Tanfeeth Overview

Credit Quality ☐ Highlights ■ The impaired loans ratio deteriorated by 0.1% q-o-q to 14.4% in Q3 2012 Provision coverage of impaired loans improved by 2% q-o-q to 48% in Q3 2012 - ■ Q3 2012 impairment charge of AED 1009 million driven mainly by: Specific provisions of AED 731 million, AED 80 million and AED 159 million made in relation to the Corporate, Retail and Islamic financing portfolios respectively ■ Total portfolio impairment allowances of AED 3.67 billion or 2.6% of credit RWAS Management Targets for impaired loan coverage ratios 80%-85% on underlying NPL portfolio C 55%-60% on overall impaired loans by 2013 > Target coverage ratios to be achieved through more conservative provisioning for, and recognition of, impaired loans Impaired Loans & Coverage Ratios (%) 102% 90% 83% 99% 80% 71% 72% 70% 71% NPL Ratio % 55% 45% 43% 45% 46% 48% 14.4% 45% 12.9% 13.8% 14.1% 14.3% 41% IIRL % 10.0% 10.4% 9.3% 6.4% 6.3% 6.3% 6.1% 6.7% 5.6% 5.7% 4.5% 2.6% Q4 09 4.4% 4.8% 4.8% 6.2% 7.4% 7.8% 8.1% 8.3% Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 * IIRL = Interest Impaired Renegotiated Loans at Q3 2012 comprises D1 (exposure AED 9.3 billion; provision AED 574 million) and D2B (exposure AED 4.6 billion; provision AED 1.56 billion) Emirates NBD 19

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