Investor Presentaiton
Credit quality improving with market leading coverage
Impaired loans and allowances
(All figures are in AED bn)
6.3
6.4
6.1
5.8
6.0
37.2
37.9
37.7
37.9
39.4
29.2
29.5
28.3
26.6
27.3
143
145
128
129
133
Q4-21
Q1-22
Q2-22
Q3-22
Q4-22
Impaired Loans (AED Bn)
Impairment Allowances (AED Bn)
*
Coverage ratio (%)
NPL Ratio (%)
Coverage by Stage*
*
Stagewise ECL (AED bn)
Key Highlights
NPL ratio improved by 0.3% to 6.0% in 2022 on continued strong writebacks
and recoveries
•
Coverage ratio strengthened 17% to 145% in 2022
- S3 coverage increased to 98.8% as writeback and recoveries reduced impaired
loan balances
- S1 & S2 coverage increased due to a movement in MEV assumptions
108 bps cost of risk within guidance
2023 guidance lowered to '<100bp' on recovery pipeline and higher coverage
level attained by DenizBank since acquisition
Total Gross Loans
37.2
39.4
1.1%
Stage 1
Stage 2
1.0%
22.2%
3.8
4.8
Stage 1
FY-21 | AED 459bn
26.8%
6.9
7.8
Stage 2
Stage 1 86.8%
Stage 2 6.8%
Stage 3 6.3%
Stage 3
90.6%
98.8%
26.4
26.8
Stage 3
FY-21
FY-22
FY-21
FY-22
Includes purchase originated credit impaired loans of AED 0.8 bn (Dec-21: AED 1bn) acquired at fair value / **Stage 3 coverage adjusted for POCI acquired at FV
FY22 | AED 456bn
Stage 1 87.7%
Stage 2 6.4%
Stage 3 6.0%
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