#1Bank of America Merrill Lynch MENA Conference, Dubai Emirates NBD Investor Presentation 8-10 November 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 = 12.8%, Total CAR =20.1% 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 ◉ ■ The IMF recently joined the private sector consensus in upgrading its growth forecast for the UAE, taking it to 2.4% for 2010 and 3.2% in 2011. At Emirates NBD we expect 2.5% and 4.0% respectively. Local growth is benefiting from the price of, and the demand for, hydrocarbons and recovering world trade. The latest UAE Purchasing Managers Index for September shows the economy stabilizing, with a modest expansion underway. The success of Dubai's recent bond issue is creating renewed confidence, helping to bring foreign capital back to the country. Global monetary easing is also helping local interest rates to start to decline. The UAE has been added to the FTSE secondary emerging markets index, making it more attractive for capital inflows Promising signs for oil (USD) 160 140 120 100 80 60 40 20 0 2000 2001 2002 2003 Brent oil $ per Barrel 2004 2005 2006 2007 2008 2009 Rolling 1 year moving average 2010 Source: Bloomberg Emirates NBD 14 9 4 -1 UAE Real GDP Growth in Context (%) -6 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 UAE US MENA Singapore EU UK Hong Kong Source: IMF October World Economic Outlook UAE GDP Composition (%) UAE GDP by Sector (2009) 100% USD 249b = Financials 6% Tourism & Agriculture 2% leisure 2% Others 1% Components of UAE GDP (2009) = 100% USD 249b Net Exports 6% Transport & comms 7% Govt. 8% Real estate 8% Oil & Gas 29% Trade 9% Construction 11% Manufacturin g 16% Source: National Bureau of Statistics Private Consumption 48% Govt. Purchases 19% Private Investment 27% 5#6Dubai Economic Update Highlights Dubai is the 3rd largest centre for re-exports in the world which itself represents 44% of GDP Dubai is a strategically located international trading hub with some of the world's best air and sea ports serving over 205 destinations ■ In Dubai six 'strategic thrusts' for growth include travel and tourism; financial services; professional services; transport and logistics services; trade and storage; and construction. Very large investments in infrastructure will have highly positive effects on the long run development and productivity of the emirate 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% Source: UAE Ministry of Economy Construction / Real Estate 24% Trading & Communicat ion 47% Emirates NBD Dubai's Strategic Location 79 46 Dubai Trade - H1 2010 (USD billion) 175 144 128 123 90 90 91 79 77 61 50 2005 2006 2007 2008 Imports * Annualized 2009 ■ Exports & Re-Exports H1 2010* Source: Dubai Statistics Centre; includes Direct Foreign Trade and Free Zone & Customer Warehouse Trade 6#7UAE Banking Market Update Highlights UAE Banking Sector Growth (USD billion) UAE Banking sector is the largest by assets in the GCC 450 The sector is dominated by 23 local banks which account for more than 75% of banking assets; 28 foreign banks account for the remainder 400 425 403 333 350 UAE loan growth has outstripped deposit growth before H1 2008 300 UAE Banking system liquidity tightened in 2008 due to outflow of 234 250 c. USD 180b of speculative capital and the Global credit/liquidity crisis following the Lehman's collapse Government intervention during H2 2008 and 2009 helped improve liquidity and capitalisation: Additional liquidity facilities from UAE Central Bank - USD 50b deposited into local banks; option to convert to LT2 capital - Deposit & capital market guarantees announced - Tier 1 injections by Abu Dhabi (USD 15nb) and Dubai Governments (USD 4b) Source: UAE Central Bank, EIU, Emirates NBD estimates 254 200 174 249 206 150 122 00 90 100 175 100 138 105 50 50 87 74 0 2002 2003 2004 2005 2006 Banking Assets Nominal GDP 2007 Loans & Advances 2008 2009 Deposits Composition of UAE Banking Market (USD billion) Loans 60 229 289 Deposits 49 218 268 Assets 78 Emirates NBD 347 Other 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) 425 171% Saudi Arabia 365 96% Kuwait 141 134% Qatar 128 131% 425 Bahrain (2) 59.6 Oman 37 80% 1) Includes Foreign Banks 2) Excludes off-shore banking units Source: UAE Central Bank; National Central Banks, 31 December 2009 and Emirates NBD forecasts 298% 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 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.20% Deposits c.20% No. 1 Retail market shares (estimated): - Personal loans c.22% - Home loans c.7% Auto loans c.11% Credit cards c.9% Debit cards c.17% 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) A3 Fitch (2) A+ Capital Intelligence 1) Moody's Long-term rating on negative outlook 2) Fitch Individual Rating "C" on credit watch negative Emirates NBD A+ Largest Branch Network in the UAE Dubai 95 Ras al-Khaimah (3) Abu Dhabi 16 Umm al-Quwain (2) Sharjah 12 -Fujairah (2) Other Emirates 9 Ajman (2) Total 132 Dubai (95) Sharjah (12) Abu Dhabi (16) International Presence Conventional 102 Islamic Total 30 132 10#11Emirates NBD is the Largest Bank in the UAE and GCC by Assets As at 31 December 2009 UAE Ranking by Assets (USD billion) UAE Ranking by Equity (USD billion) UAE Ranking by Profits (USD million) (1) Emirates NBD 76.7 Emirates NBD 7.0 Emirates NBD 910 NBAD 53.6 First Gulf Bank 6.2 First Gulf Bank 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 CBD 1.5 ADCB -140 10.0 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 1.29 1.94 2006 2007 Assets 45.2 15% Revenues (USD billion)(1) 32% 2.94 2.30 0.68 2008 2.26 2.03 1.07 0.82 Net Profits (USD billion)(1) 2009 Q3 2010 YTD 2006 2007 Assets and Loans (USD billion) 76.9 76.7 77.4 69.1 2006 2007 2008 2009 Q3 2010 Loans 18% 56.9 58.4 54.8 45.3 29.7 2006 2007 2008 2009 Q3 2010 Deposits 4% 1.00 0.91 0.05 2008 0.86 0.53 2009 Q3 2010 YTD Deposits and Equity (USD billion) 22% 54.1 49.3 44.2 38.3 26.0 2006 2007 2008 2009 Q3 2010 Equity(2) 16% 7.3 7.0 5.2 5.3 4.2 2006 2007 2008 2009 Q3 2010 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#14Q3 2010 Financial Results ■ " ■ " ■ Q3 2010 YTD Financial Results Highlights Total income of USD 2,031m; -10% from USD2,260m in Q3 2009 YTD Income includes a write-down of investment properties of USD 44m Improvement of 14% in operating expenses from Q3 2009 YTD to USD 628m in Q3 2010 YTD; Cost to income ratio improved by 1.5%% to 30.9% Operating profit before impairment allowances of USD 1,403m; -8% from USD 1,528m in Q3 2009 YTD Impairment allowances of USD 814m; +26% from USD 647m in Q3 2009 YTD; added USD 193m to PIP in Q3 2010 YTD Net profit of USD 527m; -39% from USD 862m in Q3 2009 YTD Capital ratios remain strong; CAR 20.1% and T1 12.8% at end Q3 2010 YTD Deposits grew by 10% from end-2009 levels while loans declined 6%, improving the loan to deposit ratio to 101% from 118% at end-2009 Q3 2010 Financial Results Highlights Total income of USD 705m; -7% from USD762m in Q3 2009; +12% from USD 630m in Q2 2010 Improvement of 17% in operating expenses from Q2 2009 to USD 199m in Q3 2010; broadly flat compared with USD 194m in Q2 2010; Cost to income ratio improved by 3.3% from Q3 2009 to 28.2% Operating profit before impairment allowances of USD 506m; -3% from USD 522m in Q3 2009; +16% from USD 436m in Q2 2010 Impairment allowances of USD 338m; +63% from USD 207m in Q3 2009 Net profit of USD 115m; -60% from USD 287m in Q3 2009; +5% from USD 110m in Q2 2010 USD million USD billion 1) Investments/CDS income includes dividend income and realised /unrealised gains/(losses) on investment, trading and CDS securities Emirates NBD Key Performance Indicators Q3 Q3 Change Q3 Q3 Change 2010 2009 (%) 2010 2009 (%) YTD YTD Net interest income 1,409 1,494 -6% 469 502 -7% Fee & other income 546 571 -4% 184 183 +1% Investment properties (39) 4 n/a 1 1 n/a Investment/CDS Income (1) 115 191 -40% 51 76 -33% Total income 2,031 2,260 -10% 705 762 -7% Operating expenses (628) (732) -14% (199) (240) -17% Operating profit before impairment allowances 1,403 1,528 -8% 506 522 -3% Impairment allowances: (814) (647) +26% (338) (207) +63% Credit (772) (575) +34% (317) (190) +67% Investment securities (42) (72) -42% (21) (17) +19% Operating profit 589 881 -33% 168 315 -46% Amortisation of intangibles (18) (18) (6) (6) Associates (44) (1) n/a (47) (22) +117% Net profit 527 862 -39% 115 287 -60% Cost: income ratio (%) 30.9% 32.4% -1.5% 28.2% 31.5% -3.3% Net interest margin (%) 2.55% 2.79% -0.24% 2.51% 2.76% -0.25% EPS (USD cents) ROE (%) 8.5 11.6% 15.2 -44% 1.8 4.8 -64% 20.2% -8.6% 7.5% 19.5% -12.0% 30 Sep 31 Dec Change 2010 2009 (%) Total assets 77.4 76.7 +1% Loans 54.8 58.4 -6% Deposits 54.1 49.3 +10% Capital Adequacy Ratio (%) 20.1% 18.7% +1.4% Tier 1 Ratio (%) 12.8% 11.9% +0.9% 14#15Income Net Interest Margin Trends (%) Q3 2010 NIM of 2.51%; -3bps from 2.54% in Q2 2010: Negative mix impact of declining loan balances Partly offset by increased deposit spreads due to easing competition for deposits Note: Net interest margin is calculated based on Average Interest Earning Assets (AIEA) Qtrly NIM 2.65 2.21 2.01 2.05 3.01 2.85 2.76 2.60 2.59 2.54 2.51 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Non-interest Income Trends (USD million) Core non-interest income increasing steadily quarter-on-quarter: Q3 2010 vs. Q2 2010: +1% despite seasonal impacts in Q3 Core Non-Interest Income Quarter-on-Quarter Trend - Q2 2010 vs. Q1 2010: +2% Year-on-year trends in core non-interest income reverting to positive: - Q1 2010 vs. Q1 2009: -12% - Q2 2010 vs. Q2 2009: -0% Q3 2010 vs. Q3 2009: +1% Note: Core non-interest income excludes the impact of Investment Properties and Investment/CDS income Emirates NBD Core Non-Interest Income Year-on-Year Trend 204 204 184 183 179 183 184 179 184 183 183 184 2009 2010 Q1 Q2 Q3 ■Q1 Q2 Q3 2009 2010 15#16Operating Costs and Efficiency Highlights ■ The headline cost to income ratio improved by 2.6% from 33.5% in 2009 to 30.9% in Q3 2010 YTD ■ The core cost to income ratio improved by 3.4% from 35.5% in 2009 to 32.1% in Q3 2010 YTD ■ Quarter-on-quarter trends in operating costs: - Q3 2010 vs. Q2 2010: 3% deterioration as Q2 2010 benefited from accrual reversals; underlying trend improved by 3% - Q2 2010 vs. Q1 2010: 18% improvement; underlying trend 13% improvement excluding accrual reversal in Q2 2010 Year-on-year trends in operating costs: - Q1 2010 vs. Q1 2009: 5% improvement - - Q2 2010 vs. Q2 2009: 20% improvement; underlying trend 16% improvement - Q3 2010 vs. Q3 2009: 17% improvement Cost to Income Ratio Trends (1) Cost:income ratio Core cost:income ratio 38.3 35.3 37.6 37.1 36.3 39.0 38.9 35.7 38.2 38.3 35.7 35.4 35.5 37.6 37.4 34.1 35.8 38.5 33.0 34.9 32.1 33.9 33.5 32.8 32.4 32.4 30.9 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 Q2 10 Q3 10 Operating Cost Trends (USD million) Quarter-on-Quarter Trend Year-on-Year Trend 249 243 240 249 236 243 236 240 194 199 194 199 2009 1) Cost to income ratios are presented on a year-to-date basis; Core cost to income ratio excludes impact of Investment Properties and Investment/CDS income Emirates NBD 2010 Q1 Q2 Q3 2009 2010 ■Q1 Q2 Q3 16#17Credit Quality Loans & Receivables and Islamic Financing Highlights The Bank continues to pro-actively manage credit quality ■ NPL ratio, excluding impaired investment securities, increased to 3.66% in Q3 2010 from 2.90% in Q2 2010 and 2.30% in Q4 2009 ■ Added USD 193m to PIP in Q3 2010 YTD; total PIP of USD 699m at Q3 2010 representing 1.3% of total credit risk weighted assets ■ Dubai World specific provision made in Q3 2010 Approximately 70% of Saad and Al Gosaibi exposure provided Loan Portfolio by Type 100% = USD 57.2b Retail 10% Sovereign 25% Islamic 10% Corporate 55% Q3 2010(1) NPL & Coverage Ratios (2) 118% 112% 110% 109% 106% 103% 104% 104% 105% 104% 100% NPL and Impairment Allowance Composition (USD million)(2) NPL Composition Impairment Allowance 2,080 Composition 2,170 283 1,657 1,854 1,557 1,373 1,550 699 241 3.66% 207 1,436 186 906 709 527 2.90% 506 2.64% 830 860 2.30% 731 538 635 1.84% 1,471 1.55% 56 155 891 930 1,023 1,145 0.99% 0.97% 0.92% 0.94% 1.18% 355 456 520 557 480 126 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 NPL Ratio % Coverage Ratio % 2008 2009 Q1 10 Q2 10 Q3 10 ■ Corporate ■Retail ■Islamic 2008 2009 Q1 10 Q2 10 Q3 10 ■Specific Impairment Allowances ■Portfolio Impairment Allowances 1) Loans and advances before provisions 2) NPLs, Impairment Allowances and Coverage ratios for 2008 & 2009 exclude investment securities classified as loans & receivables; NPL ratio restated to be calculated on gross loans & receivables, previously calculated on net loans & receivables; NPLs exclude exposure to Dubai World Emirates NBD 17#18Credit Quality Retail and Corporate Loans & Receivables Corporate Credit Quality Corporate credit quality remains satisfactory despite challenging economic environment NPL ratio 1.96% at Q3 2010 vs.0.97% at Q4 2009 97% 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 2.0b vs. USD 2.1b at Q4 2009: these reflect renegotiated repayment terms in line with underlying cash flows; and without sacrificing interest or principal Corporate & Sovereign Lending Portfolio . . . Real Estate & Contracting Exposures to Real Estate and Contracting Sector are USD 7.3b (16%) and USD 1.7b (4%) 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 50% of the Real Estate portfolio has a repayment maturity of < 3 years By Sector(1) 100% = USD 45.8b Transport & communicat ion Contracting 3% 4% Manufacturi Trade 4% ng 5% Others 6% Sovereign 31% Personal - Corporate 6% Real Banks estate & Fls 16% Services 9% 16% " Personal loans Portfolio USD 2.0b (34%) 47% 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 2010 YTD delinquency trends for over 90 days are decreasing; entry rates into delinquency are stable and trending downwards Credit Cards Portfolio USD 0.7b (12%) Product with highest yield in Retail Portfolio 90+ delinquencies better than industry benchmarks Measures taken to control exposures on unutilised limits 2010 YTD delinquency trends improving Retail Lending Portfolio Car loans Portfolio USD 0.5b (8%) 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 YTD delinquency trends improving Mortgages Portfolio USD 1.1b (19%) Only offered for premium developers Completed properties account for 80% of the portfolio Average LTV is 75% on original value By Sector(1) 100% USD 5.9b Others Overdrafts 5% 7% Car Loans 8% Credit " > 75% of the customers have only one loan from Emirates NBD Cards 12% 2010 YTD 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 of the Q3 2010 Financial statements Personal Loans 34% Time Loans Mortgages 19% 15% Emirates NBD 18#19Asset Quality Investments & Trading Securities Highlights ■ The recovery of equity and bond markets in 2009 and H1 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) and 14% in Q3 2010 YTD MTM Impact USD million 2008 2009 Q1 10 Q2 10 Q3 10 Income (188) 115 47 (2) 39 Impairments (275) (95) (10) (12) (21) P&L Impact (463) 20 37 (14) 18 Cum. changes in FV (493) 249 84 10 (89) (956) 269 121 (4) (71) Total Impact Composition of Investment Securities: Q3 2010(1) By Type 100% USD 3.9bn Others, 17% Equity, 20% By Category 100% = USD 3.9bn Government Bonds, 18% Trading Securities, 9% Designated at FV through P&L, 7%. 1) Excludes investment securities in L&R of USD 0.2b Emirates NBD Corporate/FI Bonds, 45% Held to Maturity, 3% International, 40% By Geography 100% USD 3.9b Domestic, 39% Available for sale, 81% Regional, 21% 19#20Capital Adequacy Highlights Capital Ratios - Basel II (USD billion) Capital adequacy ratio at 20.1% in Q3 2010 vs. 18.7% in Q4 2009 ■ Tier 1 ratio increased from 11.9% in Q4 2009 to 12.8% in Q3 2010 as profit generation for the period exceeded the FY 2009 dividend payment ■ Tier 2 capital increased to USD 4.3b vs. USD 4.1b in Q4 2009 mainly due to positive Cumulative Changes in FV and additional recognition of PIP and MOF deposits as Tier 2, partially offset by redemption of Tier 2 securities ■ Risk Weighted Assets (RWAs) declined by 4% from end-2009 levels 18.7% 19.6% 19.4% 20.1% 10.5% 11.9% 12.4% 12.4% 12.8% 8.4% 11.4 11.9 11.5 11.7 6.9 4.1 4.3 4.2 4.3 1.3 7.3 7.5 7.3 7.4 5.5 2008 2009 Q1 10 Q2 10 Q3 10 T2 T1 -T1 % CAR % Note: Core Tier 1 ratio was 10.9% as at end-Q2 10 compared with 10.1% at end-2009 Risk Weighted Assets - Basel II (USD billion) Capital Movement Schedule - Basel II Q4 2009 to Q3 2010 (USD million) Tier 1 Tier 2 Total 65.7 61.0 60.7 2.9 59.4 58.3 Capital as at 31.12.09 7,258 4,133 11,391 3.6 3.7 1.4 3.7 3.7 0.9 Net profits generated 527 527 0.7 0.5 0.7 FY 2009 Dividend paid (303) (303) 61.4 Recognition of MOF deposits as T2 capital 1 105 105 56.5 56.3 55.2 53.9 Interest on T1 securities. (53) 53 (53) Cumulative changes in FV 45 45 Redemption of T2 securities 2008 2009 Q1 10 Credit Risk ■Market Risk Q2 10 Operational Risk Q3 10 Other (122) (122) 19 100 119 Capital as at 30.09.2010 7,448 4,261 11,709 Emirates NBD 20 20#21Funding and Liquidity Highlights Liquidity continues to improve and deposit mobilisation initiatives proved successful; headline LTD ratio 101% at end-Q3 2010 ■ Continue to access stable interbank lines and source bilateral deposits at attractive pricing Liquidity backstop facilities of USD 8.9b unused; net liquid assets of USD 7.0b at end-Q3 2010 vs. USD 1.1b liability position at end-2009 ■ Access to wholesale funding remained challenging during 2010 YTD: improvement in debt markets seen recently term debt maturity profile well within funding capacity total wholesale debt represents 8% of liabilities net reduction in debt outstanding of USD 1.4b in Q3 2010 YTD completed USD 220m auto loan securitisation in Q3 2010 Composition of Liabilities (%) Q4 2009 100% = USD 68.0b Q3 2010 = 100% USD 68.5b Loan to Deposit Ratios (%) Headline LTD Ratio % -Adjusted LTD Ratio % 129% 126% 127% 122% 119% 117% 118% 118% 111% 103% 101% 109% 109% 108% 103% 100% 101% 102% 98% 98% 92% 90% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 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% Customer deposits 73% Emirates NBD Debt / Sukuk Issued 8% Others 4% Banks 9% 2,078 522 283 66 366 227 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 822 843 Customer deposits 79% 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 positive year to date Key focus during the period was on balance sheet optimisation, continued proactive management of credit quality, building non-risk based and fee generating businesses USD billion 46.9 44.8 ■ Revenue declined 5% year-on-year as increased net interest income due to active asset re-pricing was offset by reduced fee income from lower trade finance and new underwriting 25.0 22.7 ▪ Loans decreased by 5% from end-2009 ■ Dedicated focus on liquidity management resulting in strong 10% growth in deposits USD million -5% 960 907 Q4 2009 ■Loans Q3 2010 ■Deposits Q3 2009 YTD Q3 2010 YTD ■Revenue CWM continued to grow and strengthen its position in challenging market conditions Continued expansion in Private Banking business; now more than 60 RMS; Private Banking customer deposits continue to grow ■ Revenue declined 2% year-on-year as strong growth in fee income was offset by declining net interest income due to increased deposit costs and declining loan balances ■ Loans declined by 22% from end-2009 Deposits grew 10% from end-2009 ■ Total number of branches at Q3 2010 totaled 102 with an ATM & SDM network of 654 USD billion 16.3 14.8 6.0 4.7 Q4 2009 ■Loans Q3 2010 ■ Deposits Emirates NBD USD million -2% 685 671 Q3 2009 YTD Q3 2010 YTD ■Revenue 22 22#23Divisional Performance (cont'd) Global Markets & Treasury ■ Revenues in Q3 2010 YTD were USD 133m compared with USD 178m in Q3 2009 YTD, the decline being primarily due to contraction in the spreads generated from interbank funding and the mix impact of increased net liquid assets ■ The Trading business had an excellent first half of 2010, capitalising on favourable opportunities in the Middle East equity and credit markets, but Q3 2010 income was impacted by increased volatility in global markets and reduced risk appetite of foreign investors for Dubai and the MENA region USD million -25% 178 133 Q3 2009 YTD Q3 2010 YTD ■Revenue USD million +3% 75 77 Q3 2009 YTD Q3 2010 YTD ■Revenue USD billion USD million 6.7 +18% 5.6 44 4.9 4.6 Emirates Islamic Bank Network International ■ 3% increase in Q3 2010 YTD revenue vs. Q3 2009 YTD Processing income grew 9% while acquiring revenues were broadly flat as reduced margins have offset a 13% growth in acquiring volumes ■ Serves over 10,000 merchants and 49 banks and financial institutions in the region EIB revenue declined 7% year-on-year to USD 160m in Q3 2010 YTD (net of customers' share of profit) Income includes USD 44m write-down on investment properties; underlying income growth of 18% Financing receivables declined 7% to USD 4.6b from end-2009 ■ Customer accounts grew by 21% to USD 6.7b from end-2009 ■ Total number of EIB branches at Q3 2010 totaled 30 with an ATM & SDM network of 75 and 28 respectively Note: Stand-alone Financial Statements for Network International and Emirates Islamic Bank may differ from the above due to consolidation adjustments Emirates NBD 173 160 Q4 2009 Q3 2010 ■Financing receivables ■Customer accounts Q3 2009 YTD Q3 2010 YTD ■Revenue Inv Prop Write-down 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 Q3 2010 ■ CAR strengthened to 20.1% from 18.7% at end- 2009 ■ Tier 1 increased to 12.8% from 11.9% at end- 2009 ■ RWAs declined by 4% from end-2009 ■ Deposits grew by 10% from end-2009 vs.6% decrease in loans, lowering the LTD ratio to 101% and adjusted LTD ratio to 90% ■ Q3 2010 YTD costs improved by 14% to USD 628m million from Q3 2009 YTD ■ ROE of 11.6% for Q3 2010 YTD despite significant build-up of PIP and specific provision made for Dubai World Credit metrics remain robust and broadly within expectations ■ Credit NPL ratio increased to 3.66% from 2.30% at end-2009 Completion of establishing the new Emirates NBD brand ■ Continue to build Private Bank proposition; now more than 60 RMs ■ Priority and SME banking concepts rolled out Singapore rep office upgraded to branch ■ Continue to evaluate inorganic opportunities Emirates NBD 25 25#26Outlook Emirates NBD ■ While economic activity remained relatively subdued in Q3 2010 due to seasonal factors, the satisfactory agreement on Dubai World restructuring has improved sentiment and confidence and core economic sectors in Dubai continue to show signs of recovery ■ Dubai remains well-positioned: ■ Due to its strategic location and advanced infrastructure, Dubai remains unrivalled as the region's key economic, trading and financial hub ■ Lower inflation, stable USD and property market declines have enhanced Dubai's cost-competitiveness Underlying economic activity in traditional trade, manufacturing and tourism sectors are showing signs of recovery ■ Dubai Government and commercial entities are now better able to access capital markets Emirates NBD is optimistic about the expected economic recovery and is well placed to take advantage of selected growth opportunities ■ Global economic recovery is expected to continue ■ UAE GDP is expected to recover to c.2.4% in 2010 and c. 3.2% in 2011 Expected resolution of remaining key debt restructurings is expected to further improve confidence and economic activity ■ The financial sector is showing signs of emerging from the deleveraging process which commenced at the end of 2008 Emirates NBD 26 26#27Summary Emirates NBD ■ Robust financial performance with steady core income compared with Q2 2010 and Q1 2010 ■ Cost rationalisation initiatives proving successful evidenced by reductions in absolute levels of expenses and in the cost to income ratio Significantly improved liquidity metrics and strong capital ratios due to success of balance sheet optimisation initiatives Credit quality remains pro-actively managed and within expectations ■ Dubai World specific provision made in Q3 2010; portfolio impairments at USD 699 million ■ Continued focus in Q3 2010 on balance sheet optimisation, profitability and risk management enhancement while selectively investing in platforms for growth ■ Dubai remains well-positioned as the region's key economic, trading and financial hub 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 Awards 28#292010 Awards middle east investor relations society award winner 2010 October 2010 - "Best Investor Relations in the Middle East" Award by ME-IR Society / Thomson Reuters Extel The Banker June 2010- Banker Middle East Award 2010 in the "Best Use of Technology" The Banker April 2010- Banker Middle East - Products Award for "Best Personal Loan❞ Emirates NBD March 2010- 2010 Financial Sector Technology (FST London) award for "Systems Integration Project of the Year" 29 29#302010 Awards Emirates NBD The Banker March 2010- Sh. Mohammed bin Rashid Al Maktoum "Supporters of the Arts Award" February 2010- "The number one banking brand in the Middle East" Award by The Banker February 2010- "Best Private Bank in the UAE" in Euromoney Private Banking survey for 2010 30#31Investor 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