Emirates NBD Banking Sector Update

Credit Quality Retail and Corporate Loans & Receivables • • Corporate Credit Quality Impaired loan ratio 12.4% at Q3 2011 vs. 9.5% compared to the same period last year. 95% of the portfolio is to UAE customers where the Bank has long-standing relationships Exposure is mainly to top tier names with diversified business interests and multiple sources of repayment Environment necessitates renegotiation of certain customer accounts; amounting to AED 13b in Q3 2011 vs. AED 7b at Q4 2010: these reflect renegotiated repayment terms in line with underlying cash flows; and without sacrificing interest or principal • Personal loans Portfolio AED 6.5b (30%) 55% of value is to UAE nationals; 60% of value is to government employees Personal loans are only granted subject to salary assignment Personal Loans losses well within original expectations No funding is given to applicants working in the real estate, contracting and hotel industries • • Corporate & Sovereign Lending Portfolio Real Estate & Contracting Exposures to Real Estate and Contracting Sector are AED 24.7b (15%) and AED 5.5b (3%) respectively Selectively financing real estate sector; extent of finance is generally limited to: 70% of construction cost excluding land; and land and cost overruns to be financed by the owner Real Estate financing is restricted to Emirates of Dubai & Abu Dhabi Exposures to these sectors are mainly to diversified businesses having multiple repayment sources of repayment Repayment experience is satisfactory Approximately 54% of the Real Estate portfolio has a repayment maturity of <3 years Credit Cards Portfolio AED 2.9b (14%) Product with highest yield in Retail Portfolio 90+ delinquencies better than industry benchmarks Measures taken to control exposures on unutilised limits 2010 & 9M 2011 delinquency trends improving Retail Lending Portfolio Car loans Portfolio AED 2.7b (13%) Portfolio balance has declined from end-2009 due to changes in credit policy Minimum Income threshold has been raised Down payment of 10-20% mandatory based on customer profiles 2010 & 9M 2011 delinquency trends improving Mortgages Portfolio AED 3.7b (17%) By Sector(1) AED 169.3 b 100% Transport & communicat. ion 3% Contracting 3% Sovereign 34% Trade Manufacturi 4% ng 4% Others 4% Personal - Corporate 6% Real Services 9% Banks & Fls estate 18% 15% Only offered for premium developers Completed properties account for 86% of the portfolio Average LTV is 75% on original value By Sector(1) 100% AED 21.6b = Overdrafts 11% Others 4% Car Loans 13% > 75% of the customers have only one loan from Credit Emirates NBD Cards 14% Personal Loans 30% Mortgages 17% 2010 & 9M 2011 delinquency trends improving 2010 & 9M 2011 delinquency trends improving 1) Loans and advances before provisions; Corporate & Sovereign Lending sectoral breakdown as per "Analysis by Economic Activity for Assets" in note 5, page 10 of the 3Q 2011 Financial statements Emirates NBD Time Loans 11% 24 21

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