Financial and Operating Performance

Credit Quality Retail and Corporate Loans & Receivables Corporate Credit Quality Impaired loan ratio 9.2% at Q4 2010 vs. 0.97% at Q4 2009 97% of the portfolio is to UAE customers where the Bank has long-standing relationships Exposure is mainly to top tier names with diversified business interests and multiple sources of repayment Environment necessitates renegotiation of certain customer accounts; amounting to AED 7.3b vs. AED 7.8b at Q4 2009: these reflect renegotiated repayment terms in line with underlying cash flows; and without sacrificing interest or principal Corporate & Sovereign Lending Portfolio • • . Real Estate & Contracting Exposures to Real Estate and Contracting Sector are AED 25.9b (16%) and AED 5.5b (3%) respectively Selectively financing real estate sector; extent of finance is generally limited to: - 70% of construction cost excluding land; and land and cost overruns to be financed by the owner Real Estate financing is restricted to Emirates of Dubai & Abu Dhabi Exposures to these sectors are mainly to diversified businesses having multiple repayment sources of repayment Repayment experience is satisfactory Approximately 52% of the Real Estate portfolio has a repayment maturity of < 3 years 100% Transport & communicat ion By Sector(1) AED 165.2b Contracting 3% 3% Manufacturi Trade 4% ng 5% Others 6% Sovereign 32% Personal - Corporate 6% Real Banks estate Services 9% & Fls 16% 16% Personal loans Portfolio AED 7.0b (33%) 50% of value is to UAE nationals; 60% of value is to government employees Personal loans are only granted subject to salary assignment Personal Loans losses well within original expectations No funding is given to applicants working in the real estate, contracting and hotel industries 2010 delinquency trends for over " 90 days are decreasing; entry rates into delinquency are stable and trending downwards " Credit Cards Portfolio AED 2.5b (12%) Product with highest yield in Retail Portfolio 90+ delinquencies better than industry benchmarks Measures taken to control exposures on unutilised limits 2010 delinquency trends improving Retail Lending Portfolio Car loans Portfolio AED 1.7b (8%) Portfolio balance has declined from end-2009 due to changes in credit policy Minimum Income threshold has been raised Mortgages Portfolio AED 4.1b (19%) Only offered for premium developers Completed properties account for 80% of the portfolio Average LTV is 75% on original value By Sector(1) 100% = AED 21.3b Others Overdrafts 5% 8% Car Loans 8% Down payment of 10-20% mandatory based on customer profiles Credit " > 75% of the customers have only one loan from Emirates NBD Cards 12% Time 2010 delinquency trends improving 2010 delinquency trends improving 1) Loans and advances before provisions; Corporate & Sovereign Lending sectoral breakdown as per "Analysis by Economic Activity for Assets" in note 50, page 79 of the 2010 Financial statements Personal Loans 33% Loans Mortgages 19% 15% Emirates NBD 17

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