#1Emirates NBD Investor Presentation January 2013 Emirates NBD#2Important Information Emirates NBD Disclaimer The material in this presentation is general background information about Emirates NBD's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take in to account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. The information contained here in has been prepared by Emirates NBD. Some of the information relied on by Emirates NBD is obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. Forward Looking Statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning. Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. Emirates NBD undertakes no obligation to revise or update any forward looking statement contained within this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise. 2#3Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy Outlook Appendix Emirates NBD 3#4UAE Economic Update Emirates NBD Highlights • Estimated GDP growth in 2012 at 3.7% on increased oil production and strong non-oil sector growth The UAE's PMI data was encouraging, with the overall index rising to the highest level since May 2011; domestic demand gained momentum in Q4 2012 Growth of 3.8% expected in 2013, with Abu Dhabi growth expected to slow slightly in 2013 due to stabilization in oil production however offset by a 5% expansion in non-oil sectors; Dubai growth expected to accelerate to 3.9% in 2013 as manufacturing, tourism and hospitality continue to benefit from regional demand Regional demand, buoyed by strong government spending in Saudi Arabia, Qatar and Oman expected to have a positive knock-on impact on UAE's economy Oil production trends Real GDP Growth Forecasts 2009 UAE UK Eurozone India US China 2008 3.2% (2.4%) 2.8% (1.1%) (4.9%) 1.4% 0.4% (4.1%) 1.7% 8.2% 6.4% 8.9% (0.3%) (3.5%) 3.0% 9.6% 9.2% 10.3% 9.0% 2010 2011E 3.4% 3.7% 3.8% 1.0% 0.0% 0.7% 1.5% (0.5%) 0.0% 7.5% 5.3% 5.5% 2012F 2013F 1.5% 1.5% 2.0% 8.0% 7.5% Japan (1.1%) (6.3%) 4.0% 0.0% 2.0% 1.0% Singapore 1.8% (0.9%) 14.9% 5.0% 1.4% 3.0% 4.9% 1.5% 3.7% Hong Kong 2.1% (2.5%) 6.8% Source: Global Insight, Emirates NBD forecasts, Bloomberg UAE PMI - Private Sector Expansion Trends 2.7 2.6 2.5 2.4 2.3 mn bpd 2.2 2.1 Dec-10 Feb-11 Apr-11 Jun-11 * Aug-11 Oct-11 Dec-11 Feb-12 UAE Oil Production (lhs) Source: Bloomberg, Emirates NBD Research OPEC oil price (rhs) Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 140 120 100 ༈ ༄ ༅ ྂ 8༠ USD per barrel 40 bps 45 50 55 60 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Source: HSBC, Markit Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 4#5Bps (in 10s) UAE Economic Update (cont) Trends in CDS spreads Highlights • . UAE bank deposits increased by AED 92.6bn in the first 10 months of 2012. Loan growth was slower, averaging 2.7% in the first 10 months of 2012. Personal loan growth better than the headline figure, rising 4% on average in Jan-Oct 2012. 5Y CDS spread for Dubai continued to decline, and reached its lowest level since Q1 2008, reflecting increased market confidence in the Emirate's ability to meet its debt obligations. 3M EIBOR was broadly stable during 2012, in line with 3M LIBOR bps 510 460 410 360 310 260 210 160 110 60 EIBOR - LIBOR spreads 3 2 + CO 6 5 0 -1 -2 Jan-08 Source Bloomberg Spread EIBOR ⚫LIBOR Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 y-o-y Growth % Emirates NBD Dubai (Ihs) Abu Dhabi (rhs) 160 150 140 130 120 110 100 90 80 70 60 Nov-12 Jan-13 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Source: Emirates NBD Research, Bloomberg Bank deposit and loan growth 18 16 14 12 NO 864212 -2 Bank deposits Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Source UAE Central Bank Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Bank Loans Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 5 bps#6Dubai Economic Update Emirates NBD Highlights 2013 GDP growth for Dubai is estimated at 3.9% as the real estate sector continues to recover and construction is no longer a drag on growth vs. 3% in 2012 which was driven mainly by manufacturing, which accounts for about 13% of Dubai's GDP; non-oil foreign trade and services sectors showed strong growth during 2012 • Manufacturing, tourism and hospitality are likely to benefit from strong regional demand Non-oil trade with other GCC countries, particularly Saudi Arabia and Qatar, likely to offset any weakness in trade with Europe and the US Dubai: Real GDP growth Y-o-y growth % 5.0% 3.9% 4.0% 3.4% 3.2% 2.8% 3.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% 2008 -2.4% 2009 2010 2011 2012e 2013f Source: Emirates NBD Research, Dubai Statistics Centre Dubai GDP - Composition by Sector, and Sector Growth Dubai GDP by Sector-2011 (AED 100 bn) Fin Hotels 4% Servcs. 10% Trans. & comm. 20.0 10.0 0.0 Trade 29% -10.0 N 2011 2012e 13% Manuf. 13% -20.0 RE 20% Other 11% Real Estate and Business services Non profit organisations 2013f Agriculture, Livestock and Fishery ■Construction ■Mining and Quarrying Wholesale, retail, maintenance ■Social and personal services Domestic Services (households) Manufacturing ■Restaurants and hotels ■Financial Services imputed bank services Utilities (Electricity and water) ■Transport, Storage, Communication Government services GDP Source: Dubai Statistics Centre, Haver Analytics 6#7Dubai Economic Update (cont) Highlights Dubai is the 3rd largest centre for re-exports in the world which itself represents almost 50% of GDP • Dubai is a strategically located international trading hub with some of the world's best air and sea ports serving over 205 destinations Very large investments in infrastructure will have highly positive effects on the long-run development and productivity of the emirate • Airport passenger arrivals and tourism data show encouraging trends Dubai's Strategic Location Dubai: Air passenger arrivals and tourism trends 140 120 12888 2 100 80 60 40 мин Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 RevPAR (AED 10s) (Ihs) Passenger traffic (mn people) (rhs) Hotel Occupancy (%) (lhs) Source: Emirates NBD Research, Dubai Statistics Centre, Bloomberg Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 2 1 0 4 3 250 5 200 AED Billion Dubai: External trade growth trends 150% 100% 50% 150 0% 100 -50% 50 -100% 0 -150% Imports Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 Exports & Re-Exports Source: Emirates NBD Research, Dubai Statistics Centre 7 y-o-y Growth % Emirates NBD#8y-o-y % change -40% -60% Jan-07 Dubai Economic Update (cont) Highlights Dubai property prices continued to inch up in 2012 • After dropping an average of 31% in 2009 (-36% for villas and -27% for apartments), property prices have grown at an average of 13% in 2012 (+18% for villas and +8% for apartments) • In Jan 2013, the trend continued with average prices up by 27% y-o-y (+32% for villas and +21% for apartments) • ENBD Share Price up 30% in 2013 since end - 2012 Dubai Property Prices y-o-y % change Price per sq ft (In AED) Dubai Property Prices (in AED) 1700 1500 1300 Mid range villa 1100 900 700 500 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Source: Cluttons, Bloomberg ENBD Share Price Mid range apartment Jan-09 May-09 May-09 Sep-09 Sep-09 Jan-10 Jan-10 May-10 May-10 Sep-1 Jan-11 Jan-1 May-11 Sep-11 May-11 60% Mid range villa Mid range apartment 40% 20% 0% -20% May-07 Sep-07 Jan-08 Source: Cluttons, Bloomberg May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 ENBD Price (in AED) 4.0 3.8 3.6 3.4 3.2 3.0 2.8 2.6 2.4 2.2 2.0 Jan-12 Feb-12 Mar-12 Source: Bloomberg Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 . 8 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 ENBD Volume (Mns) Jan-12 May-12 Sep-12 Jan-13 Emirates NBD#9UAE Banking Market Update 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 In the past couple of years the Central Bank of the UAE has sought to play a stronger role in the oversight and governance of the Banking Sector in the UAE This has resulted in a new regulatory regime with various regulations being introduced; for eg. the liquidity risk regulation, the large exposure limits regulation, the mortgage cap regulation amongst others. AED Billion Emirates NBD UAE Banking Sector Growth (AED billion) Banking Assets Nominal GDP 2,000 Loans & Advances Deposits 45% 40% 1,500 35% 30% 25% 1,000 500 0 33 2002 273 367 2003 321 448 2004 387 639 2005 506 859 2006 643 1,223 2007 758 |1,480 2008 ,562 2009 993 1.662 2010 1,093 1,734 2011 1,264 1,796 2012 1,311 20% 15% TT 10% 5% 0% Composition of UAE Banking Market (AED billion) Loans 235 956 1,191 GCC Banking Market UAE(1) KSA Banking Assets USD billion Deposits 214 969 1,183 Assets 325 1,555 Qatar Kuwait 171 1,880 Bahrain (2) 48 Oman 53 222 Assets % GDP(3) 489 133% 462 70% 113% 98% 174% 66% Emirates NBD ■Other Banks Source: UAE Central Bank Statistics as at Nov 2012, ENBD data as of Q4 2012. Loans and Assets presented gross of impairment allowances 1) Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2012 forecasted. UAE, Qatar, Bahrain as at Nov 2012, Kuwait, KSA as at Dec 2012 and Oman as at Sep 2012. Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts 9 y-o-y Growth %#10Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy Outlook Appendix Emirates NBD 10 10#11Summary Size One of the largest financial institutions (by asset size) in the GCC . Flagship bank for Dubai Government Flagship • 56% owned by Dubai Government Ownership Profitable Emirates NBD • Consistently profitable; despite significant headwinds during the last few years Fully fledged, diversified financial services offering Diversified offering Geographic presence • Ever increasing presence in the UAE, the GCC and globally Growth • Well positioned to grow and deliver outstanding value to its shareholders, customers, and employees 11#12Emirates NBD at a glance Largest bank in UAE No.1 Market share in UAE (at 31 Dec 2012): - Assets c.17.3%; Loans c.19.7% Deposits c.18.1% Retail market shares (estimated at 31 Dec 2012): Personal loans c.12% - Home loans c.6% Auto loans c.17% Credit cards c.15% - Debit cards c.22% 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 Credit Ratings Long Term Short Term Outlook Baa1* P-2 Negative Moody's A+ F1 Stable** Fitch Ratings CiCAPITAL intelligence A A1 Stable*** Emirates NBD Largest Branch Network in the UAE Ras al-Khaimah (3) Dubai 100 Abu Dhabi Sharjah Other 26 Umm al-Quwain (3). 14 Fujairah (2) 10 Total 150 Ajman (2)- Dubai (100) - Sharjah (14) Abu Dhabi (26) International Presence *LT debt ratings, standalone credit assessment and Bank Financial Strength Rating (BFSR) downgraded by one notch to Baa1/ba2/D+ from A3/ba1/D on 12 Dec 2012; **Viability Rating downgraded to 'bb+' from 'bbb'; removed from RWN on 26 Apr 2012;***reduced Financial Strength Rating (FSR) to 'BBB+' from 'A-' on 27 Nov 2012 Branch Conventional 100 Islamic Total 50 150 Rep office 12#13Emirates NBD is the Largest Bank in the UAE and one of the largest in the GCC by Assets as at 31 Dec 2012 Emirates NBD UAE Ranking by Assets (AED billion) UAE Ranking by Equity (AED billion) UAE Ranking by Profits (AED million) Emirates NBD 308 NBAD 31 NBAD 4,332 NBAD 301 Emirates NBD 31 FGB 4,150 ADCB 181 FGB 30 ADCB 2,736 FGB 175 ADCB 25 25 Emirates NBD 2,554 DIB 95 UNB 14 UNB 1,602 UNB 87 Mashreq 14 RAK 1,403 ADIB 86 ADIB 13 Mashreq 1,312 Mashreq 76 DIB* 11 ADIB 1,201 CBD 40 CBD 7 DIB 1,190 RAK 27 RAK 6 CBD 853 GCC Ranking by Assets (AED billion) GCC Ranking by Equity (AED billion) GCC Ranking by Profits (AED million) QNB 370 NCB** Emirates NBD NBAD 314 QNB NCB** 48 QNB 8,412 36 308 Al Rajhi 36 880 Al Rajhi 7,722 NCB** 6,012 301 NBK 33 NBAD 4,332 Al Rajhi 262 Riyad Bank 31 SAMBA 4,241 NBK 214 NBAD 31 FGB 4,150 SAMBA* 197 Emirates NBD 31 NBK 3,999 Riyad Bank 186 SAMBA* 30 Riyad Bank 3,395 KFH* 185 FGB 30 SABB 3,173 ADCB 181 KFH* 29 BSFR 2,953 Shareholders' Equity for Emirates NBD is AED 36.5 billion. The number shown is Tangible Shareholder's Equity which excludes goodwill and intangibles. *Data is as at Q3 2012; **NCB Profit data as at FY 2011, NCB Assets and Equity data as on Q2 2012; Source: Bank Financial Statements and Press Releases, Bloomberg 13#14Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy Outlook Appendix Emirates NBD 14#15Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED billion) Revenues Costs +5% +2% 10.8 9.9 9.7 10.2 3.6 3.7 3.4 3.5 3.1 8.4 Profits (AED billion) Pre-Provision Operating Profits 5.0 Emirates NBD Net Profits +7% -9% 7.1 3.7 6.6 6.3 6.5 3.3 2.5 2.6 2.3 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Assets and Loans (AED billion) Assets Loans Deposits and Equity (AED billion) Deposits +7% +2% +1% 214 308 282 282 286 285 209 215 218 200 193 196 203 181 162 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Equity +12% 28 29 31 26 20 2008 2009 2010 2011 2012 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 15#16FY 2012 Financial Results Highlights Emirates NBD Highlights Net profit of AED 2,554 million, +3% vs. 2011 • Dividend of AED 0.25 per share declared, +25% vs. 2011 ⚫ Net interest income declined 5% to AED 6,912 million due to 26 bps reduction in the net interest margin Non-interest income improved by 24%; core fee income improved by 11% Costs increased by 5% y-o-y due to consolidation of Dubai Bank from Q3 2011 and integration costs incurred in Q4 2012; costs improved by 2% excluding these impacts Continued balance sheet de-risking and conservatism on provisioning resulted in net impairment allowances of AED 4,004 million • Net loans increased 7% since end-2011 Deposits increased 11% since end-2011 • Headline LTD ratio at 102% vs. 105% at end-2011 Key Performance Indicators AED million FY 2012 FY 2011 % Net interest income 6,912 7,258 -5% Non-interest income 3,300 2,672 +24% Total income 10,212 9,930 +3% Operating expenses (3,669) (3,508) +5% Amortisation of intangibles (80) (94) -15% Pre-impairment operating 6,463 6,328 +2% profit Impairment allowances (4,004) (4,978) -20% Operating profit 2,459 1,350 +82% Share of profits and impairment of associates 110 (654) -117% Gain on disposal of 1,813 -100% subsidiaries Taxation charge (15) (26) -41% 2,554 2,483 +3% 35.9% 35.3% +0.6% Net interest margin Dividend per share (AED) 2.43% 2.69% -0.26% 0.25 0.20 +25% 31-Dec-12 31-Dec-11 % 218.2 203.1 +7% 213.9 193.3 +11% 16 Net profit Cost: income ratio AED billion Loans Deposits#17Q4 2012 Financial Results Highlights Highlights Net profit of AED 625 million, broadly stable vs. Q3 2012 and +312% vs. Q4 2011 ⚫ Net interest income improved 2% q-o-q and declined 8% y-o-y to AED 1,766 million due to net interest margin variability • Non-interest income declined by 6% q-o-q and improved by 32% y-o-y; core fee income stable q-o-q . Costs improved by 6% y-o-y to AED 958 million due to cost optimisation initiatives, but increased 10% q-o-q mainly due to Dubai Bank integration costs Continued balance sheet de-risking and conservatism on provisioning resulted in net impairment allowances of AED 940 million Net loans increased 3% q-o-q and 7% since end-2011 Deposits stable q-o-q and increased 11% since end-2011 Headline LTD ratio at 102% vs. 105% at end-2011 Key Performance Indicators Emirates NBD AED million Q4 2012 Q4 2011 % Q3 2012 % Net interest income 1,766 1,929 -8% 1,730 +2% Non-interest income 740 562 +32% 790 -6% Total income 2,506 2,491 +1% 2,520 -1% Operating expenses (958) (1,025) -6% (874) +10% Amortisation of (20) (23) -15% (20) intangibles Pre-impairment 1,528 1,443 +6% 1,626 -6% operating profit Impairment allowances (940) (1,057) -11% (1,008) -7% Operating profit 588 386 +52% 618 -5% Share of profits and impairment of 37 (227) -116% 27 +35% associates Taxation charge 0 (7) -108% (5) -111% Net profit 625 152 +312% 640 -2% Cost: income ratio 38.2% 41.1% -2.9% 34.7% +3.5% Net interest margin 2.47% 2.85% -0.38% 2.35% +0.12% AED billion Loans 218.2 31-Dec-12 31-Dec-11 203.1 % 30-Sep-12 % +7% Deposits 213.9 193.3 +11% 212.5 214.2 +3% -0% 17#18Net Interest Income Highlights NIM improved by 12 bps from 2.35% in Q3 2012 to 2.47% in Q4 2012 resulting in a 2% q-o-q increase in net interest income to AED 1,766 million • Q4 2012 NIM improvement driven mainly by higher loan spreads aided by interest recoveries Net Interest Margin (%) 3.01 2.813.782 2.65 2.60 2:89 2.592.582.592.52 2.412.41 Net Interest Margin Drivers (%) 2.21 2.23 2.11 2.015 2.05 Emirates NBD Qtrly NIM YTD NIM 2.96 2.85 2.69 2.63 2.63 2.53 2.462.422.47 2.47 2.43 2.28 2.35 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 FY 2012 vs. FY 2011 Q4 2012 vs. Q3 2012 2.69 0.04 (0.02) (0.02) 2.47 (0.15) 0.01 (0.07) (0.05) 0.12 2.43 2.35 FY 11 Loan Deposit Treasury Spreads Spreads Spreads Other FY 12 Q3 12 Loan Spreads Deposit Treasury Spreads Spreads Other Q4 12 18#19Non Interest Income Emirates NBD Highlights FY 2012 Non interest income increased by 24% from FY 2011 Higher core fee income by 11% Higher investment securities income by 158% Higher property income of AED 93 million relative to negative AED 250 million in 2011 FY 2012 Core gross fee income improved 12% due to - improvement in trade finance income (+9%) improvement in fee income (+29%) slight increase in forex, rates and other income (+1%) AED million Core gross fee income Fee & commission expense Composition of Non Interest Income FY 12 FY 11 % Q4 12 Q3 12 % 2,778 2,489 +12% 647 644 +0% Core fee income Property income/(loss) (146) (108) +36% (47) 2,632 2,381 +11% 600 93 (250) n/a (42) +13% 603 -0% 61 12 +391% Investment securities 575 223 +158% 79 175 -55% - offset by decrease in brokerage and asset management fees (- 23%) Other One-Off Income 0 -100% 0 Total Non Interest Income |3,300 2,672 | +24% 741 790 318 0 n/a -6% Core Gross Fee Income Trends (AED million) Core Gross Fee Income Trends (AED million) 262 (33) 8 2,778 4,426 -37% 1,428 3,436 3,340 52 2,489 861 744 2,778 2,489 +12% 1,120 886 882 911 878 110 142 1,263 1,136 1,156 889 1,151 614 557 529 579 632 FY 08 FY 11 Trade finance Fee Income Brokerage Forex, Rates & AM fees & Other FY 12 FY 09 Forex, Rates & Other Brokerage & AM fees FY 10 FY 11 FY 12 Fee Income Trade finance 19#20Operating costs and Efficiency Emirates NBD Highlights • Costs increased by AED 161 million or +5% y-o-y to AED 3,669 million in FY 2012 resulting from: - Increase of AED 229 million Dubai Bank related costs including AED 49 million of integration costs incurred in Q4 2012. AED 59 million increase in other costs mainly service and legal fees, computer costs and marketing expenses Offset by AED 78 million decrease in staff costs, AED 38 million decrease in occupancy costs and AED 11 million decrease in depreciation charges Excluding Dubai Bank costs dropped 2% y-o-y The Cost to Income ratio for FY 2012 stood at 35.9% The Cost to Income ratio will be managed to the longer term target range of c.34%-35% Cost to Income Ratio Trends 38.5 37.637.4 35.8 34.9 33.7 32.7. 32.9 32.2 32.2 30.7 31.4 CI Ratio (YTD) 35.9 35.7 35.335.135.435.2 33.8 33.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 Operating Cost Trends (AED million) 3,508 (78) 229 (38) 59 (11) 3,669 FY 11 Staff Cost Occupancy Depreciation Other Cost Dubai Bank FY 12 cost Operating Cost Components (AED million) +4% 3,508 3,656 3,053 0 93 322 -2% 2,197 1,878 2,119 275 265 227 232 285 275 669 667 714 FY 10 FY 11 FY 12 Dubai Bank Staff Cost Occupancy cost Depreciation Other Cost 20 20#21Credit Quality Emirates NBD Highlights • The impaired loans ratio improved by 0.1% q-o-q to 14.3% in Q4 2012 • Provision coverage of impaired loans was at 69.8% at end-2012 • FY 2012 impairment charges of AED 4 billion driven mainly by: - Corporate Specific provisions of AED 3.1 billion Islamic specific provisions of AED 636 million • Total portfolio impairment allowances of AED 3.6 billion or 2.8% of credit RWAs Management Targets for Impaired loan coverage ratios 80%-85% on underlying NPL portfolio C 55%-60% on overall impaired loans by 2013 Target coverage ratios to be achieved through more conservative provisioning for, and recognition of, impaired loans Impaired Loans and Coverage Ratios (%) 100.7 1.6 Q4 08 102.0 2.6 Q4 09 10.0 13.8 14.3 83.2 71.2 69.8 40.7 43.4 49.4 6.4 6.1 5.6 7.4 8.2 [4.4 Q4 10 Q4 11 Q4 12 Impact of DW/DH* % NPL ratio, excl. DW/DH* Coverage ratio, excl. DW/DH* % Coverage ratio, incl. DW/DH* % *DW/DH = includes D1 (exposure AED 9.38 billion; provision AED 552 million) and D2B (exposure AED 4.62 billion; provision AED 2.51 billion) 21#22Credit Quality Composition of Gross Loan Portfolio Emirates NBD Corporate and Retail Lending Portfolio Corporate & Sovereign Loans (AED 181 bn) Retail Loans (AED 20 bn) By Type (AED 236 bn) Retail By Econ Sector (AED 236 bn) 8% Trans. & com. Cont. 2% 3% Others 3% Overdr Others Manuf. 3% Trade 4% afts Manuf. Trade Trans. & 3% 4% com 3% Cont. 5% 4% 7% Others 3% Car Loans Sover eign Sov. 32% Corp. Per. - Per. - 11% 4% Sov. 42% Islami C 15% 32% Serv. 9% Corpo Per. - rate Ret. 45% RE 13% 13% Fin Inst 14% Corp. 4% Serv. 10% Credit Cards 16% Fin Inst 15% RE 12% Time Loans 6% Impaired Loans and Impairment Allowances (AED billion) Person al Loans 40% Impaired Loans Impairment Allowances 33.6 16.6 29.7 12.9 3.2 14.4 1.6 20.4 13.8 8.3 7.3 5.9 0.9 6.0 11.5 0.0 3.3 0.5 1.3.1.3 0.2 0.0 10.1 0.0 5.8/0.7 9.0 3.3 0.8 0.0 2.8 1.8 3.8 2.7 1.70.8 3.6 3.8 3.2 0.4 3.6 1.3 0.2 2.9 3.5 3.6 1.7 2.9 4.9 0.7.0.5 0.3-0.8) 0.3 0.4 0.2.1.4 2.1 0.2 Q4 08 Q4 09 Q4 10 Q4 11 DW/DH* Core Corporate Q4 10 Investment Securities *DW/DH = includes D1 (exposure AED 9.38 billion; provision AED 552 million) and D2B (exposure AED 4.62 billion; provision AED 2.51 billion) Q4 08 Q4 09 Q4 11 Q4 12 Q4 12 Retail Islamic 22 22#23Capital Adequacy Emirates NBD Highlights CAR and T1 improved 0.1% and 0.8% y-o-y to 20.6% and 13.8% respectively resulting from: Capitalisation 19.8 20.5 20.6 18.7 increase in Tier 1 capital by AED 1.25 billion in 2012 due to net profit generation for the year 11.9 12.6 13.0 13.8 10.5 45.6 41.8 43.6 45.0 - 2% reduction in RWAS 8.4 15.2 15.9 16.7 14.9 25.3 • Tier 2 Capital decreased 11% or by AED 1.8 bn during 2012 due to the amortization of MoF T2 deposits. ⚫ EIB rights issue of AED 1.5 billion in Q4 2012 to support Dubai Bank RWAs taken on as part of the integration (no impact to consolidated financial statements) 4.9 26.7 27.7 28.9 30.2 20.4 Q4 08 Q4 09 Q4 10 Q4 11 Q4 12 T2 T1 T1 % CAR % Capital Movements (AED billion) - Risk Weighted Assets – Basel II (AED billion) 31 Dec 2011 to 31 Dec 2012 Tier 1 Tier 2 Total -10% Capital as at 31 Dec 2011 28.9 16.7 45.6 241.3 223.9 10.6 220.5 Net profits generated 2.6 2.6 5.2 13.1 3.2 13.8 222.1 14.0 2.3 1.5 218.1 ===-2% 13.8 2.3 FY 2011 dividend paid (1.1) (1.1) Interest on T1 securities (0.3) (0.3) 225.4 207.6 204.4 206.5 202.0 Change in general provisions 0.6 0.6 Amortisation of MOF T2 (2.5) (2.5) Q4 08 Q4 09 Q4 10 Q4 11 Q4 12 Other 0.0 0.1 0.1 Capital as at 31 Dec 2012 30.1 14.9 45.0 Operational Risk Market Risk Credit Risk 23 23#24Funding and Liquidity Highlights Loan to Deposit (LTD) Ratio (%) Emirates NBD • Headline LTD ratio of 102% at end-2012 • The LTD ratio is being managed to the revised target range of c.95%-105% Liquid assets* of AED 30.8 billion as at 31 December 2012 (11% of total liabilities) • Debt maturity profile well within existing funding capacity ⚫ Issued AED 14.9 billion medium term debt during 2012 128.7 127.0 125.8 121.8 119.3 117.1 118.218.5 110.8 LTD Ratio (%) 107.0 105.1 103.1 102.0 101.2 99.999.2 98.1 97.9 96.3 91.7 T Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 Composition of Liabilities/Debt Issued and Maturity Profile of Debt Issued (AED million) Liabilities - AED 272 bn Debt/Sukuk Others Liabilities and Debt Issued Debt Issued Sukuk = AED 20.9 bn 18% Maturity Profile of Debt/Sukuk Issued 100% = AED 20.9 billion Banks 8% 5% 8% 4,426 5,940 4,400 Loan securitisations 16% 1,477 1,276 1,513 1,627 66% 79% 26 180 0 EMTNS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Customer deposits *including cash and deposits with Central Banks but excluding interbank balances and liquid investment securities 24 24#25Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED billion) Emirates NBD Signs of modest pickup in new underwriting with 9% growth in gross loans during 2012 +9% 235 221 223 228 212 216 218 (+3% 205 Balance sheet optimisation initiatives successful in improving deposit mix: 162 173 166 168 172 176 179 163 27 22 22 26 21 22 21 21 22 ― Growth of 11% in deposits 21 20 28 28 30 30 33 20 -2- -1 -1 1 0 -0 CASA growth of 15% or AED 12 billion during 2012 CASA % age of total deposits 43% at end-2012 compared to 41% and 31% at end-2011 and end- 2010 respectively Trend in Deposits by Type (AED billion) Q4 08 Q4 09 Q4 10 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Corporate Consumer Islamic Treasury +11% 209 208 214 214 200 162 83 181 193 1 2 -1- 1 1 0% 137 113 122 119 123 121 103 122 79 85 88 57 56 61 +15% 88 90 90 91 Q4 08 Q4 09 Q4 10 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Other Time CASA 25 25#26Associates and Joint Ventures Emirates NBD Highlights Significant de-risking of investment in Union Properties (UP) since 2009: - UP investment reduced by AED 0.5 billion in 2009, AED 1.0 billion in 2010 and AED 750 million in 2011 through recognition of share of losses and impairment Further downside risk on UP limited as carrying value is close to market value Network International accounted for as a jointly controlled entity from the start of 2011 with a carrying value of AED 1.4 billion at the end of Q4 2012 • 24.8% stake in Bank Islami Pakistan acquired as part of Dubai Bank Composition of Associates and Joint Ventures Income Statement AED million Union Properties FY 12 FY 11 % Q4 12 Q3 12 % (750) -100% n/a Share of losses* - Impairment of investment (74) -100% n/a (676) -100% - n/a National General Insurance 13 12 +5% 3 3 -17% Network International 91 81 +12% 33 23 +45% Bank Islami Pakistan 6 2 +179% 1 1 +0% Total 110 (654) -117% 37 27 +35% Investment in Union Properties Balance Sheet AED million 1.78 1.45 Union Properties FY 12 FY 11 % 532 532 +0% Q4 12 Q3 12 532 532 % +0% National General Insurance Network International 1,394 1,363 132 129 +3% 132 130 +2% 0.80 2.8 Bank Islami Pakistan 23 18 +2% +25% 1,394 1,361 +2% 23 26 -11% 2.3 0.33 0.33 1.3 Total 2,080 2,042 +2% 2,080 | 2,048 +2% 0.5 0.5 Q4 08 Q4 09 Q4 10 AED Billion Q4 11 Q4 12 --AED per share 26#27Divisional Performance Wholesale Banking Consumer Banking & Wealth Management • • . • Key focus during 2012 was on continued strategy re- alignment to ensure enhanced future customer service quality and share of wallet, increased cross- sell of Treasury and Investment Banking income and increased Cash Management and Trade Finance penetration Revenue declined 8% y-o-y resulting from net interest margin variability Loans rose by 9% from end-2011 as new underwriting more than offset normal loan repayments • Deposits grew by 15% from end-2011 CWM continued to improve its position during the quarter Revenue improved 12% y-o-y Deposits grew 17% from end-2011 Loans grew 7% from end-2011 driven by growth in personal loans, credit cards and the SME segment Channel optimisation strategy being pursued to enhance efficiency, resulting in a net reduction of 12 branches and 74 ATMs during 2012 to 100 and 556 respectively Balance Sheet Trends AED billion +9% 172.4 176.0 158.2 161.1 162.0 94.2 83.2 80.0 73.8 69.8 Emirates NBD Revenue Trends AED million -8% 4,835 4,637 4,400 4,280 3,648 1,248 1,126 1,132 1,157 1,008 3,587 +15% 3,274 3,505 2,640 3,122 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Loans Deposits NFI NII Balance Sheet Trends AED billion Revenue Trends AED million +7% 87.9 75.4 66.1 54.4 45.3 26.0 22.2 19.1 18.8 20.2 +12% 4,376 3,918 3,387 3,322 1,238 +17% 3,012 1,005 790 940 790 2,222 2,597 2,912 3,138 2,382 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Loans Deposits NFI NII 27#28Divisional Performance (cont) Global Markets & Treasury Islamic Banking* . Emirates NBD Revenue declined to AED 528 million in 2012 from AED 678 million in 2011 driven by negative net interest income despite higher non interest income Tightening of spreads in regional credit produced opportunities for the trading desk which resulted in a good year for credit trading desk Treasury Sales enjoyed a good year as volatility returned to the FX markets which saw some hedging interest from clients; the prevailing low interest rate scenario attracted some interest rate hedging activities as well Revenue Trends AED million -22% 528 701 678 590 959 303 401 623 682 338 189 -34 78 -3 -431 Islamic Banking revenue jumped +99% y-o-y due to higher net interest income and positive non interest income (net of customers' share of profit) . Financing receivables rose 2% to AED 23.3 billion from end-2011 Customer accounts reduced by 8% to AED 26.9 billion from end-2011 At end-2012, branches totaled 49 while the ATM & SDM network totaled 165 *Includes Emirates Islamic Bank and Dubai Bank 2008 2009 2010 2011 2012 NFI NII Balance Sheet Trends* AED billion Revenue Trends* AED million +99% +2% 1,187 29.2 26.9- 261 25.3 928 22.8 23.3 843 767 19.6 20.5 -8% 410 141 6' 595 17.9 18.0 15.9 927 703 706 667 518 2008 2009 2010 2011 2012 Loans Deposits -72 2008 2009 2010 2011 2012 NFI NII 28#29Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy Outlook Appendix Emirates NBD 29 29#302012 Strategic Imperatives Summary of Key Achievements Optimise Balance Sheet and Capital allocation • Headline LTD ratio of 102% at end-2012 from 105% during end-2011 • Strong CASA growth of 15% or AED 12 billion during 2012 • Raised AED 14.9 billion medium - long term funding at attractive pricing . Drive Profitability Emirates NBD . Roll out of sales effectiveness program and revised front-line incentive scheme in CWM Roll out of sales force effectiveness program and revamped product/services offerings in EIB • Developed a strategic plan and roadmap for the wholesale bank Ran a Group wide cost optimisation program Enhance Support Functions and Strengthen Platforms Undertake Measured Investments in Growth Areas • Expanded Tanfeeth scope and completed integration of all planned back office functions · Customer service excellence program rolled-out and key processes reengineered • Development of Group wide Business Process Management (BPM) program • Completed integration of Dubai Bank • Optimised retail distribution set-up Launch of China Representative Office in Beijing in May • Continued organic expansion in current international locations 30 30#312012 Strategic Imperatives Emirates NBD 1 Optimise Balance Sheet and Capital allocation 2012 Objectives • Maintain headline LTD ratio within revised 95% 105% target range - • Continue to focus on liabilities growth • including CASA and long term FDs Target raising medium - long term funding at acceptable pricing • Increase lending activity to select sectors i.e. consumer finance, mid corporate & SME, and large corporate sector in Dubai and Abu Dhabi • Continue to streamline and consolidate subsidiaries and decide on further divestment opportunities Evidence of Success • Headline LTD ratio of 102% at end-2012 from 105% during end-2011 Strong CASA growth of 15% or AED 12 billion during 2012, particularly in Retail banking also through widely marketed "Deposit Carnival" launch Group wide CASA:FD portfolio mix a healthy 43:57 at end-2012 compared with 41:59 and 31:69 at end-2011 and end-2010 respectively • Raised AED 14.9 billion medium - long term funding at attractive pricing • Consolidated Private Banking, Asset Management and brokerage under a newly created "Wealth Management" unit to realise further synergies and cross-fertilise between the units 31#322012 Strategic Imperatives (cont) Emirates NBD 2 2012 Objectives 1 Drive Profitability • Revenue growth - - Increase cross-sell and bolster fee based business within the Consumer Banking and Wealth Management segment; e.g. FX, bancassurance, investments, etc. Roll out sales effectiveness program across branches and direct sales force Extend key account management model across wholesale banking segment; e.g. drive treasury sales and investment banking services to existing corporate relationships • Cost management Continue to focus on cost and operate in a revised target cost income ratio of 34% to 35% Efficiency gains through merging operational activities into Tanfeeth, and centralising procurement activities Evidence of Success Roll out of sales effectiveness program and revised front-line incentive scheme, inter alia, drove CWM fee income and net interest income growth of 23% and 8% respectively in 2012 • Standalone EIB underlying revenues grew 23% through roll out of sales force effectiveness program and revamp of customer product and services offerings = Developed a strategic pian and roadmap for the wholesale bank to transform into a regional powerhouse; the strategic plan involves a large scale transformation of the wholesale banking unit encompassing among others: - - - - Detailed Key account planning which will be extended across all key accounts over 2012 - 2013 Enhancement of our transaction banking capabilities Renewed focus on offering leading investment banking services Increased investments in treasury and expanding our solution offerings Vigorously pursuing international expansion plans Development of superior credit processes Enhancement of operational efficiencies • Ran a Group wide cost optimisation program; Q4 2012 cost base AED 909 million (excluding integration costs) which is AED 116 million or 11% below Q4 2011 cost base 32 32#332012 Strategic Imperatives (cont) Emirates NBD 3 Enhance Support Functions and Strengthen Platforms 2012 Objectives - • Continue to upgrade and enhance IT platforms undertake implementation of the lean transformation initiative which was initiated in 2011 • Further enhance the scope of Tanfeeth by migrating additional banking support and back office processes • Further enhance the customer service proposition through focused initiatives to be undertaken by Group Service Quality / "Tamayyuz" • Implement Core banking and Private banking systems in KSA and Singapore (PB only) in addition to enabling online banking Evidence of Success • = Lean transformation in second wave with focus on IT portfolio rationalisation to focus on IT developments on key strategic priorities and optimise return on IT investment Expanded Tanfeeth (our shared services provider) scope with on-boarding of the Operations and Call Center at the beginning of the year Completed the integration of Emirates NBD's HR Services, Finance & Accounting, Collections and Trade Finance Operating units into Tanfeeth ⚫ Customer service excellence program rolled-out across all branches and key processes reengineered. Major improvements include • • - NPS (Net promotor scores) in branches increased by an additional 28% in 2012 Reengineering led to significantly improved Turn-around times (TAT), e.g. Auto Loans TAT improved by c.44% for premium customers and Credit Cards TAT improved by c.51% Development of Group wide Business Process Management (BPM) program aiming at process streamlining and automation to realise further efficiencies end to end from branches to back office and enhancing the customer experience Completed integration of Dubai Bank within nine months, creating the 3rd largest Islamic bank in the UAE by assets and branches 33 33#342012 Strategic Imperatives (cont) Emirates NBD 4 Undertake Measured Investments in Growth Areas 2012 Objectives ☐ ☐ Exploit domestic opportunities - Continue to enhance domestic distribution network through selecting, and implementing the most optimal channel mix - Push for regional leadership in private banking through increased capacity and market penetration - Focus on building SME asset book by leveraging improved infrastructure and increased credit appetite - Further grow our market share in Abu Dhabi Exploit international opportunities - Undertake organic expansion initiatives in current international locations, e.g. setup SME business in KSA - Continue small scale international expansion, e.g. representative offices in target markets - Identify and pursue meaningful international acquisitions in select target markets, e.g. KSA, Turkey, etc. Evidence of Success ▪ Optimised distribution set-up - Further optimised branch set-up (elimination of duplication) - Continued to enhance online banking offering - Launched enhanced mobile banking for EIB in Q3 and for Emirates NBD in Q4 ■ Enhanced the international footprint with launch of China Representative Office in Beijing in May ■ Continued organic expansion in current international locations resulted in 18% international branches income growth and 30% income growth in KSA 34 ==#35Tanfeeth Overview Emirates NBD تنفيذ tanfeeth Concept and objectives Current State • Tanfeeth was established as the GCC's 1st shared services company to deliver most cost efficient operations at significantly improved service levels through application of lean manufacturing methodologies to run efficient operations Strategic objectives: 1 Enhance competitiveness and value creation for our clients and Emirates NBD through efficient and consistent service delivery Continuously transfer best in class operations knowledge and infrastructure from world shared services industry leaders to the GCC Develop local talent platform that could be a role-model for the rest of the UAE • Tanfeeth established as 100% owned subsidiary of Emirates NBD • Headcount of 1,734 as at 31 December 2012 • Current operational scope includes all Emirates NBD back office operations. This includes 11 separate back office operating units as well as Emirates Islamic Bank's Call Center Operations and Retail Asset back office units. • Over the course of the year, successfully delivered on all SLA targets for Emirates NBD through wide-scale lean transformations. This has included: - - Up to 30 percent across-the-board service improvements Up to 20 percent cost efficiency gains 27 percent employee engagement improvement 21 percent customer satisfaction increase 35 55#36Tanfeeth Overview (cont) Emirates NBD تنفيذ Focus for 2013 tanfeeth ⚫ Further improve efficiency and customer satisfaction for Emirates NBD • Introduce additional value-added initiatives for Emirates NBD as part of our commitment to being a partner, not a vendor. One example is to introduce a virtual branch initiative in Emirates NBD's Call Center Operations to increase customer enquiry resolution rates and branch traffic volumes • Execute go-to-market strategy to onboard external clients and capitalize on market growth opportunities • Increase employee headcount to 2,300 Financial Metrics Tanfeeth aims to be a profitable entity by end 2013, beginning of 2014 - Thereon a growth rate of 15% in income targeted year on year This is over and above the cost efficiencies already provided to the Emirates NBD • Tanfeeth aims to provide a cost efficiency to Emirates NBD @ 8%, 15% and 20% for 2012, 2013 and 2014 of staff cost base taken over 36#37Emirates NBD enters 2013 with a focused longer-term strategy built on 5 core building blocks 1 Deliver an excellent customer experience Emirates NBD 3 4 5 Drive core business Run an Drive efficient organization geographic expansion 2 Build a high performing organization 37#385 core building blocks Emirates NBD 1 • Further expand the customer service excellence program rolled-out across all branches in 2012 Deliver an excellent · Further enhance our multi channel setup and provide enhanced convenience and ease of access customer experience 2 • Increase employee engagement across all levels through a series of employee initiatives Build a high . Attract, grow and retain National talent through a dedicated development program performing organization 3 • . Drive core business • Complete and leverage the Wholesale Banking "Mission Powerhouse" transformation program to drive growth Drive cross-sell and co-operation across Wholesale Banking, Wealth Management and Global Markets and Treasury Continue to grow prioritized growth areas on product side (like Retail assets and Wealth Management) and geographies (e.g. Abu Dhabi) 4 5 Run an efficient organization • Full implementation of Group wide Business Process Management (BPM) program aiming at process streamlining and automation to realise further efficiencies end to end from branches to back office • Drive further efficiencies in back office functions through Tanfeeth • Complete IT lean transformation program • Continue to optimize the organization structure and capture further non-FTE cost opportunities . Undertake organic expansion initiatives in current international locations, e.g. setup SME business in KSA • Drive geographic expansion Continue small scale international expansion, e.g. representative offices in target markets • Continue to identify and pursue meaningful international acquisitions in select target markets#39Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy Outlook Appendix Emirates NBD#40Outlook Emirates NBD Economic Outlook • • • . • . • During 2012 the UAE economy continued to display resiliency with an estimated GDP growth of 3.7% underpinned by rising oil output and modest private sector expansion Continued strength and growth witnessed in Dubai's traditional trade, logistics, tourism and retail sales sectors and signs of green shoots in the Dubai property market For 2013 the external environment remains challenging in the context of recessionary risks in the Eurozone, below trend US growth and an expected slowdown in Asia Nevertheless, the UAE remains well-positioned to enjoy robust GDP growth of 3.8% in 2013 driven by solid expansion in non-oil sectors offsetting an expected stabilisation in oil production In Dubai, growth is expected to accelerate to 3.9% in 2013 from an estimated 3.2% in 2012 as manufacturing, tourism and hospitality and non-oil foreign trade continue to benefit from strengthening regional consumption and investment Emirates NBD is well placed to take advantage of the expected acceleration in Dubai's growth Capitalisation and liquidity continue to be extremely strong, offering resilience and flexibility for the future Significantly de-risked and strengthened balance sheet offers strong platform for capturing future growth opportunities The Bank has a clear strategy in place and is focused on relentless execution 40 40#41Summary Profitability Dividends Income • Net profit up 3% in 2012 from 2011 at AED 2.6 billion Emirates NBD • Dividend declared of AED 0.25 per share, an increase of 25% over 2011 • Top-line income trends up +3% in 2012 from 2011 Expenses Credit Quality Capitalisation and Liquidity Strategy Outlook • Operating expenses improved 2% y-o-y excluding Dubai Bank costs and will be managed to a revised longer term cost income ratio target of 34%-35% • NPL formation and provisioning trends in line with expectations • NPL coverage improved by 6% during 2012 Capitalisation and liquidity continue to be extremely strong, offering resilience and flexibility for the future • Significant progress made in achieving strategic imperatives • Emirates NBD is well placed and has a clear strategy in place to take advantage of the improving growth outlook 41#42Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy Outlook Appendix Emirates NBD#432012 Awards رة من اللأعل المستدام - DUBAI AWARD FOR SUSTAINABLE TRAN Emirates NBD Emirates NBD wins "Dubai Award for sustainable transport" fourth edition. Emirates NBD named "Most Friendly SME Bank in the UAE" at the Mohammed Bin Rashid Awards for Young Business Leaders S&P/Hawkamah ESG Pan Arab Index Emirates NBD is Rated Amongst 50 top Regional Companies in the Hawkamah ESG Pan Arab Index. BEST INVESTMENT BANK AWARD Emirates NBD wins "Best Trade Finance Bank" Award for 2012 from Global Finance. GLOBAL FINANCI 43#442012 Awards ST INVESTMENT Emirates NBD BANK AWARD Emirates NBD wins "Best Foreign Exchange Providers in the UAE" Award for 2012 from Global Finance. GLORANCE Emirates NBD Asset Management named 'Best Islamic Wealth Management Service Provider' at the 2012 Sukuk Summit - Islamic Finance Awards of Excellence watch en Emirates NBD Asset Management named 'MENA Sukuk Manager' of the year at the 2012 Global Investor/ISF Investment Excellence Awards Emirates NBD wins award for 'Best Corporate Card' at Smart Card Awards Middle East 44#452012 Awards Wales in SWISS atio Emirates NBD Emirates NBD Asset Management named 'Best Asset Management Company' at Arab Achievement Awards 2012 Emirates NBD wins Asia's Best Brand Award at the 3rd CMO Asia Awards for Excellence in Branding and Marketing Arab Investment CIGU Thalgames CUMMIN Emirates NBD wins "Best Bank Brand" and award for leading PR and marketing company Emirates NBD wins "Best Customer Attraction" and "Best Overall Customer Experience" 45 45#462012 Awards BEST INVESTMEN Emirates NBD BANK AWARD Emirates NBD wins "Best Bank in UAE" Award for 2012 from Global Finance. LOBAL Bank Emirates NBD wins Banker Middle East "Best SME insurance product" award. FUND MAN REFORMANC AARD Emirates NBD Asset Management wins "Specialist Fund of the Year" at the 2012 MENA Fund Manager Performance Awards for its Emirates Global Sukuk Fund. Emirates NBD wins Visa LEADER award for 'The Best Issuing Institution' in MENA region 46#472012 Awards Emirates NBD Emirates Eminates ar Emirates NBD tops "Brand Simplicity Index" as region's No.1 Retail Banking Brand by Siegel+Gale gulfinews Emirates NBD ranked No. 1 service-oriented firm in Gulf News Honour List Emirates NBD Securities declared as "Winner of NASDAQ Dubai's Retail Broker of the Month Award for September 2012" Emirates NBD wins the "BFSI Deployment of the Year Award" at the 3rd Annual CNME ICT Achievement Awards 47#482012 Awards Emirates NBD Emirates NBD wins the "Banking & Finance Sector Implementation of the Year Award" at the 8th Annual Arabian Computer News Arab Technology Awards Emirates NBD Securities declared as "Winner of NASDAQ Dubai's Retail Broker of the Month Award for October 2012". Emirates NBD's 'Pay Yourself First' wins Silver at GEMAS Effie MENA awards 2012 48 ထု#49Large Deals Concluded in 2012 January 2012 March 2012 EMIRATES ISLAMIC BANK EMIRATES NBD BANK PJSC مصرف الإمارات الإسلامي EMIRATES ISLAMIC BANK USD 500,000,000 5 YEAR SUKUK Joint Lead Arranger Emirates NBD February 2012 IFA HOTELS AND RESORTS FZE March 2012 EMIRATES NBD BANK PJSC Emirates NBD January 2012 PALM DISTRICT COOLING LLC Emirates NBD RMB 750,000,000 3 YEAR SUKUK Emirates NBD USD 1,000,000,000 5 YEAR SUKUK Joint Lead Arranger & Bookrunner Emirates NBD Joint Lead Arranger & Bookrunner Emirates NBD بالم يوتيليتيز Palm Utilities AED 1,140,000,000 CONVENTIONAL AND ISLAMIC FACILITY Mandated Lead Arranger Emirates NBD February 2012 SAMPATH BANK සම්පත් බැංකුව சம்பத் வங்கி SampathBank ita HOTELS & RESORTS AED 173,750,000 TERM LOAN FACILITY Mandated Lead Arranger Emirates NBD USD 62,500,000 TERM LOAN SYNDICATED FACILITY Initial Mandated Lead Arranger & Bookrunner Emirates NBD July 2012 EMIRATES ISLAMIC BANK مصرف الإمارات الإسلامي EMIRATES ISLAMIC BANK USD 500,000,000 5 YEAR SUKUK June 2012 ARKAN BUILDING MATERIALS أركان ARKAN AED1,400,000,000 SYNDICATED FACILITY Guaranteed by Emirates NBD Initial Mandated Lead Arranger Emirates NBD#50Large Deals Concluded in 2012 (cont) April 2012 BANK ASYA June 2012 DIFC INVESTMENTS May 2012 MAF PROPERTIES Emirates NBD Dec ember2012 ROSBANK BANK ASYA USD 201,000,000,000 & EUR 96,500,000 DUAL CURRENCY SYNDICATED MURABAHA FACILITY Initial Mandated Lead Arranger & Bookrunner Emirates NBD USD 1,035,000,000 ISLAMIC SYNDICATED FACILITY MAJID AL FUTTAIM PROPERTIES USD 290,000,000 LOAN FACILITIES Initial Mandated Lead Arranger Mandated Lead Arranger & Bookrunner Emirates NBD Emirates NBD ROSBANK SOCIETE GENERALE GROUP USD 290,000,000 DUAL TRANCHE SYNDICATED TERM LOAN FACILITY (EBRD A/B LOAN) Mandated Lead Arranger & Bookrunner Emirates NBD June 2012 HORIZON EMIRATES TERMINALS LLC USD 75,000,000 & EUR 96,500,000 LOAN FACILITIES Mandated Lead Arranger Emirates NBD July 2012 DUBAI DUTY FREE Duty USD 1,750,000,000 SIX YEAR SENIOR UNSECURED SYNDICATED CONVENTIONAL AND ISLAMIC FINANCING FACILITY Initial Mandated Lead Arranger & Bookrunner Emirates NBD September 2012 ALBARAKA TÜRK KATILIM BANKASI A.Ş. alBaraka USD 293,200,000 DUAL-CURRENCY SYNDICATED MURABAHA FINANCING FACILITY Initial Mandated Lead Arranger & Bookrunner Emirates NBD December 2012 UNITED ARAB BANK البنك العربي المتحد UNITED ARAB BANK USD 125,000,000 2 YEAR CLUB TERM LOAN FACILITY Mandated Lead Arranger & Book runner Emirates NBD#51Large Deals Concluded in 2012 (cont) October 2012 PROMSVYAZBAN Promsvyazbank USD 307,000,000 & EUR 72,000,000 DUAL CURRENCY SYNDICATED LOAN FACILITY Mandated Lead Arranger, Book runner & Co- coordinator Emirates NBD December2012 EMAAR EMAAR PROPERTIES PJSC & EMAAR LIBADIYE GAYRİMENKUL GELISTIRME A.S. USD 500,000,000 CONVENTIONAL CLUB FACILITY Mandated Lead Arranger Emirates NBD Emirates NBD#52Additional Asset Quality Disclosures Investment/CDS Income and Impairments AED m Income: Emirates NBD FY 09 Q1 10 Q2 10 Q3 10 Q4 10 FY 10 Q1 11 Q2 11 Q3 11 Q4 11 FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Investment Securities 421 172 (7) 143 48 356 9 76 47 4 136 177 117 170 78 543 CDS 230 71 1 42 61 176 13 47 (10) 36 86 17 9 5 1 32 Total Income Impact 651 243 (6) 185 110 532 22 123 36 41 223 194 127 175 79 575 Impairments: Investment Securities (348) (35) (44) (76) (105) (261) (35) (57) (27) (102) (222) (22) (50) (38) (13) (124) Total P&L Impact 303 208 (50) 109 5 271 (13) 66 9 (61) 1 171 77 137 67 451 Balance Sheet: Fair Value Reserves 916 307 35 (329) 751 764 38 113 (16) (11) 125 176 36 23 88 323 Total Balance Sheet Impact 916 307 35 (329) 751 764 38 113 (16) (11) 125 176 36 23 88 323 Overall Impact: Total Investment Securities 989 444 (16) (262) 694 860 12 132 4 (108) 40 330 103 155 153 741 CDS 230 71 1 42 61 176 13 47 (10) 36 86 17 9 5 1 32 Total Impact 1,219 515 (16) (220) 756 1,035 25 179 (6) (72) 126 347 113 160 155 774#53Additional Asset Quality Disclosures Credit Metrics Emirates NBD AED m Credit-Specific Credit - PIP Other - PIP FY 09 Q1 10 Q2 10 Q3 10 Q4 10 FY 10 Q1 11 Q2 11 Q3 11 Q4 11 FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 P&L Impairment Allowances: 1,684 1,287 442 481 1,203 469 2,595 706 (57) 1,668 871 3,187 844 1,239 78 468 (338) 127 335 628 981 (124) 76 1,562 234 (336) 960 11 991 4,035 (61) (152) - 200 300 (500) - - - - - Investment Securities 348 35 44 76 105 260 35 57 27 102 221 22 50 38 8 119 Total Impairment Allowances 3,319 555 1,193 1,241 201 3,190 1,369 981 1,571 1,049 4,970 1,101 954 1,009 938 4,002 Balance Sheet Impairment Allowances: Credit - Specific 3,417 3,756 4,205 5,404 5,864 5,864 6,554 6,481 8,128 8,906 8,906 9,698 10,878 11,706 12,750 12,750 Credit - PIP 1,858 1,936 2,403 2,066 2,193 2,193 2,821 3,802 3,678 3,752 3,752 3,986 3,650 3,672 3,600 3,600 Other - PIP - 200 500 investment Securities 674 411 326 268 265 265 270 267 263 240 Total Impairment Allowances 5,948 6,102 7,134 8,238 8,322 8,322 9,644 10,550 12,069 12,898 240 12,898 246 13,931 245 14,773 254 15,632 246 246 16,596 16,596 Impaired Loans: Credit Investment Securities Total Impaired Loans 5,041 5,717 789 5,831 526 6,243 6,087 16,670 435 363 6,522 17,034 20,063 361 20,425 20,063 361 20,425 20,913 371 21,283 18,655 369 19,024 26,581 360 26,941 29,373 341 29,714 29,373 341 29,714 30,390 369 30,759 31,621 364 31,985 32,484 420 32,904 33,199 409 33,609 33,199 409 33,609 Loans & Receivables, gross of impairment allowances: Credit 218,968 216,966 209,882 Investment Securities Total Loans & Receivables 215,536 567 208,068 215,536 217,556 222,501 227,705 234,341 234,341 576 502 502 505 426 428 417 417 208,644 216,038 216,038 218,061 222,927 228,133 234,757 234,757 208,105 203,886 203,886 203,831 203,400 1,605 1,093 779 779 660 660 569 220,573 218,058 210,662 208,883 204,546 204,546 204,400 203,968#54Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] Ben Franz-Marwick Head, Investor Relations Tel: +971 4 201 2604 Email: [email protected] Shagorika Cairae Senior Analyst, Investor Relations Tel: +971 4 201 2620 Email: [email protected] Emilie Froger Buy-Side Manager, Investor Relations Tel: +971 4 201 2606 Email: [email protected] Emirates NBD 54 54