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Page 1: Investor Presentation - NBAD UAE · PDF fileInvestor Presentation ... Leading Corporatefor Investor Relations –UAE –Middle East IR Society ... Down 8% sequentially due to government

1

Investor Presentation4Q / FY 2013

Page 2: Investor Presentation - NBAD UAE · PDF fileInvestor Presentation ... Leading Corporatefor Investor Relations –UAE –Middle East IR Society ... Down 8% sequentially due to government

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Introduction / Strategic Review4Q / FY 2013Alex Thursby, Group Chief Executive Officer

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Continued strength in 4Q / FY 2013 results

Net earnings of AED 4.73bn for FY 2013, up 9% y-o-y, primarily driven by higher net interest income and fee income; Sequential growth of 4% in 4Q13 vs 3Q13

Strong underlying year-over-year top line results as net fee and commission grew 20% to AED 1.85bn in FY 2013; 14% sequential growth in 4Q13 vs 3Q13

Loan growth of 12% y-o-y and 0.7% sequentially 4Q13 vs 3Q13

Deposits grew 11% in FY 2013 to AED 211bn despite being 8% down sequentially; Although CASA grew 30% in FY 2013 and 13% sequentially in the 4th quarter

NPL ratio at 3.16% in 4Q 2013; appears to have peaked at 3.55% in 1Q 2013

Robust capital & liquidity position maintained with the CAR at 18.2% and Tier-I ratio at 16.5%

Overall, underlying revenues have grown QoQ at solid rates, costs have grown but have a component of one-offs

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Q4 2013 – Awards & Accomplishments

Named “Safest Bank In the Emerging Markets” - Global Finance

Teamed up with INSEAD to launch “Jauan Al Dhaheri Scholarship”

“Best Private Bank in the UAE” – 5th Annual Global Private Banking Awards

“Leading Corporate for Investor Relations – UAE” – Middle East IR Society

“UAE Best Branch Performance” & “Best Customer Service Initiative” – Ethos Consulting, International Customer Service Institute

“Best Sukuk Fund” – Islamic Business & Finance Awards CPI Financials

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Strategic Update – Progress Report

Detailed 5-year Group Strategy developed and approved by Board in July

Global Wholesale Banking, Global Wealth and Retail & Commercial 5-yearBusiness Plans presented to the Board and approved in January 2014

Quick wins around building strong flow business in progress. Strategic Initiatives build out plans completed. Implementation under progress.

Operating model developed as part of business plans. Key strategic areas like client on-boarding and client servicing are under review and improvement

Building the Spine to a World Class Level – IT plans developed to support business plans and Shared services project under progress

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Our Commercial Banking business has a great deal of potential

Our Commercial Banking business today is relatively small and we have a small revenue market share of the UAE market across Mid-Corporate and SME segments

Across the country, we have a strong presence in Abu Dhabi but less so in Dubai which accounts for majority of Commercial banking wallet

We have a very large potential customer base, which we have not fully capitalised on to date

We have an opportunity to improve our level of fee-based revenue relative to industry best practice

2 Segments: 1) Local Corporates with International needs and 2) SMEs

“Hunter / Farmer Model” – Sales / Community Banker

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Expand UAE market presence Build-out selective GCC markets

Develop select franchise markets

2014 – 2015 2016 – 2018

• Become a dominant commercial bank in the UAE

• Selected efforts on Oman to meet regulatory requirements

• Focus on franchise markets (Egypt, Malaysia)

• Align with the overarching NBAD WEC strategy

• Selective targeting of GCC markets where opportunity exists

Strategic focus

We want to aggressively expand our UAE presence initially, then selectively develop our franchise and GCC markets

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To achieve our goal, we will deliver a 3-pillar value proposition

Geography Industry Product

• Presence across every corner of the UAE

• Ease of doing business wherever client business is

• Supporting SMEs in expanding abroad (Egypt, Malaysia)

• Understanding of the product requirements of the largest UAE industries

• RMs (Mid-market) or Service specialists (SME) that speak the “industry language”

• Best in class product offering where it matters most (Trade, FX, Cash mgmt)

• Products tailored to the needs of key industries (particularly Trading sector)

Customer value proposition

Focus areas• UAE focus mostly in Dubai

and particularly trade zones (downtown & Jebel Ali)

• Egypt, Malaysia 2016+

• Focus sectors: Trading, Oil & Gas, Petrochemicals, Chemicals, Contracting services, Retailers, Education & Healthcare, Food & Beverage, Other services

• Expansion of the Trading sector presence

• Identify investors

• All products excluding ECM, DCM, complex hedging

• Particular focus on flow products: Trade, FX, Cash management

Value proposition overview

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Our operating model – Focus on coverage in the key UAE locations / centralising operations

Sales & coverageMid-market & MNCs

Old Dubai & N.E.

Jebel Ali & New Dubai

Abu Dhabi, Al Ain, Oman

MNCs

Inbound sales & servicing (26 desks in branches)

Outbound sales

Pro

du

cts,

All

ian

ces

& N

ew i

nit

iati

ves

Sales & coverageBusiness & Professionals

Customer Service Unit (centralised)

Bu

sin

ess

inte

llig

ence

Cli

ent

del

iver

y &

ser

vic

e

Enablement (centralised)Frontline (hubbed)

Ris

k1

Op

erat

ion

s

Peo

ple

/ H

R (

incl

ud

ing

hir

ing

an

d r

ewar

ds)

IT

Commercial operating model

Separate front lines and Client mgmt. functions for wholesale and commercial Enablement function partly shared with wholesale

1. One centre in Dubai, separate for program lending

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Results DiscussionMichael A. Miller, Head of Investor Relations

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OPERATING INCOME / REVENUES

Up 6% sequentially and up 8% for FY13 vs FY12, driven by

higher NII and non-interest income

4Q/FY 2013 – Income statement highlights

OPERATING EXPENSES

Increased 14% sequentially and up 13% FY13 vs FY12

reflecting continued investment in our business

IMPAIRMENT CHARGES, net

Down 5% sequentially in 4Q and down 10% FY13 vs FY12 as

positive trends continue

NET PROFITS

Up 4% sequentially and up 9% for FY13 as operating income

grew, impairment charges decreased, while expenses were up

2,318 2,194 2,331

8,668 9,398

4Q'12 3Q'13 4Q'13 FY'12 FY'13

AED Mn+8%+1%

790 801 916

2,868 3,239

4Q'12 3Q'13 4Q'13 FY'12 FY'13

AED Mn+13%+16%

365 299 285

1,337 1,206

4Q'12 3Q'13 4Q'13 FY'12 FY'13

AED Mn-10%-22%

1,120 1,035 1,077

4,332 4,733

4Q'12 3Q'13 4Q'13 FY'12 FY'13

AED Mn+9%-4%

+6% +14%

-5%+4%

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ASSETS

Down 6% sequentially due mostly to deposit outflows; up

8% y-o-y as loans and deposits both grew

4Q/FY 2013 – Balance sheet highlights

EQUITY*

Up 4% sequentially and 11% y-o-y, due mostly to growth in

profits

* Includes AED 4bn Government of Abu Dhabi (GoAD) Tier-I capital notes

LOANS & ADVANCES, net

Up 12% y-o-y and up only 1% sequentially as lending

growth slowed in 4Q 2013

CUSTOMER DEPOSITS

Down 8% sequentially due to government deposit outflows

in 4Q; Healthy 11% growth y-o-y

301 322 327 345 325

Dec'12 Mar'13 Jun'13 Sep'13 Dec'13

AED Mn

-6%

31.1 31.2 32.2 33.3 34.7

Dec'12 Mar'13 Jun'13 Sep'13 Dec'13

AED Mn

+4%

165 162 173 182 184

Dec'12 Mar'13 Jun'13 Sep'13 Dec'13

AED Mn

+1%

190 206 219 229 211

Dec'12 Mar'13 Jun'13 Sep'13 Dec'13

AED Mn

-8%

+8% +11%

+12% +11%

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Revenues by Segment

Actual Contr % AED Mn % Actual Contr %

Global Wholesale 1,141 49% 1,123 51%

Global Wealth 219 9% 182 8%

Global Retail &

Commercial779 33% 735 33%

Head Office 192 8% 154 7%

Total Revenues 2,331 100% 2,194 100%

REVENUES

by SEGMENT

(AED Mn)

Q4 2013 Variance Q3 2013

18

36

45

37

137

2%

6%

6%

24%

20%

Revenues grew by 6% quarter-on-quarter across the board

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Actual Contr % AED Mn % Actual Contr %

Global Wholesale 966 68% 964 69%

Global Wealth 152 11% 127 9%

Global Retail &

Commercial429 30% 387 28%

Head Office (132) -9% (85) -6%

Total Operating

Profits1,415 100% 1,393 100%

OPERATING PROFITS

by SEGMENT

(AED Mn)

Q4 2013 Variance Q3 2013

2

25

41

(47)

22

0%

2%

Operating Profits by Segment

-55%

20%

All 3 major segments contributed to operating profits; Head Office was lower due to restructuring

11%

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Key Ratios

Ratio FY 2013 FY 2012

Efficiency

Diluted Earnings Per Share (EPS in AED) (restated for 2012) 1.04 0.95

Return on Equity(annualised; including Govt of Abu Dhabi Tier-I capital notes)

14.4% 15.1%

Net Interest Margin (NIM)(Based on average total assets and annualised NII for the period)

2.08% 2.19%

Cost – Income ratio 34.5% 33.1%

JAWS(Revenues growth less Expenses growth)

-4.5% -1.9%

LiquidityPercentage lent(Loans/ Assets)

57% 55%

Loans to Customer Deposits ratio 87% 86%

Solvency

Capital adequacy 18.2% 21.0%

Tier-I ratio 16.5% 17.2%

Leverage ratio(Assets / Equity)

9.4x 9.7x

Asset Quality

Non-performing loans ratio[NPLs / (Gross loans – Interest in Suspense)]

3.16% 3.40%

Specific Provision coverage(Specific Provisions / NPLs)

55.7% 53.4%

Collective Provision coverage(Collective Provisions / net Credit-risk weighted assets)

1.66% 1.54%

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Summary of Expectations – FY2014

Top line revenue growth 6% - 8% on reported 2013 results; Underlying growth rate higher excluding exceptional gains from 2013

Expense growth 12% - 15%; Continue to eliminate unnecessary costs and replacewith strategic investments

Net Income growth of 6% - 8%; Underlying growth rate higher

Provisioning expected to continue to reduce gradually after NPL’s appear to havepeaked at 3.55% in 1Q 2013

Maintain a strong and liquid balance sheet with solid capital adequacy ratios

Continuing simplification/flattening of organisation

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Corporate access links

Corporate Headquarters:

One NBAD Tower, Sheikh Khalifa StPO Box 4, Abu Dhabi, UAETel : +971-2-6111111Fax : +971-2-6273170Website : http://www.nbad.com

[email protected]

Michael MillerHead – Investor Relations

Abhishek KumatInvestor Relations

Khuloud Al MehairbiInvestor Relations

Ehab KhairiCorporate Communications (Media & PR)

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Appendix

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Composition of Non-Interest Income (AED mn)

Fee &

Comm, net

77%

Investments

income

9%

Forex

income

11%

Other

operating

income

3%

Operating Income & Expenses

Interest vs Non-Interest Income (AED mn)

2,318 2,510 2,363 2,194 2,331

67% 61% 71% 75% 71%

17% 16% 20% 21% 22%16% 22% 9% 5% 7%

4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Other Non-Int Inc Fee & Comm NII & Islamic Financing Inc

Operating Expenses (AED mn)

512 505 543 545 595

229 159 192 193

257

47 48 52 52 54 2 15 8 11 10

790 727 795 801 916

4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Staff costs Other general & admin expensesDepreciation Donations and charity

Key points

• Q4’13 Net Interest income of AED 1.7bn up q-o-q by 1.3% on slightly improved margins

• Q4’13 Non-funded income of AED 669mn up 20.7% q-o-q on higher fee and commission income and investment gains

• Net fee and commission income grew 13.9% in Q4’13 vs Q3’13 on higher fee income from investments & derivatives, asset management and brokerage activities

• Expenses of AED 916mn were higher by 14.3% q-o-q; these included some 1-time expenses on organisational restructuring

AED 669mn (Q4’13)

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Net profits (AED mn)

• 4Q’13 profits up 4% sequentially on higher operating income, but lower y-o-y by 4% due to non-recurrence of gains made from MoF related hedging strategies in 4Q’12; Overall, FY2013 net profits were up 9% on higher revenues and lower impairment charges

3,020 3,683 3,708

4,332 4,733

1,120 1,409 1,212 1,035 1,077

2009 2010 2011 2012 2013 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Cost to Income ratio (%)

• Cost-income ratio expected to be maintained under 40% going forward, as we continue to invest in our businesses

Return on Average Equity* (%)

* Annualised; Includes AED 4bn Tier-I capital and its annual dividend of AED 240mn

Net profits

CAGR 2009-2013: 12%

17.4%16.5%

16.3%15.1% 16.6%

15.1%

14.4%

10%

15%

20%

Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13

29.7%30.5% 32.5% 33.1%

31.2%

32.9%34.5%

20%

30%

40%

Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13

+9%

+4%

-4%

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Composition of Assets – AED 325bn

• Continue to maintain a very solid & liquid balance sheet structure

Key points

• Margins slightly improved during the quarter to 1.98% vsQ3; YTD margins are optically higher mainly due to thedenominator effect (lower average assets due to depositsoutflow in 4Q); Margins expected to remain under pressurewith abundant liquidity in the markets and increasedcompetition

• Optical loans to deposits ratio at 87%; emphasis onincreasing stable/term borrowings

• Regulatory loans to stable resources ratio well withinstipulated UAE Central Bank cap

• Framework ready to be compliant with regulations on(Basel-III) liquidity

Loans & Customer Deposits (AED bn)

Net Interest Margin* (%)

* NIM% (Qtr) - based on Net Interest & Islamic financing Income (annualised) & total average assets for the quarter; NIM% (Ytd) – based on total average assets for the period

Assets & liquidity

2.06%

1.97%

2.06%

1.95%1.98%

2.19%

1.97%2.05%

2.00%2.08%

4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

NIM% (Qtr) NIM% (Ytd)Cash &

balances

with central

banks

11%Due from

banks &

Reverse

repos

12%

Investments

16%

Loans

57%

Fixed assets

& Other

assets

4%

165 162173

183 184190

206219

229211

209

225

241 249

230

4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Loans Deposits Deposits + Term Borrowings

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Loans (net) - growth trend (AED bn)

CAGR 2008-2013: 10.5%

• Lending slowed in Q4 after growing strongly in the last 3 quarters; full year growth was strong at 11.7% after growing 3.2% in 2012

112 132 137 160 165 184

2008 2009 2010 2011 2012 2013

Loans (gross) by customer type

• Stronghold in Corp & Private sector & Government related businesses• Lucrative opportunities for short-term lending – trade-finance related

activities, albeit at lower margins

Loans (gross) by industry

• Diversified portfolio across economic sectors• Retail loan growth to remain challenging

Loans by geography

* Based on location of booking of the loan

Loans and advances

UAE

73%Europe

18%

GCC

2%MENA

(ex-GCC)

2%

Asia

4%USA

1%

Real Estate

17%

Govt

12%Construction,

5%

Energy

12%

Personal

loans for

consumption,

9%

Loans to

Individuals

for Business

6%

Banks & FI

22%

Trading

3%Transport

5% Services

3%Mfg

6%Others (incl

Agriculture)

0.1%

Govt, 12%12%

Public

Sector 24%25%

Corp/Pvt,

34%35%

Individuals,

15%16%

Banks, 15%12%

+11.8%

2012(AED 170.8bn)

2013(AED 191.0bn)

37%36%

+11.7%

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Provisions* & NPLs* (AED mn)

• NPLs ratio at 3.16% at end-FY’13 (3.4% at end-2012)* Provisions on loans & advances - excludes all other provisions* NPLs stated net of suspended interest

Provisions & NPLs

Key points

• Strong asset quality – one of the lowest NPL ratios amongstmajor UAE banks

• NPL ratio of 3.16% at end-FY’13 (3.3% Q3’13, 3.4% FY’12);NPLs declined in Q4 by AED 251mn; NPLs seem to havepeaked after reaching a high of 3.55% in 1Q’13

• Specific provisions at 55.7% of NPLs at end-FY’13(end FY’12 – 53.4%), in addition to collaterals

• Collective provisions at AED 2,975mn; continue to be fullycompliant with the Central Bank of UAE’s minimumrequirement of 1.5% for collective provisions, ahead of theeffective date (year end 2014)

5,518 5,650 5,8226,114

6,327

2,428 2,428 2,557 2,7712,975

5,781 5,961 6,121 6,264

6,013

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13

Total Provisions Collective Provisions NPLs

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NPLs (NBAD vs UAE Banks*)

* Average NPL ratio of ENBD, NBAD, ADCB, FGB (Source: NBAD, Published financials)* NPLs above as stated by the banks as impaired loans and advances

Provisions & NPLs (…cont’d)

Provision coverage (NBAD vs UAE Banks*) – 9M’13

• High provision coverage (in addition to substantial collaterals)* NPLs and Coverage ratios above as disclosed by the banks

6,264

35,898

5,900 5,109 98%

55%

105% 75%

NBAD ENBD ADCB FGB

NPLs Provisions Coverage (total) AED mn

1.25%

2.31%2.94% 3.40%

3.32%

9M’132.7%

7.4% 7.1% 6.7%

7.6%

9M’13

Dec-09 Dec-10 Dec-11 Dec-12

NBAD Average

Impairment charges & Addition to NPLs (AED mn)

• NPLs decreased by AED 251mn in 4Q’13 – first decline since 2008

Impairment charges (AED mn)

Q4 2013 Q3 2013

Charge for the period:

Specific provisions 265 217

Collective provisions 204 214

469 431

Recoveries & write-backs (196) (140)

Write-offs 12 7

Provisions for other impaired assets 0 (0)

Impairment charges, net* 285 299

365 322 301 299 285

162

-

129 214 204

203 180 160 143

(251)

4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Total Impairment charges, net*

Collective prov charges

Addition to NPLs

3.3% 14.1% 4.6% 3.9%

NPL ratio

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Investments – AED 53.5bn

• HFT – AED 2.7bn ; HTM – AED 3.3bn ; AFS – AED 47.5bn

HFT - Debt

3% HFT -

Equity &

Funds

2%

Held to

Maturity

(Debt)

6%

AFS -

Equity &

Funds

0.3%

AFS - Debt

89%

Investments by issuer

Investments by ratings

• 81% of Investment book is rated A & above

Investments by region

* Based on location of the issuer of the security or parent in case of SPV’s

Investments

Sovereign,

32.6%

Govt

Related

Entities,

22.9%

Banks & FI's

- Sovereign

Guaranteed,

3.5%

Banks & FI's

- Covered

Bonds,

10.3%

Banks & FI's,

28.9%

Corporate/

Pvt Sector,

0.9%

Supranatl,

0.9%

Europe,

24.0%GCC, 22.4%

MENA (ex-

GCC&UAE),

5.8%

USA, 2.2%

Australia &

Others, 7.3%

UAE, 38.3%AAA, 10.0%

AA, 47.7%

A, 23.0%

BBB, 3.9%

BB & below,

6.7%

Unrated -

Debt, 6.7%

Equity &

Funds, 2.0%

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Term notes maturity profile (AED 17.6bn – FY’13)*

Opportunistic in tapping the capital markets given favourable pricing terms; no immediate requirements to raise debt

* Represents the nominal AED equivalent amount outstanding

Key points

• Completed repayment of AED 5.6bn of MoF subordinated notes in 2Q’13

• Continue to diversify the funding base and extend the liability profile

Funding profile

Liabilities - AED 290bn

• Liabilities consist primarily of customer deposits• Stable funding mix over the years; emphasis on increasing contribution

of medium- and long-term funding

3,428 3,315

-

3,158 2,821 2,906

560

1,399

2014 2015 2016 2017 2018 2019 2020 >2020

(AED mn)

Due to

banks &

Repos 13%

Customer

deposits

73%

Term

borrowings

6%Subdebt

0.5%

Other

liabilities 8%

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27

Key points

• Q4 impacted by outflow of government deposits of AED 21bn reducing the YTD growth to 10.9%; strong growth in deposits gathered from corporate and retail sector

• Strong and encouraging growth in CASA of 13% in Q4 and overall growth of 30% in 2013; currently accounting for 28% of total customer deposits

• Substantial funding from government & public sector entities reflecting our long standing relationship with them

Deposits by customer type

• Substantial funding from government & public sector entities reflecting our long standing relationship with them

Govt, 22%36%

Public

Sector 19%

19%

Corp/Pvt,

31% 25%

Individual,

28%20%

Customer deposits

+10.9%

Deposits by type of accounts (AED bn)

• Steady and substantial growth in customer deposits; focus on growing CASA across the business segments

2012 (AED 190.3bn)

2013 (AED 211.1bn)

55% 41%

Deposits by geography

* Based on location of booking of deposit

UAE

73%

Europe

14%

GCC

2%MENA (ex-

GCC)

5%

Asia

3%

USA

3%

190 206 219 229 211

70% 72% 72% 71%63%

24% 22%23% 22%

28%7% 5% 5% 7%

9%

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13

CDs & Margin A/c's CASA Notice & Time

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Regulatory Capital resources (AED bn)

30.4 30.5 31.8

32.7 33.8

37.3

34.7 35.0 36.1

37.3

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13

Tier-I Capital Resources

Capital adequacy (%)

21.0%19.7%

18.5% 17.8% 18.2%

17.2% 17.3% 16.8% 16.1% 16.5%

8%

12%

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13

Total CAR Tier I%

Capital Resources (Basel-II*)

UAE CB CAR requirement

Minimum Tier-I requirement

Key points

• Capital Resources (Basel-II) of AED 37.3bn up 3.3% q-o-q and0.1% y-o-y; repaid MoF tier-2 capital AED 5.6bn in 1st half of2013

• Tier-I capital of AED 33.8bn, up 11.2% y-o-y on higherearnings

• Capital Adequacy ratio (Basel-II) at 31 Dec 2013 at 18.2% and16.5% on Tier-I well above the UAE Central Bank’s minimumrequirements of 12% and 8%, respectively

* Basel-II framework as adopted by UAE Central Bank

FY 2013 Tier-I Tier-II Total

as at Dec 2012 30,411 6,855 37,266

Net profits (year-to-date) 4,733 - 4,733

Dividends paid (Equity + Tier-I notes) (1,600) - (1,600)

Change in eligible Collective Prov 268 268

Change in eligible AFS reserve - 56 56

Change in Subdebt (incl MoF Repayment & Buyback of subdebt)

- (3,703) (3,703)

Others (incl shares under ESOP) 289 - 289

as at Dec 2013 33,833 3,476 37,309

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Results at a Glance

4Q'13 3Q'13%

growth4Q'12

%

growthFY'13

%

growth

Income statement (AED mn)

Net Interest Income (incl income from Islamic financing)

1,662 1,640 1.3% 1,557 6.7% 6,510 6.8%

Other Income 669 555 20.7% 761 -12.0% 2,888 12.3%

Revenue 2,331 2,194 6.2% 2,318 0.5% 9,398 8.4%

Expenses (916) (801) 14.3% (790) 15.9% (3,239) 12.9%

Operating Profits 1,415 1,393 1.6% 1,528 -7.4% 6,159 6.2%

Impairment Charges, net (285) (299) -4.7% (365) -22.1% (1,206) -9.8%

Prov for Taxes (54) (59) -9.3% (43) 26.0% (220) 67.0%

NET PROFIT 1,077 1,035 4.0% 1,120 -3.9% 4,733 9.3%

Balance Sheet (AED bn)

Assets 325 345 -5.8% 301 8.1% 325 8.1%

Loans & Advances 184 182 0.7% 165 11.7% 184 11.7%

Deposits & Others 211 229 -8.0% 190 10.9% 211 10.9%

Ratios %

RoE % 12.7% 12.6% 0.0% 14.7% -2.1% 14.4% -0.7%

NIM % 1.98% 1.95% 3bps 2.06% -8bps 2.08% -11bps

Cost / Income % 39.3% 36.5% 2.8% 34.1% 5.2% 34.5% 1.4%

JAWS % -8.1% -5.5% -15.4% -4.5% -4.5%

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Balance sheet

Balance Sheet (AED Bn) Dec'13 Sep'13%

growthDec'12

%

growth

Assets

Cash & Balances with

Central Banks35.1 51.9 -32.4% 54.9 -36.2%

DFB & Reverse Repos 39.0 50.8 -23.2% 33.1 17.8%

Investments 53.5 45.7 17.1% 35.6 50.4%

Loans & Advances 183.8 182.5 0.7% 164.6 11.7%Short term (<1 yr) 74.6 77.2 -3.4% 60.8 22.8%

Long term 109.2 105.3 3.7% 103.8 5.2%

Other Assets 13.7 14.2 -3.7% 12.4 10.5%

Total Assets 325.1 345.1 -5.8% 300.6 8.1%

Liabilities & Equity

DTB/Repos/ECPs 43.9 45.7 -4.0% 40.3 8.8%

Deposits & Others 211.1 229.5 -8.0% 190.3 10.9%CASA 58.1 51.4 13.1% 46.6 24.6%

Others 153.0 178.1 -14.1% 143.7 6.5%

Term Borrowings/Subdebt 23.7 20.9 13.5% 24.7 -4.3%

Short term (<1 yr) 3.5 3.8 -9.3% 2.8 22.4%

Long term 20.2 17.0 18.6% 21.9 -7.7%

Other Liabilities 11.7 15.8 -25.5% 14.1 -16.8%

Capital & Reserves 34.7 33.3 4.1% 31.1 11.4%

Total Liabilities & Equity 325.1 345.1 -5.8% 300.6 8.1%

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The information contained herein has been prepared by National Bank of Abu Dhabi P.J.S.C (“NBAD”). NBAD relies on

information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

This presentation has been prepared for information purposes only and is not and does not form part of any offer for sale

or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it or any part of it form the basis of or

be relied on in connection with any contract or commitment whatsoever.

Some of the information in this presentation may contain projections or other forward-looking statements regarding future

events or the future financial performance of NBAD. These forward-looking statements include all matters that are not

historical facts. The inclusion of such forward-looking information shall not be regarded as a representation by NBAD or

any other person that the objectives or plans of NBAD will be achieved. NBAD undertakes no obligation to publicly

update or publicly revise any forward-looking statement, whether as a result of new information, future events or

otherwise.

Disclaimer

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