Nibc Covered Bond Presentation

NIBC COVERED BOND PRESENTATION

April 2020

1 EXECUTIVE SUMMARY

▪ Focused mid-market corporate and retail franchise with differentiated approach

▪ Return on equity of 11.4% in 2019

▪ Net interest margin of 1.89% in 2019 NIBC ▪ Credit loss expenses at EUR 49 million in 2019

▪ Cost-to-income ratio at 44% in 2019

▪ Solid capital position, with fully-loaded CET 1 ratio at 17.1% and leverage ratio of 7.1% at the end of 2019

▪ AAA/AAA (S&P/Fitch) rated Conditional Pass-Through Covered Bonds

▪ Law-based programme, registered with the Dutch Central Bank

Covered Bond ▪ Favorable regulatory treatment Programme ▪ Documented minimum overcollateralisation of 15%

▪ Cover pool of prime Dutch residential mortgage loans

▪ Total residential mortgage book of EUR 9.1 billion1

▪ On the back of strong performance in the Dutch housing market, NPLs are low and credit loss expense in 2019 was Mortgage Business negative (recovery) by EUR 4 million ▪ Origination via independent intermediaries, underwriting criteria fully controlled by NIBC

▪ In-house arrears and foreclosure management

1: Excludes buy-to-let exposure of EUR 0.7 billion 2 TABLE OF CONTENTS

1. NIBC BUSINESS AND FINANCIAL UPDATE FULL YEAR 2019 4 2. DUTCH HOUSING AND MORTGAGE MARKET 22 3. RETAIL CLIENT OFFERING AND ASSET QUALITY 25 4. CONDITIONAL PASS-THROUGH COVERED BOND PROGRAMME 29

APPENDIX I MORTGAGE BUSINESS AT NIBC 33 APPENDIX II MAIN UNDERWRITING CRITERIA 36 APPENDIX III ASSET COVER TEST 39 APPENDIX IV CONDITIONAL PASS-THROUGH SCENARIOS 41 APPENDIX V INVESTOR REPORTING AND LEGAL FRAMEWORK 43

3 NIBC BUSINESS AND FINANCIAL UPDATE FULL YEAR 2019

4 FULL YEAR PERFORMANCE Delivering upon our objectives with strong performance over 2019

MEDIUM-TERM METRICS OBJECTIVES FY 2019 COMMENTS

▪ Strong net profit 2019 of EUR 194 million Return on Equity 10 - 12% 11.4% (Holding) ▪ Return on Equity (ROE) of 11.4%, in line with medium-term objective (FY 2018: 13.6%)

Cost-to-income ▪ Excluding non-recurring items profitability increased from 10.8% to < 45% 44% (Holding) 11.8% ▪ Fully-loaded cost-to-income ratio of 44%, including costs related CET 1 to the IT re-transition and regulatory projects as well as a ≥ 14% 17.1% (Holding) restructuring provision of EUR 9 million related to the discontinuation of the capital markets activities ▪ Dividend pay-out Strong capital position with CET 1 ratio of 17.1% at YE 2019, ≥ 50% 59% (Holding) including full effects of the IMI ▪ Total dividend proposed of EUR 0.78 per share, of which EUR 0.25 paid as interim dividend and EUR 0.53 to be declared Rating1 BBB+ BBB+ Stable Outlook (Bank)

Note: Financials for NIBC Holding as of FY 2019, unless otherwise stated 5 1: On 1 April 2020 Fitch placed NIBC on rating watch negative and on 23 April 2020 S&P changed its outlook on NIBC to negative, from stable TURN OF THE ECONOMIC CYCLE Continued rebalancing of our portfolios towards more resilience

NIBC PORTFOLIO TRANSFORMATION SINCE 2016 COMPOSITION NIBC’S COMMENTS CLIENT ASSETS FY 2016 vs. ▪ Clients assets grew with 4% over the period 2016 - 2019, by continued rebalancing towards a higher in EUR billion FY 2019 FY 2016 FY 2019 2016 Energy 0.7 1.2 -37% share of retail, resulting in a faster de-risking of the balance sheet Shipping 1.0 1.5 -33% Financial sponsors & Leveraged Finance 1.0 1.7 -38% ▪ Decreased exposure in the cyclical sectors Shipping, Commercial Real Estate 1.6 1.0 51% Energy and Leveraged Finance by EUR 1.7 billion Fintech & Structured finance 1.3 0.7 48% 19.1bn 45% ▪ Growth in more granular exposures in Fintech & Infrastructure 1.7 1.7 -1% 55% Structured Finance Mid Market Corporates 1.5 1.4 7% Total corporate loans (drawn & ▪ New businesses focused on higher margins like undrawn) 8.9 9.2 -4% Beequip (4.94%) and Buy-to-Let (3.45%) Beequip and other lease receivables 0.5 0.2 > 100% ▪ Strong growth of the Originate-to-manage offering Investment loans 0.2 0.2 -13% Retail bank of EUR 4.6 billion 2019 Equity investments 0.3 0.3 16% Corporate bank Investment property - 0.3 - Total corporate client assets 9.9 10.2 -3% Owner-occupied mortgage loans 9.1 8.5 5% Buy to Let mortgages 0.7 0.4 77% Total retail client assets 9.8 8.8 11% 50% 19.7bn 50% OTM Retail client assets 4.3 0.0 OTM Corporate client assets 0.8 0.4 65% Originate-to-manage assets 5.1 0.5 > 100% 6 COMPOSITION OF NIBC’S TOTAL ASSETS Result of continued rebalancing

NIBC’S TOTAL ASSETS CORPORATE LOANS COMMENTS ▪ 2% Diversified portfolio: of NIBC’s total assets 2% of EUR 22.4bn at year-end 2019: 1% 5% 4% 5% • 9% is in ‘liquid means’ (governments & central bank) 32% • 45% in residential mortgage loans 3% 5% ▪ Decreased exposure in the cyclical sectors Shipping, Energy and Leveraged Finance by 4% EUR 1.7 billion in the past three years

45% 9% 6% 5% 3%

Corporate loans Governments & central bank Commercial Real Estate Energy Other financial institutions Residential mortgage loans Financial Sponsors & Leveraged Finance Fintech & Structured Finance Equity investments Lease Receivables Infrastructure Mid Market Corporates Derivatives Other Shipping

7 STARTING POINT FOR NIBC AT YEAR 2019 NIBC’s buffers heading into the COVID-19 outbreak

FINANCIAL POSITION AT YEAR END 2019 PRIORITIES AND IMPACT COVID 19 ON BUSINESS

▪ CET 1 ratio of 17.7%, including full effects of the IMI and full year profit ▪ Measures have been implemented to further operational resilience, 2019 post (proposed) dividends including: ▪ Liquidity buffer of EUR 3.7 billion and liquidity ratios at levels of 222% • Safeguarding the wellbeing of our employees with immediate and full (LCR) and 121% (NSFR) remote working for nearly (>95%) all staff. Technology investments ▪ Average tenor on wholesale funding of 6.6 years (up from 6.3) and a made in previous years are paying off with no critical interruptions modest amount maturing in the remainder of 2020 and 2021: mainly a observed to date EUR 350m FRN in July 2020 and TLTRO II. • Monitoring of liquidity and unused credit lines, in close contact with ▪ 9% of NIBC’s total balance sheet of EUR 22.4bn in liquid means clients. Increased frequency of meetings of certain risk committees (governments & central bank) and 45% in residential mortgages such as the ALCO and the Transaction Committee ▪ Decreased exposure in the cyclical sectors Shipping, Energy and Leveraged ▪ The COVID-19 outbreak is expected to impact 2020 financial performance Finance by EUR 1.7 billion in the past three years but at this stage it is too early to quantify the magnitude and duration of ▪ The core of NIBC’s revenues comprises of relatively stable net interest such impact, also in combination with the continuously developing income (~80% of total revenues) response of policy makers

8 OUR RESPONSE TO COVID-19 First priority to safeguard health of our staff and families and to ensure business continuity

Our People Our Business Our Clients

▪ Almost all staff working from home since 18 ▪ Since beginning of March, Business Continuity ▪ Prudently extending credit to businesses of all March 2020 with full remote working Plan (BCP) in place, headed by CFO/CRO with (bi)- sizes for working capital and general corporate environment allowed by IT Infrastructure and daily update calls purposes tooling ▪ Alternative funding plans being considered in line ▪ Client relief such as 90-day grace period for ▪ Skeleton staff at office locations to ensure with liquidity management mortgage payments continuity – taken special measures into account ▪ Active monitoring of the development of our ▪ Increased monitoring of portfolios on a name-by- ▪ Intensified communication to all staff with regular retail savings name basis, offering tailor-made solutions for Corona news releases, weekly video updates by ▪ Regular to daily contact with various regulators existing clients where necessary an ExCo member and Dutch Banking Association ▪ New client origination on corporate client side ▪ Early payment of the annual € 600 euro per ▪ Cost deep-dive to reduce monthly run-rate, virtually on hold; focus on portfolio management, employee to spend on work facilities at home including stopping of marketing campaigns, also using the tools of our partner Oaknorth ▪ Daily updates to management on (possible) reductions of external staff, reprioritising (large) infected staff projects

9 SUSTAINABILITY EMBEDDED IN OUR STRATEGY The way we do business

IT BEGINS WITH US INTEGRATED BUSINESS APPROACH STRONG SUSTAINABILITY RATINGS

▪ 100% renewable electricity ▪ Embedded in NIBC’s business strategy ISS OEKOM across all locations & the way we do business ▪ Significant reduction in use of ▪ Robust sustainability policy C+ / Prime gas for heating and cooling framework ▪ 25% of employees commute by ▪ Integrated risk management SUSTAINALYTICS bicycle ▪ Comprehensive reporting 22

OWN OPERATIONS COMMUNITY ENGAGEMENT MSCI ▪ 6 NGO’s operating from NIBC’s headquarters ▪ Focus on SCR activities which directly BBB benefit our communities Carbon Neutral in Head office 100% ▪ Sustainability challenges in the NIBC REPRISK own operations Co2-neutral Talent Program ▪ High engagement among employees AA

10 CORPORATE CLIENT OFFERING Progressing well with rebalancing strategy

CORPORATE LOAN ORIGINATION REBALANCING THE PORTFOLIO FACTS AND FIGURES

SELECTIVE ORIGINATION GROWTH IN CHOSEN SECTORS NET PROMOTOR SCORE (NPS) OFFSET BY REDUCTIONS 3.0bn 9.9bn 47%

▪ Selective origination focused on further de- ▪ Growth in chosen sectors like Structured risking / rebalancing of the portfolio Finance and Digital Infrastructure C+ ▪ Nearly 40% of origination was in Fintech and ▪ Growth in Leasing including Beequip (+19%) /PRIME Structured Finance and in (Digital) Infrastructure ▪ Reduced exposures in Energy, Shipping and ▪ Less than 16% of origination was in Energy, Leveraged Finance by over EUR 750m in 2019 Shipping and Leveraged Finance ▪ Continued focus of margin over volume ▪ The origination of Beequip amounted to EUR 22 275 million (2018: 244 million)

11 RETAIL CLIENT OFFERING Strong mortgage origination

MORTGAGE LOAN ORIGINATION GROWTH CLIENTS

STRONG ORIGINATION MARKET SHARE ▪ Number of clients +6% since FY 2018 ▪ Total number of clients 113k

▪ Number of clients +3% since FY 2018 3.7bn 4.1% ▪ Total number of clients 310k

MORTGAGE LOAN PORTFOLIO LOW RISK PORTFOLIO FACTS AND FIGURES In EUR bn 14.1 ▪ On-balance portfolio growth of EUR 520 million

11.6 ▪ Strong growth OTM portfolio by 79% from NIBC DIRECT 4.3 EUR 2.4 billion to EUR 4.3 billion CUSTOMER SURVEY 9.5 2.4 7.9 0.7 ▪ SCORE SAVINGS 0.7 0.6 Secured new mandates in OTM, totaling OTM 0.6 mandates to EUR 6.5 billion per 31 December 8.2 8.6 9.1 ▪ Total OTM clients increased to almost 21.000 NIBC DIRECT 2017 2018 2019 CUSTOMER SURVEY ▪ Reinvigorated growth in Buy-to-let portfolio 8.0 Owner-occupied Buy-to-let Originate-to-manage SCORE MORTGAGES

12 INCOME STATEMENT Steady performance in FY 2019

INCOME STATEMENT PROFIT AFTER TAX AND RETURN ON EQUITY COMMENTS

IFRS 9 IFRS 9 IFRS 9 IFRS 9 ▪ Profitability was strong in 2019, with a profit after non-rec. non-rec. tax attributable to shareholders of EUR 194 million 2019 2019 2018 2018 13.6% ▪ Excluding non-recurring items, net profit increased Net interest income 426 426 427 427 11.9% 11.8% Net fee and commission by 16% from EUR 173 million to EUR 201 million 40 40 51 51 income 11.4% 10.8% Investment income 60 60 74 37 ▪ Return on equity of 11.4% (2018: 13.6%) is 9.0% Other income 10 10 -1 -1 impacted by to the higher equity base at 1 January Operating income 537 537 551 513 213 217 2019 by EUR 106 million Personnel expenses 119 112 117 111 201 -7 44 ▪ Excluding non-recurring items return on equity 53 194 Other operating expenses 97 96 102 99 increased from 10.8% to 11.8% in 2019 Depreciation and amortisation 6 6 5 5 Regulatory charges 15 15 15 15 ▪ Net interest income excluding the IFRS 9 impact of Operating expenses 237 228 239 230 EUR 34 million in 2019 (2018: approximately EUR 50 Net operating income 300 309 312 284 160 173 million) increased by 4%, mainly reflecting improved Credit loss expense / (recovery) 49 49 54 54 funding expenses Tax 45 47 29 45 ▪ Profit after tax 206 213 229 185 Operating expenses decreased slightly by 1% in Profit attributable to non- 2019. In 2018 operating expenses were impacted by 12 12 12 12 2017 2018 2019 controlling shareholders the IPO related costs of EUR 8 million. In 2019 IT Profit after tax attributable to Non-recurring deficit Non-recurring profit 194 201 217 173 transition, project costs and reorganization of shareholders of the company Profit after tax excl. non recurring Markets (EUR 9 million) were included Return on equity Return on equity ex. non-recurring

13 PORTFOLIO VOLUMES AND SPREADS Continued successful rebalancing of the portfolios at healthy spreads

CORPORATE LOAN SPREADS & VOLUMES RETAIL ASSET SPREADS & VOLUMES COMMENTS

3.52% 3.45% ▪ Corporate client assets: 4.82% 4.84% 4.94% 3.28% — Corporate client assets for our own book 2.53% 2.36% 2.30% remained stable to EUR 9.9 bn, reflecting the 2.99% 3.06% 2.70% ongoing rebalancing of our portfolios: 2.08% • The cyclical leveraged finance, shipping and 2.79% 2.77% 1.88% 2.52% 1.53% energy portfolios decreased by EUR 0.8 bn 2017 2018 2019 2017 2018 2019 • The more granular receivables finance and Portfolio spread Origination spread Beequip Portfolio spread Origination spread BtL lease portfolios increased by EUR 0.4 bn Origination spread owner-occupied • The average portfolio spread decreased to 2.70%, mainly driven by a further decrease 9.9 9.9 9.8 9.8 of the average origination spread to 2.52%, 8.8 9.3 0.3 0.7 reflecting the rebalancing of the portfolios 0.3 0.2 0.2 0.6 0.2 0.2 0.6 0.3 0.4 0.5 • Beequip portfolio grew from EUR 0.4 billion to EUR 0.5 billion with portfolio spread of around 5% 8.2 8.6 9.1 9.0 9.0 8.9 ▪ Retail client assets: 4.3 0.9 0.8 0.5 2.4 — The own book portfolio of mortgage loans 0.7 increased in 2019 by 6% to EUR 9.8 billion 2017 2018 2019 2017 2018 2019 — The average portfolio spread decreased to Corporate loans Lease receivables Investment loans Owned Occupied Buy-to-Let Originate-to-Manage 2.30%, even though origination spreads Originate-to-Manage Equity investments improved 14 Note: 2017 figures include Vijlma. Spreads reflect spreads above the 3 month euribor base rate OPERATING EXPENSES Fully loaded cost/income ratio absorbing regulatory expenses

EVOLUTION OF OPERATING EXPENSES COST/INCOME RATIO COMMENTS ▪ Operating expenses decreased slightly by 1% in 2019, mainly driven by the following: — 2018 expenses include expenses related to the 239 233 237 IPO (EUR 8 million) 9 9 4 — 2019 expenses related to the completion of several milestones in our IT re-transition 48% program are lower than in 2018 — Furthermore continuous investments were 45% made in 2019 in regulatory projects, (e.g. 44% 43% project Care, KYC BTL, remediation IMI) and in 229 230 228 42% 42% our new ventures — Finally, higher personnel expenses stem from structural changes (higher FTEs, mainly because of the expansion of Beequip) and conjunctural (one-off provision for severance payments linked to discontinuation of market activities)

2017 2018 2019 2017 2018 2019 ▪ Total costs related to the license to operate are estimated between EUR 27 - 32 million on an annual Non-recurring expenses Operating expenses Cost/income ratio Cost/income ratio ex. non-recurring basis ▪ IT costs on an annual basis are in a range of EUR 40 to 45 million, including various projects and the outsourcing to Cegeka 15 CREDIT LOSS EXPENSE Credit loss expense in 2019 improved slightly

DEVELOPMENT OF CREDIT LOSS EXPENSE KEY FIGURES ASSET QUALITY COMMENTS AND COST OF RISK 2019 2018 2017 ▪ Credit loss expense in 2019 at EUR 49 million, 9% 0.73% below the 2018 figure of EUR 54 million 0.62% 0.63% Impairment coverage ratio 33% 30% 40% ▪ The overall development displays the improving average credit quality of the corporate loan portfolio 0.50% Non-performing loan ratio 2.4% 2.8% 2.8% and strong performance of the mortgage portfolio, which displayed a credit loss release in 2019 of EUR Top-20 exposures / Common 0.33% 0.29% Equity Tier 1 93%1 77% 66% 4 million 2 5 ▪ Some challenges remain in certain portfolios, 3 Exposure corporate arrears > 90 days 1.2% 2.7% 1.7% especially with respect to Leveraged Finance and Energy Exposure residential mortgage ▪ 2019 displayed a strong improvement of the credit loans arrears > 90 days 0.1% 0.2% 0.5% 56 54 49 quality of NIBC’s portfolios, which is further LtV Dutch residential mortgage reflected in the development of the various asset loans 68% 72% 75% quality ratios displayed in the graphs to the left ▪ The decreased cost of risk from 0.73% to 0.63% is LtV BTL mortgage loans 52% 52% 57% driven by both a lower level of credit loss expense 2017 2018 2019 as well as higher level of RWAs from the 30% IMI Credit loss expense Other credit losses regulatory add-on Cost of risk Impairment ratio ▪ Excluding the well collateralised short term debt financing commitment to Reggeborgh top-20 exposures / CET 1 ratio would be 78%

1) includes a commitment related to NIBC supporting Reggeborgh in the envisaged public offer for VolkerWessels. NIBC acted as a financial advisor to the shareholders of Reggeborgh and provided the debt financing in which Reggeborgh has the ability to draw down debt for an amount of EUR 200 million (EUR 75 million drawn as per 31 December 2019). Cost of risk = credit loss expense divided by average RWAs 16 Impairment ratio = credit loss expense divided by average assets loans & mortgages FUNDING PROFILE DOMINATED BY LONG MATURITIES Redemptions in 2020 and 2021 mainly related to TLTRO II

FUNDING COMPOSITION COMMENTS

▪ Funding profile, benefits from: • 9% A diversified funding composition 17% Shareholders equity • The weighted average tenor of our wholesale funding, which increased from Retail funding 6.3 years to 6.6 years in 2019 8% • 2019 Secured (wholesale) funding Stable liquidity ratios at levels of 222% (LCR) and 121% (NSFR) and a liquidity buffer of EUR 3.7 billion 43% ESF deposits ▪ Maturing wholesale funding: 23% Unsecured (wholesale) funding • Funding transactions of EUR 1.5 billion maturing in 2020 include TLTRO of EUR 0.7 billion and a short-term floating rate note of EUR 0.35 billion • Funding transactions of EUR 0.7 billion maturing in 2021 include TLTRO of MATURING FUNDING AS OF 1/1/2020 EUR 0.5 billion • TLTRO repayments can be ‘rolled-over’ through the issuance of new TLTRO In EUR billion 2020 2021 2022 2023 2024 transactions Covered bonds - - 0.5 - -

Other secured funding 0.8 0.5 0.1 0.3 - Senior unsecured 0.7 0.2 0.5 0.9 0.3 Subordinated - - - - - Total: 1.5 0.7 1.1 1.2 0.3 17 Financials for NIBC Holding as at 31 December 2019 CAPITAL POSITION Buffer above minimum requirements

CAPITAL RATIOS COMPARED TO REQUIREMENTS EXCL. P2G COMMENTS

CET 1 Own Funds ▪ After the AGM the CET 1 ratio of 17.1% increases to 17.7% including H2 2019 net profit post proposed FY 2019 profit distribution 17.7% 21.1% ▪ A buffer above NIBC’s minimum capital requirements to weather the current COVID 19 challenging market conditions ▪ Our CET 1 capital displays: 14.0% • At year-end 2019, approximately EUR 325m capital in excess of our 14% CET1 10.5% medium term objective 2.5% 11.4% • A management buffer of 7.2% (approximately EUR 630m) above the SREP 8.0% 2.5% requirement level of 10.5% 3.3% 3.3% 1.5% • An even higher management buffer above SREP post temporary ECB 3.3% 1.9% measures of March 2020 and the application of these measures by DNB to Dutch LSIs 8.0% 8.0% 4.5% 4.5% ▪ As previously announced on 31 March 2020, NIBC has decided to maintain the proposal to declare the dividend for the financial year 2019 but to pay out such dividend in the second half of 2020 and only if in the opinion of the Management Minimum SREP CET 1 EOY 2019 Indicated min Minimum SREP Own Funds EOY Indicated min requirement level following requirement 2019 level following and Supervisory Boards of NIBC at such time, payment is feasible and appropriate CET 1 temp ECB/DNB Own Funds temp ECB/DNB in light of the impact of COVID-19 on the business. COVID-19 COVID-19 measures measures

Pilar 1 P2R Own Funds alignment 18 Financials for NIBC Holding as at 31 December 2019 CCB CCyB DIVIDEND Building also a curve in dividend payout, in line with our dividend policy

DIVIDEND EARNINGS PER SHARE AND DIVIDEND COMMENTS PER SHARE ▪ NIBC’s dividend policy is unchanged: 58% 59% 1.46 1.48 Building a sound dividend curve with a pay-out of at 1.33 least 50% taking into account regulatory guidance 50%

45% 126 0.86 114 0.78 0.71 37 0.25

25% 78 0.53

96 89 0.66 0.61

36 0.25 25 0.17

2016 2017 2018 2019 2016 2017 2018 2019

Final dividend declared but not yet paid (€m) dividend per share declared but not yet paid (€) Interim dividend paid (€m) dividend per share paid (€) Second (special) interim dividend (€m) Second (special) interim dividend per share (€) Dividend (€m) Dividend per share (€) Pay-out ratio Annualised earnings per share (€) 19 Pay-out ratio ex. second (special) interim dividend MEDIUM TERM OBJECTIVES Concluding remarks heading into the COVID-19 outbreak

MEDIUM-TERM METRICS OBJECTIVES FY 2019 PRESS RELEASES SINCE COVID-19

▪ NIBC announced on 31 March 2020 the suspension of final Return on Equity 10 - 12% 11.4% dividend payments over 2019 until such payment, in the opinion (Holding) of the Management and Supervisory Boards of NIBC at such time, is feasible and appropriate in light of the impact of COVID-19 Cost-to-income < 45% 44% (Holding) ▪ On 17 April 2020, NIBC announced that while we expect the COVID-19 outbreak to impact our 2020 financial performance negatively, NIBC is at this stage, unable to quantify the magnitude CET 1 ≥ 14% 17.1% (Holding) and duration of such impact ▪ Although NIBC has not issued guidance or targets specifically for 2020, NIBC foresees in the current circumstances that it will not Dividend pay-out ≥ 50% 59% (Holding) achieve its previously formulated medium term objective of 10- 12% for Return on Equity (ROE) over 2020 ▪ NIBC’s ambitions towards its medium-term objectives remain Rating1 BBB+ BBB+ Stable Outlook unchanged once market conditions normalise (Bank)

Note: Financials for NIBC Holding as of FY 2019, unless otherwise stated 20 1: On 1 April 2020 Fitch placed NIBC on rating watch negative and on 23 April 2020 S&P changed its outlook on NIBC to negative, from stable COVID-19 Overview of selected policy measures for banks

The Coronavirus (COVID-19) is having a significant impact on the global MEASURES WITH RESPECT TO CAPITAL economy. Governments and other policy makers have taken serious ▪ Implementation start date Basel IV delayed from 2022 to 2023 measures to support the economy. This slide provides a high level ▪ Accelerated application (initially on 1/1/2021) of P2 requirements being able overview of the measures taken by ECB/SSM/EBA/DNB/Basel to be partially met by capital instruments that do not qualify as CET 1 capital, Committee towards the banking sector albeit that at least 56.25% must comprise of CET 1, 18.75% of AT1 and 25% of Tier 2 instruments In general banks are temporarily allowed to operate at lower levels of capital and liquidity than normal ▪ 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 MEASURES WITH RESPECT TO FUNDING AND LIQUIDITY floor on the AIRB risk weighting for Dutch mortgage loans ▪ In addition to the Asset Purchase Programme (APP) ECB announced in March ▪ Flexibility in prudential treatment of exposures backed by public support 2020 the EUR 750bn ‘Pandemic Emergency Purchase Programme’ (PEPP) measures and/or subject to eligible moratoria ▪ Relaxation of TLTRO III conditions and implementation of additional LTROs. The ▪ Recommendation urging banks not to pay out any dividends until 1 October TLTRO III operation between June 2020 and June 2021 offers 3-year funding at a 2020. SSM informally confirmed there is currently no plan to suspend rate of -0.75% if banks maintain current lending levels to euro area non- additional Tier 1 or Tier 2 payments financial corporates and households (excluding loans for house purchases) MEASURES ON OPERATIONAL RELIEF ▪ Banks may temporarily operate below the required 100% level of the liquidity ▪ In general adjustment of prudential timetables, processes and deadlines coverage ratio (LCR) ▪ DNB will - on a case-by-case basis - offer temporary relaxation to LSIs of asset The measures support banks to focus on co-operating with its clients encumbrance limits to weather the challenging market conditions due to COVID-19

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

22 DUTCH HOUSING AND MORTGAGE MARKET

DUTCH HOUSING AND MORTGAGE MARKET ECONOMIC GROWTH AND UNEMPLOYMENT IN THE NETHERLANDS2

▪ The Netherlands contains 7.8 million dwellings, of which 4.4 million are owner 8 occupied 6 ▪ Confidence in the housing market is at a level of 104 in January 2020, having reached its low in December 2012 at 51 and a peak in November 2016 at 1211 4 ▪ The Dutch housing market remains tight, as a result of a structural housing 2

shortage and lagging supply of new development (%) Percentage 0 ▪ Proven resilience during the credit crisis 2013 2014 2015 2016 2017 2018 2019 ✓ Flexible labour market and strong social services safety net -2 ✓ High payment morale, supported by central credit registration system (BKR) and GDP growth year-over-year Unemployment rate efficient legal system AVERAGE MORTGAGE RATE3 AND HOUSE PRICE INDEX4 HOUSE SALES DEVELOPMENT4

140 8 300

130 250 6 200 120 4 150

110

Percentage (%) Percentage Thousands

Index (2015 = 100) = (2015 Index 2 100 100 50 90 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 - 2013 2014 2015 2016 2017 2018 2019 Average mortgage rate (RHS) House price index (LHS) Rolling 12-month housing sales

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 23 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 EVOLUTION OF DUTCH MORTGAGE LENDING STANDARDS

• New mortgages need to be fully amortizing for tax benefits • Interest deductibility • Interest deductibility 51.0% 50.0% • Code of conduct • Changes to interest • NHG max EUR 245k • NHG max EUR 245k enforced deductibility • Interest deductibility • • • NHG max EUR 350k • NHG max EUR 290k; Max LTV 103% Max LTV 101% 49.0% only amortizing loans • NHG max EUR 290k eligible • Max LTV 105%

2020- 2011 2012 2013 2014 2015 2016 2017 2018 2019 2023

• Interest deductibility 2020 46.0% • NHG max EUR 320k • Interest deductibility • European Mortgage • Interest deductibility • NHG max in 2020 EUR 310k • Max LTV 106% 51.5% Credit Directive active 49.5% • NHG max EUR 265k • Interest deductibility • NHG max EUR 265k • Tax deductibility to decrease further by • Max LTV 104% 50.5% • Max LTV 100% 3% per annum to • NHG max EUR 245k 37.05% in 2023 • Max LTV 102%

24 RETAIL CLIENT OFFERING AND ASSET QUALITY

25 RETAIL CLIENT OFFERING

INTRODUCTION GEOGRAPHIES

▪ Strong franchise across the Netherlands, Germany and Belgium with more than 9.1 EUR billion 400,000 clients Owner occupied mortgage loans ▪ Mortgages are sold through partnerships with intermediaries, where NIBC sets all 4.6 EUR billion Savings underwriting criteria ▪ Multi-track approach: mortgages for our own balance sheet as well as for multiple 1.0 EUR billion Savings originate-to-manage mandates from institutional investors

▪ Non-value adding activities are outsourced (mid- and back-office services) to 3.9 EUR billion specialized mortgage servicing companies, such as Stater and Quion Savings ▪ Arrears and foreclosure management performed in-house at NIBC Figures for Full Year 2019

SAVINGS BALANCE NIBC DIRECT (EUR BLN) RETAIL CLIENT OFFERING ASSETS (EUR BLN)

9.3 8.9 9.5 14.1 1.0 1.0 0.9 11.6 4.3 3.9 4.4 4.1 9.8 2.4 0.7 0.7 0.3 0.6 0.6 4.6 9.1 3.9 3.9 8.2 8.6

2017 2018 2019 2017 2018 2019

Netherlands Germany Belgium Owner occupied Buy-to-let Fair value adjustment mortgages Originate-to-manage

26 RETAIL CLIENT OFFERING

MORTGAGE LOANS

▪ Total mortgage origination reached EUR 3.7bn in 2019, resulting in a market share of 4.1% ▪ Our on-balance portfolio grew by nearly 6% to EUR 9.8bn1 and the OTM portfolios grew EUR 1.9bn, an increase of 79% ▪ OTM mandates increased to EUR 6.5bn; the total OTM portfolio reached EUR 4.3bn at the end of 2019 ▪ fee generating initiative leading to income diversification ▪ strengthening our client franchise, as it enables NIBC to be active across maturities and sub-segments ▪ Reinvigorated growth in buy-to-let portfolio: up EUR 100m to EUR 0.7bn at the end of 2019 ▪ The mortgage loan portfolio displays a solid performance with negative credit loss expenses (recovery) of EUR 4 million in 2019

ORIGINATION (EUR BLN) RETAIL ASSET SPREADS

3.4 3.7 3.52% 3.45% 3.28%

2.0 1.9 1.8 2.53% 2.36% 2.30% 0.7

1.6 1.7 2.08% 1.2 1.88% 1.53% 2017 2018 2019 2017 2018 2019 Own book Originate to manage Portfolio spread Origination spread BTL Origination spread owner occupied

1: Includes EUR 0.7bn buy-to-let mortgages 27 DUTCH MORTGAGE LOANS

ARREARS >90DAYS INDEXED LOAN-TO-MARKET VALUE Weighted-average LTIMV: 68% ( 2019)

0.5% 29%

24%

21%

18%

17%

16%

15% 15%

0.2% 14%

12%

10%

10% 10%

9% 8%

0.1% 8%

2% 1%

2017 2018 2019 NHG <50% 50-60% 60-70% 70-80% 80-90% 90-100% >100%

2017 2018 2019

28 CONDITIONAL PASS-THROUGH COVERED BOND PROGRAMME

29 COVERED BOND PROGRAMME

SUMMARY OF THE COVERED BOND PROGRAMME KEY BENEFITS Robust Structure NIBC set up a robust Covered Issuer: NIBC Bank N.V. ✓ Hard obligation for NIBC to redeem the bond at Bond Programme, benefitting Double recourse: expected maturity (no optionality) from a conditional pass- Guarantor: Bankruptcy remote Covered Bond Company (CBC) through structure ✓ Recourse on CBC in case of NIBC default Ratings: AAA/AAA (S&P/Fitch)

1 ✓ LCR eligible (bucket: L1) and favourable regulatory Collateral: Prime Dutch residential mortgage loans Regulatory: treatment Documented minimum 15% OC: ✓ De-linkage from issuer rating: a downgrade of the Derivatives: None Stable Ratings: issuer rating does not directly affect the covered bond ratings Asset monitor: EY

REGULATORY Index: ✓ iBoxx eligible Law based, registered with the Dutch Central Format: Bank ✓ No swap counterparties ✓ Back-up administrator Regulated status: UCITS and CRD compliant Robust Structure: ✓ External account banks ✓ External sub-services Label: ECBC Covered Bond Label ✓ Live cash flows

1: Owner-occupied residential mortgages only; buy-to-let mortgages are not eligible collateral for the cover pool 30 COVERED BOND PROGRAMME: CONDITIONAL PASS-THROUGH STRUCTURE

TRANSACTION STRUCTURE WHAT HAPPENS IF THE CONDITIONAL PASS-THROUGH MECHANISM IS TRIGGERED?

▪ NIBC as issuer has a hard obligation (no option) to repay the covered bonds at ▪ Cash-flows received by the CBC are used to pay down the relevant outstanding scheduled maturity date covered bonds ▪ Conditional pass-through structure addresses refinancing risk and ensures an ▪ The CBC attempts to sell a randomly selected part of the cover pool every 6 orderly wind-down of the Cover Pool in case of issuer default, avoiding the risk months. The sale is only carried out when the proceeds are sufficient to redeem of a fire sale the relevant bonds at par ▪ If the pass-through mechanism is triggered, the respective series become pass- ▪ The Amortisation Test is not allowed to deteriorate through covered bonds

CONDITIONAL PASS-THROUGH EXPECTED INCREASE OF OC IN PASS- COMPARISON COVERED BOND MECHANICS THROUGH SCENARIO (PER 6 MONTHS)1 STRUCTURES

50% Issuer Event of No Bullet Hard Bullet 45% Default Maturity Covered Bonds 40%

Yes 35% 30% 25% Amortisation Pass Bullet Soft Bullet Extension Test Maturity 20% Covered Bonds Period 15% Insufficient Fail funds at 10% maturity 5% All CB’s Relevant CB 0% CPT Covered Extension Period converted to converted to Bonds Pass-Through Pass-Through

1: Assuming all bonds in pass-through mode, 5% CPR and no losses 31 COVERED BOND PROGRAMME: TRANSACTION STRUCTURE

In a covered bond structure Sub-servicers payments to investors on the bonds are guaranteed by the Principal CBC. For this guarantee a NIBC Investors pool of Dutch prime Issuer Interest + Principal residential mortgages is segregated in the CBC NIBC Servicer Cover Pool Guarantee Monthly cash flows from the borrowers are transferred to the CBC without first touching NIBC’s balance NIBC CBC Collection Foundation Security Trustee sheet Principal & Mortgage Guarantor Pledge of Receivables Interest Principal & Mortgage Interest

Borrowers

32 APPENDIX I MORTGAGE BUSINESS AT NIBC

33 MORTGAGE BUSINESS AT NIBC BANK

NIBC BANK’S MORTGAGE BUSINESS

▪ 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

IN-HOUSE PERFORMANCE OF CORE ACTIVITIES OUTSOURCING OF STANDARDISED ACTIVITIES

▪ Origination: ▪ Origination is done via dedicated independent intermediaries ▪ NIBC Bank sets the underwriting criteria ▪ The underwriting criteria are highly standardized and hard coded in the ▪ Deviations from underwriting criteria can only be made when accepted by systems of the servicers NIBC Bank ▪ Intermediaries can only originate mortgages that meet the underwriting ▪ Servicing: criteria ▪ The arrears management is performed in-house to ensure tailor-made ▪ Standard servicing activities are outsourced to specialized mortgage servicers solutions to optimize recoveries STATER and Quion: ▪ Payments ▪ Administration ▪ First contact point for clients 34 MORTGAGE BUSINESS AT NIBC BANK

BASIC PRINCIPLES ARREARS MANAGEMENT

▪ 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.

NIBC Early NIBC Special Servicing

Arrears of max 2 months All clients in arrears with life events1 or arrears > 2 months

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

1: Life events: divorce, deceased, unemployment (because of incapacity) 35 APPENDIX II MAIN UNDERWRITING CRITERIA

36 MAIN UNDERWRITING CRITERIA

LAWS AND REGULATIONS AFFORDABILITY

▪ NIBC complies with: ▪ Steady income: Income is derived from the salary slip and proof of employment ▪ “Wet op het Financieel Toezicht” (WFT). Dutch Law or a so-called determination of income from paid employment ▪ Code of Conduct of Dutch Bankers Association (2013). The code concerns e.g. (‘Inkomensbepaling Loondienst’) executed by the intermediary based on data minimum requirements to the borrower. from the Employee Insurance Agency (‘UWV’). In case of self-employed ▪ Temporary Rule of Mortgages. These guidelines concerns regulations to borrowers, a statement of income is drawn up by a certified calculation agent. income and maximum loans and are yearly set by the government. ▪ Comply or Explain: a predetermined test is available (comply), but allows ▪ GDPR (General Data Protection Regulation). European Law, NIBC and Stater deviation if well-justified by the lender (explain). NIBC Direct origination only are compliant to the requirements of the GDPR as applicable per May the 25th concerns Comply. 2018. ▪ Actual interest rate: is taken into account unless the fixed rate term is under the 10 years. In case of shorter terms a pre-determined rate is used (Q4 2019 5%) 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).

37 MAIN UNDERWRITING CRITERIA

LOAN AND COLLATERAL CREDIT HISTORY AND FRAUD

▪ Maximum loan amount: EUR 1.000.000. Loans above EUR 750.000 are treated as ▪ Bureau for Credit Registration (BKR): Credit history is checked at BKR, ‘negative’ an overrule. BKR-registrations which are allowed by NHG can be done without overrules. All ▪ Maximum loan-to-Value: 100% and in case of energy saving facilities (EBV) 106%. the other ‘negative’ BKR registrations must be handed to the overrule desk. The ▪ NHG hurdle: EUR 310.000,- excl. EBV or EUR 328.600 incl. EBV BKR registration must be cured. Specific criteria and surcharges are used by the ▪ Non-NHG mortgages with loans above 80% of the Market Value are required to be overrule desk. covered by a mortality insurance. ▪ Stichting Fraudebestrijding Hypotheken (SFH): Fraud is checked at SFH which is ▪ The mortgage loan is secured by a first ranking mortgage right or a first and located at the BKR office and coordinated by the Dutch Banking Association. sequentially higher ranking mortgage right(s) over real estate, an apartment right ▪ A check is performed to verify the borrower’s identity. or a long lease (“erfpacht”) situated in the Netherlands. ▪ Kadaster (National Property Register): Additionally, a Kadaster check is ▪ The property value is determined by a recent valuation report (<6 months old) performed to prevent illegitimate use of property. from a certified appraiser. On top of that every valuation report is automatically ▪ Fraud Officer: NIBC has dedicated fraud officers, handling fraud cases and validated by checking comparable transactions by an independent organisation prevention. (NWWI, TVI (Taxatie Validatie Instituut) or Taxateurs Unie).

38 APPENDIX III ASSET COVER TEST

39 ASSET COVER TEST

Covered Bond Asset Cover Tests Minimum Cover Pool Outstanding Bonds Test Outcome Higher of Asset Cover Test

LTV Cut-off + other haircuts EUR 3.3bn1 110%1 1 x

Asset Percentage: 2 EUR 3.2bn x EUR 3.5bn EUR 3.0bn 95%

3 Minimum OC: EUR 3.5bn 15% 1 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.

2 Following their analysis the rating agencies communicate a minimum asset percentage. The amount of bonds relative to the amount of assets cannot exceed this percentage.

3 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%.

1: This amount differs every month based on the characteristics of the mortgages in the portfolio. In January 2020 the cover ratio was 111.63%. 40 APPENDIX IV CONDITIONAL PASS-THROUGH SCENARIOS

41 CONDITIONAL PASS-THROUGH SCENARIOS

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:

1: The bank redeems the 2: The bonds are 3: If part of the cover pool 4: If in addition, the pool bond at scheduled redeemed at maturity with cannot be sold to redeem deteriorates and the maturity cash and sale of part of the the bonds at par, all bonds Amortisation test is pool. Principal test holds to accelerate and the pool has breached, all bonds protect later maturing to be sold, which may accelerate and the pool has bonds result in a loss on the to be sold, which may bonds result in a loss on the bonds Bond I Bond I Bond I Bond I

Bond II Bond II Bond II Bond II

outstanding

outstanding outstanding outstanding time time time time

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:

1: The bank redeems the 2: The bonds are 3: Pass-through is triggered 4: If in addition, the pool bond at scheduled redeemed at maturity with at maturity if proceeds deteriorates and the maturity cash and sale of part of the from sale of part of the Amortisation test is pool. Amortisation test pool are not sufficient to breached, all bonds holds to protect later redeem the bond in full become pass-through maturing bonds bonds

Bond I Bond I Bond I Bond I

Bond II Bond II Bond II Bond II

outstanding

outstanding outstanding outstanding time time time time

42 APPENDIX V INVESTOR REPORTING AND LEGAL FRAMEWORK

43 COVERED BOND PROGRAMME: INVESTOR REPORTING

INVESTOR REPORTING FOR COVERED BONDS

▪ 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 [email protected] ▪ Investor reports always timely available, including full performance information, portfolio split and bond information

44 DUTCH LEGAL FRAMEWORK AND DACB

DUTCH LEGAL FRAMEWORK FOR COVERED BONDS

▪ 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 ▪ Post issuer default plan must be in place ▪ 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

DUTCH ASSOCIATION OF COVERED BOND ISSUERS

▪ 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

45 Notes to the 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.

Forward-looking Statements

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.