Investor Presentaiton

EMIRATES NBD REVIEW OF PERFORMANCE Financial Overview 2021 has been the year of returning back to normality. The UAE economy enjoyed a strong finish to 2021, with Expo 2020 Dubai and increased tourism boosting domestic demand. Expo 2020 Dubai is proving to be a great success for the nation and, as a Premier Partner and the Official Banking Partner, we are using the event stage to showcase our pioneering vision for the future of global banking. We have continued financing the real economy and were rewarded as economic growth rebounded, helped by government stimulus packages and the successful handling of the pandemic by the country's wise and visionary Leadership. We are very proud to have provided interest and principal deferral relief to more than 131,000 customers in the UAE, with almost 80% of the total amount of deferrals provided have now been repaid demonstrating the improved business sentiment and strong economic momentum. We proudly celebrated the UAE's 50th National Day in December and we look forward to the next 50 years of opportunity with excitement. Emirates NBD is fully committed and aligned to the 'Projects of the 50' to further develop the Emirati talent pool in the national workforce. In terms of our IT transformation journey, we upgraded and consolidated all our core technology platforms featuring a modern architecture. We are now 95%, and will soon be 100%, cloud native with the largest private cloud in Middle East. We also launched our Advanced Analytics Centre of Excellence to identify untapped revenue streams by scrutinising 21 million daily customer data points. We are proud of the progress we are making in transforming ourselves into an 'international data-first bank'. ESG gained increasing importance in 2021. We received our first CSR Label from the Dubai Chamber recognising International Organization for Standardization (ISO) 26000 guidelines on social responsibility. Emirates NBD Asset Management became a signatory of the United Nations supported Principles for Responsible Investment. Branches in the UAE and KSA were the first in the region to secure Leadership in Energy and Environmental Design (LEED) Gold certification. The 34% growth in our profitability demonstrates the financial resilience of the Group's diversified business model and the strong rebound in economic growth in 2021. This is evident by delivering a net profit of AED 9.3 billion which supports a proposed dividend of 50 fils per share which is 25% higher than 2020. The Group's balance sheet strengthened with further improvements in deposit mix, core capital and liquidity while credit quality remained stable. Total income for 2021 was up 3% y-o-y to AED 23.8 billion due to higher non funded income as a result of increased transaction activity, growth in foreign exchange and derivative income and a AED 0.3 billion gain relating to the sale of Dubai Bank. Record CASA balances kept the cost of funding stable. Net interest income is down 3% as the impact of earlier interest rates have now fully flowed through. Costs continue to be firmly under control with the cost to income ratio, at 33.5% for the full year, well within the 35% guidance. Costs are up by 2% y-o-y which is driven by increased business activity, investment in advance analytics and our digital strategies. The cost to income ratio improved in 2021 supported by positive income momentum. Credit impairment provisions for 2021 were 26% lower at AED 5.9 billion due to improving economic conditions and following proactive provisioning in 2020. The 124 bps cost of risk for 2021 is within the pre-pandemic range despite the Group maintaining the highest coverage level amongst its peers. 19 محتال العاب الاية بنك البن Emirates NBD marks UAE Flag Day ANNUAL REPORT 2021 20

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