Emirates NBD Bank (P.J.S.C) · DFM:EMIRATESNBD

Emirates NBD Bank (P.J.S.C) — Emirates NBD — Q3 2010 Earnings Presentation

15 slides from Emirates NBD Bank (P.J.S.C)'s earnings presentation, Oct 25, 2010

  1. Slide 1: Emirates NBD Q3 2010 Results Presentation

    Emirates NBD Q3 2010 Results Presentation October 25, 2010 1

  2. 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

  3. Slide 3: Financial Highlights

    Financial Highlights  Total income for Q3 2010 YTD of AED 7.5 billion; -10% from Q3 2009 YTD  Net interest income -6% to AED 5.2 billion in Q3 2010 YTD given NIM impact of improved funding profile  Core non-interest income trends showing positive momentum quarter-on-quarter  Q3 2010 YTD operatin

  4. Slide 4: Q3 2010 Financial Results

    Q3 2010 Financial Results Q3 2010 YTD Financial Results Highlights Key Performance Indicators  Total income of AED 7,459m; -10% from AED8,298m in Q3 2009 YTD Q3 Q3 Change Q3 Q3 Change AED million 2010 2009 (%) 2010 2009 (%)  Income includes a write-down of investment properties of AED 161m YTD YTD

  5. Slide 5: Income

    Income Net Interest Margin Trends (%)  Q3 2010 NIM of 2.51%; -3bps from 2.54% in Q2 2010: 3.01 – Negative mix impact of declining loan balances Qtrly NIM 2.85 2.76 – Partly offset by increased deposit spreads due to easing competition 2.65 2.60 2.59 2.54 2.51 for deposits 2.21 2.01 2.05 Q1 08 Q2 08

  6. Slide 6: Operating Costs and Efficiency

    Operating Costs and Efficiency Highlights Cost to Income Ratio Trends(1)  The headline cost to income ratio improved by 2.6% from 33.5% in Cost:income ratio 2009 to 30.9% in Q3 2010 YTD Core cost:income ratio  The core cost to income ratio improved by 3.4% from 35.5% in 38.3 37.6 35.3 37.1 2009 to

  7. Slide 7: Credit Quality

    Credit Quality Loans & Receivables and Islamic Financing Highlights Loan Portfolio by Type – Q3 2010(1)  The Bank continues to pro-actively manage credit quality 100% = AED 210.0b  NPL ratio, excluding impaired investment securities, increased to 3.66% in Q3 2010 from 2.90% in Q2 2010 and 2.30% in

  8. Slide 8: Capital Adequacy

    Capital Adequacy Highlights Capital Ratios - Basel II (AED billion)  Capital adequacy ratio at 20.1% in Q3 2010 vs. 18.7% in Q4 2009 19.6% 19.4% 20.1% 18.7%  Tier 1 ratio increased from 11.9% in Q4 2009 to 12.8% in Q3 2010 as 11.9% 12.4% 12.4% 12.8% 10.5% profit generation for the period exceeded

  9. Slide 9: Funding and Liquidity

    Funding and Liquidity Highlights Loan to Deposit Ratios (%)  Liquidity continues to improve and deposit mobilisation initiatives Headline LTD Ratio % proved successful; headline LTD ratio 101% at end-Q3 2010 Adjusted LTD Ratio % 129%  Continue to access stable interbank lines and source bilateral

  10. Slide 10: Divisional Performance

    Divisional Performance AED billion AED million  Corporate Banking recorded a positive year to date -5% 172.4 3,525  Key focus during the period was on balance sheet optimisation, 164.4 3,332 Corporate Banking continued proactive management of credit quality, building non-risk based and fee generat

  11. Slide 11: Divisional Performance (cont'd)

    Divisional Performance (cont’d) AED million  Revenues in Q3 2010 YTD were AED 490m compared with AED 655m in Q3 2009 YTD, the decline being primarily due to Global Markets & -25% contraction in the spreads generated from interbank funding and 655 Treasury the mix impact of increased net liquid asse

  12. Slide 12: Strategic Imperatives for 2010

    Strategic Imperatives for 2010 Objectives Evidence of success in Q3 2010  Prudent lending growth  CAR strengthened to 20.1% from 18.7% at end-  Focus on funding 2009 – Leverage distribution network  Tier 1 increased to 12.8% from 11.9% at end- 2009 Optimise – Maintain & develop wholesale sources

  13. Slide 13: Outlook

    Outlook  While economic activity remained relatively subdued in Q3 2010 due to seasonal factors, the satisfactory agreement on Dubai World restructuring has improved sentiment and confidence and core economic sectors in Dubai continue to show signs of recovery  Dubai remains well-positioned:  Due

  14. Slide 14: Summary

    Summary  Robust financial performance with steady core income compared with Q2 2010 and Q1 2010  Cost rationalisation initiatives proving successful evidenced by reductions in absolute levels of expenses and in the cost to income ratio  Significantly improved liquidity metrics and strong capital

  15. 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@

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