Strategic Imperatives and Financial Overview
Income
Q4 2010 NIM of 2.41%; -10bps from 2.51% in Q3 2010:
Net Interest Margin Trends (%)
3.01
Negative mix impact of declining loan balances and rising customer
deposits with deployment of increased liquidity in lower yielding
assets
■ 2010 NIM of 2.52%; -29bps from 2.81% in 2009:
-
Negative mix impact of declining loan balances and rising customer
deposits with deployment of increased liquidity in lower yielding
assets
Increased deposit funding costs
Partly offset by increased loan spreads due re-pricing of loans
Qtrly NIM
2.85
2.76
2.65
2.60
2.59
2.54
2.51
2.41
2.21
2.01
2.05
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10
Note: Net interest margin is calculated based on Average Interest Earning Assets (AIEA)
■ Core gross non-interest income increased by AED 44m or 1% from
2009:
Non-interest Income Trends (AED million)
Movement in Core Gross Non-Interest Income (AED million)
+23
-28
+20
+84
-54
-
12% growth in acquiring income
-
2% growth in fee income, despite lower origination volumes
3% growth in forex and rates income
-
5% decline in trade finance income
-
27% drop in brokerage and asset management fees
3,333
3,377
2009
Fee Income Acquiring
business
Forex &
Rates
Trade
finance
Brokerage &
AM fees
2010
Note: Core gross non-interest income excludes the impact of Investment Properties, Investment/CDS income and 'Other' income
Emirates NBD
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