Investor Presentaiton

85 NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 42 NOTES TO THE GROUP CONSOLIDATED CASH FLOW STATEMENT 2021 AED 000 2020 AED 000 (a) Analysis of changes in cash and cash equivalent during the year Balance at beginning of year 20,911,912 Net cash inflow/(outflow) Balance at end of year (b) Analysis of cash and cash equivalents Cash and deposits with Central Banks Due from banks Due to banks Less: deposits with Central Banks for regulatory purposes Less: certificates of deposits/placements with Central Banks maturing after three months 32,291,487 7,820,431 (11,379,575) 28,732,343 20,911,912 70,753,613 45,343,248 (43,755,207) (51,672,068) 72,341,654 84,167,508 (45,176,256) (42,942,928) 100,841,896 34,997,680 Less: amounts due from banks maturing after three months Add: amounts due to banks maturing after three months (3,000,000) (23,450,016) 28,016,961 28,732,343 (33,500,000) (20,784,914) 33,972,246 20,911,912 (c) Adjustment for non-cash items Impairment loss/(reversal) on cash and deposits with central banks (878) Impairment loss on loans and receivables 6,234,860 122 7,875,539 Impairment loss/(reversal) on investment securities (12,481) 22,955 Impairment loss on unfunded exposures 64,678 70,914 Impairment loss/(reversal) on due from banks/other assets 23,166 123,349 Amortisation of fair value 130,209 123,015 Premium/(discount) on Investment securities (63,176) (4,087) Unrealised foreign exchange loss/(gain) 4,194,239 (763,131) Depreciation of property and equipment/investment property 800,969 856,895 Share of (profit)/loss of associates and loss on its disposal 21,137 (12,173) Unrealised (gain)/loss on investments Dividend income on equity investments Unrealised gain or loss on FV Hedged item Loss/(gain) on sale of properties (investment properties/inventories) Amortisation of intangibles Gain on disposal of a subsidiary 935 (18,742) (1,581,806) 342,319 (22,059) 1,460,021 3,063 163,296 34 163,296 (329,305) 9,630,164 10,237,009 EMIRATES NBD BANK PJSC - GROUP CONSOLIDATED FINANCIAL STATEMENTS - FOR THE YEAR ENDED 31 DECEMBER 2021 86 NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 43 CAPITAL MANAGEMENT AND ALLOCATION The CBUAE supervises the Group on a consolidated basis, and therefore receives information on the capital adequacy of, and sets capital requirements for, the Group as a whole. Effective from 2017, the capital is computed at a Group level using the Basel III framework of the Basel Committee on Banking Supervision (Basel Committee), after applying the amendments advised by the CBUAE, within national discretion. The Basel III framework, like Basel II, is structured around three pillars: minimum capital requirements, supervisory review process and market discipline. Minimum Capital Requirements The CBUAE issued Basel III capital regulations, which came into effect from 1 February 2017 introducing minimum capital requirements at three levels, namely Common Equity Tier 1 (CET1), Additional Tier 1 (AT1) and Total Capital. Additional capital buffers (Capital Conservation Buffer (CCB) and Countercyclical Capital Buffer (CCYB) - maximum up to 2.5% for each buffer) introduced over and above the minimum CET1 requirement of 7%. For 2021, as per the TESS standards, until June 2022, CCB is required to be kept at 1% of the Capital base. CCyB is not in effect and is not required to be kept for 2021. Over and above additional capital buffers, the Group as a Domestic Systematically Important Bank (D-SIB) is required to keep an additional D-SIB buffer of 1.5% of the Capital base, however this requirement is exempt as per the TESS standards until June 2022. Regulatory Capital The Group's capital base is divided into three main categories, namely CET1, AT1 and Tier 2 (T2), depending on their characteristics. CET1 capital is the highest quality form of capital, comprising share capital, share premium, legal, statutory and other reserves, fair value reserve, retained earnings, non-controlling interest after deductions for goodwill and intangibles and other regulatory adjustments relating to items that are included in equity but are treated differently for capital adequacy purposes under CBUAE guidelines. AT1 capital comprises eligible non-common equity capital instruments. T2 capital comprises qualifying subordinated debt, and undisclosed reserve. بنك الإمارات دبي الوطني Emirates NBD

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