Capital Adequacy and Divisional Performance slide image

Capital Adequacy and Divisional Performance

Asset Quality Loans & Receivables and Islamic Financing Highlights ■ Credit quality remains satisfactory across the Bank's corporate and retail portfolios Increase in delinquencies and NPLs is within expectations ■ NPL ratio, excluding impaired investment securities, increased to 2.63% in Q1 2010 from 2.36% reported in Q4 2009 ■ Added USD 21m to portfolio impairment provisions in 1Q 2010; total portfolio impairment allowances of USD 527m at end-2009 or 1.2% of loans (excluding Sovereign) Loan Portfolio by Type - Q1 2010(1) 100% USD 59.5b Sovereign 23% Islamic 9% Retail 11% Corporate 57% NPL & Coverage Ratios (2) 118% 110% 109% 105% 106% 103% 104% 104% 105% 102% NPL and Impairment Allowance Composition (USD million) (2) NPL Composition 1,513 1,373 207 186 Impairment Allowance Composition 1,550 1,436 527 506 2.36% 0.26% 2.63% 2.10% 786 731 538 635 1.88% 56 1.57% 155 930 1,023 1.20% 355 1.00% 1.00% 0.98% 520 0.93% 0.95% 456 480 126 Q4 07 Q1 08 INPL Ratio % Impact of accounting change 1) Loans and advances before provisions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 2010 2008 2009 Q1 2010 Corporate Retail Islamic Coverage Ratio % 2008 2009 Q1 2010 ■Specific Impairment Allowances ■Portfolio Impairment Allowances 2) NPLs, Impairment Allowances and Coverage ratios for 2008 & 2009 exclude investment securities classified as loans & receivables which are disclosed as "Others" in the Credit Quality Analysis section of Note 47 of the 2009 Financial Statements; Accounting change refers to the Bank's move to recognition of Retail NPLs at 90+ days overdue from 180+ days overdue Emirates NBD 17
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