Credit Quality Overview
Credit Quality
Emirates NBD
Highlights
Impaired Loan & Coverage Ratios (%)
NPL ratio improved by 0.9% q-o-q to 12.6%
92.0
80.1
85.4
76.1
70.3
Net impaired loans decreased by AED 1.4 Bn in Q3 helped by
repayments and recoveries
59.8
66.2
60.7
64.7
57.5
49.4
43.4
• Q3-14 YTD net impairment charge of AED 3.8 Bn driven by
additional net specific Corporate and Islamic loan provisions
Coverage ratio increased by 5.6% in Q3 to 70.3%
At current rate of provisioning we will reach our 100% coverage
target (excluding Dubai World) in early 2015
13.8
14.3
13.9
13.8
13.5
12.6
4.3
4.0
3.6
3.5
3.5
3.1
9.5
10.3
10.3
10.2
10.0
9.5
Q4 11
Q4 12
Q4 13
Q1 14
Q2 14
Q3 14
Impact of DW* %
NPL ratio, excl. DW*
Coverage ratio, excl. DW* %
Coverage ratio, incl. DW*%
Impaired Loans and Impairment Allowances (AED Bn)
Impaired Loans
Impairment Allowances
20.8
21.9
23.1
24.2 +5%
16.6
0.5-
0.4-
0.4
0.4
12.9/0.6-0.6
12.8
13.6
14.5
15.2
7.0 1.4
3.6/0.2 3.8/0.2
9.9 2.1
3.4
3.9
3.9
3.8/0.2
0.1
3.8
4.2
0.1
3.9
4.5/0.1
Q4 13
Q1 14
Q2 14
Q3 14
33.6
36.1
36.0
35.8
-4%
29.7
34.4
9.4
9.4
9.3
9.1
9.2
8.5
13.6 2.9
15.1
16.2
16.2
3.8
13.7
16.2
3.6/0.3
13.7
13.8
15.8
0.4
4.9
6.5
0.2
6.6
0.2
6.4
0.2
3.8
6.10.2
Q4 11
Q4 12
Q4 13
Q1 14
Q2 14
Q3 14
Q4 11
Q4 12
DW*
Core Corporate
Retail
Islamic
*DW = exposure AED 8.54 Bn; provision AED 390 Mn
Other Debt Securities
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