Capital Adequacy and Divisional Performance
Operating Costs and Efficiency
Highlights
■ The headline cost to income ratio rose by 0.6% from 33.3% in 2009 to
33.9% in 1Q 2010
■ The core cost to income ratio rose by 1.6% from 35.1% in
2009 to 36.7% in 1Q 2010
Operating costs of USD 236 million in Q1 2010; down 5% from Q1
2009 and down 9% from Q4 2009:
-
-
Staff costs declined as the Group continues to optimise its variable
cost base on existing businesses
Occupancy, equipment & operations costs have increased as the
Bank continued to invest in technology, infrastructure
and selected platforms for growth
Marketing costs in Q4 2009 include costs relating to the launch of
the new Emirates NBD brand
■ Emirates NBD is continuing to target a mid-30s core business cost to
income ratio for 2010
Cost:income ratio
Core cost:income ratio
Cost to Income Ratio Trends (1)
39.0
38.9
37.4
36.7
38.2
38.3
39.7
37.6
37.9
35.1
36.7
34.9
34.6 34.5
35.7
35.4
34.6
33.7
33.9
33.3
32.9
32.2
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10
Operating Cost Composition (USD million)
258
248
236
13%
12%
7%
5%
8%
5%
16%
22%
26%
67%
57%
62%
Q1 2009
■Staff costs
Q4 2009
Q1 2010
Advertising, marketing & communications
■Occupancy, equipment & operations costs
Other costs
1) Cost to income ratios are presented on a year-to-date basis; Core cost to income ratio excludes impact of MTM on investments and other securities in 2008 and 2009
Emirates NBD
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