FGB Investor Presentation November 2016 1/48 Disclaimer This - PowerPoint PPT Presentation

FGB Investor Presentation November 2016 1/48

Disclaimer 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 outside 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. To the maximum extent permitted by law, FGB disclaims any responsibility for the accuracy or completeness of 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 or 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 publicly available material. Rounding differences may appear in some tables and charts. Further information including historical results and a description of the activities of FGB is available on our website, www.fgbgroup.com 2/48

Co Contents Operating Environment………………………………………………………………….....………………………………………………………………….....4/48 FGB Profile……………………………………………………………………………………………………………………………………………………………..…….8/48 FGB–NBAD Merger Update ………………………………………………………………………………………………………………………………..……15/48 Capital…………………………………………………...……………………………………………………………………………………………………………………17/48 Liquidity & Funding……………………………………………………....…………………………………………………………………………………………19/48 Asset Mix & Asset Quality………………………………………………………………………………………………………………………………………22/48 Appendix……………………………………………………………………………………………………………………………………………………………………24/48 3/48

Operating FGB–NBAD Liquidity & Asset Mix & FGB Profile Capital Appendix Environment Merger Update Funding Asset Quality UAE Economic Overview S OLID F UNDAMENTALS R EAL GDP GROWTH FORECASTED AT 2.5% IN 2017 4 %  UAE federation was established in 1971 and comprises of seven Emirates; 8 Politically stable country and highly favorable and competitive business environment 1 . 6 Second largest economy in the GCC; 8 th largest oil reserves in the world  (97.8 Bn boe 2 ); Total population estimated at 9.8 Million. 4  Real GDP growth is seen at 2.3% in 2016 and 2.5% in 2017.  At 3.9% of GDP in 2016, fiscal deficit is forecasted to improve to 1.9% of 2 GDP in 2017 thanks to implementation of measures towards gradual fiscal consolidation 5 . 0  UAE Credit Ratings: S&P AA (Stable), Moody’s Aa2 (Negative), Fitch AA 2010 2011 2012 2013 2014 2015e 2016f 2017f 2018f (Stable). A D IVERSIFIED ECONOMY ³ Economic Structure and Performance 4 2015e 2016f 2017f 2018f Real GDP Growth (% change) 4.0 2.3 2.5 3.1 Government Other Nominal GDP (USD Bn) 370.3 375.0 407.6 434.8 Services 3% Agriculture 6% 1% Inflation (CPI, % change) 4.1 3.6 3.1 3.2 Finance 9% Mining & General government revenue (% GDP) 28.5 26.2 26.4 27.0 Real Estate & Quarrying General government expenditure (% GDP) 30.6 30.0 28.3 27.3 Business 22% Services Fiscal balance (% GDP) (2.1) (3.9) (1.9) 0.3 Manufacturing 13% 9% Transport Gross Debt (% GDP) 18.1 19.0 18.8 18.6 9% Trade, Electricity, Gas, Restaurant & ¹UAE ranked 16/138 in WEF 2016/2017 Global Competitiveness Report Construction Water Hotels 2 BP report June 2016 10% 3% 15% 3 UAE National Bureau of Statistics, 2015 GDP 4 IMF World Economic Outlook, October 2016 5 Including subsidy reforms and reductions in non-current expenditure 4/48

Operating FGB–NBAD Liquidity & Asset Mix & FGB Profile Capital Appendix Environment Merger Update Funding Asset Quality Abu Dhabi Economic Overview A BU D HABI AT A GLANCE  Largest Emirate in the UAE accounting for more than 80% of the Ras al-Khaymah country’s total land area; Population estimated at 2.8 Million 1 . Umm al-Quwayn  Sharjah Abu Dhabi Nominal GDP estimated at USD 202Bn in 2016f 1 , that’s 54% of Dubai Ajman UAE overall nominal GDP. Fujairah A BU D HABI  49% of 2015² GDP generated from the hydrocarbon sector; major non-oil GDP contributors include: construction, financial services, public administration and defense, and manufacturing.  Transition underway towards a more diversified economy with a particular focus on the infrastructure and services sectors inline with Abu Dhabi Plan 2030. A BU D HABI – K EY S TATISTICS ¹ A BU D HABI 2015 GDP BREAKDOWN BY SECTOR ² Economic Structure Construction Financial and 2015e 2016f 2017f Real estate and Performance 12% Insurance 5% 8% Public Nominal GDP (USD Bn) 224 202 218 administration Real GDP growth (%) 6.3 1.5 2.0 and defense 4% Inflation Rate (CPI, % change) 5.4 2.8 2.5 Mining and Manufacturing Quarrying Industries Revenue/ GDP 32.1 28.0 26.1 49% 6% Expenditures/ GDP 36.3 33.0 30.5 Transport and Storage Balance/ GDP (4.1) (5.0) (4.4) 3% Liquid Assets/ GDP (%) 241.0 276.7 264.7 Wholesale Retail Trade and Repairing Others Services 1 S&P, August 2016 9% 4% 5/48 2 Statistics Center Abu Dhabi (SCAD) 2015, preliminary estimates

Operating FGB–NBAD Liquidity & Asset Mix & FGB Profile Capital Appendix Environment Merger Update Funding Asset Quality UAE – Other Macro Indicators UAE PMI 1 REMAINS IN EXPANSIONARY TERRITORY G ROSS D EBT OF GCC COUNTRIES (% OF GDP) 100 60.0 80 53.3 55.0 60 50.0 40 45.0 20 0 40.0 2010 2011 2012 2013 2014 2015e 2016f 2017f 2018f Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 UAE Saudia Arabia Qatar Kuwait Oman Bahrain Source: IMF World Economic Outlook, Oct. 2016 Source: Markit Economics USD 13B N NET DEPOSIT SURPLUS AS OF S EP ’16 E IBOR V S L IBOR USD Bn 108% % % 100 110% 103% 104% 100% 98% 100% 1.4 1.4 97% 98% 96% 94% 97% 80 94% 92% 90% 100% 1.2 1.2 60 90% 1.0 1.0 37 40 27 23 80% 19 13 0.8 0.8 20 5 4 2 1 0 70% 0 0.6 0.6 (0.4) 60% (5) -20 (19) (10) 0.4 0.4 -40 50% 0.2 0.2 Dec'03 Dec'04 Dec'05 Dec'06 Dec'07 Dec'08 Dec'09 Dec'10 Dec'11 Dec'12 Dec'13 Dec'14 Dec'15 Sep'16 0.0 0.0 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Net Deposit Surplus/ Deficit USD Bn L/D ratio LIBOR 3M EIBOR 3M E-L Spread (RHS) 6/48 1 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.