Strategic Imperatives and Financial Overview
Summary of major achievements in 2010
Optimise
Balance
Sheet
Drive
Profitability
Achievements
Proactive Liquidity Management by the Group has resulted in significant improvement of
liquidity, manifested through strong increase in customer deposit base both in Wholesale as
well as Consumer Banking
- Strengthening of Cash Management facilities in Corporate banking paired with dedicated deposit
gathering effort through RMs
- Further build-up of Private Banking with increase in RMs from 55 to 60, resulting in Net New
Money of more than AED 10b and generating operating profits of more than AED 100m in 2010
compared to break-even profitability in 2009
- Dedicated retention team in Retail Banking helped to limit outflow of deposits in mass retail
- Active management strategies included build up of high quality Liquidity Asset Buffers (LAB) and
selective approach to capital market for Medium Term funds
- Successful securitisiaton of auto loan and corporate loan repurchase transaction generating
AED 3b of long-term funding
Further deleveraging and reduction of asset book
- Reduction of Retail and Corporate asset portfolios through continued caution on new
underwriting
- AED 1.8b reduction in investment and trading securities portfolio
Sale of 49% stake in NI to Abraaj to realise value and generate capital for further investments
▪ Enhancement of revenues on Corporate side through continued re-pricing of loan portfolio
■ Successful Retail banking efforts to increase NFI along several dimensions (FX, Credit cards
and Investment Income), resulting in 19% growth in CWM non-interest income
Significant improvement of overall cost position, e.g.,
- Efficiency gains and further capturing of merger synergies has led to staff cost reduction of
AED 232m
– High spend transparency, tight vendor management and increased operations efficiency reduced
non-staff cost by AED 266m
CAR strengthened to
20.1% from 18.7% at
end-2009
■ Tier 1 increased to
12.8% from 11.9% at
end-2009
Deposits grew by
10% from end-2009
vs.8% decrease in
loans, lowering the
LTD ratio to 99%
Significant profit on
sale of NI stake
expected in Q1 2011
■ 2010 costs improved
by 14% to AED
3,053m million from
2009
☐
ROE of 10.3% for
2010 despite
significant
impairments on credit
and associate
investments
Emirates NBD
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