Investor Presentaiton
Credit quality
Highlights
•
During H1-20 NPL ratio increased from 5.6% to 5.8%
•
Coverage ratio at 116.9% remains strong
•
H1-20 net cost of risk increased to 172 bps (374 bps for DenizBank and 126
bps Emirates NBD only) on higher net impairment charge of AED 4,211 Mn
AED 614 Mn of write backs & recoveries in H1-20 compared to AED 527 Mn
during same period last year
Impaired Loan & Coverage Ratios (%)
128.4
127.4
127.3
126.6
125.8
123.9
NPL ratio
Coverage ratio
112.3
120.5
116.9
.
Stage 1 and 2 ECL allowances amount to AED 10.1 Bn or 2.6% of CRWA
6.0
5.8
5.9
5.9
5.9
5.6
5.5
5.8
4.8
•
The Group continues to take strong level of provisions in anticipation of a
potential deterioration in credit quality in subsequent quarters
Q2 18
Q3 18 Q4 18
Q1 19 Q2 19
Q3 19 Q4 19
Q1 20
Q2 20
Impaired Loans and Impairment Allowances (AED Bn)
Impaired Loans*
Impairment Allowances
+19%
+28%
31.5
32.3
27.6
26.0
26.1
28.0
29.2
+3%
+6%
27.1
2.1
2.9
22.0
4.6
0.5
1.3.
21.5
4.2
4.3
0.2
20.2
20.6
21.2
22.4
22.3
15.2
15.5
16.1
16.1
16.8
0.9
0.8
0.9
0.7
0.8
1.2
1.2
1.2
1.2
1.6'
5.4
5.5
4.9
4.9
5.4
5.7
5.7
5.4
5.7
5.5
Q2 19
Q3 19
Q4 19
Q1 20
Q2 20
Q2 19
Q3 19
Q4 19
Q1 20
Q2 20
DenizBank
Core Corporate
Retail
Islamic
*Includes purchase originated credit impaired loans of AED 2.5 bn (Dec-19: AED 3 bn) acquired at fair value
Financial & Operating Performance
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