Investor Presentaiton

Market Risk Market risks subject to capital charge are as follows: Interest Rate Risk Foreign Exchange Risk Equity Exposure Risk Commodity Risk Options Risk Capital charge on interest rate risk and equity exposure risk is restricted to Group's 'trading book', while capital charge on Foreign exchange risk applies on the Group's entire positions. The total Capital requirement for Market Risk as at 31 December 2020 is AED 1,533 million (2019: AED 1,070 million) as detailed below: Interest rate risk CAPITAL REQUIREMENT FOR MARKET RISK AS PER STANDARDISED APPROACH Equity position risk Options risk Foreign exchange risk Total capital requirement 2020 AED 000 1,141,055 2019 AED 000 875,773 122,412 64,503 269,546 129,725 1,533,013 1,070,001 Operational Risk Basel II framework outlines three methods for calculating the risk charge for operational risk - Basic Indicator, Standardised Approach and Advanced Measurement Approach. The Group presently follows the Standardised Approach. The total capital requirement for Operational Risk as at 31 December 2020 is AED 4,021 million (2019: AED 3,468 million). This charge is computed by categorising the Group's activities into 8 business lines (as defined by Basel II guidelines) and multiplying the line's three year average gross income by a pre-defined beta factor. 11 EMIRATES NBD BANK PJSC - BASEL II - PILLAR III DISCLOSURES FOR THE YEAR ENDED 31 DECEMBER 2020 Loans Other off-balance & Islamic financing AED 000 Debt securities AED 000 Other assets AED 000 Total funded AED 000 Commitments AED 000 OTC derivatives AED 000 sheet exposures AED 000 Total AED 000 non-funded Total AED 000 Foreign Currency 161,448,599 66,029,441 74,254,711 301,732,751 4,759,962 13,205,965 39,254,890 57,220,817 358,953,568 AED Total 326,712,275 488,160,874 66,029,441 411,732,097 159,274,533 713,464,848 85,019,822 3,545,955 8,305,917 1,430,256 14,636,221 12,460,598 51,715,488 17,436,809 74,657,626 429,168,906 788,122,474 RISK MANAGEMENT OBJECTIVES AND POLICIES CREDIT RISK Please refer Note no. 49 in the annual financial statements for detailed risk management objectives and policies on Credit risk GROSS CREDIT EXPOSURE - CURRENCY CLASSIFICATION 31 DECEMBER 2020 Loans Islamic & Financing AED 000 Debt securities AED 000 Other assets AED 000 Total funded AED 000 OTC Commitments AED 000 derivatives AED 000 exposures Other sheet off-balance AED 000 Total non-funded Total AED 000 AED 000 Foreign Currency 152,390,079 49,542,542 82,005,464 283,938,085 4,342,980 9,462,183 40,037,961 53,843,124 337,781,209 AED Total 322,390,635 474,780,714 1,346 49,543,888 92,808,307 174,813,771 415,200,288 699,138,373 21,243,013 75,086,137 436,443,301 774,224,510 Other Assets include Cash & Deposits with Central Bank, Due from Banks, Trading securities, Investment securities (net of Debt Securities), Investment Properties, Investment in associate, Property & Equipment, and Other Assets. 4,568,025 8,911,005 1,235,175 10,697,358 15,439,813 55,477,774 31 DECEMBER 2019 بنك الإمارات دبي الوطني Emirates NBD

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