Capital Adequacy and Divisional Performance slide image

Capital Adequacy and Divisional Performance

Q1 2010 and 2009 Financial Results ā˜ Q1 2010 Financial Results Highlights Operating profit before impairment allowances of USD 460m; -1% from USD 463m in Q1 2009; +4% from USD 442m in Q4 2009 Operating profit of USD 309m; -8% from USD 337m in Q1 2009; +68% from USD 184m in Q4 2009 Net profit of USD 302m; -12% from USD 343m in Q1 2009; +523% from USD 48m in Q4 2009 Improvement of equity & bond markets resulted in positive impact from mark to market valuations of USD 44m vs. negative USD 62m in Q1 2009 and negative USD 38m in Q4 2009 Net profit for Q4 2009 impacted by USD 86m impairment on and USD 44m share of losses of associate investments; negligible impact in Q1 2010 Capital ratios remain strong; CAR 21.9% and T1 13.9% at end Q1 2010 Loans declined 1% from 4Q 2009 levels while deposits grew 6%, improving the loan to deposit ratio to 111% from 118% at end-2009 2009 Financial Results Highlights Operating profit before impairment allowances of USD 1,970m; +42% from USD 1,386m in 2008 Operating profit of USD 1,066m; +14% from USD 936m in 2008 Net profit down 9% from 2008 Improvement of equity & bond markets resulted in positive impact from mark to market valuations of USD 58m vs. negative USD 615m in 2008 Net profit impacted by USD 86m impairment on and USD 44m share of losses of associate investments Cash dividend of 20% proposed by Board Capital ratios strengthened significantly from 2008 levels (CAR 20.8% and T1 13.3% at end-2009) USD million Net interest income Fee & other income Operating profit Net interest margin (%) EPS (USD Cents) ROE (%) USD billion Emirates NBD Key Performance Indicators Q1 Q1 Change Change 2009 2008 2010 2009 (%) (%) 471 525 -10% 2,018 1,589 +27% 172 209 -18% 783 1,051 -26% Investment & CDS MTM 54 (23) -332% 153 (340) n/a Total income 697 711 -2% 2,954 2,300 +28% Operating expenses (237) (248) -5% (984) (914) +8% Operating profit before impairment allowances 460 463 -1% 1,970 1,386 +42% Impairment allowances: (151) (126) +20% (904) (450) +101% Credit (141) (87) +63% (809) (175) +363% Investment securities (10) (39) -75% (95) (275) -66% 309 337 -8% 1,066 936 +14% Amortisation of intangibles (6) (6) 0% (26) (26) -2% Associates (0) 12 -104% (130) 92 -241% Share of profits (0) 12 -104% (44) 92 -148% Impairment of investments Net profit 0% - (86) n/a 302 343 -12% 910 1,002 -9% Cost: income ratio (%) 33.9% 34.9% -1.0% 2.58% 3.01% -0.43% 5.4 6.2 -12% 19.6% 25.7% -6.1% 16.4 16.2% 33.3% 39.7% -6.4% 2.81% 2.18% +0.63% 18.0 -9% 19.1% -2.9% Q1 Q4 Change Change 2009 2008 2010 2009 (%) (%) Total assets Loans 78.9 76.6 +2.9% 76.7 76.9 -0.3% 58.4 58.4 -1.2% 58.4 56.9 +2.7% Deposits 52.1 46.4 5.6% 49.3 44.2 +11.6% Capital Adequacy Ratio (%) 21.9% 16.2% +1.1% 20.8% 11.4% +9.4% Tier 1 Ratio (%) 13.9% 9.7% 0.6% 13.3% 9.4% +3.9% 14
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