Credit Quality and Financial Performance slide image

Credit Quality and Financial Performance

Non Interest Income Highlights 2010 non-interest income declined by 13% from 2009, impacted by: ○ USD 58m write-downs of investment properties ○ lower positive investment securities income о core gross fee income witnessing signs of stabilisation Q1 2011 non-interest income declined by 26% y-o-y and 5% q-o-q due to: О о lower investment securities income given impact on regional investment valuations due to regional geopolitical issues, and deconsolidation of Network International Q1 2011 core fee income grew 7% and 19% from Q1 2010 and Q4 2010 respectively, driven by: O pickup in trade finance income (+14% q-o-q and +1% y-o-y) increase in banking fee income (+16% q-o-q and +32% y-o-y) Core Gross Fee Income Trends in 2010 (USD million) Composition of Non Interest Income (USD million) Fees & commission expense Q1 USD million 2011 Q1 2010 Change (%) Change 2010 2009 (%) Core gross fee income 181 161 +12% 909 936 -3% (18) (10) +88% (206) (181) -14% Core fee income 163 152 +7% 703 755 -7% Investment properties Investment securities Network International(1) 0 (20) -101% (51) (11) +346% 3 66 -95% 145 177 -18% - 27 -100% n/a n/a n/a 167 225 -26% 797 921 -13% Total Non Interest Income 1) Network International non interest income split out for quarterly comparisons only Quarterly Core Gross Fee Income Components (USD million) 936 23 (15) (8) (32) 181 176 166 161 145 49 50 50 72 12 30 9 12 9 11 86 909 66 71 51 74 37 41 33 33 37 2009 Trade finance Fee Income Acquiring business Brokerage Forex, 2010 & AM fees Rates & Other Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 ■Trade finance ■Fee Income ■Brokerage & AM fees ■Forex, Rates & Other Emirates NBD 15
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