Slide 1: Emirates NBD Q1 2012 Results Presentation
Emirates NBD Q1 2012 Results Presentation April 25, 2012 1 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 2012 Financial Results Highlights
Q1 2012 Financial Results Highlights Highlights Key Performance Indicators Net profit of AED 641 million, +322% vs. Q4 AED million Q1 2012 Q1 2011 Change Q4 2011 Change 2011 and -55% vs. Q1 2011 (%) (%) Net interest income down 8% q-o-q and Net interest income 1,777 1,648 +8% 1,929 -8% grew by 8
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) NIM of 2.63% for Q1 2012 declined by 22 bps from 2.85% in Q4 2011 resulting in an 8% q-o-q drop in net interest income to AED 1,777 million; NIM reduction driven by: – lower loan spreads resulting from re-pricing to lower EIBOR rates – lower d
Slide 5: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit Ratios (%) Headline LTD ratio of 98% at Q1 2012 due to balance sheet optimisation initiatives The LTD ratio is being managed to the target range of c.95%-100% Liquid assets (excl. Investments) of AED 52 billion as at 31 March 2012 (18% of total
Slide 6: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED billion) -4%* +4%* Signs of pickup in new underwriting from H2 2011: 221 218 218 216 211 209 209 9 +1% – Annualised decline in gross loans of 4% from 173 174 167 205 204 204 8 Q4 2009 to Q2 2011 166 168 – Annualised organic growt
Slide 7: Non Interest Income
Non Interest Income Highlights Composition of Non Interest Income (AED million) Non-interest income improved by 62% q-o-q AED million Q1 2012 Q1 2011 Change Q4 2011 Change and 49% y-o-y; impacted by non-core items: (%) (%) – AED 248 million loss on properties in Q4 Core gross fee income 753 628 +2
Slide 8: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) Costs improved by AED 83 million or 8% q- o-q to AED 942 million in Q1 2012 resulting from: – AED 14 million cost reduction in Dubai Bank – AED 26 million lower depreciation charge – AED 17 million reduction in occupancy costs – AE
Slide 9: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • Q1 2012 impairment charge of AED 1,101 million driven by: – Specific provisions of AED 671 million, AED 105 million and AED 69 million made in relation to the Corporate, Retail and Islamic financing portfolios respectively – AED 234 mil
Slide 10: Capital Adequacy
Capital Adequacy Highlights Capital Ratios - Basel II (AED billion) CAR declined 1.4% q-o-q to 19.1% and T1 declined 0.5% q-o-q to 12.5% resulting from a reduction in capital: – Tier 1 capital decreased by AED 0.5 billion in Q1 2012 due to net profit generation for the quarter being more than offs
Slide 11: Divisional Performance: Wholesale and Consumer Banking
Divisional Performance Balance Sheet Trends Revenue Trends AED billion AED million Key focus during Q1 2012 was on strategy re-alignment to Wholesale Banking ensure enhanced future customer service quality and share +1% +9% of wallet, increased cross-sell of Treasury and Investment 159.1 162.0 163
Slide 12: Divisional Performance: Global Markets & Treasury, Emirates Islamic Bank
Divisional Performance Revenue Trends Global Markets & Treasury AED million Revenue improved 27% q-o-q and 67% y-o-y to AED 247 million in Q1 2012 aided by higher investment income relative to previous quarters and a pick-up in foreign +67% 247 exchange and treasury sales business +27% 195 Treas
Slide 13: Outlook
Outlook The UAE economy proved relatively resilient to global and regional developments in 2011, with estimated GDP growth of 4.6% for the year on the back of higher oil production and improving trends in non-oil trade and tourism During Q1 2012 the UAE economy continued to display resiliency an
Slide 14: Summary
Summary Strong operating performance with 19% q-o-q and 20% y-o-y growth in pre-impairment operating profit to AED 1.7 billion Top-line trends continue to improve with 8% q-o-q and 19% y-o-y growth in total income Operating expenses improved 8% q-o-q and are being managed to a 33%-34% cost income ra
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 Shagorika Cairae Senior Analyst, Investor Relations Tel: +971 4 201 2620 Email: