#1Senti Investor Presentation Q1 2023 CONFIDENTIAL AND PROPRIETARY: Any use of this material without specific permission of Emirates Islamic is strictly prohibited الإمارات الإسلامي - EI EMIRATES ISLAMIC#2Disclaimer This document is provided to you upon request, the addressee only and is provided on a confidential basis by Emirates Islamic Bank PJSC ("Emirates Islamic Bank" or "Bank”) and solely for your information and may not be reproduced, disclosed or distributed to third parties. This document does not constitute an agreement or contract between you and Emirates Islamic Bank and must be read in conjunction with the applicable terms and conditions and agreement for services. Past performance is not an indication of future performance or returns and there may be a risk that some or all of your original investment could be lost subject to the extent of any Sharia compliant capital protection contained within the terms and conditions of the relevant investment. 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For contact information, please visit www.emiratesislamic.ae ΞΙ الإمارات الإسلامي EMIRATES ISLAMIC#3Table of Content Emirates Islamic Profile Operating Environment Financial and Operating Performance Divisional Performance ΞΙ الإمارات الإسلامي EMIRATES ISLAMIC#4El, a young growing Islamic Bank Size 3rd Largest Islamic Bank in UAE (by asset size and branch network as at Dec 2022) with total balance sheet size of AED 78 B Brand Value Ranked 6th in the Brand Index 2022 Survey amongst all UAE Financial Institutions Ownership 99.9% owned by Emirates NBD Group and indirectly owned by the Government of Dubai (via ICD) الإمارات الإسلامي EMIRATES ISLAMIC Sharia Compliant Deeply rooted in our values as a Sharia-compliant financial institution guided by our Service Promise guideline: Transparency, Fairness, Empathy, Reliability & Accessibility Resilient Strong CAR 19.7% and coverage ratio 132.6% (as at Mar 2023) to weather through tough times Diversified Offering Full-fledge, Sharia-compliant financial services offerings across all segments ΞΙ الإمارات الإسلامي 3 EMIRATES ISLAMIC#5El is strategically positioned across UAE to support its clients. Strong credit rating since 2015 Optimised Branch and Alternative Channel Footprint across UAE Branches ATM / CDM Abu Dhabi 8 Superior Long Term and Short Term Credit Rating affirmed by Fitch since 2015 Umm al Quwain 0 2 Ajman 1 11 16 16 Dubai 25 134 Ras al Khaimah 1 • Fujairah 1 5 → Sharjah 6 29 Dubai Abu Dhabi Sharjah Other Emirates Total 60 Branches 25 ATM / CDM 134 8 16 42 632 29 32 211 As at Apr 2023 (Affirmed) Long Term Short Term Outlook FitchRatings A+ F1 Stable EI الإمارات الإسلامي EMIRATES ISLAMIC 4#6El is one of the largest Islamic banks in UAE Q4 2022 بنك دبي الإسلامي Dubai Islamic Bank ADIB Total Assets Net Financing AED B AED B Customer Deposits AED B Total Income AED M 288.2 168.5 107.7 186.0 198.6 138.1 الإمارات الإسلامي EMIRATES ISLAMIC 74.8 48.4 56.3 3,182 مصرف الشارقة الإسلامي Sharjah Islamic Bank 10,467 Net Profit AED M 5,552 7,726 3,619 1,240 59.1 30.7 39.5 1,609 651 مصرف عجمان Ajman Bank 21.1 Note: Balance sheet numbers are at end of period 12.6 16.3 655 162 ΞΙ الإمارات الإسلامي EMIRATES ISLAMIC 5 LO#7Profit and balance sheet growth in recent years Revenues and Costs (AED M) Revenues Profits (AED M) Pre-Provision Operating Profits Costs Q2+Q3+Q4 Net Profit Q1 3,182 1,240 1,643 1,544 2,670 2,392 2,463 1,539 1,383 1,061 2,398 1,310 924 1,207 2,088 823 1,153 1,127 1,191 2,530 1,010 1,084 1,004 702 898 1,791 1,874 2,007 1,151 1,272 650 1,027 756 601 1,447 1,824 1.258 1,000 1,133 888 716 874 857 764 804 935 643 611 481 377 411 602 590 663 641 574 652 246 279 2017 2018 2019 2020 2021 2022 2023 270 280 2017 2018 2019 2020 256 281 356 311 393 361 319 371 342 221 209 155 212 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 --637- -482 2017 2018 2019 2020 2021 2022 2023 Assets and Financing (AED B) Assets +4% 78 75 71 62 62 65 65 58 Financing Receivables 36 34 Customer Accounts and Equity (AED B) Customer Accounts +7% +5% 48 50 56 57 31 41 43 37 45 47 47 42 42 Equity +5% 10 9 8 9 7 8 7 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2017 Notes: 1. Equity is Tangible Shareholder's Equity; All Balance Sheet numbers are at end of period 2. Source: Financial Statements ΞΙ 2018 2019 2020 2021 2022 2023 الإمارات الإسلامي EMIRATES ISLAMIC 6#8Q-o-Q Financial Results Highlights Highlights Net Profit for Q1'23 at AED 601 M, higher by 76% compared to same period last year reflecting strong operating performance • Total income up 74% compared to same period last year ➤ Funded income higher by 86%, mainly driven by financing growth, and higher margins Non-Funded Income increased 45%, driven by higher Fx & derivatives income, Fees income and Trade income Expenses up 34% y-o-y due to higher investment for future growth. Cl ratio improved in Q1'23 supported by positive income momentum Impairment Allowance at AED 155 M higher by 424% y-o-y due to financing growth and increased overlays resulting in higher coverage ratio. Coverage ratio improved to 132.6%, highest amongst peers. NPF ratio improved to 6.8%. Financing Receivables at AED 49.6 B, increased 2.5% compared to end of 2022 • Customer deposits at AED 57.3 B, increased 1.6% from end 2022 with CASA balances at 75% of total deposits Net Funded Income Non Funded Income Key Performance Indicators, AED M Better / Better / Q1-23 Q1-22 Q4-22 (Worse) (Worse) 858 462 86% 756 13% 275 190 45% 241 14% Total Income 1,133 652 74% 997 14% Operating Expenses (377) (281) -34% (552) 32% Pre-impairment Operating Profit 756 371 103% 445 70% Impairment Allowances (155) (30) -424% (259) 40% 601 342 76% 186 224% Net Profit for the Period Cost income ratio (%) 33.3% 43.0% Net Funded Income Margin (%) 4.7% 2.9% 55.4% 4.2% AED Billion 31-Mar-23 31-Mar-22 % 31-Dec-22 % Total Assets 77.9 70.1 11.2% 74.8 4.2% Financing Receivables, net 49.6 45.2 9.6% 48.4 2.5% Customers' Accounts 57.3 51.4 11.5% 56.3 1.6% Headline Ratio (%) 87% 88% 86% 6.8% 7.6% 7.0% ΞΙ الإمارات الإسلامي 7 EMIRATES ISLAMIC NPF Ratio (%)#9Net Funded Income Margin Highlights Net funded income margin for Q1'23 at 4.72%, increased 182 bps compared to same period last year. The increase is primarily on account of o Higher spread on Financing and Investment book due to increase in margins o Higher yield on Due from banks and CDs due to increase in margins Partially offset by: o Higher cost of Customer deposits o Higher cost of EMTN Sukuk due to new issuance • Net funded income margin for Q1'23 at 4.72%, increased 48 bps q-o-q primarily on account of higher yield on Financing and Investment book partially offset by higher cost of deposits due to higher margins and new EMTN Sukuk issuance Net Profit Margin Drivers (%) (Q1-23 Vs Q4-22) Net Funded Income Margin (%) Net Funded Income Margin Net Funded Income Margin - YTD 4.72 4.24 3.41 4.72 2.90 2.94 3.39 2.90 2.92 3.09 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Net Profit Margin Drivers (%) (Q1-23 Vs Q1-22) 0.29 4.72 0.37 4.24 (0.18) Q4-22 Financing and Investment Spreads 2.90 1.79 (0.62) 0.65 4.72 Customer Accounts & TRY Spreads Q1-23 Q1-22 Financing and Investment Spreads Customer Accounts & Sukuk Spreads TRY Spreads Q1-23 Sukuk Spreads ΞΙ الإمارات الإسلامي EMIRATES ISLAMIC 8#10Non Funded Income Trend in Gross Fee and Commission Income (AED M) Fee income Commission income Composition of Non Funded Income (AED M) AED Mn Q1-23 Q1-22 Better/ (Worse) Better/ Q4-22 (Worse) 228 207 210 215 198 Fee and Commission income Fee and Commission expense 228 198 15% 215 6% (101) (87) -16% (104) 3% 181 189 193 195 208 Net Fee and Commission Income 127 111 15% 111 14% Other operating income 148 80 86% 129 15% 17 Q1-22 18 17 20 Q2-22 Q3-22 Q4-22 19 Q1-23 Total Non-funded income 275 190 45% 241 14% Trend in Other Operating Income (AED M) 148 129 88 95 80 97 130 72 103 69 23 32 18 11. -16 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Foreign exchange income Other income (net) Highlights • Non-Funded Income increased 45% y-o-y - - Net Fee and Commission income increased by 15% y-o-y Other operating income increased primarily due to higher Fx & derivatives income and other banking income ΞΙ الإمارات الإسلامي 9 EMIRATES ISLAMIC#11Operating Costs and Efficiency Total Cost (AED M) +34% 393 313 281 -32% 552 Cost to Income Ratio (%), YTD 48.4 45.2 43.0 43.4 377 33.3 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Highlights Cost to Income ratio at 33.3% for Q1'23, decreased 9.7% compared to same period last year as a result of:- o Increase in total income by 74% Partially offset by o Increase in total cost by 34% ΞΙ الإمارات الإسلامي 10 EMIRATES ISLAMIC#12Credit Quality Highlights Non Performing Financing (NPF) ratio decreased to 6.8% from 7.0% at end of 2022 Coverage ratio at 132.6% increased from 127.6% at end of 2022 Impaired Financing & Coverage Ratios (%) Coverage, incl, PIP NPF Ratio % 132.6 117.6 120.1 123.9 127.6 • The Impairment allowance of AED 4.9 B includes AED 3.5 B (71%) of specific provisions and AED 1.4 B (29%) of ECL provisions Stage 1 and Stage 2 Expected Credit Loss (ECL) represents 2.8% of total Credit Risk Weighted Assets (CRWA) at the end of Q1'23 (Dec-22: 2.5%) Impaired Financing (AED B) 7.6 7.1 6.9 7.0 6.8 Q1-22 Q2-22 Q3-22 Impairment Allowances (AED B) -1% +1% 3.8 3.7 3.6 3.7 3.7 4.4 4.4 Q4-22 Q1-23 +11% +4% 4.5 4.7 4.9 3.1 3.1 3.0 3.0 3.0 3.4 3.4 3.4 3.5 3.6 0.7 0.7 0.7 0.7 0.8 1.1 1.1 1.1 1.2 1.3 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Corporate Retail ΞΙ EMIRATES ISLAMIC الإمارات الإسلامي 11#13Impairment allowances and Stage 1, 2 and 3 Coverage ECL Allowances ECL to Financing (AED B) Coverage % 4.9 4.7 2.0 2.2 Impairment 1.0 1.1 Allowances 21.8 21.0 0.3 0.3 and 3.5 3.5 Total Gross Financing Coverage % 94.3 94.8 2022 Q1-23 2022 Q1-23 Stage 1 Stage 2 Stage 3 Highlights Stage 1 coverage ratio increased to 2.2% at end of Q1'23 compared to 2.0% at end of FY 2022 Stage 2 coverage ratio is 21.0% at end of Q1'23 compared to 21.8% at end of FY 2022 Stage 3 coverage ratio further improved to 94.8% as NPF ratio improved by 0.2% to 6.8% 2022 Q1-23 2% 3% 7% 7% 91% 91% Stage 1 Stage 2 Stage 3 ΞΙ الإمارات الإسلامي 12 EMIRATES ISLAMIC#14Capital Adequacy Capitalisation (AED B) Highlights • CAR at 19.7% increased from 19.0% at the end of 2022, mainly due to - 。 Lower capital charge due to lower risk grade bank placements 18.8 T2 TI% 18.3 CAR % 18.7 19.0 19.7 o Increase in capital base on account of profit for the quarter Offset by 18.5 17.7 17.2 17.5 17.9 10.7 9.2 9.4 9.8 10.0 。 Higher capital charge due to growth in Financing receivables and Investments 8.7 8.9 9.2 9.4 10.1 • Tier I ratio at 18.5% increased from 17.9% at end of 2022 0.6. Q1-22 0.6 Q2-22 0.6. 0.6 -0.6. Q3-22 Q4-22 Q1-23 Capital Movements as per Basel III (AED M) Risk Weighted Assets - Basel II (AED B) Tier-1 Tier-2 Total CREDIT RISK MARKET RISK OPERATIONAL RISK Capital as at 31 December 2022 9,428 606 10,034 +2.6% Net Profits generated 601 601 54.5 ECL add-back Other 14 14 51.5 52.6 52.8 49.1 47 22 69 47.5 48.6 48.5 50.2 Capital as at 31 March 2023 10,090 628 10,718 45.2 0.1 0.1 0.1 0.1 0.1 3.9 3.9 3.9 4.2 4.2 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 ΞΙ الإمارات الإسلامي EMIRATES ISLAMIC 13#15Funding and Liquidity Highlights • Financing to Deposits ratio remains healthy at 86.6% Headline Ratio (%) FD Ratio (%) - Headline FD Ratio (%) - Reg. • Long term funding (Sukuk) represent 7.3% of total borrowings 88.1 87.2 87.4 85.8 86.6 • CASA to Total Customer Deposits ratio at end Q1'23 is 75.2% (Dec'22 – 73.6%) 86.0 84.6 84.1 79.8 78.9 CASA to Deposit Ratio Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Composition of Liabilities / Sukuk Issued (AED B, %) Customer Accounts Due to Banks 80.2 El Sukuk 76.0 77.1 73.6 75.2 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 57.3 (89.5%) 2.1 (3.2%) 4.7 (7.3%) ΞΙ الإمارات الإسلامي EMIRATES ISLAMIC 14#16Financing and Customer Deposits trends Highlights Financing receivables increased 10% y-o-y and 3% q-o-q Trend in Net Financing by Type (AED B) Retail Banking and Wealth Management Corporate and Institutional Banking ■ Retail Banking and Wealth Management financing receivable increased 13% y-o-y and 3% q-o-q Others +9.6% +2.5% ■ Corporate and Institutional Banking financing receivables increased 5% y-o-y and 1% q-o-q 45.2 47.4 47.8 48.4 49.6 41.5 42.4 42.6 26.4 27.3 27.6 28.6 29.2 30.5 31.1 32.2 • Customer deposits increased 12% y-o-y and increased 2% q-o-q ■ CASA increased 5% y-o-y and 4% q-o-q 15.0 15.0 15.0 16.6 18.2 17.3 17.2 17.4 -0.1- -0.1 -0.0- -0.0- 0.0 -0.0. -0.0- -0.0- ■ ITD decreased 19% y-o-y and 6% q-o-q Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 ■ Wakala increased 56% y-o-y and decreased 4% q-o-q Trend in Customer Deposits by Type (AED B) CASA ITD Wakala * Financing is Net of Deferred Income and impairment provisions +11.5% +1.6% 54.3 54.7 56.3 57.3 51.4 48.8 48.9 47.3 41.3 42.2 41.5 43.1 38.2 37.1 36.8 41.2 1.9 2.2 2.2 2.2 2.2 2.1 1.7 2.0 8.4 9.7 8.2 8.0 10.9 10.5 13.0 12.5 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 ΞΙ الإمارات الإسلامي EMIRATES ISLAMIC 15#17Financing composition Total Gross Financing* (AED 54.5 B) Retail Banking and Wealth Management Corporate and Institutional Banking 61% * Gross Financing net off deferred portion 39% Corporate and Institutional 25% 28% Banking 4% 1% Financing 7% (AED 21.0 B) 19% 5% 12% Trade Real Estate Manufacturing Financial Institutions Utilities and Services Transport & Communication Construction Others** Retail 17% Banking and Wealth 8% 41% Mortgage Finance Personal Finance Management Auto Financiang 10% Financing Credit Cards Others*** (AED 33.5 B) 25% ** Others under 'Corporate and Institutional Banking' includes Management of companies and enterprises and Sovereign ***Others under 'Retail Banking and Wealth Management' includes SME products held by retail customers ΞΙ الإمارات الإسلامي EMIRATES ISLAMIC 16#18Divisional performance Corporate and Institutional Banking Balance Sheet Trends (AED B) Financing Receivable Customer Deposits Retail Banking and Wealth Management Balance Sheet Trends (AED B) Financing Receivable Customer Deposits +4% -6% +3% +1% • 17.2 17.4 Financing receivable increased 1% from end of 2022 43.5 45.3 • 12.9 12.1 31.1 32.2 • Customer deposits decreased 6% from end of 2022 Q4-22 Q1-23 Revenue Trends (AED M) Q4-22 Q1-23 Revenue Trends (AED M) FI NFI NFI +50% +8% 191 206 137 152 Total Revenue increased by 50% y-o-y and 8% q-o-q driven by improved economic activity Funded Income increased primarily on account of portfolio growth and increased margins +41% +16% 689 592 487 484 157 89 48 34 55 Non Funded Income increased mainly due to higher fx & derivatives income and fees income 424 349 139 168 205 Q1-22 Q4-22 Q1-23 Q1-22 Q4-22 Q1-23 Note: All Balance Sheet numbers are at end of period • Financing receivable increased 3% from end of 2022 mainly in retail financing products Customer deposits increased 4% from end of 2022 mainly driven CASA growth Total Revenue increased 41% y-o-y and 16% q-o-q driven by improved economic activity Funded Income increased on account of higher margins supported by financing book growth Non-Funded Income increased mainly due to fx & derivatives income, customer financing linked fees and higher trade income EI الإمارات الإسلامي EMIRATES ISLAMIC 17#19For any enquiries please contact: Huda Sabil Chief Financial Officer Tel: +971 4 383 4671 Email: [email protected] Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor, Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] EI الإمارات الإسلامي EMIRATES ISLAMIC