Investor Presentation August/September 2009
Operating Costs and Efficiency
Highlights
■ The cost to income ratio declined by 2.0% from 34.9% in Q1 2009 to
32.9% in H1 2009
■ The core cost to income ratio increased from 33.7% for Q1 2009 to
34.6% in H1 2009
■ The Group has continued to invest in technology, infrastructure and
governance whilst optimising its variable cost base on existing
businesses
■ Emirates NBD continues to expand its branch network and business
capability in Abu Dhabi and is investing in Private Banking and SME
businesses
■ Emirates NBD is continuing to target a mid-30s core business cost to
income ratio for FY 2009
Income vs. Cost Growth (AED million)
4,769
+10%
1,751
5,222
+3%
Cost to Income Ratio Trends
Cost:income ratio
Core cost:income ratio
39.7
38.2
39.0 38.9
37.9
38.3
37.4
37.6
34.9
38.3
34.6
35.7
36.7
35.4 34.6 33.7
32.9
2007
2008
2009
Q1 H1
Q3 FY Q1
Q3 FY Q1 H1
Note: Cost to income ratios are presented on a year-to-date basis; Core cost to income ratio
excludes impact of MTM on investments and other securities in 2008 and 2009
H1
1,751
1,807
H1 2008
H1 2009
Note: Income is presented excluding MTM/Impairments on Investments/CDS
H1 2008
Emirates NBD
Operating Cost Drivers (AED million)
32
32
(79)
36
32
35
1,807
Existing
Business
New Technology Premises
Goverance
H1 2009
Business
& Control
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