Credit Quality Overview
Q3-14 YTD Financial Results Highlights
Emirates NBD
Highlights
Net profit of AED 3,913 Mn for Q3-14 YTD improved 51% y-o-y
Net interest income rose 19% y-o-y helped by an improved asset
mix due to retail and Islamic growth, a lower cost of funds helped
by both CASA growth and a reduction in more costly time
deposits and a contribution of 4% from Egypt
• Non-interest income improved 39% y-o-y boosted by increases in
trade finance and foreign exchange income, brokerage & asset
management fees and gains from the sale of investments and
property. There was a contribution of 2% from Egypt
Cost to income ratio improved 4.6% y-o-y to 29.5%. Excluding
one-offs, cost to income ratio was 31.6%. Costs increased 8% y-
o-y due to staff and occupancy costs linked with rising business
volumes and partially offset by a control of professional fees and
marketing costs. Egypt contributed 4.7% of the increase
NPL ratio improved by 1.3% during 2014 to 12.6% as net
impaired loans decreased by AED 1.7 Bn due to a sharp rise in
repayments and recoveries
• Provisions of AED 3,831 Mn boosted the coverage ratio by 12.8%
in 2014 to 70.3%
AD ratio of 99.2% within 90-100% management range (97.3%
excluding IPO leverage settled subsequent to Q3-14)
NIMs improved 25 bps y-o-y to 2.83% due to improving asset and
deposit mix and contribution from Egypt
Key Performance Indicators
AED Mn
Q3-14 YTD Q3-13 YTD
Better/
(Worse)
Net interest income
7,024
5,915
19%
Non-interest income
Total income
3,863
2,780
39%
10,887
8,695
25%
Operating expenses
(3,212)
(2,967)
(8%)
Pre-impairment operating
7,675
5,728
34%
profit
Impairment allowances
(3,831)
(3,400)
(13%)
Operating profit
3,844
2,328
65%
Share of profits from
associates
159
101
57%
Gain on disposal of stake in
associates/subsidiaries
Taxation charge
191
(100%)
(90)
(36)
(152%)
Net profit
3,913
2,584
51%
Cost: income ratio (%)
29.5%
34.1%
4.6%
Net interest margin (%)
2.83%
2.58%
0.25%
AED Bn
30-Sep-14 31-Dec-13
%
Total assets
353.9
342.1
3%
Loans
247.7
238.3
4%
Deposits
249.7
239.6
4%
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