Emirates NBD Investor Presentation H1 2021
Capital adequacy
Highlights
• CET-1 ratio improved 0.6% during H1-21 driven by USD 1.3bn of retained earnings
which more than offset the 2% increase in RWAS
Capitalisation
19.1
19.0
17.9
18.5
18.5
18.7
18.0
17.4
17.9
17.6
16.8
17.3
•
• USD 0.5 billion increase in CRWAS relates to new CBUAE methodologies. The
remaining increase is due to growth in retail and other lending
14.8
15.3
15.6
15.0
15.6
15.6
21.1
22.1
22.8
22.5
23.0
23.1
Tier 1 ratio and CAR fell slightly in Q2-21 following the issue of $750m Basel-III
compliant AT1 notes and retirement of USD 1.1bn of legacy AT1 notes
1.3
1.3
1.3
1.3
1.3
1.4
2.8
2.8
2.8
2.5
•
Capital ratios remain well above minimum requirements of 11% CET-1 ratio, 12.5% Tier
1 ratio and 14.5% CAR, with TESS providing further 3% temporary relief until end-2021
Excluding regulatory relief from ECL add-back, CET-1 ratio would be 0.5% lower at
15.1%
17.3
18.3
18.6
18.3
18.8
19.2
Q1 20
Q2 20
Q3 20
Q4 20
Q1 21
Q2 21
Risk Weighted Assets (USD billion)
T1 %
CAP %
CET1
T2
AT1
CET1
Financial and Operating Performance
Capital Movements
USD billion
CET1
Tier 1
Tier 2
Total
Capital as at 31-Dec-2020
18.3
21.1
1.3
22.5
Denizbank
Operational Risk
Market Risk
+2%
Credit Risk
Net profits generated
1.3
1.3
1.3
117.4
119.8
119.1
121.6
121.1
123.5
Interest on T1 securities
(0.1)
(0.1)
(0.1)
32.2
33.7
31.8
34.6
33.3
33.2
ECL add-back
0.1
0.1
0.1
8.4
8.4
8.4
8.5
8.5
8.5
2.7
2.9
3.6
3.4
2.7
3.5
T1 Issuance
0.7
0.7
Repayment of T1 Instruments
(1.1)
(1.1)
74.1
74.8
75.4
75.2
76.5
78.3
Other
(0.4)
(0.4)
0.0
(0.4)
Capital as at 30-Jun-2021
19.2
21.7
1.4
23.1
Q1 20
Q2 20
Q3 20
Q4 20
Q1 21
Q2 21
21
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