#1Emirates NBD Investor Presentation November/December 2015 C Emirates NBD#2Important Information Emirates NBD Disclaimer The material in this presentation is general background information about the activities of Emirates NBD Bank PJSC (Emirates NBD), current at the date of this presentation, and believed by Emirates NBD to be accurate and true. It is information given in summary form and does not purport to be complete. Some of the information that is relied upon by Emirates NBD is obtained from sources believed to be reliable, but Emirates NBD (nor any of its directors, officers, employees, agents, affiliates or subsidiaries) does not guarantee the accuracy or completeness of such information, and disclaims all liability or responsibility for any loss or damage caused by any act taken as a result of the information. The information in this presentation is not intended to be relied upon as advice or a recommendation to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. An investor should seek independent professional advice when deciding if an investment is appropriate. Forward Looking Statements Certain matters discussed in this presentation about the future performance of Emirates NBD or members of its group (the Group), including without limitation, future revenues, earnings, strategies, prospects and all other statements that are not purely historical, constitute "forward-looking statements". Such forward-looking statements are based on current expectations or beliefs, as well as assumptions about future events, made from information currently available. Forward-looking statements often use words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, "plan", "goal", "seek”, “believe”, “will”, “may”, “should”, “would”, “could” or other words of similar meaning. Undue reliance should not be placed on any such statements in making an investment decision, as forward-looking statements, by their nature, are subject to known and unknown risks and uncertainties that could cause actual results, as well as the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements, such as changes in the global, political, economic, business, competitive, market and regulatory forces; future exchange and interest rates; changes in tax rates; and future business combinations or dispositions. Emirates NBD undertakes no obligation to revise or update any statement, including any forward-looking statement, contained within this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise. 2#3Emirates NBD Profile Operating Environment UAE Economic Update Emirates NBD Highlights 2015 real GDP growth forecast revised lower to 4.0% from 4.3%, and down from 4.6% in 2014. Oil production is up 2.8% year-to-date. Activity in the UAE non-oil private sector has slowed this year. Average PMI in the first ten months of 2015 was 56.5, down from 58.1 in the same period last year. UAE PMI eased further to 54.0 in October, the lowest reading in two-and-a-half years, suggesting a slower pace of expansion at the start of Q4. • Although new orders (57.6) and output (56.9) indices have declined, they are well above the neutral 50-level, indicating robust growth. Real GDP Growth Forecasts Country 2012 2013 2014 2015F 2016F UAE 6.9% 4.3% 4.6% 4.0% 4.5% China 7.7% 7.7% 7.3% 7.0% 6.7% Eurozone -0.8% -0.3% 0.9% 1.5% 1.8% India* 4.8% 4.7% 6.9% 7.4% 8.0% Japan 1.8% 1.6% -0.1% 1.0% 1.5% UK 0.7% 1.7% 3.0% 2.5% 2.3% US 2.3% 2.2% 2.4% 3.0% 3.0% Saudi 5.4% 2.7% 3.5% 3.0% 2.5% Egypt** 3.3% 2.1% 2.2% 4.5% 4.2% *India data refers to fiscal year (Apr-Mar) **Egypt data refers to fiscal year (Jul-Jun) Source: Haver Analytics, Bloomberg, Emirates NBD Research UAE Oil production Appendix Strategy M bpd Financial & Operating Performance 3.5 3.0 2.5 2.0 1.5 3 2 2 1.0- 0.5 0.0 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 UAE Oil Production (Ihs) Source: Bloomberg, Emirates NBD Research Jun-13 Sep-13 Dec-13 OPEC oil price (rhs) 유 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 140 120 100 ༈ ༄ ༅ ྂ 8༠ USD per barrel 54 550 52 56 58 60 62 UAE PMI - Non Oil Private Sector Activity Sep 11 Jan 12 May Sep Jan 12 12 13 13 13 Source: Markit/ Emirates NBD ■UAE PMI: Output རྗ May Sep Jan May Sep Jan May Sep 14 14 14 15 15 15 3#4Appendix Strategy 50 50 Financial & Operating Performance Emirates NBD Profile Operating Environment 55 60 65 70 Dubai Economic Update (1/3) Highlights Dubai's economy expanded 3.9% y/y in Q1 2015, slower than 5.1% growth in Q1 2014. The services sector has enjoyed the strongest growth in Q1 2015, up 5.6% y/y, accounting for 38.3% of total Dubai GDP. The Emirates NBD Dubai Economy Tracker indicates slower growth in the emirate's non-oil private sector in September but the index is still well above the neutral level. New orders growth was largely unchanged last month, indicating strong demand growth, while business optimism remains very high. 4% 3% Emirates NBD Dubai Economy Tracker Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Source Markit/ Emirates NBD Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 5 10 Dubai: Real GDP growth Emirates NBD 6% 4.6% 5% 4.1% 3.8% 3.5% 3.5% 3.0% 2% 3.1% do 0% -1% -2% -3% -4% -5% 2008 -4.3% 2009 2010 2011 2012 2013 2014 Source: Dubai Statistics Centre, Emirates NBD Research Dubai's fastest growing sectors 15 250 % yly Trade Manufacturing Construction Services 0 -5 -10 -15 Q1 | Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 Source: Haver Analytics, Emirates NBD Research 00 Q1 2015 4#5Appendix Strategy Operating Environment Dubai Economic Update (2/3) Highlights Passenger traffic at the Dubai International Airport (DXB) rose to 52.3 million in Jan-Aug 2015, up by 12.4% y/y. Passenger traffic is expected to exceed 79 million at DXB by end 2015 and 103.5 million by 2020, according to Dubai Airports. Dubai's hotel occupancy averaged 76.8% in Jan-Sep 2015, down from 77.7% in the same period of 2014. Supply of hotel rooms in Dubai increased by 5.7% y/y in September 2015. With supply of hotel rooms outpacing demand for Jan-Sep 2015, occupancy rates may remain stable or ease slightly with demand gradually catching up in run-up to 2020 Expo. Financial & Operating Performance Emirates NBD Profile Hotel occupancy and RevPAR 80 60 40 20 0 888 100 -20 بسبل السلس اسباني -40 Sep-10 Sep-11 Mn Emirates NBD 8 76543210 4 Dubai Airports passenger traffic ним Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Passenger traffic (Mn people) (Ihs) Source: Dubai Airports, Emirates NBD Research Composition of Dubai GDP Passenger traffic (% y/y) (rhs) 80 ཎྜ ཤྩ ཤྩ བྷྲ རྞ 。 ིི f 40 100 Dubai GDP by Sector (%) - 2014 Other Hosp. 5% 5% Financial servcs. 11% Manuf. 14% Transport, RevPAR (% y/y) Occupancy Rate (%) -40 Sep-12 Sep-13 Sep-14 Sep-15 Source: STR Global, Emirates NBD Research comm. 15% Source: Dubai Statistics Centre Trade 29% Constr. & RE 21% 5 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15%#6Dubai Economic Update (3/3) Highlights Residential real estate prices continued to decline across all sectors on an annual basis, according to Cluttons, with mid-range villas down -6.7% y/y in September. Apartment prices have been more resilient, according to Cluttons data. The Emirates NBD Dubai Real Estate Tracker indicates that activity in the residential real estate market slowed further in the three months to August with some of the weakness in the survey likely due to the summer lull. We expect the long term residential outlook to remain strong as population and economic growth should underpin demand in the run-up to 2020. Strategy % y/y Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Dubai Residential Property Prices 90 Mid range villas 70 10 Low end aptmts. High end aptmts. 60 50 30 10 -10 Mid range aptmts. High end villas -30 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Source: Cluttons via Bloomberg, Emirates NBD Research Thousands Business Licenses issued* 85 Business licences 75 Emirates NBD 112 12 % y/y 10 65 8 81.064 73.246 67.716 55 6 61.852 57.416 45 4 H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 Total Licences (LHS) % y/y (RHS) Source: DSC, *Licenses issued by DED only (excludes Freezones) Dubai Commercial Property Lease Rates % y/y 40 20 10 0 -10 -20 -30 -40 ུ 8 8 ༅ ° Ş8྅༈༙ Prime Office Secondary Office Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 2010 2011 2012 2013 Source: Cluttons via Bloomberg, Emirates NBD Research 2014 2015 CO 6#7Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Bn) UAE Banking Market Update Highlights Tighter liquidity conditions are evident: M2 growth slowed to 3.5% in Sept. (8.0% in Dec.) Bank deposits declined m/m Jun. to Aug. and increased slightly in Sept., y/y growth at 1.6%. (Gross) loan growth at 7.0% y/y, so LTD ratio increased to 102.9%. 3-month EIBOR has risen 17bp to 0.85% at 2-Nov-15 compared to 0.68% at start of year. 3 month $ LIBOR has increased by 8bp to 0.33% over the comparable period. Composition of UAE Banking Market (AED Gross Loans 285 1,193 1,479 Deposits 269 1,168 1,437 Assets 390 Emirates NBD Other Banks Source: UAE Central Bank Statistics, ENBD data as at end Sept 2015 Bank deposit and loan growth* 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Bank deposits (% y/y) Bank Loans (% y/y) Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Source: UAE Central Bank, *loan growth gross of provisions GCC Banking Market Banking Assets USD Bn Assets % GDP(3) 660 UAE(1) TIME KSA Qatar Kuwait 205 2,032 2,422 Bahrain(2) 52 Oman 77 291 589 84 152 142 159 1) Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2015 forecasted. UAE as at Sep 2015; Bahrain as at Jun 2015; Kuwait as at Jul 2015; Saudi, Oman & Qatar as at Aug 2015 Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts 99 177 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Emirates NBD#8Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD is a leading banking group in the region and the largest bank in the UAE Emirates NBD Size Flagship • One of the largest financial institutions (by asset size) in the GCC Flagship bank for Dubai Government Ownership • 56% owned by Dubai Government Profitable Consistently profitable; despite significant headwinds during the global financial crisis Diversified offering Fully fledged, diversified financial services offering Geographic presence Growth • Ever increasing presence in the UAE, the GCC and globally • Well positioned to grow and deliver outstanding value to its shareholders, customers, and employees 8#9Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Emirates NBD at a glance A Leading Bank in the UAE Market share in UAE (at 30 Sep 2015): Assets c.16.1%; Loans c. 19.3% Deposits c.18.7% Retail market shares (estimated at 30 Sep 2015): - - - Personal loans c.14% Home loans c.4% Auto loans c.15% Credit cards c.18% - Debit cards c.24% 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 M Baa1 P-2 Positive Moody's Fitch Ratings GCAPITAL A+ F1 Stable A A1 Positive intelligence Emirates NBD Largest Branch Network in the UAE Dubai 101 Ras al-Khaimah (5) Abu Dhabi 25 Sharjah 17 Umm al-Quwain (2). Other Emirates 12 Total 155 Ajman (2) Dubai (101) - Fujairah (3) Sharjah (17) Abu Dhabi (25) International Presence Branch ● Rep office Egypt (64 branches) 6#10Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance Emirates NBD is the largest bank in the UAE by Operating Income, Net Profit, Loans and Deposits in 9M 2015 Operating Income AED Mn, 9M 2015 Loans Net Profit AED Mn, 9M 2015 AED Bn, Q3 2015 Emirates NBD x% 9M 2015 vs. 9M 2014 x% Q3 2015 vs. Q4 2014 Total Deposits AED Bn, Q3 2015 Emirates NBD 11,155 2% Emirates NBD 4,990 27% Emirates NBD 262 6% Emirates NBD 269 4% NBAD 7,999 4% بنك الخليج الأول FGB بنك أبوظبي التجاري ADCB بنك الخليج الأول FGB 4,288 4% 212 9% 235 (3%) NBAD NBAD 6,915 1% 4,196 (0%) NBAD 6,245 11% بنك دبي الإسلامي السلمي AUSLA 4,788 18% Dubai Islamic Bank بنك أبو ظبي التجاري ADCB بنك دبي الإسلامي السلمي Dubai Islamic Bank 3,734 23% 2,691 38% بنك الخليج الأول FGB ينك أبوظبي التجاري ADCB بنك دبي الإسلامي السلم As Duhai Islamic Bank 154 10% 151 7% 92 92 23% AUSLA بنك الخليج الأول FGB بنك أبوظبي التجاري ADCB 142 0% 130 3% بنك دبي الإسلامي والسلم 109 19% Dubai Islamic Bank mashreq 4,458 3% mashreq 1,846 5% ADIB 77 6% ADIB 89 5% 10 10#11Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Emirates NBD is among top 3 banks in the GCC by Operating Income, Loans and Deposits in 2014 Operating Income USD Bn, 2014 Net Profit USD Bn, 2014 Loans USD Bn, 2014 Emirates NBD x% 2014 vs. 2013 Deposits USD Bn, 2014 NCB الأهلي * QNB 4.3 9% * QNB 2.9 11% * QNB 93 9% * QNB 99 7% 4.2 7% NCB Emirates NBD 3.9 22% Al Rajhi Bank مصرف الراجحي ↓ 3.6 (1%) Al Rajhi Bank مصرف الراجحي - الأهلي " يفلت الطنيج اللاوية FGB & 2.3 12% Emirates NBD 1.8 (8%) 20% 1.6 الأهلي NCB Al Rajhi Bank مصرف الراجحي இ 3 59 59 20 67 3% الأهلي NCBI 11% 89 18% Emirates NBD 70 8% 10% 55 Al Rajhi Bank مصرف الراجحي | இ 68 11% الوطني الوطني NBK 2.8 4% NBAD 1.5 18% NBK 53 7% بنك الرياض riyad bank بيت التمويل الكويتي Kuwait Finance House 58% بنك الرياض 2.6 (3%) Emirates NBD 1.4 riyad bank 41 2% سامبا ( samba 7% 66 44 3% 11#12Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Revenues Costs Profits (AED Bn) Emirates NBD Pre-Provision Operating Profits Net Profits +6% +4% +7% 14.5 4.4 4.2 10.1 +8% 5.1 5.0 +27% 11.9 10.8 3.6 +2% 3.6 11.2 3.6 3.8 +5% 9.8 9.9 10.2 3.2 1.2 1.2 3.4 2.4 7.2 7.6 7.8 +2%) 3.4 1.2 3.2 2.5 0.9 1.0 1.0 6.6 6.3 6.4 0.2 2.3 2.5 2.5 0.8 1.6 1.9 2.3 2.5 3.3 1.5 1.4 1.5 0.4 0.2 2.5 0.7 10.9 8.3 7.5 7.4 7.7 8.7 2.7 2.4 2.6 2.8 3.0 3.2 7.7 0.6 3.9 5.6 5.1 4.9 4.9 5.7 3.2 1.9 2.3 2.6 1.9 2009 2010 2011 2012 2013 2014 9M 15 2009 2010 2011 2012 2013 2014 9M 15 2009 2010 2011 2012 2013 2014 9M 2009 2010 2011 2012 2013 2014 9M 15 15 Assets and Loans (AED Bn) Assets Loans Deposits and Equity (AED Bn) Deposits +6% 390 +8% +3% 342 363 +7% 262 +6% 282 286 285 308 238 246 258 269 215 196 203 218 240 +4% 181 200 193 214 Equity +9% 43 +6% 41 35 26 26 28 29 29 31 2009 2010 2011 2012 2013 2014 9M 2009 2010 2011 2012 2013 2014 9M 15 15 2009 2010 2011 2012 2013 2014 9M 2009 2010 2011 2012 2013 2014 9M 15 15 Equity is Tangible Shareholder's Equity excluding Goodwill and Intangibles.; All P&L numbers are YTD, all Balance Sheet numbers are at end of period Source: Financial Statements 12#13Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Q3-15 YTD Financial Results Highlights Highlights Net profit of AED 4,990 Mn for Q3-15 YTD improved 27% y-o-y ⚫ Net interest income rose 8% y-o-y due to growth in Retail assets and a lower cost of funds • Non-interest income declined 7% y-o-y due to lower gains from the sale of properties and investments. However core fee income improved 14% y-o-y driven by growth in foreign exchange and derivative income, growing credit card volumes and higher asset management fees • Costs grew 5% y-o-y due to staff costs linked with rising business volumes and partially offset by a control on other costs Provisions of AED 2,808 Mn improved 27% y-o-y as cost of risk continues to normalize • AD ratio of 97.2% within management range demonstrates strong bank liquidity particularly during a challenging quarter for regional liquidity in the banking sector • NPL ratio improved to 7.1% and coverage ratio strengthened to 115.3% • NIMS declined marginally to 2.80% as downward pressure on loan spreads largely offset by growth in low-cost CASA deposits Individual figures may not add up to total due to rounding. Key Performance Indicators AED Mn Q3-15 YTD Q3-14 YTD Better/ (Worse) Net interest income Non-interest income 7,572 7,024 8% 3,583 3,863 (7%) Total income 11,155 10,887 2% Operating expenses (3,362) (3,212) (5%) Pre-impairment operating 7,793 7,675 2% profit Impairment allowances (2,808) (3,831) 27% Operating profit 4,985 3,844 30% Share of profits from 113 159 (29%) associates Taxation charge (108) (90) (21%) Net profit 4,990 3,913 27% Cost: income ratio (%) 30.1% 29.5% (0.6%) Net interest margin (%) 2.80% 2.83% (0.03%) AED Bn 30-Sep-15 31-Dec-14 % Total assets 390.4 363.0 8% Loans 261.6 246.0 6% Deposits 269.3 258.3 4% AD ratio (%) 97.2% 95.2% (2.0%) NPL ratio (%) 7.1% 7.9% 0.8% 13 Emirates NBD#14Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Q3-15 Financial Results Highlights Highlights Net profit of AED 1,673 Mn for Q3-15 improved 7% y-o-y and 2% q-o-q • Net interest income improved 5% y-o-y and 4% q-o-q as loan growth largely offset a contraction in margins • Non-interest income declined 27% y-o-y and 17% q-o-q due to lower gains from the sale of investments and properties on reduced volumes and lower income from foreign exchange and derivatives due to seasonal effect • Costs declined 3% q-o-q and increased 5% y-o-y due to staff costs linked with changing business volumes • Provisions of AED 821 Mn improved 33% y-o-y and 9% q-o-q as cost of risk improved for the 5th consecutive quarter • AD ratio of 97.2% within management range demonstrates strong bank liquidity particularly during a challenging quarter for regional liquidity in the banking sector NPL ratio improved to 7.1% and coverage ratio strengthened to 115.3% • NIMS declined marginally by 1bp to 2.75% as both loan and deposit rates held steady against a 5bp increase in average EIBOR rates and wholesale funding rates improved relative to EIBOR Individual figures may not add up to total due to rounding. Key Performance Indicators AED Mn Q3-15 Q3-14 Better/ (Worse) Better / Q2-15 (Worse) Net interest income 2,591 2,465 5% 2,497 4% Non-interest income 1,009 1,380 (27%) 1,213 (17%) Total income 3,600 3,845 (6%) 3,710 (3%) Operating expenses (1,126) (1,075) (5%) (1,157) 3% Pre-impairment 2,474 2,770 (11%) 2,553 (3%) operating profit Impairment allowances (822) (1,219) 33% (901) 9% Operating profit 1,652 1,552 6% 1,652 0% Share of profits from 39 38 3% 39 0% associates Taxation charge (18) (27) 33% (45) 60% Net profit 1,673 1,563 7% 1,646 2% Cost: income ratio (%) Net interest margin (%) 31.3% 2.75% 27.9% (3.4%) 2.95% 31.2% (0.1%) (0.20%) 2.76% (0.01%) AED Bn 30-Sep-15 31-Dec-14 % 30-Jun-15 % Total assets 390.4 363.0 8% 388.1 1% Loans Deposits 261.6 246.0 6% 256.2 2% 269.3 258.3 4% 274.4 (2%) AD ratio (%) 97.2% 95.2% (2.0%) 93.3% (3.9%) NPL ratio (%) 7.1% 7.9% 0.8% 7.4% 0.3% 14 Emirates NBD#15Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Net Interest Income Highlights Q3-15 NIMS declined marginally to 2.75% - Both Loan and deposit rates held steady against a 5bp increase in average EIBOR rates Treasury spreads improved as the rate on medium term borrowings improved relative to EIBOR Net Interest Margin (%) Emirates NBD 2.95 2.91 2.90 2.83 2.83 2.83 2.80 2.76 2.75 2.78 2.85 2.77 2.76 2.75 Q3-15 YTD NIMS declined marginally to 2.80% - Loan spreads experienced downward pressure y-o-y across a broad range of products 2.58 2.63 2.48 - Deposit spreads improved y-o-y due to growth in low-cost CASA replacing more expensive time deposits. 2.39 2.44 - Treasury Spreads remained flat as cheaper short term funding offset an increase in more expensive term funding Guidance for 2015 NIMs unchanged at 2.7 - 2.8% Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 YTD NIM Qtrly NIM Net Interest Margin Drivers (%) Q3-15 vs. Q2-15 Q3-15 YTD vs. Q3-14 YTD 2.83 2.76 (0.00) 2.80 0.02 2.75 0.00 (0.04) 0.03 (0.02) (0.12) 0.09 Q2 15 Loan Deposit Treasury Other Spreads Spreads Spreads Q3 15 Q3-14 YTD Loan Deposit Treasury Other Spreads Spreads Spreads Q3-15 YTD 15#16Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Funding and Liquidity Highlights AD ratio of 97.2% within 90-100% management target range Liquid assets of AED 50.5 Bn as at Q3-15 (14.8% of total liabilities) Debt & Sukuk term funding represent 11% of total liabilities Maturity Profile extended thanks to AED 9.5 Bn issuance in Q3-15 YTD through - Public Issuance of AED 4.7 Bn in 3 currencies and - Private Placements of AED 4.8 Bn in 8 currencies • Maturity profile affords Emirates NBD ability to consider public and private debt issues opportunistically Advances to Deposit (AD) Ratio (%) 105.1 102.0 99.5 Emirates NBD 99.2 97.2 95.3 95.6 95.2 95.6 93.3 Q4 11 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Target range AD Ratio Composition of Liabilities/Debt Issued (%) Liabilities (AED 341.5 Bn) Debt/Sukuk (AED 36.8 Bn) Banks 6% Syn bank borrow. 1% Maturity Profile of Debt Issued (AED Bn) Maturity Profile of Debt/Sukuk Issued 100% AED 36.8 Bn Customer deposits 79% Others 5% Loan secur. 1% 8,8 6,4 Debt/Sukuk 11% Sukuk EMTNS 7% 1% 1,0 5,1 3,0 *including cash and deposits with Central Banks but excluding interbank balances and liquid investment securities 5,4 4,6 1,7 0,6 0,1 0,1 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 2026 16#17Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Loan and Deposit Trends Emirates NBD Highlights Gross loans grew 7% since end 2014 with strong growth in Retail and Islamic banking Islamic financing grew 20% since end 2014 Consumer lending grew 9% since end 2014, mainly due to auto loans and credit cards Deposits decreased 2% q-o-q and increased by 4% from end 2014 • CASA deposits up 3% q-o-q and 9% since end 2014 and represent 61% of total deposits, up from 43% at end 2012 Trend in Gross Loans by Type (AED Bn) +7% +2% 285 272 279 259 262 265 267 271 235 216 205 178 195 196 209 197 200 201 202 207 162 166 22 28 29 29 33 27 27 28 29 20 22 20 28 33 36 36 38 39 38 40 43 46 3. 1 Q4 10 Q4 11 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Corporate Consumer Islamic* Treasury/Other Trend in Deposits by Type (AED Bn) * Gross Islamic Financing Net of Deferred Income +4% 274 -2% 252 253 258 269 260 240 250 214 LO 5 193 107 105 97 103 99 110 99 110 122 113 127 141 144 148 151 157 159 164 79 91 Q4 11 Q4 12 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Other Time CASA 17#18Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Non-Interest Income Emirates NBD Highlights Non-interest income declined 7% y-o-y due to lower gains from the sale of properties and investment securities • Core fee income improved 14% y-o-y driven by increases in foreign exchange and derivative income, growing credit card volumes as well as higher asset management fees which were partially offset by lower brokerage fees • Property income declined on lower demand for bulk and individual property sales compared to the previous period 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 Q3-15 YTD Q3-14 YTD Better / (Worse) Core gross fee income 3,630 3,236 12% Fees & commission expense (557) (551) (1%) Core fee income 3,072 2,685 14% Property income/(loss) 262 510 (49%) Investment securities 247 668 (63%) Total Non Interest Income 3,583 3,863 (7%) Trend in Core Gross Fee Income (AED Mn) Individual figures may not add up to total due to rounding. +11% 1,270 1,187 1,172 -1%) 1,059 1,088 387 312 291 256 273 54 64 63 72 58 575 578 646 625 647 164 174 183 179 176 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Forex, Rates & Other Brokerage & AM fees Fee Income Trade finance 18#19Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Operating Costs and Efficiency Highlights Costs declined 3% q-o-q Costs increased 5% y-o-y in Q3-15 due to higher staff costs linked with rising business volumes Cost to Income Ratio rose marginally by 0.1% q-o-q to 31.3% Adjusted for one-offs, the year-to-date Cost to Income Ratio was 31.7% • The longer term management target for cost to income ratio is 33% which provides headroom for future investment 27.9 Cost to Income Ratio (%) 33.1 Emirates NBD 31.2 31.3 29.5 30.4 30.1 28.1 29.6 Q3 14 Q4 14 Target Q1 15 CI Ratio (YTD) Q2 15 Q3 15 CI Ratio Cost Composition (AED Mn) +5% 1,177 1,075 1,079 1,157 1,126 83- 91 86; =83 88; -3% 677 656 670 717 712 94 75 86 94 78 77 80 86 84 87 172 229 163 188 159 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Egypt Staff Cost Occupancy Cost Depr & Amort Other Cost 19#20Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Credit Quality Highlights NPL ratio improved by 0.8% year to date to 7.1% Impaired loans improved to AED 20.3 Bn helped by over AED 1 Bn of writebacks & recoveries Cost of risk fell for the 5th consecutive quarter in Q3-15 with net impairment charge of AED 2.8 Bn in Q3-15 YTD, over AED 1 Bn lower than in Q3-14 YTD Coverage ratio increased to 115.3% due to the combined effect of routine provisioning and increased writebacks & recoveries • Total portfolio impairment allowances amount to AED 5.6 Bn or 2.65% of credit RWAS Impaired Loans and Impairment Allowances (AED Bn) Impaired Loans Impaired Loan & Coverage Ratios (%) Emirates NBD 115.3 109.8 103.9 100.3 92.0 85.4 80.1 76.1 66.2 64.7 70.3 57.5 60.7 49.4 14.3 13.9 13.8 13.5 12.6 4.0 3.6 3.5 3.5 3.1 7.9 7.8 7.4 7.1 10.3 10.3 10.2 10.0 9.5 Q4 12 Q4 13 Q1 14 Impact of DW % Q2 14 NPL ratio, excl. DW Q3 14 Q4 14 Q1 15 Coverage ratio, excl. DW % Coverage ratio, incl. DW % Q2 15 Q3 15 Impairment Allowances 36.1 36.0 35.8 34.4 20.8 21.9 23.1 24.2 -0.4- 21.2 22.0 22.6 23.3 +3% -0.4- 9.4 9.3 9.1 8.5 0.5 -0.4 -2% 21.1 21.2 20.6 20.3 14.5 15.2 12.8 13.6 16.2 16.2 16.2 16.4 16.9 17.7 18.0 15.8 15.3 15.4 15.2 14.4 3.7 3.7 3.8 3.8 3.8 3.9 3.9 3.9 6.5 6.6 6.4 0.2 6.1 5.3 0.4,0.1 5.2 0.5,0.1 0.4,0.1 4.9 5.3 0.5,0.1 0.5 0.5 0.6 0.7 3.4 3.8 0.1 4.2 0.1 4.5 4.2 4.3 4.3 4.7 0.2 -0.2 0.2 -0.2- 0.1 0.1 -0.3 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 DW Q1 15 Q2 15 Q3 15 Q4 13 Core Corporate Retail Islamic Q1 14 Other Debt Securities Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 20#21Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Capital Adequacy Emirates NBD Highlights Tier 1 ratio remained steady at 18% and CAR declined marginally by 0.1% to 20.9% • Increase in Capital due to retained earnings largely offset increase in RWAs Capitalisation 20.4 21.1 20.5 21.0 20.9 17.5 18.0 18.0 17.2 18.0 45.7 46.4 46.0 47.5 49.1 7.0 6.7 6.8 6.8 6.8 Increase in RWAs in Q3-15 due to growth in lending and treasury products 38.7 39.7 39.2 40.8 42.3 Capital Movements (AED Bn) Q4-14 to Q3-15 (AED Bn) Capital as at 31-Dec-2014 Net profits generated FY 2014 dividend paid Tier 1 Issuance/Repayment Tier 2 Issuance/Repayment Amortisation of Tier 2 Interest on T1 securities Goodwill Q3 14 Q4 14 T2 T1 Q1 15 -T1% Q2 15 Q3 15 CAR % Risk Weighted Assets - Basel II (AED Bn) Tier 1 Tier 2 Total +5% 39.7 6.7 46.4 5.0 - 5.0 (1.9) (1.9) 224.5 18.6 5.1 220.2 21.3 223.9 226.7 235.3 21.3 21.3 21.3 7.0 3.7 3.9 4.5 200.8 191.9 198.8 201.5 209.5 (0.4) 0.1 (0.4) 0.1 Q3 14 Q4 14 Q1 15 Q2 15 Other (0.1) 0.1 (0.0) Operational Risk Market Risk Q3 15 Credit Risk Capital as at 30-Sep-2015 40.8 6.8 49.1 21#22Emirates NBD Profile Appendix Strategy Financial & Operating Performance Operating Environment Loan Composition Total Gross Loans (AED 285 bn) Treasury/Other Retail 29 (10%) 1 (0%) 93 Corporate (33%) Corporate Loans (AED 93 bn) Cont. Trans. & com. 8% 5% Trade 15% Sovereign 117 (41%) Retail Loans (AED 29 bn) Others Overdrafts 5% Car Loans 14% 14% 46 (16%) Islamic* Personal 35% 14% 14% Credit Cards 5% Mortgages Time Loans RE 33% 8% Manuf. 2% Others** 15% 23% Per. - Corp. Serv. Fin Inst Islamic* Loans (AED 46 bn) Per. Retail 53% *Islamic loans net of deferred income; **Others include Agriculture and allied activities and Mining and quarrying Emirates NBD RE 14% Fin Inst 5% 7% Serv. 5% Others** 3% 4% Manuf. 6% 3% Trade Cont. Trans. & com. 22 22#23Divisional Performance Appendix Strategy Financial & Operating Performance Emirates NBD Profile Islamic Banking Operating Environment Wealth Management Retail Banking & Emirates NBD Retail loans grew 10% in 2015 whilst revenue grew 2% y-o-y due to a change in internal transfer pricing Loans grew 10% from end 2014 thanks to growth in Auto Loans, Cards and Mortgages Deposits declined 2% from end 2014 whereas CASA balances grew by 5% • The bank has improved its distribution as part of its channel optimization strategy and had 535 ATMs and 97 branches as at 30-Sep-15 RBWM offers an award winning 'best-in-class' online and mobile banking solution with innovative services such as DirectRemit, Mobile Cheque Deposit and Smart Touch. • • • Islamic Banking revenue grew 17% y-o-y and 4% q-o-q Financing receivables grew 19% from end 2014 across a range of products Customer accounts also increased by 16% from end 2014 • Net Interest Income continued to grow on the back of higher Financing Receivables As at 30-Sep-15, El had 58 branches and an ATM & CDM network of 180 Balance Sheet Trends Revenue Trends AED Bn -2% AED Mn +2% +10% +2% 113.5 111.1 1,411 1,420 1,444 513 547 540 30.3 33.4 898 873 904 I Q4 14 Loans Q3 15 Deposits Q3 14 Q2 15 Q3 15 NFI NII Balance Sheet Trends AED Bn Revenue Trends AED Mn +16% +17% +19% +4% 36.6 33.2 553 575 31.5 492 27.9 138 144 112 380 409 437 Q4 14 Q3 15 Financing receivables Customer accounts Q3 14 I Q2 15 Q3 15 NFI NII 23#24Divisional Performance (cont'd) Appendix Strategy Financial & Operating Performance Emirates NBD Profile Global Markets & Treasury Operating Environment Wholesale Banking Wholesale Banking revenues declined 3% y-o-y and 3% q-o-q Loans grew 4% from end 2014 • Deposits grew by 3% from end 2014 • Focus during 2015 is on enhancing customer service quality in key sectors, share of wallet, increased cross-sell of Treasury and Investment Banking products and larger Cash Management and Trade Finance penetration • Revenue declined 116% y-o-y primarily due to a realignment in internal transfer pricing adjustments Revenue declined 157% q-o-q on lower trading income due to recent volatility in global markets and seasonal effects Sales revenue grew on higher volumes in Interest Rate hedging products and FX Sales. This is expected to continue to grow as more corporate clients look to hedge their interest rate exposures on the expectation that global interest rates will rise Emirates NBD Balance Sheet Trends AED Bn +3% Revenue Trends AED Mn -3% +4% -3% 187.0 193.9 1,236 1,241 1,201 273 358 311 91.8 94.5 963 883 890 Q4 14 Q2 15 Q3 14 Q2 15 Q3 15 Loans Deposits NFI NII Revenue Trends AED Mn -116% 211 -157% 59 199 142 33 12 -84 -67 -34 Q3 14 Q2 15 Q3 15 NFI NII 24 24#25Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Summary Profitability Credit Quality Provisions Capital & Liquidity Income Net Interest Margin CI Ratio Outlook Emirates NBD • Net profit of AED 5.0 Bn for Q3-15 YTD improved 27% y-o-y due to growth in net interest income and lower provisions • NPL ratio improved to 7.1% helped by over AED 1 billion of writebacks and recoveries • Cost of risk continues to normalise, falling for 5th consecutive quarter • Provisions of AED 2.8 Bn in Q3-15 YTD, strengthened coverage ratio to 115.3% • Tier 1 ratio remained at 18.0% • AD ratio of 97.2% demonstrates strong bank liquidity during a challenging quarter • Total income rose 2% y-o-y to AED 11.2 Bn helped by an improving asset mix and an efficient funding base • NIMs marginally declined to 2.80% as downward pressure on loan spreads largely offset by growth in low-cost CASA deposits • Cost to Income ratio within management target at 30.1% in Q3-15 • Some signs of a slowdown in the economy due to lower oil prices and a strong dollar, but this is from a relatively high base • The strong balance sheet enables the Bank to meet challenges and to take advantage of any regional growth opportunities 25#26Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD's core strategy is focused on the following building blocks Key Objective Strategic Levers Deliver an excellent customer experience Run an Drive core business efficient organization Drive geographic expansion Enablers Build a high performing organization 26 26 Emirates NBD#27Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment 3 Strategic priorities for 2015 Priorities Deliver an excellent customer experience Focus Areas • • • Emirates NBD Continue to deliver superior customer experience through better service and product offerings Drive front line cultural/ behavior change Reinforce ENBD's position as a digital innovator in the region via best-in-class online and mobile banking services 2 Build a high performing organization • Enhance customer relationships in Wholesale Banking through new tools • Increase nationalization efforts with a focus on developing local leadership talent • Improved performance and reward management . Continue raising Employee Engagement level to meet global standards Diversify loans portfolio to include broader representation of sectors and markets . Drive asset growth through the fast growing Retail and Islamic franchises • Drive core business • • Increase penetration in key Wholesale Bank growth sectors, e.g., Trade Finance, Manufacturing Increase fee and commission income, e.g., via increased Trade Finance penetration and improved Treasury product offering 4 Run an efficient organization • Drive digital channel adoption to lower transaction costs • Develop robust risk and compliance culture to meet enhanced regulatory standards • Streamline processes and procedures in key business units 5 Drive geographic expansion • Complete IT and systems integration in Egypt in 2015 • Catalyze growth in current international markets by focusing on cross border trade and other opportunities . Continue to evaluate potential organic and inorganic opportunities in selected markets 27#28Operating 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® 'Best Retail Bank in the Middle East and the UAE' SMART CARD & PAYMENTS Awards MIDDLE EAST 'Best Prepaid Program - Emirates Islamic' جائزة محمد بن راشد آل مكتوم للأعمال Appendix Strategy Financial & Operating Performance Emirates NBD Profile MOHAMMED BIN RASHID AL MAKTOUM BUSINESS AWARD AN INITIATIVE BY DUBAI CHAMBER OF COMMERCE & INDUSTRY 'Business Excellence Award' 'Most Valuable Banking Brand in the UAE' 'Top 25 Global Banks on Social Media' effie effectiveness index 'World's Top Financial Services Brand' BANKING & FINANCE WHOLESALE BANKING 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' 28#29Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Large Deals Concluded in 2015 (1/2) Emirates NBD RELIANCE INFRATEL LIMITED USD 350,000,000 SEKERBANK USD 54,000,000 EUR 71,000,000 RELIANCE Şekerbank TERM LOAN FACILITY. SEPTEMBER 2015 Mandated Lead Arranger Emirates NBD DUAL CURRENCY TERM LOAN FACILITY. SEPTEMBER 2015 Mandated Lead Arranger Emirates NBD 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$225,000,000 TERM LOAN FACILITY US$ 75,000,000 REVOLVING LOAN FACILITY JULY 2015 Mandated Lead Arranger & Bookrunner Emirates NBD GEMS MENASA (Cayman) limited AED 3,000,000,000 GEMS EDUCATION CONVENTIONAL AND ISLAMIC FINANCING FACILITIES JULY 2015 Conventional Mandated Lead Arranger Emirates NBD AFREXIMBANK USD 458,000,000 EUR 406,500,000 AFREXIMBANK DUAL TRANCHE TERM LOAN FACILITY JULY 2015 Initial Mandated Lead Arranger & Bookrunner Emirates NBD FAR EAST HORIZON LIMITED USD 250,000,000 EMIRATES NATIONAL OIL COMPANY LTD. (ENOC) LLC USD 1,500,000,000 远东宏信有限公司 FAR EAST HORIZON LIMITED SYNDICATED TERM LOAN FACILITY. JUNE 2015 Mandated Lead Arranger & Bookrunner Emirates NBD اينوك ENOC DUAL CURRENCY CONVENTIONAL CREDIT & COMMODITY MURABAHA FACILITIES. JUNE 2015 Initial Mandated Lead Arranger & Bookrunner, Underwriter Emirates NBD As of end September 2015#30Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Large Deals Concluded in 2015 (2/2) Emirates NBD PT BFI FINANCE INDONESIA TBK. USD 50,000,000 BFI FINANCE SECURED TERM LOAN FACILITY. JUNE 2015 Mandated Lead Arranger, Bookrunner & Documentation Agent Emirates NBD PUMA INTERNATIONAL FINANCING S.A USD 1,250,000,000 PUMA ENERGY REVOLVING AND TERM CREDIT FACILITIES. MAY 2015 Mandated Lead Arranger & (Active) Bookrunner Emirates NBD FIRSTRAND BANK LIMITED USD 235,000,000 GUNVOR SINGAPORE PTE. LTD. FIRSTRAND TERM LOAN FACILITY. May 2015 Mandated Lead Arranger, Bookrunner Coordinator & Facility Agent Emirates NBD 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 PORT & FREE ZONE WORLD FZE STANBIC BANK UGANDA LIMITED USD 268,000,000 alBaraka SYNDICATED MURAHABA FINANCING FACILITY. APRIL 2015 Initial Mandated Lead Arranger, Joint-Coordinator & Bookrunner Emirates NBD USD 1,100,000,000 DP WORLD CREDIT FACILITIES. MARCH 2015 Initial Mandated Lead Arranger, Bookrunner & Underwriter Emirates NBD 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 September 2015#31Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] Emirates NBD 31 37