Strategic Imperatives and Financial Overview
Capital Adequacy
Highlights
Capital adequacy ratio at 20.1% at end-2010 vs. 18.7% at end-2009
■ Tier 1 ratio increased from 11.9% at end-2009 to 12.8% at end-2010
as profit generation for the period exceeded the FY 2009 dividend
payment
■ Tier 2 capital increased to AED 15.9b vs. 15.2b at end-2009 mainly
due to positive Cumulative Changes in FV and an increased proportion
of qualifying Tier 2 capital, partially offset by redemption of Tier 2
securities
Risk Weighted Assets (RWAs) declined by 3% from end-2009 levels
10.5%
Capital Ratios - Basel II (AED billion)
18.7%
11.9%
20.1%
12.8%
41.8
43.6
8.4%
15.2
15.9
25.3
4.9
20.4
2008
T2
26.7
2009
T1
-T1 %
Note: Core Tier 1 ratio was 10.9% as at end-2010 compared with 10.1% at end-2009
27.7
2010
CAR %
Risk Weighted Assets - Basel II (AED billion)
Capital Movement Schedule - Basel II
241.3
10.6
5.2
End-2009 to end-2010 (AED million)
Tier 1
Tier 2
Total
223.9
13.1
3.2
217.2
Capital as at 31.12.09
26,654
15,178
41,832
13.8
2.3
Net profits generated
2,338
2,338
FY 2009 Dividend paid
(1,112)
(1,112)
225.4
207.6
201.1
Interest onT1 securities
(262)
(262)
Cumulative changes in FV
Reduction in unqualifying Tier 2 capital
776
776
389
389
2008
Redemption of T2 securities
2009
2010
Other
Credit Risk
■Market Risk
Operational Risk
Capital as at 31.12.2010
(474)
(474)
74
5
79
27,692
15,874
43,566
Emirates NBD
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