Slide 1: Q1 2011 Results Presentation
Emirates NBD Q1 2011 Results Presentation April 26, 2011 1
Slide 2: Important Information
Important Information Disclaimer The material in this presentation is general background information about Emirates NBD's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to
Slide 3: Q1 2011 Financial Results Highlights
Q1 2011 Financial Results Highlights Q1 2011 Financial Results Highlights Key Performance Indicators Net profit of AED 1.4 billion, +27% vs. Q1 AED million Q1 2011 Q1 2010 Change Q4 2010 Change 2010 and +251% vs. Q4 2010 (%) (%) Gain on Network International transaction of Net interest income 1,
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) NIM of 2.41% at Q1 2011 declined by 18 bps 3.01 from 2.59% in Q1 2010: Qtrly NIM 2.85 o Negative mix impact of deployment of 2.76 2.65 increased liquidity in lower yielding 2.60 2.59 2.57 2.51 interbank and cash-equivalent assets 2.41 2.41 o P
Slide 5: Non Interest Income
Non Interest Income Highlights Composition of Non Interest Income (AED million) Non-interest income declined by 26% y-o-y AED million Q1 2011 Q1 2010 Change Q4 2010 Change and 5% q-o-q due to: (%) (%) o lower investment securities income given Core gross fee income 665 593 +12% 534 +25% impact on
Slide 6: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) Costs declined by 6% (AED 54 million) from Cost to income ratio (YTD) Q1 2010 to AED 808 million principally due to deconsolidation of Network International in Q1 38.5 37.6 37.4 2011 35.8 35.7 34.9 Costs increased by 7% (AED 50 m
Slide 7: Credit Quality
Credit Quality Highlights Impaired Loans & Coverage Ratios (%) The impaired loans ratio increased in line 101% 95% 102% 105% 102% 98% 109% with expectations by 0.4% in Q1 2011 to 10.4% 48% Portfolio impairment allowances increased 40% 45% by AED 628 million in Q1 2011, substantially to cover fut
Slide 8: Capital Adequacy
Capital Adequacy Highlights Capital Ratios - Basel II (AED billion) Capital adequacy remained stable at very 20.1% 20.1% 18.7% strong levels of CAR 20.1% and T1 12.7% 11.9% 12.8% 12.7% Total capital increased by AED 0.4 billion in 10.5% Q1 2011 as net profit generation partly offset by 41.8 43.6
Slide 9: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit Ratios (%) Liquidity continued to improve with headline Headline LTD Ratio % LTD ratio of 92% at Q1 2011 Adjusted LTD Ratio % 129% Target headline LTD ratio of 95%-100% for 2011 126% 127% 122% 117% 119% 118% 118% Liquid assets of AED 66.2 billio
Slide 10: Associates and Joint Ventures
Associates and Joint Ventures Composition of Balances Highlights Composition of Associates & Joint Ventures (AED million) Additional impairment on investment in Union Income Statement Q1 2011 Q1 2010 Change Q4 2010 Change Properties (UP) of AED 426 million AED million (%) (%) Further downside ri
Slide 11: Associates and Joint Ventures: Network International
Associates and Joint Ventures Network International Strategic Partnership with Abraaj Capital Highlights Financial Impact On 22 December 2010, Network International In 2010, the assets and liabilities were disclosed as assets held for sale (NI) entered into a strategic partnership with In Q1 2
Slide 12: Divisional Performance: Wholesale Banking and Consumer Banking & Wealth Management
Divisional Performance AED billion AED million Key focus during the period was on balance sheet -7% optimisation, continued proactive management of credit Wholesale Banking 171.2 quality, building non-risk based and fee generating 161.1 160.6 1,107 1,068 1,024 businesses Revenue declined 7% year
Slide 13: Divisional Performance: Global Markets & Treasury, Emirates Islamic Bank
Divisional Performance Revenue declined by 47% in Q1 2011 to AED 148 million AED million driven mainly by lower sales and trading income and lower Global Markets & Treasury gains on principal investments 277 -47% Trading business revenue was impacted by the regional geopolitical tensions, financ
Slide 14: Strategic Imperatives for 2011
Strategic Imperatives for 2011 Objectives Optimise Increase lending activities in identified pockets of growth, e.g. SME lending, cards, … Balance Sheet Further diversifying funding sources with a focus on reducing cost of funding and Capital Review all Group companies (subsidiaries and associ
Slide 15: Outlook
Outlook Conditions in the local economy have continued to improve in Q1 2011: o Economic signals offer evidence of take-off in non-oil economy, particularly in trade, logistics and hospitality o Oil prices hold strong above USD 100 per barrel Regional unrest temporarily took a toll on local mark
Slide 16: Summary
Summary Strong financial performance driven by gain on the Network International transaction, partly offset by continued pro-active de-risking of the balance sheet and acceleration of investment in growth opportunities Top-line trends encouraging with pickup in q-o-q net interest income, stable marg
Slide 17: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com Ben Franz-Marwick Head, Investor Relations Tel: +971 4 201 2604 Email: bernhardf@emiratesnbd.com 20