Investor Presentation August/September 2009
Capital Adequacy
Highlights
Capital adequacy ratio at 19.0% in Q2 2009 (FY 2008: 11.4%)
Capital Ratios (AED billion)
100
20%
90
19.0%
16.2%
18%
■ Tier 1 capital increased from 9.4% at end-2008 to 12.1% at Q2 2009
due to:
80
13.1%
70
15%
11.4%
12.1%
60
10.5%
9.7%
13%
50
9.4%
-
profit generation for H1 2009 exceeding FY 2008 dividend payment
by AED 1.1b
40.0
10%
40
34.5
8%
30
22.7
24.7
14.4
13.8
20
4.4
- 5%
4.5
-
issuance of AED 4b Tier 1 perpetual securities in Q2 2009 to ICD
■ Tier 2 capital increased by AED 10.0b in H1 2009 due to:
conversion of MOF deposits into LT2 capital (AED 10.2b of the
AED 12.6b qualifies as T2 capital as at 30.06.09)
redemption of AED 500m LT2 bonds in exchange for 3 year senior
unsecured debt
■ Risk Weighted Assets (RWAs) fell by 3% from FY 2008 due to
continued focus on RWA by management
10
18.1
20.4
20.7
25.5
- 3%
0
0%
2007
2008
Q1 09
Q2 09
T1
T2
-T1 %
--CAR %
Capital Movement Schedule
FY 2008 to Q2 2009 (AED billion)
Capital as at 31.12.08
Net profits generated
Tier 1
Tier 2
Total
20.4
4.4
24.7
2.1
2.1
FY 2008 dividend paid
(1.0)
(1.0)
Conversion of MOF deposits
10.2
10.2
Issuance of T1 securities
4.0
4.0
Cumulative changes in FV
0.3
0.3
Redemption of T2 securities
Other
(0.5)
(0.5)
0.0
0.0
0.2
Capital as at 30.06.09
25.5
14.4
40.0
AED billion
Q2 09
FY 08
Diff %
Risk Weighted Assets
210.8
217.3
-3.0%
Emirates NBD
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