CELEBRATING 100 YEARS OF ZAYED

ANNUAL REPORT 2018

BUILDING ON ZAYED'S VISION

VISION

"To be globally recognised as the most valued financial services provider based in the Middle East"

UAE Leadership

• H.H. Sheikh Khalifa Bin Zayed Al Nahyan - President of the United Arab Emirates
• H.H. Sheikh Mohammed Bin Rashid Al Maktoum - Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai
• H.H. Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum - Crown Prince of Dubai
• H.H. Sheikh Hamdan Bin Rashid Al Maktoum - Deputy Ruler of Dubai, Minister of Finance
• H.H. Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum - Deputy Ruler of Dubai

EMIRATES NBD BOARD OF DIRECTORS

• H.H. Sheikh Ahmed Bin Saeed Al Maktoum - Chairman
• Hesham Abdulla Al Qassim - Vice Chairman and Managing Director
• H.E. Khalid Juma Al Majid - Director
• Buti Obaid Buti Al Mulla - Director
• Hussain Hassan Mirza Al Sayegh - Director
• Shoaib Mir Hashem Khoory - Director
• Mohamed Hadi Ahmad Al Hussaini - Director
• Mohamed Hamad Obaid Al Shehi - Director
• Ali Humaid Ali Al Owais - Director

CONTENTS

Pages 07 - 17

• Chairman's Message
• Vice Chairman and Managing Director's Message
• Group CEO's Message
• Innovative Products and Services
• Economic Overview
• Strategy 2019

Pages 19 - 25

Review of Performance

• Financial Overview
• Retail Banking and Wealth Management
  • Overview
  • Distribution
  • Digital Innovation
  • Customer Service
  • Personal Banking
  • Priority Banking
  • Business Banking
  • Private Banking
  • Asset Management and Securities

Pages 25 - 27

• Wholesale Banking
  • Corporate Banking
  • Financial Institutions Group
  • Investment Banking
  • Transaction Banking Services
  • Global Markets and Treasury
  • Al Watani Al Islami

Pages 28 - 34

• Emirates Islamic
• Emirates NBD Egypt
• International
• Information Technology and Operations
  • Tanfeeth

Pages 35 - 43

• Group Human Resources
• Group Risk Management
• Group Compliance

Pages 45 - 63

• The Board and its Committees
• Management
• Financial Highlights
• Awards and Accolades
• Emirates NBD Branches and Contacts
• Emirates NBD Overseas Branches and Representative Offices
• Emirates NBD Overseas Subsidiaries
• Other Subsidiaries and Associate Contacts

CHAIRMAN'S MESSAGE

H.H. SHEIKH AHMED BIN SAEED AL MAKTOUM

CHAIRMAN, EMIRATES NBD

The UAE economy and the banking sector in particular remained resilient in 2018, despite a challenging environment across global markets. Emirates NBD has revised upwards the estimate of real GDP growth in 2018 to 2.4% on higher oil production in the second half of the year. For 2019, we expect economic activity to be underpinned by higher oil production and increased government spending, leading to headline GDP growth of 3.1%.

UAE remained the most competitive economy in the MENA region last year, as the government continues to progress the country's positioning among the world's top business-friendly nations.

Looking ahead, with just one year to go until Expo 2020 Dubai, we are glad to showcase our innovations in smart technology and digital banking through our site-wide presence as "Bank of the Future" at the event.

In 2017, Emirates NBD Group committed to investing AED 1 billion over the next three years in digital innovation. Our digital bank Liv. is rapidly becoming the bank of choice for millennials in the UAE.

In 2018, we dedicated our corporate social activities to the Year of Zayed and successfully exceeded our targets.

2019 marks the Year of Tolerance in the UAE and through our continuous investment in innovative assistive technologies, we aim not only to enhance the banking experience for People of Determination, but also to empower them towards independence in their day-to-day lives.

Despite the global economic headwinds of 2018, Emirates NBD has retained its position as a leading bank in the Middle East. As we announce a record annual net profit of AED 10 billion for the year 2018, we are confident that we will continue to deliver a solid performance.

VICE CHAIRMAN AND MANAGING DIRECTOR'S MESSAGE

HESHAM ABDULLA AL QASSIM

VICE CHAIRMAN AND MANAGING DIRECTOR, EMIRATES NBD

Emirates NBD delivered an excellent performance in 2018, achieving a record annual net profit of AED 10 billion and total assets in excess of AED 500 billion.

The Bank's strong performance along with its digital focus were recognized when Emirates NBD was named the 'Best Consumer Digital Bank'. Liv., the mobile only bank by Emirates NBD, was also named the 'Most Innovative Digital Bank in the UAE' for its lifestyle centred offering that has made it the bank of choice for the younger generation.

2018 marked the second year of Emirates NBD Group IT's technical transformation. During the first year, the focus was on restructuring the IT organization and operating model, alongside large-scale recruitment efforts. A year later, the focus shifted to delivering the Bank's core technical transformation to enhance its IT infrastructure, architecture, security, data and platforms.

On the results front, our net profits exceeded 10 billion dirhams for the first time in the Bank's history. This is a 20% increase in net profit underpinned by higher net interest income on the back of loan growth coupled with an improvement in margins.

In terms of strategic developments, we expanded our branch presence in both the Kingdom of Saudi Arabia and Egypt in 2018 and we have upgraded more of our branch network to be accessible to people of determination. We continue to lead the region in terms of digital banking and have expanded our contactless payment facilities to include Google Pay as well as launching exciting new savings products.

GROUP CEO'S MESSAGE

SHAYNE NELSON

GROUP CEO, EMIRATES NBD

2018 marked another successful year for Emirates NBD with a healthy increase in profit across all business units. We continue to advance the Bank's digital credentials, introduce exciting new products and convenient banking solutions that improve the banking experience for all our customers.

We delivered a record performance in 2018 as net profit increased by 20% to AED 10 billion, underpinned by higher income and a lower cost of risk. The Bank achieved another milestone as total assets surpassed AED 500 billion for the first time.

Emirates NBD remains at the forefront of retail banking innovation in the region, and we made significant progress in our digitisation agenda in 2018. We continued to enhance branch network with the opening of our first teller-less branch in Dubai, featuring convenient banking and payment solutions for customers. Under our #TogetherLimitless advocacy platform for People with Determination, disability-friendly access was extended across more than a third of our branch network. Traveller HD, an assistive technology designed to enhance the branch experience for customers with low vision, was introduced in four branches.

Furthermore, we continued to support the UAE government's drive towards smart services in 2018 by enhancing contactless payment capability with the introduction of Google Pay and similar services.

Liv., the country's first digital bank for millennials, became the fastest growing bank in the UAE, acquiring over 10,000 customers every month and securing a 7% customer share of the millennials market.

Our Wholesale Banking division continued to deliver strong results as we strengthened our digital capabilities with the roll-out of several new Transaction Banking products and services, such as online Value-Added Tax (VAT) and Excise payments on smartBUSINESS, the online banking portal for corporate customers, noqodi eWallet top up and eVoucher payments and cash deposits at Non-Bank Financial Institution (NBFI) partner locations.

INNOVATIVE PRODUCTS AND SERVICES

Highlights

Expo 2020

Our strategic partnership with Expo 2020 Dubai brings a unique opportunity to showcase our innovations in smart technology, digital banking and global best practice through our site-wide presence. In 2018, our efforts to deliver an exceptional Expo continued with ongoing investments in promoting awareness for the event, through themed consumer promotions across various products.

U by Emaar

Emaar and Emirates NBD joined forces to introduce a suite of co-branded credit cards that are loaded with features and leverage with features.

10 Million Reasons to Save

Campaign launched to encourage savings with Emirates NBD. The total reward was AED 10 million cash that encouraged audiences to bank with us.

Volunteer Programme Exchanger

Launched in November 13, 2018 to celebrate World Kindness Day, "Give In to Giving" is a 2-minute animated video produced under the auspices of the Bank's award-winning corporate volunteering programme, Exchanger. It promotes the spirit of volunteering and continues to garner a growing viewership of over 80 million, across key social media channels.

Gamification

Emirates NBD designed and launched multiple games to help create digestible and fun content. The aim was to generate awareness around the brand and its products and services, and ultimately convert gamers into customers. To date, 15 games were produced and played by over 110,000 unique players.

Live Streaming

In 2018, Live streaming at Emirates NBD kicked off. It all started with the very first initiative #AskEmiratesNBD which is live on Facebook, Twitter, Instagram, and Youtube. The objective of this initiative was to position the management of Emirates NBD as thought leaders in the market. The success of this initiative led to the birth of two more live shows, Snatch the Cash, and On this Day in the History of Emirates NBD.

ECONOMIC OVERVIEW

2018 was a volatile year for the global markets. Higher interest rates in the US, trade wars, Brexit, and increased geopolitical uncertainty took their toll on the equity and bond markets, and likely contributed to slower growth in key markets, including China, in the fourth quarter. Against this background, the GCC economies likely saw faster GDP growth and much improved fiscal balances in 2018, as oil prices rebounded to average over USD 70 per barrel (Brent oil).

Oil production was once again the main engine for growth in the UAE in 2018, with output rising to a record high of more than 3.3 million barrels per day by the end of last year. For the year as a whole, the UAE's crude oil production was nearly 3% higher than in 2017, and this helped offset a modest slowdown in the non-oil sectors of the economy. Overall, we estimate that the UAE economy expanded 2.4% in 2018, significantly better than the 0.8% GDP growth recorded in 2017.

However, the rebound in headline GDP growth masks underlying challenges faced by the services sectors in particular. Faced with softer private sector demand and a strengthening dollar for most of 2018, firms continued to discount selling prices, even as input costs continued to rise.

Increased supply, rising interest rates and little evidence of household income growth, also contributed to a further decline in residential real estate prices in both Abu Dhabi and Dubai.

Our outlook for 2019 is cautiously optimistic. The rebound in oil prices in 2018 has provided room for the government to increase spending this year. The federal government budget has been increased by more than 17% and the government of Abu Dhabi has announced additional stimulus as well. As a result, we expect headline GDP growth in the UAE to reach 3.1% in 2019.

STRATEGY 2019

Emirates NBD delivered another successful year, marked by record performance numbers, key milestones and numerous awards and accolades. In 2019, we will continue to focus on the following five building blocks:

1. Deliver an excellent customer experience (with a digital focus)
2. Drive core business
3. Run an efficient Organization
4. Drive international expansion
5. Build a high performing organization

Emirates NBD continues to lead the region in digital and innovation, delivering another year of digital and multi-channel milestones. In 2019, we seek to continue delivering top-of-the-line customer experience by testing new digital opportunities. We will focus on greater customer adoption of Liv.; UAE's first digital bank for Millenials and lifestyle banking platform; while continuing to develop the proposition to meet customer's requirements.

STRATEGY 2019

We continue to grow our balance sheet in a controlled manner, amid challenging market conditions, through diversification of income sources and expansion of our product and client base. This year, we plan to continue building our core business streams, by strengthening our market leadership in Liabilities, growing our market share in Cards, and driving profitable growth in our Wholesale Banking and Islamic franchise.

We remain committed to running an efficient organization through a number of planned initiatives, focused on streamlining the organizational setup and eliminating overlaps. In 2017, we committed an investment of AED 1 billion towards digital transformation of the bank, to be invested over the next 3 years. In 2018, we took a big step towards spearheading agility by launching our own private cloud platform and API platform and setting up agile working teams. In 2018, we embarked on our journey to use Robotics Process Automation (RPA) for developing a Digital Workforce for our banking operations. We established an enterprise platform for RPA and implemented ~23 solutions. In 2019, we will continue to scale up the automation pace to develop around 80 more solutions, including Artificial Intelligence to RPA, to move towards Intelligent Process Automation.

At an organization-level, we constantly strive to improve efficiency drivers by managing operating costs, ensuring a low cost of risk and optimally allocated capital.

On the international front, we took a big step in 2018, by entering into a definitive agreement to buy Deniz Bank; the 5th largest private bank in Turkey (subject to regulatory approvals). We also successfully commenced operations at three new branches in KSA; spread across Jeddah, Khobar and Riyadh; and opened our representative office in Turkey. In 2019, subject to regulatory approvals, we would work to conclude our acquisition of Deniz Bank, and take the necessary steps for a smooth integration. We aim to drive more business across our international locations; accelerating growth in Egypt and India, further deepening coverage in KSA, and developing our competitive niches in London and Singapore.

We remain committed to building a high performing organization by ensuring that performance models are aligned to the customer-oriented digital and agile agenda of the bank. Our new Learning and Development strategy is designed to digitally provide value-adding learning solutions for enhancing performance and career growth of employees and developing capabilities of leaders. We have developed and executed an updated nationalisation strategy to invest in and build careers of UAE Nationals so that they may take on more managerial and leadership roles.

Financial Overview

Emirates NBD delivered an excellent performance in 2018, achieving a record annual net profit of AED 10 billion. The Bank achieved another milestone as total assets surpassed AED 500 billion for the first time. The Bank's balance sheet remains healthy with a further strengthening in capital due to retained earnings, stable credit quality and liquidity. These results have enabled the Board of Directors to recommend a 2018 dividend of 40 fils per share.

Total income for 2018 amounted to AED 17,402 million; an increase of 13% compared with AED 15,455 million in 2017. Net interest income grew by 19% in 2018 to AED 12,888 million due to loan growth coupled with an improvement in margins. The net interest margin increased in 2018 helped by rate rises. Non-interest income declined 3% during the year due to lower income from investment securities as a result of an impairment provision on a private equity fund holding.

Costs for 2018 amounted to AED 5,620 million, an increase of 16% over the previous year due to higher staff and IT costs relating to the Bank's digital transformation and technology refresh. Costs were also higher as a result of international branch expansion, VAT, advertising and Expo 2020 Dubai sponsorship. The cost-to-income ratio at 32.3%, remains within guidance of 33% as we invest in digital capability and product enhancement to serve our customers.

During 2018 the Impaired Loan Ratio improved by 0.3% to 5.9%. The net impairment charge of AED 1,748 million is 22% lower than in 2017 helped by recoveries from legacy loans. This net provision includes AED 1,631 million of write-backs and recoveries, and together helped boost the coverage ratio to 127.3%.

Net profit for the Group was AED 10,042 million in 2018, 20% above that posted in 2017. The increase in net profit was driven by asset growth, higher margins and reduced provisions which helped offset an increase in operating costs.

Loans and Deposits increased by 8% and 7% respectively during 2018. The Advances to Deposits Ratio remains comfortably within management's target range at 94.3% and the Liquidity Coverage Ratio is at a healthy 195.3%. During 2018, the Bank raised AED 8.2 billion of term funding through a mix of public issues and private placements with maturities out to thirty years. Term funding represents 10% of total liabilities.

As at 31 December 2018, the Bank's Common Equity Tier 1 ratio is 16.6% and Total Capital ratio is 20.9%.

Retail Banking and Wealth Management

Overview

Retail Banking and Wealth Management (RBWM) recorded a solid performance in 2018, supported by growth in net interest income from liabilities. Fee income also grew over the previous year led by Cards and FX and represents 35% of revenue. The Liabilities book grew modestly over 2017 amid a challenging market, supported by strong on-ground acquisition and high visibility marketing campaigns. Customer advances rose during the year assisted by product enhancements and flexible interest rate pricing. Personal loan sales advanced significantly and new primary card sourcing was also up over the previous year with about half of new cards belonging to the premium card segment.

2018 saw the launch of the Emirates NBD U By Emaar Credit Card, offering earning and instant redemption of reward points across all Emaar outlets. The Emirates NBD Duo credit card bundle was launched for the Abu Dhabi market, the first dual credit card offering in the UAE. Priority Banking was enhanced with a pioneering tablet-based retail wealth advisory service while the emerging affluent Personal Banking Beyond platform grew acquisitions year-on-year.

Significant credit policy revisions, supported by the rollout of an automated Decision Management System, flexible interest rate pricing and product enhancements, helped build acquisition momentum for retail asset products. The Emirates NBD Skywards Savings Account and Debit Card programme was introduced, offering customers reward miles based on spends, travel and lifestyle benefits along with interest on their account balances. The Family Savings Account was launched for UAE National customers, enabling Emirati families to consolidate their banking relationships and benefit from preferential interest rates and privileges.

Liv., the country's first digital bank for millennials, became the fastest growing bank in the UAE, acquiring over 10,000 customers every month. Goals was launched to help customers save towards what they want. RBWM continued its digitization with the revamp of the innovative Fitness App, the enhancement of payment services with Google Pay and DirectRemit 60-second money transfer service was extended to the UK.

Emirates NBD's brand value continued to lead the market, increasing to USD 4.04 billion and confirming its position as the UAE's most valuable brand according to The Banker's annual brand valuation league table.

Distribution

Emirates NBD continued to evolve its branch network in the UAE with the opening of its first tellerless branch in Dubai, featuring efficient banking and payment solutions for customers. As part of the Bank's efforts to increase customer convenience, two new digitally enhanced branches were added to the network, evening banking was extended to cover over 40% of the network, and Friday banking was introduced in select branches.

Disability-friendly access was extended to more than a third of the Bank's branch network. Traveller HD, an assistive technology designed to enhance the branch experience for customers with low vision, was introduced in four branches, making banking more accessible for People of Determination.

The Bank also augmented its international footprint with the opening of three new branches in KSA.

Digital Innovation

RBWM continued to develop its digitisation agenda with the revamp of the Fitness App enabling customers to participate in fitness challenges, and the extension of the DirectRemit 60-second money transfer service to UK. Contactless payment capability was enhanced with the introduction of Google Pay and Paperless tablet-based sales sourcing was extended to cover all products including accounts, loans, cards and wealth.

Agile development squads were set up to build new services quickly and efficiently. The Mobile App was enhanced with the addition of new features on mePay, enabling easier peer-to-peer money transfers including instant Eidiya payments during festivals. The SkyShopper multi-partner e-commerce portal, available exclusively for Emirates NBD customers, was augmented with the addition of new partners and capabilities.

Customer Service

Customer service continued to raise the bar through proactive complaint management and outreach to about a third of the Bank's customer base. With the effective piloting of smart diagnostics-based customer queries and social media-based customer engagement, customer experience was revised in order to be simpler and quicker. Continuous service training academies, customer happiness days and a bank-wide customer service month programme enhanced the solid service culture across the organization, all resulting in high Net Promoter Scores (NPS) for all Retail Banking segments including Private Banking.

Personal Banking

Personal Banking had a robust year with revenue growth led by an improvement in liabilities balances. Fee income also grew, driven by FX and loan signup fees as well as from account related charges. The division continued to grow acquisitions of emerging affluent Personal Banking Beyond customers, improved its sourcing quality and customer mix, and increased cross-selling. The employee payroll business continued to strengthen with focus on the Bank's corporate client base as part of the onebank strategy. Several customer experience related initiatives were rolled out to improve customer engagement and loyalty, resulting in high NPS for the segment.

Priority Banking

Priority Banking strengthened its customer base with the launch of a retail wealth advisory platform, the first in the market, accompanied by a fully digital tablet-based customer on-boarding process. The InvestDaily online fund platform was launched to assist customers to invest instantly and conveniently while the Monthly Investment Plan was designed to provide a platform for systematic investing. The MetLife bancassurance preferred partnership achieved its planned targets for the year.

The segment continued its drive to offer superior customer services by setting up a new Priority Banking website, launching a more comprehensive pitch book, and carrying out advanced training for frontline staff. The segment retained high levels of customer engagement through a series of initiatives such as the Moments of Wow programme, Customer Happiness Days and several customer connect events like the FIFA World Cup, resulting in very healthy customer NPS scores.

Business Banking

2018 was a strong year for Business Banking with customer acquisitions growing modestly. The segment continued to provide comprehensive SME solutions for customers, advisory services for assets and trade as well as treasury, wealth, and transactional banking services. The division continued to exercise prudent lending policies, leading to higher recoveries and lower impairment allowances in 2018. Targeted campaigns were carried out to enhance cross-sell of FX products.

As part of its strategy to build stronger connections with SME customers, Emirates NBD Business Banking's first Emerging SME centre was opened in May 2018 located in Muraqabbat, Dubai. In order to increase customer engagement, roadshows were carried out during the year, complemented by Multaqa customer events and Trade Days, resulting in significantly higher customer NPS scores for 2018.

Private Banking

Private Banking's double-digit revenue growth in 2018 was achieved on the back of strong client acquisition as well as an improved business mix favouring annuity-income generating products. The product offering has been further enhanced through several best-in-class mutual funds and various tailored Structured Products. Among other strategic and client experience enhancing activities, the Bank introduced the next-generation start-up funding platform 'The LaunchPad'.

Asset Management and Securities

Emirates NBD Asset Management consolidated its position as one of the largest regional fund managers in 2018 by expanding its client base and introducing two new funds that attracted healthy investor inflow and good returns in a challenging market environment. Emirates NBD Asset Management won the prestigious award of the 'MENA Asset Manager of the Year' by MENA Global Investor.

In a very challenging year for most asset classes, the relaunched Saudi Equity Fund (previously MENA High Income Fund) offered investors double-digit returns. Furthermore, the Global Sukuk Fund and the MENA Fixed Income Fund crossed USD 250 million and USD 200 million in size, respectively, making them amongst the largest funds in their respective asset classes.

Emirates NBD Securities continued to enhance its strategic position by opening new markets along with migrating over half of its customer base to online trading. In addition, the business managed to further differentiate its services through improved customer service in line with Dubai Service Excellence Scheme standards. It was also adjudged the 'Best Retail Broker of the Month' by Nasdaq Dubai seven times in 2018.

Wholesale Banking

Corporate Banking

Corporate Banking (CB) delivered a strong performance through a combination of increased asset volumes, notably in Trade Finance and short term lending, and improving margins driven by higher rates. CB continued to broaden its product capability in both Transaction Banking and Treasury Sales in order to support the needs of a more diverse client base. The overall credit quality of the loan book remained stable due to selective underwriting and successful resolution of legacy impaired assets. International performance improved in 2018 across our Wholesale Banking businesses; United Kingdom, India and the Kingdom of Saudi Arabia, driven by an enhanced focus to capture the trade and investment flows between these key core markets and the UAE.

Financial Institutions Group

The Financial Institutions Group (FIG) plays a pivotal role in liaising with banks, Non-Bank Financial Institutions (NBFI's) and public sector entities, offering a full range of products extending from lending and transactional banking to treasury and capital market solutions. FIG's principal focus is to expand the Bank's businesses through entering new markets, developing the NBFI business and ensuring greater focus on capturing the trade and investment flows between Emirates NBD's present locations. In 2018, FIG further diversified its revenue mix with growth in both cash management and treasury solutions.

Investment Banking

Emirates NBD Capital (EMCAP), the Investment Banking arm of the Group, delivered a robust performance in 2018 backed by strong growth in the Loan Syndications and Debt Capital Markets segment. Meanwhile, Corporate Finance was able to execute multiple equity rights issues in the UAE. EMCAP continues to be one of the top ten players in the region's league tables covering GCC, Turkey, Asia and Africa.

Transaction Banking Services

Transaction Banking Services (TBS) recorded a strong performance in 2018 driven by Trade Finance and Cash Management solutions. During 2018, TBS launched several new products and services, such as the online VAT and Excise payments on smartBUSINESS, Noqodi eWallet top up and eVoucher payments and cash deposits at NBFI partner locations. Trade Finance capabilities were also enhanced in the UAE and international locations. As part of the Bank's digitisation programme, TBS is investing heavily in technology to offer enhanced capabilities and greater convenience to our customers.

Global Markets and Treasury

Global Markets and Treasury (GM&T) delivered an impressive growth in income and profitability in 2018, reinforcing its strong position from the preceding years. Treasury Sales recorded higher volumes in Foreign Exchange due to enhanced product capability and strong traction from Institutional and Corporate Clients. The Asset Liability Management business delivered excellent results by positioning the balance sheet to take maximum advantage of an increasing interest rate environment. The Trading desk delivered an outstanding performance despite challenging global market conditions, driven by Rates and FX and proactive risk management. The Global Funding Desk successfully raised AED 8.2 billion of term funding through a mix of public issues and private placements with maturities up to 30 years. As part of the Bank's digital drive, GM&T successfully implemented an upgraded front office system, significantly enhancing its readiness for new products and services across geographies.

Al Watani Al Islami

Al Watani Al Islami (AWAI) successfully supported the corporate and institutional coverage teams in UAE and KSA in 2018. AWAI continued to provide Sharia'h-compliant advisory services and solutions to Transaction Banking Services, Investment Banking and Global Markets & Treasury, empowering the finalisation of key transactions. With the opening of new branches in KSA, AWAI is currently focusing on launching various Sharia'h-compliant products in order to capture the growing demand for Islamic Banking in the Kingdom.

Emirates Islamic

Emirates Islamic (EI) delivered a strong set of results in 2018, recording its highest ever net profit growth, driven by a strong focus on sustainable profitability, through customer-focused and risk-based strategy and culture across the organization. EI reported higher total income compared to 2017. This increase was driven by higher lending activity and higher core fee income due to increased volumes of foreign exchange and credit card business. An enhanced collections drive coupled with an improved cost of risk during the year resulted in significantly lower impairments on financial assets compared to the preceding year.

EI continued to play a leading role in the growth of the Islamic banking sector in the UAE, through its focus on banking and technological innovations. Key highlights for 2018 include: The Nasdaq Dubai Murabaha Platform exceeding the mark of USD 100 billion in Islamic financing transactions, the launch of the "Emirati Experience" proposition, the implementation of Google Pay on the Bank's debit and credit cards, the inauguration of an Islamic repo product as an additional avenue for deploying and raising liquidity, etc. As an Islamic bank, Emirates Islamic has always endeavoured to support the community and those in need. In 2018, the Bank contributed AED 69 million to a range of charitable initiatives, aimed at supporting the less fortunate in necessities like health, food, education and shelter and food.

With an aim to provide its customers with a superior banking experience, EI optimised its branch and ATM/CDM network, launched a range of new products and services, enhanced its value proposition across segments and invested in the latest digital technology. The Bank also enhanced its risk function, spanning from policy adjustments, risk talent strengthening, organization restructuring, leading underwriting, monitoring and restructuring practices, through to risk-aware product design and other initiatives. This leads to a significant improvement to EI's financing portfolio.

EI continued to support UAE's Emiratisation agenda by achieving its nationalisation targets and investing in the development of UAE National staff. The Bank launched various new programmes like the "Future Relationship Managers" programme, aimed to fast-track the career growth of UAE nationals holding key positions in the organization.

Fitch re-affirmed Emirates Islamic's Long-Term Issuer Default Rating (LT IDR) of 'A+' with a Stable Outlook, Short-Term IDR (ST IDR) of 'F1', and a Viability Rating (VR) at 'bb-' for the fourth consecutive year.

Emirates NBD Egypt

In 2018, Emirates NBD Egypt continued its growth trajectory, delivering a 3.7% increase in net profit year-on-year. This was mainly driven by a strong 8% growth in balance sheet, as compared to 2017.

Corporate Banking (CB) was responsible for almost 95% of the growth, as the majority of the growth in assets came from an EGP 7.1 billion increase in loans. CB extended loans to customers across all key economic segments in Egypt such as power, oil and gas, infrastructure as well as food and beverage. Among other key highlights, CB helped pioneer the Egyptian Ministry of Investment's first initial public offering in over a decade, as the first in a series of planned public offerings. The Bank plans to introduce a structured finance desk to accelerate such transactions in the future.

Egypt's Retail Banking division continued to expand and optimise its branch network, product range and segmentation. Two key milestones included forming a long-term partnership with football club FC Barcelona and subsequently launching a range of co-branded cards in 2018. "5 Millions", a seven-month successful campaign encouraging customers to increase deposits was also concluded in August 2018, with customers winning weekly and monthly cash prizes and a grand prize of EGP 5 Million.

Emirates NBD Egypt continued to build on its Corporate Social Responsibility programme with the implementation of three major programmes in 2018: Education for Employment, which graduated more than 60 students; Misr El Kheir, a green housing project for youth employment; and Helm which trained more than 50 branch staff on etiquette while interacting with people with disabilities. In addition, Emirates NBD Egypt opened its first disability-friendly branch in "Makaram Ebeid". Emirates NBD Egypt staff completed over 15,000 hours of community service, while the Group's Exchanger volunteering programme reported more than 100,000 beneficiaries.

Following these successes, Emirates NBD Egypt remains committed to becoming a leading private sector bank in Egypt. In 2018, it focused on moving closer to this goal, particularly through continued, sustainable, and healthy balance sheet growth and the ongoing digitisation of its products, processes and services, combined with strong cost and risk management.

International

2018, has been a very busy year for our International branches on many fronts. We are pleased to advise that once again all International branches exceeded their revenue targets despite headwinds and macro-economic challenges.

Last year we reported the opening of our first branch in India and the approval of the regulator for three more branches in Saudi Arabia. The India branch in Mumbai surpassed expectations and managed to achieve bottom line profit within its first operating 12 months which far exceeded our expectations.

In Saudi Arabia we opened the three new branches in Jeddah, Khobbar and our second branch in Riyadh. A milestone being that we were the first foreign bank to open in Eastern province. Results from all three new branches during their first year have been very promising and augurs well for future growth. We are encouraged by our prospects in KSA and the government's expansionary programme that their 2030 strategy envisions.

The growing contribution from India and KSA will greatly assist us in fulfilling our international aspirations for greater organic growth through focus on cross-selling. Having India as one of our core markets is beneficial to all our operations as they all have significant trade flows with India.

London Branch had a record breaking year and also a year of many achievements, with all business lines beating revenue, profit and asset growth targets. It confirms our London business is minimally affected by the ongoing turmoil being created over Brexit disagreement. London branch staff should also be commended for successfully introducing General Data Protection Regulation (GDPR) and MiFID II during the year as both new regulations were very onerous to introduce into our systems and processes.

Singapore Branch under the dynamic leadership of our new CEO, also had a very busy year not only exceeding targets in revenues and profits but also being the beta site for introducing our new enterprise core banking system in November. Add to this migrations on three other key systems, which placed a lot of additional demand on the small support teams in Singapore who took to the task gallantly and the successful outcome of all migrations is testament to their contribution and hard work. In early December we also moved to new offices as we plan for future growth and had exceeded capacity in our old space.

Our China Representative office had an excellent year contributing many referrals that led to good business being booked in Singapore and Head Office. The growing China nexus with UAE will bring more opportunities from this office despite ongoing trade tensions. Indonesia Representative Office also contributed some good business but appetite for foreign currency business at realistic pricing is a challenge at present.

In 2018 we finally opened our Representative office in Turkey. This had been an objective for many years as Turkey is one of our key markets we sought to bolster this with local support and representation.

Information Technology and Operations

2018 marked the second year of Group IT's technical transformation. During the first year, the focus was on the restructuring of IT's organization and operating model, alongside large-scale recruitment efforts. A year later, the focus shifted to delivering the Bank's core technical transformation to enhance its IT infrastructure, architecture, security, data and platforms. Within 2018, Emirates NBD was the first bank in the region to launch its own private cloud and secondly, completing the world's most comprehensive Calypso upgrade to continuously enhance the Bank's treasury capabilities.

Several long-term initiatives were launched in 2018, a trend that will continue until 2020. These new initiatives included introducing a large-scale consolidation effort across international core banking operations, as well as a highly innovative API-centric architecture that will feature over 500 APIs by end-2019. A comprehensive programme to continuously enhance Emirates NBD's security capabilities and technologies was also launched, including ongoing internal campaigns to drive an increasingly security-vigilant workforce. Additionally, Emirates NBD is now well positioned to have a comprehensive, real-time Enterprise Data Platform (EDP) functioning in 2019, thanks to the foundations for this being put in place over 2018.

Transitioning to an agile delivery method, as used by the world's leading technology companies, also played a key role in fostering continued collaboration, innovation and speed in the delivery of new banking solutions with Emirates NBD's customer-facing departments. Following the initial agile trial in 2017, approximately 20 agile squads were launched over 2018 and who will now be continuously matured over 2019.

Looking forward, Group IT will continue to deliver its IT transformation over the course of next year. It will focus on its long-term strategic initiatives, while enhancing the bank's customer-facing channels to drive a consistent, omni-channel experience and ensure the bank operates with an increasingly sophisticated IT architecture. The IT transformation is scheduled for completion in 2020.

Tanfeeth

In 2018, Tanfeeth continued to deliver strong service excellence and cost-effective solutions to Emirates NBD Group and its end consumers by exceeding most of its financial and non-financial key performance indicators (KPIs), improving total operating expenses and delivering superior customer satisfaction.

Tanfeeth executed and implemented a highly successful cultural transformation in 2018, introducing new Purpose and Values to the organization. Our innovative Purpose and Values strategy was intended to set a clear and concise definition of the underlying force behind every action, initiative and goal we strive to achieve. Our new Purpose statement 'We are a community of passionate people creating a simple and seamless banking experience for every customer' highlights our continuous engagement and coordinated efforts towards this goal.

Our Purpose and Values strategy coexists with the 'Five Gears for Success' strategy which was introduced in 2017. The latter continues to drive further improvements in collaboration with other Group entities, in addition to enhancing customer experience, process optimisation, risk mitigation

and people management. The Purpose and Values strategy has been embraced and embedded in daily operations across all Tanfeeth units and continue to drive a high-performance culture towards achieving exceptional results.

Tanfeeth continued its focus on multiple projects throughout 2018 which aimed at providing customers with an improved experience while delivering process and cost efficiencies to the Group. Some of these projects include the Robotics Process Automation, Decision Management System, etc. As an acknowledgement to the continued process efficiencies Tanfeeth delivers to the Group, a total of 14 teams and 265 roles were transferred from Emirates NBD and Emirates Islamic to Tanfeeth in 2018. People are Tanfeeth's greatest resource, and we have continued to invest in staff through high impact initiatives in 2018, such as hiring of new staff with disabilities, incentives standardisation, nationalisation, mentorship and recognition programmes, career progression and rotation, and first aid training, etc.

Group Human Resources

With most of the initiatives undertaken by Group Human Resources (HR) in 2018 focused on supporting the Group's business and digital strategy, HR's scope for 2019 is to further improve employee engagement and productivity levels across all employee segments.

The Learning & Development function was reorganized in order to enhance overall digital learning capabilities, reaching out to more employees, empowering them to choose the programme of their choice and therefore 'learn at any place at any time'. The first steps to this direction were the launch of the Leadership Development Academy and the Management Development Academy, both implemented to offer world class digital learning solutions to various employee segments.

Aligned with the Group's focus on customer experience, Group HR launched a number of initiatives targeted at improving 'employee experience'. The employee as a new hire, learner, performer and talent was put at the center of this strategy, with related HR processes being redesigned to create a pleasant and eloquent employee experience.

The newly introduced points system for measuring Emiratisation by the UAE Central Bank enabled the Group's leadership to set stretch targets and continually track, not only the hiring of Emiratis, but also the further investing in capability building and growing careers. In pursuit of this target, more than 300 Emiratis were welcomed in 2018, while around 20% of managerial and leadership roles are currently available to Emiratis. In addition, Emirates NBD emphatically supports the need for further inclusion of Emirati women to leadership positions, as reflected by the fact that 35% of Emiratis in senior leadership roles are currently women.

Group Risk Management

Emirates NBD Group Risk Management has been proactive and instrumental in identifying key existing and emerging risks and risk drivers, measuring and managing such risks against the backdrop of the changing macro-economic conditions, and assessing and influencing the Group's forward-looking strategy.

Risk Governance

The Board Risk Committee (BRC), Board Audit Committee (BAC) and Board Credit and investment Committee (BCIC) are the main board level committees that oversees Group's risk management. In line with best practice, the Group continues to employ an enterprise-wide approach to risk management. The Enterprise and Regulatory Risk unit provides an overarching view of emerging risks and facilitates co-ordination between key risk functions, in order to minimise risks and achieve business objectives cohesively and effectively.

Credit Risk - Corporate Banking

Emirates NBD Group Credit continued to update the Group's credit policies and processes duly aligned with the Group's Business strategy and Group Risk Appetite Statement (RAS). Suitable new risk initiatives were undertaken to proactively manage the portfolio, improve operational efficiencies and enhance customer service.

Timely review of underwriting standards, strengthening of new client selection criteria, sector strategies and tightening of sanction terms and conditions including security requirements helped to maintain the quality of asset booking. Periodic stress tests and review of the portfolio were undertaken to identify and proactively manage emerging credit risks through a robust and well-established early alert process. The overall impact to Emirates NBD's corporate loan book on account of new NPLs and provisions have been significantly contained.

The Group follows the Central Bank of the UAE's criteria for asset classification and ceilings implemented earlier, ensuring delinquency classification and full compliance to provisioning requirements. The Financial Restructuring and Remedial (FRR) team continued its recovery efforts from delinquent customers to ensure efficient collections and to reduce the flow of new NPLs to minimise the impact of NPLs on the Group's performance.

The outlook for 2019 continues to remain cautiously optimistic with expectations of improved economic activity, duly supported by the upcoming Expo 2020 Dubai initiatives. The Group remains committed to supporting its customer franchise and executing its growth strategy to contribute to the overall growth of UAE's economy.

Review of Performance

Credit Risk - Retail Banking

Group Retail Credit proactively monitored portfolios and implemented strategies considering the external environment, focusing growth on selected segments. Portfolio management measures on existing customers of the Group continued and resulted in regular credit line reviews. The Group's risk strategy aims to support portfolio growth within acceptable risk appetite thresholds. This year, the Group continued to make progress in building balance sheet growth in retail assets. The Group has taken important initiatives in the recovery of non-performing advances, and impairments across products were stable. Credit losses in retail assets are within risk appetite. Financial performance of retail assets was robust, and all products generated healthy returns. Going forward, the Group will continue to focus on profitable and low risk segments to consolidate its retail banking portfolios and is investing in various technologies to enhance operational efficiencies in its credit underwriting streams.

Internal Rating Systems Development

The Group continued to enhance the use of internal rating models during the year. Data-driven risk assessment and decision models were used extensively across wholesale and all stages of retail customer credit lifecycle, namely acquisition, portfolio management, collections and recoveries. Internal risk quantification models and scorecards are monitored regularly.

The Group achieved IFRS 9 compliance on 1 January 2018 after the development and validation of IFRS 9 compliant models. The models cover all Emirates NBD Group entities and geographies as well as portfolios and are being used for the computation of Expected Credit Losses (ECL) as per IFRS 9 requirements since 1 January 2018.

Market Risk

Market risk is the risk of loss of income or market value of assets due to fluctuations in factors such as interest rates, foreign exchange rates, equity, commodity prices, or changes in volatility or correlations of market risk factors. The Group is exposed to market risks from its trading, client servicing and balance sheet management activities. The Group's market risk management strategy and market risk limits are established within the RAS and business strategies (taking into account macroeconomic and market conditions). Market risk limits are subject to regular review.

The Group Asset Liability Committee (GALCO) and Group Risk Committee (GRC) are the Senior Management Group that supports the Group in managing market risk. The GALCO and GRC establish the market risk management policy and methodology framework governing prudent market risk taking backed by measurement and monitoring systems and internal controls. GALCO and GRC are supported by Market and Treasury Credit Risk (MTCR) unit within Group Risk. MTCR is an independent risk management and control unit within Group Risk responsible for operationalizing the market risk management framework to support business conduct while ensuring adequate risk control and oversight.

Review of Performance

Capital and Portfolio Analytics

Group Capital and Portfolio Analytics team actively tracks the developments from the Basel Committee, Central Bank of the UAE and other regulators to implement the relevant requirements for a more resilient banking platform.

Group Model Validation is a specialist unit that performs the independent validation of risk models Group-wide. The unit is responsible for the implementation of a robust model governance framework to manage the material portion of model risk in the Group and its ongoing use. It also leads the technical validation of the risk models and recommends the decision on the use of the models to the Board.

Group Internal Capital Adequacy Assessment Process (ICAAP) and Stress Test unit is a specialised unit responsible for leading the exercise to assess Capital Adequacy under stress scenarios and submit the reports to the Central Bank of the UAE. This unit also conducts stress testing or ICAAP activities for overseas branches and the relevant authorities in these jurisdictions. For subsidiaries, the unit provides the technical leadership and oversight function and ensures that the submissions meet the Group standards.

Operational Risk

Group Operational Risk continues to work closely with the Group's business lines and subsidiaries to raise awareness of operational risk. Key risks across business units are identified and discussed at the GRC. A process is in place for the collection and reporting of operational risk data. The practice of conducting a risk review, as part of the 'New Product and Process Approval' (NPPA), prior to the launch of any new or amended product and running the Operational Risk assessment workshops (ORCA), form a cornerstone of the Group's operational risk management activity. This embeds a risk culture across the organization. Key Risk Indicators (KRI) are used to monitor the level of operational risks and issues in the Group.

Business Continuity Management

The Group has a robust business continuity management framework in place that allows quick reaction to any disruptive event to ensure continuity of operations. Business continuity plans are reviewed and tested at least annually across the Group, ensuring seamless service to the Group's customers and partners during any potential operational disruptions. The Group has established a new and modern work area recovery site to provide all required facilities to business and operational units in the event of regular office units being inaccessible. Group Operational Risk regularly conducts awareness programmes for all Emirates NBD employees.

Review of Performance

Group Compliance

Compliance risk is the risk of legal and/or regulatory sanctions, fines and losses associated with damage to the Bank's reputation as a result of its failure to comply with applicable laws, regulations, policies or good practices. Group Compliance is responsible for assisting the Bank's senior management in designing, implementing, delivering and supporting a framework to ensure appropriate measures are in place to mitigate these risks in all of the jurisdictions the Bank operates in.

Emirates NBD is regulated by the Central Bank of the UAE (CBUAE) and is required to comply with the laws and regulations of the UAE as well as those of all other jurisdictions that the Bank operates in (i.e. Egypt, India, KSA, Singapore and the UK). Additionally, Emirates NBD aligns its policies and procedures with international industry practices followed by our correspondent banks. The Bank has a good working relationship with its regulators and correspondent banks and continues to proactively visit its major correspondent banks, both at their premises as well as at industry forums to discuss progress on key compliance related initiatives. All relevant regulatory and compliance matters are regularly reported and discussed at the Group and Board risk committees.

In 2018, the Bank continued to enhance its compliance framework and infrastructure including policies, procedures, training, systems, controls and assurance processes. Some of the key initiatives undertaken by Group Compliance during the year include:

• A number of new policies / updates were developed and implemented during the year. These included a new Regulatory Communication Policy, an updated Tax Compliance Policy that added the Common Reporting Standard (CRS) requirements to the existing obligations under the Foreign Account Tax Compliance Act (FATCA) and an update to the Group Sanctions Policy in line with recent regulatory developments. As part of that process an educational brochure on Sanctions and Embargoes (in English and Arabic) was sent to customers and published on the Group's website.
• Continued progress on the Group Compliance Systems Roadmap. This included the roll out of a CRS systems module across the Group to automate the identification and annual reporting of relevant customers and improved systems scenarios, in line with international best practices, to detect money laundering and terrorist financing in the UAE, Egypt and KSA.
• Continued improvement in the content and delivery of the Bank's mandatory training with new on-line training modules introduced covering Sanctions, Anti-Money Laundering (AML), Counter Terrorist Financing (CTF), FATCA and CRS requirements. This included new modules for front office staff covering Customer Due Diligence (CDD), Politically Exposed Persons (PEPs) and the first Arabic versions of the Sanctions and FATCA / CRS training modules. Overall during 2018, more than 12,500 staff across the Group received the new on-line training, and a further 1,200 staff in front office and key decision making roles (including Executive and Senior Management) participated in face-to-face training sessions.
• Extensive ongoing engagement with the CBUAE in preparation for the Financial Action Task Force's (FATF's) Mutual Evaluation Review (MER) of the UAE as well as feedback on the implementation of a number of new laws and regulations.
• Emirates NBD is a founding member of the Middle East North Africa (MENA) Financial Crime Compliance Group (FCCG) and in 2018 hosted the inaugural regional forum. The event strengthened the collaborations on combatting financial crime and terrorist financing by bringing together leading MENA banks, prominent correspondent banks and the key financial crime agencies.

The Board and Its Committees

The Board

The Board of Directors for Emirates NBD Bank P.J.S.C. meets at a minimum capacity of six times per year and is comprised of nine prominent members of the local business community, all of whom are leaders in their respected industries. Hamad Khalaf Al Hosani, in his capacity as the Group Company Secretary, supports the Board by ensuring that regulatory obligations and corporate governance requirements are met. He manages the operations of the company's formal decision making, safeguarding that all appropriate procedures are followed.

As provided in Emirates NBD's Articles of Association, the Board of Directors is responsible for the overall direction, supervision and control of Emirates NBD Bank P.J.S.C. The Board's mandate covers the formal agenda for the overall strategy and oversight of the corporate structure, financial reporting, internal controls, risk management policies, as well as approval of the Annual Report and corporate dividends. The members of the Board comprise a suitable balance of executive, non-executive and independent Directors. Emirates NBD Bank P.J.S.C. defines as 'independent' the term of having no perceived or real conflicts of interest with any shareholder group or business partner.

Emirates NBD's Board of Directors includes:

Name	Role
H.H. Sheikh Ahmed Bin Saeed Al Maktoum	Chairman
Hesham Abdulla Al Qassim	Vice Chairman
H.E. Khalid Juma Al Majid	Director
Hussain Hassan Mirza Al Sayegh	Director
Buti Obaid Buti Al Mulla	Director
Shoaib Mir Hashem Khoory	Director
Mohamed Hamad Obaid Al Shehi	Director
Mohamed Hadi Ahmed Al Hussaini	Director
Ali Humaid Ali Al Owais	Director

Governance

The Board strongly promotes good corporate governance and integrity in order to achieve superior performance, while maintaining conformity with laws and regulations. The Board uses innovative tools in its governance and compliance systems to be in line with best corporate practices.

Board Committees

There are five Board Committees that assemble regularly to govern Emirates NBD Bank's activities on behalf of its stakeholders:

Board Executive Committee:

Name	Role
Hesham Abdulla Al Qassim	Chairman
Shoaib Mir Hashem Khoory	Member
Mohamed Hamad Obaid Al Shehi	Member
Mohamed Hadi Ahmed Al Hussaini	Member
Ali Humaid Ali Al Owais	Member

The Board Executive Committee acts on behalf of the Board on urgent matters arising between regular Board meetings when it is not possible to assemble a Board meeting. The Committee exercises the powers of the Board in the supervision and oversight of Emirates NBD Group affairs.

Board Audit Committee

Name	Role
Hussain Hassan Mirza Al Sayegh	Chairman
Shoaib Mir Hashem Khoory	Member
Mohamed Hamad Obaid Al Shehi	Member
Mohamed Hadi Ahmed Al Hussaini	Member

The Board Audit Committee assembles quarterly and is responsible for ensuring quality control in Emirates NBD Group's financial reporting and compliance processes. The Board Audit Committee oversees and monitors all the internal controls and systems in place for financial reporting, and ensures legal and regulatory compliance on financial matters. The Committee is responsible for framing policies on internal audit, overseeing financial reporting process, providing oversight and interacting with the Group's external and internal auditors.

The Board and Its Committees

Board Credit and Investment Committee

Name	Role
Hesham Abdulla Al Qassim	Chairman
Shoaib Mir Hashem Khoory	Member
Mohamed Hadi Ahmed Al Hussaini	Member
Ali Humaid Ali Al Owais	Member

The Board Credit and Investment Committee assembles as required in order to review and approve the Group's credit exposures and investment portfolios. This highly specialised Committee supports the Board Executive Committee and the Board Risk Committee in actively managing credit and investment risk. It oversees the execution of the Group's credit risk management and reviews the credit profile of material portfolios to ensure that credit risk rating is aligned with business strategy and risk appetite.

Board Risk Committee

Name	Role
Hesham Abdulla Al Qassim	Chairman
Hussain Hassan Mirza Al Sayegh	Member
Buti Obaid Buti Al Mulla	Member
Ali Humaid Ali Al Owais	Member

The Board Risk Committee shapes the overall philosophy and approves all risk management frameworks. The Committee also supervises the establishment and operations of risk management systems and receives regular reviews on their effectiveness. It is also responsible for Emirates NBD Group's corporate and risk governance framework, which includes reviewing, approving and monitoring various Group Risk Management Procedures, Group Risk appetite and the Overall Risk Profile. The Committee also supervises Basel II and III related activities. It assembles on a quarterly basis.

Board Nomination and Remuneration Committee

Name	Role
Buti Obaid Buti Al Mulla	Chairman
Mohamed Hadi Ahmad Al Hussaini	Member
Ali Humaid Ali Al Owais	Member
Mohamed Hamad Obaid Al Shehi	Member

The Board Nomination and Remuneration Committee reviews and guides Management on strategic Human Resources (HR) decisions that are related to executive succession planning, nationalisation strategy, top management appointments and remuneration policies. The Committee assembles on a quarterly basis and ensures that the Group's HR policies are practiced in a professional and ethical manner.

Management Executive Committee Team

The Management Executive Committee (EXCO) manages the Group activities in a manner consistent with the business strategy, risk appetite, remuneration and other policies set by the Board. The EXCO updates the Board periodically with all material matters including changes in business strategy and risk appetite, Group's performance and financial condition, breaches of risk limits or compliance rules, internal control failures, legal or regulatory concerns. EXCO assembles twice a month.

Management

Senior Management Team

Shayne Nelson - Group CEO

Abdulla Qassem - Group Chief Operating Officer

Surya Subramanian - Group Chief Financial Officer

Salah Amin - CEO - Emirates Islamic

Aazar Khwaja - Senior Executive Vice President, Global Markets and Treasury

Mohamed Berro - CEO – Emirates NBD Egypt

Jonathan Morris - Senior Executive Vice President and Group Head, Wholesale Banking

Manoj Chawla - Group Chief Risk Officer

Husam Al Sayed - Group Chief Human Resource Officer

Suvo Sarkar - Senior Executive Vice President and Group Head Retail Banking and Wealth Management

Kevin Flannery - Senior Executive Vice President and Group Head International

Financial Highlights

Growth in Recent Years

Revenues and Costs (AED Bn)

• Revenues: 11.9 (2013), 15.2 (2014), 14.7 (2015), 14.4 (2016), 15.5 (2017), 17.4 (2018) — +8% YoY growth
• Costs: 4.2 (2013), 4.4 (2014), 4.7 (2015), 4.9 (2016), 4.8 (2017), 5.6 (2018) — +16% YoY growth

Assets and Loans (AED Bn)

• Assets: 342 (2013), 363 (2014), 407 (2015), 448 (2016), 470 (2017), 500 (2018) — +6% YoY growth
• Loans: 238 (2013), 246 (2014), 271 (2015), 290 (2016), 304 (2017), 328 (2018) — +8% YoY growth

Profits (AED Bn)

• Pre-Provision Operating Profits: 7.7 (2013), 10.1 (2014), 10.5 (2015), 9.9 (2016), 10.6 (2017), 11.8 (2018) — +11% YoY growth
• Net Profits: 3.3 (2013), 5.1 (2014), 7.1 (2015), 7.2 (2016), 8.3 (2017), 10.0 (2018) — +20% YoY growth

Deposits and Equity (AED Bn)

• Deposits: 240 (2013), 258 (2014), 287 (2015), 311 (2016), 327 (2017), 348 (2018) — +7% YoY growth
• Equity: 36 (2013), 41 (2014), 45 (2015), 48 (2016), 54 (2017), 58 (2018) — +9% YoY growth

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

Financial Highlights

Growth in Recent Years

Sources of Operating Income (AED Bn)

• NII + NFI Total: 9.9 (2011), 10.2 (2012), 11.9 (2013), 14.4 (2014), 15.2 (2015), 14.7 (2016), 15.5 (2017), 17.4 (2018) — +8% YoY
• NII: 2.6 (2011), 3.3 (2012), 3.7 (2013), 4.9 (2014), 5.0 (2015), 4.6 (2016), 4.7 (2017), 4.5 (2018)
• NFI: 7.3 (2011), 6.9 (2012), 8.2 (2013), 9.5 (2014), 10.2 (2015), 10.1 (2016), 10.8 (2017), 12.9 (2018)

Return on Tangible Equity (%)

10.2% (2011), 9.9% (2012), 12.0% (2013), 17.4% (2014), 21.5% (2015), 19.6% (2016), 20.2% (2017), 22.1% (2018)

Capitalisation (AED Bn)

• T2, T1, T1%, CAR% shown from 2011 to 2018
• Total capitalisation grew from 28.9 (2011) to 55.6 (2018)

Balance Sheet Analysis

Assets (AED 500 bn):

• Loans: 66%
• Cash & Bank: 25%
• Investments: 4%
• Goodwill: 1%
• Other: 4%

Liabilities and Equity (AED 500 bn):

• Deposits: 70%
• Equity: 13%
• Debt: 9%
• Banks: 4%
• Other: 4%

Tangible Equity represents Tangible Shareholder's Equity excluding Goodwill and Intangibles and Tier 1 Perpetual Notes. Source: Emirates NBD financial statements

Awards and Accolades

Best Bank and Best Regional Bank Awards – Emirates NBD

• Emirates NBD won 'Best Bank in the Middle East' and 'Best Bank in the UAE' for the fourth consecutive year at the Euromoney Awards for Excellence in 2018
• Emirates NBD won 'Best Retail Bank in the UAE', 'Best Retail Bank in the Middle East', 'Best Digital Bank in Middle East' and 'Best Online Bank globally' by The Asian Banker
• Emirates NBD won 'Outstanding Global Private Bank – Middle East' by Private Banker International (PBI) Global Awards
• Emirates NBD won 'Best Digital Bank-UAE', 'Best Integrated Consumer Banking Site-UAE', 'Best Consumer Digital Bank-UAE', by Global Finance World's Best Consumer Digital Banks in the ME Awards 2018
• Emirates NBD won 'Best Customer Service - Retail Banking for 2018' and 'Best Auto Loan - Auto Cash Loan for 2018' by Banker Middle East UAE
• Emirates NBD won 'The Innovator' in the Middle East and 'Innovator Award for Paperless Personal Loan' by Global Finance 2018 Innovators Awards
• Emirates NBD won 'Middle East Retail Bank of the Year' and 'Best Use of Online Banking' at RBI 2018 Global Awards
• Emirates NBD was recognised for 'National Initiative' by Ministry of Presidential Affairs
• Emirates NBD Transaction Banking Services won 'Best Transaction Bank' and 'Best Cash Management Bank in the UAE 2018' by the Asian Banker as well as 'UAE Domestic Cash Management Bank of the Year 2018' by Asian Banking and Finance
• Emirates NBD won 'Best Private Bank in UAE 2018' by Global Finance
• Emirates NBD Group was recognised for leadership in innovation at the Dubai Quality Group's UAE Innovation Award
• Emirates NBD Capital won 'Best Local Investment Bank (UAE)' and 'Best Equity House (UAE)' awards at EMEA Finance Middle East Banking Awards
• Liv. by Emirates NBD won international accolades in first year of operations including:
  • 'Most Innovative Digital Bank-UAE' by Global Finance World's Best Consumer Digital Banks in the ME Awards 2018
  • 'Best Digital Bank in the Middle East' by The Asian Banker International Excellence in Retail Financial Services 2018 programme
  • 'Innovation in Financial services' by Arab Innovation Awards

Marketing, Social Media and Customer Engagement Awards – Emirates NBD

• Emirates NBD ranked UAE's top banking brand valued at USD 4.04 billion in The Banker's annual brand valuation league table
• Emirates NBD won 'Best CSR Team of the Year Award' at Gulf Sustainability and CSR Awards
• Emirates NBD won 'Customer Experience Team' and 'Business Change or Transformation Awards' at Gulf Customer Experience Awards

Asset management and Consumer Finance Awards – Emirates NBD Asset Management

• Emirates NBD Asset Management won 'Asset Manager of the Year' by 2018 Global Investor Middle East Awards 2018
• Emirates NBD Asset Management won 'Fastest Growing Asset Management Company Middle East 2018', 'Best Performing Multi-Asset Funds Middle East 2018' and 'Leading Sukuk Fund Middle East 2018' by Global Banking & Finance Awards 2018
• ENBD REIT won 'Most Outstanding Real Estate Investment Services in the UAE' by Wealth and Finance 2018 Awards

Emirates Islamic

• Emirates Islamic recognised as 'Islamic Personal Finance Provider of the Year' for second consecutive year by yallaCompare
• Emirates Islamic named 'Best Islamic Banking Brand' by Global Brands Magazine
• Emirates Islamic recognised as 'Best Islamic Bank' in the UAE by Global Finance
• Emirates Islamic won 'Best Islamic Card' and 'Best Mobile Banking app' by Banker Middle East Product Awards
• Emirates Islamic won 'Most Improved Branches' in Banks Benchmarking Index by Ethos Integrated Solutions

Emirates NBD Egypt

• Emirates NBD Egypt won 'Best Mobile Banking' in Egypt by International Finance Magazine
• Emirates NBD Egypt won four awards by 'The Banker' Africa including Best Retail Bank (Egypt), Most Innovative Bank, Best Online Platform and Best Digital Platform
• Emirates NBD Egypt's Transaction Banking unit was also named Best Cash Management Bank in Egypt for 2018 by 'The Asian Banker'

Tanfeeth

• Tanfeeth won International Business Excellence (IBX) 2018 Award in 'Strategy, Change and Transformation' category
• Tanfeeth won 'Best Contact Centre' by Customer Happiness Summit and Awards 2018
• Tanfeeth won 'Best Call Centre' by IQPC

Emirates NBD Branches and Contacts

Emirates NBD Group Head Office

Baniyas Road, P.O. Box 777, Deira, Dubai, UNITED ARAB EMIRATES

• Tel General: +971 4 225 6256
• Group Corporate Affairs: +971 4 609 4112
• Fax Group Corporate Affairs: +971 4 223 0031
• SWIFT Code: EBILAEAD
• Reuters Dealing Code: EBIU
• Website: www.emiratesnbd.com

Wholesale Banking Units

• Wholesale Banking Management – Deira Head Office
• Research – Deira Head Office
• Corporate Banking Group – Deira Head Office, Burj Al Arab, Sharjah, Abu Dhabi
• Financial Institutions Group – Deira Head Office
• International Banking – DIFC
• Transactional Banking Services – Deira Head Office
• Investment Banking – DIFC (Emirates NBD Capital)
• Al Watani Al Islami – Deira Head Office
• Global Markets and Treasury (Sales, Trading, Global Funding and Principal Investments, Assets and Liabilities Management) – Deira Head Office

Retail Banking Branches

Abu Dhabi

Abu Dhabi Main Branch, Al Muhairy Centre, Al Muroor, Al Najdah, Al Wahda, Bawabat Al Sharq Mall, Dalma Mall, Deerfield Mall, Electra Street, Musaffah, Tourist Club

Al Ain

Al Ain Main Branch, Al Ain Mall

Ajman

Ajman Main Branch

Dubai

Al Awir, Al Barsha, Al Faheedi, Al Karama, Al Maktoum, Al Muraqqabat, Al Qiyadah, Al Qouz, Al Qusais, Al Ras, Al Satwa, Al Souk, Al Twar, Bank Street, Burj Al Arab, Business Bay, Convention Centre, Deira, Deira City Centre, Dragon Mart, Dubai Airline Centre, Dubai Airport T3, Dubai Courts, Dubai Festival City, Dubai Mall, Dubai Marina, Dubai Marina Mall, Dubai Media City, Dubai Police Academy, Dubai Silicon Oasis, Emirates HQ, Emirates Mall Branch, Emirates Towers, Galleria, Green Community, Group Head Office, Hamriya, Hatta, Ibn Battuta Mall, Jebel Ali, Jumeirah Beach Road, Jumeirah Beach Walk, Jumeirah, Jumeirah Lake Towers, Karama Shopping Complex, Mall of the Emirates, Mamzar, Mankhool, Mirdif City Centre, Mizher Mall, Motor City, Nad Al Sheba, Oud Metha, Ras Al Khor, Rashidiya, Sheikh Zayed Road, Tecom, Umm Suqueim, Union Square Tower, Wafi Mall, World Trade Centre, Dubai Design District, Jafza 1, Mirdif Park Centre, Springs Souk

Fujairah

Fujairah Main Branch

Ras Al Khaimah

Ras Al Khaimah Main Branch, Ras Al Khaimah Mall, Ras Al Khaimah Corniche

Sharjah

Sharjah Main Branch, Al Nasseriya, Al Taawun, Sharjah City Centre, Sharjah Industrial Area, Matajer Al Quoz, Samnan Branch, Sharjah Airport, Sahara Centre

Umm Al Quwain

Umm Al Quwain Main Branch

Priority Banking Locations

Abu Dhabi

Abu Dhabi Main Branch, Al Najdah, Al Muhairy Center

Al Ain

Al Ain Main Branch

Ajman

Ajman Main Branch

Dubai

Deira, Galleria, Deira City Center, Al Muraqqabat, Dubai Festival City, Mizhar Mall, Group Head Office, Al Souk, Al Qiyadah, Jumeirah Beach Road, Oud Metha, Bank Street, Mankhool, Jumeirah, Sheikh Zayed Road, Green Community, Jebel Ali, Al Barsha