Credit Quality and Financial Performance
Credit Quality
Loans & Receivables and Islamic Financing
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Highlights
The impaired loans ratio increased in line with expectations by 0.4% in
Q1 2011 to 10.4%
Full required provision for Dubai World made in Q3 2010; pro-actively
provided for a portion of Dubai Holdings exposure in Q4 2010
80% of Saad and Al Gosaibi exposure provided at end-2010.
Portfolio impairment allowances increased by USD 171 million in Q1
2011, substantially to cover future contingencies
Total Portfolio Allowances of USD 768 million or 1.8% of credit Risk
Weighted Assets
Fully compliant with CB provisioning circular
Provision coverage of impaired loans improved to 45% from 40% at the end
of 2010
Loan Portfolio by Type – Q1 2011(1)
100% = USD 55.7b
Retail
12%
Sovereign
27%
Islamic
9%
Corporate
52%
Impaired Loans & Coverage Ratios(2)
Impaired Loans & Impairment Allowance Composition (USD million)
101%
102% 105% 102%
95%
98%
109%
Impaired Loans Composition
Impairment Allowance Composition
■Investment Securities
Investment Securities
48%
45%
40%
■Retail
Islamic
Corporate
5,599
5,795
■Retail
Islamic
Corporate
2,626
10.0%
10.4%
2,266
16/
Other PIP
4,127
4,206
8.1%
1,619
1,148
1,021
1,588
487
902
896
147
224
249
1.6%
1.8%
2.1% 2.4%
2.9%
2.6%
3.1%
456
452
533
186
225
126
803
731
922
955
949
989
355
215
98
101
Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
Impaired Loans Ratio %
Q1 10 Q2 10
Q3 10 Q4 10
Coverage ratio %
267
Q1 11
183
72
73
2008
2009
2010
Q1 11
2008
2009
2010
Q1 11
1) Loans and advances before provisions
2) Impaired Loans ratio is calculated on gross loans & receivables
Emirates NBD
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