Credit Quality and Financial Performance
Financial Highlights
2010 and Q1 2011
2010 Financial Results Highlights
◉
Net profit of USD 637 million; -30% from USD 910 million in 2009
◉
◉
"
Total income of USD 2,647 million; -10% from USD 2,939 million in 2009
Improvement of 14% in operating expenses from 2009 to USD 831 million in 2010;
Cost to income ratio improved by 1.5% to 31.4%
Operating profit before impairment allowances of USD 1,816 million; -8% from USD
1,972 million in 2009
Impairment allowances of USD 869 million; 4% lower than USD 904million in 2009
Union Properties investment reduced by c. USD 280 million in 2010 through
recognition of share of losses and impairment
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
Q1 2011 Financial Results Highlights
Net profit of USD 385 million, +27% vs. Q1 2010 and +251% vs. Q4 2010
Gain on Network International transaction of USD 500 million
Continued de-risking of balance sheet:
O
о
Further reduction in book value of investment in Union Properties of USD 136
million
Increased Portfolio Impairment Allowances by USD 171 million, substantially
to cover future contingencies
Margin decline evident during 2010 arrested with NIM stable at 2.41% vs. Q4 2010;
growth in assets driving 2% growth in net interest income from Q4 2010
Non-interest income declined by 26% y-o-y and 5% q-o-q due to lower investment
securities income and deconsolidation of Network International; core fee income
grew 7% and 19% respectively
Costs declined by 6% from Q1 2010; increased by 7% from Q4 2010 due to
investment in future growth
Signs of pickup in new underwriting
■ Strong 6% deposit growth despite downward re-pricing during Q1 2011
Emirates NBD
Key Performance Indicators
Income Statement
USD million
Q1 2011 Q1 2010 | Change
(%)
2010
2009
Change
(%)
Net interest income
449
471
-5%
Fee & other income
167
225
-26%
Total income
615
696
-12%
1,850 2,018
797
921 -13%
2,647 2,939 -10%
-8%
Operating expenses
Operating profit before
impairment allowances
(220)
(235)
-6%
(831) (967) -14%
395
461
-14%
1,816
1,972
-8%
Impairment allowances:
(373)
Credit
(363)
(151) +147%
(141) +157%
(869) (904) -4%
(798)
(809)
-1%
Investment securities
(10)
(10)
0%
(71)
(95)
-25%
Operating profit
23
310
-93%
947
1,068
-11%
Amortisation of intangibles
(6)
(6)
(26)
(26)
Associates
(130)
(0)
n/a
(279)
(130)
+114%
Gain on subsidiaries
500
n/a
n/a
Taxation charge
(1)
(1)
+16%
(6)
(3)
+115%
Net profit
385
302
+27%
637
910
-30%
Cost to income ratio (%)
Net interest margin (%)
EPS (USD)
ROE (%)
35.7% 33.7% +2.0% 31.4% 32.9%
2.41% 2.59% -0.18% 2.52% 2.81%
0.07
0.05 +29% 0.10 0.16 -35%
23.7% 19.6% +4.1% 10.3% 16.2% -5.9%
-1.5%
-0.29%
Balance Sheet
31 Mar
31 Dec
Change
31 Dec
31 Dec Change
USD billion
2011
2010
(%)
2010
2009
(%)
Total assets
81.8
77.9
+5%
77.9
76.7
+2%
Loans
52.9
53.7
-1%
53.7
58.4
-8%
Deposits
57.7
54.5
+6%
54.5
49.3
+10%
Capital Adequacy Ratio (%)
20.1%
20.1%
Tier 1 Ratio (%)
12.7% 12.8% -0.1%
20.1% 18.7% +1.4%
12.8%
11.9% +0.9%
13View entire presentation