Strategic Imperatives and Financial Overview slide image

Strategic Imperatives and Financial Overview

2010 Financial Results ■ ◉ 2010 Financial Results Highlights Total income of AED 9,721m; -10% from AED 10,794m in 2009 Income includes write-downs of investment properties of AED 214m Improvement of 14% in operating expenses from 2009 to AED 3,053m in 2010; Cost to income ratio improved by 1.5% to 31.4% Operating profit before impairment allowances of AED 6,668m; -8% from AED 7,243m in 2009 Impairment allowances of AED 3,190m; 4% lower than AED 3,319m in 2009 Union Properties investment reduced by AED 1.0b in 2010 through recognition of share of losses and impairment Net profit of AED 2,339m; -30% from AED 3,343 in 2009 Capital ratios remain strong; CAR 20.1% and T1 12.8% at end 2010 ■ Deposits grew by 10% from end-2009 levels while loans declined 8%, improving the loan to deposit ratio to 99% from 118% at end-2009 " ■ Q4 2010 Financial Results Highlights Total income of AED 2,262m; -9% from AED2,496m in Q4 2009; -13% from AED 2,589m in Q3 2010 Improvement of 13% in operating expenses from Q4 2009 to AED 758m in Q4 2010; 4% higher costs compared with AED 726m in Q3 2010 Operating profit before impairment allowances of AED 1,504m; -7% from AED 1,620m in Q4 2009; -19% from AED 1,863m in Q3 2010 Impairment allowances of AED 201m; 79% improvement from AED 945m in Q4 2009 and 84% improvement from AED 1,241m in Q3 2009 Net profit of AED 403m; +126% from AED 178m in Q4 2009; -6% from AED 424m in Q3 2010 1) Investment properties income includes rental income and realised /unrealised gains/(losses) on investment properties 2) Investments/CDS income includes dividend income and realised /unrealised gains/(losses) on investment, trading and CDS securities Emirates NBD Key Performance Indicators Change Q4 Q4 Change AED million 2010 2009 (%) 2010 2009 (%) Net interest income 6,795 7,412 -8% 1,620 1,924 -16% Fee & other income 2,583 2,773 -7% 578 679 -15% Investment properties(1) (188) (42) +346% (45) (56) -19% Investment/CDS Income (2) 531 651 -18% 109 (51) -315% Total income 9,721 10,794 -10% 2,262 2,496 -9% Operating expenses (3,053) (3,551) -14% (758) (876) -13% Operating profit before impairment allowances 6,668 7,243 -8% 1,504 1,620 -7% Impairment allowances: (3,190) (3,319) -4% (201) (945) -79% Credit (2,930) (2,971) -1% (96) (863) -89% Investment securities (260) (348) -25% (105) (82) +28% Operating profit 3,478 3,924 -11% 1,303 675 +93% Amortisation of intangibles (94) (94) 0% (23) (24) 0% Associates (1,024) (477) +114% (869) (475) +83% Share of profits (664) (161) +311% (509) (159) +220% Investment impairment (360) (316) +14% (360) (316) +14% Taxation charge (21) (10) +115% (8) 2 n/a Net profit 2,339 3,343 -30% 403 178 +126% Cost: income ratio (%) 31.4% 32.9% -1.5% 33.5% 35.1% -1.6% Net interest margin (%) 2.52% 2.81% -0.29% 2.41% 2.85% -0.44% EPS (AED) 0.37 0.58 -35% 0.06 0.02 +186% ROE (%) 10.3% 16.2% -5.9% 6.9% 3.2% -3.7% 31 Dec 31 Dec Change AED billion 2010 2009 (%) Total assets 286.2 281.6 +2% Loans 197.1 214.6 -8% Deposits 200.0 181.2 +10% Capital Adequacy Ratio (%) 20.1% 18.7% +1.4% Tier 1 Ratio (%) 12.8% 11.9% +0.9% 13
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