Strategic Imperatives and Financial Overview

Summary of major achievements in 2010 Achievements Enhance Risk Management Selectively Invest in Platforms for Growth ■ Stress Testing - The Group advanced its comprehensive multi-period Stress Testing framework, which supports senior management in identifying and managing risks in the portfolio in order to ensure adequate capitalisation even under adverse economic conditions Internal models Stable second generation internal rating models with improved predictive power developed and implemented for the loan portfolios. Ensured smooth migration without disrupting the underwriting process - Optimised the application of credit scorecards at every stage of the customer lifecycle i.e. underwriting, account management, collections and re-underwriting resulting in improved Turn- Around-Times, better pricing, lower credit losses and a significant improvement in collections - Advanced the RAROC framework for the wholesale portfolios to ensure consistent and optimal underwriting and pricing decisions Completion of establishing the new Emirates NBD brand; brand valued at USD 1.2b by The Banker (February 2011), an increase of 41% over the previous year with a #1 ranking in the UAE and a ranking of #132 worldwide ■ Continue to build Private, Priority and SME banking businesses and expanded retail presence in Abu Dhabi through opening an additional Retail branch in Abu Dhabi, inauguration of the 1st SME Banking centre in Abu Dhabi with 11 staff, 5 additional Private Banking RMs and opening of 2 Priority Banking centres in Abu Dhabi Expanded distribution capability, with 3 net new branches in 2010 and additional 95 ATM/SDMS Singapore representative office upgraded to branch and build-up of KSA operations; KSA revenue and operating profit more than doubled and tripled respectively in 2010 ■ Continue to evaluate inorganic opportunities Underlying credit metrics within expectations Impaired loans ratio increased to 10.0% from 2.6% at end- 2009 ■ Retail portfolio delinquencies improving Emirates NBD 26 26

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