Investor Presentaiton

NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 38 COMMITMENTS AND CONTINGENCIES (a) At 31 December 2021, the Group's commitments and contingencies are as follows: NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 39 RELATED PARTY TRANSACTIONS Letters of credit Guarantees Liability on risk participations Irrevocable loan commitments* 2021 AED 000 19,545,126 56,705,248 218,757 39,998,828 116,467,959 2020 AED 000 10,731,079 58,473,299 113,037 33,506,436 102,823,851 *Irrevocable loan commitments represent a contractual commitment to permit draw downs on a facility within a defined period subject to conditions precedent and termination clauses. Since commitments may expire without being drawn down, and as conditions precedent to draw down have to be fulfilled the total contract amounts do not necessarily represent exact future cash requirements. As at 31 December 2021 ECL on unfunded exposures amounted to AED 472 million (2020: AED 598 million) in Stage 1 with exposure of AED 88,952 million (2020: AED 80,262 million) and AED 160 million (2020: AED 104 million) in Stage 2 with exposure of AED 6,807 million (2020: AED 6,670 million). Unfunded exposure includes guarantees, standby letter of credits and irrevocable loan commitments. (b) Acceptance Under IFRS 9, acceptances are recognised on balance sheet with a corresponding liability. Accordingly, there is no off-balance sheet commitment for acceptances. (c) Capital Commitments The Group has commitments as at 31 December 2021 for branch refurbishments and automation projects of AED 531 million (2020: AED 699 million). Emirates NBD Group is partly owned by Investment Corporation of Dubai (55.75%), a company in which the Government of Dubai is the majority shareholder. Deposits from and loans to government related entities, other than those that have been individually disclosed, amount to 5% (2020: 6%) and 6% (2020: 5%) respectively, of the total deposits and loans of the Group. These entities are independently run business entities, and all financial dealings with the Group are on normal commercial terms. The Group has also entered into transactions with certain other related parties who are non government related entities. Such transactions were also made on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with third parties and do not involve more than a normal amount of risk. Related party balances and transactions are carried out on normal commercial terms and are as follows: Loans and receivables: To majority shareholder of the parent To parent To directors and related companies Customer and Islamic deposits: From majority shareholder of the parent From parent From associates 148,117,393 1,273,898 872,993 150,264,284 2021 AED 000 2020 AED 000 157,723,504 1,487,463 850,367 160,061,334 2021 AED 000 2020 AED 000 5,367,019 1,967,593 4,423,770 1,797,459 90,675 7,334,612 6,311,904 75 EMIRATES NBD BANK PJSC - GROUP CONSOLIDATED FINANCIAL STATEMENTS - FOR THE YEAR ENDED 31 DECEMBER 2021 76 بنك الإمارات دبي الوطني Emirates NBD

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