Investor Presentaiton
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
14
GOODWILL AND INTANGIBLES (CONTINUED)
Projected Growth Rate, GDP and Local Inflation Rates
Assumptions are based on published industry research.
The recoverable amount of goodwill of CGUS, determined on the basis of value in use calculation, uses cash
flow projections covering a five year period, with an appropriate terminal growth rate applied thereafter.
The forecast cash flows have been discounted using the WACC (4.23% for UAE and 21.88% for Egypt) in the
jurisdiction where the CGU operates. A one percentage point change in the discount rate or the terminal
growth rate would reduce the recoverable amount of the CGUS as mentioned in the table below:
Recoverable
amount
Cash Generating
Units (CGUS)
Goodwill
allocated to CGUS
One percentage
change in
(AED million)
discount rate
(AED million)
60,138
Corporate and
Institutional
banking
3,589
193,185
One percentage
change in
terminal growth
rate (AED million)
55,174
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
15 OTHER ASSETS
2021
Accrued interest receivable
AED 000
3,107,720
Islamic profit receivable
187,898
2020
AED 000
4,784,330
129,884
Prepayments and other advances
837,789
909,724
Sundry debtors and other receivables
1,938,780
3,046,706
Inventory
1,529,478
1,266,689
Deferred tax asset
929,142
882,845
Investments in associates*
201,628
Investment properties
440,351
584,724
Others
2,207,764
1,276,275
11,178,922
13,082,805
*During the year, the Group disposed its entire holding 36.72% in National General Insurance Company
(P.J.S.C) for a net consideration of AED 179 million.
Retail banking
and Wealth
1,700
198,537
61,804
56,702
16 DUE TO BANKS
Management
Global Markets and
206
96,725
30,110
27,625
Treasury
Emirates NBD
62
2,653
136
68
Egypt S.A.E
Based on the current impairment assessment, goodwill is not impaired as at 31 December 2021.
Intangibles
Acquired intangibles are recognised at their "fair value" upon initial recognition.
The specific criteria which needs to be satisfied for an intangible asset to be recognised separately from
goodwill in an acquisition is that the intangible asset must be clearly identifiable, in that it either;
Be separable, that is, be capable of being separated or divided from the entity and sold, transferred,
licensed, rented or exchanged, either individually or together with a related contract, asset or liability;
or
Arise from contractual or other legal rights, regardless of whether those rights are transferable or
separable from the entity or from other rights and obligations.
Intangibles excluding banking license and brand are amortised using the straight-line method over the
useful life of the asset, which is estimated to be between 3 and 11 years. If an indication of impairment
arises, the recoverable amount is estimated and an impairment loss is recognised if the recoverable
amount is lower than the carrying amount.
The banking license and brand has an indefinite life and is tested for impairment annually. For impairment
testing purposes, the banking license and brand are allocated to the relevant cash generating unit. Based
on the current assessment, banking license and brand is not impaired as at 31 December 2021.
Demand and call deposits
Balances with correspondent banks
Repurchase agreements with banks*
Time and other deposits
The interest incurred on the above averaged 1.14% p.a. (2020: 1.83% p.a).
2021
AED 000
2020
AED 000
1,982,456
4,075,248
1,311,937
1,154,569
2,364,908
5,988,940
38,095,906
43,755,207
40,453,311
51,672,068
*This includes Zero Cost Funding obtained from the CBUAE under its 'Targeted Economic Support Scheme
(TESS)' program amounting to AED Nil (2020: AED 5,242 million) which was fully utilised to provide payment
relief to the impacted customers.
57
EMIRATES NBD BANK PJSC - GROUP CONSOLIDATED FINANCIAL STATEMENTS - FOR THE YEAR ENDED 31 DECEMBER 2021
58
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