National Development Bank Plc · CSELK:NDB.N0000

National Development Bank — H1 2022 Earnings Presentation

16 slides from National Development Bank's earnings presentation, 2022

1. Slide 1: Investor Update - H1 2022

   Investor Update - H1 2022 National Development Bank PLC NDB.N0000 National Long-term Rating: A(lka) RWN, Fitch Ratings Lanka Limited

2. Slide 2: Forward Looking Statements

   FORWARD LOOKING STATEMENTS This document has been prepared by National Development Bank PLC [“NDB”, “Bank” or the “Group”] solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclos

3. Slide 3: Corporate Participants

   Corporate Participants PRESENTED BY Dimantha Seneviratne Director/ Chief Executive Officer Panelists Sanjaya Perera – Senior Vice President – Personal Banking & Customer Experience Deepal Akuratiyagama – Chief Operating Officer Suvendrini Muthukumarana – Vice President – Finance Niran Mahawatte – Vi

4. Slide 4: Agenda

   AGENDA PART I - CORPORATE PROFILE PART II – OPERATING ENVIRONMENT PART III – FINANCIAL PERFORMANCE – H1 2022 PART IV – WAY FORWARD PART V – Q&A 4

5. Slide 5: Part I - Corporate Profile

   PART I - CORPORATE PROFILE Our Vision Our Values Our Legacy Our Team Our Profile The driving Integrity Over 40 years Over 3,000 Credit rating force for a Creativity of service to NDBers across affirmed at financially Excellence the nation the NDB A(lka) RWN empowered Sincerity Group Sri Lanka Accoun

6. Slide 6: Part II - Operating Environment

   PART II – OPERATING ENVIRONMENT Context to operating landscape in H1 2022 • Further tightening of monetary policy, 850 bps increase in SDFR, SLFR and Bank Rate in H1 2022 • LKR 200 peg for USD removed by CBSL, causing sharp rupee depreciation Rupee now stabilized at around LKR 360/- • Restrictions o

7. Slide 7: Part III - Financial Performance Overview

   PART III – FINANCIAL PERFORMANCE OVERVIEW Income/ Profitability Total operating income LKR 22.4 Bn – YoY 46% Profits moderated at an equitable level Impairment charges LKR 13.9 Bn – YoY 235% given the significant increase in impairment Pre-tax profitability LKR 2.7 Bn - YoY (56%) charges Post-tax pr

8. Slide 8: Financial Performance: Income

   PART III – FINANCIAL PERFORMANCE INCOME LKR Mn H1 2022 H1 2021 Variance % Gross Income 44,540 30,473 14,067 46 Interest Income 37,156 25,461 11,695 46 Interest Expense 22,167 15,119 7,048 47 Net Interest Income 14,989 10,342 4,647 45 LKR Mn H1 2022 H1 2021 Variance % Net fee & comm income 3,068 2,58

9. Slide 9: Financial Performance: Impairment Charges

   PART III – FINANCIAL PERFORMANCE IMPAIRMENT CHARGES LKR Mn H1 2022 H1 2021 Variance % Impairment charges 13,928 4,152 9,776 235 • Impairment charges inclusive of provisions made for foreign currency denominated government securities and loans to customers • Impairment provisions for loans strengthen

10. Slide 10: Financial Performance: Operating Expenses and Profitability

    PART III – FINANCIAL PERFORMANCE OPERATING EXPENSES Cost composition % LKR Mn H1 2022 H1 2021 % H1 2022 H1 2021 Personnel expenses 2,938 2,794 5 51 55 Depreciation & amortization 410 428 -4 7 8 Other expenses 2,405 1,886 28 42 37 Total operating expenses 5,753 5,108 13 100 100 • Inflationary pressur

11. Slide 11: Financial Performance: Balance Sheet

    PART III – FINANCIAL PERFORMANCE BALANCE SHEET LKR Bn H1 2022 FY 2021 YTD LKR YTD % Total assets 816 704 112 16 Investments 164 146 18 12 Gross loans 609 526 83 16 Total deposits 645 552 93 17 Borrowings 89 79 10 13 Total equity 64 59 5 8 • Total assets, loans and deposits growth inclusive of inflat

12. Slide 12: Financial Performance: Investor Ratios

    PART III – FINANCIAL PERFORMANCE INVESTOR RATIOS Bank Group H1 2022 FY 2021 H1 2022 FY 2021 Closing price per share [LKR] 35.00 68.90 - - EPS [LKR] [Annualized] 9.05 20.68 9.15 22.44 ROE [%] [Annualized] 5.61 12.27 5.34 12.47 ROA [%] [Pre-tax] [Annualized] 0.71 1.55 0.76 1.67 Book value per Share [L

13. Slide 13: Capital & Liquidity Position

    PART III – FINANCIAL PERFORMANCE CAPITAL & LIQUIDITY POSITION Bank Group H1 2022 FY 2021 H1 2022 FY 2021 Common Equity Tier 1 Capital Ratio % [Minimum Requirement - 8.63 10.01 8.99 10.53 7% - 2021-6.5% ] Tier 1 Capital Ratio % [Minimum Requirement – H1 2022-8.5% - 8.63 10.01 8.99 10.53 2021-8%] Tota

14. Slide 14: Part IV - Way Forward

    PART IV – WAY FORWARD • Challenged conditions ahead despite certain level of political stability • Tactical adjustments to the Bank’s strategy underway • Cautious growth in the loan book prioritizing on capital efficient products given weaker credit sentiments • Priorities will be on • preserving as

15. Slide 15: Part V - Q&A

    PART V – Q&A Please use the chat option to pose your questions to the CEO and Panel. Dimantha Seneviratne Director/ Chief Executive Officer Panelists Sanjaya Perera – Senior Vice President – Personal Banking & Customer Experience Deepal Akuratiyagama – Chief Operating Officer Suvendrini Muthukumaran

16. Slide 16: NDB Investor Relations

    ANALYSTS SUPPORT NDB Investor Relations  Clearly defined Quarterly Results Calendar released at the end of each quarter  Webinar transcripts hosted to the NDB Corporate website/ IR page in playback video and written transcript forms  Dedicated communication channels made available for any queries

National Development Bank — H1 2022 Earnings Presentation on 6ix