Strategic Imperatives and Financial Overview
Operating Costs and Efficiency
Highlights
■ The cost to income ratio improved by 1.5% from 32.9% in 2009 to
31.4% in 2010
Operating costs declined by 14% to AED 3,053 million in 2010:
-
11% improvement in staff costs driven primarily by post-integration
rationalisation
4% improvement in occupancy, equipment and operations costs due
to ongoing efficiency improvements in IT and Operations
- 22% improvement in advertising, marketing and communications
-
costs mainly due to new branding costs incurred in 2009
51% improvement in other costs due to stringent control over
discretionary cost and excess accrual reversals in 2010
Operating Cost Components (AED million)
100% = AED 3,053 million
Advertising,
marketing &
communication
Other costs
6%
Cost to Income Ratio Trends
Cost to income ratio (YTD)
38.5
37.6
37.4
35.8
34.9
33.7
32.9
32.7
32.2
32.2
31.4
30.8
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10
Operating Cost Trends (AED million)
5%
Occupancy,
equipment &
operations
25%
Staff costs
64%
Emirates NBD
3,551
-232
-33
-48
-185
3,053
2009
Staff costs
Occupancy,
equipment &
Advertising,
marketing &
Other costs
2010
operations
communication
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