NBFat a glance

Partnering youfor growth

1

National Bank of Fujairah (NBF) has, over the years, established a consistent track record for excellence in its chosen areas of focus.

This ongoing high performance is underpinned by the bank’s commitment to build an open and transparent relationship with all of its stakeholders, shareholders, regulators, customers, staff and suppliers alike.

Such engagement not only allows us to showcase our progress, it also provides us useful insight to better understand the needs and aspirations of our key stakeholder groups.

This booklet explains who we are and shares some of the bank’s recent achievements, highlighting areas where we can excel together in partnership to achieve our mutual goals.

As NBF continues its drive to be the financial partner for businesses in the UAE, taking care of both professional and personal banking needs, your support and engagement will be critical to our continued success, in the same way that we seek to become instrumental in yours.

Ourfactsheet

OUR ASPIRATIONSWe believe in cultivating rewarding relationships with our customers by providing the best in financial services. Similarly, we strive to create a stimulating environment that allows our employees to maximise their personal and professional development.

WHO WE AREWe are a full-service corporate bank with strong corporate and commercial banking, treasury and trade finance expertise as well as an expanding suite of personal banking options and Shari’a compliant services. Leveraging our deep banking experience and market insight within Fujairah and the UAE, we are well-positioned to build lasting relationships with our clients and help them achieve their business goals.

OPERATIONSEstablished in October 1982 and commenced operations on September 20, 1984.

SUBSIDIARIESNBF Financial Services FZCNBF Capital LimitedNBF Markets (Cayman) Limited

OWNERSHIPWe boast a strong and stable shareholder base, the principal members of which are fully committed to the long-term growth and development of the bank. We are listed on Abu Dhabi Exchange (ADX) under the symbol ‘NBF’.

22.65%

5.71%

9.78%

40.19%

21.66%

Department of Industry and Economy - Government of Fujairah

Easa Saleh Al Gurg LLC

Investment Corporation of Dubai

Fujairah Investment Company

Citizens / Companies of the UAE

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Ourfactsheet

BUSINESS FOCUSWe are well-regarded for our expertise and experience in areas of corporate banking, business banking, trade finance, precious metals & diamonds and treasury. We have also expanded our range of services to include not just a growing suite of personal banking options including priority banking and Shari’a compliant products, but specialised solutions from equipment financing and global transaction services to bespoke advisory services through our independent subsidiary, NBF Capital Limited.

We maintain a focus on facilitating the aspirations of our home emirate, while committing ourselves to supporting the growth of the UAE economy as a whole.

OUR COMMITMENTSShareholdersLong-term sustained returns.

EmployeesFair, transparent, supportive and a great place to work.

RegulatorsA responsible bank with exemplary governance.

SocietyPromoting sustainable, economic, social and environmental development.

“

“

CREDIT RATING

A well-established franchise as a niche player in trade finance and business banking in the UAE; operates with a highly liquid balance sheet and strong capitalisation. - S&P

Sound capital buffers reflect solid earnings generation and retention; stable corporate and business banking deposit base and limited maturity transformation drive, solid funding and liquidity profile.- Moody’s

MOODY’SBaa1P-2Stable

S&PBBB+A-2Stable

CIA-A2Stable

Long-TermShort-TermOutlook

3

,ssenisub rof rentrap laicnanif ehTfocused on your personal and professional needs

- To provide our customers with exceptional financial service. - To develop a strong sense of partnership through service and innovation. - To offer a stimulating working environment where individuals can tap their potential to achieve

new heights. - To operate with the highest standard of professionalism, while contributing to the growth and

advancement of communities in which we work.

PPassion &

Commitment

RRespect

IIntegrity

DDedicated

to Teamwork

E Excellencein Service

Ourvision, mission and values

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Our brand architecture

Growing from strength to strength as a bank and as a brand.

NBF Islamic

Offering banking solutions in accordance with Islamic values. Guided by the spirit, principles and objectives of Shari’a law, NBF Islamic's innovative banking solutions are a perfect demonstration of modern conveniences serving time-honoured traditions. NBF Islamic has been operational since October 2014.

Established in December 2004 with limited liability status in the Fujairah Free Trade Zone, NBF Financial Services FZC provides the Bank with key support services.

NBF Financial Services FZC

Established on 31 January 2017 to provide support services to the Bank to enter into foreign exchange and derivative transactions with financial institutions/counterparties under the terms and conditions of International Swaps and Derivatives Association (ISDA).

NBF Markets (Cayman) LimitedNBF Capital Limited

Based in DIFC and regulated by the DFSA, NBF Capital provides financial advisory services to its customers since May 2013.

capital

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Our operationsoverview

Based on 31 December 2017

Sustainable creation of long-term value.

Business mix

Service channels

Products and income

Costs

Net non-interest income33% of Operating income

Net interest income67% of Operating income

Assets Income

18 Branches

Loans/Islamic financing Deposits/Islamic deposits Investments/Islamic investments Other financial services

48 ATMs Mobile & Onlinebanking

Relationshipmanagers/Sales team

3 Subsidiaries Call centre

23% of operating income 2% of operating income 9% of operating income

Employee expenses Depreciation and amortization Other administration expenses

Net returns

34% of operating income 10%

Net profit Return on average equity

58%9%6%

27%100%

56%19%8%

17%100%

Corporate bankingBusiness bankingRetail bankingTreasury & ALMTotal

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Our segment focusversus the industry

Industry(31 December 2017)

Source: Central Bank Statistical Bulletin December 2017

NBF seeks to differentiate itself by clearly focusing on specific industry segments and establishing its expertise in these sectors. It is this focus that has allowed the bank to develop exceptional understanding of the key drivers of the UAE economy and to build an intimate understanding of our customer’s needs.

NBF(31 December 2017)

Agriculture, 0.1% Mining and Quarrying, 1%

Manufacturing, 5%

Electricity, Gas and Water, 1%

Construction and Real Estate, 21%

Trade, 11%

Transport, Storage andCommunication, 4%

Financial Institutions (Excluding Banks), 9%

Government, 12%

Personal Loans, 28%

Others, 10%

Agriculture, 0.4% Mining and Quarrying, 2%

Manufacturing, 16%

Electricity, Gas andWater, 1%

Construction and Real Estate, 8%

Trade, 35% Transport, Storage andCommunication, 5%

Financial Institutions (Excluding Banks), 1%

Government, 2%

Personal Loans, 12%

Others, 18%

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Operatingenvironment

Source: Business Monitor International – March 2018 - 10 Years Forecasts report

Nominal GDP (US$ bn)Real GDP growth (%)GDP per capita (US$ bn)Inflation (%)Current account balance (% of GDP)Population (mn)

2017364.21.838,7442.26.69.40

2018386.12.840,4643.17.39.54

2019410.13.342,3522.86.89.68

2020435.83.544,4122.76.99.81

2021460.63.046,3522.66.49.94

2022486.73.148,3752.55.310.06

2023513.22.950,3762.54.710.19

The UAE’s economy is expected to maintain real GDP growth rates in the range of 2.8% to 3.5% for the next 3 years from 1.8% in 2017. The UAE economy is expected to outperform in terms of growth over the next decade in the Middle East. Its diversified source of growth and solid operational framework will attract exports and investment. The country will also benefit from the Expo 2020 to be held in Dubai. In the short term, the regional standoff and geo-political situation can weigh on the expected growth rates.

The country has one of the most diversified economies of the Gulf Cooperation Council (GCC) and the most favorable business environment in the region. In the World Bank's Ease of Doing Business ranking for 2018, the UAE came in above its GCC peers in 21st position, up from 26th a year before.

Economic activity is expected to pick up in the UAE in 2018 and beyond, as oil production returns to growth in Abu Dhabi and gains in oil prices drive business and consumer confidence higher. A favorable business environment and greater economic diversification will continue to create numerous investment opportunities, with the construction, tourism and logistics sector set for rapid growth.

UAE’seconomic outlook

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Highlights of strategic projects in Fujairah include:

Abu Dhabi Airports and Fujairah International Airport have signed a Memorandum of Cooperation to draw up a development master plan that will ensure the delivery of an efficient and adequate expansion program for Fujairah International Airport, which, when fully realised, will benefit the emirate’s tourism and business sectors.

Plans have been finalised to develop residential compounds and towns on the outskirts of Fujairah city, a project that will run up to 2030. Work has also begun on the Mohammad bin Zayed residential city comprising residential units, mosques, schools, clinics and parks.

The seventh expansion phase of the Black Pearl Project launched by Vopak Horizon Fujairah would enable the world’s largest tankers to dock at the Fujairah port, further entrenching Fujairah’s reputation as not just the world’s second largest bunkering port but also as a global hub for refined oil products.

Emirate of Fujairah: Strategic and regional importance

Fujairah is one of the seven emirates that makes the United Arab Emirates, lying on the east coast of the country along the Gulf of Oman. It's known for its beaches and the Hajar Mountains, which run through much of the emirate.

Fujairah is the world’s second largest bunkering port after Singapore and the emirate boasts some of the world’s most advanced storage facilities.

Often referred to as the Arabian jewel, the emirate of Fujairah is a beautiful, hospitable and safe tourist destination. It is popular with residents in the UAE and is a well-established favourite for European visitors.

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Overview of National Bank of Fujairah

NBFBoard of Directors

His Highness Sheikh Saleh Bin Mohamed Bin Hamad Al SharqiChairman - NBFChairman of Department of Industry & Economy, Government of FujairahChairman of Fujairah Port AuthorityChairman of Fujairah Petroleum Company Chairman of Fujairah National Group

His Excellency Easa Saleh Al Gurg, KCVO, CBEDeputy Chairman - NBFChairman of Easa Saleh Al Gurg GroupChairman of Al Gurg Fosroc LLCChairman of Arabian Explosives Company LLCChairman of Al Gurg Unilever LLCChairman of Al Gurg Smollan Commercial Investments LLCChairman of Al Gurg Decorative Paints LLC

Board of Directors and their external positions

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NBFBoard of Directors

Sheikh Hamad Bin Saleh Bin Mohamed Al SharqiBoard Member - NBFVice Chairman of Fujairah National GroupChairman of Al Sharq Healthcare (The Healthcare Group of Fujairah National Group)

Mr. Hussain Mirza Al SayeghBoard Member - NBFDeputy Chairman of Oilfields Supply Center LimitedDeputy Chairman of Al Nasr LeisurelandDirector of Emirates National Oil CompanyDirector of Emirates National Bank of Dubai (ENBD)Chairman of Jotun UAE Limited (LLC)Chairman of Jotun Powder Coatings UAE Limited (LLC)Director of Marsh Insco LLC Director of Mawarid FinanceDirector of Senses

Board of Directors and their external positions

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NBFBoard of Directors

Dr. Sulaiman Mousa Al JassimBoard Member - NBFBoard Member of Al Fujairah National Insurance CompanyChairman of Al Jassim Trading GroupChairman of Al Jassim Marble and Tile FactoryVice Chairman of Sultan Al Owais Culture Foundation Chairman of Al Khaleej Investment Education Services Member of Board of Abu Dhabi University

Mr. Saif Sultan Al SalamiBoard Member - NBFManaging Director of Fujairah National GroupBoard Member of Al Fujairah National Insurance Company Managing Director of Fujairah Investment Company

Mr. Mohamed Obaid Bin Majed Al AleeliBoard Member - NBFDirector General of Department of Industry & Economy, Government of Fujairah

Board of Directors and their external positions

14

NBFBoard of Directors

Mr. Abdullah Fareed Al GurgBoard Member - NBFGroup General Manager of Easa Saleh Al Gurg GroupDirector of Al Gurg Fosroc LLCDirector of Al Gurg Smollan Commercial Investments LLCDirector of Al Gurg Decorative Paints LLCDirector of Easa Saleh Al Gurg Charity Foundation

Mr. Ahmed Saeed Al RaqbaniBoard Member - NBFChairman of Fujairah Building Industries Board Member of Al Taif Investment Member of the Board of Trustees, University of FujairahManaging Director of East Coast Group

Board of Directors and their external positions

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NBFManagement

PositionName

Chief Executive OfficerVince Cook

Chief Financial OfficerAdnan Anwar

Chief Operations OfficerBalaji Krishnamurthy

Chief Risk OfficerJustin Morgan Cooper

Head of Corporate & Institutional BankingVikram Pradhan

Head of Retail BankingColin Dallas

Head of Human ResourcesAbdulla Aleter

Senior Executive Officer - NBF Capital LimitedDas P B

Senior Executive Officer - Fujairah RegionSharif Mohd. Rafei

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Ourstrengths

Strongshareholdersupport and

Fujairah’s flagshipbank

A top threebusiness banking/

SME player

Stronggovernance,controls andregulatory

compliance

Talented, engagedand productive

workforce

Preferredadvisory &syndicationpartner for

mid-corporates

Well-regarded asa relationship

bank

Industry-focusedbusiness

segmentation

A leader in tradefinance, precious

metals &diamonds and

treasurybusinesses

17

Year-on-year recognition at the Banker ME awards

2018Best Corporate Bank UAEBest Commercial Bank UAE Best Customer Service – Corporate & Investment BankingBest Treasury ManagementBest SME Trade FinanceBest Emirati Ladies Proposition –Elham Best Priority Banking Service

2017Best Corporate Bank UAEBest Commercial Bank UAE Best Customer Service – Corporate & Investment Banking Best Corporate Advisory Service –NBF CapitalBest Treasury ManagementBest SME Internet Banking ServiceBest SME Trade Finance Offering

2016Best Corporate Bank UAEBest Commercial Bank UAE Best Customer Service –Corporate & Investment BankingBest Corporate Advisory Service – NBF Capital Best Cash ManagementBest Treasury Management

2015Best Corporate Bank UAEBest Commercial Bank UAEBest Corporate Advisory Service –NBF CapitalBest SME Customer Service Best SME Trade Finance OfferingBest SME Internet Banking ServiceBest Treasury Management

2014Best Domestic Commercial Bank Best Treasury ManagementBest SME Trade Finance Offering Best Customer Service – Corporate & Investment Banking

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Recognised for delivering excellence and value to its clients

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Best Islamic Window 2017 by Islamic Business and Finance Awards.

Shari’a-compliant Window 2017 by The Banker’s Islamic Bank of the Year Awards.

Best HR Team Award by Human Capital Forum MENA 2018, Gulf Employee Experience Awards 2017 and 2018, MENA HR Excellence Awards 2016.

Mark of Excellence for Nationalisation initiatives by Middle East HR Excellence Awards 2015 and 2016.

Best Innovation in Employee Engagement Award by HR Excellence Awards 2016.

Nationalisation Award & Overall Gulf Employee Experience Award 2018 by The Gulf Employee Experience Awards.

All-Rounder Credit Card of the Year voted by YallaCompare Banking Awards H1 2017.

Bankers’ Choice Award 2016 by The Asian Banker.

Best Islamic Window UAE 2016 title by Islamic Business & Finance Magazine.

Best Local Bank – UAE by EMEA Finance Middle East Banking Awards 2015.

Best Customer Experience Team - NBF Capital Limited by 2015 Gulf Customer Experience Awards.

CFO of the Year Award in the banking and finance category by The CFO Middle East Awards 2017.

2015 and 2016 CIO 100 Award for excellence in IT.

Ranked amongst the top 50 most successful listed businesses across the GCC in the Top CEO Awards by Trends magazine in association with Insead Business School and Hawkamah.

Our segmented and customer-focused business model

Corporate BankingPrecious Metals & DiamondsEnergy & MarineServices & ManufacturingLarge Corporates & GovernmentGlobal Trade & DiversifiedContractingGovernment and Liability ManagementEquipment FinanceNBF Elham

Financial Institutions

Business Banking

Islamic BankingInvestment Banking

Corporate & Institutional Banking

Conventional and Islamic customer segmentsPriorityPreferredPersonalIslamicBasicMicroenterprises

Retail

Treasury & InvestmentsAsset & LiabilityManagement

Islamic Banking

Treasury/ALM

20

Financial partner for businesses in the UAE

Cultivating rewarding, lasting partnerships with customers by helping them leverage growth opportunities thus positioning the bank as the preferred partner for businesses across the UAE.

Distinguished multidisciplinary and relationship-focused business model, leveraging unparalleled sectorial expertise and attracting the best experts to cater to clients’ evolving requirements.

NBF has various sector-focused divisions which serve clients across the UAE, offering bespoke and customised solutions.

Dedicated relationship managers have an in-depth understanding of the industry that they deal with, allowing them to offer professional advice to their customers about latest trends and challenges thus helping them to grow their businesses.

The launch of the NBF Elham Unit focused on catering to Emirati businesswoman's requirements, and the establishment of the specialised diamond financing team focused on providing short-term trade finance products to established rough and polished diamond traders and manufacturers.

NBF received industry-wide industry recognition at the Banker Middle East Industry Awards, receiving the “Best Corporate Bank” award for the past four years.

Organising annual NBF Knowledge Series, a knowledge exchange platform that brings together the leading business minds in the region to share their insights on the issues of the day, empowering clients with the knowledge they need to succeed.

21

A leading trade finance player

NBF’s award-winning trade finance team handles transactions professionally and efficiently. Our quick response time to client requirements is a source of pride for the bank. Also, our state-of-the-art online banking platform - NBF Direct facilitates customers to transact and authorise trade transactions with full security and ease from their offices.

Our comprehensive trade finance product offerings include:

Import Financing Issuance of Letters of Credit, Import Documentary Collections, Trust Receipts Financing, Avalisation of Import Documents, Shipping Letter of Guarantees.

Export FinancingAdvising & Confirmation of Letter of Credits, Negotiation of Trade Documents, Discounting of Banker’s Acceptance, Irrevocable Reimbursement Undertakings.

Letter of GuaranteesIssuance of Letter of Guarantees for corporate and institutional clients.

Risk ParticipationDistributes and participates in trade transactions with institutional clients.

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Our award-winning treasury team brings extensive local and regional market knowledge to the development of a wide array of bespoke solutions for our clients.

Market maker in UAE dirhams.

Active trader in GCC and major currencies.

Significant provider of physical gold bullion in the UAE.

Structured derivatives in all major currenciesand commodities – energy, soft commodities,base and precious metals.

Fixed income.

Available at: Bloomberg (NBFJ) and Reuters (NBFX). AEDGOLD

Strongtreasury capabilities

23

Strongfocus on SMEs

Given the importance of the SME sector, NBF was one of the first banks to set up a dedicated team supporting small and medium-sized businesses in the UAE.

NBF is among the top three business banking players in the country and is recognised by peers for its strong mid-market presence.

Business banking contributes around 20% of the bank’s operating income.

Recognised at the Banker Middle East Awards for seven consecutive years for achieving the “Best Commercial Bank” title.

Partnered with Thomson Reuters to educate SMEs through “Accelerate SME” platform. The portal is completely free to join and offers invaluable advice for business owners and entrepreneurs.

24

Growing Islamic banking offerings

Islamic Finance in the UAE continues to witness year-on-year growth with the country recognised as one of the leaders in the Islamic Finance Indicator ranking of The Global Islamic Economy Report 2016/17. As the UAE Government continues to work towards developing the Islamic economy in the country, NBF Islamic has capitalised on the support and positive market developments to become a prominent performer in the sector.

NBF Islamic offers retail and corporate banking products complying with Shari’a principles based on structures including Murabaha, Wakala, Qard, Tawarruq, Ijara, Istisna Forward Ijara and Waad. These Shari’a-based product structures cater to various business offerings in retail, corporate and treasury making us one of the unique Islamic Banking platforms that offers such a diverse range of products and structures.

During its initial years of operation, NBF Islamic has grown at an exceptional pace and achieved an asset base of AED 3.9 billion and operating income of AED 73.5 million for the year 2017.

The bank’s aim is to position NBF Islamic as the trustworthy and credible partner for all Islamic banking products.

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Solid advisory capabilities through NBF Capital

AED 400M syndicated term loan facility

Financial advisor and Book-runner

NBF Capital Limited

August 2017

AED 200M syndicated working capital facilities

Financial advisor and Book-runner

NBF Capital Limited

December 2017

AED 280M syndicated term loan facility

Financial advisor and Book-runner

NBF Capital Limited

May 2018

NBF Capital is a bespoke financial solutions provider specialising in consultancy and advisory services ranging from loan syndication to mergers and acquisitions, business formation and corporate restructuring. Operating out of the Dubai International Financial Centre, NBF Capital is regulated by the Dubai Financial Services Authority.An experienced partner like NBF Capital can leverage its business expertise and local insights to help businesses make the most of opportunities within the UAE and beyond.

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Complete range ofproducts and services

Corporate & Institutional Banking Retail Treasury/ALM Islamic Banking

Transaction BankingCash Management Payments Collections Liquidity Management

Trade Services Exports Imports Receivable Services Guarantees

Corporate Advisory & Lending Working Capital Syndication Project Finance Corporate Finance Sales, Trading, Structuring

NBF Direct Online Banking Services

Account Services Deposits Personal Loans Auto Loans Home Loans Construction Loans Credit & Debit Cards NBF Direct - Online Banking Services Insurance Products Customised Product Bundles for business segments

Treasury Management Foreign Exchange Money Markets Derivatives Commodities Fixed Income Investment

Asset & Liability Management

Account Services Standard Current, Saving & Corporate Accounts Murabaha, Mudaraba & Wakala Deposits Credit & Debit Cards

Financing Personal Finance Home Finance Ijara Financing Murabaha Financing Istisna Forward Ijara Equipment Finance Real Estate Finance Auto Finance Corporate Advisory,Syndications, Treasury Sales, Trading, Structuring

Transaction Banking Cash Management Trade Services Working Capital Management Guarantees

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Scalingtowards digitalisation

NBF Direct online banking provides peace of mind and greater control over transaction to our customers with its comprehensive suite of user-friendly functionalities and robust security features, be it for business or personal banking use.

The state-of-the-art online banking platform not only includes the essential transactional and real-time reporting applications but multi-level authorisation and 360 degree business dashboards for account reporting, payments and trade finance functionalities.

The NBF Direct mobile banking app provides customers with real-time banking facility on the go, anytime, anywhere.

Also, NBF ATMs and Cash & Cheque Deposit Machines (CDMs) located at our branches and off-site locations cater to all business segments. Whether it is an online/real-time cash deposit, cheque deposit or updating Emirates ID in the bank's records, our network of fully-functional ATMs/CDMs provides a great way of self-service banking.

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NBF on social media

Follow us on:

NBFUAEnbfuae NationalBankofFujairah National Bank of Fujairah

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Dubai Head OfficeAl Fujairah BuildingKhalid Bin Waleed Street PO Box 2979Dubai

Fujairah Head OfficeNBF BuildingHamad Bin Abdullah Street PO Box 887Fujairah

NBF branches1. Abu Dhabi2. Mussafah 3. Al Ain4. Abu Hail5. Al Quoz 6. Al Ras 7. Bur Dubai8. Jebel Ali9. Sharjah10. Fujairah

11. Dibba12. Fujairah City Centre13. Fujairah Court14. Fujairah Free Zone15. Masafi16. Qidfah17. Tawian 18. Al Reef - Electronic Banking Service Unit

NBFbranch network

Our branches are located across the UAE, with Head Offices in Dubai and Fujairah.

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Financialperformance

Balance sheet growth

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

In A

ED B

n

-

5.0

10.0

15.0

20.0

25.0

30.0

In A

ED B

n Total assets Total customer deposits

Shareholders’ equity Net loans and advances

24.6

30.0

35.7

36.7

38.1

2014 2015 2016 2017 2018 H1

CAGR : 15.7%

17.9

21.6

25.9

27.9

28.2

-

5.0

10.0

15.0

20.0

25.0

30.0

2014 2015 2016 2017 2018 H1

In A

ED B

n

CAGR : 17.8

%

16.3

19.7

22.8

24.1

26.0

2014 2015 2016 2017 2018 H1

CAGR : 14.4

%

3.4

4.3

4.6

4.9

4.9

-

1.0

2.0

3.0

4.0

5.0

6.0

2014 2015 2016 2017 2018 H1

In A

ED B

n

CAGR : 11.4

%

32

Profit & loss growth

Impairment provisionOperating income

Net profit Operating profit

505.

4

558.

8

460.

4

471.

9

310.

2

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

In A

ED M

CAGR : 11.1%

2014 2015 2016 2017 2018 H1

637.

8

766.

9

866.

0

913.

6

519.

9

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

In A

ED M

CAGR : 1

4.8%

2014 2015 2016 2017 2018 H1

1,02

5.2

1,21

3.1

1,31

9.1

1,37

8.5

768.

7

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

In A

ED M

CAGR : 1

3.4%

2014 2015 2016 2017 2018 H1

132.

4

208.

1

405.

5

441.

7

209.

7

- 50.0

100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 500.0

In A

ED M

CAGR : 22.2%

2014 2015 2016 2017 2018 H1

33

Key performance indicators

Return on average equity Return on average assets

Cost to income ratio Impairment provision to income ratio

2.2% 2.0%

1.4% 1.3% 1.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

2014 2015 2016 2017 2018 H1

37.8% 36.8%

34.4% 33.7% 32.4%

20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% 40.0%

2014 2015 2016 2017 2018 H1

12.9% 17.2%

30.7% 32.0%

27.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2014 2015 2016 2017 2018 H1

15.8% 14.6%

10.4% 10.0% 12.7%

0.0% 2.0% 4.0% 6.0% 8.0%

10.0% 12.0% 14.0% 16.0% 18.0%

2014 2015 2016 2017 2018 H1

34

Equity and capital base progression

35.0% 32.6% 31.7%

41.4% 43.4%

0.0% 5.0%

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

2013 2014 2015 2016 2017

Total capital base

Dividend payout

Tier 1 capital ratio

Book value per share

14.6% 14.4%

15.7%

15.2% 15.1%

13.5%

14.0%

14.5%

15.0%

15.5%

16.0%

2014 2015 2016 2017 2018 H1

3.9

4.9 5.2

5.6 5.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

In A

ED B

n

2014 2015 2016 2017 2018 H1

2.60

2.77 2.82

2.85

2.63

In A

ED

2014 2015 2016 2017 2018 H12.452.502.552.602.652.702.752.802.852.90

35

Risk managementand corporate governance

The NBF Board and Management are committed to upholding the highest ethical and corporate governance standards in line with industry best practices. This approach underpins a sustainable business and maintains a high level of trust and integrity among various stakeholders of the bank.

The bank’s corporate governance structure includes well documented and regularly reviewed governance policies and procedures. The governance structure not only ensures high levels of transparency and accountability, but also provides an appropriate functional independence and control environment to carry out business activities.

The Board plays a key role in the approval and oversight of the bank’s strategy, principal policies, risk appetites, senior appointments and supervision and remuneration of senior executives. The bank has clearly defined, in its Corporate Governance Framework Manual, the responsibilities of the Board of Directors, its corporate governance structure and delegated authorities to enable the effective and efficient fulfillment of its responsibilities. The Memorandum and Articles of Association was amended in accordance with the new Federal Law No. 2 of 2015, ensuring alignment with the latest laws and governance practices, for ongoing success.

Corporategovernance

37

NBF’s risk management philosophy is consistently focused on embedding a “Three Lines of Defence” model. Key attributes include: Focus on customers and our long-term strategy Effective risk management is more than just a robust framework with supporting policies, processes and controls. NBF’s risk culture, which is less tangible, is equally important and all staff have to respect the need to adhere to the bank’s values. NBF’s businesses are customer-focused, placing an emphasis on sustainable long-term relationships. During 2017, the risk function facilitated an inaugural risk culture survey to better understand the motivation of employees for decision-making that is aligned with the bank's values. Over 80% of the staff responded to the survey and various management actions have followed.

Ownership of risk at the business level Business units (front line and support functions) are ultimately responsible for identifying risks within their respective business areas and ensuring that they are appropriately managed. All management staff have a “well managed” key performance indicator that is designed to reaffirm personal accountability towards decision-making. Risk management independenceNBF places importance on having a strong, independent “second line” risk function. During 2017, the risk function was enhanced to strategically align its capabilities to the material risks of NBF. The Chief Risk Officer has unfettered access to the Board and subcommittees and reports to NBF’s Chief Executive Officer.

Understanding worst-case outcomes The focus is on recognising the consequences of worst-case scenarios which may impact NBF and determine whether the risk can be tolerated.

Enterprise risk management

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Compliance management

During 2017, NBF renewed its focus towards managing compliance risk across its various business activities. As a leading National Bank in the region, it ensures sound capabilities to monitor and manage its regulatory obligations in the areas in which the bank operates and to ultimately mitigate risk in the areas of Sanctions & Anti Money Laundering. NBF recently reinvigorated its approach towards managing compliance risk (Regulatory/Sanctions). This has included: ` Establishing an independent Compliance function that has unfettered access to the Board Conducted an independent review of its compliance capabilities against best practices Created centres of excellence within the Compliance function itself, overseeing financial crime, regulatory compliance and sanctions The Compliance team consists of a range of specialists that constantly monitor both staff and NBF clients’ behavior.

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Listening to the voices of our customers and staff

Providing the best in customer service - at the heart of everything we do

NBF’s customer satisfaction survey, conducted annually with the help of an independent research consultancy, continues to reaffirm the bank’s strong focus on service quality. Its sixth and latest survey in 2017 was no exception. The results continued to be robust and consistent in a challenging market environment. Not only was NBF performing more favourably than banks in its peer group, the bank’s service levels were increasingly compared to the larger local and multinational financial institutions - a comparison that highlights our consistency in delivering a superior brand of customer service.

Performance indicator TNS survey feedback

Customer retention

Peer group

Technology-driven solutions

Execution capabilities

Relationship managers

NBF reports a strong scoring index in a challenging year when all bank users reported softening of satisfaction scores.

NBF continues to score better than the traditional peer group, where clients are happy with services from NBF. However, competitive advantage needs to be developed further in the market.

NBF’s ability to support its banking relationships with top-notch service delivery, especially by internet banking, has been well-regarded.

NBF reports consistent “Good” to “Very Good” scores for its executional capabilities. However, overall satisfaction can be boosted by aiming to further improve the current perception.

A source of pride for NBF. Satisfaction with the Relationship Managers of NBF remains strong.

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Giving back to the community

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Major activities as part of giving back to the community during 2017 were:

NBF’s inaugural Fujairah Run took place on 1 December, 2017 under the patronage of His Highness Crown Prince of Fujairah and was a grand success with more than 1,500 participants and spectators and is scheduled to feature as an annual flagship event. Ongoing sponsorship of organisations like the Mission to Seafarers, Emirates Wildlife Society - WWF and Fujairah Welfare Association. A donation drive with staff distributing key essentials to workers at a Ramadan tent celebrating the spirit of Ramadan with the community. Partnership with the Fujairah Higher Colleges of Technology that saw the bank provide financial support and internship opportunities to students. Ongoing support to Dubai Blood Donation Centre.

NBF has been awarded the Dubai Chamber CSR Label for its strong commitment to upholding the best practices in the field of corporate social responsibility and its support for developing a sustainable environment.

In 2017, NBF’s CSR commitment was enacted by the signing of the Dubai Declaration on Sustainable Financing with an effort to contribute to UAE’s Green Agenda and improve CSR practices by 2021, supporting UAE to become one of the best countries in the world by its Golden Jubilee Anniversary.

With that, the bank has focused on developing a roadmap over the coming five years. This has resulted in: Establishment of Sustainability Steering Committee to steer the CSR efforts and provide support and oversight to the CSR Committee for improving NBF’s direct and indirect environmental and social performance. Issuing the bank’s inaugural CSR Report that provides a transparent report of our existing contributions towards CSR and an ambitious roadmap towards our future CSR aspirations.

Engaging and empowering talent drives NBF’s success

NBF’s staff is one of the most motivated and engaged groups of people in the local banking sector and across the region, a fact borne out of the bank’s 7th annual employee engagement survey conducted by Korn Ferry Hay Group. NBF was awarded the “Outstanding Employer - Middle East” award by Korn Ferry Hay Group in 2017 that also included Global High Performing Organisations (HPO) peer group. This was achieved by engaging and enabling the bank’s employees through a combination of wellness, social and talent development initiatives.

Performance indicator TNS survey feedback

Overall climate index

Employee engagement

Employee enablement

Clear and promising direction

Quality and customer focus

The bank’s overall climate index stands at 77%

NBF - 77% (High Performing Organisations - 73%, GCC Organisations - 73%)

NBF - 77% (High Performing Organisations - 72%, GCC Organizations - 73%)

89% of the employees feel that they have a clear and promising direction at NBF

86% of the employees feel that we are customer-focused and deliver quality service

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NBF has developed a spirit of camaraderie through various sporting activities. The bank has been active throughout the years in organising events ranging from bowling and cricket to football tournaments, which see staff participating with great enthusiasm.

Also, intended as a fun way to stay healthy, the NBF Running Club has grown at a rapid pace and often participates at various marathons around the country where many runners achieve their personal bests.

Maintaining a work-life balance

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Key achievements

An Emiratisation ratio of 42% in 2017, well above the industry average.

A Management Trainee Program (MTP) and Career Advancement Program (CAP), where capable UAE nationals are developed on a fast track basis to take on more complex jobs and challenges.

A national development program for existing Emirati staff to further support them in their development.

We also take the initiative to engage with future leaders at the country’s career fairs.

Nurturing our Emirati talent

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How we will measure our performance going forward

Financial Target Non-Financial Target

Revenue growth

Non-interest income ratio

ROAA

Cost to income ratio

ROAE

5%-10%

30-35%

Top 10 among local banks in profitability

Top 10 among local banks in cost to income ratio

10%-15%

Customer satisfaction

Staff satisfaction

Emiratisation ratio

Credit rating

Maintaining the highest levels of compliance, high quality KYC and AML processes and preparing well for new regulations

75% or more are satisfied

75% or more are satisfied

Greater than 40%

Investment grade credit rating by international credit rating agencies

Complying with Central Bank and Basel timelines

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The information contained herein has been prepared by National Bank of Fujairah PJSC (NBF). NBF relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

This presentation has been prepared for informational purposes only and does not form a part of any sales offer, solicitation or invitation to subscribe for, purchase or sell any securities. Neither should this information, or any part of it, be used in connection with any contract or commitment with the bank whatsoever.

This presentation may also contain projections or other forward-looking statements regarding future events or the future financial performance of NBF. These forward-looking statements include all matters that are not historical facts. The inclusion of such forward-looking information shall not be regarded as a representation by NBF, or any other person, that the objectives or plans of NBF will be achieved. NBF undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Disclaimer

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National Bank of Fujairah PJSCHamad Bin Abdullah StreetPO Box 887, FujairahTel: 600 565551 Fax: +971 9 202 9403