Investor Presentation Abu Dhabi at the Heart of the West-East - PowerPoint PPT Presentation

Investor Presentation Abu Dhabi at the Heart of the West-East Corridor March 2015 1

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 2

C ontents UAE, Abu Dhabi & Banking Sector NBAD Overview Strategy & Updates Financial Review 4Q / FY 2014 Appendix 3 3

UAE Economic Overview UAE Public Debt vs GDP ² • The United Arab Emirates comprises seven Emirates with Abu Dhabi being the largest contributor to its GDP Per cent (%) • Rating: Aa2 stable by Moody’s (unsolicited) 26.8% 26.2% 26.2% • Nominal GDP for 2013 estimated at USD 402.3bn, making it the 24.5% 23.6% 22.5% 2nd largest economy in the GCC (after Saudi Arabia) 1 • 6.06% of proven global oil reserves as of 2012 2 • UAE Banking sector offers the largest asset base within the GCC (NBAD is 4th largest bank by assets in the MENA region) • UAE banking sector is dominated by domestic players domiciled within the market 2010 2011 2012 2013 2014F 2015F Composition of UAE Real GDP by Sector (2013) 3 Public Debt in MENA Region (2013)² Per cent (%) Per cent (%) Government Other 131% Services 2% Financial 6% Institutions Oil & Gas 7% 86% 33% Trade 12% 44% 35% 26% Transport, 7% storage and 6% 3% communication Manufacturing 10% 9% Lebanon Jordan Bahrain Qatar UAE Oman Kuwait Saudi Real Estate Arabia Construction 12% 9% 4 4 1 IMF World Economic Outlook, 2013 2 Moody’s 3 National Bureau of Statistics, UAE

Abu Dhabi – The Capital Abu Dhabi Key Economic Indicators Abu Dhabi’s Aa2 government rating reflects our expectation that resources accumulated during the recent period of high oil prices and a prudent Credit Rating Aa2 (Moody’s) / AA (S&P) / AA (Fitch) budgeting of oil proceeds will mitigate the negative consequences of oil price volatility on the country’s fiscal and external accounts . Size Abu Dhabi accounts for 87% of UAE’s land area Abu Dhabi benefits from: (1) ample reserves derived from several consecutive 2.3mn 1 Population (2012) years of fiscal surpluses; (2) a sound policy framework; (3) political stability and (4)a very high per capita income. After consolidated spending stabilized in Nominal GDP (2013) USD 259.7bn 1 2014, the UAE’s fiscal breakeven oil price is just below $80 per barrel while its external breakeven oil price is around $64. At the same time, the GDP Per Capita (2013) USD 106,000 1 government’s large net asset position provides a transition period of several years to adjust to oil price cycles. Oil & Gas Moody’s, January 26, 2015 54.9% (nominal GDP, 2013) 1 as a % of GDP Crude Oil Approx 2.6mn bpd (2012) 1 -- Production The exceptional strength of Abu Dhabi’s net asset positions also provides a 95 bn barrels 1 ; Global ranking – 7 2 -- Reserves buffer to counter the negative impact of oil price volatility on economic growth and government revenues, as well as on the external account. Standard & Poor’s, October 3, 2014 Construction (9.0%), Real Estate (4.8%), FIs & Insurance (4.8%), Manufacturing (5.7%), Govt Services (4.6%), Other Principal Transportation and storage (3.7%), Wholesale and retail Contributors to Nominal trade (3.6%), Professional, scientific and technical (2.2%), GDP (2013) 1 Sovereign net foreign assets are the second-highest of all Fitch-rated Information and communication (2.3%), Public utilities sovereigns and rose by an estimated 27% of GDP during 2013 to 178.4% of (2.5%) GDP….These assets are equivalent to around five years of government spending and provide a substantial cushion…. Abu Dhabi “2030 Initiative by the Government of Abu Dhabi to develop and Fitch Ratings, August 15, 2014 Economic Vision” diversify the economy beyond oil revenues 1 Statistics Centre of Abu Dhabi 2 IMF 5 5

The UAE Banking Sector UAE Banking System Key Indicators 1 • As at 30 November 2014 there were a total of 49 banks USD Bn Total Assets Deposits Loans & Advances (23 locally incorporated banks and 26 foreign banks) 1 632 • 8 Islamic banks 572 511 472 • Strong capitalisation driven by cautious lending and healthy 387 311 323 348 380 internal capital growth 318 347 291 • Most domestic banks focus on the UAE and GCC region, while the largest banks have international presence • Regulated by the Central Bank of the UAE 2011 2012 2013 2014 GCC banking sector assets 3 UAE non-performing loans 2 Base Problem Loans Dubai World Problem Loan USD Bn Dubai Holding Problem Loan Dubai Holding Restructured 632 Dubai World Restructured 568 2.4% 2.2% 2.8% 0.9% 2.3% 0.8% 269 2.0% 1.7% 0.3% 0.4% 0.8% 189 189 7.2% 7.2% 6.8% 6.2% 5.8% 64 4.8% 5.0% 1.8% UAE Saudi Arabia Qatar Bahrain Kuwait Oman 2008 2009 2010 2011 2012 2013 2014F 2015F 1 UAE Central Bank Kuwait, Qatar, Oman as of November 30 th 2014 2 Moody’s UAE Banking System Outlook 6 Saudi Arabia & UAE as of December 31 st 2014 6 3 Individual Central Banks

Contents UAE, Abu Dhabi & Banking Sector NBAD Overview Strategy & Updates Financial Review 4Q / FY 2014 Appendix 7 7

NBAD at a Glance (1/2) Banker to the Abu Dhabi Government 70% owned by the Government of Abu Dhabi through ADIC (Abu Dhabi Investment Council) Strongest ratings of any bank in the Middle East & Emerging Markets at Aa3/AA-/AA- - ‘Safest Bank in the Middle East & Emerging Markets’ * Largest bank by assets in the UAE (AED 376 billion as of 31 st December 2014) Well diversified Financial Group – across businesses and geography - Largest international presence among the UAE banks Consistent profitability and value creation to shareholders Well positioned for growth from global economic recovery Clear and focused strategy for growth 8 * By Global Finance – Safest Bank in Middle East & Emerging Markets; Among the World’s 50 Safest Banks since 2009 8

NBAD at a Glance (2/2) Overview Incorporated in 1968 to serve as Banker to the Emirate of Abu Ras al-Khaimah Dhabi Umm al-Quwain Owned 70% 1 by Government of Abu Dhabi , via the Abu Dhabi Fujairah Ajman Investment Council (ADIC) Sharjah Listed on Abu Dhabi Securities Exchange (ADX) Dubai RAM R&I Credit Fitch Moody’s S&P (Malaysia) (Japan) Rating LT AA- Aa3 AA- AAA Abu Dhabi & Eastern A+ Region ST F1+ P-1 A-1+ P1 Outlook Stable Stable Stable Stable Stable Presence Domestic - 125 branches*, 590 ATMs+ across all the 7 emirates Overseas – 54 units*, 68 ATMs across 17 countries Financial Market Cap AED 66.1bn (US$ 18.0bn) Egypt Info (Price @ AED 14.00) London Channel Islands Geneva Jordan Paris Kuwait Bahrain Diluted EPS (FY 2014) 1.12 Washington, D.C. (based on FY’14 Shanghai Libya UAE financials) Oman Hong Kong PE Ratio 12.4 Sudan Malaysia Brazil Price / Book 1.9 Shares Issued (@ AED 1) 4,736.1 mn Free float: 30% * Including cash offices, NBAD Suisse & Malaysian subsidiary, offshore units & representative office in Libya & Shanghai + includes Cash deposit machines 1 as of 31 Dec 2014 9 9 2 Price as of 31 Dec 2014

NBAD vs Global banks NBAD has the strongest rating from Moody’s (Aa3 with a Stable outlook), within the selected peer group below; Indeed NBAD is the only bank within the selected peer group here, to be rated in the double-A category by all three major agencies with Stable outlook 120 UniCredit 110 100 Goldman Sachs 90 NBAD StanChart CDS (bps) Citigroup 80 SocGen Morgan Stanley 70 JP Morgan Chase BofA Commerzbank Deutsche Bank Credit Agricole 60 BNP Paribas Credit Suisse 50 ING Groep RBS Barclays Lloyds HSBC 40 UBS 30 Aa3 + Aa3 S Aa3 - A1 + A1 S A1 - A2 + A2 S A2 - A3 + A3 S A3 - Baa1 + Baa1 S Baa1 - Baa2 + Baa2 S Baa2 - Notes: X- axis represents the rating assigned by Moody’s. The ratings have been arranged from higher to lower based on the outlook assigned by Moody’s at each rating level. For example ‘Aa3+’ is the highest rating level for ‘Aa3’ rating category, where (+) refers to positive outlook. ‘Aa3+’ is followed by ‘Aa3S ‘ and ‘Aa3 - ’, where (S) refers to ‘stable outlook ‘ and ( - ) refers to ‘negative outlook’; CDS levels are for 26th January 2015; Source: Bloomberg 10 10

Contents UAE, Abu Dhabi & Banking Sector NBAD Overview Strategy & Updates Financial Review 4Q / FY 2014 Appendix 11 11