Emirates NBD Investor Presentation
Financial Highlights
2011
2011 Financial Results Highlights
Net profit of AED 2.5 billion, +6% vs. 2010
Net interest income grew 7% y-o-y to AED 7.3 billion due to net interest
margin improvement to 2.68% in 2011 from 2.52% in 2010
■ Non-interest income declined by 9% y-o-y due to impact of non-core items;
however core fee income grew 8% y-o-y
Costs increased by 15% y-o-y from AED 3.1 billion to AED 3.5 billion in
2011 resulting from investment in future growth opportunities and
additional depreciation on buildings commissioned in Q4 2011; Cost to
Income Ratio was at 35.3% in 2011 vs 31.4% in 2010
Continuation of balance sheet de-risking and conservatism on provisioning
resulted in impairment allowances of AED 5 billion and write-down in book
value of Union Properties investment of AED 750 million in 2011
Gain on Network International transaction of AED 1.8 billion
Signs of modest pickup in new underwriting with 4% y-o-y growth in net
loans
Deposits decreased 3% y-o-y due to balance sheet management initiatives
AED million
Net interest income
Fee & other income
Total income
Operating profit
Emirates NBD
Key Performance Indicators
Income Statement
Change
2011
2010
%
7,258
6,795
+7%
2,672
2,927
-9%
9,930
9,721
+2%
Operating expenses
(3,508)
(3,053)
+15%
Operating profit before impairment
allowances
6,422
6,668
-4%
Impairment allowances:
(4,978)
(3,190)
+56%
Credit
(4,757)
(2,930)
+62%
Investment securities
(221)
(260)
-15%
1,444
3,478
-58%
Amortisation of intangibles
(94)
(94)
+0%
Associates
(654)
(1,024)
-36%
Gain on subsidiaries
1,813
n/a
Taxation charge
(26)
(21)
+24%
Net profit
2,483
2,339
+6%
Cost to income ratio (%)
35.3%
31.4%
+3.9%
Net interest margin (%)
2.68%
2.52%
+0.16%
EPS (AED)
0.41
0.37
+9%
ROE (%)
10.2%
10.3%
- 0.1%
ROA (%)
Balance Sheet
0.9%
0.8%
+0.1%
Change
2011
2010
AED billion
%
Total assets
284.6
286.1
-1%
Loans
203.1
196.2
+4%
Deposits
193.3
200.0
-3%
Capital Adequacy Ratio (%)
20.5%
19.8%
+0.7%
Tier 1 Ratio (%)
13.0%
12.6%
+0.4%
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