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83 NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 41 FINANCIAL ASSETS AND LIABILITIES (CONTINUED) B. Fair value of financial instruments (continued) 31 December 2020 Level 1 AED 000 Level 2 AED 000 AED 000 Level 3 Total AED 000 Investment securities Trading securities at FVTPL Government Bonds 3,024,022 Corporate Bonds Equity 2,760,381 108,608 Others 2,891 5,895,902 3,024,022 2,760,381 108,608 2,891 5,895,902 FVOCI debt instruments Government Bonds 11,831,792 16,186 11,847,978 Corporate Bonds 4,562,585 72,045 16,394,377 88,231 4,634,630 16,482,608 FVOCI equity instruments 483,941 871 5,765 490,577 Designated at FVTPL Corporate Bonds Equity Others Positive fair value of derivatives Derivatives held for trading Derivatives held as cash flow hedges: NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 41 FINANCIAL ASSETS AND LIABILITIES (CONTINUED) B. Fair value of financial instruments (continued) The following table shows a reconciliation from the beginning balances to the ending balances for the fair value measurements in Level 3 of the fair value hierarchy. Trading securities at FVTPL AED 000 Balance as at 1 January 2020 Designated at FVTPL AED 000 525,669 Total gains or losses: - in profit or loss (367,699) - in other comprehensive income Purchases Issues Settlements and other adjustments Transfers into Level 3 Transfers out of Level 3 Balance as 40,941 76,498 117,439 159,313 2,615 161,928 200,254 79,113 279,367 at 31 December 2020 11,720,619 11,720,619 549,448 549,448 1,427,332 1,427,332 Interest rate swaps Derivatives held as fair value hedges: Interest rate swaps Derivatives held as hedge of a net investment in foreign operations: Forward foreign exchange contracts 13,697,399 13,697,399 Negative fair value of derivatives Derivatives held for trading (9,826,150) (9,826,150) Derivatives held as cash flow hedges: Interest rate swaps (106,004) (106,004) Derivatives held as fair value hedges: Interest rate swaps (804,474) (804,474) Derivatives held as hedge of a net investment in foreign operations: Forward foreign exchange contracts (38,603) 22,891,659 (10,775,231) 3,011,270 (38,603) (10,775,231) 167,693 26,070,622 EMIRATES NBD BANK PJSC - GROUP CONSOLIDATED FINANCIAL STATEMENTS - FOR THE YEAR ENDED 31 DECEMBER 2021 84 4,515 (557) 161,928 FVOCI- debt instruments AED 000 FVOCI- equity instruments AED 000 5,343 TOTAL AED 000 531,012 422 (367,699) 422 4,515 (557) 5,765 167,693 The fair value of financial instruments classified as level 3 are, in certain circumstances, measured using valuation techniques that incorporate assumptions that are not evidenced by the prices from observable current market transactions in the same instrument and are not based on observable market data. The Group employs valuation techniques, depending on the instrument type and available market data. For example, in the absence of active market, an investment's fair value is estimated on the basis of an analysis of the investee's financial position and results, risk profile and other factors. Favourable and unfavourable changes in the value of financial instruments are determined on the basis of changes in the value of the instruments as a result of varying the levels of the unobservable parameters, quantification of which is judgemental. There have been no transfers between Level 1 and Level 2 during the years ended 31 December 2021 and 31 December 2020. بنك الإمارات دبي الوطني Emirates NBD

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