Emirates NBD Economic Environment and Business Outlook
Credit quality improving with market leading coverage
Impaired loans and allowances
Key Highlights
6.1
5.8
6.0
5.6
5.6
.
•
37.7
37.9
39.4
39.8
39.3
NPL ratio improved by 0.4% to 5.6% in H1-23 on strong writebacks and recoveries
Coverage ratio strengthened 2% to 147% in H1-23
28.3
26.6
27.3
26.2
26.8
152
147
143
145
133
.
- S1 coverage increased due to Turkish earthquake and higher rate environment overlay
- S2 coverage increased to 28.4%
- S3 coverage slightly lower as 95.8% as modest new inflow has lower initial coverage
2023 NPL guidance maintained at '-6%' and cost of risk guidance maintained at
'50-70bp'
Q2-22
Q3-22
■Impaired Loans (AED Bn)
--Coverage Ratio (%)
Coverage by Stage
Q4-22
Q1-23
Q2-23
Impairment Allowances (AED Bn)
NPL Ratio (%)
Stagewise ECL
(AED bn)
Total Gross Loans
FY-22 | AED 456 bn
Stage 1 87.7%
39.4
39.3
1.2%
26.8%
1.3%
Stage 2 6.4%
Stage 1
4.8
5.4
Stage 3 6.0%
28.4%
7.8
7.7
■Stage 2
■Stage 3
98.3%
95.8%
26.8
26.2
Q4-22
Q2-23
Q4-22
Q2-23
H1-23 | AED 479 bn
Stage 1 88.7%
Stage 2 5.7%
Stage 3 5.6%
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