Emirates NBD Earnings Presentation

UAE 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

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