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Investor Presentaiton

H1-14 Financial Results Highlights • • Highlights Net profit of AED 2,350 Mn for H1 improved 30% y-o-y Net interest income rose 25% y-o-y helped by an improved asset mix due to retail and Islamic growth, CASA growth leading to lower cost of funds and a contribution of 6% from Egypt Non-interest income improved 31% y-o-y boosted by increases in trade finance income, brokerage & asset management fees, gains from legacy property sales and a contribution of 4% from Egypt Cost to income ratio improved 4.2% y-o-y. Excluding one-offs, cost to income ratio would have been 31.4%. Costs increased 12% y-o-y due to staff and occupancy costs linked with rising business volumes and partially offset by a control of other costs. Egypt contributed 8% of the increase Provisions of AED 2,613 Mn boosted the coverage ratio by 7.2% in H1 to 64.7% AD ratio of 95.6% within 90-100% management range NIMS improved 33bp y-o-y to 2.77% due to improving asset and deposit mix and contribution from Egypt Key Performance Indicators Emirates NBD Better/ Better / AED Mn H1-14 H1-13 H2-13 (Worse) (Worse) Net interest income 4,559 3,661 25% 4,478 2% Non-interest income 2,483 1,889 31% 1,829 36% Total income 7,042 5,550 27% 6,307 12% Operating expenses (2,137) (1,914) (12%) (2,281) 6% Pre-impairment operating profit Impairment allowances Operating profit Share of profits from associates 4,905 3,636 35% 4,026 22% (2,613) (1,884) (39%) (2,829) 8% 2,292 1,752 31% 1,197 91% 121 67 82% 80 51% Gain on disposal of stake in associates/subsidiaries Taxation charge n/a 202 (100%) (63) (10) (537%) (31) (104%) Net profit 2,350 1,808 30% 1,448 62% Cost: income ratio (%) 30.3% 34.5% 4.2% 36.2% 5.9% Net interest margin (%) 2.77% 2.44% 0.33% 2.80% (0.03%) AED Bn 30-Jun-14|30-Jun-13 % 31-Dec-13 % Total assets 348.3 334.8 4% 342.1 2% Loans 241.8 231.8 4% 238.3 1% Deposits 252.9 230.3 10% 239.6 6% 16
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