Credit Quality and Financial Performance
Operating Costs and Efficiency
Highlights
Costs declined by 14% to USD 831 billion in 2010 due to management
focus on cost optimisation and operating efficiency; the cost to income ratio
improved by 1.5% from 32.9% in 2009 to 31.3% in 2010
Cost to Income Ratio Trends
Cost to income ratio (YTD)
"
■
In Q1 2011, costs declined by 6% (USD 15 million) from Q1 2010 to USD
220 million principally due to deconsolidation of Network International in Q1
2011
37.6
37.4
35.8
Q1 2011 costs increased by 7% (USD 14 million) from Q4 2010 resulting
from acceleration of investment in future growth across advertising and
marketing costs, and expansion of retail distribution and sales force
The cost to Income ratio increased by 2.8% to 35.7% in Q1 2011 from
32.9% for 2010
The cost to Income ratio is expected to be managed during the remainder
of 2011 to the target range of c.32%-33%
Operating Cost Trends in 2010 (USD million)
38.5
34.9
33.7
32.7
32.9
32.2
32.2
31.4
30.8
35.7
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
Quarterly Operating Cost Components (USD million)
967
63
3
21
88
235
220
206
34
25
50
54
60
138
131
135
831
2009
Staff costs
Occupancy,
equipment &
operations
Advertising &
marketing
Other costs
2010
Q1 10
Staff costs
Emirates NBD
Advertising, marketing & other
Q4 10
Q1 11
■Occupancy, equipment & operations
■Network International costs
16View entire presentation