Investor Presentation March 2011 Disclaimer The information - PowerPoint PPT Presentation

Investor Presentation March 2011

Disclaimer 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. 2

Contents UAE economic overview ………………………………………………………………………….. Page 4 Abu Dhabi – The capital ………………………………………………………………………….. Page 5 The UAE banking sector …………………………………………………………………………. Page 6 NBAD at a glance …………………………………..……………………………………………… Page 7 - 8 Introduction A diversified business model ………………………..………………………………………….. Page 9 Core strategy ……………………………………………………………………………………….. Page 10 Competitive landscape …………………………………………………………………………… Page 11 Financial targets ………………………………………..……………………..…………………... Page 12 Highlights of 4 th Quarter/ FY 2010 results ………………………………................................... Page 13 - 15 Assets & liquidity, Investments …………………………….……………………………............... Page 16 - 17 Financial Loans and advances & Asset quality ………………………………………………..……………. Page 18 - 19 Highlights Funding profile & Capital resources ………………………………………………….…………... Page 20 – 21 Income statement and key parameters………………….………………………………………… Page 22 Outlook – 2011……..…………………………………………………............................................. Page 23 Conclusion Appendix……………………………………………………………………………………………….. Page 24 3

UAE economic overview UAE Overview UAE Overview A Federation of seven Emirates (Abu Dhabi being the capital) Headed by the President (Ruler of Abu Dhabi; Ruler of Dubai is the Vice President)  Rating: Moody‟s (Aa2 stable), S&P (AA stable) + , Fitch (AA stable) + Key Facts 2 nd largest economy in GCC and the Arab world (after Saudi Arabia) *   10% of proven global oil reserves which generates ⅓ of UAE‟s GDP UAE Banking sector offers the largest asset base within the GCC (NBAD is 3 rd largest bank by assets in the MENA region)   UAE banking sector is dominated by domestic players domiciled within the market + S&P and Fitch do not rate UAE; the ratings above reflect their ratings on the Emirate of Abu Dhabi * Nominal GDP rankings by IMF (2008) Source: Bloomberg, IMF, UAE Central Bank Key Economic Indicators UAE GDP (Real) Split by Sector Financial Agriculture 2009 Estimates New Govt Utilities UAE Singapore Malaysia services 2% (in US$ bn) Zealand 8% 1% 6% Real Estate Others (net) 8% Nominal GDP 249.0 117.8 177.1 191.5 1% Transport & Real GDP growth 1.3 -1.6 -2.0 -1.7 Crude Oil & Communica- (% change yoy) NGas tion 29% Exports of goods & 7% 167 28 259 171 services Imports of goods & 122 26 234 135 Trade & services Tourism Industry Construction 11% Population (mn) 5.0 4.3 4.8 27.8 16% 11% Source: IMF, World Economic Outlook Database - Oct 2008, IIF, UAE Central Bank, Ministry of Source: National Bureau of Statistics, Economic Report 2009 Economy, National Bureau of Statistics (UAE), NBAD Research (Exchange Rate: 1 USD = 3.673 AED) 4

Abu Dhabi – The Capital Abu Dhabi Key Economic Indicators Aa2 (Moody‟s) / AA (S&P) / AA (Fitch) Credit Rating Abu Dhabi accounts for 87% of UAE‟s land area Size Population 1.57mn (mid-2008) US$ 148.9bn Nominal GDP US$ 115,500 (2008) (3 rd highest in the world – IMF) GDP Per Capita Oil & Gas 49.4% as a % of GDP Crude Oil -- Production Approx 2.5mn bpd (2008) 92 bn barrels (Global ranking - 6 th ) (2008) -- Reserves Real Estate & Construction (18%), Trade, Services & Logistics (13%), FIs & Insurance (6%), Manufacturing Principal Contributors – (7%), Govt Services (6%) contribute to to Nominal GDP 50% Abu Dhabi‟s GDP Abu Dhabi “2030 Initiative by the Government of Abu Dhabi to develop Economic Vision” and diversify the economy beyond oil revenues Future major developments in line with Abu Dhabi Economic Vision 2030 covering all sectors for the next Future Developments 3 years have an estimated value of US$ 200bn (Abu Dhabi‟s Urban Planning Council) Top – Model of Louvre,Abu Dhabi Source: Department of Planning and Economy, IMF, UAE Central Bank, NBAD Research, ADCCI, Below – An artists impression of the Saadiyat Island development DCCI, DPE (All figures as of 2009, unless stated) 5

The UAE banking sector Latest Growth Banking Sector UAE banking sector Country 2008 2009 2010 est (2010) (YoY) Assets (USD bn) (in USD bn) Total Assets/ Liabilities 2 394.2 413.6 437.1 UAE Dec 5.7% 437.1 Foreign Assets 14.0% 13.7% 14.5% Nov 1.0% 373.9 S. Arabia Foreign Liabilities 19.5% 16.5% 16.9% Bahrain Nov (1.9)% 215.9 Deposits 3 248.3 267.5 285.8 Kuwait Dec 2.6% 146.8 Bank Credit 4 251.7 277.1 280.8 Banks & Branches 5 Qatar Dec 21.3% 156.0 National Banks (23) 714 795 867 Dec 10.2% 40.7 Oman Foreign Banks (28) 146 154 162 Employees in Banks 39,589 37,704 37,403 4.4% 1,370.4 GCC Estimate (excl auxiliary staff) Source: UAE Central Bank Source: Central Banks of respective countries 1 Net of provisions and interest in suspense 2 Excluding Inter-bank deposits 3 Excluding loans to banks, provisions & interest in suspense 4 Includes head offices, branches, pay offices, EBUs 6

NBAD at a glance  Banker to the Abu Dhabi Government  70% owned by the Government of Abu Dhabi through ADIC (Abu Dhabi Investment Council)  Flagship bank for Abu Dhabi  Consistent profitability and value creation to shareholders  Well positioned for growth from global economic recovery  Among the highest rated banks in Middle East and among the world‟s 50 safest banks *  Clear and focused strategy for growth  Largest international presence among the UAE banks * By Global Finance – 2010 & 2009 7

NBAD at a glance (cont‟d)  Incorporated in 1968 to serve as Banker to the Emirate of Overview Ras al-Khaimah (2) Abu Dhabi Umm al-Quwain (1)  Owned ( 70.48% ) by Government of Abu Dhabi , via the Fujairah (4) Ajman (1) Abu Dhabi Investment Council (ADIC) Sharjah (10)  Listed on Abu Dhabi Securities Exchange (ADX) Dubai (13) Moody‟s Credit Fitch S&P Rating AA- Aa3 A+ LT Abu Dhabi & Eastern Region (82) ST F1+ P-1 A-1 Outlook Stable Stable Stable  UAE - 113 branches * , 436 ATMs + in all the 7 emirates Presence  Egypt – 28 branches * , 44 ATMs  Other Overseas – 21 units * , 19 ATMs Egypt (28) London Channel Islands Geneva Jordan Market Cap AED 26.5bn (US$ 7.2bn) Stock Info Paris (Price @ AED 11.10) Washington, D.C. Kuwait Bahrain (Price as of Libya UAE Diluted EPS 1.09 28 Feb 2011; Oman (8) Hong Kong ratios based on Sudan (3) PE Ratio 7.7 FY‟10 financials) Price / Book 1.3 Shares Issued (@ AED 1) 2,392 mn Free float: 29.5% (Non-UAE – 2.4%) Most international bank in UAE • Including cash offices, NBAD Suisse subsidiary, offshore units & representative office in Libya + includes Cash deposit machines 8