COVID-19 Response and Financial Performance slide image

COVID-19 Response and Financial Performance

Asset Quality Non-Performing Financing ("NPF")¹ Financing Provisions and Coverage Ratios NPF Ratio Impaired Financing Ratio Overall Coverage Ratio² 150% 4.8% 4.6% 135% 112% 3.9% 3.9% 3.4% 3.3% Dec 2018 Dec 2019 Sept 2020 Cumulative Provisioning (AED million) Provisions NPF Cost of Risk • 0.99% 0.87% * 10,049 0.51% 7,355 6,333 6,310 5,857 5,251 Dec 2018 Dec 2019 Sept 2020 بنك دبي الإسلامي Dubai Islamic Bank Provision Coverage Ratio 114% 101% 81% Dec 2018 Dec 2019 Sept 2020 Highlights Non-Performing Financing and impaired financing ratios continued to be robust during the current times, at 4.8% and 4.6% respectively. • Normalized cost of risk for the period was 99 bps (excluding one-off charges). . Overall coverage including collateral has remained well above 100%. ¹NPF ratio includes Bilateral Sukuk and is calculated as the sum of individually impaired and 90-day overdue Financing Assets; 2Overall Coverage Ratio is calculated as the sum of provisions held including regulatory credit risk reserve (if any) and collateral held relating to facilities individually determined to be impaired divided by non-performing financing. *Includes Purchased or Originated Credit Impaired (POCI) through Noor Bank acquisition Cost of Risk - Being ratio of net impairment charge on financing assets (normalized) divided by the gross financing and investment in Sukuk. 14
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