UAE Economic and FY 2012 Financial Results Update
Operating costs and Efficiency
Emirates NBD
Highlights
•
Costs increased by AED 161 million or +5% y-o-y to AED 3,669
million in FY 2012 resulting from:
-
Increase of AED 229 million Dubai Bank related costs including
AED 49 million of integration costs incurred in Q4 2012.
AED 59 million increase in other costs mainly service and legal
fees, computer costs and marketing expenses
Offset by AED 78 million decrease in staff costs, AED 38 million
decrease in occupancy costs and AED 11 million decrease in
depreciation charges
Excluding Dubai Bank costs dropped 2% y-o-y
The Cost to Income ratio for FY 2012 stood at 35.9%
The Cost to Income ratio will be managed to the longer term target
range of c.34%-35%
Cost to Income Ratio Trends
38.5
37.637.4
35.8
34.9
33.7
32.7. 32.9
32.2
32.2
30.7
31.4
CI Ratio (YTD)
35.9
35.7
35.335.135.435.2
33.8 33.4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12
Operating Cost Trends (AED million)
3,508
(78)
229
(38)
59
(11)
3,669
FY 11 Staff Cost Occupancy Depreciation Other Cost Dubai Bank FY 12
cost
Operating Cost Components (AED million)
+4%
3,508
3,656
3,053
0
93
322
-2%
2,197
1,878
2,119
275
265
227
232
285
275
669
667
714
FY 10
FY 11
FY 12
Dubai Bank
Staff Cost
Occupancy cost
Depreciation
Other Cost
20
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