Emirates NBD Financial Performance and Awards 2014 slide image

Emirates NBD Financial Performance and Awards 2014

FY-14 Financial Results Highlights Emirates NBD Highlights • Net profit of AED 5,139 Mn for FY-14 improved 58% y-o-y, with pre-impairment operating profit exceeding AED 10 bn, a first for any UAE bank • Increased dividend of AED 0.35 per share proposed • Net interest income rose 17% y-o-y helped by an improved asset mix due to retail and Islamic growth, a lower cost of funds due to CASA growth and reduction in more costly time deposits • Non-interest income improved 33% y-o-y due to higher transaction volumes, translating into higher banking fee income across business units, and one-off gains from the sale of property and investments Cost to income ratio improved 5% y-o-y to 30.4%. Excluding one-offs, cost to income ratio was 31.3%. Expenses increased 5% y-o-y due to staff and occupancy costs linked with rising business volumes, partially offset by a control of professional fees and marketing costs NPL ratio improved significantly to 7.8% in 2014 due to reclassification of DW exposure, write-off of fully provided Retail loans and strong recoveries on the back of an improved economy • Provisions of AED 4,995 Mn boosted the coverage ratio in 2014 to 100.3% • AD ratio of 95.2% within management range NIMS improved 22 bps y-o-y to 2.85% due to an improved asset and deposit mix Key Performance Indicators AED Mn Net interest income Share of profits from associates FY-14 FY-13 Better/ (Worse) 9,496 8,139 17% Non-interest income 4,946 3,717 33% Total income 14,442 11,856 22% Operating expenses (4,389) (4,194) (5%) Pre-impairment operating 10,053 7,662 31% profit Impairment allowances (4,995) (4,713) (6%) Operating profit 5,058 2,949 72% 210 147 43% Gain on disposal of stake in 0 202 associates/subsidiaries (100%) Taxation charge (129) (41) (214%) Net profit 5,139 3,256 58% Cost: income ratio (%) 30.4% 35.4% 5.0% Net interest margin (%) 2.85% 2.63% 0.22% AED Bn 31-Dec-14 31-Dec-13 % 363.0 342.1 6% 246.0 238.3 3% 258.3 239.6 8% 15 Total assets Loans Deposits
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