UAE Economic and FY 2012 Financial Results Update
Credit Quality
Emirates NBD
Highlights
• The impaired loans ratio improved by 0.1% q-o-q
to 14.3% in Q4 2012
• Provision coverage of impaired loans was at
69.8% at end-2012
• FY 2012 impairment charges of AED 4 billion
driven mainly by:
-
Corporate Specific provisions of AED 3.1 billion
Islamic specific provisions of AED 636 million
• Total portfolio impairment allowances of AED 3.6
billion or 2.8% of credit RWAs
Management Targets for Impaired loan
coverage ratios
80%-85% on underlying
NPL portfolio
C
55%-60% on overall
impaired loans by 2013
Target coverage ratios to be achieved through more
conservative provisioning for, and recognition of,
impaired loans
Impaired Loans and Coverage Ratios (%)
100.7
1.6
Q4 08
102.0
2.6
Q4 09
10.0
13.8
14.3
83.2
71.2
69.8
40.7
43.4
49.4
6.4
6.1
5.6
7.4
8.2
[4.4
Q4 10
Q4 11
Q4 12
Impact of DW/DH* %
NPL ratio, excl. DW/DH*
Coverage ratio, excl. DW/DH* %
Coverage ratio, incl. DW/DH* %
*DW/DH = includes D1 (exposure AED 9.38 billion; provision AED 552 million) and D2B (exposure AED 4.62 billion; provision AED 2.51 billion)
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