#1Emirates NBD Investor Presentation June 2010 Emirates NBD#2Important Information Disclaimer The material in this presentation is general background information about Emirates NBD's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. The information contained herein has been prepared by Emirates NBD. Some of the information relied on by Emirates NBD is obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. Forward Looking Statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning. Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. Emirates NBD undertakes no obligation to revise or update any forward looking statement contained within this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise. Emirates NBD 2#3Investment Highlights Emirates NBD is the largest bank in the UAE and the GCC Emirates NBD Leading Banking Group in the UAE and the GCC Solid Capitalization Tier 1 = 13.9%, Total CAR =21.9% Historically Prudent Risk Management Diversified Business Model with Fully Fledged Financial Services Offering Strong Asset and Profit Growth over the Past 5 Years Emirates NBD Dubai: Global Economic Hub with Strong UAE Federal Ties Experienced Management Team with Solid Track Record 56% Dubai Government Ownership 3#4Contents Emirates NBD Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 4#5UAE Economic Update Highlights UAE was impacted by external shocks including weaker oil prices, a credit squeeze, and declining world trade ■ Now these channels are improving, with oil prices firmer, global credit more available and world trade improving. Locally, monetary policy also responded to the crisis, with rates being cut and liquidity provided ■ UAE's accumulated surpluses over recent years enable it to engage in powerful counter-cyclical fiscal policies ■ Correction provides potential to put growth back on a more sustainable long-term path 140 120 100 80 80 40 20 0 1991 1992 1993 1994 1995 1996 Promising signs for oil (USD) 1997 1998 1999 2000 Source: Bloomberg Emirates NBD Brent oil $ per barrel 2001 2002 Rolling 180-day moving average 2003 2004 2005 2006 2007 2008 2009 Real GDP Growth Forecasts (1) 2008 2009 2010 2011 UAE 7.4% 0.0% 2.5% 4.5% UK 0.7% (4.5%) 0.5% 2.0% Eurozone 0.4% (4.0%) 1.0% 1.5% Germany 1.0% (4.8%) 1.0% 2.0% US 1.1% (2.5%) 3.0% 3.0% China 9.0% 8.5% 10.0% 9.5% Japan (0.7%) (6.5%) 2.0% 1.5% Singapore 1.3% (2.0%) 4.1% 5.0% Hong Kong 2.4% (2.5%) 4.0% 5.0% 20 20 15 10 UAE Real GDP - YoY (%)(1) 5 0 -5 2006 2007 2008 2009 ■Government spending Private consumption Export G&S ■Fixed Investment 1) EIU, Emirates NBD forecasts 2010 ■Real GDP growth 5#6Dubai Economic Update ■ ■ Highlights Dubai is the 3rd largest centre for re-exports in the world which itself represents 44% of GDP Oil has played a progressively diminishing role in Dubai's economy as compared to other sectors Dubai's textbook model of diversification is being challenged, but is responding with strong assistance from the Federation Dubai is a strategically located international trading hub with some of the world's best air and sea ports serving over 205 destinations. Lower inflation, stable USD and property market declines have enhanced Dubai's cost-competitiveness. Strength in emerging market currencies leaves UAE markets relatively cheap by comparison Dubai 2008 GDP breakdown UAE GDP by Emirate (2008) = 100% USD 254b Others 11% Dubai GDP by Sector (2008) 100% USD 81.7b = Financial Services. 8% Others 5% Oil 2% Abu Dhabi 57% Dubai 32% Manufacturi ng 14% Construction 24% / Real Estate Trading & Communicat ion 47% Emirates NBD Dubai's Strategic Location Source: UAE Ministry of Economy Dubai Exports - 2009 (USD billion) 2009 Exports of USD 50.7b +11% vs. 2007; -16% vs. 2008 5.0 4.6 4.2 4.2 4.2 4.3 4.2 4.0 4.0 3.9 4.0 3.9 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Dubai Chamber 6#7UAE Banking Market Update Highlights UAE loan growth has outstripped deposit growth in recent years UAE Banking system liquidity tightened in 2008 due to outflow of c. USD 50b of speculative capital and the Global credit/liquidity crisis following the Lehman's collapse Government intervention has been welcome: USD 13.6b backstop facility from MOF USD 19.1b set aside for direct injection into UAE banks; USD 13.6b deposited to date; option to convert to LT2 capital - Deposit & capital market guarantees announced Abu Dhabi Government injected c. USD 4.1b of Tier 1 capital into the Abu Dhabi banks Dubai Government injected USD 1.1b of Tier 1 capital into Emirates NBD Government of Dubai announced a USD 20b bond program UAE Banking Sector Growth (USD billion) 174 138 122 105 100 87 90 74 425 403 333 254 230 234 206 175 2002 2003 2004 2005 2006 Banking Assets Loans & Advances 2007 Nominal GDP Deposits 2008 2009 Composition of UAE Banking Market (USD billion) Source: UAE Central Bank, EIU, Emirates NBD estimates Loans 60 229 289 Deposits 49 218 268 Assets 78 347 ■Emirates NBD ■ Other National Banks Source: UAE Central Bank, 31 December 2009 Loans and Assets presented gross of impairment allowances Emirates NBD GCC Banking Market Banking Assets USD billion Assets % GDP UAE(1) 403 159 Saudi Arabia 351 79 Kuwait 134 69 89 Qatar 111 124 425 Bahrain (2) 48.5 Oman 36 75 1) Includes Foreign Banks 2) Excludes off-shore banking units Source: UAE Central Bank; National Central Banks, 31 December 2008 and Emirates NBD forecasts 264 7#8Contents Emirates NBD Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 8#9Summary Emirates NBD Largest financial institution (by asset size) in the GCC and the UAE Flagship bank for Dubai and the UAE Governments 56% owned by Dubai government Consistently profitable; the No.1 bank in the UAE by income and net profits Fully fledged, diversified financial services offering Ever increasing presence in the UAE, the GCC and globally Well positioned to grow and deliver outstanding value to its shareholders, customers, and employees Emirates NBD 9#10Emirates NBD at a Glance Largest Bank in UAE No.1 Market share in UAE: - Assets c.18%; Loans c.21% Deposits c.18% No. 1 Retail market shares (estimated): - Personal loans c.22% - Home loans c.9% Auto loans c.11% Credit cards c.10% Debit cards c.18% Fully fledged financial services offerings across retail banking, wholesale banking, global markets & trading, investment banking, brokerage, asset management, merchant acquiring and cards processing] Credit Ratings Emirates NBD Moody's (¹) A2 Fitch (2) A+ Capital Intelligence A+ 1) Moody's Long-term rating on review for possible downgrade 2) Fitch Individual Rating "C" on credit watch negative Emirates NBD Largest Branch Network in the UAE Ras al-Khaimah (4) Dubai 91 Abu Dhabi 18 Umm al-Quwain (2) Sharjah 12 -Fujairah (3) Other Emirates 12 Ajman (3) Total 133 Dubai (91) Sharjah (12) Abu Dhabi (18) International Presence Conventional 103 Islamic Total 30 133 10#11Emirates NBD is the Largest Bank in the UAE and GCC by Assets UAE Ranking by Assets (USD billion) UAE Ranking by Equity (USD billion) UAE Ranking by Profits (2) (USD million) (1) Emirates NBD 76.7 Emirates NBD 7.0 NBAD 53.6 First Gulf Bank 6.2 Emirates NBD First Gulf Bank 910 901 ADCB 43.6 NBAD 5.6 NBAD 822 First Gulf Bank 34.2 ADCB 5.2 DIB 327 Mashreq 25.8 Mashreq 3.1 UNB 315 DIB 23.0 DIB 2.4 Mashreq 272 UNB 20.6 UNB 2.3 CBD 219 ADIB 17.4 ADIB 1.9 ADIB 21 CBD 10.0 CBD 1.5 ADCB -140 GCC Ranking by Assets (USD billion) GCC Ranking by Equity (USD billion) GCC Ranking by Profits (2) (USD million) Emirates NBD 76.7 NCB 7.8 Al Rajhi Bank 1,804 NCB 68.6 Al Rajhi Bank 7.7 Samba 1,216 NBAD 53.6 Riyad Bank 7.5 QNB 1,154 Samba 49.5 Emirates NBD 7.0 NCB 1,077 QNB 49.2 KFH 7.0 NBK 924 Riyad Bank 47.0 NBK 6.4 Emirates NBD 910 Al Rajhi Bank 45.5 FGB 6.2 First Gulf Bank 901 NBK 45.0 Samba 6.0 NBAD 822 ADCB 43.6 NBAD 5.6 Riyad Bank 808 KFH 39.3 QNB 5.5 Banque Saudi Fransi 659 1) Shareholders' Equity for Emirates NBD is USD 8.7b. The number shown is Tangible Shareholder's Equity which excludes goodwill and intangibles Source: Bank Financial Statements and Press Releases: 31 December 2009 Emirates NBD 11#12Contents Emirates NBD Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 12#13Profit and Balance Sheet Growth in Recent Years 1.3 1.9 2006 2007 Assets 45 Revenues (USD billion)(1) +20% 2.9 2.3 2008 2.2 0.7 0.7 0.8 1.1 Net Profits (USD billion) (1) 2009 1Q 10 2006 2007 Assets and Loans (USD billion) +15% 77 79 77 69 2006 2007 2008 2009 1Q 10 Loans 30 +18% 57 58 58 58 45 2006 2007 2008 2009 1Q 10 Deposits 26 +4% 1.0 0.9 2008 0.6 0.3 0.3 2009 1Q 10 Deposits and Equity (USD billion) +19% 52 49 44 38 2006 2007 2008 2009 1Q 10 Equity(2) 7.5 +16% 7.0 5.2 5.3 4.2 2006 2007 2008 2009 1Q 10 1) The comparative results for 2007 were prepared on a pro forma basis, which assumed that the merger occurred on 1 January 2007. Prior Year 2006 is the aggregation of Emirates Bank International and NBD 2) Equity is Tangible Shareholder's Equity excluding Goodwill and Intangibles. Source: Financial Statements, Aggregation of Emirates Bank International and NBD results Emirates NBD 13#14Q1 2010 and 2009 Financial Results ☐ Q1 2010 Financial Results Highlights Operating profit before impairment allowances of USD 460m; -1% from USD 463m in Q1 2009; +4% from USD 442m in Q4 2009 Operating profit of USD 309m; -8% from USD 337m in Q1 2009; +68% from USD 184m in Q4 2009 Net profit of USD 302m; -12% from USD 343m in Q1 2009; +523% from USD 48m in Q4 2009 Improvement of equity & bond markets resulted in positive impact from mark to market valuations of USD 44m vs. negative USD 62m in Q1 2009 and negative USD 38m in Q4 2009 Net profit for Q4 2009 impacted by USD 86m impairment on and USD 44m share of losses of associate investments; negligible impact in Q1 2010 Capital ratios remain strong; CAR 21.9% and T1 13.9% at end Q1 2010 Loans declined 1% from 4Q 2009 levels while deposits grew 6%, improving the loan to deposit ratio to 111% from 118% at end-2009 2009 Financial Results Highlights Operating profit before impairment allowances of USD 1,970m; +42% from USD 1,386m in 2008 Operating profit of USD 1,066m; +14% from USD 936m in 2008 Net profit down 9% from 2008 Improvement of equity & bond markets resulted in positive impact from mark to market valuations of USD 58m vs. negative USD 615m in 2008 Net profit impacted by USD 86m impairment on and USD 44m share of losses of associate investments Cash dividend of 20% proposed by Board Capital ratios strengthened significantly from 2008 levels (CAR 20.8% and T1 13.3% at end-2009) USD million Net interest income Fee & other income Operating profit Net interest margin (%) EPS (USD Cents) ROE (%) USD billion Emirates NBD Key Performance Indicators Q1 Q1 Change Change 2009 2008 2010 2009 (%) (%) 471 525 -10% 2,018 1,589 +27% 172 209 -18% 783 1,051 -26% Investment & CDS MTM 54 (23) -332% 153 (340) n/a Total income 697 711 -2% 2,954 2,300 +28% Operating expenses (237) (248) -5% (984) (914) +8% Operating profit before impairment allowances 460 463 -1% 1,970 1,386 +42% Impairment allowances: (151) (126) +20% (904) (450) +101% Credit (141) (87) +63% (809) (175) +363% Investment securities (10) (39) -75% (95) (275) -66% 309 337 -8% 1,066 936 +14% Amortisation of intangibles (6) (6) 0% (26) (26) -2% Associates (0) 12 -104% (130) 92 -241% Share of profits (0) 12 -104% (44) 92 -148% Impairment of investments Net profit 0% - (86) n/a 302 343 -12% 910 1,002 -9% Cost: income ratio (%) 33.9% 34.9% -1.0% 2.58% 3.01% -0.43% 5.4 6.2 -12% 19.6% 25.7% -6.1% 16.4 16.2% 33.3% 39.7% -6.4% 2.81% 2.18% +0.63% 18.0 -9% 19.1% -2.9% Q1 Q4 Change Change 2009 2008 2010 2009 (%) (%) Total assets Loans 78.9 76.6 +2.9% 76.7 76.9 -0.3% 58.4 58.4 -1.2% 58.4 56.9 +2.7% Deposits 52.1 46.4 5.6% 49.3 44.2 +11.6% Capital Adequacy Ratio (%) 21.9% 16.2% +1.1% 20.8% 11.4% +9.4% Tier 1 Ratio (%) 13.9% 9.7% 0.6% 13.3% 9.4% +3.9% 14#15Income Net Interest Margin Trends (%) Q1 2010 NIM of 2.58%; -27bps from 2.85% in Q4 2009: - Loan spreads declined due to rising Eibor rates and mix impact of declining retail loan balances Continued pressure on liability spreads given shortage of medium and longer-term liquidity in the banking market Declining treasury spreads due to mix impact of higher interbank placements and lower interbank spreads given stabilisation of international markets continued Qtrly NIM (AIEA) 2.65 2.21 2.01 2.05 3.01 2.85 2.76 2.60 2.58 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Note: Net interest margin is calculated based on Average Interest Earning Assets (AIEA) Non-interest Income Trends (USD million) ■ Non-interest income impacted in 2008 by decline in global asset valuations and mark to markets on investment and other securities ■ 2009 witnessed improved financial asset valuations and partial reversal of the negative mark to markets ■ Core non-interest income for Q1 2010, excluding the impact of mark to market valuations: - derived from a diverse range of activities - declined by 18% from Q1 2009 and by 11% from Q4 2009 due primarily to lower new underwriting and trade finance activity - stabilising at c.25-30% below the peak of H1 2008 Emirates NBD 32 Q1 08 Q2 08 Q3 08 Q4 08 ■Non-interest income Q1 09 Q2 09 Q3 09 Q4 09 ■Core non-interest income Q1 10 15#16Operating Costs and Efficiency Highlights ■ The headline cost to income ratio rose by 0.6% from 33.3% in 2009 to 33.9% in 1Q 2010 ■ The core cost to income ratio rose by 1.6% from 35.1% in 2009 to 36.7% in 1Q 2010 Operating costs of USD 236 million in Q1 2010; down 5% from Q1 2009 and down 9% from Q4 2009: - - Staff costs declined as the Group continues to optimise its variable cost base on existing businesses Occupancy, equipment & operations costs have increased as the Bank continued to invest in technology, infrastructure and selected platforms for growth Marketing costs in Q4 2009 include costs relating to the launch of the new Emirates NBD brand ■ Emirates NBD is continuing to target a mid-30s core business cost to income ratio for 2010 Cost:income ratio Core cost:income ratio Cost to Income Ratio Trends (1) 39.0 38.9 37.4 36.7 38.2 38.3 39.7 37.6 37.9 35.1 36.7 34.9 34.6 34.5 35.7 35.4 34.6 33.7 33.9 33.3 32.9 32.2 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Operating Cost Composition (USD million) 258 248 236 13% 12% 7% 5% 8% 5% 16% 22% 26% 67% 57% 62% Q1 2009 ■Staff costs Q4 2009 Q1 2010 Advertising, marketing & communications ■Occupancy, equipment & operations costs Other costs 1) Cost to income ratios are presented on a year-to-date basis; Core cost to income ratio excludes impact of MTM on investments and other securities in 2008 and 2009 Emirates NBD 16#17Asset Quality Loans & Receivables and Islamic Financing Highlights ■ Credit quality remains satisfactory across the Bank's corporate and retail portfolios Increase in delinquencies and NPLs is within expectations ■ NPL ratio, excluding impaired investment securities, increased to 2.63% in Q1 2010 from 2.36% reported in Q4 2009 ■ Added USD 21m to portfolio impairment provisions in 1Q 2010; total portfolio impairment allowances of USD 527m at end-2009 or 1.2% of loans (excluding Sovereign) Loan Portfolio by Type - Q1 2010(1) 100% USD 59.5b Sovereign 23% Islamic 9% Retail 11% Corporate 57% NPL & Coverage Ratios (2) 118% 110% 109% 105% 106% 103% 104% 104% 105% 102% NPL and Impairment Allowance Composition (USD million) (2) NPL Composition 1,513 1,373 207 186 Impairment Allowance Composition 1,550 1,436 527 506 2.36% 0.26% 2.63% 2.10% 786 731 538 635 1.88% 56 1.57% 155 930 1,023 1.20% 355 1.00% 1.00% 0.98% 520 0.93% 0.95% 456 480 126 Q4 07 Q1 08 INPL Ratio % Impact of accounting change 1) Loans and advances before provisions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 2010 2008 2009 Q1 2010 Corporate Retail Islamic Coverage Ratio % 2008 2009 Q1 2010 ■Specific Impairment Allowances ■Portfolio Impairment Allowances 2) NPLs, Impairment Allowances and Coverage ratios for 2008 & 2009 exclude investment securities classified as loans & receivables which are disclosed as "Others" in the Credit Quality Analysis section of Note 47 of the 2009 Financial Statements; Accounting change refers to the Bank's move to recognition of Retail NPLs at 90+ days overdue from 180+ days overdue Emirates NBD 17#18Asset Quality Retail and Corporate Loans & Receivables • • Corporate Credit Quality Portfolio credit quality remains satisfactory, despite challenging economic environment NPL ratio 1.11% at end-Q1 2010 vs. 0.98% at Q4 2009 96% 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 USD 2.1b at end-2009 and Q1 2010 these reflect renegotiated repayment terms in line with underlying cash flows; and no sacrifice of interest or principal Corporate & Sovereign Lending Portfolio • • Real Estate & Contracting Exposures to Real Estate and Contracting Sector are USD 7.4b (16%) and USD 2.0b (4%) respectively Very selective in financing real estate sector; extent of finance is generally limited to: 70% of construction cost excluding land or 60% of cost including land (land valued at lower of cost or market value) 60% of purchase price for completed properties Exposure is mainly to top tier names with diversified business interests and multiple sources of repayment Financing now restricted to Emirates of Dubai & Abu Dhabi. Repayment experience is satisfactory Approximately 59% of the portfolio has a repayment maturity of <3 years 100% By Sector(1) = USD 47.5b Manufacturi Transport & communicati ng Trade 5% on 4% 4% Contracting 4% Others 6% Sovereign 28% Personal - Corporate 7% Real estate 16% Services 11% Banks & Fis 15% Personal loans Portfolio USD 2.0b (34%) 44% of value is to UAE nationals; >60% of value is to government employees Personal loans only granted subject to salary assignment " Personal Loans losses well within original expectations No funding is given to applicants Real Estate, working in the Construction and Contracting and Hotel Industry Credit Cards Portfolio USD 0.6b (10%) Product with highest yield in retail 90+ delinquencies better than industry benchmarks Recent months delinquency indicators have stabilised with entry rates into delinquency controlled Retail Lending Portfolio Car loans Portfolio USD 0.8b (13%) Portfolio balance has declined in 2009 and Q1 2010 Minimum Income threshold has been raised Down payment of 10-20% mandatory based on customer profiles Mortgages Portfolio USD 1.3b (21%) Only offered for premium developers By Sector(1) 100% USD 6.4b Credit Completed properties account for 80% of the portfolio Overdrafts 7% Cards 10% Average LTV is 75% on original value Time Personal Loans 34% Measures taken to control exposures on unutilised limits " Portfolio trends have been stable in Q1 2010 > 75% of the customers have only one loan from Emirates NBD Loans 15% Lending criterions are revisited regularly to ensure that the quality of the loan portfolio remains good Mortgages 21% Car Loans 13% 1) Loans and advances before provisions; Corporate & Sovereign Lending sectoral breakdown as per "Analysis by Economic Activity for Loans & Receivables" in note 5 of the Q1 2010 Financial statements Emirates NBD 18#19Asset Quality Investments & Trading Securities Highlights ■ The recovery of equity and bond markets in Q1 2010 resulted in positive net impact of mark to markets and impairments on investment securities Underlying quality of investment portfolio remains good and some losses on fixed income securities will reverse if held to maturity and no credit event occurs Exposure to sub-prime and related exposures (e.g. RMBS, CMBS, CDOS, CLOS) are minimal ■ Portfolio is being monitored and managed closely by Group Investment Committee (GIC) to reduce exposure where opportunities arise or where future distress in anticipated. The portfolio has been reduced by 25% in 2009 (excluding purchases made for liquidity management) USD million Trading Securities Subtotal By Type 100% USD 4.7bn Others, 15% Hybrid Instruments, 0% Equity, 20% MTM Impact Total Balance P&L impact Income Impairm. Cum. changes in FV Investment Securities 4,271 18 (15) 84 384 16 4,655 34 (15) 84 Investment Securities in L&R 195 5 Q1 2010 4,850 34 (10) 84 FY 2009 5,032 91 (95) 249 FY 2008 5,689 (216) (275) (493) Composition of Investment Securities: [2009(1) By Category 100% = USD 4.7bn Trading Securities, Government Bonds, 19% 8% Designated at FV through P&L, 8%. Corporate/FI Bonds, 46% Note: Excludes investment securities in L&R of USD 195m Emirates NBD Held to Maturity, 3% International, 46% By Geography 100% USD 4.7b Domestic, 37% Available for sale, 81% Regional, 17% 19#20Capital Adequacy Highlights Capital adequacy ratio at 21.9% in Q1 2010 vs. 20.8% in Q4 2009 ■ Tier 1 ratio increased from 13.3% in Q1 2009 to 13.9% in Q1 2010 as profit generation for the period exceeded interest paid on T1 securities and other expenses ■ Tier 2 capital increased to USD 4.3b vs. 4.1b in Q4 2009 mainly due to the recognition of an additional USD 105m MOF deposits as LT2 capital and positive Cumulative Changes in FV of USD 163m ■ Risk Weighted Assets (RWAs) were managed down by 1% from end- 2009 level Capital Ratios - Basel I (USD billion) ☐ T1 T2 T1 % □ CAR % ☐ 21.9% ☐ 20.8% 16.2% 19.9% 19.0% 13.1% 13.3% 13.9% 12.7% 11.4% 12.1% 9.7% 11.3 11.9 10.5% 10.9 11.4 9.4% 9.4 3.9 4.1 4.1 4.3 6.2 6.7 3.8 1.2 1.2 4.9 5.6 5.6 6.9 7.2 7.3 7.5 2007 2008 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Note: Core Tier 1 ratio was 11.9% at Q1 2010 compared to 11.3% at Q4 2009 Basel II Capital Movement Schedule - Basel I Basel II RWAS (USD billion) Basel II Capital Ratios (%) Q4 2009 to Q1 2010 (USD million) Tier 1 Tier 2 Total Capital as at 31.12.09 7,258 4,134 11,392 65.7 19.6% 18.7% Net profits generated 324 324 2.9 61.0 60.7 Recognition of MOF deposits as T2 capital 105 105 1.4 3.6 3.7 10.3% Interest on T1 securities. (18) (18) 61.4 0.9 11.9% 12.4% 0.7 Cumulative changes in FV 163 163 56.5 56.3 8.4% Redemption of T2 securities (96) (96) Other (15) 5 (10) 2008 2009 1Q 2010 2008 2009 1Q 2010 Capital as at 31.03.2010 7,549 4,311 11,860 Operational Risk Market Risk ■Credit Risk -T1 % --CAR % USD billion Q1 10 Q4 09 Diff % Risk Weighted Assets 54.2 54.8 -1% Emirates NBD 20 20#21Funding and Liquidity Highlights Loan to Deposit Ratios (%) Liquidity in the UAE banking system improved in 2009 primarily due to initiatives taken by the UAE Ministry of Finance and UAE Central Bank Funding remains stable and deposit mobilisation initiatives proved successful ■ Continue to access stable interbank lines and source bilateral deposits at attractive pricing Liquidity backstop facilities of USD 5.4b unused ■ Access to wholesale funding remains challenging term debt maturity profile is well within our funding capacity total wholesale debt represents 8% of liabilities repaid scheduled USD 1.6b in 2009 and USD 0.8b in Q1 2010 Composition of Liabilities (%) Q4 2009 100% = USD 69.9b Q1 2010 = 100% USD 67.7b Headline LTD Ratio % Adjusted LTD Ratio % 129% 126% 127% 122% 118% 119% 117% 118% 118% 111% 109% 109% 108% 103% 99% 100% 101% 102% 98% 98% Q2 09 Q3 09 Q4 09 Q1 10 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Note: Adjusted LTD ratio includes Debt Issued and Other Borrowed Funds, Sukuk Payable and Tier 1 Capital Notes in the denominator Maturity Profile: Debt Issued (USD million) 100% = USD 5.2b Debt / Sukuk Others 4% Issued 10% Banks 13% Emirates NBD Debt / Sukuk Issued 8% Others 4% 1,046 2,070 Banks 13% 823 823 Customer deposits 73% Customer 555 deposits 100 284 62 367 124 75% 2010 2011 2012 2013 2014 2015 2016 2017 2018 FY Q2 Q3 Q4 Note: Debt Issued includes EMTNs of USD 3.7b and syndicated borrowings from banks of USD 1.5b 21 21#22Divisional Performance Corporate Banking Consumer Banking & Wealth Management Corporate Banking recorded a successful quarter Key focus during the period was on balance sheet optimisation, continued proactive management of credit quality, building non-risk based and fee generating businesses ■ Revenue grew 16% year-on-year primarily due to active asset re- pricing and rigorous focus on fee generating business ▪ Loans decreased by 1% from end-2009 Deposits grew 8% from end-2009 CWM continues to expand and build on distribution reach with distribution network strengthened to 103 branches and ATM & SDM network now at 510 and 129 respectively USD billion 46.9 46.4 USD million 24.5 22.7 260 +16% 301 Q4 2009 ■Loans Q1 2010 ■Deposits Q1 2009 Q1 2010 ■Revenue USD billion 15.3 14.8 USD million Continued expansion in Private Banking business; now almost 60 RMs ■ Revenue increased 18% year-on-year ■ Loans declined by 5% from end-2009 Deposits grew 3% from end-2009 6.0 5.8 191 Emirates NBD Q4 2009 ■Loans 226 +18% Q1 2010 Q1 2009 Q1 2010 ■ Deposits ■Revenue 22 22#23Divisional Performance (cont'd) Network International Global Markets & Treasury Revenues in Q1 2010 were USD 75m compared with USD 174m in Q1 2009, the decline being primarily due to contraction in the spreads generated from interbank funding in Q1 2010 compared to Q1 2009 ■ The Trading business had an excellent quarter, capitalising on favourable opportunities in the Middle East equity and credit markets ■ 7% increase in Q1 2010 revenue vs. Q1 2009 Acquiring revenues grew 14% and processing income grew 9% ■ Serves over 10,000 merchants and 49 banks and financial institutions in the region Note: comparative for Q1 2009 for merged portfolio and fees gross-ups included in the Q1 2010 revenues Emirates Islamic Bank EIB revenue declined by 16% in Q1 2010 (net of customers' share of profit) year-on-year Financing receivables declined by 2% to USD 4.8b from end- 2009 ■ Customer accounts declined 1% to USD 5.5b from end-2009 ■ Total number of EIB branches at Q1 2010 totaled 30 with an ATM &SDM network of 74 and 27 respectively Note: EIB numbers reported above differ from those in the EIB standalone Financial Statements due to consolidation adjustments Emirates NBD USD billion 5.6 4.9 USD million 174 -57% 75 1Q 2009 1Q 2010 ■Revenue USD million +7% 28 18 1Q 2009 ■See Note 1Q 2010 ■Revenue USD million -16% 52 4.8 5.5 44 4Q 2009 Financing receivables 1Q 2010 1Q 2009 1Q 2010 Customer accounts ■Revenue 23 23#24Contents Emirates NBD Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 24 24#25Strategic Imperatives for 2010 Optimise Balance Sheet Drive Profitability Enhance Risk Management Selectively Invest in Platforms for Growth Prudent lending growth ■ Focus on funding - Leverage distribution network Objectives - Maintain & develop wholesale sources of medium/long term funding - Implement liability retention and gathering plans Optimise capital allocation - Deploy capital allocation model based on economic capital - Review non-core activities (e.g. proprietary investment portfolio) ■ Maximise customer revenue - Capture re-pricing opportunities - Cross-sell Treasury and Investment Banking services to corporate clients Improve customer retention and deliver distinctive customer service ■ Continue to optimise cost position ■ Continue to strengthen risk management, governance and controls - Enhance & implement internal rating, scoring and risk models - Enhance operational risk management framework - Strengthen risk function and governance Exploit domestic & regional expansion opportunities - Abu Dhabi retail banking expansion - Emirates Islamic Bank UAE expansion - Private Banking, Priority Banking and SME Banking expansion - Organic growth in GCC (e.g. KSA) – Opportunistically evaluate inorganic regional expansion opportunities - Evidence of success in Q1 2010 ■ CAR strengthened to 21.9% from 20.8% at end-2009 ■ Tier 1 increased to 13.9% from 13.3% at end-2009 ▪ RWAs declined by 1% from end-2009 ■ Deposits grew by 6% from end-2009 vs. 1% decrease in loans, lowering the LTD ratio to 111% and adjusted LTD ratio to 98% ■ Q1 2010 cost declined by 5% to USD 237 million from Q1 2009 and by 9% from Q4 2009 ■ ROE of 19.6% for Q1 2010 ■ Credit metrics remain robust and within expectations ■ Credit NPL ratio increased to 2.63% from 2.36% at end-2009 ■ Launched new Private Bank proposition; now almost 60 RMS ■ New Priority and SME banking concepts rolled out ■ Upgrading Singapore rep office to branch ■ Continue to evaluate inorganic opportunities Emirates NBD 25 25#26Outlook Emirates NBD ■ UAE GDP is expected to recover modestly to c.2.5% in 2010 and c.4.5% in 2011 ▪ Lower inflation, stable USD and property market declines have enhanced Dubai's cost- competitiveness ■ Q1 2010 has witnessed early signs of stability, increased economic activity and improved consumer sentiment and business confidence in the UAE resulting from improving economic fundamentals globally and the progress made locally in resolving market uncertainties. ■ Dubai remains well-positioned as an international trading hub and underlying economic activity in traditional trade, manufacturing and tourism sectors are showing signs of recovery Emirates NBD is optimistic about the expected economic recovery and is well placed to take advantage of selected growth opportunities Emirates NBD 26 26#27Summary Emirates NBD ■ Robust financial performance with steady income and strong operating profit generation ■ Significantly improved liquidity metrics and strong capital ratios due to success of balance sheet optimisation initiatives and continued proactive support from federal and local Government ■ Credit quality remains tightly managed and within expectations Continued focus in 2010 on balance sheet optimisation, profitability and risk management enhancement while selectively investing in platforms for growth ■ Recent months have witnessed early signs of stability, increased economic activity and improved consumer sentiment and business confidence in the UAE Underlying economic activity in traditional trade, manufacturing and tourism sectors are showing signs of recovery ▪ Emirates NBD is optimistic about the expected economic recovery and is well placed to take advantage of selected growth opportunities Emirates NBD 27 27#28Emirates NBD APPENDIX A Merger Update 28#29Merger Update Integration completed successfully First AGM for Emirates NBD Emirates NBD's Large Corporate Unit (LCU) is inaugurated Treasury operations integrated in single premises Mobile and Online Banking integrated; enhanced functionalities New Core Banking system rolled-out in EBI Legal integration completed; EBI and NBD dissolved 23 29 29 10 14 18 27 11 20 21 10/07 Mar Apr Apr July Aug Aug Oct Feb May 2008 2008 2008 2008 2008 2008 2008 2009 2009 Nov 2009 02/10 Emirates NBD Culture Workshops complete the first phase Credit cards platform at Network International integrated (Vision Plus) NBD customers migrated to new Core-Banking platform New brand launched Emirates NBD makes its debut on the Dubai Stock Exchange 92 smart deposit Integration of ATMs Living the values - machines completed integrated Re-branding commenced on 21 November 2009 and will be completed in Q1 2010 Emirates NBD 29 29#30Merger Update Emirates NBD Organisation Structure and Brands Emirates NBD Asset Management Emirates NBD Emirates Islamic Bank (99.8%) Associate companies Union Properties Group (47.6%) - Emirates NBD Securities (Brokerage) Emirates NBD Capital Emirates Money (Consumer Finance) الإمارات المالية. Emiratesmoney An Emirates NB D Company مصرف الإمارات الإسلامي EMIRATES ISLAMIC BANK الإتحاد العقارية تصل Up™ PJSC Union Properties National General Insurance Co (36.7%) ●NGD Network International NETWORK الوطنية للتأمينات العامة Note: Only key subsidiaries are shown Emirates NBD NATIONAL GENERAL INSURANCE 30#31Merger Update Synergies exceed 2009 full year target by 33% and already exceed 2010 cost and one-off synergies a year ahead of plan ◉ Target Synergies USD 94m of recurring annual synergies by the third year post merger, plus USD 7m of one-off synergies totaling USD 101m Key Drivers of Synergies Revenue synergies for 2008 and 2009: Largest distribution network of 132 branches & 705 ATMs and SDMs The recurring synergies below are targeted to be delivered 33% in year 1 (2008), 66% in year 2 (2009) and fully by year 3 (2010) - Focus on cross selling- e.g. mortgages - Enhanced market share/pricing advantages - e.g. FDs Embedded Customer efficiency framework - e.g. Tafawouq has tripled Synergies (1) branch sales in Umm Suqeim & DCC - % of Smaller Base(1) USD million 2008 2009 2010 Revenue 18 35 53 Costs 14 27 41 22.2% Target Benchmark 10.5% 5-10% 14-26% % of Combined Base(1) Benchmark 4.1% - Increased corporate pricing power from enhanced scale Cost synergies for 2008 and 2009: 8.3% One-off costs 2 5 7 Total 34 67 101 " Actual 2009 Synergies (USD Million) Achieved synergies of USD 89m - ahead of 2009 full year target by 33% Recurring cost and one-off cost synergies achieved in 2009 of USD 46m and USD 8m already exceed 2010 target of USD 41m and USD 7m respectively. 2009 Target vs. Actual Synergies 89 33% 67 - - Single head office in place Created efficiencies through unified business models Combined marketing & advertisement activities Staff efficiencies across all businesses and support units One-off synergies for 2008 and 2009: - Projects & initiatives discontinued due to merger, namely Islamic banking set up previously planned in NBD Initiatives conducted in one group as opposed to the separate legacy banks; e.g. Basel II regulatory requirements 69% 46 35 35 27 8 76% 5 Revenue Cost ■Target One-off ■ Actual Total 1) Synergy base used when computing synergy targets were 2006 financials, smaller base was NBD and combined was aggregated EBI and NBD Emirates NBD 31 34#32Emirates NBD APPENDIX B Awards 32 22#33Emirates NBD 2010 Awards The March 2010-2010 Financial Sector Technology (FST London) award for "Systems Integration Project of the Year" February 2010- The number one banking brand in the Middle Banker East Award by The Banker The Banker (April 2010) -Banker Middle East - Products Award for Best Personal Loan 1 February 2010- Best Local Bank in the UAE in Euromoney Private Banking survey for 2010 33 33#34Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] Ben Franz-Marwick Head, Investor Relations Tel: +971 4 201 2604 Email: bernhardf@emirates nbd.com Chaden Boustany Investor Relations Analyst Tel: +971 4 201 2628 Email: Chaden [email protected] Emilie Froger Investor Relations Coordinator Tel: +971 4 201 2606 Email: [email protected] Emirates NBD