Investor Presentaiton
Financial Highlights
2010 and Q3 2011 YTD
"
Q3 2011 YTD Financial Results Highlights
Net profit of AED 2,332 million in Q3 2011 YTD, +20% vs. Q3 2010 YTD
Gain on Network International transaction of AED 1.8 billion
Continued balance sheet de-risking:
Key Performance Indicators
Income Statement
Q3 2011
Q3 2010
Change
2010
2009
Change
AED million
YTD
YTD
(%)
(%)
Net interest income
5,329
5,175
+3%
6,795
7,412
-8%
Fee & other income
2,110
2,285
-8%
2,926
3,382
-13%
-
increased Portfolio Impairment Allowances of AED 1.5 billion, substantially to
cover future contingencies
Total income
7,439
7,460
-0%
9,721
10,794
-10%
-
further reduction in book value of investment in Union Properties of AED 500
million
Increased conservatism on provisioning
Net interest income grew 3% compared to the same period last year to AED
5,329 million due to net interest margin improvement to 2.63% in Q3 2011 YTD from
2.56% in Q3 2010 YTD
Non-interest income decreased by 8% compared to the same period last year due to
lower investment securities income and the deconsolidation of Network International;
core fee income grew 3% compared to the same period last year.
Costs increased by 8% compared to the same period last year to AED 2,483
million in Q3 2011 YTD resulting from accelerated investment in future growth;
cost to income ratio rose by 3% to 33.4% compared to the same period last year.
Net loans remained flat while both assets and deposits decreased by 5% and 8%
respectively since end-2010 due to balance sheet optimisation initiatives
2010 Financial Results Highlights
Net profit of AED 2.3 billion; -30% from AED 3.3 billion in 2009
Total income of AED 9.7 billion; -10% from AED 10.8 billion in 2009
Improvement of 14% in operating expenses from 2009 to AED 3.1 billion in 2010;
cost to income ratio improved by 1.5% to 31.4%
Operating profit before impairment allowances of AED 6.7 billion; -8% from AED
7.2 billion in 2009
Impairment allowances of AED 3.2 billion; 4% lower than 2009
Union Properties investment reduced by AED 1.0 billion in 2010 through
recognition of share of losses and impairment
Deposits grew by 10% from end-2009 levels while loans declined 8%, improving the
loan to deposit ratio to 99% from 118% at end-2009
Emirates NBD
Credit
Operating expenses
(2,483)
(2,291)
+8%
(3,051)
(3,551) -14%
Operating profit before
4,956
5,168
-4%
6,670
7,243
-8%
impairment allowances
Impairment allowances:
(3,921)
(2,989) +31% (3,190)
(3,319)
-4%
(3,802)
(2,834) +34% (2,930)
(2,971)
-1%
Investment securities
(120)
(155) -23%
(260)
(348)
-25%
Operating profit
1,035
2,179
-53%
3,480
3,924
-11%
Amortisation of intangibles
Associates
(70)
(70)
+0%
(94)
(94)
+0%
(426)
(156)
+174% (1,024)
(477)
+115%
Gain on subsidiaries
1,813
n/a
n/a
Taxation charge
(19)
(16)
+17%
(23)
(10)
+130%
Net profit
2,332
1,937
+20%
2,339
3,343
-30%
Cost to income ratio (%)
33.4%
30.7%
+3%
31.4%
32.9%
-2%
Net interest margin (%)
2.63%
2.56%
+0%
2.52%
2.81%
-0%
EPS (AED)
0.38
0.31
+23%
0.37
0.58
-36%
ROE (%)
12.9%
11.3%
+2%
10.3%
16.2%
-6%
ROA (%)
1.1%
0.9%
+0%
0.8%
1.2%
-0%
Balance Sheet
30-Sep-11 31-Dec-10
AED billion
Change
(%)
Change
31-Dec-10 31-Dec-09
(%)
Total assets
271.9
286.2
-5%
286.2
281.6
+2%
Loans
196.4
196.4
+0%
197.1
214.6
-8%
Deposits
183.6
200.0
-8%
200.0
181.2
+10%
Capital Adequacy Ratio (%)
21.1%
20.1%
+1%
20.1%
18.7%
+1%
Tier 1 Ratio (%)
13.4%
12.8%
+1%
12.8%
11.9%
+1%
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