#1Emirates NBD Investor Presentation September 2018 Emirates NBD#2Emirates NBD 2 Important Information Disclaimer The material in this presentation is general background information about the activities of Emirates NBD Bank PJSC (Emirates NBD), current at the date of this presentation, and believed by Emirates NBD to be accurate and true. It is information given in summary form and does not purport to be complete. Some of the information that is relied upon by Emirates NBD is obtained from sources believed to be reliable, but Emirates NBD (nor any of its directors, officers, employees, agents, affiliates or subsidiaries) does not guarantee the accuracy or completeness of such information, and disclaims all liability or responsibility for any loss or damage caused by any act taken as a result of the information. The information in this presentation is not intended to be relied upon as advice or a recommendation to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. An investor should seek independent professional advice when deciding if an investment is appropriate. Due to rounding, numbers and percentages presented throughout this presentation may not add up precisely to the totals provided. Forward Looking Statements Certain matters discussed in this presentation about the future performance of Emirates NBD or members of its group (the Group), including without limitation, future revenues, earnings, strategies, prospects and all other statements that are not purely historical, constitute "forward-looking statements". Such forward-looking statements are based on current expectations or beliefs, as well as assumptions about future events, made from information currently available. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "seek”, “believe”, “will”, “may”, “should”, “would”, “could” or other words of similar meaning. Undue reliance should not be placed on any such statements in making an investment decision, as forward-looking statements, by their nature, are subject to known and unknown risks and uncertainties that could cause actual results, as well as 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, such as 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 statement, including 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.#3Appendix Strategy Emirates NBD Profile Operating Environment Financial & Operating Performance | M bpd 3.2 UAE Economic Update Highlights Oil production in KSA remained well below its OPEC targets at the end of April. The UAE is also showing compliance with its OPEC target. We expect KSA and the UAE will likely increase production going forward consistent with the latest OPEC agreement to offset expected decline in Iranian exports The Emirates NBD Purchasing Managers' Index (PMI) for the UAE declined to 55.8 in July from 57.1 in June, signalling the slowest rate of growth in the non-oil private sector in three months Oil Price and UAE oil production UAE Oil Production (LHS) 3.0 2.8 2.6 2.4 2.2 2.0 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Source: Bloomberg, Emirates NBD Research Apr-15 Jul-15 Oct-15 Jan-16 ICE Brent (RHS) 60 125 58 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17- Jul-17 Oct-17 Jan-18 Apr-18 0 25 25 75 50 100 USD per barrel 52 52 54 56 Real GDP growth forecasts Emirates NBD 2013 2014 2015 2016 2017 2018F S. Arabia 2.7 3.7 4.1 1.7 -0.7 1.5 UAE 4.7 3.3 3.8 3.0 1.5 2.2 Qatar 4.0 3.5 3.3 2.0 1.2 3.4 Kuwait 1.1 0.5 0.6 3.5 -2.9 1.8 Oman 4.4 2.5 4.7 5.4 1.0 2.6 Bahrain 5.4 4.4 2.9 3.2 3.9 -2.3 GCC (average) 3.3 3.2 3.7 2.4 0.1 2.0 Egypt 2.1 2.9 4.4 4.3 4.2 5.2 Jordan 2.8 3.1 2.4 2.0 2.1 2.6 Lebanon 3.0 1.8 0.8 1.0 1.6 1.8 Tunisia 2.9 2.3 1.1 1.0 1.7 2.0 Morocco 4.4 2.7 4.5 1.2 4.0 2.7 MENA (average) 2.8 2.7 3.7 3.1 3.4 3.7 Source: Bloomberg, Emirates NBD Research UAE PMI - Non oil private sector activity 50 Jan 15 Jun 15 Nov 15 Apr 16 Sep 16 Feb 17 Jul 17 Dec 17 May 18 Source: Markit / Emirates NBD 3#4Emirates NBD 4 Dubai Economic Update (1/3) Highlights The headline Dubai Economy Tracker Index (DET) declined to 54.9 in July from 56.0 in June, signalling the slowest growth in Dubai's private sector in three months Dubai's real GDP expanded 2.8% in 2017 to reach AED 389.4bn, in line with our forecast of AED 389.9bn. The biggest growing sector is Hospitality 8% y-o-y, followed by Real Estate and Transportation by 7.3% and 4.5% respectively Composition of Dubai GDP in FY-17 Others 23% Trade 27% Hosp 5% Transport & Storage 12% Constr. & RE 13% Manuf. 9% Financial services 10% Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment 62 60 58 56 54 52 50 48 Emirates NBD Dubai Economy Tracker Index Source: Dubai Statistics Centre Dubai: Key sector growth rates in FY-17 Jan-15 Jun-15 Nov-15 Source Markit, Emirates NBD Research Apr-16 Sep-16 Feb-17 Jul-17 Dec-17 May-18 10 8 6 4 2 0 8.0 7.3 llu.... 4.5 3.5 3.0 2.0 0.9 Manufacturing Hospitality Real estate Transport & storage Source: Dubai Statistics Centre Construction Public defence Trade#5Operating Environment Financial & Operating Performance Emirates NBD Profile Appendix Strategy Dubai Economic Update (2/3) Highlights Passenger traffic at the Dubai International Airport (DXB) decline to 50.5mn in Jan-July 2018, down by 1% y-o-y Dubai Airports passenger traffic 55 million pax • Passenger traffic is expected exceed 90 million in 2018, according to Dubai Airports 45 35 • Dubai's hotel occupancy averaging 75% in Jan-July 2018 down from 76.2% in the same period a year ago · The supply of hotel rooms in Dubai increased by 5.6% y-o-y in H1 2018 to 102,164 rooms. The Department of Tourism and Commerce Marketing (DTCM) is targeting 140,000 to 160,000 hotel rooms by the end of the decade Hotel occupancy and RevPAR 100 % 90 80 70 60 50 40 30 Emirates NBD 5 1600 million tons 1500 1400 1300 51.1 50.5 48.1 45.0 1200 39.8 38.0 25 32.9 29.3 1100 15 1000 Jan-Jul 2011 Jan-Jul 2012 Jan-Jul 2013 Jan-Jul 2014 Jan-Jul 2015 Jan-Jul 2016 Jan-Jul 2017 Jan-Jul 2018 Passenger traffic (LHS) Cargo traffic (RHS) Source: Dubai Airports, Emirates NBD Research Top 10 visitors by nationality in Jan-Jun 2018 y/y growth 20 % of total 8.10mn visitors 15 10 5 0 -5 -10 -15 -20 -25 Jan-13 Aug-13 Mar-14 Oct-14 May-15 Dec-15 Jul-16 Feb-17 Sep-17 Apr-18 Average hotel occupancy rates, % (LHS) Average revenue per available room, y/y growth, 3M MA (RHS) Source: STR Global, Emirates NBD Research India 13.4% Other 41.2% Saudi Arabia 9.2% Pakistan 3.0% Germany 3.7% UK 7.4% China 5.6% Russia 5.0% Oman USA 4.8% 4.0% Source: Department of Tourism and Commerce Marketing, Emirates NBD Research#6Emirates NBD Profile Operating Environment Dubai Economic Update (3/3) Highlights Softness in residential real estate prices continues with apartment prices faring better than villas Apartment prices were down -6.2% y-o-y in March, compared with -6.6% y-o-y in March last year. Villa prices fell -10.1% y-o-y in March Higher interest rates, declining rents and increasing supply are likely to remain headwinds in 2018. Dubai residential real estate prices expected to recover modestly in 2019 and rise further in 2020-2021 Dubai residential property prices Financial & Operating Performance | % y/y Strategy Appendix Residential property prices 350 300 250 200 150 100 50 0 Feb-03 Dec-03 Oct-04 Aug-05 Jun-06 Apr-07 Feb-08 Dec-08 Oct-09 Aug-10 Jun-11 Emirates NBD 6 Apr-12 Feb-13 Dec-13 Oct-14 Aug-15 Jun-16 Apr-17 Feb-18 Dubai Abu Dhabi Source: Bank of International Settlements Dubai transaction volumes ⚫Apartments Villas 1600 Apartments (LHS) Villas (RHS) 200 63 180 1400 160 O 1200 140 36927 2 -12 -15 -18 1000 120 100 800 80 600 60 400 40 200 20 Jan-15 Source: Phidar Advisory, Emirates NBD Research Jun-15 Nov-15 Apr-16 Sep-16 Feb-17 Jul-17 Dec-17 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Source: Phidar Advisory, Emirates NBD Research Jan-17 Jul-17 Jan-18#7Appendix Strategy Financial & Operating Performance | Emirates NBD Profile Operating Environment UAE Banking Market Update Highlights Bank loans increased by AED 28.3 bn and 1.8% y-o-y to AED 1622.90 bn in July Bank deposits increased by AED 102.7 billion and 6.5% y-o-y to AED 1694.90 bn in July Although the 3m EIBOR rate has increased in recent months, this has been mostly due to higher USD rates, with the spread over 3m LIBOR narrowing Bank deposit and loan growth AD ratio (RHS) 20% 15% 10% 5% 0% -5% Bank deposits (% y/y) Bank Loans (% y/y) 110% 105% 100% 95% 90% 85% 80% UAE banking market (AED Bn) Gross Loans 316 1306 Deposits 335 1349 1684 Assets 478 2271 Emirates NBD Other Banks Total 1622 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Source: UAE Central Bank; loan growth gross of provisions GCC banking market UAE(1) Banking Assets USD Bn KSA Qatar Kuwait 2749 Bahrain (2) 60 Oman 85 233 382 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Assets % GDP(3) 749 178 616 80 204 170 1) Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2018 forecasted. UAE, KSA, Qatar, Kuwait Bahrain and Oman as at June 2018. Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts. 100 159 Emirates NBD 7#8Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD at a glance A leading bank in the region Market share in the UAE (as at 30 June 2018) -Assets 17.4%; Loans 19.5%; Deposits 19.9% Leading retail banking franchise in the UAE with the largest distribution network, complemented by a best-in-class mobile and online banking platform Fully fledged financial services offerings across retail banking, private banking, wholesale banking, global markets & trading, investment banking, brokerage, asset management, merchant acquiring and cards processing 55.8% indirectly owned by the Government of Dubai through its investment arm (Investment Corporation of Dubai) Credit ratings Fitch Ratings M Long Term / Short Term Outlook Most Recent Rating Action A+ / F1 Stable A3 / P-2 Stable Moody's Full Rating Report (20-Apr-2018) Rating Action (23-May-18) GCAPITAL A+ / A1 intelligence Stable Ratings affirmed (11-Oct-2017) Branch Rep office Emirates NBD 8 Largest branch network in the UAE Ras al-Khaimah (5) Dubai 100 Abu Dhabi 25 Sharjah 17 Umm al-Quwain (2). Other Emirates 12 Ajman (2) -Fujairah (3) Total 154 Dubai (100) - Sharjah (17) ° Abu Dhabi (25) International presence Egypt (69 branches)#9Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Key strengths Size One of the largest financial institutions by asset size in the GCC (top 3); 2nd largest in the UAE Flagship Flagship bank for the Government of Dubai and the UAE, playing a strategic role in developing the economy Balance Sheet Well-capitalized with a strong balance sheet that is positioned to grow and deliver outstanding value to its stakeholders Geographic Presence Sizeable footprint in the UAE (with the largest branch network); international presence in Asia, Europe and MENA. Emirates NBD Emirates NBD Ownership 56% owned by the Government of Dubai (via Investment Corporation of Dubai) Profitable Consistently profitable, despite low commodity price environment and other regional headwinds Diversified Offering Fully fledged, diversified financial services offering and regional leader in digital banking Leader in Digital Banking 6th best banking app worldwide, Strong Customer acquisition by Liv. In its first year of operation 9#10Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance Emirates NBD 10 Emirates NBD is the regional leader in digital innovation 2012 New Dynamic IVR Introduced Direct Remit 2 Mobile Remit to India Mobile number in just 60 secs CRM Cockpit app smart, paperless and instant banking Introduced SkyShopper FaceBanking 4.5/5 (Avg. Rating) CRM Started multichannel CRM foundation and Mobile Banking vision 2013 Introduced 1st Generation of Mobile Banking App Introduced The new ITM 04 The First video based interactive teller machine in MENA WU Introduced Western Union Transfers through mobile banking for the first time in the region 2014 Introduced Shake n' Save The First Mobile Introduced Direct Remit to India Remit to India in just 60 secs Introduced Remote Cheque Deposit for the first time outside of US and Canada Introduced Social Banking Twitter inquiry service for the first time in MENA ICCS Collect digital warehousing and processing of cheques Introduced Apple Pay Samsung Pay Introduced Get Queuing Ticket For the first time in the region Introduced Direct Remit to Pakistan Remit to Pak in just 60 secs liv. Digital Bank for Millennials 2018 Introduced InstaLoan The first instant paperless loan disbursal in MENA 2016 2017 mePay cardless cash withdrawal Digital Branch Paperless Account Opening pilot Decision Management System roll out commenced Tablet based Account Opening Savings product in the region ద Introduced mePay Introduced P2P money transfer service for Emirates NBD Customers 2015 Introduced Direct Remit to Philippines Remit to Phil in just 60 secs Introduced Direct Remit to Sri Lanka Remit to SL in just 60 secs Introduced Direct Remit to Egypt Remit to Egypt in just 60 secs Introduced ENBD Pay NFC based mobile contactless payment service Inaugurated FutureLab Pepper Robot Tablet based investment sales Launch of Liv. Goals Website personalization digitization 6 th best app worldwide (as ranked by Forrester) Introduced IPO Subscription IPO through ATM, Online and Mobile Investment Portfolio Widgets on Mobile Banking Introduced Direct Remit 2 Mobile Cash Remit cash to any Indian Mobile number EUROMONEY AWARDS FOR EXCELLENCE 2017 Best Digital Bank in the Middle East#11Financial & Operating Performance Emirates NBD Profile Operating Environment Appendix Strategy Emirates NBD is one of the largest banks in the GCC Assets USD Bn, H1 2018 * QNB بنك أبوظبي الأول FAB First Abu Dhabi Bank Loans USD Bn, H1 2018 232 10% * QNB Deposits USD Bn, H1 2018 166 9% * QNB Emirates NBD 11 x% H1 2018 vs. H1 2017 Operating Income USD Bn, H1 2018 169 9% * QNB بنك أبوظبي الأول بنك أبوظبي الأول 188 11% FAB 94 7% FAB 117 14% First Abu Dhabi Bank First Abu Dhabi Bank بنك أبوظبي الأول FAB First Abu Dhabi Bank Emirates NBD 130 5% Emirates NBD 86 4% Emirates NBD 91 5% NCB NCB الأهلي " الوطني NBK 97 40 Al Rajhi Bank مصرف الراجحي 93 33 121 1% NCB الأهلي 71 4% NCB Al Rajhi Bank 6% 61 (2%) مصرف الراجحي الوطني الأهلي 85 55 الأهلي 2.1 4% 1.7 10% 1.5 8% Emirates NBD 1.4 1% 28% Al Rajhi Bank 75 مصرف الراجحي | (2%) 7% NBK 55 6% NBK ع الوطني Al Rajhi Bank 1.3 12% مصرف الراجحي - الوطني 53 NBK 8% 0.8 14%#12Emirates NBD Profile Operating Environment Strategy Financial & Operating Performance Appendix Emirates NBD 12 Costs +4% Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Revenues +7% Profits (AED Bn) Pre-Provision Operating Profits Net Profits +8% +27% 15.2 14.4 14.7 15.5 4.7 4.9 4.8 4.2 4.4 10.1 10.5 10.6 8.3 9.9 11.9 7.1 7.2 7.4 7.7 7.1 8.0 +13% 8.5 6.3 2.3 2.3 2.5 2.4 2.6 7.7 5.1 5.2 5.4 4.7 2.6 5.1 4.5 5.8 3.8 3.5 5.0 +17% 4.0 +12% 3.3 +29% 2.8 5.5 7.0 7.6 7.7 7.5 1.9 2.1 2.2 2.5 2.3 4.9 5.3 5.2 5.2 1.4 3.6 3.3 3.7 3.9 1.8 2.3 2013 2014 2015 2016 2017 H1- 2013 2014 2015 2016 2017 H1- 18 18 2013 2014 2015 2016 2017 H1- 18 2013 2014 2015 2016 2017 H1-18 Assets and Loans (AED Bn) Assets Loans Deposits and Equity (AED Bn) Deposits +8% +6% 448 470 478 +8% 407 342 363 +2% 271 290 304 316 +11% 238 246 +4% 311 327 335 258 287 +3% 54 54 240 45 48 0% 41 35 Equity 2013 2014 2015 2016 2017 H1-18 2013 2014 2015 2016 2017 H1- 2013 2014 2015 2016 2017 H1-18 2013 2014 2015 2016 2017 H1-18 18 Equity is Tangible Shareholder's Equity excluding Goodwill and Intangibles. All P&L numbers are YTD, all Balance Sheet numbers are at end of period Source: Financial Statements#13Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD delivered a strong set of results in H1-18 H1 2018 Key Metrics Emirates NBD 13 H1 2018 2018 Guidance Profit Net profit AED 5.0 Bn +29% y-o-y NIM 2.78% 2.75-2.85% (revised) . Higher growth in GCC economies Cost-to-income 31.3% 33% 2018 Macro themes Regional Resilience of UAE economy underpinned by non-oil activity growth Global Emirates NBD's balance sheet positioned to benefit from rising interest rates Improving US and North Korean relations • Credit Quality NPL 6.0% Improving trend • Coverage 128.4% Capital CET 1 16.3% Stable liquidity Strong UAE PMI and Dubai Economy Tracker readings Tier 1 19.8% Global geo-politics CAR 21.2% Impact of potential US-China trade war on global markets Liquidity AD ratio 94.4% 90-100% LCR ratio 158.7% Assets Loan growth 4% ytd mid-single digit#14Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment H1-18 Financial Results Highlights Key Performance Indicators Highlights Record half-year net profit of AED 5,018 Mn for H1-18 increased 29% y-o-y Net interest income improved 20% y-o-y and 11% compared to H2-17 on loan growth coupled with an improvement in margins Non-interest income declined 2% y-o-y and 7% compared to H2-17 due to lower income from investment securities Costs increased 17% y-o-y and 2% compared to H2-17 due to higher staff and IT costs relating to our digital transformation and technology refresh. Costs were also higher as a result of international branch expansion Provisions of AED 755 Mn improved 40% y-o-y whilst coverage ratio strengthened to 128.4% NPL ratio stable at 6.0% LCR of 158.7% and AD ratio of 94.4% demonstrates the Group's healthy liquidity position NIMs improved 37 bps y-o-y to 2.78% YTD as rate rises flowed through to loan book Emirates NBD Better / AED Mn H1-18 H1-17 H2-17 (Worse) Better / (Worse) Net interest income 6,229 5,185 20% 5,601 11% Non-interest income 2,222 2,268 (2%) 2,401 (7%) Total income 8,451 7,453 13% 8,002 6% Operating expenses (2,646) (2,253) (17%) (2,592) (2%) Pre-impairment 5,805 5,200 12% 5,410 7% operating profit Impairment allowances (755) Operating profit 5,050 3,940 (1,260) 40% 28% (968) 22% 4,442 14% Share of profits from 49 12 294% 60 (18%) associates Taxation charge (82) (58) (40%) (50) (62%) Net profit 5,018 3,894 Cost: income ratio (%) Net interest margin (%) 31.3% 2.78% 29% 30.2% (1.1%) 32.4% 2.41% 0.37% 2.53% 4,452 13% 1.1% 0.25% AED Bn 30-Jun-18 30-Jun-17 % 31-Dec-17 % Total assets 477.5 456.2 5% 470.4 2% Loans 316.4 304.0 4% 304.1 4% Deposits 335.0 319.9 5% 326.5 3% AD ratio (%) 94.4% 95.0% 0.6% 93.1% (1.3%) NPL ratio (%) 6.0% 6.1% 0.1% 6.2% 0.2% 14#15Appendix Strategy Q2-18 Financial Results Highlights Key Performance Indicators Financial & Operating Performance Emirates NBD Profile Operating Environment Highlights • . Net profit of AED 2,631 Mn for Q2-18 increased 30% y-o-y and 10% q-o-q Net interest income improved 20% y-o-y and 9% q-o-q on loan growth coupled with an improvement in margins Non-interest income declined 3% y-o-y and 1% q-o-q due to lower income from investment securities Costs increased 21% y-o-y and 7% q-o-q due to higher staff and IT costs relating to our digital transformation and technology refresh. Costs were also higher as a result of international branch expansion Provisions of AED 315 Mn improved 49% y-o-y and 29% q-o-q on a lower cost of risk whilst coverage ratio strengthened to 128.4% NPL ratio stable at 6.0% LCR of 158.7% and AD ratio of 94.4% demonstrates the Group's healthy liquidity position NIMS improved 33 bps y-o-y and 14 bps q-o-q to 2.82% as rate rises flowed through to loan book which more than offset a rise in deposit costs on a modest change in deposit mix Emirates NBD AED Mn Q2-18 Q2-17 Better/ (Worse) Q1-18 Better / (Worse) Net interest income Non-interest income Total income Operating expenses 3,245 2,699 20% 2,984 9% 1,103 1,137 (3%) 1,119 (1%) 4,348 3,836 13% 4,103 6% (1,370) (1,136) (21%) (1,276) (7%) Pre-impairment 2,977 2,699 10% 2,828 5% operating profit Impairment allowances (315) (621) 49% (440) 29% Operating profit 2,663 2,078 28% 2,388 12% Share of profits from 18 (26) 170% 31 (41%) associates Taxation charge (50) (31) (60%) (32) (55%) Net profit 2,631 2,021 30% 2,386 10% Cost: income ratio (%) Net interest margin (%) 31.5% 2.82% 29.6% 2.49% (1.9%) 31.1% (0.4%) 0.33% 2.68% 0.14% AED Bn 30-Jun-18 31-Dec-17 % 31-Mar-18 % Total assets 477.5 470.4 2% 475.6 0% Loans 316.4 304.1 4% 311.4 2% Deposits 335.0 326.5 3% 331.9 1% AD ratio (%) 94.4% 93.1% (1.3%) 93.8% (0.6%) NPL ratio (%) 6.0% 6.2% 0.2% 6.0% 0.0% 15#16Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Net Interest Income Emirates NBD 16 Highlights NIMs continued to improve in Q2-18 as rate rises flowed through to the loan book which more than offset a modest rise in funding costs Q2-18 NIM of 2.82% improved 14 bps q-o-q and 33 bps y-o-y Loan yields improved 17 bps q-o-q and 35 bps y-o-y helped by recent interest rate rises Deposit costs increased modestly due to the higher rate environment and a small change in CASA - Fixed Deposit mix Wholesale Funding costs improved as the Bank efficiently deployed excess liquidity and successfully replaced maturing debt at more favourable pricing 2018 NIM guidance increased to 2.75-2.85% in light of rising interest rates Net Interest Margin Drivers (%) Q2-18 vs. Q1-18 Net Interest Margin (%) 2.85 2.82 2.62 2.62 2.58 2.54 2.56 2.51 2.49 2.51 2.55 2.47 2.44 2.33 2.46 2.29 2.41 2.82 2.68 2.78 Q415 Q116 Q216 Q316 Q416 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Qtrly NIM YTD NIM (0.06) 0.17 2.68 2.82 0.03 H1-18 vs. H1-17 2.78 1(0.05) L. 0.07 0.35 2.41 Q1 18 Loan Yield Deposit Cost Treasury & Other Q2 18 H1-17 Loan Yield Deposit Cost Treasury & Other H1-18#17Operating Environment Non-Interest Income Highlights • Core gross fee income was 10% higher y-o-y and 3% higher q-o-q due to higher foreign exchange income Non-interest income declined 3% y-o-y and 1% q-o-q as lower income from investment securities more than offset the rise in core fee income This quarter included an impairment provision on a private equity fund holding barring which total non interest income would have increased by 4% y-o-y and 6% q-o-q Appendix Strategy Financial & Operating Performance Emirates NBD Profile Emirates NBD 17 Composition of Non Interest Income (AED Mn) AED Mn Q2-18 Q2-17 Better / (Worse) Q1-18 Better/ (Worse) Core gross fee income Fees & commission expense 1,471 1,333 10% 1,428 3% (284) (236) (20%) (272) (4%) Core fee income Property income/(loss) Investment securities & other income 1,187 10 1,097 (27) 138% 8% 1,156 3% (90) (112%) (95) 67 (241%) 53 (278%) Total Non Interest Income 1,103 1,137 (3%) 1,119 (1%) Trend in Core Gross Fee Income (AED Mn) +10% +3% 1,432 1,428 1,471 1,333 1,338 352 347 428 421 482 42 54 29 51 '43' 766 776 795 792 786 174 162 180 165 160 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Forex, Rates & Other Brokerage & AM fees Fee Income Trade finance#18Operating Environment Emirates NBD Operating Costs and Efficiency Highlights • Q2-18 costs were 7% higher q-o-q due to an increase in staff and IT costs as signaled earlier. Other costs also increased due to costs associated with the acquisition opportunity in Turkey Costs increased 21% y-o-y in Q2-18 but remain within 2018 guidance of 33% as we continue with our investment in digital transformation and technology refresh Occupancy costs increased due to the Bank's international branch expansion Cost to Income Ratio (%) 33.7 34.5 32.6.……… .328......... 32.0 32.0 33.1 31.3 31.1 31:5 32.3 30.9 30.8 32.0 32.7 30.2 30.9 29.6 Q1 16 Q2 16 Q3 16 Q4 16 ■■■■ Target Q1 17 Q2 17 CI Ratio (YTD) Q3 17 Q4 17 Q1 18 Q2 18 CI Ratio Appendix Strategy Financial & Operating Performance Emirates NBD Profile Cost Composition (AED Mn) 1,270 1,322 1,370 1,276 1,136 X(7%) 765 797 842 812 732 93 88 91 98 108 92 99 94 96 91 222 314 329 277 333 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Staff Cost Occupancy Cost Depr & Amort Other Cost 18#19Operating Environment Emirates NBD 19 Credit Quality Highlights • NPL ratio was steady at 6.0% in Q2-18 Impaired loans steady in 2018 helped by AED 840 Mn of write backs & recoveries Impaired Loan & Coverage Ratios (%) 120.1 122.5 123.5 124.9 124.5 127.9 128.4 111.5 99.6 76.1 66.2 H1-18 annualized loan cost of risk at 55 bps continued to moderate as net impairment charge of AED 755 Mn improved 40% y-o-y 59.8 '57.5 49.4 43.4 13.9 4.3 4.0 3.6 Coverage ratio strong at 128.4% Stage 1 & 2 ECL allowances amount to AED 7.2 Bn or 3.1% of credit RWA 7.9 7.1 6.4 6.3 6.1 6.1 6.2 6.0 6.0 9.5 10.3 10.3 Strategy Financial & Operating Performance Emirates NBD Profile Appendix Impaired Loans and Impairment Allowances (AED Bn) Impaired Loans 13.8 14.0 13.7 13.8 13.7 14.0 15.1 15.0 Q4 11 Q4 12 Q4 13 Q4 14 Q4 15 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Impact of DW % NPL ratio Coverage ratio, excl. DW % Coverage ratio +1% +1% 20.1 20.3 20.1 20.2 20.1 20.3 20.3 20.5 24.3 24.3 24.7 24.9 25.2 25.3 26.0 26.3 Impairment Allowances 0.7 0.7 0.7 0.7 0.7 0.8 0.5 0.5 0.8 0.8 0.8 0.8 0.9 0.9 1.2 1.2 5.6 5.5 0.1 5.6 5.6 5.6 5.5 4.7 0.0 5.0 0.0 5.0 4.8 0.1 4.7 4.7 4.9 0.0 4.6 6.0 6.0 -0.1 0.1 -0.1 -0.1 -0.1 -0.14 -0.1 -0.1 -0.0 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Core Corporate Retail Islamic Other Debt Securities 18.8 19.2 18.5 18.7 19.1 19.3 19.3 19.7#20Operating Environment Capital Adequacy Highlights • In Q2-18, capital ratios improved by 0.8-0.9% as retained earnings more than offset the increase in Risk Weighted Assets CAR unchanged at 21.2% since the beginning of the year as retained earnings were offset by retirement of Tier 2 debt and the transition adjustment to IFRS 9 Emirates NBD has been designated a Domestically Systemically Important Bank. Additional D-SIB buffer of 1.125% for 2018 rising to 1.5% by 2019 New Basel III Capital Standards not expected to materially impact the Bank's Capital profile Capitalisation Capital Movements AED Bn Appendix Strategy Financial & Operating Performance Emirates NBD Profile Emirates NBD 20 21.2 20.3 21.2 19.8 18.9 19.0 15.6 15.5 16.3 57.8 57.5 55.0 -6.3 3.7 3.8 8.9 9.5 9.5 42.6 41.7 44.3 Q4 17 Q1 18 Q2 18 T2 AT1 CET1 T1 % CAR % CET1 % Risk Weighted Assets (AED Bn) CET-1 Tier 1 Tier 2 Total +2% Capital as at 31-Dec-2017 42.6 51.5 6.3 57.8 267.1 271.6 273.0 270.1 271.7 Net profits generated 5.0 5.0 5.0 25.7 25.7 8.4 -7.3 26.4 26.4 26.4 -7.8 10.5 10.2 Impact of IFRS 9 (2.3) (2.3) (2.3) 233.0 238.6 238.8 233.3 235.1 Repayment of Tier 2 (2.9) (2.9) Interest on T1 securities (0.3) (0.3) (0.3) Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Other (0.7) (0.1) 0.4 0.2 Capital as at 30-Jun-2018 44.3 53.8 3.8 57.5 Operational Risk Market Risk Credit Risk * Q4-17 capital ratios adjusted for 2017 dividend#21Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD 21 • • Funding and Liquidity Highlights Liquidity Coverage Ratio of 158.7% and AD ratio of 94.4% demonstrates healthy liquidity position Liquid assets* of AED 67.5 Bn as at H1-18 (16.1% of total liabilities) Debt & Sukuk term funding represent 10% of total liabilities In H1-18, AED 6.7 Bn of term-debt issued in 5 currencies with maturities out to 30 years AED 3.2 Bn of expensive Tier 2 debt was called in H1-18 Modest maturities of AED 0.3 Bn for remainder of 2018 enable Group to consider debt issues opportunistically Advances to Deposit (AD) Ratio (%) 118.5 98.1 105.1 102.0 99.5 95.2 95.9 96.1 94.2 92.8 93.4 95.0 94.4 92.5 93.1 18 93.8 94.4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 09 10 11 12 13 14 15 16 16 16 16 17 17 17 17 18 18 789 829 Target range AD Ratio Composition of Liabilities/Debt Issued (%) Liabilities (AED 418 Bn) Debt/Sukuk (AED 43.2 Bn) Maturity Profile of Debt Issued (AED Bn) 13.2 Maturity Profile of Debt/Sukuk Issued Customer deposits 80% Banks 5% Others 5% Debt/Sukuk 10% Syn bank borrow. 1% Loan secur. 0% 7.0 EMTNS 8% Sukuk 1% 0.3 AED 43.2 Bn 6.2 8.3 7.8 6.2 *Including cash and deposits with Central Banks but excluding interbank balances and liquid investment securities 2.2 1.4 0.5 0.5 0.8 1.0 0.2 0.3 0.2 0.4 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2032 2037 2038 2048 Club Deal Public & Private Placement#22Emirates NBD Profile Operating Environment Emirates NBD 22 Loan and Deposit Trends Highlights Gross loans grew 4% in H1-18 with growth across all sectors Corporate lending grew 3% since year- end due to growth in the services and trade sectors Consumer lending grew 8% since year- end with growth in mortgages and term loans Islamic financing grew 5% since year- end due to growth in manufacturing, trade, Fl and retail sectors Deposits grew 3% in H1-18 with an increase In both CASA and fixed deposits CASA deposits represent 54% of total deposits, down 1% since the beginning of the year Trend in Gross Loans by Type (AED Bn) +4% 337 343 329 329 329 320 310 314 315 303 225 226 227 233 242 242 243 249 252 221 30 31 33 35 35 35 34 35 36 37 51 54 54 53 52 52 53 51 53 54 0 -0 0 -0 -0 0 -0 0. -0 0 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Islamic* Treasury/Other Q1 16 Q2 16 Corporate Consumer Trend in Deposits by Type (AED Bn) 312 311 319 320 322 291 ២៩ 298 7 7 7 +3% སྐྱི་ 327 332 335 137 113 122 133 135 133 131 132 141 146 Appendix Strategy Financial & Operating Performance * Gross Islamic Financing Net of Deferred Income 172 169 172 169 179 181 183 178 188 182 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Other Time CASA#23Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD 23 Loan Composition Total Gross Loans (AED 343 bn) Treasury/Other Retail 37 (11%) 0 (0%) 107 (31%) Corporate Corporate Loans (AED 107 bn) Trans. & com. Cont. 2% Trade 5% RE 16% 33% Sovereign 146 (43%) Retail Loans (AED 37 bn) Others Overdrafts 9% 7% Car Loans 11% Manuf. 5% 7% 53 (15%) Others** 0% 3% Islamic* Per. - Corp. 6% Hotels/ Rest. 12% Serv. 12% Mgmt. of Cos. Fin. Inst. Islamic* Loans (AED 53 bn) RE 15% Hotels & Rest. 0% Mgmt of Cos Personal 37% 2% Fin Inst 6% Personal 49% 3% Serv. 4% Others** 4% 16% Credit Cards 1% 19% Time Loans Mortgages * Islamic loans net of deferred income; **Others include Agriculture & allied activities and Mining & quarrying 3% 13% 1% Trade Cont. Trans. & com. Manuf.#24Emirates NBD 24 Divisional Performance Wealth Management Revenues increased 13% y-o-y Net interest income grew 10% y-o-y led by liabilities. Fee income grew 19% y-o-y supported by FX and cards and represents 36% of total RBWM revenue Loans were up 5% due to growth in mortgages and term loans Liv., the country's first digital bank targeted at millennials, completed its first year of operations, acquiring 100,000 customers to become the fastest growing bank in the UAE The bank continues to optimize its distribution network with 607 ATMs and 93 branches as at 30-Jun-18 Balance Sheet Trends AED Bn Revenue Trends +3% AED Mn +13% +5% 3% 137.1 140.9 1,790 1,836 1,629 646 642 539 38.8 40.6 1,090 1,144 1,194 Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Retail Banking & Emirates Islamic • Revenue increased 7% y-o-y driven by a 15% growth in fee income and a 4% increase in funded income Financing receivables grew 3% since year end to AED 34.9 billion helped by growth in manufacturing, trade, Fl and retail sectors Customer accounts grew 2% to AED 43 billion as El focused on improving liability mix and cost of funding CASA represents 70% of El's customer deposits As at 30-Jun-18, El had 61 branches and an ATM & CDM network of 208 Q4-17 Loans Q2-18 Deposits Q2-17 Q1-18 NFI Q2-18 NII Balance Sheet Trends AED Bn Revenue Trends AED Mn +2% +7% +3% (6%) 41.8 42.7 627 33.8 34.9 584 590 209 182 199 402 391 418 Q4-17 Q2-18 Q2-17 Q1-18 Q2-18 Financing receivables NFI NII Customer accounts#25Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Balance Sheet Trends Emirates NBD 25 Revenue Trends AED Bn -3% +4% 227.1 236.2 AED Mn +14% 6% 1,457 1,374 1,276 283 325 325 118.9 115.7 950 1,050 1,174 Divisional Performance (cont'd) Wholesale Banking Global Markets & Treasury • • Wholesale Banking revenues increased 14% y-o-y Loans grew 4% in H1-18 due to growth in services and trade sectors. Deposits declined 3% as expensive time deposits sourced over year-end rolled off Net Interest Income grew 24% y-o-y driven by an improvement in margins and growth in lending activity Fee income was lower in H1-18 due to a slowdown in Investment Banking activities partially offset by growing non-funded income from Treasury products Focus in 2018 on enhancing customer service quality, share of wallet, increased cross-sell of Treasury and Investment Banking products and larger Cash Management and Trade Finance penetration GM&T revenues increased 48% y-o-y Revenue growth helped by Balance Sheet positioning to take advantage of rate rises Trading delivered a strong performance with significant contributions from the Rates & FX desks Sales witnessed higher volumes in Derivatives and FX due to enhanced product capability and closer working relationship with Corporate & Institutional clients Structured Rates expanded to support flow business Raised AED 6.7 billion of term funding through public issues and private placements with maturities out to thirty years Q4-17 Q2-18 Q2-17 Q1-18 Q2-18 Loans Deposits NFI NII Revenue Trends AED Mn +48% -24% 252 191 92 4 129 79 160 188 50 Q2-17 Q1-18 Q2-18 NFI NII#26Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Emirates NBD's core strategy is focused on the following building blocks Key Objective Deliver an excellent customer experience (with digital being the focus) Strategic Run an Levers Drive core business efficient organization Enablers Build a high performing organization Drive geographic expansion Emirates NBD 26#27Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Highlights of strategic achievements in 2017 2 3 2017 Strategic Priorities Deliver an excellent customer experience Drive core business Run an efficient organization • • • • Reinforce ENBD's position as a digital innovator in the region via Best-in-class online, mobile banking services New digital channels, products, capabilities Digital platforms for seamless service to Corporates Gain market share across Retail products Rebalance Islamic franchise for profitable growth Diversify wholesale banking loans portfolio Grow fee income via improved Transaction Banking, Treasury and online offerings Transform the IT platform to increase agility and enable digital banking Streamline and automate key processes for end-to- end digitization Optimize risk return matrix and lower cost of risk Alignment of KPIs and optimization of governance structures for better collaboration Key Achievements • Won several awards including Most Innovative Financial Services Organization of the Year globally, at BAI Global Innovation Awards 2017 Launched Liv., the first digital bank for millennials centred on lifestyle • • • . • • • • • 60% of Corporate cheques deposited online using ICCS collect product Other key innovations - EVA, SkyShopper, FaceBanking RBWM CASA balances up 6%; over AED 2 bn disbursals in home loans Introduced Samsung Pay and Apple Pay, expanding digital offering suite Emirates Islamic recorded 565% YOY growth in Net Profits Engaged more Corporates on fee drivers with growth in payments volumes (11% YOY) and higher non-funded income (8% YOY) Committed an AED 1 bn investment towards digital transformation (invested over next 3 years) Achieved service milestones - increased self-service (12% drop in branch transactions), introduction of paperless personal loan applications through tablets (two-thirds of sourcing) Commenced development of state-of-the-art Wholesale Banking CRM 5 Drive geographic expansion • . Sustain growth and deepen footprint in Egypt Catalyze growth in other offshore locations Continue to evaluate potential organic and inorganic opportunities in selected markets • • Build a high performing organization Continue to drive nationalization efforts and develop local leadership talent Focus on performance management and employee engagement (People management capabilities, reward systems, impactful action) • Commenced branch operations in India in November, 2017 Expedited work on opening of three new branches in KSA (Q1, 2018) International assets grew by 3% YOY • • Received approval to open a Representative Office in Turkey to focus on Fl and Corporates Many key strategic roles in the Group were filled by senior Nationals New performance model in line with Group's digital and agile agenda was successfully piloted. Emirates NBD engagement level in 2017 was 62%, which is higher than GCC Commercial Banks (52%) and Global Commercial Banks (61%). Emirates NBD 27#28Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance 3 Strategic priorities for 2018 Pillars of our strategy Key focus areas Emirates NBD 28 Deliver an excellent customer experience (with digital being the focus) Continue to deliver superior customer experience and lead digital innovation in the region via • Prudent investments in to new digital opportunities while continuing to develop existing ones (e.g. Liv) • Continued efforts to upgrade digital banking services for Corporates 2 Drive core business Run an efficient organization • Drive geographic expansion • • Strengthen core business streams by increasing cross-sell and market share (Retail Banking), diversifying the loan portfolio (Wholesale Banking), and sustaining profitable growth (Islamic franchise) Increase fee and commission income via improved Transaction Banking, Treasury and online offerings . • Continue efforts to transform organization-wide IT platform to increase agility and accelerate digital innovation Streamline and automate key processes for end-to-end digitization • Continue improving organization-wide efficiency drivers -low cost of risk, optimal capital allocation and better cross- functional collaboration • Meet all new regulatory requirements (VAT, IFRS 9, BASEL III etc.) Sustain our growth path in Egypt, and develop other offshore locations (focus on newly opened India branch, accelerate KSA growth with three new branches) Catalyze growth in current international markets by focusing on cross border trade and other opportunities Continue to evaluate potential organic and inorganic opportunities in selected markets 5 Build a high performing organization • . Develop and execute Nationalization strategy in line with new point system mandated by UAE Central Bank. Launch and roll out the new performance philosophy, aligned with the Group's digital and agile strategy, which is aimed at facilitating a high performance and collaborative culture. • Invest in leadership development to equip staff to engage and inspire their teams.#29Emirates NBD Profile Operating Environment Appendix Strategy Financial & Operating Performance 2017 & H1 Selected Awards GLOBAL FINANCE The Banker Top 500 Banking Brands emeafinance Emirates NBD THE ASIAN BANKER® STRATEGIC BUSINESS INTELLIGENCE FOR THE FINANCIAL SERVICES COMMUNITY 'Most Innovative Bank in the Middle East' 'Top banking brand in the UAE' 'Best Local Investment Bank (UAE)' and 'Best Equity House (UAE)' Best Retail Bank in the Middle East', 'Best Digital Bank in Middle East' and 'Best Online Bank globally' 2017 ASIAN PRIVATE BANKER 7th AWARDS FOR DISTINCTION The Banker GLOBAL FINANCIAL INTELLIGENCE SINCE 1926 International Business EXCELLENCE AWARDS 2018 yc yallacompare 'Best Private Bank in Middle East' 'Bank of the Year - UAE 2017' 'Strategy, Change and Transformation Category' Tanfeeth 'Islamic Personal Finance Provider of the Year' Emirates Islamic EUROMONEY AWARDS FOR EXCELLENCE 2018 GULF SUSTAINABILITY AND CSR AWARDS 2018 Gulf Customer Experience Awards Banker MIDDLE EAST PRODUCT AWARDS 'Best Retail Customer Service' and 'Best Online Banking Services' 'Best Bank in the Middle East' and 'Best Bank in the UAE' Best CSR Team of the Year Award' 'Customer Experience Team' and 'Business Change or Transformation Awards' 29#30Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Large Deals Concluded in H1-18 Emirates NBD Bank Dhofar Saog USD 250m بنك ظفار Bank Dhofar Dual Tranche Dual Currency Syndicated Term Facilities June 2018 Mandated Lead Arranger, Bookrunner and Joint- Coordinator Emirates NBD Egyptian Electricity Holding Company USD 616.8m & EUR 240m Senior Unsecured Term Loan Facility Guaranteed By The Ministry Of Finance Of The Arab Republic Of Egypt June 2018 Bookrunner and Initial Mandated Lead Arranger Emirates NBD Pakistan International Airlines Corporation Limited USD 120m PAKISTAN International Airlines Great People to Fly With Senior Secured Term Loan Facility June 2018 Bookrunner, Initial Mandated Lead Arranger, On-Shore Account Bank and Off-Shore Account Bank Emirates NBD Emirates International Telecommunications USD 54m AND AED 2,061m EIT Syndicated Conventional And Islamic Financing Facilities May 2018 Mandated Lead Arranger, Bookrunner and Coordinator Emirates NBD T.C. Ziraat Bankasi .A.S. USD 452m & EUR 797.5m Ziraat Bank Dual Currency Term Loan Facility April 2018 Mandated Lead Arranger and Bookrunner, Joint- Coordinator and Documentation Agent Emirates NBD USD 245m & EUR 60m Vakif Katilim Bankasi A.S. USD 145m & EUR 82m Turkiye Vakıflar Bankasi T.A.O USD 329m & EUR 778.75m Puma International Financing S.A. USD 1,370m PUMA ENERGY Albaraka Turk Katilim Bankasi VAKIF KATILIM Syndicated Murabaha Financing Facility April 2018 Mandated Lead Arranger and Bookrunner Emirates NBD VakıfBank Dual Currency Term Loan Facility April 2018 Mandated Lead Arranger and Bookrunner, Joint- Coordinator and Publicity Agent Emirates NBD Syndicated Credit Facilities April 2018 Mandated Lead Arranger and Bookrunner Emirates NBD alBaraka Syndicated Murabaha Financing Facility April 2018 Initial Mandated Lead Arranger, Bookrunner and Joint-Coordinator Emirates NBD Damac USD 400m DAMAC 5 yr Sukuk -/BB/- April 2018 Emirates NBD As of end June 2018 30#31+ Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] Emirates NBD