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Financial & Operating Performance

Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD Q4-17 Financial Results Highlights Highlights • • Net profit of AED 2,176 Mn for Q4-17 increased 17% y-o-y and declined 4% q-o-q Net interest income improved 14% y-o-y due to loan growth and helped by recent interest rate rises. Net interest income was flat q-o-q Non-interest income improved 24% y-o-y and 7% q-o-q due to higher income from bancassurance and the sale of investments Costs were higher by 4% q-o-q on an increase in Marketing and IT costs relating to our planned investment in digital and technology refresh Provisions of AED 537 Mn are higher 27% y-o-y and 24% q-o-q NPL ratio stable at 6.2% and coverage ratio strengthened to 124.5% Liquidity Coverage Ratio (LCR) of 146.0% and AD ratio of 93.1% demonstrates healthy liquidity position NIMs widened y-o-y helped by rate rises and improved funding costs and declined q-o-q due to competition for liquidity over year-end Key Performance Indicators AED Mn Better / Q4-17 Q4-16 Q3-17 (Worse) Better / (Worse) Net interest income Non-interest income Total income 2,795 2,460 14% 2,806 (0%) 1,241 1,003 24% 1,160 7% 4,037 3,463 17% 3,965 2% Operating expenses (1,322) (1,194) (11%) (1,270) (4%) Pre-impairment 2,715 2,269 20% 2,696 1% operating profit Impairment allowances (537) (424) (27%) (431) (24%) Operating profit 2,178 1,845 18% 2,264 (4%) Share of profits from 18 49 (64%) 42 (57%) associates Taxation charge (20) (37) 46% (30) 34% Net profit 2,176 1,857 17% 2,276 (4%) Cost: income ratio (%) Net interest margin (%) 32.7% 34.5% 1.7% 32.0% (0.7%) 2.51% 2.29% 0.22% 2.56% (0.05%) AED Bn Total assets 470.4 448.0 5% 461.1 2% Loans 304.1 290.4 5% 304.1 0% Deposits 326.5 310.8 5% 322.1 1% AD ratio (%) 93.1% 93.4% 0.3% 94.4% 1.3% NPL ratio (%) 6.2% 6.4% 0.2% 6.1% (0.1%) 31-Dec-17 31-Dec-16 % 30-Sep-17 % 15
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