Capital Adequacy and Divisional Performance
Asset Quality
Retail and Corporate Loans & Receivables
•
•
Corporate Credit Quality
Portfolio credit quality remains satisfactory, despite challenging
economic environment
NPL ratio 1.11% at end-Q1 2010 vs. 0.98% at Q4 2009
96% of the portfolio is to UAE customers where the Bank has long-
standing relationships
•
Exposure is mainly to top tier names with diversified business
interests and multiple sources of repayment
Environment necessitates renegotiation of certain customer
accounts; amounting to USD 2.1b at end-2009 and Q1 2010
these reflect renegotiated repayment terms in line with
underlying cash flows; and
no sacrifice of interest or principal
Corporate & Sovereign Lending Portfolio
•
•
Real Estate & Contracting
Exposures to Real Estate and Contracting Sector are USD
7.4b (16%) and USD 2.0b (4%) respectively
Very selective in financing real estate sector; extent of finance
is generally limited to:
70% of construction cost excluding land or 60% of cost
including land (land valued at lower of cost or market
value)
60% of purchase price for completed properties
Exposure is mainly to top tier names with diversified business
interests and multiple sources of repayment
Financing now restricted to Emirates of Dubai & Abu Dhabi.
Repayment experience is satisfactory
Approximately 59% of the portfolio has a repayment maturity
of <3 years
100%
By Sector(1)
=
USD 47.5b
Manufacturi
Transport &
communicati
ng Trade
5%
on
4%
4%
Contracting
4%
Others
6%
Sovereign
28%
Personal -
Corporate
7%
Real
estate
16%
Services
11%
Banks & Fis
15%
Personal loans
Portfolio USD 2.0b (34%)
44% of value is to UAE nationals;
>60% of value is to government
employees
Personal loans only granted
subject to salary assignment
" Personal Loans losses well within
original expectations
No funding is given to applicants
Real Estate,
working in the
Construction and Contracting and
Hotel Industry
Credit Cards
Portfolio USD 0.6b (10%)
Product with highest yield in
retail
90+ delinquencies better
than industry benchmarks
Recent months delinquency
indicators have stabilised
with entry rates into
delinquency controlled
Retail Lending Portfolio
Car loans
Portfolio USD 0.8b (13%)
Portfolio balance has
declined in 2009 and Q1
2010
Minimum Income threshold
has been raised
Down payment of 10-20%
mandatory based on
customer profiles
Mortgages
Portfolio USD 1.3b (21%)
Only offered for premium
developers
By Sector(1)
100% USD 6.4b
Credit
Completed properties
account for 80% of the
portfolio
Overdrafts
7%
Cards
10%
Average LTV is 75% on
original value
Time
Personal
Loans
34%
Measures taken to control
exposures on unutilised
limits
"
Portfolio trends have been
stable in Q1 2010
> 75% of the customers
have only one loan from
Emirates NBD
Loans
15%
Lending criterions are
revisited regularly to ensure
that the quality of the loan
portfolio remains good
Mortgages
21%
Car Loans
13%
1) Loans and advances before provisions; Corporate & Sovereign Lending sectoral breakdown as per "Analysis by Economic Activity for Loans & Receivables" in note 5 of the Q1 2010 Financial statements
Emirates NBD
18View entire presentation