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INVESTOR PRESENTATION November 2017

2

Disclaimer

Please note that FAB pro forma consolidated financials at 30 September 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 reviewed consolidated interim financial statements as at 30 September 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

Q3/9M’17 Financial Review Based on Pro forma financial information as of 30 September 2017

01

02

03

04

3

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

Superior asset quality and cost efficiency and strong internal capital

generation capacity

Excellent progress made so far in robust and ambitious 18-24 month

integration journey

Set to realise substantial synergy potential by 2020

5

Merger timeline and key milestones

3rd July

FGB-NBAD merger announcement

Q3’16 Q4’16 Q1’17 Q3’17

2nd April

Legal merger completion

First day of trading of new shares

May 1st

Launch of new brand identity

Integration Steering

Committee (ISC) and

Integration Management

Office (IMO) established

Appointment of Senior

Leadership team

Appointment of

CIO and external

consultants

11th Dec

Filing of special resolution

and start of credit

objection period

24th April

Name change from National

Bank of Abu Dhabi to First

Abu Dhabi Bank (FAB)

approved by shareholders at

General Assembly Meeting

Q2’17

7th Dec

Merger approved by

shareholders at General

Assembly Meetings

Brand roll-out across

local and international

network

Finalisation of

organisational structure

and operating model

6

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)

115 Branches in UAE

625 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 644 Bn) and market capitalisation

(AED 111 Bn)

• Offers extensive range of products and services via

market-leading Corporate and Investment Banking

(CIB) and Personal Banking (PB) franchises

• Domestic network: 115 branches and 625 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 30 September 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

7

FAB Share Profile

• Listed on Abu Dhabi Securities Exchange (ADX)

• Symbol: FAB

• Number of shares issued: 10,898 million1

• Market cap2: AED 111 Bn (USD 30.3 Bn)

• Foreign Ownership Limit: 25%

1 - Includes 43 Mn Treasury shares

2 - As on 30 September 2017

3 - Ownership structure as of 30 September 2017, based on shares outstanding (net of treasury shares)

Abu Dhabi Securities Market Index ADSMI 34.9%

Bloomberg GCC 200 financial Index BGCCFIN200 4.0%

Bloomberg EMEA Banks Index BEUBANK 1.8%

Index Weightings2

Strong shareholding structure3

Overview

ADIC 33.5%

Mubadala 3.7%

Other UAE companies and

individuals 52.2%

GCC (ex-UAE) 1.4%

Foreign (ex-GCC) 9.2%

8

Leading UAE and regional bank

1 - Company and Central Bank information as of latest reported for 30 September 2017, except for Banking Sector Assets for Kuwait and Oman (31 August 2017)

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

3 - Based on 30 September 2017; Source Bloomberg

720

609

367

209

189

81

UAE

Qatar

KSA

Kuwait

Oman

Bahrain

Banking sector assets1 (USD Bn)

National

champion2

2.2

1.9

2.8

0.8

0.5

0.3

9M’17 Net Profit (USD Bn)

175

119

218

85

34

29

27.0

16.4

21.0

10.5

4.3

4.7

Total Assets1

(USD Bn)

Equity1 (USD Bn)

Market Cap3 (USD Bn)

30.3

27.4

30.9

14.8

5.3

2.8

Credit Ratings (Moody’s/S&P/Fitch)

Aa3 / AA- / AA-

A1 / BBB+ / A-

Aa3 / A / A+

Aa3 / A+ / AA-

NA / BBB / BBB+

Baa2 / BB+ / BBB

9

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

Photo Photo Photo Photo Photo Photo Photo

Board of Directors

4 Board Committees

10

Talented and Experienced Senior Leadership

Abdulhamid M. Saeed

Group CEO

Zulfiqar Sulaiman

Group Chief

Integration

Officer &

Acting Group

Head of

International

Banking

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

Khalaf Al Dhaheri

Group

Chief

Operating

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 CIB

Fadhel Al Ali

Group

Chief

Customer

Experience &

Digital

Officer

11

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

To drive individual and institutional

prosperity by putting the customer first

To become a financial services leader delivering

top shareholder value OUR PURPOSE OUR COMMITMENT

12

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

49% 35% 6% 10%

Segment

Coverage and

offering

% 9M’17

Group

revenue

13

Prestigious awards highlight FAB’s strength and

industry expertise

‘Best Bank in the UAE’

‘Most Innovative Investment Bank’ in the MENA region

NBAD Securities named ‘Best Brokerage Company’ for the 2nd year in a row

Dubai First received the title of ‘Best Consumer Finance Company’ in the region for the 3rd year in a row

‘Best Investment Bank in the United Arab Emirates’

‘Best Bank for Financing in the Middle East’

FAB named ‘Best Trade Finance Bank in MENA’

‘Sukuk House of the Year - UAE’ for the 2nd consecutive year

‘2017 Best Islamic Deal of the Year’ for Etihad Airways’ $1.5b Sukuk. FAB was Joint Structuring Bank and Joint

Bookrunner

‘2017 Best Islamic Structured Trade Finance Deal of the Year’ for a $300m Murabaha on behalf of Al Marai. FAB

was Joint Arranger and Joint Bookrunner

‘Best Fixed Income of the Year’

‘UAE Asset Manager of the Year’

Best FX provider in UAE

Best Overall Bank for Cash Management

Best Bank for Liquidity Management in MENA

14

Leading market position

FAB ranked amongst world’s

safest banks2

1 - Bloomberg

2 - Global Finance 2017 rankings

FAB dominates GCC and MENA

league tables1 ytd with market share

double of nearest peer

14.3% Market share

GCC loan league tables

12.7% Market share

MENA loan league tables

#1 safest bank in UAE and Middle East

#4 safest bank in Emerging Markets

#17 safest commercial bank worldwide

#31 safest bank worldwide

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)

15

634.4 649.1 660.4 624.6 644.1

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

339.4 334.4 345.2 321.3 328.3


362.6 379.2 393.9 377.3 378.9


69.2 71.9 68.0 70.7 73.3


5,468 5,102 5,188

4,686 4,611

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

3,184 2,854 2,926

2,562 2,605

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

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 (%)

16

2.4 2.4 2.2 2.2 2.2

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

2.8 2.7 2.6

3.2 3.0


118.5 124.6 121.8 111.6 109.0


28.4 28.3 27.2 27.5 27.6

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

38.7 34.4

38.3

32.1 31.0

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

13.8 13.3 13.8 14.4 14.6

17.1 16.6 17.1 17.8 18.0


CET1 CAR

15.9 15.7 16.1 14.8 14.3

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

2.2 2.3 2.4 2.2 2.2

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

Contents

Introducing FAB

Integration Journey



01

02

03

04

17

18

A robust 18-24 month integration journey

2016 2017 2018 / 2019

Q3 Q4 Q1

Day 1 readiness

Integration

Design

& Planning

Mobilisation

Day 1

Synergies realisation

IT & Operations integration

Staff relocation

Full organisation structure & operating model

Integration Execution

Integration roadmap execution

Culture and change management

Branding

19

Excellent progress since merger completion

Finalisation of

organisational structure

and operating model

IT system integration on

track

Integration of subsidiaries

progressing well

Merger benefits materialising

ahead of plan

Network and channel re-brand

in progress

Network optimisation

underway

Harmonisation of Group

policies and risk framework

20

Network and channel re-brand in progress

Headquarters

Business Park, Abu Dhabi

Rebranded ATMs/ CDMs

FAB Metro Station

Dubai

21

Cost synergies

• Ahead of plan at ~AED 280 Mn ytd, already

exceeding FY’17 guidance of ~AED 250 Mn

• Cost synergies realised to-date represent 28% of

2020 annual run-rate target of AED 1 Bn

One-time integration costs

• Well under control at AED 268 Mn ytd

• In line with FY’17 guidance of ~AED 385 Mn

~280Mn ~250Mn

YTD as of Sep'17 2017 guidance

268Mn

~385Mn

YTD as of Sep'17 2017 guidance

In AED

In AED

Merger benefits materialising ahead of plan

22

Validated synergies significantly higher than

preliminary assessment

UAE Retail 30%

Wholesale & International (incl.

subsidiaries) 25%

Enablement functions

25%

IT&Operations 15%

Others 5%

Cost synergies full annual run-rate of ~AED 1Bn, to be

realised over 3 years, will be primarily driven by:

• Network and staff rationalisation

• Consolidation of common businesses/ enablement

functions

• Systems integration

• Premises reduction

Validated cost synergies represent 50% of smaller bank

cost base (17% of combined cost base), well above bank

mergers’ average

~AED 1Bn

Funding cost optimisation alone, represents revenue synergy opportunity estimated at ~AED 400Mn

Cross-selling opportunities to deliver significant upside to support core underlying revenue growth from 2018 onwards

Cost synergies validated at ~AED 1Bn1

up from preliminary assessment of AED 500Mn

% of smaller bank cost base 50%

Benchmark2 ~30%

2017 2018 2019 2020

25% 65% 85% 100% Target Phasing

1 - April 3rd 2017 merger update

2 - Based on European banks’ mergers average

23

One-time integration costs revised higher, yet

compare favorably with benchmark

• IT migration and write-offs

• Brand identity roll-out

• Professional fees and training

• Premises and relocation expenses

• Staff severance

One-time integration costs will be fully

absorbed by 2019, and include:

Integration costs exclude strategic investments in key enablers, estimated at ~AED 350Mn over the next 3 years

2017 2018 2019

35% 35% 30% Target Phasing

One-time integration costs revised to ~AED 1.1Bn1

vs. preliminary assessment of AED 600Mn

% of validated cost synergies 110%

Benchmark2 120 – 140%

One-time integration costs represent 110% of

cost synergies, compares favorably with

benchmark range of 120%-140%

IT migration & write-offs

42%

Professional fees & training

14%

Branding, premises and

relocation 19%

Staff severance

14%

Other 11%

~AED 1.1Bn

1 - April 3rd 2017 merger update

2 - Based on European banks’ mergers average

24

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 Mid single-digit core revenue CAGR

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

14-15% min. CET1

How we will measure our success by 2020

Contents

Introducing FAB

Integration Journey



01

02

03

04

25

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

26

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%

55.9

40

45

50

55

60

Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17

27

Other Macro Indicators

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

AED 129 Bn Net Deposit Surplus as of Sep’173 EIBOR Vs LIBOR (%)

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

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17

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

5 16

-17

1

-71 -35

18

-1

69 100

139

85 96

129

98% 96%

103% 100%

108% 104%

98% 100%

94% 92% 90% 94% 94%

92%

50%

60%

70%

80%

90%

100%

110%

(100)

(50)

0

50

100

150

200

250

300

350

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

Se

p'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

28

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 - 2017 forecasts - Source: IMF World Economic Outlook (October 2017) 3 - IMF, 2016 (assuming Abu Dhabi is a separate country)

4 - IMF quoted by Reuters, November 2017 5 - S&P Abu Dhabi, February 2017

6 - 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%

Others* 29%

Nominal GDP breakdown by sector

41% 51%

64%

2005 2016 2030 Target

Oil GDP Non-Oil GDP

Target real GDP6

72%


to nominal GDP1

Real GDP growth4

0.3% 3.2% 2017f 2018f

28% 26%

29

Sound and highly capitalised banking sector

Figures in AED Bn Sep’17 Dec’16 YTD Sep’16 YoY

Total Assets, net2 2,530 2,485 1.8% 2,423 4.4%

Loans and Advances, net2 1,467 1,446 1.5% 1,439 1.9%

Customer Deposits2 1,596 1,542 3.5% 1,488 7.3%

LDR2 92% 94% -200bps 97% -500bps

Lending to Stable

Resources Ratio3 86.0% 86.2% -20bps 88.2% -220bps

CAR4 18.7% 18.9% -20bps 18.6% +10bps

Tier 1 capital4 17.1% 17.3% -20bps 16.3% +80bps

• 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 80%

• 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 Sep’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)

1,452 1,542 1,596

+28 +57 +0.1 +28 +36 +15 +11 +3

-23 -11

1,466 1,554 1,580

+6 +16 +55 +17 + 9 +1 +13

-6 -12

+15

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c'1

5

Go

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t

Pub

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RE

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De

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6

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No

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Sep

'17

Cu

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Dep

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Gro

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red

it

+3.5% +6.2%

+1.7% +6.0%

Dec’16 Sep’17 Dec’15

FAB has a Dominant Market Position1

Contents

Introducing FAB

Integration Journey


Q3/9M’17 Financial Review Based on Pro forma financial information as of 30 September

2017

01

02

03

04

30

31

Q3/9M’17 Summary Financials

1 - Year-to-date annualised; 2 - Restated net of National Housing Program loans and deposits

3 - Tangible equity is shareholders' equity net of Tier-1 capital notes, goodwill & intangibles

4 - Return on Average Tangible Equity, annualised; based on attributable profit to equity shareholders' excl. Tier-1 notes coupon (AED 346 Mn – 9M’17) and amortisation of intangibles

Income Statement - Summary (AED Mn) 9M'17 9M'16 YoY % Q3'17 Q2'17 QoQ % Q3'16 YoY %

Net interest Income 9,565 10,079 -5 3,182 3,180 0 3,350 -5

Fees & commissions, net 2,429 2,918 -17 788 860 -8 979 -20

FX and investment income, net 2,299 1,450 59 552 598 -8 581 -5

Other non-interest income 191 753 -75 89 49 82 558 -84

Total Operating Income 14,484 15,201 -5 4,611 4,686 -2 5,468 -16

Operating expenses (4,259) (4,370) -3 (1,344) (1,399) -4 (1,473) -9

Impairment charges, net (1,822) (2,074) -12 (562) (620) -9 (707) -21

Non Controlling Interests and Taxes (310) (289) 8 (100) (105) -5 (103) -4

Net Profit 8,093 8,468 -4 2,605 2,562 2 3,184 -18

Basic Earning per Share1 (AED) 0.95 1.00 -5 0.92 0.90 2 1.13 -19

Balance Sheet2 - Summary (AED Bn) Sep'17 Dec'16 Ytd % Jun'17 QoQ % Sep'16 YoY %

Loans and advances 328.3 334.4 -2 321.3 2 339.4 -3

Customer deposits 378.9 379.2 0 377.3 0 362.6 4

CASA (deposits) 112.4 108.5 4 113.5 -1 109.8 2

Total Assets 644.1 649.1 -1 624.6 3 634.4 2

Equity (incl Tier-1 capital notes) 99.1 97.0 2 96.6 3 91.4 8

Tangible Equity3 73.3 71.9 2 70.7 4 69.2 6

Key Ratios (%) 9M'17 9M'16YoY

(bps)

Net Interest Margin1 2.22 2.43 -21

Cost-Income ratio (ex-integration costs) 27.6 28.4 -80

Cost of Risk (bps)1 71 79 -8

Non-performing loans ratio 3.0 2.8 19

Provision coverage 109.0 118.5 -954

Loans-to-deposits ratio 86.6 93.6 -696

Return on Tangible Equity4 (RoTE) 14.3 15.9 -169

Return on Risk-w eighted Assets (RoRWA) 2.2 2.2 0

CET1 ratio 14.6 13.8 79

Capital Adequacy ratio 18.0 17.1 91

Nine Months Quarterly

32

Q3/9M’17 Key Performance Highlights

Solid 3rd quarter results with Net Profit up 2% sequentially; 9M’17 Group Net Profit up

2% yoy excluding gains on sale of properties

Solid risk-adjusted returns reflecting successful balance sheet optimisation

Excellent progress in integration journey, merger benefits materialising ahead of

plan

Strong fundamentals: healthy asset quality, ample liquidity and strengthened capital

position

On track to meet full year financial targets

RoRWA at 2.2%, stable yoy

33

Solid risk-adjusted returns reflecting successful

balance sheet optimisation

• Successful balance sheet optimisation led to

3% yoy reduction in RWAs while total

assets grew 2%

YoY Variance:

Headline: -4%

Adjusted: +2%

YoY Variance:

Headline: -18%

Adjusted: -4%

634.4 507.7

644.1 494.1

Total Assets RWAs

Sep'16 Sep'17

-3% +2%

2,711 2,601

473 4

3,184 2,605

Q3'16 Q3'17

Adj Group Net Profit Gains on sale of investment properties

7,928 8,059

540 34

8,468 8,093

9M'16 9M'17

In AED Mn

In AED Bn

• Solid risk-adjusted returns with RoRWA

managed stable yoy, a significant

achievement

9M’17 ACTUAL FY’17 GUIDANCE

LOAN GROWTH -3% Low single digit negative

CORE REVENUE1 GROWTH Headline revenue down 5% Flat

C/I RATIO (EX-INTEGRATION COSTS)

27.6% ~28%

COST OF RISK2 71bps 70-75 bps

ROTE3 14.3% ~ 14%

34

On track to meet full year financial targets

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

2 - Year-to-date annualised

3 - Return on Average Tangible Equity, annualised; based on attributable profit to equity shareholders' excl. Tier 1 notes coupon (AED 346Mn) and amortisation of intangibles

2,118

1,755 1,985

1,506 1,429

46% 55% 39% 57% 55%

27% 40% 58% 40% 39%

26% 5% 3%

3% 6%

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

Other income

Net FX & Investment income

Net fees and commission income 5,468

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

61% 66% 62% 68% 69%

39% 34% 38% 32% 31%

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

Net interest income Non-interest income

15,201 14,484

66% 66%

34% 34%

9M'16 9M'17

5,121 4,919

57% 49%

28% 47%

15% 4%

9M'16 9M'17

• Group Revenue managed at AED 14.5Bn reflecting softer

operating conditions yoy and substantial one-off property gains

booked in Q3’16

• 9M’17 NII down 5% yoy due to 21bps margin compression and

balance sheet optimisation towards higher-risk adjusted earning

assets

• Fees and commissions 17% lower yoy reflecting lower market loan

and trade activity compared to 2016.

• FX and investment income up 59% yoy on AFS investment gains

realised in Q1’17

35

Revenue trend reflects softer operating conditions

yoy and non-recurrence of property gains

Key Highlights Operating Income (AED Mn)

Non-interest Income (AED Mn)

-4%

Operating Income (AED Mn)

-5%

-16%

9M'17 9M'16 YoY % Q3'17 Q2'17 QoQ %

Net interest Income 9,565 10,079 -5 3,182 3,180 0

Fees & commissions, net 2,429 2,918 -17 788 860 -8

FX and investment income, net 2,299 1,450 59 552 598 -8

Other non-interest income 191 753 -75 89 49 82

Total Operating Income 14,484 15,201 -5 4,611 4,686 -2

1

1 - Includes gains on sale of investment properties

36

NIM positively impacted by rate hikes

Cost of Customer Deposits (%)

Key Highlights

Performing Loan Yields (%)

2.40

2.29

2.21 2.19

2.28

2.43 2.39

2.21 2.20

2.22

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

Group NIM (Qtr) Group NIM (YTD)

4.38

4.35 4.35

4.43

4.57

4.37

4.37 4.35

4.39

4.45

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

Performing Loans Yield (Qtr)

Performing Loans Yield (YTD)

0.72 0.73 0.74 0.74

0.78

0.71 0.71 0.74 0.74

0.76

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

Cost of Customer Deposits (Qtr)

Cost of Customer Deposits (YTD)

Net Interest Margin (%)

• Group NIM qoq: +9bps driven by asset repricing whilst funding

costs tightly managed as synergies are realised

• Group NIM yoy: -21bps reflecting margin compression due to

portfolio optimisation towards higher risk-adjusted earning assets

and dilutive impact from deployment of short-term excess liquidity

• Performing loan yields: +19bps yoy and +14bps qoq reflecting

corporate loan repricing following benchmark rate hike partly offset

by margin compression and BS mix change mainly in Personal

banking

• Cost of customer deposits: +4bps qoq and only +6bps yoy,

indicating realisation of funding cost synergies despite rate hikes

Note: All percentage figures are annualised

1,429 1,434 1,412 1,308 1,272

45 118 104 91 72

1,473 1,553 1,516 1,399 1,344

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

One-off Integration costs Operating expenses (ex-integration)

Disciplined cost management and strong synergy

realisation drive better operating efficiency

Key Highlights Cost-Income Ratio (ex-integration costs)

Operating Expenses (ex-integration costs) (AED Mn)

• Operating expenses (ex-integration costs) reduced 7% yoy and

3% qoq, reflecting disciplined cost management and realisation

of substantial synergies

• Cost synergies during the period were primarily driven by

headcount rationalisation and vendor savings

• Integration costs stood at AED 268Mn (including AED 72Mn in

Q3’17) and mainly relate to professional fees, severances and

re-branding

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

27.6%, improving from 28.4% in 9M’16

37

26.1

28.1

27.2

27.9 27.6

28.4 28.3

27.2 27.5 27.6

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

Qtr (%) YTD (%)

4,310 3,991

60 268

4,370 4,259

9M'16 9M'17

-7%

yoy

-3%

yoy

702 572 640 620 562

80

66 73 72

67

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

Impairment Charges, net Cost of Risk(bps)*

2,066 1,821

79

71

9M'16 9M'17

38

CoR benefits from RWA optimisation

Key Highlights

NPLs and Provisions (AED Mn)

Impairment Charges, net (AED Mn) & CoR

Provision Coverage & NPL ratio

• Impairment charges (net) down 12% yoy driven by higher

recoveries and lower collective impairment charges resulting

from balance sheet optimisation

• NPLs up 3% yoy primarily due to retail-led NPL formation

• NPL ratio improved sequentially by 19bps on the back of lower

NPLs coupled with higher loan balances

• Portfolio is adequately provisioned with coverage at 109%;

Collective provisions at 1.67% of Credit RWAs

• Annualised cost of risk at 71bps at lower end of 70-75bps full

year guidance

119 125 122 112 109

2.8 2.7 2.6

3.2 3.0


Provision Coverage (%) NPL Ratio (%)Sep'17 Jun'16 QoQ% Dec'16 YTD% Sep'16 YoY%

NPLs 10,233 10,497 -3% 9,280 10% 9,895 3%

Provisions 11,153 11,713 -5% 11,565 -4% 11,729 -5%

Specific 4,105 4,629 -11% 4,325 -5% 4,581 -10%

General 7,049 7,084 -1% 7,240 -3% 7,148 -1%

* annualised

93.6 88.2 87.6 85.2 86.6


39

Strong lending momentum in third quarter;

liquidity remains highly comfortable

Key Highlights Loans and Advances1 (AED Bn)

Customer Deposits1 (AED Bn)

Loan-to-deposit ratio1 (%)

Loans and advances1

• Loan book increased +2% qoq on the back of strong lending

momentum in 3rd quarter driven by selective trade finance lending

offering attractive risk-adjusted returns

• Loans were down -2% ytd as new origination was offset by balance

sheet optimisation and corporate repayments

Customer Deposits and other accounts1

• Customer deposits broadly stable qoq and ytd

• CASA grew 4% ytd to AED 112 Bn highlighting FAB’s strong deposit

franchise and leading cash management solution

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

ratio of 86.6%

• Sep-end 17 LCR stands above the Basel III glide path

1 - Restated net of National Housing Program loans and deposits

339.4 334.4 345.2 321.3 328.3


362.6 379.2 393.9 377.3 378.9


13.8% 13.3%

13.8% 14.4% 14.6%


CET1

13.8% 14.6%

2.1% 2.2%

1.1% 1.2%

CAR 17.1%

CAR 18.0%

Sep'16 Sep'17

CET1 AT1 Tier II

40

Strengthened capital position on RWA

optimisation

Key Highlights

Annualised RoTE2 (YTD)

Strong capital ratios

RWAs & Return on RWAs1

• Group capital position strengthened with CET1 ratio and total CAR

at 14.6% and 18.0% respectively (vs. 13.8% and 17.1% in Sep’16)

• Improvement in capital ratios primarily driven by RWA optimisation

• 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 14.3%, in line with full year

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

507.7 493.5 494.7 482.8 493.9

2.2% 2.3% 2.4% 2.2% 2.2%


RWAs RoRWA

15.9% 15.7%

16.1%

14.5% 14.3%

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

41

Segmental Performance

Corporate & Investment Banking (AED Mn)

Personal Banking (AED Mn)

• Resilient performance across the business despite subdued loan demand

and increased market volatility

• Headline revenue slightly down yoy (-2%) mainly due to lower market loan

and trade volumes compared to 2016

• Net profit up 4% yoy supported by provision reversals thanks to

optimisation of risk assets

• Market-leading CIB franchise recognised by numerous awards including

“Best Bank for Financing in the Middle East” and “Best Investment Bank in

the UAE” at the 2017 Euromoney Middle East Awards

• Revenues lower yoy (-8%) mainly due to slowdown in retail spending,

and competitive pressures

• Continued focus on optimising balance sheet mix by channeling liquidity

towards higher risk-adjusted earning assets

• Business consolidation post merger and related cost savings led to

notable reduction in operating expenses yoy

• Continuous focus on enhancing product offering and value proposition,

through innovation and digitisation

7,205 7,033

5,201 5,393

9M'16 9M'17

Operating Income Profit after taxes

1,516 1,641

5,129 5,573

9M'179M'16

Profit after taxes Operating Income

42

Segmental Performance (contd..)

Subsidiaries (AED Mn)

International (ex-UAE) (AED Mn)

• Revenues lower yoy (-37%) mainly due to lower interest in suspense

recoveries and non recurrence of property-related gains realised in

9M’16

• Net loss of AED 18Mn as a result of higher impairments reflecting

current economic cycle

• Integration of real estate and property management businesses was

completed; Integration of Islamic finance subsidiaries is underway

• The international business remains a key competitive advantage and

differentiator for FAB as a significant contributor to liquidity and risk

diversification

• 9M’17 revenues stood at AED 1.83 Bn, contributing 12.6% to the

Group’s total revenues

• International deposits grew 7% and represent 27% of Group’s total

deposits as of September-end 2017

1,468

921

655

(18)

9M'16 9M'17

Operating Income Profit after taxes

892 1,017

1,834 1,957

9M'179M'16

Profit after taxes Operating Income

Cash & CB Balances

18%

DFB and Reverse Repos

7%

Loans and Advances

51%

Investments 16%

Others 8%

4.6 4.5

58.8 58.6

184.5 183.9

77.5 71.0

22.3 23.3

Dec'16 Sep'17

Banking Sector

Personal/Retail Sector

Corporate/PrivateSector

Public Sector

Government Sector

UAE 80%

GCC 2%

Asia 5%

Europe 10%

MENA 2%

America 1%

Overdrafts 5%

Term Loans 60%

Trade related loans

8%

Real Estate 10%

Mortgage Loans 5%

Personal Loans 9%

Credit Cards 2%

Vehicle financing loans & others 0.4%

Agriculture 0.1%

Energy 5%

Manufacturing 6% Construction

4%

Real Estate 24%

Trading 7%

Transport and communication

8% Banks 7%

Other financial institutions 8%

Services 9%

Government 1%

Personal - Loans & Credit

Cards 21%

43

Asset & Loan Mix

Asset Mix Gross loans by counterparty1 (AED Bn)

Gross loans by economic sector1 Gross loans by product Net loans by geography2

AED 341.3 Bn

Sep’17

AED 328.3 Bn

Sep’17

AED 644.1 Bn

Sep’17

AED 341.3 Bn

Sep’17

341.3 347.7

1 - AED 13.6 Bn reclassified from Government to Corporate/Private sector and Real Estate category

2 - Based on booking centre

Sovereign 40%

GREs 23%

Covered Bonds 4%

Banks 21%

Corporate/ Pvt Sector

8%

Supranatl 4% Europe

18%

GCC 16%

MENA (ex-GCC&UAE)

5% USA 11% Others incl A&NZ

1%

Asia 16%

UAE 33%

AAA 13%

AA 33%

A 29%

BBB 12%

BB & below 8%

Unrated – Debt 2%

Equity & Funds 3%

HFT - Debt 18%

HFT - Equity & Funds

1%

Held to Maturity (Debt)

7%

AFS - Equity & Funds

2%

AFS - Debt 72%

44

Investment breakdown

Investments by type

Investments by counterparty

Investments by ratings

Investments by geography

AED 105.0 Bn

Sep’17

AED 105.0 Bn

Sep’17

AED 105.0 Bn

Sep’17 AED 105.0 Bn

Sep’17

45

Liability mix and Wholesale Funding

Liabilities mix

Wholesale funding maturity profile (AED Mn)

Wholesale Funding (AED Bn) Sep’17

Syndicated loan 7.3

Medium Term Notes/Bonds 36.9

Subordinated debt 0.4

Total 44.6

AED 544.6 Bn

Sep’17

7,330

2,842 5,898

7,910

7,124

13,085

2017 2018 2019 2020 2021 & Beyond

Syndicated Loan MTN/MTB

Due to Banks & Repos

12% Commercial

Paper 4%

Customer Deposits

70%

Term Borrowings &

Sub Debt 8%

Others 6%

UAE 73%

GCC 2%

Asia 2%

Europe 18%

MENA 3%

America 3%

46

Customer deposits

Customer deposits (AED Bn)

Customer deposits by geography1

Customer deposits by account type (AED Bn)

Customer deposits by Counterparty (AED Bn)

AED 378.9 Bn

Sep’17

30% 29% 29% 30% 30%

362.6 379.2 393.9 377.3 378.9


CASA (%) Total Customer Deposits

58.0 64.7

76.0 71.4

142.5 135.2

75.9 76.8

26.8 30.8

379.2 378.9

Dec'16 Sep'17

Government sector Public Sector

Corporate / private sector Personal/retail sector

Certificates of deposits

241.4 231.1

93.2 98.5 15.0 13.9 26.8 30.8 2.8 4.6

379.2 378.9

Dec'16 Sep'17

Notice and time deposits Current Accounts

Saving Accounts Certificates of deposits

Margin Accounts

1 - Based on booking centre

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