Slide 1: Emirates NBD 1Q 2010 Results Presentation
Emirates NBD 1Q 2010 Results Presentation April 26, 2010 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: Financial Highlights
Financial Highlights Total income held steady at AED 2.6 billion from Q1 2009 and Q4 2009 Q1 2010 operating costs down 5% to AED 866 million from Q1 2009 Cost to income ratio of 33.9% vs. 34.9% in Q1 2009 and 36.9% in Q4 2009 Impairment allowances of AED 555 million vs. AED 462 million in Q1
Slide 4: Q1 2010 Financial Results
Q1 2010 Financial Results Q1 2010 Financial Results Highlights Key Performance Indicators Operating profit before impairment allowances of AED 1,690m; -1% from AED AED million Q1 Q1 Change Q4 Change 2010 2009 (%) 2009 (%) 1,701m in Q1 2009; +4% from AED1,622m in Q4 2009 Net interest income 1,729 1
Slide 5: Income
Income Net Interest Margin Trends (%) Q1 2010 NIM of 2.58%; -27bps from 2.85% in Q4 2009: 3.01 – Loan spreads declined due to rising Eibor rates and mix impact of Qtrly NIM (AIEA) 2.85 2.76 declining retail loan balances 2.65 2.60 2.58 – Continued pressure on liability spreads given shortage of me
Slide 6: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio Trends(1) The headline cost to income ratio rose by 0.6% from 33.3% in 2009 to Cost:income ratio 33.9% in 1Q 2010 Core cost:income ratio The core cost to income ratio rose by 1.6% from 35.1% in 2009 to 36.7% in 1Q 2010 Operating co
Slide 7: Asset Quality
Asset Quality Loans & Receivables and Islamic Financing Highlights Loan Portfolio by Type – Q1 2010(1) Credit quality remains satisfactory across the Bank’s corporate and 100% = AED 218.7b retail portfolios Increase in delinquencies and NPLs is within expectations Retail NPL ratio, excluding i
Slide 8: Capital Adequacy
Capital Adequacy Highlights Capital Ratios - Basel I (AED billion) 19.0% 20.8% 21.9% Capital adequacy ratio at 21.9% in Q1 2010 vs. 20.8% in Q4 2009 16.2% 19.9% 13.1% Tier 1 ratio increased from 13.3% in Q1 2009 to 13.9% in Q1 2010 as 11.4% profit generation for the period exceeded interest paid
Slide 9: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit Ratios (%) Liquidity in the UAE banking system improved in 2009 primarily due to Headline LTD Ratio % 129% initiatives taken by the UAE Ministry of Finance and UAE Central Bank Adjusted LTD Ratio % 126% 127% 122% Funding remains stable and deposit
Slide 10: Divisional Performance
Divisional Performance AED billion AED million Corporate Banking recorded a successful quarter 172.4 170.5 1,107 Corporate Banking +16% Key focus during the period was on balance sheet optimisation, continued proactive management of credit quality, building non-risk based and fee generating busi
Slide 11: Divisional Performance (cont'd)
Divisional Performance (cont’d) AED million Revenues in Q1 2010 were AED 277m compared with AED Global Markets & 638 -57% 638m in Q1 2009, the decline being primarily due to contraction Treasury in the spreads generated from interbank funding in Q1 2010 compared to Q1 2009 277 The Trading busine
Slide 12: Strategic Imperatives for 2010
Strategic Imperatives for 2010 Objectives Evidence of success in Q1 2010 Prudent lending growth CAR strengthened to 21.9% from 20.8% at Focus on funding end-2009 – Leverage distribution network Tier 1 increased to 13.9% from 13.3% at end-2009 Optimise – Maintain & develop wholesale sources o
Slide 13: Outlook
Outlook Highlights Real GDP Growth Forecasts UAE GDP is expected to recover modestly to c.2.5% in 2010 and 2008 2009 2010 2011 c.4.5% in 2011 UAE 7.4% 0.0% 2.5% 4.5% UK 0.7% (4.5%) 0.5% 2.0% Lower inflation, stable US$ and property market declines have enhanced Dubai’s cost-competitiveness Euroz
Slide 14: Summary
Summary Robust financial performance with steady income and strong operating profit generation Significantly improved liquidity metrics and strong capital ratios due to success of balance sheet optimisation initiatives and continued proactive support from federal and local Government Credit qu
Slide 15: 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 Chaden Boustany Investor Relations Analyst Tel: +971 4 201 2628 Email: ChadenB@