NIBC COVERED BOND PRESENTATION August 2020 1 EXECUTIVE SUMMARY - - PowerPoint PPT Presentation

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August 2020

NIBC COVERED BOND PRESENTATION

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EXECUTIVE SUMMARY

1: Excludes buy-to-let exposure of EUR 0.8 billion

NIBC ▪ Focused mid-market corporate and retail franchise with differentiated approach ▪ Net profit of EUR 3 million in H1 2020 (EUR 83 million in H1 2019) ▪ Net interest margin of 1.85% in H1 2020 (1.89% in 2019) ▪ Impairment ratio of 0.95% in H1 2020 (from 0.29% in 2019) ▪ Cost-to-income ratio at 54% in H1 2020 (44% in 2019) ▪ Solid capital position, with fully-loaded CET 1 ratio at 18.5% and leverage ratio of 7.3% at half year 2020 Covered Bond Programme ▪ AAA/AAA (S&P/Fitch) rated Conditional Pass-Through Covered Bonds ▪ Law-based programme, registered with the Dutch Central Bank ▪ Favorable regulatory treatment ▪ Documented minimum overcollateralisation of 15% ▪ Cover pool of prime Dutch residential mortgage loans Mortgage Business ▪ Total residential mortgage book of EUR 9.0 billion1 ▪ Despite Covid-19 the Dutch housing market remains resilient: NPLs remain low and credit loss expenses at half year 2020 were EUR 5 million ▪ Origination via independent intermediaries, underwriting criteria fully controlled by NIBC ▪ In-house arrears and foreclosure management

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TABLE OF CONTENTS

1. NIBC BUSINESS AND FINANCIAL UPDATE HALF YEAR 2020 4 2. DUTCH HOUSING AND MORTGAGE MARKET 26 3. RETAIL CLIENT OFFERING AND ASSET QUALITY 29 4. CONDITIONAL PASS-THROUGH COVERED BOND PROGRAMME 34 APPENDIX I COVID-19: OVERVIEW OF SELECTED POLICY MEASURES FOR BANKS 38 APPENDIX II MORTGAGE BUSINESS AT NIBC 40 APPENDIX III MAIN UNDERWRITING CRITERIA 43 APPENDIX IV ASSET COVER TEST 46 APPENDIX V CONDITIONAL PASS-THROUGH SCENARIOS 48 APPENDIX VI INVESTOR REPORTING AND LEGAL FRAMEWORK 50

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NIBC BUSINESS AND FINANCIAL UPDATE HALF YEAR 2020

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HALF YEAR PERFORMANCE

Performance significantly impacted by COVID-19 in first half of 2020

COMMENTS ▪ Net profit in H1 2020 of EUR 3 million ▪ We reiterate the AGM statement from April 2020 that the medium- term objective of a ROE between 10-12% is not expected to be achieved in 2020 due to the impact of the COVID-19 pandemic ▪ Fully-loaded cost-to-income ratio of 54% at stable operating expenses ▪ Improvement of the CET 1 ratio in H1 2020 to 18.5%, displaying a significant buffer above minimum SREP requirements ▪ Following the ECB recommendation, NIBC will not pay an interim dividend in 2020 METRICS MEDIUM-TERM OBJECTIVES H1 2020

Return on Equity (Holding) Cost-to-income (Holding) CET 1 (Holding) Dividend pay-out (Holding) Rating (Bank) 10 - 12% < 45% ≥ 14% ≥ 50% BBB+ 0.3% 54% 18.5% 0% BBB+ Negative Outlook

. Note: Financials for NIBC Holding as of H1 2020, unless otherwise stated Rating reflects S&P’s long-term issuer credit rating on NIBC Bank

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OUR RESPONSE TO COVID-19

Our People Our Clients

▪ Almost all staff working from home since 16 March 2020 in a fully remote working environment ▪ Since July NIBC is gradually and in a safe manner (keeping 1.5m distance, maximum number of people in the office, A- and B- teams, etc) facilitating working at our offices again ▪ Skeleton staff at office locations to ensure continuity – taken special measures into account ▪ Intensified communication to all staff with regular Corona news releases, periodic video updates by an ExCo member ▪ Early payment of the annual € 600 euro per employee to spend on work facilities at home ▪ Regular updates to management on (possible) infected staff ▪ Prudently extending credit to businesses of all sizes for working capital and general corporate purposes ▪ Client relief such as 90-day grace period for mortgage payments ▪ Increased monitoring of portfolios on a name-by- name basis, offering tailor-made solutions for existing clients where necessary ▪ Cautious client origination on corporate client side; focus on portfolio management, also using the tools of our partner OakNorth

Our Business

▪ Since beginning of March, Business Continuity Plan (BCP) in place, headed by CFO/CRO with initially (bi)-daily update calls, currently set to a weekly schedule ▪ Strong focus on liquidity management leading to an increase of NIBC’s liquidity buffers to EUR 4.1bn in H1 2020 ▪ Active monitoring of the development of our retail savings. Currently, no wholesale transactions planned nor needed ▪ Regular contact with various regulators and Dutch Banking Association ▪ Cost deep-dive to reduce monthly run-rate, including stopping of marketing campaigns, reductions of external staff, reprioritising (large) projects

First priority to safeguard health of our staff and families and to ensure business continuity

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FOCUSED TRANSFORMATION

COMPOSITION NIBC’S CLIENT OWN BOOK ASSETS

48% 52%

FY 2018

NIBC PORTFOLIO TRANSFORMATION SINCE 2018

52% 48%

H1 2020

Retail client assets Corporate client assets

19.1bn

Continued rebalancing of our portfolios towards more resilience

in EUR billion

H1 2020 FY 2018 H1 2020 vs. FY 2018

Energy

0.7 0.8

• 20%

Shipping

0.9 1.4

• 35%

Financial sponsors & Leveraged Finance

1.0 1.4

• 29%

Commercial Real Estate

1.1 1.3

• 14%

Fintech & Structured finance

1.3 1.0 25%

Infrastructure

1.6 1.6

• 2%

Mid Market Corporates

1.3 1.5

• 10%

Total corporate loans (drawn & undrawn)

7.9 9.0

• 13%

Beequip and other lease receivables

0.6 0.4 33%

Investment loans

0.2 0.2

• 28%

Equity investments

0.3 0.2 26%

Total corporate client assets

8.9 9.9

• 10%

Owner-occupied mortgage loans

9.0 8.6 5%

Buy to Let mortgages

0.8 0.6 19%

Total retail client assets

9.8 9.2 6%

OTM Retail client assets

5.6 2.4 133%

OTM Corporate client assets

1.0 0.9 21%

Originate-to-manage assets

6.7 3.3 104%

▪ The deliberate reduction of certain asset classes - as indicated in the Capital Market Update in Q4 2018 - continued in H1 2020 ▪ Total client assets - including originate-to-manage - increased by 13% since 2018 ▪ Clients assets for NIBC’s own book declined by 2%, displaying continued rebalancing towards a higher share of retail and other granular asset classes:

• Decreased exposure in the cyclical sectors

Shipping, Energy and Leveraged Finance by EUR 1.0 billion (-29%)

• Growth in more granular exposures in Fintech &

Structured Finance (+25%)

• Growth of new higher margin businesses such

as leasing incl. Beequip (+33%) and Buy-to-Let (+19%) ▪ Strong growth of the retail originate-to-manage

• ffering by EUR 3.2 billion to EUR 5.6 billion

COMMENTS 18.6bn

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4% 2% 4% 5% 6% 5% 3%

Commercial Real Estate Energy Financial Sponsors & Leveraged Finance Fintech & Structured Finance Infrastructure Mid Market Corporates Shipping

COMPOSITION OF NIBC’S TOTAL ASSETS

CORPORATE LOANS NIBC’S TOTAL ASSETS

Result of continued rebalancing

▪ Diversified portfolio: of NIBC’s total assets

• f EUR 22.2bn at half year 2020:
• 11% is in ‘liquid means’ (governments

& central bank)

• 46% in residential mortgage loans

COMMENTS

29% 11% 3% 46% 1% 3% 2% 5%

Corporate loans Governments & central bank Other financial institutions Residential mortgage loans Equity investments Lease Receivables Derivatives Other

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CORPORATE CLIENT OFFERING

Progressing with rebalancing strategy

▪ Growth in Leasing with Beequip (+14%) ▪ Reduced exposures in Energy, Shipping and Leveraged Finance by nearly EUR 0.3bn (compared to EOY 2019) ▪ Continued focus of margin over volume NET PROMOTOR SCORE (NPS)

CORPORATE LOAN ORIGINATION REBALANCING THE PORTFOLIO FACTS AND FIGURES

SELECTIVE ORIGINATION ACTIVELY MANAGED CORPORATE RWA

35% C+

/PRIME

22

In EUR bn

3.7 3.0 0.6 2018 2019 H1 2020

8.9bn 0.6bn

1 FY 2019 score, survey not updated for H1 2020

1 1

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RETAIL CLIENT OFFERING

Strong mortgage origination results in market share of 4%

4%

LOW RISK PORTFOLIO

▪ Strong growth OTM portfolio from EUR 4.3 billion to EUR 5.6 billion ▪ Total OTM mandates increased to EUR 8.8 billion ▪ Growth in the Buy-to-let portfolio of 7% ▪ 66% loan to value on own book residential mortgage portfolio ▪ Retail savings increased in H1 2020 by 1.5% to EUR 9.6 billion

MORTGAGE LOAN ORIGINATION GROWTH CLIENTS

MARKET SHARE ORIGINATION

2.2bn

FACTS AND FIGURES MORTGAGE LOAN PORTFOLIO

In EUR bn

8.6 9.0 9.0 0.6 0.7 0.8 2.4 4.3 5.6 11.6 14.0 15.4 2018 2019 H1 2020

Owner-occupied Buy-to-let Originate-to-manage

NIBC DIRECT CUSTOMER SURVEY SCORE SAVINGS 1

7.8

NIBC DIRECT CUSTOMER SURVEY SCORE MORTGAGES 1

8.0

STRONG ORIGINATION

▪ Number of clients +7% since FY 2019 ▪ Total number of clients 121k ▪ Number of clients -2% since FY 2019 ▪ Total number of clients 306k

1 FY 2019 score, survey not updated for H1 2020

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SUSTAINABILITY EMBEDDED IN OUR STRATEGY

▪ Embedded in NIBC’s business strategy & the way we do business ▪ Robust sustainability policy framework ▪ Integrated risk management ▪ Comprehensive reporting

COMMUNITY ENGAGEMENT

▪ 6 NGO’s operating from NIBC’s headquarters ▪ Focus on SCR activities which directly benefit our communities ▪ Sustainability challenges in the NIBC Talent Program ▪ High engagement among employees ISS OEKOM

C+ / Prime

SUSTAINALYTICS

22

MSCI

AA

REPRISK

AAA

OWN OPERATIONS

Carbon Neutral in

• wn operations

Head office 100% Co2-neutral

▪ 100% renewable electricity across all locations ▪ Significant reduction in use of gas for heating and cooling ▪ 25% of employees commute by bicycle

The way we do business

IT BEGINS WITH US STRONG SUSTAINABILITY RATINGS INTEGRATED BUSINESS APPROACH

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▪ Stable funding costs at 71bps ▪ Strong CET 1 ratio of 18.5% ▪ Strong liquidity buffers of EUR 4.1 billion to address COVID-19, including merger AG into NV

OUR STRATEGIC PRIORITIES

1 2 3 4 5 6 Continuous evolution of client franchise, expertise and propositions

▪ Progressing well with the execution of the rebalancing strategy, reducing exposure in highly-cyclical sectors ▪ Strong mortgage origination across all tenors

Focus on growth of asset portfolio in core markets

▪ Continued (+14% in H1 2020) growth in Beequip ▪ Continued (+7% in H1 2020) growth in Buy-to-Let ▪ Off-balance growth of mortgage portfolios of EUR 1.3 billion (+30%)

Diversification of income

▪ Increased total OTM mandates for mortgages in H1 2020 by 35% from EUR 6.5 billion to EUR 8.8 billion

Building on existing agile and effective organisation

▪ Strategic investments in fintechs continue ▪ Permanent and increased focus on ‘Know-Your-Customer’ (KYC) and Anti-Money Laundering results in further strengthening of processes on both sides of the business

• n track

Further optimisation of capital structure and diversification of funding Ongoing investment in people, culture and innovation

▪ Executed 3 Employee experience surveys re Covid-19 ▪ Complemented our ‘working from home’ policy with a seamless transition to online training and development ▪ Additional attention spent to vitality next to regular focus (a.o. Virgin Pulse Global Challenge) ▪ Expanded successful initiative of ‘Flying Goalies’: temporary assignments in other parts of organization ▪ Election of deal of the quarter and topic of the quarter based on engagement (shares and likes) in social media

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BLACKSTONE OFFER LAUNCH

Timetable until closing

Closing Acceptance Period (unless extended)

▪ 19 October 2020

EGM

▪ 7 October 2020

Commencement Acceptance Period

▪ 10 August 2020

Subject to declaration of no objection (DNO) DNB/ECB

Acceptance Period

Publication of Offer Memorandum

▪ 7 August 2020

Publication H1 2020 Results

▪ 13 August 2020

Paulus de Wilt, CEO and Chairman of the Managing Board of NIBC: “We are excited to announce an important next step for the future of our company with the launch of the Offer today. As we navigate unprecedented times, we are proud that we have been able to continue our dynamic and agile approach that allows us to successfully capitalize on evolving market opportunities across our corporate client franchise where we focus on niche, underserved or granular markets as well as in our retail client franchise where we have a strong foothold in the Dutch mortgage market. With Blackstone, NIBC will have a strong partner to support our strategy through the current challenging environment and continue to seek to innovate through new avenues of growth, including our recent partnerships with a number of Fintech companies and our evolving Originate-to-Manage product” Qasim Abbas, Senior Managing Director, Blackstone: “Blackstone shares the Managing Board’s and Supervisory Board’s vision to further strengthen NIBC’s position as a leading European niche banking player and create long-term value for all stakeholders. Reaching this deal in a challenging environment is testament to our commitment and confidence in NIBC as well as the potential of the business, and we look forward to an exciting journey ahead.” Dick Sluimers, Chairman of the Supervisory Board of NIBC: “It is with great satisfaction that we announce this important milestone for NIBC today. The Supervisory Board has closely monitored global developments that evolved over the past months, thoroughly reviewed and assessed the Offer and in light of its fiduciary duties, considered the interests of all stakeholders. The Offer provides minority shareholders with a fair cash price and a certain delivery of the 2019 Final Dividend, while at the same time facilitating an exit for JCF. NIBC is appreciative of the support and stewardship it has received from its controlling shareholder JCF for over 15 years and the collaborative effort of JCF and its representatives to grow NIBC into the business it is today. NIBC is also grateful for the support of Reggeborgh since the IPO. Blackstone will provide further support for NIBC’s strategy and a solid basis to secure the long-term interests of NIBC, our employees, deposit holders and clients”

Potential extension

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FINANCIAL RESULTS HALF YEAR 2020

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▪ Profit after tax and return on equity are significantly negatively impacted by the COVID-19 pandemic ▪ This impact is mainly reflected in:

• credit loss expenses of EUR 84 million, including

a management overlay of EUR 20 million

• negative fair value movements of EUR 15 million
• n retained positions of North Westerly CLOs
• lower investment income

▪ On the other hand stable net interest income and net fee & commission income support the P&L ▪ Operating expenses are also in line with HI 2019, which is the balance of:

• decreased expenses from the discontinuation of
• ur capital market activities, partially offset by:
• higher expenses from the increase of personnel

in Beequip and Lendex and for projects

• Operating expenses include non-recurring

expenses amounting to EUR 5 million with respect to the merger with NIBC Bank Deutschland AG and the Blackstone offer

INCOME STATEMENT

Net profit under pressure from COVID-19

173 83 194 3 44 7 4 13.6% 9.7% 11.8% 0.7% 10.8% 9.7% 11.4% 0.3% 2018 H1 2019 2019 H1 2020

Non-recurring profit Profit after tax Return on equity Return on equity ex. non-recurring

IFRS 9 H1 2020 IFRS 9 H1 2019 H1 2020 vs H1 2019

Net interest income 208 209 0% Net fee and commission income 19 19 0% Investment income 5 16

• 69%

Other income (17) 7

• 343%

Operating income 215 251

• 14%

Personnel expenses 55 57

• 4%

Other operating expenses 49 47 4% Depreciation and amortisation 3 3 0% Regulatory charges 10 9 11% Operating expenses 117 116 1% Net operating income 98 135

• 27%

Impairments of assets 84 21 300% Tax 5 25

• 80%

Profit after tax 9 89

• 90%

Profit attributable to non-controlling shareholders 6 6 0% Profit after tax attributable to shareholders of the company 3 83

• %

INCOME STATEMENT PROFIT AFTER TAX AND RETURN ON EQUITY COMMENTS

Non-recurring profit Profit after tax

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▪ Corporate client assets:

• Own book corporate client assets decreased in

H1 2020 by EUR 1 billion to EUR 8.9 billion

• The decrease is across all sectors, with the

exception of an increase in the lease portfolio and a stable structured finance portfolio, further supporting the rebalancing of the portfolio

• The rebalancing was accompanied by an

increase in the average portfolio spread to 2.73%, mainly driven by a further increase of the average origination spread to 2.96%

• OTM assets increased by 35% driven by the

issued North Westerly VI transaction in H1 2020 ▪ Retail client assets: — The own book portfolio of mortgage loans increased in 2020 to EUR 9.8 billion — Buy-to-let increased by 7% to nearly EUR 0.8 billion at improved origination spreads — OTM assets increased by 30%, with Lot Hypotheken - introduced in February 2020 - already contributing to this development

PORTFOLIO VOLUMES AND SPREADS

Continued focus on building a more granular portfolio while decreasing cyclical exposures

CORPORATE LOAN SPREADS & VOLUMES

2.77% 2.70% 2.73% 2.99% 2.52% 2.96% 4.84% 4.94% 4.96% 2018 2019 H1 2020

Portfolio spread Origination spread Portfolio spread Beequip

RETAIL ASSET SPREADS & VOLUMES

2.36% 2.30% 2.21% 3.28% 3.45% 3.58% 1.53% 1.88% 1.74% 2018 2019 H1 2020

Portfolio spread Origination spread BtL Origination spread owner-occupied

COMMENTS

9.0 8.9 7.9 0.4 0.5 0.6 0.2 0.2 0.2 0.9 0.8 1.0 0.2 0.3 0.3

Corporate loans Lease receivables Investment loans Originate-to-Manage Equity investments

2018 2019 H1 2020 9.9 9.9 8.9 8.6 9.0 9.0 0.6 0.7 0.8 2.4 4.3 5.6

Owned Occupied Buy-to-Let Originate-to-Manage

2018 2019 H1 2020 9.2 9.7 9.8

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▪ Net interest income of EUR 208 million is in line with H1 2019 ▪ The limited decrease of the net interest margin is caused by an increase in interest-bearing assets, mainly reflecting the impact of the decision to maintain higher liquidity buffers ▪ These higher liquidity buffers result in approximately EUR 2 million higher interest expenses ▪ Financial markets have seen volatility in the spread levels for financial institutions… ▪ …but active liquidity management and selective use

• f the various funding instruments have resulted in a

stable funding spread for NIBC

NET INTEREST INCOME

Stable net interest income and cost of funds

427 209 426 208 2018 H1 2019 2019 H1 2020 2.11% 2.10% 2.06% 2.01% 1.84% 1.88% 1.89% 1.85% 0.73% 0.72% 0.71% 0.71% 2018 H1 2019 2019 H1 2020

Net interest margin Net interest margin ex. IFRS 9 Funding spread

NET INTEREST INCOME (EUR million) NET INTEREST MARGIN & FUNDING SPREAD COMMENTS

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NET FEE AND COMMISSION INCOME

Focus on originate-to-manage is paying off

▪ Total fee income remained stable at the H1 2019 level ▪ The composition however has changed, with a 71% increase in OTM-mortgage loan fee income mirroring the increase of the related assets under management ▪ Fee income from lending activities decreased on the back of subdued origination of corporate loans in H1 2020 NET FEE AND COMMISSION INCOME (EUR million) COMMENTS

15 4 7 2 10 6 10 3 11 1 4 2 11 7 15 12 3 1 4 2018 H1 2019 2019 H1 2020

OTM Loans Lending related fees M&A OTM mortgage loans Brokerage

51 19 19 40

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INVESTMENT INCOME

Subdued, but positive performance on a decreased portfolio

▪ Investment income is sensitive to the sentiment in the equity markets and is therefore volatile quarter to quarter, especially in light of the COVID-19 pandemic ▪ Investment income decreased significantly compared to H1 2019, but still displayed a positive result of EUR 5 million:

• Negative (unrealised) revaluation results were

displayed on a portion of the investment portfolio, partially offsetting:

• Positive results mainly related to the successful

(partial) exits of two investments closed in H1 2020, leading to an addition realised positive result of EUR 4 million in H1 2020 ▪ The decrease of the portfolio contributed to a decrease in RWA in H1 2020 EQUITY INVESTMENT PORTFOLIO BY TYPE H1 2020 EQUITY INVESTMENT PORTFOLIO H1 2020

14% 35% 8% 13% 30%

Direct Strategic Direct Client Direct Other Indirect Strategic Indirect Fund

EUR 271m

COMMENTS H1 2020 2019

Direct Investments Strategic 37 54 Client 96 100 Other 21 36 Indirect Investments Fund 37 54 Strategic 96 100 Total 271 303

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20 43% 44% 54% 45% 42% 52% 2018 2019 H1 2020

Cost/income ratio Cost/income ratio ex. non-recurring

OPERATING EXPENSES

Fully loaded cost/income ratio absorbing regulatory expenses

EVOLUTION OF OPERATING EXPENSES COST/INCOME RATIO

230 228 112 9 9 5 2018 2019 H1 2020 Non-recurring expenses Operating expenses

239 237 117 COMMENTS ▪ In H1 2020 operating expenses were stable compared to H1 2019

• This includes in H1 2020 non-recurring

expenses of EUR 5 million related to the Blackstone offer and the merger of NIBC Bank Deutschland AG with NIBC Bank N.V.

• Excluding these non-recurring items operating

expenses decreased by 3% ▪ Decreased expenses from the discontinuation of our capital market activities were partially offset by higher expenses from the increase of personnel in Beequip and Lendex and for projects ▪ The higher expenses for projects included expenses amounting to EUR 6 million in H1 2020 for the remediation of observations from the IMI ▪ The cost/income ratio increased in H1 2020. As

• perating expenses are relatively stable, this is a

direct reflection of the reduced operating income

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CREDIT LOSS EXPENSE

Significant increase of credit loss expense

DEVELOPMENT OF CREDIT LOSS EXPENSE AND COST OF RISK ▪ Credit loss expense and cost of risk are significantly higher than in 2019 ▪ Total credit loss expense in H1 2020 of EUR 83 million includes a management overlay of EUR 20m to the credit loss allowance ▪ This overlay is based on an additional review by NIBC and ensures that the credit loss allowance sufficiently reflects the macroeconomic circumstances NIBC faces and the uncertainties these bring for the expected credit loss estimation ▪ This overlay is not allocated to individual exposures ▪ The management overlay reflects an upward adjustment to the ECL allowance for corporate loans of EUR 15 million and for residential mortgages of EUR 5 million ▪ Credit loss expense of EUR 83m can be broken down into EUR 78 million for corporate and EUR 5 million for retail

Cost of risk = annualized credit loss expense and other credit losses divided by average RWAs Impairment ratio = annualized credit loss expense divided by average assets loans & mortgages

COMMENTS

H1 2020 2019 2018 Impairment coverage ratio 34% 33% 30% Non-performing loan ratio 3.0% 2.4% 2.8% Exposure corporate arrears > 90 days 1.6% 1.2% 2.7% Exposure residential mortgage loans arrears > 90 days 0.2% 0.1% 0.2% LtV Dutch residential mortgage loans 66% 68% 72% LtV BTL mortgage loans 53% 52% 52%

KEY FIGURES ASSET QUALITY

54 49 83 5 3 0.73% 0.63% 1.89% 0.33% 0.29% 0.95% 2018 2019 H1 2020 Credit loss expense Other credit losses Cost of risk Impairment ratio

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CREDIT LOSS EXPENSE

Increase in stage 1 and stage 2 allowances

▪ Following the regular process (so before including the management overlay described on the previous slide), stage 1 and 2 ECL allowance decreased in the corporate loan portfolio, as various movements and effects have offset each other ▪ Upward pressure from the deteriorated economic situation and the macro- economic scenarios have been offset by downward movements mainly related to the decreased portfolio ▪ For both the lease receivables and mortgage portfolios limited increases were recorded in stages 1 and 2 ECL allowance:

• For lease receivables this development is in line with a growing portfolio and

deteriorating economic environment

• For the mortgage portfolio (pre-management overlay) the impact from positive

developments in the Dutch house market partially offset the negative impact of adjusted macro-economic scenarios ▪ The management overlay reflects an upward adjustment to the ECL allowance in stages 1 and 2 for corporate loans of EUR 15 million and for residential mortgages of EUR 5 million, reflecting continued COVID-19 uncertainty Coverage ratios stage 1 and stage 2 exposures COMMENTS

H1 2020 2019 Stage 1 Stage 2 Stage 1 Stage 2 Loans Carrying value 5,435 677 6,135 680 ECL Allowance 7 26 8.8 15.2 Coverage ratio 0.1% 3.8% 0.1% 2.2% Lease receivables Carrying value 499 36 442 33 ECL Allowance 2 1 1 Coverage ratio 0.4% 2.8% 0.2% 0.0% Mortgage loans Carrying value 9,934 223 9,915 120 ECL Allowance 6 1 1 Coverage ratio 0.1% 0.4% 0.0% 0.0% Total Carrying value 15,868 936 16,492 832 ECL Allowance 15 28 11 15 Coverage ratio 0.1% 2.9% 0.1% 1.8%

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FUNDING PROFILE DOMINATED BY LONG MATURITIES

Redemptions wholesale funding in H2 2020 and 2021 mainly related to TLTRO II

FUNDING COMPOSITION

8% 43% 22% 5% 6% 16%

H1 2020

Shareholders equity Retail funding Secured (wholesale) funding ESF deposits TLTRO Unsecured (wholesale) funding

MATURING FUNDING AS OF 1/7/2020

In EUR billion

2020 2021 2022 2023 2024

Covered bonds

• 0.5
• Other secured funding

0.5 0.5 0.1 0.6

• Senior unsecured

0.3 0.3 0.5 0.8 0.5 Subordinated

• Total:

0.8 0.8 1.1 1.4 0.5

▪ Funding profile continues to benefit from:

• A diversified funding composition
• The weighted average tenor of our wholesale funding of 6.4 years at 30 June 2020

▪ Maturing wholesale funding:

• Funding transactions of EUR 0.8 billion maturing in H2 2020 include TLTRO of EUR 0.5

billion and a short-term floating rate note of EUR 0.3 billion

• Funding transactions of EUR 0.8 billion maturing in 2021 include TLTRO of EUR 0.5

billion

• TLTRO repayments can be ‘rolled-over’ through the issuance of new TLTRO

▪ NIBC is eligible to draw under the TLTRO-III facility, enabling it to not only replace maturing TLTRO-II transactions under the new facility but also draw additional funds if needed ▪ In H1 2020 NIBC issued an EUR 200 million fixed rate senior non-preferred transaction with a maturity of four years, as a tap on the outstanding 2024 transaction, increasing the transaction to a EUR 500 million benchmark size ▪ NIBC’s liquidity position is strong:

• NIBC decided to increase liquidity buffers in H1 2020 to EUR 4.1 billion
• Stable liquidity ratios at levels of 270% (LCR) and 124% (NSFR)

Financials for NIBC Holding per 30 June 2020

COMMENTS

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CAPITAL POSITION

Strong solvency ratios

▪ NIBC’s strong capital position is reflected in a CET 1 ratio of 18.5% at H1 2020, displaying an improvement from 17.1% at year-end 2019 ▪ The increase is mainly driven by the addition of retained 2019 profit to our capital and by developments within our Corporate client offering ▪ In H1 2020, RWA of the corporate assets decreased due to limited loan

• rigination as from the lockdown, high (p)repayment levels and the

decreased volume of equity investments CET 1 DEVELOPMENT IN 2019 COMMENTS

17.1% 18.5% 0.6% 0.2% 0.5%

• 0.2%

0.3% 31 December 2019 Eligible 2019 profit Sale equity investments Repayment corporate loan portfolio Increase in NPE Other movements 30 June 2020 18.5% 17.1% 18.5% 1.4% 1.3% 1.2% 2.1% 2.1% 2.1% 22.0% 20.5% 21.8% 7,805 8,841 8,538 2018 2019 H1 2020 CET 1 ratio Tier 1 Tier 2 RWA

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CAPITAL POSITION

Increased buffer above minimum requirements

As from 2019, non-eligible profits attributable to the shareholders are no longer added to regulatory capital Minimum level Covid-19 measures is indicated by ECB and DNB

▪ NIBC’s management buffer has further grown as a result of the supervisory permission to temporarily operate below some requirements (CCB, P2G and LCR) to weather the current COVID 19 challenging market conditions ▪ Our CET 1 capital displays at H1 2020:

• approximately EUR 385m capital in excess of our 14% CET1 medium

term objective

• a management buffer of 9.6% (approximately EUR 820m) above the

SREP CET 1 requirement level of 8.9%

• an even higher management buffer above SREP post temporary ECB

measures and the application of these measures by DNB to Dutch LSIs

COMMENTS CAPITAL RATIOS COMPARED TO REQUIREMENTS EXCL. P2G

4.5% 18.5% 4.5% 8.0% 21.8% 8.0% 1.9% 1.9% 3.3% 3.3% 2.5% 2.5%

Minimum SREP requirement CET 1 CET 1 H1 2020

• Min. level

Covid-19 measures Minimum SREP requirement Own Funds Own Funds H1 2020

• Min. level

Covid-19 measures

CET 1

8.9% 6.4%

Own Funds

CCB P2R Pillar 1

13.8% 11.3%

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DUTCH HOUSING AND MORTGAGE MARKET

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DUTCH HOUSING AND MORTGAGE MARKET

▪ The Netherlands contains 7.8 million dwellings, of which 4.5 million are owner

• ccupied

▪ Confidence in the housing market is at a level of 95 in July 2020, having reached its low in December 2012 at 51 and a peak in November 2016 at 1211 ▪ The Dutch housing market remains tight, as a result of a structural housing shortage and lagging supply of new development ▪ Proven resilience during the credit crisis

✓ Flexible labour market and strong social services safety net ✓ High payment morale, supported by central credit registration system (BKR) and efficient legal system

1: Source: Vereniging Eigen Huis. Monthly measurement of the Dutch homeowners association for the consumer confidence related to the housing market 2: Source: Statistics Netherlands (CBS), seasonally corrected figures 3: Source: Dutch Central Bank . Total weighted average interest rate of new residential mortgage contracts 4: Source: The Netherlands’ Cadastre, Land registry and Mapping Agency

DUTCH HOUSING AND MORTGAGE MARKET ECONOMIC GROWTH AND UNEMPLOYMENT IN THE NETHERLANDS2 AVERAGE MORTGAGE RATE3 AND HOUSE PRICE INDEX4 HOUSE SALES DEVELOPMENT4

• 10
• 8
• 6
• 4
• 2

2 4 6 8 2013 2014 2015 2016 2017 2018 2019 2020 Percentage (%) GDP growth year-over-year Unemployment rate

• 50

100 150 200 250 2013 2014 2015 2016 2017 2018 2019 2020 Thousands Rolling 12-month housing sales 2 4 6 8 90 100 110 120 130 140 150 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Percentage (%) Index (2015 = 100) Average mortgage rate (RHS) House price index (LHS)

SLIDE 28

28

EVOLUTION OF DUTCH MORTGAGE LENDING STANDARDS

• Code of conduct

enforced

• NHG max EUR 350k

2011 2012 2013 2015 2014 2016 2017 2018

• New mortgages need

to be fully amortizing for tax benefits

• Changes to interest

deductibility

• NHG max EUR 290k;
• nly amortizing loans

eligible

• Max LTV 105%
• Interest deductibility

51.0%

• NHG max EUR 245k
• Max LTV 103%
• Interest deductibility

50.0%

• NHG max EUR 245k
• Max LTV 101%
• NHG max EUR 320k
• Max LTV 106%
• Interest deductibility

51.5%

• NHG max EUR 265k
• Max LTV 104%
• European Mortgage

Credit Directive active

• Interest deductibility

50.5%

• NHG max EUR 245k
• Max LTV 102%
• Interest deductibility

49.5%

• NHG max EUR 265k
• Max LTV 100%

2019

• Interest deductibility

49.0%

• NHG max EUR 290k

2011 2012 2013 2014 2020- 2023

• Interest deductibility

2020 46.0%

• NHG max in 2020

EUR 310k

• Tax deductibility to

decrease further by 3% per annum to 37.05% in 2023

SLIDE 29

29

RETAIL CLIENT OFFERING AND ASSET QUALITY

SLIDE 30

30

RETAIL CLIENT OFFERING

9.0 EUR billion

Owner occupied mortgage loans

4.8 EUR billion

Savings

3.7 EUR billion

Savings

1.1 EUR billion

Savings

▪ Strong franchise across the Netherlands, Germany and Belgium with more than 400,000 clients ▪ Mortgages are sold through partnerships with intermediaries, where NIBC sets all underwriting criteria ▪ Multi-track approach: mortgages for our own balance sheet as well as for multiple

• riginate-to-manage mandates from institutional investors

▪ Non-value adding activities are outsourced (mid- and back-office services) to specialized mortgage servicing companies, such as Stater and Quion ▪ Arrears and foreclosure management performed in-house at NIBC INTRODUCTION GEOGRAPHIES SAVINGS BALANCE NIBC DIRECT (EUR BLN) RETAIL CLIENT OFFERING ASSETS (EUR BLN)

Figures for half year 2020

3.9 4.6 4.8 4.1 3.9 3.7 0.9 1.0 1.1 8.9 9.5 9.6 2018 2019 H1 2020 Netherlands Germany Belgium 8.6 9.0 9.0 0.6 0.7 0.8 2.4 4.3 5.6 11.6 14.1 15.4 2018 2019 H1 2020 Owner occupied Buy-to-let Originate-to-manage

SLIDE 31

31

RETAIL CLIENT OFFERING

▪ Total mortgage origination reached EUR 2.2bn in H1 2020, resulting in a market share of 4% ▪ Our on-balance portfolio increased EUR 0.1 bn to EUR 9.8bn1 and the OTM portfolios grew by EUR 1.3bn in H1 2020 ▪ OTM mandates increased to EUR 8.8bn; the total OTM portfolio reached EUR 5.6bn at half year 2020

▪ fee generating initiative leading to income diversification ▪ strengthening our client franchise, as it enables NIBC to be active across maturities and sub-segments

▪ Growth in buy-to-let portfolio of 7%, resulting in a total of EUR 0.8bn at half year 2020 ▪ The mortgage loan portfolio displays a solid performance with credit loss expenses of EUR 6 million in H1 2020 MORTGAGE LOANS ORIGINATION (EUR BLN) RETAIL ASSET SPREADS

1: Includes EUR 0.8bn buy-to-let mortgages

1.6 1.7 0.7 1.8 2.0 1.5 3.4 3.7 2.2 2018 2019 H1 2020

Own book Originate to manage

2.36% 2.30% 2.21% 3.28% 3.45% 3.58% 1.53% 1.88% 1.74% 2018 2019 H1 2020 Portfolio spread Origination spread BTL Origination spread owner occupied

SLIDE 32

32

RETAIL CLIENT OFFERING

Owner-occupied Buy-to-let NHG Non-NHG Fixed terms 30 year OTM OTM Not offered 20 year OTM OTM NIBC Not offered 10 year NIBC NIBC NIBC 5 year NIBC NIBC NIBC Floating Not offered Not offered Not offered

COMMENTS

▪ Since 2016, when NIBC closed its first originate-to- manage (OTM) mandate for residential mortgage loans, NIBC has offered institutional investors the

• pportunity to invest directly in Dutch residential

mortgages ▪ Together with our OTM partners we are able to offer mortgage loans across all tenors and with or without NHG (national mortgage guarantee) in an efficient manner ▪ With the launch of “Lot Hypotheken” in February 2020 NIBC has expanded its OTM platform. This new label aims to outperform on processes and consumer experience, while focusing on sustainability ▪ The Buy-to-Let segment is a growing market and represents an attractive risk/return for NIBC

SLIDE 33

33

DUTCH MORTGAGE LOANS

29% 12% 8% 9% 9% 17% 12% 5% 24% 15% 10% 10% 16% 15% 8% 2% 21% 17% 10% 14% 18% 12% 7% 1% 20% 17% 10% 15% 17% 12% 7% 1% NHG <50% 50-60% 60-70% 70-80% 80-90% 90-100% >100% 2017 2018 2019 H12020

ARREARS >90DAYS INDEXED LOAN-TO-MARKET VALUE

0.5% 0.2% 0.1% 0.2% 2017 2018 2019 H1 2020 Weighted-average LTIMV: 66% (H1 2020)

SLIDE 34

34

CONDITIONAL PASS-THROUGH COVERED BOND PROGRAMME

SLIDE 35

35

COVERED BOND PROGRAMME

SUMMARY OF THE COVERED BOND PROGRAMME Issuer: NIBC Bank N.V. Guarantor: Bankruptcy remote Covered Bond Company (CBC) Ratings: AAA/AAA (S&P/Fitch) Collateral: Prime Dutch residential mortgage loans1 Documented minimum OC: 15% Derivatives: None Asset monitor: EY

1: Owner-occupied residential mortgages only; buy-to-let mortgages are not eligible collateral for the cover pool

KEY BENEFITS Double recourse: ✓ Hard obligation for NIBC to redeem the bond at expected maturity (no optionality) ✓ Recourse on CBC in case of NIBC default Regulatory: ✓ LCR eligible (bucket: L1) and favourable regulatory treatment Stable Ratings: ✓ De-linkage from issuer rating: a downgrade of the issuer rating does not directly affect the covered bond ratings Index: ✓ iBoxx eligible Robust Structure: ✓ No swap counterparties ✓ Back-up administrator ✓ External account banks ✓ External sub-services ✓ Live cash flows REGULATORY Format: Law based, registered with the Dutch Central Bank Regulated status: UCITS and CRD compliant Label: ECBC Covered Bond Label

NIBC set up a robust Covered Bond Programme, benefitting from a conditional pass- through structure

Robust Structure

SLIDE 36

36

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

COVERED BOND PROGRAMME: CONDITIONAL PASS-THROUGH STRUCTURE

TRANSACTION STRUCTURE ▪ NIBC as issuer has a hard obligation (no option) to repay the covered bonds at scheduled maturity date ▪ Conditional pass-through structure addresses refinancing risk and ensures an

• rderly wind-down of the Cover Pool in case of issuer default, avoiding the risk
• f a fire sale

▪ If the pass-through mechanism is triggered, the respective series become pass- through covered bonds

1: Assuming all bonds in pass-through mode, 5% CPR and no losses

COMPARISON COVERED BOND STRUCTURES

EXPECTED INCREASE OF OC IN PASS- THROUGH SCENARIO (PER 6 MONTHS)1

CONDITIONAL PASS-THROUGH MECHANICS ▪ Cash-flows received by the CBC are used to pay down the relevant outstanding covered bonds ▪ The CBC attempts to sell a randomly selected part of the cover pool every 6

• months. The sale is only carried out when the proceeds are sufficient to redeem

the relevant bonds at par ▪ The Amortisation Test is not allowed to deteriorate WHAT HAPPENS IF THE CONDITIONAL PASS-THROUGH MECHANISM IS TRIGGERED?

Issuer Event of Default Amortisation Test All CB’s converted to Pass-Through Relevant CB converted to Pass-Through Bullet Maturity Bullet Maturity

No Yes Pass Fail Insufficient funds at maturity

Hard Bullet Covered Bonds Soft Bullet Covered Bonds CPT Covered Bonds Extension Period Extension Period

SLIDE 37

37

COVERED BOND PROGRAMME: TRANSACTION STRUCTURE

In a covered bond structure payments to investors on the bonds are guaranteed by the

• CBC. For this guarantee a

pool of Dutch prime residential mortgages is segregated in the CBC Monthly cash flows from the borrowers are transferred to the CBC without first touching NIBC’s balance sheet

Pledge of Receivables Principal & Mortgage Interest

NIBC CBC Guarantor Investors NIBC Servicer Sub-servicers Security Trustee Borrowers Collection Foundation

Principal & Mortgage Interest

NIBC Issuer

Guarantee Cover Pool Interest + Principal Principal

SLIDE 38

38

APPENDIX I COVID-19: OVERVIEW OF SELECTED POLICY MEASURES FOR BANKS

SLIDE 39

39

COVID-19

Overview of selected policy measures for banks

MEASURES WITH RESPECT TO CAPITAL

▪ Implementation start date Basel IV delayed from 2022 to 2023 ▪ Accelerated application (initially on 1/1/2021) of P2 requirements being able to be partially met by capital instruments that do not qualify as CET 1 capital, albeit that at least 56.25% must comprise of CET 1, 18.75% of AT1 and 25% of Tier 2 instruments ▪ Banks may temporarily operate below the Pillar 2 Guidance (P2G) and the capital conservation buffer (CCB) ▪ Temporary postponement (for as long as necessary) of the introduction of the floor on the AIRB risk weighting for Dutch mortgage loans ▪ Flexibility in prudential treatment of exposures backed by public support measures and/or subject to eligible moratoria ▪ Recommendation urging banks not to pay out any dividends until 1 October

• 2020. SSM informally confirmed there is currently no plan to suspend

additional Tier 1 or Tier 2 payments

MEASURES ON OPERATIONAL RELIEF

▪ In general adjustment of prudential timetables, processes and deadlines

The measures support banks to focus on co-operating with its clients to weather the challenging market conditions due to COVID-19 The Coronavirus (COVID-19) is having a significant impact on the global

• economy. Governments and other policy makers have taken serious

measures to support the economy. This slide provides a high level

• verview of the measures taken by ECB/SSM/EBA/DNB/Basel

Committee towards the banking sector In general banks are temporarily allowed to operate at lower levels

• f capital and liquidity than normal

MEASURES WITH RESPECT TO FUNDING AND LIQUIDITY

▪ In addition to the Asset Purchase Programme (APP) ECB announced in March 2020 the EUR 750bn ‘Pandemic Emergency Purchase Programme’ (PEPP) ▪ Relaxation of TLTRO III conditions and implementation of additional LTROs. The TLTRO III operation between June 2020 and June 2021 offers 3-year funding at a rate of -0.75% if banks maintain current lending levels to euro area non- financial corporates and households (excluding loans for house purchases) ▪ Banks may temporarily operate below the required 100% level of the liquidity coverage ratio (LCR) ▪ DNB will - on a case-by-case basis - offer temporary relaxation to LSIs of asset encumbrance limits

Most of the measures mentioned above were taken by the various European authorities after which DNB has taken comparable measures for Dutch LSI’s

SLIDE 40

40

APPENDIX II MORTGAGE BUSINESS AT NIBC

SLIDE 41

41

MORTGAGE BUSINESS AT NIBC BANK

▪ NIBC has outsourced its origination to independent intermediaries and its standard servicing activities to a third party. This has created a highly standardised and efficient business model ▪ Special servicing is performed in-house to ensure tailor-made solutions to optimise recoveries ▪ NIBC Bank has a dedicated team to manage the relationship with the servicers and to monitor the quality of their servicing. A major emphasis is put on quality control and on ensuring that all processes remain ISAE 3402 compliant NIBC BANK’S MORTGAGE BUSINESS ▪ Origination: ▪ NIBC Bank sets the underwriting criteria ▪ Deviations from underwriting criteria can only be made when accepted by NIBC Bank ▪ Servicing: ▪ The arrears management is performed in-house to ensure tailor-made solutions to optimize recoveries IN-HOUSE PERFORMANCE OF CORE ACTIVITIES OUTSOURCING OF STANDARDISED ACTIVITIES ▪ Origination is done via dedicated independent intermediaries ▪ The underwriting criteria are highly standardized and hard coded in the systems of the servicers ▪ Intermediaries can only originate mortgages that meet the underwriting criteria ▪ Standard servicing activities are outsourced to specialized mortgage servicers STATER and Quion: ▪ Payments ▪ Administration ▪ First contact point for clients

SLIDE 42

42

MORTGAGE BUSINESS AT NIBC BANK

▪ In 2006 NIBC Bank decided to take the arrears and foreclosure management in-house since NIBC Bank was confident that it could decrease arrears and losses via a result based approach. ▪ Employees have no insight into whether a loan has been securitized or transferred to the CBC or not. ▪ NIBC Bank uses the Salesforce CRM system in which the focus is on the client situation and performance is closely monitored through reporting and dashboards on a daily basis. ▪ Team Early (which is part of Special Servicing) tries to get in contact with the borrower to make a payment arrangement and indicates the financial situation. Special Servicing Mortgages (SSM) will follow up or step in depending on the situation.

BASIC PRINCIPLES ARREARS MANAGEMENT

Arrears of max 2 months

NIBC Special Servicing NIBC Early ▪ Specialized team including 1 account manager with extensive experience in (mortgage) credit management. Educated in restructuring mortgage loans. ▪ Goal is to find the best structural solution; assess the situation and determine whether the problems are temporary or structural. ▪ Client retention: preventing credit losses and meeting our duty of care. ▪ Termination of the loan: limiting losses by maximizing foreclosure proceeds. ▪ Maximizing post-foreclosure proceeds. ▪ During the 1st month arrears clients receive (if necessary) up to 4 letters and 5 calls. ▪ Outbound calls within 6 days after first arrear is determined. ▪ Mandate is maximum of two payment arrangements. ▪ Over 90% of new arrears recover within the first 2 months. ▪ Track and trace to get in contact with the client through multiple channels (e.g. Chamber of Commerce, social media). ▪ Determine nature of problems (e.g. life events 1). ▪ When arrear is indicated as incidental by Early the client can do a payment at once or a simple arrangement is setup with the client. ▪ When client faces (temporary) financial hardship the client is allocated to the SSM team.

All clients in arrears with life events1 or arrears > 2 months

EARLY SPECIAL SERVICING MORTGAGES

1: Life events: divorce, deceased, unemployment (because of incapacity)

SLIDE 43

43

APPENDIX III MAIN UNDERWRITING CRITERIA

SLIDE 44

44

MAIN UNDERWRITING CRITERIA

▪ NIBC complies with: ▪ “Wet op het Financieel Toezicht” (WFT). Dutch Law ▪ Code of Conduct of Dutch Bankers Association (2013). The code concerns e.g. minimum requirements to the borrower. ▪ Temporary Rule of Mortgages. These guidelines concerns regulations to income and maximum loans and are yearly set by the government. ▪ GDPR (General Data Protection Regulation). European Law, NIBC and Stater are compliant to the requirements of the GDPR as applicable per May the 25th 2018. LAWS AND REGULATIONS ▪ Steady income: Income is derived from the salary slip and proof of employment

• r a so-called determination of income from paid employment

(‘Inkomensbepaling Loondienst’) executed by the intermediary based on data from the Employee Insurance Agency (‘UWV’). In case of self-employed borrowers, a statement of income is drawn up by a certified calculation agent. ▪ Comply or Explain: a predetermined test is available (comply), but allows deviation if well-justified by the lender (explain). NIBC Direct origination only concerns Comply. ▪ Actual interest rate: is taken into account unless the fixed rate term is under 10

• years. In case of shorter terms a pre-determined rate is used or the loan must be

totally repaid at the end of the fixed rate term (only by annuity or linear). ▪ LTI: Loan-To-Income is maximized in line with the Code of Conduct. Calculations are based on guidelines from the NIBUD (An independent institute focused on household expenses). AFFORDABILITY

SLIDE 45

45

MAIN UNDERWRITING CRITERIA

▪ Maximum loan amount: EUR 1.000.000. Loans above EUR 750.000 are treated as an overrule. ▪ Maximum loan-to-Value: 100% and in case of energy saving facilities (EBV) 106%. ▪ NHG hurdle: EUR 310.000,- excl. EBV or EUR 328.600 incl. EBV ▪ Non-NHG mortgages with loans above 80% of the Market Value are required to be covered by a mortality insurance. ▪ The mortgage loan is secured by a first ranking mortgage right or a first and sequentially higher ranking mortgage right(s) over real estate, an apartment right

• r a long lease (“erfpacht”) situated in the Netherlands.

▪ The property value is determined by a recent valuation report (<6 months old) from a certified appraiser. On top of that every valuation report is automatically validated by checking comparable transactions by an independent organisation (NWWI, TVI (Taxatie Validatie Instituut) or Taxateurs Unie). LOAN AND COLLATERAL ▪ Bureau for Credit Registration (BKR): Credit history is checked at BKR, ‘negative’ BKR-registrations which are allowed by NHG can be done without overrules. All the other ‘negative’ BKR registrations must be handed to the overrule desk. The BKR registration must be cured. Specific criteria and surcharges are used by the

• verrule desk.

▪ Stichting Fraudebestrijding Hypotheken (SFH): Fraud is checked at SFH which is located at the BKR office and coordinated by the Dutch Banking Association. ▪ A check is performed to verify the borrower’s identity. ▪ Kadaster (National Property Register): Additionally, a Kadaster check is performed to prevent illegitimate use of property. ▪ Fraud Officer: NIBC has dedicated fraud officers, handling fraud cases and prevention. CREDIT HISTORY AND FRAUD

SLIDE 46

46

APPENDIX IV ASSET COVER TEST

SLIDE 47

47

ASSET COVER TEST

To meet the CRD requirements the LTV cut-off is included: For each mortgage receivable any amount exceeding 80% of the indexed market value of the underlying collateral is not taken into account. Other haircuts are also included.

1: This amount differs every month based on the characteristics of the mortgages in the portfolio. In July 2020, the cover ratio was 110.07%.

LTV Cut-off +

• ther haircuts

110%1 Asset Percentage: 97.5% Minimum OC: 15%

EUR 3.3bn1 EUR 3.1bn EUR 3.5bn EUR 3.5bn EUR 3.0bn Covered Bond Asset Cover Tests Minimum Cover Pool Following their analysis the rating agencies communicate a minimum asset percentage. The amount

• f bonds relative to the amount of assets cannot exceed this percentage.

An additional feature not present in most other Dutch programmes is the 15% minimum OC, which is a hard commitment irrespective of changing environment or rating agency opinions. By Dutch law the minimum nominal OC is set at 5%.

Outstanding Bonds Test Outcome Higher of Asset Cover Test

1 2 3 1 2 3 x x

SLIDE 48

48

APPENDIX V CONDITIONAL PASS-THROUGH SCENARIOS

SLIDE 49

49

CONDITIONAL PASS-THROUGH SCENARIOS

Conditional Pass-Through Covered bonds: A combination of three events: bank default, sale of the pool not possible and breach Amortisation test results in the following four scenarios:

Bond I Bond II

time

• utstanding

Bond I Bond II

time

• utstanding

Bond I Bond II

time

• utstanding

Bond I Bond II

time

• utstanding

1: The bank redeems the bond at scheduled maturity 2: The bonds are redeemed at maturity with cash and sale of part of the

• pool. Amortisation test

holds to protect later maturing bonds 3: Pass-through is triggered at maturity if proceeds from sale of part of the pool are not sufficient to redeem the bond in full 4: If in addition, the pool deteriorates and the Amortisation test is breached, all bonds become pass-through bonds

Conventional covered bonds: A combination of three events: bank default, sale of the pool not possible and breach Amortisation test results in the following four scenarios: Bond I Bond II

time

• utstanding

Bond I Bond II

time

• utstanding

Bond I Bond II

time

• utstanding

Bond I Bond II

time

• utstanding

1: The bank redeems the bond at scheduled maturity 2: The bonds are redeemed at maturity with cash and sale of part of the

• pool. Principal test holds to

protect later maturing bonds 3: If part of the cover pool cannot be sold to redeem the bonds at par, all bonds accelerate and the pool has to be sold, which may result in a loss on the bonds 4: If in addition, the pool deteriorates and the Amortisation test is breached, all bonds accelerate and the pool has to be sold, which may result in a loss on the bonds

SLIDE 50

50

APPENDIX VI INVESTOR REPORTING AND LEGAL FRAMEWORK

SLIDE 51

51

COVERED BOND PROGRAMME: INVESTOR REPORTING

▪ Best in class reporting of NIBC originated and/or NIBC serviced transactions via www.assetbacked.nl ▪ Following a European Covered Bond Council (ECBC) initiative, the Covered Bond Label was introduced in 2012 ▪ NIBC covered bonds carry the Covered Bond Label and reporting is done according to the (Dutch) National Transparency Template and the (worldwide) Harmonised Transparency Template ▪ Free registration (details treated confidentially) and optional subscription to automated e-mail service (new uploads are automatically sent to recipients inbox) ▪ Investor queries via website and investor.services@nibc.com ▪ Investor reports always timely available, including full performance information, portfolio split and bond information INVESTOR REPORTING FOR COVERED BONDS

SLIDE 52

52

DUTCH LEGAL FRAMEWORK AND DACB

▪ The Dutch Covered Bond Decree is in place since 1 July 2008. As per 1 January 2015 the legislation has been upgraded and engrained at all three levels of legislation including the highest Law on Financial Supervision (“WFT”) ▪ The main aim of the new legislation is to increase transparency and protection for investors. It is less principle based and more rule based. Amongst other, the following is included:

▪ Obligation to be UCITS as well as CRR compliant. No ABS as eligible assets allowed. ▪ Specific definition of Covered Bonds as a product and description of the structure ▪ Role of the Dutch Central Bank (DNB) more described, including enhanced supervisory powers ▪ Minimum OC of 105% nominal and 100% according to Article 129 CRR ▪ 6 month liquidity reserve required ▪ Minimum reporting requirements towards investors

▪ NIBC, ING, ABN AMRO, Rabobank, De Volksbank, Van Lanschot, Achmea, Aegon and Nationale Nederlanden have their Covered Bond programmes registered with the Dutch Central Bank ▪ As a result of the strong growth of the Dutch covered bond market, in January 2011 the Dutch issuers decided to establish the Dutch Association of Covered Bond issuers (DACB) ▪ Aim of the DACB is to strengthen the market and product offering of Dutch covered bonds through e.g. improving transparency, standardisation and general promotion ▪ The DACB was consulted in the making of the new regulations. More information can be found on www.dacb.nl DUTCH LEGAL FRAMEWORK FOR COVERED BONDS DUTCH ASSOCIATION OF COVERED BOND ISSUERS

SLIDE 53

53

Note tes to

• the

he pr presentation

Parts of this presentation contain inside information within the meaning of article 7 of Regulation (EU) No 596/2014 (Market Abuse Regulation). This public announcement does not constitute an offer, or any solicitation of any offer, to buy or subscribe for any securities in NIBC Holding N.V.

For

• rward-looking Statements

ts

This presentation may include forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. These forward-looking statements may be identified by the use of forward-looking terminology, including but not limited to terms such as guidance, expected, step up, announced, continued, incremental, on track, accelerating, ongoing, innovation, drives, growth, optimising, new, to develop, further, strengthening, implementing, well positioned, roll-out, expanding, improvements, promising, to offer, more, to be or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. The forward- looking statements included in this presentation with respect to the business, results of operation and financial condition of NIBC Holding N.V. are subject to a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements, including but not limited to the following: changes in economic conditions in Western Europe, changes in credit spreads or interest rates, the results of our strategy and investment policies and objectives. NIBC Holding N.V. undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this release.