Financial and Operating Performance

Operating Costs and Efficiency Highlights ■ The cost to income ratio improved by 1.5% from 32.9% in 2009 to 31.4% in 2010 Operating costs declined by 14% to AED 3,053 million in 2010: - 11% improvement in staff costs driven primarily by post-integration rationalisation 4% improvement in occupancy, equipment and operations costs due to ongoing efficiency improvements in IT and Operations - 22% improvement in advertising, marketing and communications - costs mainly due to new branding costs incurred in 2009 51% improvement in other costs due to stringent control over discretionary cost and excess accrual reversals in 2010 Operating Cost Components (AED million) 100% = AED 3,053 million Advertising, marketing & communication Other costs 6% Cost to Income Ratio Trends Cost to income ratio (YTD) 38.5 37.6 37.4 35.8 34.9 33.7 32.9 32.7 32.2 32.2 31.4 30.8 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Operating Cost Trends (AED million) 5% Occupancy, equipment & operations 25% Staff costs 64% Emirates NBD 3,551 -232 -33 -48 -185 3,053 2009 Staff costs Occupancy, equipment & Advertising, marketing & Other costs 2010 operations communication 15

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