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Investor Presentaiton

Q2-22 results highlights * Highlights Income Risk Expenses Capital Liquidity Divisional Key Highlights Strong Q2-22 results with net profit up 42% y-o-y on higher income and lower impairments • Net interest income up 27% y-o-y on improved loan and deposit mix - Higher interest rates feeding through to margins - DenizBank experiencing strong loan growth and widening margins • Non-funded income up 101% y-o-y from increased transaction activity Better/ Income Statement (AED bn) Q2-22 Q2-21 Q1-22* (Worse) Better/ (Worse) Net interest income 5.1 4.1 27% 4.3 21% • Non-funded income 2.7 1.3 101% 2.1 25% Total income 7.8 5.4 45% 6.4 22% Operating expenses (2.1) (1.9) (10)% (2.0) (6)% Pre-impairment operating profit 5.7 3.5 64% 4.4 30% Impairment allowances (0.5) (0.9) 46% (1.4) 67% Tax and others (0.7) (0.2) (439)% (0.3) (184)% Profit after tax and before 4.5 2.5 83% 2.7 64% hyperinflation Hyperinflation adjustment (1.0) n/m n/m • Net profit 3.5 2.5 42% 2.7 28% Cost: income ratio 26.7% 35.3% 8.6% NIM 3.09% 2.44% 30.8% 0.65% 2.60% 4.1% 0.49% Balance Sheet (AED bn) 30-Jun-22 31-Dec-21 Inc/ (Dec) 31-Mar-22 Total assets 711 687 3% 694 Inc/ (Dec) 2% Loans 425 422 1% 425 Deposits 468 457 2% 469 CET-1 (%) 15.0% LCR (%) NPL ratio (%) 154.8% 6.1% 15.1% 177.6% 6.3% (0.1)% 15.0% (22.8)% 157.4% (0.2)% 6.4% (2.6)% (0.3)% - Increased local and international card transactions - Growth in client flow FX & Derivative transaction income Expenses well controlled in Q2-22 with positive jaws - Higher income enables Group to accelerate investment in international footprint and digital capabilities • Q2-22 cost of risk 41 bps on writeback and recoveries reflecting improving operating environment • • Healthy new lending on continued strong retail and renewed corporate lending demand Group maintains strong Capital and Liquidity with coverage ratio highest amongst regional peers As reported. If hyperinflation had been applied in Q1, net profit would be AED 0.9 billion lower in Q1-22 16
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