Investor Presentation August/September 2009
Net Interest Margins
Highlights
H1 2009 Net Interest Margin (NIM) of 2.58%
up 60pbs from 1.98% in H1 2008
- up 38pbs from 2.17% in H2 2008
■ Increase in H1 2009 NIM primarily driven by re-pricing of loans & and
the benefit of proactive balance sheet management
■ Q2 2009 NIM of 2.40%
up 52pbs from 1.88% in Q2 2008
down 34pbs from 2.76% in Q1 2009
■ Reduction in Q2 2009 NIM from Q1 2009 in line with expectations:
reduced differential between US$ Libor and Eibor;
increased cost of funding deposits; partly offset by
Qtrly NIM
Net Interest Margin Trends
2.76
2.40
2.09
2.37
1.97
1.96
1.92 1.92 1.89
1.88
2007
2008
2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Note: Net interest margin calculated based on annualised quarterly net interest income divided by
Average Total Assets (ATA)
Net Interest Margin Drivers (%)
-
benefit of continued re-pricing on assets
■ NIM is expected to reduce further towards the end of the year to
C.2.0%:
differential between US$ Libor and Eibor is expected to reduce
further
continued pressure on cost of deposits
Emirates NBD
0.04%
(0.19%)
2.76%
(0.21%)
2.40%
Q1 09
Repricing of
Assets
High Yield
Deposits
Reduced
differential
between Eibor
Q2 09
& Libor
10View entire presentation