Emirates NBD Banking Sector Update
Operating Costs and Efficiency
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Highlights
Costs declined by 14% to AED 3.1 billion in 2010 due to management
focus on cost optimisation and operating efficiency; the cost to income ratio
improved by 1.5% from 32.9% in 2009 to 31.3% in 2010
In Q3 2011 YTD, costs increased by 8% compared to the same period
last year to AED 2,483 million resulting from accelerated investment in
future growth across advertising and marketing costs, and expansion of
retail distribution and sales force
The Cost to Income ratio increased by 3% to 33.4% in Q3 2011 YTD from
30.7% in Q3 2010 YTD.
The cost to Income ratio is expected to be managed to the target range
of c.32%-33%
Cost to Income Ratio Trends
Cost to income ratio (YTD)
38.5
37.6 37.4
35.8
34.9
33.7
32.7
32.9
32.2
32.2
31.4
30.8
Target CI Ratio of 32%-33%
Operating Cost Trends in 2010 (AED million)
3,551
232
(33)
(48)
(187)
35.7
33.8 33.4
Q1 08Q2 08Q3 08Q4 08Q1 09Q2 09 Q3 09Q4 09Q1 10Q2 10Q3 10Q4 10Q1 11Q2 11 Q3 11
Quarterly Operating Cost Components (AED million)
2,291
132
188
571
3,051
1400
2,483
260
628
1595
Q3 10 YTD
2009
Staff costs
Occupancy, Advertising
equipment & & marketing
operations
Other costs
2010
Staff costs
■Advertising, Marketing & Other
Q3 11 YTD
■Occupancy, equipment & operations
■Network International
Emirates NBD
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