Capital Adequacy and Divisional Performance
Capital Adequacy
Highlights
Capital adequacy ratio at 21.9% in Q1 2010 vs. 20.8% in Q4 2009
■ Tier 1 ratio increased from 13.3% in Q1 2009 to 13.9% in Q1 2010 as
profit generation for the period exceeded interest paid on T1 securities
and other expenses
■ Tier 2 capital increased to USD 4.3b vs. 4.1b in Q4 2009 mainly due to
the recognition of an additional USD 105m MOF deposits as LT2
capital and positive Cumulative Changes in FV of USD 163m
■ Risk Weighted Assets (RWAs) were managed down by 1% from end-
2009 level
Capital Ratios - Basel I (USD billion)
☐
T1
T2 T1 %
□ CAR %
☐
21.9%
☐
20.8%
16.2%
19.9%
19.0%
13.1%
13.3%
13.9%
12.7%
11.4%
12.1%
9.7%
11.3
11.9
10.5%
10.9
11.4
9.4%
9.4
3.9
4.1
4.1
4.3
6.2
6.7
3.8
1.2
1.2
4.9
5.6
5.6
6.9
7.2
7.3
7.5
2007
2008
Q1 09
Q2 09
Q3 09
Q4 09
Q1 10
Note: Core Tier 1 ratio was 11.9% at Q1 2010 compared to 11.3% at Q4 2009
Basel II
Capital Movement Schedule - Basel I
Basel II RWAS (USD billion)
Basel II Capital Ratios (%)
Q4 2009 to Q1 2010 (USD million)
Tier 1
Tier 2
Total
Capital as at 31.12.09
7,258
4,134
11,392
65.7
19.6%
18.7%
Net profits generated
324
324
2.9
61.0
60.7
Recognition of MOF deposits as T2 capital
105
105
1.4
3.6
3.7
10.3%
Interest on T1 securities.
(18)
(18)
61.4
0.9
11.9%
12.4%
0.7
Cumulative changes in FV
163
163
56.5
56.3
8.4%
Redemption of T2 securities
(96)
(96)
Other
(15)
5
(10)
2008
2009
1Q 2010
2008
2009
1Q 2010
Capital as at 31.03.2010
7,549
4,311
11,860
Operational Risk
Market Risk
■Credit Risk
-T1 %
--CAR %
USD billion
Q1 10
Q4 09
Diff %
Risk Weighted Assets
54.2
54.8
-1%
Emirates NBD
20
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