales compared to 2014 Income from Investment Securities declined on the back of greater uncertainty in global markets, coupled with some large disposals in 2014 not repeated in 2015 Composition of Non Interest Income (AED Mn) AED Mn FY-15 FY-14 Better/ (Worse) Core gross fee income 4,897 4,324 13% Fees & commission expense Core fee income (740) (670) (11%) 4,157 3,654 14% Property income/(loss) 321 611 (47%) Investment securities & other income Total Non Interest Income 510 680 (25%) 4,987 4,946 1% Trend in Core Gross Fee Income (AED Mn) +17% +8% 1,270 1,268 1,187 1,172 1,088 387 312 372 291 273 54 63 72 58 49' 578 646 625 647 666 174 183 179 176 181 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Forex, Rates & Other Brokerage & AM fees Fee Income Trade finance#17Operating Environment Operating Costs and Efficiency Highlights • • Costs increased by 21% q-o-q, as per previous guidance, and costs increased 8% in 2015 as staff costs increased in line with rising business volumes Cost to Income Ratio rose modestly by 0.6% to 31.0% from 30.4% in 2014 Adjusted for one-offs, the 2015 Cost to Income Ratio was 32.7% Cost to Income Ratio (%) 33.1 30.4 28.1 29.6 Appendix Strategy Financial & Operating Performance Emirates NBD Profile Emirates NBD 17 33.3 31.2 31.3 30.1 31.0 Q4 14 Q1 15 ▪▪▪▪▪▪Target Q2 15 CI Ratio (YTD) Q3 15 Q4 15 CI Ratio Cost Composition (AED Mn) +15% 1,357 1,177 1,079 1,157 1,126 112 +21% 83 83 91 88 809 677 670 717 712 78 81 85 94 -77 94 229 86 84 88 111 163 188 157 240 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Egypt Staff Cost Occupancy Cost Depr & Amort Other Cost#18Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance Credit Quality Highlights • • • NPL ratio improved by 0.8% in 2015 to 7.1% Impaired loans improved to AED 20.8 Bn helped by over AED 2 Bn of writebacks & recoveries Cost of risk fell for the 6th consecutive quarter in Q4-15 with net impairment charge of AED 3.4 Bn in FY-15, AED 1.6 Bn lower than in FY-14 Coverage ratio improved to 111.5% during 2015 due to the combined effect of routine provisioning and increased writebacks & recoveries Total portfolio impairment allowances amount to AED 6.1 Bn or 2.79% of credit RWAs Impaired Loans and Impairment Allowances (AED Bn) Impaired Loans Emirates NBD 18 Impaired Loan & Coverage Ratios (%) 114.5 103.2 109.0 111.5 99.6 92.0 85.4 80.1 76.1 70.3 64.7 60.7 57.5 13.9 13.8 13.5 12.6 3.6 3.5 3.5 3.1 7.9 7.8 7.4 7.1 7.1 10.3 10.2 10.0 9.5 Q4 13 Q1 14 Q2 14 Q3 14 Impact of DW % NPL ratio, excl. DW Q4 14 Q1 15 Q2 15 Q3 15 Coverage ratio, excl. DW % Coverage ratio, incl. DW % Q4 15 Impairment Allowances 36.0 9.3 35.8 9.1 34.4 8.5 21.9 23.1 24.2 +3% 21.1 21.2 20.6 20.3 20.8 0.4 0.4 21.0 21.9 22.5 23.3 23.2 (0%) 0.4 16.2 16.2 15.8 13.6 14.5 15.2 16.2 16.9 17.6 17.8 17.8 15.3 15.4 15.2 14.4 14.4 3.7 3.8 3.8 6.6 6.4 0.2 6.1 5.3 0.4,0.1 0.5,0.1 0.4,0.1 5.2 4.9 5.3 0.5,0.1 5.8 0.6,0.1 3.9 3.9 3.9 0.1 0.1 3.8 4.2 4.5 4.2 0.5,0.1 4.3 0.5,0.1 4.3 0.6,0.1 0.7 0.7 4.7 4.6 0.1 0.1 -0.1 -0.2- -0.2 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 DW Core Corporate Retail Islamic Other Debt Securities#19Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Capital Adequacy Highlights • In 2015, Tier 1 ratio remained steady at 18% and CAR declined by 0.4% to 20.7% Capitalisation 21.1 20.5 21.0 20.9 20.7 18.0 17.5 '18.0' 18.0 18.0 Increase in Tier 1 Capital from retained earnings offset by increase in RWAs 46.4 46.0 47.5 49.1 50.9 6.7 6.8 6.8 6.8 6.7 • Increase in RWAs due to growth in lending and treasury products 39.7 39.2 40.8 42.3 44.2 Q4 14 Q1 15 T2 Q2 15 Q3 15 Q4 15 T1 T1 % CAR % Capital Movements (AED Bn) FY-14 to FY-15 (AED Bn) Capital as at 31-Dec-2014 Net profits generated Risk Weighted Assets – Basel II (AED Bn) Tier 1 Tier 2 Total +11% 39.7 6.7 46.4 7.1 7.1 220.2 FY 2014 dividend paid (1.9) (1.9) 21.3 223.9 21.3 226.7 235.3 21.3 -7.0 3.7 3.9 21.3 4.5 245.5 24.1 4.2 Tier 1 Issuance/Repayment Tier 2 Issuance/Repayment Amortisation of Tier 2 Interest on T1 securities 191.9 (0.1) (0.1) (0.6) (0.6) Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Goodwill 0.1 0.1 Other (0.2) 0.1 (0.1) Operational Risk Market Risk Credit Risk Capital as at 31-Dec-2015 44.2 6.7 50.9 198.8 201.5 209.5 217.2 Emirates NBD 19#20Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Funding and Liquidity Highlights • • • AD ratio of 94.2% within 90-100% management target range Liquid assets* of AED 55.0 Bn as at end 2015 (15.5% of total liabilities) Debt & Sukuk term funding represent 10% of total liabilities In 2015, maturity profile extended thanks to AED 10.6 Bn issuance through: - Public Issuance of AED 4.7 Bn in 3 currencies and - Private Placements of AED 5.9 Bn in 8 currencies . Emirates NBD Advances to Deposit (AD) Ratio (%) 102.0 99.5 99.2 97.2 95.3 95.6 95.2 95.6 94.2 93.3 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Maturity profile affords Emirates NBD ability to consider public and private debt issues opportunistically Target range AD Ratio Composition of Liabilities/Debt Issued (%) Liabilities (AED 341.4 Bn) Debt/Sukuk (AED 35.0 Bn) Maturity Profile of Debt Issued (AED Bn) Customer deposits 84% Syn bank borrow. Banks 5% 1% Others 0% Debt/Sukuk 10% Loan secur. 1% 9,1 7,1 Sukuk 1% EMTNS 8% Maturity Profile of Debt/Sukuk Issued 100% = AED 35.0 Bn 5,2 3,0 4,6 3,6 1,6 0,6 0,1 0,1 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 20 20#21Appendix Strategy Financial Operating Performance Emirates NBD Profile Operating Environment Emirates NBD Loan and Deposit Trends Highlights . Gross loans grew 10% since end 2014 with strong growth in Retail and Islamic banking Islamic financing grew 27% since end 2014 • Consumer lending grew 12% since end 2014, mainly due to auto loans and credit cards • • Deposits increased 7% q-o-q and 11% from end 2014 CASA balances declined 2% q-o-q as we prudently locked in time deposits during Q4 in the run up to year-end CASA deposits grew 6% since end 2014 and represent 56% of total deposits, up from 43% at end 2012 Trend in Gross Loans by Type (AED Bn) +10% +3% 294 279 285 272 259 262 265 267 271 235 216 195 196 197 200 201 202 207 209 215 166 178 22 28 29 29 33 27 27 28 29 29 30 22 28 33 36 36 38 39 38 40 43 46 48 -1 0- Q4 11 Q4 12 Q4 13 Q1 14 Corporate Q2 14 Q3 14 Q4 14 Consumer Islamic* Q1 15 Q2 15 Q3 15 Treasury/Other Q4 15 Trend in Deposits by Type (AED Bn) +11% * Gross Islamic Financing Net of Deferred Income 287 +7% 274 252 253 250 258 260 269 240 6 214 10 6 5 107 105 97 103 99 110 99 121 110 122 127 141 144 148 151 157 159 164 160 91 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Other Time CASA 21 21#22Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Loan Composition Total Gross Loans (AED 294 bn) Treasury/Other Retail Corporate 30 95 (32%) (10%) 0 Sovereign 121 (41%) (0%) Retail Loans (AED 30 bn) Others Overdrafts 6% Car Loans 14% 48 (16%) Islamic* 13% Personal 34% Emirates NBD Corporate Loans (AED 95 bn) Cont. Trans. & com. 7% 5% Trade 15% RE FE 33% 8% Manuf. 2% 4% Others** 4% 23% Per. - Corp. Serv. Fin Inst Islamic* Loans (AED 48 bn) - Per. Retail 52% RE 15% Fin Inst 4% 8% Serv. 5% Others* ** 4% 4% 3% 6% Manuf. Trade 14% 13% Credit Cards 5% Mortgages Time Loans * Islamic loans net of deferred income; **Others include Agriculture & allied activities and Mining & quarrying Cont. Trans. & com. 22 22#23Emirates NBD Divisional Performance Wealth Management Retail Banking & Operating Environment Appendix Strategy Financial Operating Performance Emirates NBD Profile Islamic Banking • • • Retail loans grew 12% in 2015 due to growth in Auto Loans and Credit Cards whilst revenue grew 1% y-o-y due to a change in internal transfer pricing. Fee income grew 12% in 2015, driven by strong growth in foreign exchange remittances and credit cards. Fee income now accounts for 38% of total RBWM revenue. Liability mix further improved in 2015 as CASA balances grew by 2% The bank has improved its distribution capabilities as part of its channel optimization strategy and had 547 ATMs and 97 branches as at 31-Dec-15 RBWM offers an award winning 'best-in-class' digital banking solution with innovative services such as DirectRemit, Mobile Cheque Deposit and Smart Touch. Islamic Banking revenue grew 21% in 2015 on the back of growth in financing receivables and higher fee income from trade finance and insurance products Financing receivables grew 25% from end 2014 across a range of products Customer accounts increased by 25% from end 2014 As at 31-Dec-15, El had 60 branches and an ATM & CDM network of 190 Balance Sheet Trends AED Bn (0% Revenue Trends AED Mn +12% +1% 113.5 113.6 5,621 5,691 1,915 2,152 30.3 34.0 3,706 3,539 Balance Sheet Trends AED Bn AED Mn 2014 Loans 2015 2014 2015 Deposits NFI NII Revenue Trends +25% +21% +25% 39.3 2,415 34.9 31.5 1,993 740 27.9 591 1,675 1,403 2014 2015 2014 2015 Financing receivables NFI NII Customer accounts 23#24Divisional Performance (cont'd) Wholesale Banking Operating Environment Appendix Strategy Financial & Operating Performance Emirates NBD Profile Global Markets & Treasury • Emirates NBD Wholesale Banking revenues improved 2% in 2015 due to asset growth and higher fee income Loans grew 7% from end 2014 Deposits grew by 16% from end 2014 due to an increased focus on building liquidity throughout the year Focus during 2015 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 187.0 +16% +7% 200.8 Revenue Trends AED Mn +2% 4,816 4,928 1,306 1,317 106.7 91.8 3,510 3,611 Revenue declined 76% in 2015 primarily due to a realignment in internal transfer pricing adjustments Sales revenue grew 16% in 2015 on the back of higher volumes in Interest Rate hedging products and FX Sales 2014 2015 2014 2015 Loans Deposits NFI NII Revenue Trends AED Mn -76% 835 200 691 476 144 -276 2014 2015 NFI NII 24#25Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Summary FY 2015 financial results highlights FY 2015 Net profit AED 7.1 Bn • Improved 39% y-o-y Profitability Net interest margin 2.85% Emirates NBD Comments 2016 macro themes Global Emirates NBD's balance sheet is positioned to benefit from rising interest • Regional Regional growth opportunities Infrastructure spending Cost-to-income 31.0% • Within 33% management range ratio Provisions AED 3.4 Bn Credit NPL ratio Quality 7.1% Coverage ratio 111.5% Capital & Tier 1 ratio 18.0% Liquidity . AD ratio 94.2% • Improved 32% y-o-y as cost of risk continues to normalise and provisioning declined for the 6th consecutive quarter Helped by over AED 2 billion of write-backs and recoveries Within management range; improved 1% y-o-y despite tighter market liquidity conditions demonstrating strong bank liquidity Opportunity Risk rates Recovering US economy may promote confidence in global market Slowdown in global growth especially big economies such as EU and China may have negative global impact • Sustained low oil price may impact investors' confidence in the GCC market Uncertain geopolitics More cautious fiscal stance 25 25#26Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD 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 Drive geographic expansion Enablers Build a high performing organization#27Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Highlights of strategic achievements in 2015 2015 Strategic Priorities 1 Deliver an excellent customer experience 3 4 5 Build a high performing organization Drive core business Run an efficient organization • Drive front line cultural/ behavior change • Drive geographic expansion • Prioritize customer centric objectives and align metrics and plans Reinforce ENBD's position as a digital innovator and leader in multi-channel banking in the region Drive Nationalization efforts Continue raising Employee Engagement level to be at par with best in class global banks Improve performance management and accountability across Group Build a diversification strategy for Retail & Wholesale Banking to penetrate new markets & segments Expand Islamic finance offering to capture growth Increase fee and commission income Diversify income streams, improve capital efficiency and liquidity Develop robust risk and compliance culture Streamline organizational set-up, operations & processes Integrate Egypt business into Emirates NBD Group Selectively pursue organic and inorganic growth in current international markets Key Achievements • • • • . • First UAE bank to be named 'Bank of the Year - UAE 2015' and 'Bank of the Year - Middle East 2015' by The Banker Enhanced customer experience and improved complaint management Launched #1 rated mobile banking app with over 335K active users Increased digital offerings like DirectRemit, Shake n' Save, Remote Deposit Capture Nationalization strategy with a 5-year horizon launched with focus on growing future National leaders Increased employee engagement in 2015, with current levels higher than average for GCC commercial banks Balanced scorecard practice implemented at segment levels in large businesses Transformation on track with key investments in developing our non-lending offering and services Retail loans growth of 12%, asset growth of 12%, with consistent efforts in launching best-in-class offerings Islamic Financing Receivables growth of 22% Capital adequacy ratio at 20.7% and Tier 1 capital ratio at 18.0% Advances to deposits ratio improved by 1% to 94.2% amid tighter market liquidity conditions Increased fee to income ratio from 29.6% to 30.9% Completed IT and systems integration in Egypt in 2015 Emirates NBD 27 27#28Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment 4 3 Strategic priorities for 2016 1 Pillars of our strategy Deliver an excellent customer experience . Key focus areas • Extend servicing of products through online, mobile, social channels • Emirates NBD 28 Reinforce ENBD's position as a digital innovator in the region via best-in-class online and mobile banking services Keep investing in new digital channels, products, and capabilities Drive core business . Drive asset growth and cross-sell in Retail and Islamic • Diversify wholesale banking loans portfolio • Grow fee and commission income via improved Transaction Banking, Treasury and online offerings Run an efficient organization • Optimize the IT landscape to increase agility and enable digital banking • Streamline key processes throughout the organiation Enhance cross-functional collaboration throughout Group by aligning KPIs Enhance risk governance and compliance controls • Align risk appetite to overall corporate strategy and capital utilisation • Drive geographic expansion Sustain our growth path and deepen footprint in Egypt and other offshore locations • 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 • Continue to drive nationalisation efforts with a focus on developing local leadership talent • Improve performance management with greater recognition for high performers • Continue successful Employee Engagement level programmes#29Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment 2015 Selected Awards DIGITAL BANK AWARD Emirates NBD BEST GLOBAL FINANCE ⚫ 2015 'Best Mobile Banking App' 'Best Consumer Digital Bank in MEA' 'Best in Mobile Banking' EUROMONEY 2015 'Award for Excellence 2015 Middle East' 'Best Private Bank in the UAE for Philanthropy and Social Impact Investing' THE ASIAN BANKER® SMART CARD & PAYMENTS Awards MIDDLE EAST 'Best Retail Bank in the Middle East and the UAE' 'Best Prepaid Program - Emirates Islamic' جائزة محمد بن راشد آل مكتوم للأعمال The Banker GLOBAL FINANCIAL INTELLIGENCE SINCE 1926 MOHAMMED BIN RASHID AL MAKTOUM BUSINESS AWARD AN INITIATIVE BY DUBAI CHAMBER OF COMMERCE & INDUSTRY 'Business Excellence Award' 'Bank of the Year UAE & Middle East - 2015' 'Top 25 Global Banks on Social Media' effie effectiveness index 'World's Top Financial Services Brand' BANKING&FINANCE WHOLESALE BANKING 15 AWARDS 'UAE Cash Management Bank of the Year' EUROMONEY BEST MANAGED COMPANIES 2015 'Best Managed Company in the Middle East by Sector (Banking & Finance)' emeafinance 'Best Financial Institution borrower 2014' 'Best Sukuk house' & 'Best Local Investment Bank' in UAE 'Most Innovative Bank' in Pan-Middle East FundSelectorAsia 'UAE Asset Manager of the Year' 29#30Operating Environment Large Deals Concluded in 2015 (1/2) Emirates NBD BURGAN BANK CFC STANBIC BANK LIMITED IDFC BANK LIMITED BANQUE MISR SAE USD 250,000,000 USD 350,000,000 USD 155,000,000 CFC Stanbic Bank A member of Standard Bank Group بنك مصر BANQUE MISR تعمل معاً لخير بلدنــ SYNDICATED TERM LOAN FACILITY DECEMBER 2015 Mandated Lead Arranger and Bookrunner Emirates NBD بنك برقان BURGAN BANK TERM LOAN FACILITY DECEMBER 2015 Mandated Lead Arranger Emirates NBD SYNDICATED TERM LOAN FACILITY OCTOBER 2015 Initial Mandated Lead Arranger, Bookrunner, Coordinator, Documentation and Publicity Agent Emirates NBD USD 200,000,000 IDFC IDFC BANK TERM LOAN FACILITY OCTOBER 2015 Mandated Lead Arranger Emirates NBD RELIANCE INFRATEL LIMITED USD 350,000,000 RELIANCE TERM LOAN FACILITY. SEPTEMBER 2015 Mandated Lead Arranger Emirates NBD SEKERBANK USD 54,000,000 EUR 71,000,000 Şekerbank S DUAL CURRENCY TERM LOAN FACILITY. SEPTEMBER 2015 Mandated Lead Arranger Emirates NBD Appendix Strategy Financial & Operating Performance Emirates NBD Profile EMIRATES INTERNATIONAL TELECOMMUNICATIONS USD 2,100,000,000 EIT SYNIDCATED CONVENTIONAL AND ISLAMIC FINANCING FACILITIES SEPTEMBER 2015 Islamic Structuring Bank, Bookrunner & Investment Agent Emirates NBD ALBARAKA TURK KATILIM BANKASI USD 278,000,000 EUR 154,500,000 alBaraka DUAL TRANCHE SYNDICATED MURABAHA FINANCING FACILITY. SEPTEMBER 2015 Initial Mandated Lead Arranger, Coordinator & Bookrunner Emirates NBD ARMADA DI PTE LTD USD 202,000,000 Shapoorji Pallonji BUMIARMADA TERM LOAN FACILITY AUGUST 2015 Mandated Lead Arranger, Bookrunner & Underwriter Emirates NBD E-LAND US$ 225,000,000 TERM LOAN FACILITY GEMS MENASA (Cayman) limited AED 3,000,000,000 AFREXIMBANK USD 458,000,000 EUR 406,500,000 US$ 75,000,000 REVOLVING LOAN FACILITY JULY 2015 Mandated Lead Arranger & Bookrunner Emirates NBD EDUCATION CONVENTIONAL AND ISLAMIC FINANCING FACILITIES JULY 2015 Conventional Mandated Lead Arranger Emirates NBD AFREXIMBANK DUAL TRANCHE TERM LOAN FACILITY JULY 2015 Initial Mandated Lead Arranger & Bookrunner Emirates NBD As of end December 2015 30#31Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Large Deals Concluded in 2015 (2/2) Emirates NBD FAR EAST HORIZON LIMITED USD 250,000,000 远东宏信有限公司 SYNDICATED TERM LOAN FACILITY. JUNE 2015 EMIRATES NATIONAL OIL COMPANY LTD. (ENOC) LLC USD 1,500,000,000 ENOC DUAL CURRENCY CONVENTIONAL CREDIT & COMMODITY MURABAHA FACILITIES. JUNE 2015 Mandated Lead Arranger & Bookrunner Initial Mandated Lead Arranger & Bookrunner, Underwriter PT BFI FINANCE INDONESIA TBK. USD 50,000,000 BFI FINANCE SECURED TERM LOAN FACILITY. JUNE 2015 Mandated Lead Arranger, Bookrunner & Documentation Agent SUNRISE PROPERTIES LTD AED 515,000,000 SYNDICATED CONVENTIONAL AND ISLAMIC TERM FACILITIES MAY 2015 Mandated Lead Arranger and Bookrunner PUMA INTERNATIONAL FINANCING S.A USD 1,250,000,000 PUMA ENERGY REVOLVING AND TERM CREDIT FACILITIES. MAY 2015 Mandated Lead Arranger & (Active) Bookrunner USD 235,000,000 FIRSTRAND TERM LOAN FACILITY. May 2015 Mandated Lead Arranger, Bookrunner Coordinator & Facility Agent Emirates NBD Emirates NBD Emirates NBD Emirates NBD Emirates NBD Emirates NBD GUNVOR SINGAPORE PTE. LTD. USD 911,700,000 = GUNVOR REVOLVING CREDIT FACILITIES. MAY 2015 Mandated Lead Arranger & Bookrunner Emirates NBD INDUSIND BANK LIMITED USD 240,000,000 IndusInd Bank TWO YEAR CLUB LOAN FACILITY. APRIL 2015 Mandated Lead Arranger & Coordinator Emirates NBD ALBARAKA TURK KATILIM BANKASI USD 268,000,000 alBaraka SYNDICATED MURAHABA FINANCING FACILITY. APRIL 2015 Initial Mandated Lead Arranger, Joint-Coordinator & Bookrunner PORT & FREE ZONE WORLD FZE USD 1,100,000,000 DP WORLD CREDIT FACILITIES. MARCH 2015 Initial Mandated Lead Arranger, Bookrunner & Underwriter Emirates NBD Emirates NBD STANBIC BANK UGANDA LIMITED USD 85,000,000 Stanbic Bank EIGHTEEN MONTH TERM LOAN FACILITY. JANUARY 2015 Initial Mandated Lead Arranger, Bookrunner Coordinator, Documentation & Publicity Agent Emirates NBD As of end December 2015 31#32Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] Emirates NBD