investor presentation...hana al rostamani group head of personal banking karim karoui group head of...

INVESTOR PRESENTATION February 2018

2

Disclaimer

Please note that FAB pro forma consolidated financials at 31 December 2017 serve as the main basis of reference for our

Management Discussion & Analysis Report (MDA) and Investor Relations presentation.

Comparative figures have been reclassified where appropriate to conform to the presentation and accounting policies

adopted in the pro forma condensed consolidated interim financial statements.

FAB’s audited consolidated financial statements as at 31 December 2017 are prepared on the basis that FGB/NBAD merger was

declared effective on 1st April 2017 with FGB being the accounting acquirer as per IFRS 3. Therefore, these financials reflect

consolidation of NBAD since 1st April 2017 only, while prior period comparative financial information relates to FGB.

For further information, please refer to the Business Combination note of the reviewed consolidated interim financial statements.

The information contained herein has been prepared by First Abu Dhabi Bank P.J.S.C (“FAB”). FAB 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 FAB. 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 FAB or any other person that the objectives or plans of

FAB will be achieved. FAB undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a

result of new information, future events or otherwise.

Note: Rounding differences may appear throughout the presentation

Contents

Introducing FAB

Integration Journey

Operating Environment

Q4/FY’17 Financial Review Based on Pro forma financial information as of 31 December 2017

01

02

03

04

3

Appendix 05

4

Introducing FAB

Result of the historic merger between two iconic Abu Dhabi-based franchises

Largest bank in UAE and 2nd largest in MENA by total assets and market

capitalisation

Highest rated bank in MENA with Aa3/AA-/AA-1 (stable outlook)

Strong liquidity profile and robust capital ratios

Superior asset quality, cost efficiency and profitability metrics

Excellent progress made so far in integration journey; Set to realise

substantial synergy potential by 2020

1 - Moody’s/S&P/Fitch

5

FAB at a glance

Moody’s S&P Fitch RAM

(Malaysia)

R&I

Japan

LT Aa3 AA- AA- AAA A+

ST P-1 A-1+ F1+ P1

Outlook Stable Stable Stable Stable Stable

Credit ratings

19 Countries presence

(ex UAE)

103 Branches in UAE

603 ATMs/CDMs

• FAB is the result of the historic merger between two

iconic Abu Dhabi based franchises (FGB and NBAD)

• Largest UAE bank and 2nd largest in MENA by total

assets (AED 669 Bn) and market capitalisation

(AED 112 Bn)

• Offers extensive range of products and services via

market-leading Corporate and Investment Banking

(CIB), Personal Banking (PB) franchises and

subsidiaries

• Domestic network: 103 branches and 603 ATMs/CDMs

across all 7 emirates

• Global presence: 19 countries (excluding UAE)

Overview

• Affirmation of credit ratings by Moody’s, S&P, and Fitch

post merger completion on 3rd April 2017 is a powerful

testament to the strong rationale for the merger as it

enhances the combined bank’s business position and

credit profile

• FAB has the strongest combined credit ratings of any

bank in MENA at Aa3/AA-/ AA-1

All figures as on 31 December 2017

1 - Moody’s/S&P/Fitch

MIDDLE EAST & AFRICA

(MEA)

UAE

Bahrain

Oman

Qatar

Kuwait

Jordan

Lebanon

Libya

Egypt

Sudan

EUROPE & AMERICAS

(E&A)

UK

France

Switzerland

USA

Brazil

ASIA PACIFIC

(APAC)

India

Malaysia

Singapore

China/ Hong Kong

South Korea

6

FAB Share Profile

• Listed on Abu Dhabi Securities Exchange (ADX)

• Symbol: FAB

• Number of shares issued: 10,898 million1

• Market cap2: AED 112 Bn (USD 30.4 Bn)

• Foreign Ownership Limit: 25%

1 - Includes 42 Mn Treasury shares

2 - As on 31 December 2017

3 - Ownership structure as of 31 December 2017, based on shares outstanding (net of treasury shares)

Abu Dhabi Securities Market Index ADSMI 35.2%

Bloomberg GCC 200 financial Index BGCCFIN200 4.0%

Bloomberg EMEA Banks Index BEUBANK 1.9%

Index Weightings2

Strong shareholding structure3

Overview

ADIC 33.5%

Mubadala 3.7%

Other UAE companies and

individuals 52.1%

GCC (ex-UAE) 1.4%

Foreign (ex-GCC) 9.3%

7

Leading UAE and regional bank

1 - Company and Central Bank information as of latest reported for 31 December 2017, except for Banking Sector Assets for Bahrain and Oman (30 Nov 2017)

2 - Defined as the largest bank in the country by total assets

3 - Based on 31 December 2017; Source Bloomberg

734

615

375

212

189

82

UAE

Qatar

KSA

Kuwait

Oman

Bahrain

Banking sector assets1 (USD Bn)

National

champion2

3.0

2.6

3.6

1.1

0.5 (9M’17)

0.5

FY’17 Net Profit1 (USD Bn)

182

118

221

86

29

27.8

17.1

21.5

11.8

4.7

Total Assets1

(USD Bn)

Equity1 (USD Bn)

Market Cap3 (USD Bn)

30.4

29.3

31.8

14.3

5.8

2.8

Credit Ratings3 (Moody’s/S&P/Fitch)

Aa3 / AA- / AA-

A1 / BBB+ / A-

Aa3 / A / A+

Aa3 / A+ / AA-

NA / BBB / BBB+

Baa2 / BB / BBB-

34 (Sep’17)

4.3 (Sep’17)

Photo Photo Photo Photo Photo Photo Photo

8

Prominent Board and robust governance

H.H. Sheikh Tahnoon Bin Zayed Al Nahyan – Chairman National Security Advisor Chairman of Royal Group

H.E. Khaldoon Khalifa Al Mubarak

Board Member

CEO and MD of Mubadala Investment Company

Chairman of the Executive Affairs Authority of the Government of

Abu Dhabi

H.E. Sheikh Mohammed Bin

Saif Bin Mohammed Al

Nahyan

Board Member

Chairman of Abu Dhabi National

Insurance Company (ADNIC)

Chairman of

Risk Management Committee of

ADNIC

H.E. Sheikh Ahmed

Mohammed Sultan Al Dhaheri

Board Member

Chairman of Bin

Suroor Engineering

Vice Chairman of Abu Dhabi

National Hotels Company

H.E. Mohammed Thani Al-Romaithi

Board Member

Chairman of the Federation of

UAE Chambers of Commerce and Industry

Board Member of Al Etihad Credit

Bureau

H.E. Mohamed Saif Al Suwaidi

Board Member

Director General of Abu Dhabi

Fund for Development

Board Member of DP world and

Agthia

H.E. Nasser Ahmed

Alsowaidi

Vice Chairman of the Board

Chairman of

ETECH

H.E. Jassim Mohammed Al

Siddiqi

Board Member

CEO and MD of Abu Dhabi

Financial Group (ADFG)

Chairman of Shuaa and

Eshraq Properties

H.E. Khalifa Sultan Al Suwaidi

Board Member

Executive Director at the

Abu Dhabi Investment

Council (ADIC)

Board Member of UNB, ADIC and Barakah

One

Remuneration & Nomination

Committee Risk Committee Audit Committee

Board Management

Committee

Board of Directors

4 Board Committees

9

Talented and Experienced Senior Leadership

Abdulhamid M. Saeed

Group CEO

Zulfiqar Sulaiman

Group Chief

Operating

Officer, Group

Head of

International

Banking and

Group Chief

Integration

Officer

Hana Al Rostamani

Group

Head of

Personal

Banking

Karim Karoui

Group

Head of

Subsidiaries,

Strategy & Transformation

James Burdett

Group

Chief

Financial

Officer

P K Medappa

Group

Chief

People

Officer

Shirish Bhide

Group

Chief

Credit

Officer

Arif Shaikh

Group

Chief Risk Officer

Nurendra Perera

Acting

Group

Chief

Audit

Officer

Andre Sayegh

Deputy Group CEO &

Group Head of

Corporate & Investment

Banking

Fadhel Al Ali

Group

Chief

Customer

Experience &

Digital

Officer

10

Strategy built on core strengths

REGIONAL WEALTH ADVISOR OF CHOICE

• Access new high growth HNWI segments

• Use global network to expand product and service range

• Deepen existing relationships with increased cross-sell

• Bank of choice across key segments in Abu Dhabi, and enhanced market share in Dubai

& Northern Emirates

• Multichannel and ‘smart’ distribution model leveraging on digital solutions

• Leader in everyday banking anchored in payment solutions & cards

DOMINANT PERSONAL BANK IN UAE

TRUSTED PARTNER TO CIB CUSTOMERS

• Leverage scale and cross-sell to deepen client relationships and increase share of wallet

in UAE and abroad

• Preferred banking partner for government and GREs

• One-stop shop banking partner for large corporates and medium-sized businesses

• Wholesale-driven international strategy

• Reference bank for UAE multinational businesses

• Selective international presence and sharper focus on high potential growth markets

(APAC)

INTERNATIONAL BUSINESS BUILT AROUND UAE KNOWLEDGE AND RELATIONSHIPS

COMPLEMENTARY OFFERING

THROUGH SUBSIDIARIES

Our Vision:

Creating value for our customers, employees, shareholders and communities

to grow stronger through differentiation, agility and innovation.

11

Business Segments

Covers corporate and

institutional clients through

dedicated client segments

Offers Credit facilities, Global

Transaction Services,

Corporate Finance, Islamic

Finance and Global Markets

products to both UAE and

international clients

Targets retail, affluent, private

banking and SME customer

segments

Product offerings range from

day-to-day banking products

such as current accounts,

deposits, credit cards and loans

to more sophisticated

investment solutions and

business banking products and

services

Wide range of diverse

distribution and sales channels,

including mobile and internet

banking, branches and direct

sales agents

Manages National Housing

Loan program for Abu Dhabi

government

Complementary offerings

provided across real estate and

property management,

brokerage, conventional and

Islamic consumer finance

Centralised enablement

functions: HR, operations,

finance, strategy, investor

relations, risk management,

credit management, corporate

communications, legal &

compliance, internal audit,

procurement, treasury

operations, integration

management office and

administrative support

CORPORATE &

INVESTMENT BANKING PERSONAL BANKING SUBSIDIARIES HEAD OFFICE

48% 35% 7% 10%

Segment

Coverage and

offering

% FY’17

Group

revenue

Key financials at a glance Balance sheet & Income Statement - Based on Pro forma Financial Information

TOTAL ASSETS (AED Bn) LOANS & ADVANCES (AED Bn) CUSTOMER DEPOSITS (AED Bn)

TANGIBLE EQUITY (AED Bn) OPERATING INCOME (AED Mn) NET PROFIT (AED Mn)

12

649.1 660.4 624.6 644.1 669.0

Dec'16 Mar'17 Jun'17 Sep'17 Dec'17

334.4 345.2 321.3 328.3 330.5


379.2 393.9 377.3 378.9 395.8


71.9 68.0 70.7 73.3 71.1


5,102 5,188 4,686 4,611

5,049

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

2,854 2,926

2,562 2,605 2,822

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

Key financials at a glance Ratios - Based on Pro forma Financial Information

NIM – YTD (%) NPL RATIO (%) PROVISION COVERAGE (%) COST TO INCOME RATIO-YTD (%) (EX-INTEGRATION COSTS)

ROTE (%) RORWA (%) NON-INT INC / REVENUES (%) CET1 & CAR (%)

13

2.55 2.46 2.48 2.51 2.49

FY'16 Q1'17 H1'17 9M'17 FY'17

2.7 2.6

3.2 3.0 3.1


124.6 121.8 111.6 109.0

120.1


28.3 27.2 27.5 27.6 27.7

FY'16 Q1'17 H1'17 9M'17 FY'17

33.5 37.2

30.8 29.6 33.4

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

14.8 13.9 14.7 14.9 14.5

18.2 17.2 18.2 18.4 17.8


CET1 CAR

15.7 16.1 14.8 14.3 14.8

FY'16 Q1'17 H1'17 9M'17 FY'17

2.3 2.4 2.3 2.2 2.3

FY'16 Q1'17 H1'17 9M'17 FY'17

Contents

Introducing FAB

Integration Journey



01

02

03

04

14

Appendix 05

15

Integration exceeds expectations All planned milestones successfully delivered in 2017

2017 2018 Q1 2019

Finalisation of organisational structure and operating model

Harmonisation of Group policies and risk framework

CIB product and pricing harmonisation completed

Subsidiaries: Integration of real estate and property

management businesses completed, integration of islamic

finance subsidiaries on track; brokerage business

rebranded (FAB Securities)

Network optimisation

UAE network and channel external re-brand completed; in

progress across international locations

“Purchase Price Allocation” exercise is substantially

complete

o IT system integration on track; to be completed around the

end of 2018 (adequate planning, resourcing and tight risk

management)

o PBG product and pricing harmonisation

o Strategic review/ implementation of international value

proposition

o Ongoing network optimisation (UAE + international)

o Further process refinements/simplification and automation

Culture and change management

NBAD 3,002

NBAD 3,459

NBAD 3,696

NBAD 4,083

NBAD 3,897

FGB 1,446

FGB 1,766

FGB 1,856

FGB 1,947 FGB

1,848

FAB

4,448

5,225

5,552

6,030 5,745

5,274

27.9% 29.3%

28.6% 30.2%

28.3% CI ratio 27.0%

2012 2013 2014 2015 2016 2017

-5%

16

Integration exceeds expectations Merger benefits evident since 2016

G&A expenses BAU1

Cost reduction

= AED 756Mn

In AED Mn

1 Excluding integration/ merger transaction-related costs and amortisation of intangibles (merger-related)

-8%

1

17

Integration exceeds expectations Synergy financials

Increasing run-rate cost synergy target

Integration costs on track

• Synergies significantly ahead of target in 2017

• IT system integration around end of 2018 to

unlock substantial merger benefits in addition to

other initiatives (incl. process simplification,

automation, and network optimisation - UAE and

international)

• Raising 2020 full annual run-rate by 50% to

AED ~1.5Bn

~250Mn ~500Mn

~1Bn

~1.5Bn

2017 guidance 2017 actual 2020 initial target 2020 revisedtarget

385Mn 463Mn

330Mn 307Mn

2017 guidance 2017 actual 2018 est 2019 est

Initial phasing

Revised phasing

• Higher integration costs vs 2017 guidance reflect

acceleration of integration plan; estimated

phasing revised accordingly

• On track with one-time integration cost target of

AED 1.1Bn, to be fully absorbed by 2019

2017 2018 2019

35% 35% 30%

42% 30% 28%

Initial phasing

Revised phasing

2017 2018 2019 2020

25% 65% 85% 100%

33% 55% 85% 100%

In AED

In AED

1.1Bn

18

Laying the right foundation for long term

sustainable growth

1 - RoTE: Attributable profit (to equity shareholders net of interest on Tier1 capital notes) on average shareholders’ tangible equity (excl minority interests, excl goodwill

and amortisation charge on it thereof)

1 Growth-oriented culture Increased market share and share of wallet

2 Successful execution of

integration plan Full realisation of run rate synergies

3 One Bank, One brand,

One team Infrastructure integration

People integration

4 Sustainable cost

leadership ~25% Cost-to-Income ratio

5 Strong internal capital

generation capacity 16-17% RoTE1

>13.5% min. CET1

How we will measure our success by 2020

Contents

Introducing FAB

Integration Journey



01

02

03

04

19

Appendix 05

2nd largest economy in GCC USD 379 Bn 2017f Nominal GDP3

6th largest oil reserves ~95 Bn boe1

On path to strong recovery

Diversified and competitive

economy

20

UAE Economic Overview

Economic Structure

and Performance3 2016e 2017f 2018f

Real GDP Growth (% change) 3.0 1.3 3.4

Nominal GDP (USD Bn) 349 379 401

Inflation (CPI, % change) 1.8 2.1 2.9

General govt revenue (% GDP) 28.5 26.8 27.3

General govt expenditure (% GDP) 32.6 30.4 29.5

Fiscal balance (% GDP) (4.1) (3.7) (2.2)

Gross Debt (% GDP) 20.7 20.7 20.8

Diversified Economy2

1 - OPEC; boe (barrel of oil equivalent) (December 2016) 2 - Federal Competitiveness and Statistics Authority, 2016 Nominal GDP

3 - IMF World Economic Outlook, October 2017 4 - WAM

5 - Others include Agriculture, Utilities, Transportation, Communication, Government and Other activities

Construction and Real Estate

17%

Mining and quarrying

17%

Manufacturing 10%

Trade, Restaurants &

Hotels 15%

Finance 10%

Others5 31%

679

379

166

118

72

34

Saudi Arabia

UAE

Qatar

Kuwait

Oman

Bahrain

Nominal GDP3 (USD Bn)

UAE federation established in 1971

Comprising 7 Emirates

Estimated population3 (2016): 9.9 Mn

UAE

83%

non-oil sector contribution

to nominal GDP2

16th

most competitive

economy (WEF 2016/2017)

Real GDP Growth3

1.3% 3.4% 2017f 2018f

Increase in 2018

Federal Budget4

+5.6%

56.8

45

50

55

60

Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18

LIBOR 3M EIBOR 3M E-L Spread (RHS)

FED rate hikes

21

Other Macro Indicators

2017f Debt/GDP1 (%) UAE PMI in Expansionary Territory2

AED 155 Bn Net Deposit Surplus as of Dec’173 Libor-Eibor spread has tightened

1 - Source: IMF World Economic Outlook – October 2017

2 - Source: Markit Economics, UAE Purchasing Manager Index is a composite indicator designed to provide an overall view of activity in the UAE’s non-oil private sector economy.

The indicator is derived from individual diffusion indices which measure changes in output, new orders, employment, suppliers’ delivery and stocks of goods purchased

3 - UAE Banking Indicators have been adjusted retrospectively in order to reflect accounting adjustments related to the National Housing Loan Program

17.0 20.7 27.1

44.5 54.4

90.6

SaudiArabia

UAE Kuwait Oman Qatar Bahrain

155

90%

75%

80%

85%

90%

95%

100%

105%

110%

(100)

(50)

0

50

100

150

200

Dec'0

4

Dec'0

5

Dec'0

6

Dec'0

7

Dec'0

8

Dec'0

9

Dec'1

0

Dec'1

1

Dec'1

2

Dec'1

3

Dec'1

4

Dec'1

5

Dec'1

6

Dec'1

7

AED Bn

Net Deposit Surplus/ Deficit L/D ratio, net

Major contributor to UAE GDP1 USD 198 Bn 2016 Nominal GDP

4th Highest GDP per capita

in the world3 USD 68,3371

(2016)

Highest ratings in MENA Aa2 / AA / AA Moody’s / S&P / Fitch

On clear path to recovery and

economic diversification

22

Abu Dhabi – The Capital

Ajman

ABU DHABI

Umm al Quwain Ras al Khaimah

Fujairah

Ajman

Dubai Sharjah


to nominal GDP1

87% of UAE land area1

Estimated population1 : 2.9 Mn

1 - Abu Dhabi 2017 Bond Prospectus, Statistical Year Book of Abu Dhabi, (SCAD) July 2017, preliminary estimates

2 - IMF quoted by Reuters, November 2017 3 - IMF, 2016 (assuming Abu Dhabi is a separate country)

4 - Others include Agriculture, Utilities, Transportation, Communication, Government and Other activities

5 - Abu Dhabi Economic Vision 2030, SCAD

Economic Structure

and Performance1 2014 2015 2016

Real GDP growth (% change) 4.4 4.9 2.8

Nominal GDP (USD Bn) 261 212 198

Inflation Rate (CPI, % change) 3.2 4.3 2.0

Revenue/ GDP 39.6 34.1 36.2

Expenditures/ GDP 39.4 39.4 39.8

Balance/ GDP 0.2 (5.3) (3.6)

On track to meet Plan Abu Dhabi 2030 targets

Construction and Real Estate

19%

Mining and quarrying

28%

Manufacturing 7%

Trade, Restaurants &

Hotels 7%

Finance 10%

Others4

29%

Nominal GDP breakdown by sector

41% 51%

64%

2005 2016 2030 Target

Oil GDP Non-Oil GDP

Target real GDP 5

72%


to nominal GDP1

Real GDP growth2

0.3% 3.2% 2017f 2018f

1,472 1,563 1,627

+29 +57 +0.1 +27 +25 +23 +20

-22

+3

-7

1,466 1,554 1,581

+6 +16 +55 +17 +3 +30

-0.4

+7

-6 -13

De

c'1

5

Go

vern

men

t

Pub

lic S

ecto

r/G

RE

s

Priva

te S

ecto

r

NB

FI

No

n-R

esid

en

ts

De

c'1

6

Go

vern

men

t

Pub

lic S

ecto

r/G

RE

s

Priva

te S

ecto

r

NB

FI

No

n-R

esid

en

ts

De

c'1

7

28% 27%

23

Sound and highly capitalised banking sector

Figures in AED Bn Dec’17 Dec’16 YoY

Total Assets, net2 2,586 2,485 4.1%

Loans and Advances, net2 1,472 1,446 1.8%

Customer Deposits 1,627 1,563 4.1%

LDR2 90% 93% -300bps

Lending to Stable Resources Ratio3 84.6% 86.2% -160bps

CAR4 18.9% 18.9% -

Tier 1 capital4 17.4% 17.3% +10bps

• UAE banking sector comprises 48 banks (22 local, 26 foreign); top 4

local banks hold around 62% of system loans and deposits

• UAE CB introduced in May 2015 a glide path on Liquidity Coverage

Ratio (LCR) in the context of gradual migration to Basel III regulatory

framework. The minimum for the current year is 90%

• UAE CB Basel III capital guidelines effective from 1st Feb 2017 with min.

CET 1 set at 7.0%; full implementation by 2019

1 - Based on Dec’17 Financials of 10 largest UAE listed banks by Total Assets

2 - Source: UAE Central Bank, UAE Banking Indicators have been adjusted retrospectively

in order to reflect accounting adjustments related to the National Housing Loan Program

3 - Total advances (net lending + net financial guarantees & stand-by LC+ Interbank placements

more than 3 months)/ sum of (net free capital funds + total other stable resources)

4 - Basel 2

CUSTOMER DEPOSITS LOANS & ADVANCES (NET)

Key Highlights UAE Banking Sector Key Indicators2

Movements in Customer Deposits and Gross Credit by Sector2 (AED Bn)

Cu

sto

mer

Dep

os

its

G

ross C

red

it

+4.1% +6.2%

+1.7% +6.0%

Dec’16 Dec’17 Dec’15

FAB has a Dominant Market Position1

Contents

Introducing FAB

Integration Journey



01

02

03

04

24

Appendix 05

25

Q4/FY’17 Key Performance Highlights

• Resilient performance in transitional year

• Reported Net Profit at AED 10.9Bn, down 4% yoy; EPS at AED 0.96

• Adjusted Group Net Profit at AED 11.5Bn, broadly in line with 2016

• Delivering top returns for our shareholders in year 1

• Proposing cash dividends of AED 7.6Bn

• DPS of AED 0.70, 11% higher than 2016 pro forma

• Integration journey exceeds expectations

• Synergies significantly ahead of target in 2017

• Raising cost synergy 2020 annual run-rate target by 50%; Integration costs firmly on track

• Robust balance sheet and healthy fundamentals

• Capital position comfortably in excess of regulatory requirements

• Strong liquidity position, healthy asset quality and solid profitability

• Looking ahead with confidence

• Macro and business tailwinds to support 2018 performance

• FAB positioned well to achieve successful integration and capture future growth opportunities

% FY’17 FY’16 YoY (bps)

C/I ratio (ex-integ costs) 27.7 28.3 -59

CoR (bps) 69 76 -7

NPL ratio 3.1 2.7 41

Provision coverage 120.1 124.6 -451

L/D ratio 83.5 88.2 -472

RoTE 14.8 15.7 -83

CET1 ratio2 14.5 14.8 -32

26

Resilient performance in transitional year Financial Highlights

In AED Mn FY’17 FY’16 YoY %

Revenues 19,533 20,302 -4

Operating expenses (5,875) (5,922) -1

BAU1 costs (5,274) (5,745) -8

Integ/ merger transaction-related costs (463) (178)

Amort. Intangibles (merger-related) (138) -

Impairment charges (2,384) (2,664) -10

Reported Net profit 10,915 11,322 -4

Adjusted Net profit 11,517 11,500 -

EPS (AED) 0.96 1.0 -4

DPS (AED) 0.70 0.63 +11

FY’17 vs. FY’16

Key ratios

• Revenue 4% lower due to softer market conditions and

portfolio optimisation

• BAU1 Operating costs down 8% when excluding one-off

integration/merger transaction-related costs and

amortisation of intangibles identified as a result of PPA

exercise

• Impairment charges 10% lower on the back of lower

collective provisions and higher write-backs

• Reported Net Profit down 4%, yet broadly in line with

2016 on Adjusted basis

• DPS up 11%

• Industry-leading C/I ratio

• Healthy asset quality and improved coverage qoq due to

PPA

• Strong liquidity position remains competitive strength

• Solid returns, above full year guidance

• Capital position as D-SIB comfortably in excess of

regulatory requirements under Basel III

1 BAU – Business as usual

2 CET1 ratio as per UAE CB’s Basel III framework (without considering the transitional arrangements for 2017); 2016 ratio as per UAE CB’s Basel II framework

FY’17 GUIDANCE FY’17 ACTUAL

LOAN GROWTH Low single digit negative -1% Strong business momentum in second

half, offset by asset optimisation and PPA

adjustments

CORE REVENUE1 Flat -4% Revenues impacted by margin

compression, subdued loan market and

lower trade activity

C/I RATIO (EX-INTEGRATION COSTS)

~28% 27.7% Disciplined cost control and substantial

synergy realisation, above expectations

COST OF RISK 70-75 bps 69bps Cautious risk management and healthy

asset quality

ROTE2 ~ 14% 14.8%

(15.5% ex-integ.costs) Solid returns in transitional year

27

Resilient performance in transitional year We have met or exceeded most elements of financial guidance

1 - Excluding property-related one-offs and AFS investment gains

2 - Return on Average Tangible Equity, annualised; based on attributable profit to equity shareholders' excl Tier 1 notes coupon (AED 465Mn) and amortisation of intangibles

FGB 2.5

FGB 3.0

FGB 3.9

FGB 4.5

FGB 4.5

NBAD 1.4

NBAD 1.7

NBAD 1.9

NBAD 2.3

NBAD 2.3

FAB

3.9

4.7

5.8

6.8 6.8

7.6

2012 2013 2014 2015 2016 2017

28

Delivering top returns for our shareholders in year 1

In AED Bn

• Board recommends cash dividends of AED 7.6Bn, highest combined dividend amount distributed by FGB and NBAD

• Proposed DPS of AED 0.70 is 11% higher than 2016 pro forma (AED 0.63)

Note: Pending shareholders’ approval at AGM on Sunday 25th February 2018

Intangible assets

= AED 2.6Bn

29

PPA accounting Substantially complete as of 31 Dec 2017

29

NBAD Net Asset Value as of March 31 2017

AED Bn Pre PPA PPA impact Post PPA

Loans and advances 210.7 (2.9) 207.8

Other Assets 225.3 (1.9) 223.4

Total assets 436.0 (4.8) 431.2

Total liabilities 397.2 0.3 397.5

NBAD net asset value (pre-intangibles) 38.8 (5.1) 33.7

Intangibles identified - 2.6 2.6

NBAD net asset value 36.3

• As per IFRS 3 and Business Combination guidelines, the Bank is

required to complete a “Purchase Price Allocation” exercise in order

to determine the goodwill arising from the merger

• All acquired assets and assumed liabilities of NBAD should be

recorded at fair value

Impact

Concept

of PPA

• Fair value adjustments impact net asset value and goodwill

calculation

• Intangible assets identified as a result of PPA to be amortised

through P&L

Accounting treatment Post-PPA

• To be amortised over 12 yrs

• Year 1 impact of AED 138Mn

recorded in Q4’17 (nine-

month impact)

• Estimated impact on P&L for

2018 ~AED 185Mn

• No amortisation

• To be annually tested for

impairment

Goodwill

= AED 17.3Bn

Purchase Price Consideration (a) 53.6

NBAD Net Asset Value (b) 36.3

Goodwill (a)-(b) 17.3

Intangibles 2.6

Goodwill & Intangibles 19.9

Goodwill calculation (AED Bn)

Note: As of 31 Dec 2017, PPA exercise as per IFRS3 is substantially complete and no significant changes to NBADs net asset values are expected by 31 March 2018

30

Robust capital position Even after PPA / FY’17 proposed dividends

• CET1 comfortably in excess of minimum

requirement of 9% for 2017 even after

PPA impact and FY’17 proposed

dividends

• Limited RWA impact: Credit RWA

optimisation offset by increased Market

RWA linked to higher client-related

derivative volumes

• Strong internal capital generation capacity

combined with continued RWA discipline

to support future capital build-up; CET1

>13% by end of 2018

• IFRS9 impact on CET1 estimated at

57-68bps

CET11 ratio progression

2017 2018 2019

Min. CET 1 7.0% 7.0% 7.0%

Capital Conservation Buffer 1.25% 1.875% 2.50%

D-SIB Buffer 0.75% 1.125% 1.50%

Total Min. CET 1 9.00% 10.0% 11.0%

Additional Tier1 (AT1) 1.50% 1.50% 1.50%

Tier2 2.00% 2.00% 2.00%

Basel III regulatory capital glide path2

14.8% 14.5% 12.9%

2.27%

1.42%

0.13% 0.99% 0.05%

1.57%

CET1Dec'16

FY'16Dividends

Capitalgeneration

RWA impact PPA impact Othermovements

CET1Dec'17

FY'17ProposedDividends

CET1Dec'17(Post-

dividends)

Min 9% Min 9%

1CET1 ratio as per UAE CB’s Basel III framework (without considering the transitional arrangements for 2017); 2016 ratio as per UAE CB’s Basel II framework 2AT1 (additional Tier 1) + Tier 2 capital requirement – Min 3.5%; any shortfall in same to be met by CET1; Countercyclical buffer requirement (0 – 2.5%) as advised by UAECB, is nil in 2017

14.8% 14.5%

2.2% 2.2%

1.2% 1.1%

CAR 18.2%

CAR 17.8%

Dec'16 Dec'17

CET1 AT1 Tier II

31

Robust capital position

Key Highlights

RWAs & Return on RWAs1

• Robust capital position with Basel III CET13 ratio at 14.5%,

comfortably in excess of regulatory requirements

• Tier 1 capital ratio at 16.7% and total CAR at 17.8% (vs 17.0% and

18.2% in Dec’16)

• Credit RWA optimisation offset by increased Market RWA linked to

higher client-related derivative volumes

• FAB officially designated as Domestic Systemically Important Bank

(D-SIB); required to hold additional capital buffer of 1.5% by 2019

• Solid returns with Annualised RoTE at 14.8%, in line with full year

guidance; RoTE ex-integration costs at 15.5% for 2017

• 2018 RoTE guidance ~15%

1 - Year-to-date annualised

2 - Return on Average Tangible Equity, annualised; based on attributable profit to equity shareholders' excl Tier 1 notes coupon and amortisation of intangibles

3 – As per UAE CB’s Basel III framework (without considering the transitional arrangements for 2017); ratios prior to 2017 as per UAE CB’s Basel II framework

15.7%

16.1%

14.8%

14.3%

14.8%

FY'16 Q1'17 H1'17 9M'17 FY'17

Strong capital ratios (Basel III)3

Annualised RoTE2 (YTD)

14.8% 13.9%

14.7% 14.9% 14.5%


CET1

481.2 484.3 472.0 483.1 485.3

2.3% 2.4% 2.3% 2.2% 2.3%

1.8% 1.8% 1.6% 1.6% 1.7%


RWAs RoRWA ROAA

FY'17 FY'16 YoY % Q4'17 Q3'17 QoQ %

Net interest Income 13,106 13,550 -3 3,363 3,244 4

Fees & commissions, net 3,362 3,886 -13 932 788 18

FX and investment income, net 2,586 2,023 28 464 491 -5

Other non-interest income 479 844 -43 289 89 226

Total Operating Income 19,533 20,302 -4 5,049 4,611 10

58% 52%

30% 40%

15% 7%

FY'16 FY'17

20,302 19,533

67% 67%

33% 33%

FY'16 FY'17

1,710 1,933

1,442 1,367

1,686

57% 40% 60% 58% 55%

38% 57% 37% 36%

28%

5% 3%

3% 6%

17%

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

Other income

Net FX & Investment income

Net fees and commission income

5,102 5,188 4,686 4,611

5,049

66% 63% 69% 70% 67%

34% 37% 31% 30% 33%

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

Net interest income Non-interest income

• Q4’17 revenues up 10% qoq led by higher fees & commissions

(F&C) on strong pipeline execution, and property gains

• FY’17 revenues managed at AED 19.5Bn (-4% yoy) reflecting

softer operating conditions, portfolio optimisation initiatives as well

as lower property compared to 2016

• FY’17 NII down 3% yoy due to margin compression on asset

optimisation and lower IIS, while higher volumes drove 4%

sequential increase in Q4’17

• F&C up 18% qoq on higher loan-related fees in CIB and higher

credit card and insurance-related fees in PB. F&C 13% lower yoy

reflecting lower market loan and trade activity compared to 2016

• FX and investment income up 28% yoy on opportunistic AFS

investment gains, mostly in Q1’17

32

Strong business momentum in Q4 drives revenues

higher

-5%

-4% -1%

1 Negative interest income booked on some placements has been reclassified to net FX income

2 Includes gains on sale of investment properties

6,753 6,427

Key Highlights

Operating Income (AED Mn)

Operating Income (AED Mn)

Non-interest Income (AED Mn)

2

+10%

1

1

33

NIM trend reflects margin compression and impact

from placement of excess liquidity

2.51

2.46

2.51

2.57

2.44

2.55

2.46

2.48 2.51

2.49

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

Group NIM (Qtr) Group NIM (YTD)

4.31

4.35

4.44

4.57

4.42

4.35

4.35 4.40

4.45

4.44

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

Performing Loans Yield (Qtr)

Performing Loans Yield (YTD)

0.73 0.74 0.74

0.78 0.81

0.71 0.74 0.74

0.76 0.77

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

Cost of Customer Deposits (Qtr)

Cost of Customer Deposits (YTD)

• Group NIM: -13bps qoq and -6bps yoy reflecting margin

compression and the dilutive impact of deployment of short-term

excess liquidity

• Performing loan yields: +9bps yoy on the back of corporate loan

repricing following benchmark rate hike; -15bps qoq primarily due

to the increase in low-yielding loan volumes and tighter risk appetite

in PB

• Cost of customer deposits: marginally up qoq and yoy, indicating

realisation of funding cost synergies despite 3 rate hikes

Note: All percentage figures are annualised

Key Highlights

Performing Loan Yields (%)

Net Interest Margin (%)

Cost of Customer Deposits (%)

Strong synergy realisation drives better operating

efficiency

34

• Operating expenses BAU reduced 8% yoy, reflecting disciplined

cost management and realisation of substantial synergies at an

increased pace

• Headline operating expenses were lower 1% yoy and higher

20% qoq on higher Integration costs reflecting the increased

pace of synergy realisation and merger-related amortisation of

intangibles

• C/I ratio (ex-integration costs1) stands at industry-leading level of

27.7%, improving from 28.3% in FY’16; ex-amortisation of

intangibles (merger-related) C/I ratio stands at 27.0%

Key Highlights Cost-Income Ratio (%)

28.3 27.2 27.5 27.6 27.7

27.0

FY'16 Q1'17 H1'17 9M'17 FY'17

C/I ratio (ex-integration)

C/I ratio (ex-integration and merger-related amortisation of intangibles)

1 Excluding integration/ merger transaction-related costs

1,434 1,412 1,308 1,274 1,280

118 104 91 70 198

138

1,553 1,516 1,399 1,344

1,616

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

Amortisation of intangibles (merger-related)

Integration / merger transaction-related costs

Operating expenses (ex-integration)

5,745 5,274

178 463

138

5,922 5,875

FY'16 FY'17

Operating expenses trend (AED Mn)

-8%

-1%

BAU

590 641 620 562 562

66 73 72

67 66

Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

Impairment Charges, net Cost of Risk(bps)*

2,664 2,384

76

69

FY'16 FY'17

35

CoR continues to benefit from RWA optimisation

• Impairment charges (net) down 10% yoy driven by lower

collective provision charges resulting from balance sheet

optimisation and higher write backs

• NPLs up 14% yoy primarily due to retail-led NPL formation

• Portfolio is adequately provisioned with coverage at 120%;

Collective provisions at 1.9% of Credit RWAs

• Cost of risk improved to 69bps for FY’17, better than full year

guidance of 70-75bps; 2018 guidance: 65-75 bps

125 122 112 109 120

2.7 2.6

3.2 3.0 3.1


Provision Coverage (%) NPL Ratio (%)

* annualised

Key Highlights

NPLs and Provisions (AED Mn)

Impairment Charges, net (AED Mn) & CoR

Provision Coverage & NPL ratio

Dec'17 Sep'17 QoQ% Dec'16 YoY%

NPLs 10,597 10,233 4% 9,280 14%

Provisions 12,728 11,153 14% 11,565 10%

Specific 4,581 4,105 12% 4,325 6%

General 8,147 7,049 16% 7,240 13%

88.2 87.6

85.2 86.6

83.5


36

Strong corporate loan origination in Q4; deposits

higher on Govt inflows

Loans and advances*

• Loan book increased 1% qoq as strong loan origination in Q4’17

was partially offset by continued balance sheet optimisation and fair

value adjustments linked to PPA

• Loans were down 1% yoy as new origination was offset by balance

sheet optimisation and corporate repayments in a overall subdued

loan market

Customer Deposits and other accounts*

• Customer deposits up 4% qoq and yoy, on higher government

deposit inflows

• CASA grew 7% yoy highlighting FAB’s strong deposit franchise and

leading cash management solution

• Liquidity position remains highly comfortable with loan-to-deposit

ratio of 83.5%

• Dec-end 2017 LCR of 112% stands above the Basel III glide path

*Restated net of National Housing Program loans and deposits

334.4

345.2

321.3 328.3 330.5


379.2

393.9

377.3 378.9

395.8


Loans and Advances* (AED Bn)

Loan-to-deposit ratio* (%)

Customer Deposits* (AED Bn)

Key Highlights

9.8

2.3

9.4

2.0

Revenue Expenses

2016 2017

37

Business Performance

48% Corporate & Investment Banking (CIB)

-5%

-11% 232.8

280.5 233.5

298.9

Loans Deposits

+0.3%

+7%

7.5

3.0

6.9

2.6

Revenue Expenses

2016 2017

35% Personal Banking Group (PBG)

-8%

-13% 96.9 91.4 94.3 88.4

Loans Deposits

-3% -3%

of Group

Revenue

of Group

Revenue

• Strong business momentum in Q4’17 led to 6% sequential growth in

revenue, while FY’17 revenues were down 5% on subdued loan market

and lower trade activity

• Strong revenue growth was recorded in our Cash Management business

through a significant increase in mandates and strong Investment book

returns in Global Markets

• Despite a subdued loan market, we were able to successfully execute

landmark transactions across Corporate Finance, specifically in Advisory

and Syndicated Loan markets

• Our UAE business overall delivered a strong year on year result with risk

adjusted returns higher

• Disciplined cost management and realisation of synergies resulted in

lower costs by 11% yoy

• PBG delivered a resilient performance in 2017 amidst a slowdown in

retail spending and continued asset mix optimisation along with tighter

risk appetite leading to margin compression

• Higher credit card and insurance-related fees in 4Q’17 supported a 2%

sequential growth in operating income

• Operating expenses reduced by 13% yoy indicating tight cost control

and realisation of substantial synergies post-merger

• Loans were 3% lower yoy reflecting disciplined lending and tighter risk

appetite

• First FAB branded credit card “FAB Visa Infinite Credit Card” launched

post-merger

AED Bn

AED Bn

1,662

452

1,309

545

Revenue Expenses

2016 2017

38

Business Performance (continued…)

7%

Subsidiaries

-21%

+21% 9.1

5.5

8.3 6.9

Loans Deposits

-9%

+25%

2,569

879

2,432

853

Revenue Expenses

2016 2017

International (Middle East & Africa, Asia Pacific and Europe & Americas)

-5%

-3%

65.5 94.0

67.6

107.9

Loans Deposits

+3%

+15%

of Group

Revenue

AED Mn

AED Mn • FAB enjoys a highly diversified business model supported by

complementary offerings provided across real estate management,

Islamic banking, brokerage, and credit cards through its subsidiaries

• FY’17 Revenues were down yoy, primarily due to lower property-related

income

• Integration of the real estate and property management businesses was

completed along with re-branding of the brokerage business into FAB

Securities; integration of the Islamic Finance subsidiaries is underway

• FAB’s international business remains a key competitive advantage and

differentiator for the Bank as a significant contributor to liquidity and risk

diversification

• FY’17 revenues were AED 2.43 Billion, down 5% yoy, primarily reflecting

FX devaluation

• International revenues contributed 12% to Group’s total revenues

• While loans increased by 3%, FAB’s solid core deposit franchise led to a

15% growth in international deposits in 2017

• As of December-end 2017, international loans and deposits represent

20% and 27% respectively of total Group loans and deposits

AED Bn

AED Bn

39

Outlook

Economy/

Banking Sector

• Sustained global economic growth

• 2-3 Fed rate hikes expected in 2018

• Expansionary budgets across the GCC supported by firming oil prices > USD 50/barrel

• UAE GDP growth to accelerate to 3.4% (vs. 1.3% in 2017) , led by Abu Dhabi recovery

and pick up in government spending

• Faster economic growth to support credit growth ~mid-single digit

• Transition under way towards Basel III and IFRS9 implementation

FAB

• 2018 will be a year of consolidation: core businesses positioned well to achieve growth

and deliver further operating efficiencies

• Continued progress in integration journey with IT systems integration as next key

milestone and end point of merger (around end of 2018)

• Strategic review/ implementation of international value proposition

• Process to obtain CMA and SAMA licenses in KSA well underway

40

Financial guidance

1 - Year-to-date annualised

2 - Return on Average Tangible Equity, annualised; based on attributable profit to equity shareholders' excl Tier 1 notes coupon and amortisation of intangibles

2018 FINANCIAL GUIDANCE 2020 AMBITIONS

GROWTH Loan Mid-single digit

Revenue Low single-digit

EFFICIENCY C/I Ratio (ex-integration costs)

~26%-27% ~25%

ASSET QUALITY Cost of Risk1 65-75bps

PROFITABILITY Net profit growth Mid single-digit

RoTE2 ~15% 16-17%

CAPITAL Basel III CET1 >13% >13.5%

(vs. 14-15% previously)

Contents

Introducing FAB

Integration Journey



01

02

03

04

41

Appendix 05

42

Q4/FY’17 Summary Financials

Income Statement - Summary (AED Mn) Note FY'17 FY'16 YoY % Q4'17 Q3'17 QoQ % Q4'16 YoY %

Net interest Income a 13,106 13,550 -3 3,363 3,244 4 3,392 -1

Fees & commissions, net 3,362 3,886 -13 932 788 18 968 -4

FX and investment income, net a 2,586 2,023 28 464 491 -5 652 -29

Other non-interest income 479 844 -43 289 89 226 90 220

Total Operating Income 19,533 20,302 -4 5,049 4,611 10 5,102 -1

Operating expenses (5,875) (5,922) -1 (1,616) (1,344) 20 (1,553) 4

Incl: Integration costs b (463) (178) 161 (198) (70) 183 (118) 68

Amortisation of intangibles (merger-related) (138) - - (138) - - - -

Impairment charges, net (2,384) (2,664) -10 (562) (562) 0 (590) -5

Non Controlling Interests and Taxes (358) (394) -9 (48) (100) -52 (105) -55

Net Profit 10,915 11,322 -4 2,822 2,605 8 2,854 -1

Adjusted Net Profit c 11,517 11,500 0 3,159 2,675 18 2,972 6

Basic Earning per Share (AED) d 0.96 1.00 -4 1.00 0.92 9 1.01 -1

c) Adjusted Group Net Profit is stated before amortisation of intangibles (merger-related) identif ied as a result of the “purchase price allocation” , and excluding one-off

integration costs

Full Year Quarterly

a) Negative interest income booked on some placements has been reclassif ied to net FX income; NIM has been restated accordingly

b) Integration costs prior to 2017 are merger transaction-related costs

d) Basic EPS based on attributable profits to equity shareholders' excluding T ier-1 notes coupon and outstanding shares

43

Q4/FY’17 Summary Financials

Balance Sheet - Summary (AED Bn) Note Dec'17 Dec'16 YoY % Sep'17 QoQ %

Loans and advances e 330.5 334.4 -1 328.3 1

Customer deposits e 395.8 379.2 4 378.9 4

CASA (deposits) 116.0 108.5 7 112.4 3

Total Assets e 669.0 649.1 3 644.1 4

Equity (incl Tier-1 capital notes) 101.7 97.0 5 99.1 3

Tangible Equity f 71.1 71.9 -1 73.3 -3

Key Ratios (%) Note FY'17 FY'16YoY

(bps)

Net Interest Margin a 2.49 2.55 -6

Cost-Income ratio (ex-integration costs) 27.7 28.3 -59

Cost of Risk (bps) i 69 76 -7

Non-performing loans ratio j 3.1 2.7 41

Provision coverage j 120.1 124.6 -451

Loans-to-deposits ratio e 83.5 88.2 -472

Return on Tangible Equity (RoTE) g 14.8 15.7 -83

Return on Risk-weighted Assets (RoRWA) 2.3 2.3 0

CET1 ratio h 14.5 14.8 -32

Capital Adequacy ratio h 17.8 18.2 -34

net of perpetual notes as a percentage of risk weighted assets

Rounding differences may appear in above table

e) Restated net of National Housing Program loans and deposits

f) Tangible equity is shareholders' equity net of T ier-1 capital notes, goodwill & intangibles

g) Return on Average Tangible Equity, annualised; based on attributable profit to equity shareholders' excl coupon on T ier-1 capital notes (AED 465Mn - FY'17) and

amortisation of intangibles (AED 159 Million - FY'17)

h) As per UAE Central Bank's Basel III framework; f igures prior to Dec 2017 are based on UAE CB's Basel II framework; CET1 ratio is based on T ier-1 capital

i) Loan-related impairment charges (net) as a percentge of average gross loans and advances (net of interest in suspense)

j) Gross loans and advances net of interest in suspense

Agriculture 0.1%

Energy 7%

Manufacturing 6% Construction

3%

Real Estate 26%

Trading 7%

Transport and communication

8% Banks

6%

Other financial institutions 8%

Services 7%

Government 1%

Personal - Loans & Credit

Cards 21%

Cash & CB Balances

21%

DFB and Reverse Repos

5%

Loans and Advances

49%

Investments 16%

Others 9%

1% 1% 17% 16%

53% 56%

22% 21%

7% 6%

Dec'16 Dec'17

Banking Sector

Personal/Retail Sector

Corporate/PrivateSector

Public Sector

Government Sector

UAE 80%

GCC 2%

Asia 5%

Europe 9%

MENA 2%

America 2% Overdrafts 4%

Term Loans 63%

Trade related loans 7%

Real Estate 10%

Mortgage Loans 5%

Personal Loans 9%

Credit Cards 2%

Vehicle financing loans & others 0.4%

44

Asset & Loan Mix

AED 345.1 Bn

Dec’17

AED 330.5 Bn

Dec’17

AED 669.0 Bn

Dec’17

AED 345.1 Bn

Dec’17

345.1 347.7

1 - Based on booking centre

Asset Mix Gross loans by counterparty (AED Bn)

Gross loans by economic sector Net loans by geography¹ Gross loans by product

HFT - Debt 17% HFT - Equity &

Funds 1%

Held to Maturity (Debt)

7%

AFS - Equity & Funds

2%

AFS - Debt 73%

Sovereign 43%

GREs 22%

Covered Bonds 4%

Banks 20%

Corporate/ Pvt Sector

7%

Supranatl 4% Europe

17%

GCC 15%

MENA (ex-GCC&UAE)

4% USA 11%

Others incl A&NZ 1%

Asia 16%

UAE 36%

AAA 13%

AA 35%

A 28%

BBB 12%

BB & below 7%

Unrated – Debt 2%

Equity & Funds 3%

45

Investment breakdown

AED 107.8 Bn

Dec’17

AED 107.8 Bn

Dec’17

AED 107.8 Bn

Dec’17 AED 107.8 Bn

Dec’17

Investments by type Investments by ratings

Investments by geography Investments by counterparty

Due to Banks & Repos

12%

Commercial Paper

4%

Customer Deposits

70%

Term Borrowings &

Sub Debt 8%

Others 6%

46

Liability mix and Wholesale Funding

Wholesale Funding (AED Bn) Dec’17

Syndicated loan 7.3

Medium Term Notes/Bonds 34.8

Subordinated debt 0.4

Total 42.6

AED 566.7 Bn

Dec’17

7,331 5,903

7,707

7,358 250 3,278

10,320

2018 2019 2020 2021 2022 2023 & Beyond

Syndicated Loan MTN/MTB

Liabilities mix

Wholesale funding maturity profile (AED Mn)

15% 20%

20% 19%

38% 34%

20% 18%

7% 9%

379.2 395.8

Dec'16 Dec'17

Government sectorPublic SectorCorporate / private sectorPersonal/retail sectorCertificates of deposits

63% 61%

25% 26% 4% 3%

7% 9% 1% 1%

379.2 395.8

Dec'16 Dec'17

Notice and time deposits Current Accounts

Saving Accounts Certificates of deposits

Margin Accounts

UAE 73%

GCC 2% Asia 1%

Europe 19%

MENA 3%

America 3%

47

Customer deposits

AED 395.8 Bn

Dec’17

29% 29% 30% 30% 29%

379.2 393.9 377.3 378.9 395.8


CASA (%) Total Customer Deposits

1 - Based on booking centre

Customer deposits (AED Bn) Customer deposits by account type (AED Bn)

Customer deposits by Counterparty (AED Bn) Customer deposits by geography1

• Best FX provider in UAE

• Best Overall Cash Management Bank in the Middle East

• Best Bank for Liquidity Management in the Middle East

• Safest Bank in the UAE

• Safest Bank in the Middle East

• 4th Safest Bank in Emerging Markets

• 17th Safest Commercial Bank

• 31st Safest Bank in the World

Prestigious awards highlight FAB’s strength and

industry expertise in UAE and MENA

• Best Bank in the UAE

• Best Brokerage Company (NBAD Securities)

• Best Consumer Finance Company in MENA

(Dubai First)

• Best Investment Bank in the

United Arab Emirates

• Best Bank for Financing in the

Middle East

• Best Fixed Income of the Year

• UAE Asset Manager of the Year

• Most Innovative Investment

Bank in MENA

48

Prestigious awards highlight FAB’s strength and

industry expertise in UAE and MENA

- Best Trade & Supply Chain

Finance Solution - Most Outstanding Islamic

Banking Window

- Best Seamless Government

Experience

- UAE Asset Manager of the

Year

- Best Trade Finance Bank in

MENA

- Sukuk House of the Year - UAE

- Best Islamic Deal of the Year

- Digital Leader Award -

Government

- Best Islamic Structured Trade

Finance Deal of the Year

49

Executed Landmark Transactions in 2017

Abu Dhabi Crude Oil

Pipeline

USD 3.037 bn

Senior Secured

3.650% due 2029

4.600% due 2047

Joint Global Coordinator

& Joint Bookrunner

October 2017

Government of Abu Dhabi

USD 10.0 bn

Senior Unsecured

2.500% due 2022

3.125% due 2027

4.125% due 2047

Joint Bookrunner

October 2017

Vedanta Resources

USD 1.0 bn

Senior Unsecured Notes

6.125% due 2024 (7NC4)

Joint Global Coordinator

and Joint Bookrunner

July 2017

National Bank of Kuwait

USD 750 mn

Senior Unsecured Notes

2.750% due 2022

Joint Bookrunner

May 2017

Government of Indonesia

USD 3.0 bn

Senior Unsecured

Dual Tranche Sukuk

3.400% due 2022

4.150% due 2027

Joint Bookrunner

March 2017

Majid Al Futtaim

USD 500 mn

Reset Subordinated Notes

5.500% Perpetual

NC5.5 year

Joint Bookrunner

February 2017

Government of

Hong Kong

USD 1.0 bn

Senior Sukuk

3.132% due 2027

Joint Bookrunner

February 2017

APICORP

USD 500 mn

Senior Sukuk

3.141% due 2022

Joint Bookrunner

October 2017

Emaar Development

USD 1.5 billion

Murabaha Facility

Sole Coordinator, Sole

Bookrunner & Security

Agent

September 2017

Dubai Metro –

Department of Finance

USD 1.1 billion

Term Loan Facility

Mandated Lead Arranger

& Facility Agent

August 2017

Saudi Electricity

USD 1.75 billion

Term Loan Facility


& Bookrunner

August 2017

Kuwait Food

USD 1.425 billion

Term Loan Facilities

Sole Bookrunner, &

Facility Agent

June 2017

African Export-Import

Bank

USD 1.65 billion

Term Loan Facility


& Bookrunner

June 2017

Reliance Industries

USD 1.75 billion

Term Loan Facility


& Bookrunner

March 2017

Oman

Telecommunications

USD 600 million

Term Loan Facility

Mandated Lead

Arranger & Bookrunner

May 2017

EMAAR Development AED 4.8bn

Initial Public Of f ering Joint Global

Coordinator, Joint

Bookrunner & Lead

Receiving Bank Nov ember 2017

Vedanta Plc

USD 575m

Term Loan

Mandated Lead Arranger & Bookrunner

2017

ADNOC

USD 6 billion

Term Loan Facility

Joint Coordinator,


& Bookrunner

November 2017

ADNOC Distribution

USD 2.25 billion

Term Loan Facility

Sole Coordinator, MLA,

Bookrunner and Facility

Agent

November 2017

DCM LCM CA/ECM

50

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