Emirates NBD Q1 2023 Earnings Report
Credit quality improving with market leading coverage
Impaired loans and allowances
6.4
6.1
5.8
6.0
5.6
37.9
37.7
29.5
28.3
26.6
37.9
27.3
39.4
26.2
Key Highlights
NPL ratio improved by 0.4% to 5.6% in Q1-23 on continued strong writebacks and
recoveries
39.8
.
Coverage ratio strengthened 7% to 152% in Q1-23
- S1 coverage increased due to Turkish earthquake and higher rate environment
overlay
- S3 coverage increased to 98.7% as writeback and recoveries reduced impaired
loan balances
2023 NPL guidance lowered to '-6%' and cost of risk guidance lowered to
'50-70bp' on recoveries and pipeline
152
143
145
133
129
Q1-22
Q2-22
Impaired Loans (AED Bn)
Coverage Ratio (%)
Q3-22
Q4-22
Q1-23
Impairment Allowances (AED Bn)
NPL Ratio (%)
Coverage by Stage
Stagewise ECL (AED bn)
Total Gross Loans
1.2%
1.4%
26.8%
26.7%
39.4
39.8
FY-22 | AED 456 bn
4.8
5.7
Stage 1 87.7%
7.8
7.7
Stage 2 6.4%
Stage 3 6.0%
■Stage 1
■Stage 2
26.8
98.3%
98.7%
26.4
■Stage 3
FY-22
Q1-23
FY-22
Q1-23
Q1-23 | AED 470 bn
Stage 1 88.3%
Stage 2 6.2%
Stage 3 5.6%
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