Emirates NBD Operating Costs and Efficiency Highlights
Net Interest Income
ā
Highlights
Net Interest Margin Trends (%)
NIM of 2.52% in 2010; declined by 29 bps from 2.81% in 2009:
negative mix impact of deployment of increased liquidity in lower yielding interbank
and cash-equivalent assets
increase in deposit funding costs given strong competition for deposits in the UAE
partly offset by continued selective re-pricing of loans
Q3 NIM of 2.96% in increased by 55 bps from 2.41% in Q1 due to:
higher loan spreads due to declining average Eibor rates during Q3 2011
continued positive impact in Q3 2011 of downward re-pricing on deposits during
H1 2011
Higher treasury spreads
offset by lower benefit of free funds due to declining average Eibor rates during Q3
2011
Net interest income grew 3% compared to the same period last year to AED 5,329
million due to increased NIM for the period to 2.63% for Q3 2011 YTD
Net Interest Margin Drivers: 2010 (%)
2.96
- Qtrly NIM
3.01
- YTD NIM
2.85
2.81
2.79
2.65
2.81
2.76
2.58 2.56
2,53
2.52
2.60
2.63
2.59
2.54 2.51
2.48
2.41 2.41
2.21
2.11 2.09
2.18
2.05
2.01
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11
Net Interest Margin Drivers: Q3 2011 (%)
0.09%
(0.12%)
2.81%
(0.22%)
(0.04%)
2.52%
2.41%
0.30%
0.25%
0.06%
(0.06%)
2.96%
2009
Loan Spreads
Deposit
Spreads
Treasury
Spreads
Other
2010
Q1 2011
Loan Spreads
Deposit
Spreads
Treasury
Spreads
Other
Q3 11
Emirates NBD
16View entire presentation