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Investor Presentaiton

Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment FY 2015 Financial Results Highlights • • • • • Net profit of AED 7,124 Mn for FY-15 improved 39% y-o-y Net interest income rose 8% y-o-y due to asset growth and a lower cost of deposits Non-interest income improved 1% y-o-y as core fee income growth was offset by lower gains from the sale of properties and investments. Core fee income improved 14% y-o-y driven by growth in trade finance, foreign exchange and derivative income, alongside growing credit card volumes Costs grew 8% y-o-y due to staff costs linked with rising business volumes and partially offset by a control on other costs Provisions of AED 3,406 Mn improved 32% y-o-y as cost of risk continues to normalise AD ratio of 94.2% improved 1% y-o-y despite tighter market liquidity conditions demonstrating strong structural liquidity NPL ratio improved to 7.1% and coverage ratio strengthened to 111.5% NIMS remained flat at 2.85% as downward pressure on loan spreads offset by growth in low-cost CASA deposits Key Performance Indicators AED Mn FY-15 FY-14 Better/ (Worse) Net interest income 10,241 9,496 8% Non-interest income 4,987 4,946 1% Total income 15,228 14,442 5% Operating expenses (4,719) (4,389) (8%) Pre-impairment operating 10,509 10,053 5% profit Impairment allowances (3,406) (4,995) 32% Operating profit 7,102 5,058 40% Share of profits from 166 210 (21%) associates Taxation charge (145) (129) (12%) Net profit 7,124 5,139 39% Cost: income ratio (%) Net interest margin (%) 31.0% 30.4% (0.6%) 2.85% 2.85% (0.00%) 31-Dec-15 31-Dec-14 % 406.6 363.0 12% Loans 270.6 246.0 10% Deposits 287.2 258.3 11% AD ratio (%) 94.2% 95.2% 1.0% NPL ratio (%) 7.1% 7.9% 0.8% AED Bn Total assets Emirates NBD 13
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