UAE Economic Update
Credit Quality
Emirates NBD
Highlights
• Q1 2013 net impairment charge of AED 888 million
driven principally by additional net specific corporate
loan provisions
Impaired Loan & Coverage Ratios (%)
72.1
70.3
72.3
69.8
73.0
51.4
45.3
46.2
47.8
49.4
• Total portfolio impairment allowances amount to AED
3.7 billion or 3% of credit RWAS
14.1
14.3
14.4
14.3
14.2
•
Management targets for impaired loan coverage ratios:
80%-85% on underlying NPL portfolio
6.3
6.3
6.2
6.1
6.0
-
55%-60% on overall impaired loans to be achieved by
2013
Target coverage ratios to be achieved through more
conservative provisioning for and recognition of
impaired loans
7.8
8.1
8.2
8.2
8.2
Q4 12
Q1 13
Coverage ratio, excl. DW/DH*%
Coverage ratio, incl. DW/DH* %
Q1 12
Q2 12
Q3 12
Impact of DW/DH* %
NPL ratio, excl. DW/DH*
Impaired Loans and Impairment Allowances (AED billion)
Impaired Loans
Impairment Allowances
30.8
32.0
32.9
33.6
33.8
13.9
14.8
15.6
16.6
17.3
13.8
13.9
14.2
14.4
14.3
1.7
2.1
2.2
3.2
3.1
3.8
6.7
6.8
7.2
7.3
7.9
9.9
2.9 9.3
9.6 3.9
10.1
10.6 3.8
0.4
Q1 12
4.5
Q2 12
3.8.0.4
0.4
4.8
14.9
3.80.4
4.70.4
3.7
3.7
3.8
3.8
3.8
0.2.1.5.
-0.2
1.9
-0.3
2.1
0.2.2.1.
2.3
0.2
Q3 12
Q4 12
Q1 13
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
DW/DH*
Core Corporate
Retail
Islamic
Investment Securities
*DW/DH = includes D1 (exposure AED 9.3 billion; provision AED 529 million) and D2B (exposure AED 4.6 billion; provision AED 2.51 billion)
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