B EFORE WE BEGIN If you need any assistance, please ask our - - PowerPoint PPT Presentation

b efore we begin
SMART_READER_LITE
LIVE PREVIEW

B EFORE WE BEGIN If you need any assistance, please ask our - - PowerPoint PPT Presentation

A GENDA T IME S ESSION S PEAKER Andr Sayegh 09:00am 09:15am Opening Remarks Chief Executive Officer Hana Al Rostamani 09:15am 9:45am Session 1 Head of Strategy & Planning Amit Wanchoo 09:45am 10:15am Session 2 Head of


slide-1
SLIDE 1
slide-2
SLIDE 2

AGENDA

TIME SESSION SPEAKER 09:00am – 09:15am Opening Remarks André Sayegh Chief Executive Officer 09:15am – 9:45am Session 1 Hana Al Rostamani Head of Strategy & Planning 09:45am – 10:15am Session 2 Amit Wanchoo Head of Consumer Banking 10:15am – 10:30am Break Simon Penney

ANALYST & INVESTOR DAY 2013

10:30am – 11:00am Session 3 Simon Penney Head of Wholesale & International Banking 11:00am – 11:30pm Session 4 Christopher Wilmot Head of Treasury & Global Markets 11:30pm – 11:45pm Break 11:45pm – 12:15pm Session 5 Arif Shaikh Chief Risk Officer 12:15pm – 12:30pm Closing Remarks Karim Karoui Chief Financial Officer 12:30pm – 14:00pm Lunch Break 1/3

slide-3
SLIDE 3
  • If you need any assistance, please ask our Logistics Team identifiable

by red badges

  • Each 30-minute session includes at least 10mn for Q&As
  • Before the lunch break, please take a few minutes to fill in the

BEFORE WE BEGIN…

ANALYST & INVESTOR DAY 2013

  • Before the lunch break, please take a few minutes to fill in the

feedback form in order to enable us to improve future FGB IR events

  • Today’s presentation will be available via audio podcast within the

next few days

  • n
  • ur

dedicated Investor Relations website http://www.fgb.ae/en/investor-relations

2/3

slide-4
SLIDE 4

This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. No presentation ,express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, synergies, returns, benefits or statements in relation to future matters contained in the presentation. The forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on numbers or estimates or assumptions that are subject to change (and in many cases are

  • utside the control of FGB and its directors) which may cause the actual results or performance of FGB to be

materially different from any future results or performance expressed or implied by such forward looking statements.

DISCLAIMER

ANALYST & INVESTOR DAY 2013

statements. To the maximum extent permitted by law, FGB disclaims any responsibility for the accuracy or completeness

  • f any information contained in this presentation including any forward-looking statements and disclaims any

responsibility to update or revise any information or forward-looking statement to reflect any change in FGB’s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based. To the maximum extent permitted by law, neither FGB nor its related bodies corporate, directors, employees

  • r agents, nor any other person, accepts any liability, including, without limitation, any liability arising from

fault or negligence, for any direct, indirect or consequential loss arising from the use of this presentation or its contents or otherwise arising in connection with it. This presentation should be read in conjunction with other publicity available material. Further information including historical results and a description of the activities of FGB is available on our website, www.fgb.ae 3/3

slide-5
SLIDE 5

OPENING REMARKS

ANDRÉ SAYEGH – CHIEF EXECUTIVE OFFICER

slide-6
SLIDE 6

FGB’S JOURNEY IS ABOUT VALUE CREATION

  • Customer Centricity
  • Product Diversification
  • Customer Centricity
  • Product Diversification

RESILIENT B SUSTAINABLE AND DISCIPLINED GROWTH

REATION

SINCE YEAR 2000, FGB MARKET CAP EXPANDED FROM AED 560MN TO AED 50BN

ANALYST & INVESTOR DAY 2013

2000-2007 2008 - 2013 2013 onwards

  • Volumes
  • Volumes
  • Risk Management
  • Liquidity
  • Capital Adequacy
  • Efficiency
  • Risk Management
  • Liquidity
  • Capital Adequacy
  • Efficiency
  • Product Diversification
  • Geographic Diversification
  • Product Diversification
  • Geographic Diversification

STRONG GROWTH BUSINESS

MODEL

VALUE CR

1/2

1979…

Date of Establishment Date of Establishment

slide-7
SLIDE 7

FGB’s Position of Strength FGB’s Position of Strength

  • Disciplined growth
  • Efficient balance sheet

management

  • Disciplined growth
  • Efficient balance sheet

management

  • Enhanced Profitability
  • Enhanced Profitability

A STRONG BUSINESS… …DESIGNED TO DELIVER SUPERIOR PERFORMANCE… …AND DRIVE LONG TERM SHAREHOLDER VALUE

HOW WE ARE CREATING MORE VALUE

ANALYST & INVESTOR DAY 2013

Clear Strategy and Execution Plan across Streamlined Businesses Clear Strategy and Execution Plan across Streamlined Businesses management

  • Revenue growth and

diversification

  • Cost Efficiency
  • Strong portfolio quality

management

  • Revenue growth and

diversification

  • Cost Efficiency
  • Strong portfolio quality
  • Enhanced Profitability
  • Efficient and Prudent

Capital Deployment

  • Dividend Capacity
  • Enhanced Profitability
  • Efficient and Prudent

Capital Deployment

  • Dividend Capacity

2/2

slide-8
SLIDE 8

SESSION 1

HANA AL ROSTAMANI – HEAD OF STRATEGY & PLANNING

slide-9
SLIDE 9

TO BE RECOGNIZED AS A WORLD CLASS

ORGANIZATION MAXIMIZING VALUE FOR ALL STAKEHOLDERS OUR VISION

DEFINING STATEMENTS

ANALYST & INVESTOR DAY 2013

OUR MISSION

TO BE THE ‘FIRST’ CHOICE OF CUSTOMERS

1/11

slide-10
SLIDE 10

PEOPLE FOCUSED PASSION TO EXCEL

OUR CORE VALUES

ANALYST & INVESTOR DAY 2013

PARTNERSHIP WITH TRUST AND INTEGRITY PURSUIT OF INNOVATION

2/11

slide-11
SLIDE 11

2000 SEP’13 Deposits (AED Bn) 1.8 x74 132.6 Loans & Advances (AED Bn) 1.4 x90 126.9 Shareholders’ Equity (AED Bn) 0.5 x60 29.8 Market Capitalization (AED Bn) 0.56 x90 50.3 (1) Staff 174 1,159 Moody’s: A2

MEASURING OUR SUCCESS

ANALYST & INVESTOR DAY 2013

(1) Market cap at AED 50.3Bn by 20th of November 2013 (share price AED 16.75)

Rating BB + Moody’s: A2 Fitch: A+ (since 2007) International Presence UAE Only UAE, Libya, India, Qatar, Hong-Kong, Singapore

FGB TOOK OPPORTUNITIES OF MARKET GROWTH AND WEATHERED THE CYCLES OF

THE ECONOMY TO EMERGE AS ONE OF THE STRONGEST BANKS IN THE REGION

FGB TOOK OPPORTUNITIES OF MARKET GROWTH AND WEATHERED THE CYCLES OF

THE ECONOMY TO EMERGE AS ONE OF THE STRONGEST BANKS IN THE REGION

3/11

slide-12
SLIDE 12

 2nd by Earning per Share  2nd by Market Capitalisation  2nd by Net Profit  3rd by Equity

MARKET POSITIONING

ANALYST & INVESTOR DAY 2013

 3 by Equity  3rd by Customers’ Deposits  3rd by Assets  3rd by Loans and Advances

Data as of end of September 2013

4/11

slide-13
SLIDE 13

OUR CORE AND EMERGING BUSINESSES

ANALYST & INVESTOR DAY 2013

5/11

slide-14
SLIDE 14

EXPANDING GLOBAL PRESENCE

Qatar Singapore India Hong-Kong FGB-Libya

ANALYST & INVESTOR DAY 2013

Singapore 1 Subsidiary 2 Rep Offices 2 Branches Future rep offices 6/11

slide-15
SLIDE 15

DIVERSIFIED BUSINESS CONTRIBUTIONS

SEP’13 ASSETS BREAKDOWN SEP’13 REVENUE BREAKDOWN

T&GM 25% Real Estate activities 5% Other 2% T&GM 13% Real Estate 5% Other 1%

ANALYST & INVESTOR DAY 2013

Wholesale Banking 44% Consumer Banking 24% 25% Wholesale Banking 41% Consumer Banking 42% Data as of end of September 2013

7/11

slide-16
SLIDE 16

OUR STRATEGIC IMPERATIVES

  • Strengthen customer segmentation and intelligence
  • Expanding into new customer segments
  • Stronger competitive advantage
  • Strengthen customer segmentation and intelligence
  • Expanding into new customer segments
  • Stronger competitive advantage

BUILD A CUSTOMER

DRIVEN INSTITUTION

BUILD A CUSTOMER

DRIVEN INSTITUTION

DELIVER FULL-SERVICE DELIVER FULL-SERVICE

  • Further develop Wholesale Banking proposition
  • Further develop Wholesale Banking proposition

ANALYST & INVESTOR DAY 2013

PROPOSITION IN OUR CORE BUSINESSES PROPOSITION IN OUR CORE BUSINESSES

  • Further develop Wholesale Banking proposition
  • Strengthening of Consumer Bank proposition
  • Further develop Wholesale Banking proposition
  • Strengthening of Consumer Bank proposition

SPECIALIZATION TO

ENHANCE PERFORMANCE IN OUR EMERGING BUSINESSES

SPECIALIZATION TO

ENHANCE PERFORMANCE IN OUR EMERGING BUSINESSES

  • Islamic Banking Proposition (Aseel)
  • Expansion of Treasury and Global Markets
  • Islamic Banking Proposition (Aseel)
  • Expansion of Treasury and Global Markets

8/11

slide-17
SLIDE 17

OUR STRATEGIC IMPERATIVES

  • Strengthen Brand and reputation locally &

internationally

  • Strengthen Brand and reputation locally &

internationally

I B I B EXPAND OUR INTERNATIONAL

COVERAGE

EXPAND OUR INTERNATIONAL

COVERAGE

  • Grow Asia presence
  • Organic “Greenfield” growth
  • Grow Asia presence
  • Organic “Greenfield” growth

ANALYST & INVESTOR DAY 2013

  • Recognition in leading industry awards
  • 3rd strongest brand value in UAE (USD 780Mn)
  • Recognition in leading industry awards
  • 3rd strongest brand value in UAE (USD 780Mn)

INVEST IN OUR BRAND INVEST IN OUR BRAND

  • FGB Business School
  • Strong Employee Engagement Programme
  • Talent development
  • FGB Business School
  • Strong Employee Engagement Programme
  • Talent development

INVEST IN OUR PEOPLE

AND THEIR GROWTH

INVEST IN OUR PEOPLE

AND THEIR GROWTH

9/11

slide-18
SLIDE 18

OUR STRATEGIC IMPERATIVES

  • Operational efficiencies
  • Improved Customer Understanding
  • Continuous strategic investment in technology
  • Operational efficiencies
  • Improved Customer Understanding
  • Continuous strategic investment in technology

INVEST

IN OUR TECHNOLOGY

INVEST

IN OUR TECHNOLOGY

  • Superior return on risk managed basis
  • Continue to have best in class Governance Framework
  • Superior return on risk managed basis
  • Continue to have best in class Governance Framework

MAINTAIN PRUDENT RISK MANAGEMENT MAINTAIN PRUDENT RISK MANAGEMENT

ANALYST & INVESTOR DAY 2013

  • Continue to have best in class Governance Framework
  • Continue to strengthen Risk Management Framework
  • Continue to have best in class Governance Framework
  • Continue to strengthen Risk Management Framework

RISK MANAGEMENT

AND EFFECTIVE

CORPORATE GOVERNANCE RISK MANAGEMENT

AND EFFECTIVE

CORPORATE GOVERNANCE

  • Strong Balance Sheet
  • Consistent sustainable performance
  • Improved Shareholder Value
  • Strong Balance Sheet
  • Consistent sustainable performance
  • Improved Shareholder Value

ACHIEVE SUPERIOR FINANCIAL PERFORMANCE ACHIEVE SUPERIOR FINANCIAL PERFORMANCE

10/11

slide-19
SLIDE 19

OUTLOOK

MARKET POSITION

  • Maintain a strong UAE market

share

  • Comprehensive product and

service offering through Wholesale Banking, Consumer Banking, Treasury & Global Markets and Islamic Banking

MARKET POSITION

  • Maintain a strong UAE market

share

  • Comprehensive product and

service offering through Wholesale Banking, Consumer Banking, Treasury & Global Markets and Islamic Banking

FINANCIAL POSITION

  • Balanced & sustainable

financial model; focus on diversified income and funding

  • Financial Performance is among

the top three peer group

  • Superior balance sheet ratios &

profitability ratios

ANALYST & INVESTOR DAY 2013

QUALITATIVE INDICATORS

  • Pool of talent with diverse specialization
  • Strong customer centric corporate

culture

  • Top three position as a Leading Brand

in the ME

  • Best in class operational excellence

INTERNATIONAL MARKETS

  • Strong operational presence in Asia

and MENA through organic growth

  • Increase international contribution

to the overall business revenue 11/11

slide-20
SLIDE 20

Q&A

HANA AL ROSTAMANI – HEAD OF STRATEGY & PLANNING

slide-21
SLIDE 21

SESSION 2

AMIT WANCHOO – HEAD OF CONSUMER BANKING

slide-22
SLIDE 22

FGB CONSUMER BANK: A GROWTH STORY…

Profit CAGR: 12%

  • Op. Inc CAGR: 13%

1,866 2,405 2,850 2,914 2,968 2,498

1,522 1,626 1,767 ANALYST & INVESTOR DAY 2013

11 44 91 159 337 721

14 32 42 69 130 247 536 496 521 607 692 635 7 14 61 172 354 1,045 1,295 1,522 1,332

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9M'13

Operating Income Expenses Net Profit Amounts in AED Mn

1/11

slide-23
SLIDE 23

…AND A STRONG FRANCHISE

ANALYST & INVESTOR DAY 2013

Source: Published Financial Results

2/11

slide-24
SLIDE 24

DIVERSIFIED PORTFOLIO

Cards SBS 2,308 7% PIL 302 1% Mortgages 3,020 9% Wealth 2,066 7% Others 66 0%

TOTAL PORTFOLIO AED 32.10BN(1)

2,308 1,601 2,405

INCREMENTAL PORTFOLIO SINCE MAY 2011 (AED MN)

ABU DHABI GOVT. NATIONAL HOUSING LOANS AED 14.35BN ABU DHABI GOVT. NATIONAL HOUSING LOANS AED 14.35BN

ANALYST & INVESTOR DAY 2013 National Loans 20,245 63% Cards 4,095 13%

  • Portfolio increase in last 2 years primarily in Cards & SBS
  • Wealth portfolio increased by AED 1.6Bn
  • Portfolio increase in last 2 years primarily in Cards & SBS
  • Wealth portfolio increased by AED 1.6Bn

141

  • 576
  • 117

(1) As of Sept’13

3/11

slide-25
SLIDE 25

PRUDENT CREDIT WITH ADEQUATE PROVISIONS

  • Stable Loss rates
  • Safe industries and segments
  • Chase the Good & Avoid the

Bad

  • Stable Loss rates
  • Safe industries and segments
  • Chase the Good & Avoid the

Bad

ANALYST & INVESTOR DAY 2013

Bad

  • Credit Scoring framework
  • Close portfolio monitoring

Bad

  • Credit Scoring framework
  • Close portfolio monitoring

100% 100% 101% 101% 101% 101% 100% 100%

PROVISION COVERAGE 4/11

slide-26
SLIDE 26

POSITIVE UAE OUTLOOK

  • Economic activity and trade improving. Business confidence in the region will
  • strengthen. UAE considered safe haven.
  • Higher revenue from oil production, large increases in public spending will encourage

business momentum in UAE.

  • Abu Dhabi: Economic Vision 2030 – Roadmap for economic progress.
  • Tourism, Trade, Infrastructure, Healthcare, Construction, Private Sector showing robust

growth.

  • Economic activity and trade improving. Business confidence in the region will
  • strengthen. UAE considered safe haven.
  • Higher revenue from oil production, large increases in public spending will encourage

business momentum in UAE.

  • Abu Dhabi: Economic Vision 2030 – Roadmap for economic progress.
  • Tourism, Trade, Infrastructure, Healthcare, Construction, Private Sector showing robust

growth.

ANALYST & INVESTOR DAY 2013

  • Business environment, government support in SME Sector and confidence in real

estate, will benefit SME and Wealth Segments CONCERNS

  • Flight of capital
  • Real Estate bubble
  • Impact of Credit Bureau
  • Business environment, government support in SME Sector and confidence in real

estate, will benefit SME and Wealth Segments CONCERNS

  • Flight of capital
  • Real Estate bubble
  • Impact of Credit Bureau

5/11

slide-27
SLIDE 27

CONSUMER STRATEGY

ECONOMIC MODEL BUSINESS MODEL CULTURAL MODEL

  • Focus on customer

segments

  • Build customer driven

institution

  • Build a customer driven

culture

  • Create differentiation

through marketing

  • Leverage Technology

innovation to enhance customer experience

  • Build people capability.
  • Reengineer key processes

ANALYST & INVESTOR DAY 2013

  • Build additional customer

deposits to cover Asset/Liability gap

  • Reengineer key processes
  • Branches as showrooms

focusing on sales and advice

  • Diversity and fresh thinking.
  • Controlled growth driven by

risk analytics, pragmatic credit policy, responsible collections

  • Investing for the future

while relentlessly focusing

  • n cost

6/11

slide-28
SLIDE 28

SEGMENTED CUSTOMER VALUE PROPOSITION

 Lifestyle experiences  Research based advice through dedicated RM  Offshore Linkage  Value for money experiences  Virtual Relationship Manager

Affluent AED 40K+ P.M.

  • r AUM AED 350K+

Market Share 5%

AED 20K <40K SALARY

Affluent Value Proposition  Wealth Management Solutions – Insurance and Investments  SME & Mortgage Bundle  World Elite Debit/Infinite Credit Card Mass Value Proposition  Employee Banking  Personal Loans

PROPOSITION AND BUNDLES CUSTOMER EXPERIENCE SBS

Market share 5%

SBS Bundle with enhanced CX through technology

1 4 2 3

ANALYST & INVESTOR DAY 2013  Virtual Relationship Manager  Privileged experiences  Streamlined product fulfillment  Tiered benefits to encourage relationship expansion  Mobile Banking  Alternate channels  Facebook Banking

SALARY Market share 10% AED 5K <20K SALARY Market share 7.3% <AED 5K SALARY NON-BANKABLE

 Personal Loans  Credit Cards  Insurance

WPS

Lower Mass Value Proposition  Employee Banking  Endowment Plans  Personal Loan  Mass Credit Card  Low value Insurance

7/11

slide-29
SLIDE 29

CONSUMER BANKING TRANSFORMATION

CUSTOMER EXPERIENCE MARKETING TECHNOLOGY

3 KEY ELEMENTS

ANALYST & INVESTOR DAY 2013

 Leverage Technology innovation to gain product & pricing efficiencies and raise customer experience.  Create differentiation through Segment, Analytics, Cross Sell, Partnership /Alliances, Digital, Corp

  • rate Payroll.

 Build customer driven institution.  Enhance overall service across segments and channels.

TO PROVIDE A CLEAR FRAMEWORK TO FIND EFFICIENCIES IN OUR PORTFOLIOS,

CLIENT SEGMENTS AND ACHIEVE A HIGHER DISCIPLINE IN CAPITAL

& RESOURCE ALLOCATION

8/11

slide-30
SLIDE 30

DIGITALIZATION AND MOBILE TECHNOLOGY

 User Interfaces Change  Enhanced Feature  Personal Financial  Enhanced Banking Features  Mobile Wallet  Personal Financial  User Interface Re- Design & Branding  Social Banking  Content Management

INTERNET BANKING MOBILE PLATFORM ECOSYSTEM WEBSITE/ MICRO SITES

ANALYST & INVESTOR DAY 2013

 Personal Financial Management & 360 View  Live Assistance  Personal Financial Management  Value Added Services  Content Management CHANGING CUSTOMER BEHAVIOUR CHANGING CUSTOMER BEHAVIOUR RAPID CHANGES IN TECHNOLOGY RAPID CHANGES IN TECHNOLOGY

9/11

slide-31
SLIDE 31

CREATING DIFFERENTIATION

WHOLESALE/ EMPLOYEE BANKING PARTNERSHIPS

AND

ALLIANCES One bank value proposition Ferrari, MASDAR, Manchester City

ANALYST & INVESTOR DAY 2013

ANALYTICS & RESEARCH DIGITAL MARKETING Predictive modeling, Pricing Campaign Management Drive digital sales & Channel partnerships

10/11

slide-32
SLIDE 32

IN SUMMARY…

BUILD ON STRONG CUSTOMER FRANCHISE CONTINUE TO DIVERSIFY PORTFOLIO / REVENUE BASE

ANALYST & INVESTOR DAY 2013

MAINTAIN TIGHT COST & RISK DISCIPLINE INVEST FOR THE FUTURE – TECHNOLOGY, MARKETING, CUSTOMER EXPERIENCE

11/11

slide-33
SLIDE 33

Q&A

AMIT WANCHOO – HEAD OF CONSUMER BANKING

slide-34
SLIDE 34
slide-35
SLIDE 35

SESSION 3

SIMON PENNEY – HEAD OF WHOLESALE AND INTERNATIONAL BANKING

slide-36
SLIDE 36

Formation of Wholesale Banking Group Focus on differentiating and diversifying the client base Solid foundation anchored in the UAE with evolving international presence

WBG KEY THEMES

ANALYST & INVESTOR DAY 2013

Increase contribution from International Banking Align control and support functions to ensure consistently high service levels Invest in core products to diversify revenue streams

1/11

slide-37
SLIDE 37

AED 3,051Mn AED 2,458Mn

ROBUST AND CONTINUOUS REVENUES GROWTH

ANALYST & INVESTOR DAY 2013

AED 1,424Mn 2008 2009 2010 2011 2012 9M'13 2/11

slide-38
SLIDE 38

AN AWARD-WINNING FRANCHISE

2013 Emal Phase II MLA USD 2,925Mn Project Finance 2013 Aldar Etihad JV Sole Bookrunner 2013 Etihad USD 350Mn Aircraft Financing 2013 Giti Global Singapore 2013 Gunvor 2013 Octal Petrochemicals 2013 Aldar USD Reg S Sukuk JLM & Bookrunner Current Tata Motors MLAB USD 500Mn Term Loan

ANALYST & INVESTOR DAY 2013

MLA 2013 Fujairah Oil Terminal MLA USD 250Mn Project Finance MLA USD 420Mn Structured Finance 2013 Gulf Marine Services USD 340Mn Structured Finance 2013 Taqa MLA USD 2,500Mn Revolving Facility MLA & Bookrunner USD 120Mn Trade Facilities MLA & Bookrunner USD 950Mn Revolving Facility MLA USD 565Mn Term Facility Sole Bank 2013 Major Korean EPC USD 285Mn Project Guarantee

3/11

slide-39
SLIDE 39

DIVERSIFICATION IS KEY

PRODUCT DIVERSIFICATION

  • Establish core product capabilities
  • Treasury & Global Markets
  • Global product teams
  • Maximize cross sell across FGB Group

CLIENT DIVERSIFICATION

  • Focused resource allocation
  • Increase share of wallet
  • Acquire new clients
  • Account planning and wallet sizing
  • Introduce Global Relationship Managers

ANALYST & INVESTOR DAY 2013

INTERNATIONAL DIVERSIFICATION

  • Establish one operating model globally
  • Centered on clients' cross border trade and

finance needs

  • Selectively enter new markets
  • Disciplined strategy for non-presence countries

4/11

slide-40
SLIDE 40

SIGNIFICANT OPPORTUNITY IN THE UAE

Very Large Large TURNOVER RANGE (AED MN)

500

8.5 5.4 REVENUE POOL (AED BN)

TARGET MARKET ESTIMATED AT AED 18BN IN REVENUES IN THE UAE

> 500 ANALYST & INVESTOR DAY 2013

Medium Small

100 10 <10

27 7.1 6.8

Source: Dubai Chamber of Commerce, BCG

5/11

slide-41
SLIDE 41

INTRODUCE CORPORATE CLIENT SEGMENTATION

Corporate & Investment Banking

  • Revenue potential
  • Multi-product
  • Cross-border
  • Solutions need

CRITERIA NEW BUSINESS UNIT

20%

ANALYST & INVESTOR DAY 2013

80% Corporate Banking

  • Core client portfolio
  • Working capital led
  • Transaction banking
  • Domestic focus

6/11

slide-42
SLIDE 42

EXPAND PRODUCT CAPABILITIES

EXISTING CAPABILITY NEW CAPABILITY

DEBT MARKETS

  • Limited primary origination
  • Limited structured finance
  • Limited loan distribution

capability

  • Establish Debt Markets unit
  • Primary origination
  • DCM
  • Structured finance
  • Distribution focus

GLOBAL TRANSACTION SERVICES

  • Vanilla cash & trade
  • Limited online capability
  • Limited in-house expertise
  • Establish Global Transaction Services
  • Advisory & solutions trade focus
  • Investment in channels
  • Combine with financial institutions

ANALYST & INVESTOR DAY 2013

  • Combine with financial institutions

ISLAMIC FINANCE

  • Limited distribution reach
  • Limited product offer
  • Limited in-house expertise
  • Establish Islamic platform
  • Full range of Islamic products
  • Standardized Islamic proposition

CORPORATE FINANCE

  • Limited

capability

  • Establish Corporate Finance unit
  • Corporate advisory
  • Complimentary with Debt Markets

TREASURY & GLOBAL MARKETS To be covered in subsequent presentation

7/11

slide-43
SLIDE 43

INTERNATIONAL TRADE OPPORTUNITY

RANK 2010 2030 Japan India

TRADE CORRIDORS (% OF GLOBAL TRADE IN 2030 AND 2050) UAE EXPORT (TOP 5 EXPORT DESTINATIONS)

  • MID. EAST – EM. ASIA

INTRA-ASIA 23.8% / 27.4%

1 2

ANALYST & INVESTOR DAY 2013

India Turkey Korea China Singapore Japan China Korea

  • MID. EAST – EM. ASIA

4.2% / 5.8% 23.8% / 27.4% AFRICA – EM. ASIA 3.3% / 6.0%

2 3 4 5 8/11

slide-44
SLIDE 44

INTEGRATED GLOBAL OPERATING MODEL

DUBAI & NE I F I F DEBT MARKETS DEBT MARKETS GLOBAL TRANSACTION SERVICES GLOBAL TRANSACTION SERVICES INTERNATIONAL NETWORK FIG FIG ABU DHABI Corporate Bank Corporate Bank

  • rate Investment Bank
  • rate Investment Bank

Corporate Bank Corporate Bank

  • rate Investment Bank
  • rate Investment Bank

Singapore Hub Singapore Hub India India Libya Libya Qatar Qatar New Countries New Countries

  • n-Presence Countries
  • n-Presence Countries

ANALYST & INVESTOR DAY 2013

ISLAMIC FINANCE ISLAMIC FINANCE TREASURY & GLOBAL MARKETS TREASURY & GLOBAL MARKETS CORPORATE FINANCE CORPORATE FINANCE Corpor Corpor Corpor Corpor

CONTINUED FOCUS ON:

  • ALIGNING CONTROL AND SUPPORT FUNCTIONS
  • AND RISK MANAGEMENT

CONTINUED FOCUS ON:

  • ALIGNING CONTROL AND SUPPORT FUNCTIONS
  • AND RISK MANAGEMENT

Non Non

9/11

slide-45
SLIDE 45

ALIGNING CREDIT RISK AND STRATEGY

  • Strong focus on target markets
  • One credit risk model across WBG
  • Focus on industry and obligor caps to manage concentration risk

globally

  • Strong focus on target markets
  • One credit risk model across WBG
  • Focus on industry and obligor caps to manage concentration risk

globally

ANALYST & INVESTOR DAY 2013

  • Risk adjusted return criteria rolled out to aid decision making
  • Credit risk resources aligned with WBG strategy
  • Risk adjusted return criteria rolled out to aid decision making
  • Credit risk resources aligned with WBG strategy

10/11

slide-46
SLIDE 46

WBG KEY THEMES

Formation of Wholesale Banking Group Focus on differentiating and diversifying the client base Solid foundation anchored in the UAE with evolving international presence

ANALYST & INVESTOR DAY 2013

Increase contribution from International Banking Align control and support functions to ensure consistently high service levels Invest in core products to diversify revenue streams

11/11

slide-47
SLIDE 47

Q&A

SIMON PENNEY – HEAD OF WHOLESALE AND INTERNATIONAL BANKING

slide-48
SLIDE 48

SESSION 4

CHRISTOPHER WILMOT – HEAD OF TREASURY & GLOBAL MARKETS

slide-49
SLIDE 49

T&GM KEY THEMES

Strengthened and Diversified Funding Profile Transform our Treasury function into a Global Markets Business Capitalise on Opportunities presented by the retrenchment of International players

ANALYST & INVESTOR DAY 2013

Expand Synergies with Wholesale Banking and Consumer Banking Groups Invest in Technology to support the expansion of our product offering Solutions based approach to client coverage

1/6

slide-50
SLIDE 50

UPWARD REVENUE TREND SINCE 2010

AED 810Mn AED 771Mn

ANALYST & INVESTOR DAY 2013

AED 437Mn 2008 2009 2010 2011 2012 9M'13 2/6

slide-51
SLIDE 51

FUNDING PROFILE

  • Comfortable LD ratios at WBG and CBG level
  • Comfortable LD ratios at WBG and CBG level

Strengthened funding position Strengthened funding position

77% 80% 79% 83% 195% 191% 154% 134%

ANALYST & INVESTOR DAY 2013

  • Reduced reliance on Short Term funding
  • 35% of funding target of Medium Term

assets through Medium Term liabilities

  • Diversification of Medium Term funding base
  • Reduced reliance on Short Term funding
  • 35% of funding target of Medium Term

assets through Medium Term liabilities

  • Diversification of Medium Term funding base

Improved maturity profile Improved maturity profile

Dec'10 Dec'11 Dec'12 Sep'13 LDR - Wholesale Bank LDR - Consumer Bank

3/6

slide-52
SLIDE 52

OUR VISION OF A SOLID T&GM BUSINESS

SALES

PRODUCT DEVELOPMENT AND STRUCTURING MONEY MARKET/ ALM PROPRIETARY INVESTMENT ASSET MANAGEMENT

ANALYST & INVESTOR DAY 2013

TRADING ISLAMIC RESEARCH

“FULL SERVICE”

4/6

slide-53
SLIDE 53

THREE-YEAR ACTION PLAN

Service Centre Approach Service Centre Approach Limited Product Breadth Limited Product Breadth UAE centric, middle market client focus with high business concentration UAE centric, middle market client focus with high business concentration Client-centric, Solution-driven sales approach Client-centric, Solution-driven sales approach Cross-asset product suite, including Islamic & eCommerce solutions Cross-asset product suite, including Islamic & eCommerce solutions Diversified client base across GCC & Asia, with high growth rates in new and multi- product relationships Diversified client base across GCC & Asia, with high growth rates in new and multi- product relationships

PRE-2012 BY 2015

ANALYST & INVESTOR DAY 2013

Intermediary model, limited warehousing

  • f risk

Intermediary model, limited warehousing

  • f risk

No research capability No research capability Internally Managed investment portfolio Internally Managed investment portfolio product relationships product relationships Structuring & Trading capability with global cross asset market coverage 24/6 Structuring & Trading capability with global cross asset market coverage 24/6 Publication of FGB ‘House View’ Publication of FGB ‘House View’ Establish Asset Management Business Establish Asset Management Business

5/6

slide-54
SLIDE 54

2014 INITIATIVES

  • Expand Synergies with WBG and CBG
  • Strengthen and Diversify Client Relationships
  • Expand Synergies with WBG and CBG
  • Strengthen and Diversify Client Relationships

AMBITIOUS SET OF ACTIONS… …DESIGNED TO MEET OUR MAIN OBJECTIVES

Enhanced Global Markets Experience Enhanced Global Markets Experience

ANALYST & INVESTOR DAY 2013

  • Upgrade Infrastructure
  • Expand Product Offering to include eCommerce

solutions

  • Launch Research Platform
  • Initiate Asset Management Implementation
  • Upgrade Infrastructure
  • Expand Product Offering to include eCommerce

solutions

  • Launch Research Platform
  • Initiate Asset Management Implementation

Diversification of Revenue Streams Diversification of Revenue Streams Sustainable Growth Sustainable Growth

6/6

slide-55
SLIDE 55

Q&A

CHRISTOPHER WILMOT – HEAD OF TREASURY & GLOBAL MARKETS

slide-56
SLIDE 56
slide-57
SLIDE 57

SESSION 5

ARIF SHAIKH – CHIEF RISK OFFICER

slide-58
SLIDE 58

We operate in the right geographies that have robust growth outlook and strong underlying fundamentals While we scale new heights; we remain focused on the basics – strong capital and liquidity, robust portfolio quality, diligent risk

KEY THEMES

ANALYST & INVESTOR DAY 2013

management and pro-active approach towards regulatory requirements At the core is a robust governance and enterprise risk management framework to manage diverse risks in an integrated manner across the Group & partner business in achievement of Group objectives

1/13

slide-59
SLIDE 59
  • Real GDP growth expected to be c. 3.5%; Non oil GDP growth to stay robust

at c. 4%+

  • Strong outlook for traditional non oil sectors in the backdrop of strong links

with Asia and UAE’s safe heaven status in MENA

  • Improved sentiment on Dubai debt critical for refinancing needs
  • Abu Dhabi infrastructure spending to continue

UAE ECONOMIC OUTLOOK

ANALYST & INVESTOR DAY 2013

  • High returns in equity markets; Improved Real estate sentiment (to be kept

under watch)

  • Significant improvement in capital market access and liquidity
  • Steady

improvement in credit growth; however, restructuring & debt repayment burdens to persist

  • New measures towards strengthening of regulatory environment in the

pipeline

2/13

slide-60
SLIDE 60

WHILE WE HAVE DEMONSTRATED ROBUST GROWTH, WE’VE ALWAYS FOCUSED ON

RISK FUNDAMENTALS AS WELL

CBUAE Threshold BII / BIII Threshold 2010 2011 2012 H1’ 13 Q3 ’13 Capital CAR > 12% > 8% 23.0% 21.1% 21.1% 19.2% 19.5% CE - T1 Ratio

  • > 4.5%

16.2% 17.3% 15.0% 15.7% 15.7% Tier I Ratio > 8% > 6% 19.3% 17.3% 17.7% 18.4% 18.5%

FGB’S KEY RISK INDICATORS

ANALYST & INVESTOR DAY 2013

Tier I Ratio > 8% > 6% 19.3% 17.3% 17.7% 18.4% 18.5% Leverage Ratio

  • > 3%

11.6% 10.9% 10.6% 10.7% 10.7% Liquidity Regulatory LD Ratio < 100%

  • 80.2%

84.5% 79.1% 84.6% 81.3% LCR

  • > 60%
  • 58.9%

76.3% 77.3% 113.2% USRR < 100%

  • 91.3%

95.1% 98.8% 94.5% Quality NPL Ratio

  • 3.7%

3.4% 3.3% 3.6% 3.9% Provision Coverage

  • 98.4%

98.4% 96.1% 80.1% 75.1%

3/13

slide-61
SLIDE 61

TO ESTABLISH BEST IN CLASS ENTERPRISE RISK MANAGEMENT (ERM) FRAMEWORK

ALIGNED WITH GROUP’S VISION TO DRIVE CONSISTENT SHAREHOLDER VALUE.

  • Comprehensive Risk Appetite framework aligned with Strategic Objectives of the

Group

  • Continuous monitoring of Group’s Risk Profile to ensure it remains within risk

appetite

ERM STRATEGIC IMPERATIVES

OUR RISK MANAGEMENT VISION

ANALYST & INVESTOR DAY 2013

  • Implementation of Sound Governance Framework for adequate accountability and

responsibility

  • Continuous Review and Enhancement in risk management standards in line with

external environment and expectations of shareholders

  • Implementation of Comprehensive Technology & MIS framework for effective risk

management

  • Full Compliance with all relevant Regulatory Requirements
  • Continuous Benchmarking with International Best Practices

4/13

slide-62
SLIDE 62

ERM FRAMEWORK ERM FRAMEWORK

SOUND RISK APPETITE FRAMEWORK SOUND RISK APPETITE FRAMEWORK CLEAR RISK POLICY FRAMEWORK CLEAR RISK POLICY FRAMEWORK COMPLIANCE WITH REGULATORY REQUIREMENTS COMPLIANCE WITH REGULATORY REQUIREMENTS STRONG CORPORATE

AND RISK

GOVERNANCE STRONG CORPORATE

AND RISK

GOVERNANCE

ATERIAL RISKS ATERIAL RISKS

INVESTMENT IN RISK CAPABILITIES & RESOURCES INVESTMENT IN RISK CAPABILITIES & RESOURCES

HOLISTIC ERM FRAMEWORK

ANALYST & INVESTOR DAY 2013

F

REQUIREMENTS REQUIREMENTS ROBUST RISK TECHNOLOGY AND PROCESSES ROBUST RISK TECHNOLOGY AND PROCESSES ENHANCED RISK ANALYTICS ENHANCED RISK ANALYTICS COMPREHENSIVE MIS FOR EFFECTIVE

MONITORING

COMPREHENSIVE MIS FOR EFFECTIVE

MONITORING

ALL BUSINESS AND SUPPORT FUNCTIONS OF FGB GROUP ALL BUSINESS AND SUPPORT FUNCTIONS OF FGB GROUP ALL MAT ALL MAT

5/13

slide-63
SLIDE 63

STRONG & INDEPENDENT GOVERNANCE FRAMEWORK COVERING ALL MATERIAL

RISKS ACROSS THE GROUP

Board of Directors Board of Directors Board Committees Board Committees

Executive Committee Risk & Compliance Management Committee Remuneration & Nomination Committee Audit Committee

STRONG CORPORATE RISK GOVERNANCE

ANALYST & INVESTOR DAY 2013

Management Committees Management Committees

Credit Risk Wholesale Banking Credit Committee

Enterprise Risk Management Group Enterprise Risk Management Group

Compliance & Ops Risk Committee dit Consumer Banking Credit Committee HR Steering Committee Asset Liability Committee Real Estate Committee Investment Committee IT Steering Committee Head of Enterprise Risk Management Market Risk ALM Risk Operational Risk Compliance Risk Basel II / III Group CRO ERM

6/13

slide-64
SLIDE 64

STRONG CAPITAL BASE TO SUPPORT BUSINESS EXPANSION, FULFILL REGULATORY

REQUIREMENTS AND MAINTAIN STRONG CREDIT RATINGS

  • Capital

plans are drawn up annually and are approved by the Board

  • The

plan ensures availability

  • f

5.3 7.4 8.2 8.9 9.5 9.3 0.7 2.0 0.2 1.8 23.0% 21.1% 21.1% 19.2% 19.5% 18% 20% 22% 24% 10 20 30 40

Basel II Pillar I CAR*

STRONG CAPITAL BASE

ANALYST & INVESTOR DAY 2013

adequate levels and optimum mix

  • f various components of capital;

this is to take care of all scenarios

  • The

Group maintains sufficient surplus capital even under extreme stress scenarios

15.3 17.4 18.2 18.9 19.5 29.3 30.7 32.0 30.2 31.8 16% 2010 2011 2012 H1' 13 Q3' 13 Pillar 1 Capital Demand Total Capital Capital Adequacy Ratio (Pillar 1)

* Capital adequacy decreased in 2013 due to repayment of Tier II Capital All absolute figures in AED B

Pillar II Surplus Capital 2010 2011 2012 Q3’ 13 Moderate Stress 7.72 8.04 8.34 6.36 Extreme Stress 5.61 6.56 5.51 3.79

(left axis) (left axis) (right axis)

7/13

slide-65
SLIDE 65

ROBUST LIQUIDITY MANAGEMENT TO MEET THE TARGETED BALANCE SHEET

GROWTH STRATEGY

  • Continuous assessment of

structural liquidity (Liquidity Ratios, Liquidity Gaps)

  • Periodic

stress testing based

  • n

76.3% 77.3% 113.2% 0% 30% 60% 90% 120%

Liquidity Coverage Ratio (LCR)

(As per revised BASEL III Guideline issued in Jan 2013)

ROBUST LIQUIDITY

ANALYST & INVESTOR DAY 2013

  • Periodic

stress testing based

  • n

multiple scenarios (Bank specific and market specific scenarios)

  • Detailed contingency funding plan

(Maintenance

  • f

adequate high quality liquid assets and lines with CBUAE)

0% Q1 13 Q2 13 Q3 13

LCR consistently above the glide path prescribed by Basel LCR consistently above the glide path prescribed by Basel

80.2% 84.5% 79.1% 84.6% 81.3% 96.8% 101.2% 96.1% 99.4% 95.7% 50% 70% 90% 110% 2010 2011 2012 H1' 13 Q3' 13

Advances to Stable Deposit Ratio (Regulatory) Loans to Deposit Ratio (Internal)

LD ratio (Regulatory & Internal)

8/13

slide-66
SLIDE 66

ACTIVE PORTFOLIO MANAGEMENT WITH STRONG CONTROLS OVER DELINQUENCIES

AND NPLS ALONG WITH ADEQUATE PROVISION COVERAGE

  • Well diversified lending portfolio

across wide range of products, industries & customer segments

3.7% 3.4% 3.3% 3.6% 3.9% 89.4% 105.1% 96.1% 80.1% 75.1% 0% 30% 60% 90% 120% 2010 2011 2012 H1' 13 Q3' 13 0% 4% 8% 12%

Lending Portfolio

HEALTHY PORTFOLIO QUALITY

ANALYST & INVESTOR DAY 2013

  • Strong limits framework both at

counterparty level as well as portfolio level

  • Stability in the NPL levels
  • Bi-annual review by CBUAE &

external auditor

Investment Book Quality

13.4 18.5 16.9 16.2 16.3 87.0% 85.6% 78.4% 79.5% 77.6% 0% 25% 50% 75% 100% 2010 2011 2012 H1' 13 Q3' 13 5 10 15 20 Total Investment Book Investment Grade 2010 2011 2012 H1' 13 Q3' 13 NPL Ratio Provision Coverage (left axis) (right axis) (left axis) (right axis)

9/13

slide-67
SLIDE 67

PRUDENTIAL REGULATIONS AML & SANCTIONS

 Proactive Basel II compliance well ahead of timelines  Compliance &  Proactive Basel II compliance well ahead of timelines  Compliance &  Customer

  • nboarding

 Transaction monitoring  Customer

  • nboarding

 Transaction monitoring

COMPREHENSIVE

INTEGRATED COMPLIANCE AND INFORMATION SECURITY FRAMEWORK ACROSS THE GROUP (UAE AND ALL INTERNATIONAL LOCATIONS)

  • Secure access
  • Email controls (spam, viruses)

CUSTOMERS

  • Connect to FGB networks for

VENDORS /

COMPLIANCE & INFORMATION SECURITY

ANALYST & INVESTOR DAY 2013

Extraterritorial Regulations

 FATCA  UK Bribery Act  International

  • versight

 FATCA  UK Bribery Act  International

  • versight

 Compliance & Product reviews  Compliance protocols  Compliance & Product reviews  Compliance protocols monitoring  STR reporting  Payment screening  Policy management monitoring  STR reporting  Payment screening  Policy management

  • Connect to FGB networks for

support, no data copying

VENDORS / PARTNERS

  • Data leakage prevention
  • Prevention from malicious code

STAFF

  • Multiple firewalls against

network intrusions

  • Active monitoring of hack

attempts

HACKERS / EXTERNAL

THREATS

10/13

slide-68
SLIDE 68
  • Impact of slowdown in emerging markets
  • n oil prices and regional trading sector
  • Impact on fiscal spending amid renewed

global recession or oil price shocks  Clear strategy for non presence countries and business growth in APAC  Diversification into

  • ther

high growth sectors

BUSINESS CHALLENGES

LOOKING AHEAD – KEY CHALLENGES

ANALYST & INVESTOR DAY 2013

  • Re-creation of asset bubbles (imprudent

risk taking & re-leveraging amidst loose liquidity)

  • Impact on GRE debt re-financing with

continued recession in the EU area

  • Continued pressure on lending margins

 Strict implementation of portfolio limits and policy measures  Implementation

  • f

risk pricing and capital allocation based on risk adjusted returns  Focus towards fee based income & build up of product portfolio to enhance cross- sell

11/13

slide-69
SLIDE 69
  • Large

Exposure Caps: Limits

  • n

exposure to various counterparty types

  • Restrictions

in the consumer banking segment (borrowing limits, DBR, LTV etc.)  FGB within defined thresholds; continued diversification to ensure compliance  Enhanced focus towards SME and Wealth Management segments

LOOKING AHEAD – KEY CHALLENGES

REGULATORY CHALLENGES (LOCAL & GLOBAL)

ANALYST & INVESTOR DAY 2013

etc.)

  • Restrictions on mortgage lending
  • Basel III: Enhanced capital & liquidity

standards for higher stability & liquidity

  • FATCA: Account monitoring & disclosures

for US citizens (to start in 2014)  Selective mortgage lending based

  • n

market inputs at the most granular level  FGB in compliance with Basel III standards; continued efforts for further enhancements  FATCA gap analysis completed and system implementation planned for 2014

12/13

slide-70
SLIDE 70

We have a robust business model that has delivered continuous shareholder value We have always focused on strong risk fundamentals and have put in place a comprehensive ERM framework to complement the business model

IN SUMMARY…

ANALYST & INVESTOR DAY 2013

We are closely monitoring the dynamic business environment and associated risks and are further enhancing the ERM framework Finally, we stay firmly committed towards ensuring sustained value creation for our shareholders

13/13

slide-71
SLIDE 71

Q&A

ARIF SHAIKH – CHIEF RISK OFFICER

slide-72
SLIDE 72

CLOSING REMARKS

KARIM KAROUI – CHIEF FINANCIAL OFFICER

slide-73
SLIDE 73

LINKING STRATEGY TO PERFORMANCE

STRATEGY MEDIUM-TERM EXPECTATIONS

  • Relationship deepening to

drive revenue stream diversification

  • Relationship deepening to

drive revenue stream diversification

  • Disciplined growth
  • Disciplined growth
  • Higher fee income contribution
  • Higher fee income contribution
  • Low double-digit growth
  • Liquidity ratios (regulation)
  • Low double-digit growth
  • Liquidity ratios (regulation)

BALANCE SHEET MANAGEMENT BALANCE SHEET MANAGEMENT REVENUES REVENUES

ANALYST & INVESTOR DAY 2013

  • Invest in our people and

infrastructure

  • Invest in our people and

infrastructure

  • Cost-to-income ratio below 25%
  • Cost-to-income ratio below 25%
  • Drive higher returns
  • Drive higher returns
  • RoE @ 18%
  • RoE @ 18%
  • Monitor capital consumption
  • Monitor capital consumption
  • Tier 1 ratio @ 15%
  • Tier 1 ratio @ 15%

EFFICIENCY EFFICIENCY PROFITABILITY PROFITABILITY CAPITAL CAPITAL

1/1

slide-74
SLIDE 74

THANK YOU FOR YOUR ATTENTION