Emirates NBD Financial Performance and Awards 2014 slide image

Emirates NBD Financial Performance and Awards 2014

Q4-14 Financial Results Highlights Emirates NBD Highlights Net profit of AED 1,226 Mn for Q4 improved 82% y-o-y and declined 22% q-o-q Net interest income rose 11% y-o-y helped by an improved asset mix mainly due to Islamic growth, a lower cost of funds helped by both CASA growth and repayment of MOF Tier 2 deposit Non-interest income improved y-o-y boosted by foreign exchange and derivative income but declined 22% q-o-q due to reduced income from sale of property and investment securities 15% • Cost to income ratio improved 5.7% y-o-y to 33.1%. Excluding one-offs, cost to income ratio was 30.5%. Expenses improved 4% y-o-y linked with rising business volumes, partially offset by a control of staff and other costs • NPL ratio improved significantly to 7.8% in Q4 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 1,163 Mn boosted the coverage ratio to 100.3% • AD ratio of 95.2% within management range NIMS improved 15 bps y-o-y to 2.91% due to an improved asset and deposit mix Key Performance Indicators Better/ AED Mn Q4-14 Q4-13 Q3-14 (Worse) Better/ (Worse) Net interest income 2,473 2,224 11% 2,465 0% Non-interest income 1,082 938 15% 1,380 (22%) Total income 3,555 3,162 12% 3,845 (8%) Operating expenses (1,177) (1,228) 4% (1,075) (10%) Pre-impairment 2,378 1,934 23% 2,770 operating profit (14%) Impairment allowances (1,163) (1,313) 11% (1,219) 5% Operating profit Share of profits from associates 1,214 621 95% 1,552 (22%) 51 45 12% 38 35% Gain on disposal of stake 0 12 (100%) 0 n/a (39) (5) (632%) (27) (47%) Net profit 1,226 673 82% 1,563 (22%) Cost: income ratio (%) 33.1% 38.8% 5.7% 27.9% (5.2%) Net interest margin (%) 2.91% 2.76% 0.15% 2.95% (0.04%) AED Bn 31-Dec-14 31-Dec-13 % 30-Sep-14 % Total assets 363.0 342.1 6% 353.9 3% Loans 246.0 238.3 3% 247.7 (1%) Deposits 258.3 239.6 8% 249.7 3% 16 in associates/subsidiaries Taxation charge
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