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NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 14 GOODWILL AND INTANGIBLES NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 14 GOODWILL AND INTANGIBLES (CONTINUED) Goodwill Intangibles on Acquisition 31 December 2021 AED 000 Banking license AED 000 Customer Core deposit relationships intangibles Brands AED 000 AED 000 AED 000 Total AED 000 Cost Balance as at 1 January 5,561,714 163,079 471,438 895,473 279,370 7,371,074 Foreign exchange (38) (102) (25,260) (18,611) (124,373) (168,384) movement* 5,561,676 162,977 446,178 876,862 154,997 7,202,690 Less: Amortisation and 163,296 Impairment Testing of Goodwill The goodwill acquired through business combinations with indefinite life is reviewed annually for impairment by comparing the recoverable amount based on value-in-use calculations for cash generating units (CGUS) to which goodwill has been allocated with its carrying value. The goodwill has been allocated to four cash-generating units: Corporate and Institutional banking Retail banking and Wealth Management Global Markets and Treasury Emirates NBD Egypt S.A.E. Key Assumptions used in Impairment Testing for Goodwill The recoverable amount of the cash-generating units has been determined based on a value in use calculation, using cash flow projections covering a five-year period and by applying a terminal growth rate thereafter. The calculation of value in use in the cash-generating units is most sensitive to the following assumptions: impairment Balance as at 1 January 4,903 290,691 762,309 1,057,903 Amortisation and 94,024 69,272 impairment for the year Balance as at 31 December 4,903 384,715 831,581 Interest margins; Net Goodwill and Intangibles . 5,556,773 162,977 61,463 45,281 154,997 Discount rates; 5,981,491 . Market share during the projection period; 1,221,199 31 December 2020 Cost 5,561,714 163,079 471,438 895,473 279,370 7,371,074 Less: Amortisation and impairment 4,903 290,691 762,309 1,057,903 Net Goodwill and 5,556,811 163,079 180,747 133,164 279,370 6,313,171 Intangibles *Foreign exchange movement relates to translation of acquired Goodwill and intangibles pertaining to Emirates NBD Egypt and DenizBank using the period end exchange rate. The goodwill and intangibles were acquired through business combinations. Goodwill and brands have indefinite life and are reviewed annually for impairment. Projected growth rates used to extrapolate cash flows beyond the projection period; Current local Gross Domestic Product ("GDP"); and Local inflation rates. Interest Margins Interest margins are based on prevailing market rates at the start of the budget period. These are changed over the budget period for anticipated market conditions. Discount Rates Discount rates reflect management's estimate of return on capital employed ("ROCE") required in each business. This is the benchmark used by management to assess operating performance and to evaluate future investment proposals. Discount rates are calculated by using the Weighted Average Cost of Capital ("WACC"). 55 EMIRATES NBD BANK PJSC - GROUP CONSOLIDATED FINANCIAL STATEMENTS - FOR THE YEAR ENDED 31 DECEMBER 2021 56 بنك الإمارات دبي الوطني Emirates NBD

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