Emirates NBD Operating Costs and Efficiency Highlights
Financial Highlights
2010 and Q3 2011 YTD
Key Performance Indicators
Income Statement
Q3 2011
Q3 2010
Change
2010
2009
Change
AED million
YTD
YTD
(%)
(%)
Net interest income
5,329
5,175
+3%
6,795
7,412
-8%
Fee & other income
2,110
2,285
-8%
2,926
3,382
-13%
Total income
7,439
7,460
-0%
9,721
10,794
-10%
Operating expenses
Operating profit before
impairment allowances
Impairment allowances:
(2,483)
(2,291)
+8%
(3,051)
(3,551)
-14%
4,956
5,168
-4%
6,670
7,243
-8%
Credit
(3,802)
(3,921) (2,989) +31% (3,190)
(2,834)
(3,319)
-4%
+34% (2,930)
(2,971)
-1%
Investment securities
(120)
(155)
-23% (260)
(348)
-25%
1,035
2,179
-53%
3,480
3,924
-11%
Amortisation of intangibles
Associates
(70)
(70)
+0%
(94)
(94)
+0%
(426)
(156)
+174% (1,024)
(477)
+115%
Gain on subsidiaries
1,813
n/a
n/a
Taxation charge
(19)
(16)
+17%
(23)
(10)
+130%
Net profit
2,332
1,937
+20%
2,339
3,343
-30%
Cost to income ratio (%)
33.4%
30.7%
+3%
31.4%
32.9%
-2%
Net interest margin (%)
2.63%
2.56%
+0%
2.52%
2.81%
-0%
EPS (AED)
0.38
0.31
+23%
0.37
0.58
-36%
ROE (%)
12.9%
11.3%
+2%
10.3%
16.2%
-6%
ROA (%)
1.1%
0.9%
+0%
0.8%
1.2%
-0%
Balance Sheet
30-Sep-11 31-Dec-10
Change
(%)
Change
31-Dec-10 31-Dec-09
(%)
Total assets
271.9
286.2
-5%
286.2
281.6
+2%
Loans
196.4
196.4
+0%
197.1
214.6
-8%
Deposits
183.6
200.0
-8%
200.0
181.2
+10%
Capital Adequacy Ratio (%)
21.1%
20.1%
+1%
20.1%
18.7%
+1%
Tier 1 Ratio (%)
13.4%
12.8%
+1%
12.8%
11.9%
+1%
Q3 2011 YTD Financial Results Highlights
Net profit of AED 2,332 million in Q3 2011 YTD, +20% vs. Q3 2010 YTD
Gain on Network International transaction of AED 1.8 billion
Continued balance sheet de-risking:
-
increased Portfolio Impairment Allowances of AED 1.5 billion, substantially to
cover future contingencies
further reduction in book value of investment in Union Properties of AED 500
million
Increased conservatism on provisioning
Net interest income grew 3% compared to the same period last year to AED
5,329 million due to net interest margin improvement to 2.63% in Q3 2011 YTD from
2.56% in Q3 2010 YTD
Non-interest income decreased by 8% compared to the same period last year due to
lower investment securities income and the deconsolidation of Network International;
core fee income grew 3% compared to the same period last year.
Costs increased by 8% compared to the same period last year to AED 2,483
million in Q3 2011 YTD resulting from accelerated investment in future growth;
cost to income ratio rose by 3% to 33.4% compared to the same period last year.
Net loans remained flat while both assets and deposits decreased by 5% and 8%
respectively since end-2010 due to balance sheet optimisation initiatives
2010 Financial Results Highlights
Net profit of AED 2.3 billion; -30% from AED 3.3 billion in 2009
Total income of AED 9.7 billion; -10% from AED 10.8 billion in 2009
Improvement of 14% in operating expenses from 2009 to AED 3.1 billion in 2010;
cost to income ratio improved by 1.5% to 31.4%
Operating profit before impairment allowances of AED 6.7 billion; -8% from AED
7.2 billion in 2009
Impairment allowances of AED 3.2 billion; 4% lower than 2009
Union Properties investment reduced by AED 1.0 billion 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
Emirates NBD
Operating profit
AED billion
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