Capital Adequacy and Divisional Performance
Asset Quality
Investments & Trading Securities
Highlights
■ The recovery of equity and bond markets in Q1 2010 resulted in positive
net impact of mark to markets and impairments on investment securities
Underlying quality of investment portfolio remains good and some losses
on fixed income securities will reverse if held to maturity and no credit
event occurs
Exposure to sub-prime and related exposures (e.g. RMBS, CMBS, CDOS,
CLOS) are minimal
■ Portfolio is being monitored and managed closely by Group Investment
Committee (GIC) to reduce exposure where opportunities arise or where
future distress in anticipated. The portfolio has been reduced by 25% in
2009 (excluding purchases made for liquidity management)
USD million
Trading Securities
Subtotal
By Type
100% USD 4.7bn
Others, 15%
Hybrid Instruments,
0%
Equity, 20%
MTM Impact
Total
Balance
P&L impact
Income
Impairm.
Cum.
changes
in FV
Investment Securities
4,271
18
(15)
84
384
16
4,655
34
(15)
84
Investment Securities
in L&R
195
5
Q1 2010
4,850
34
(10)
84
FY 2009
5,032
91
(95)
249
FY 2008
5,689
(216)
(275)
(493)
Composition of Investment Securities: [2009(1)
By Category
100% = USD 4.7bn
Trading Securities,
Government Bonds,
19%
8%
Designated at FV
through P&L, 8%.
Corporate/FI
Bonds, 46%
Note: Excludes investment securities in L&R of USD 195m
Emirates NBD
Held to Maturity, 3%
International, 46%
By Geography
100% USD 4.7b
Domestic, 37%
Available for sale,
81%
Regional, 17%
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