Emirates NBD 2014 Achievements and Strategic Update
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
DepositsView entire presentation