Investor Presentaiton
EMIRATES NBD
ANNUAL REPORT 2021
REVIEW OF
PERFORMANCE
Group Risk Management
Emirates NBD Group Risk Management has been
proactive and instrumental in identifying key existing
and emerging risks and risk drivers, measuring and
managing such risks against the backdrop of changing
macroeconomic conditions, while assessing and
influencing the Group's forward-looking strategy.
Emirates NBD
Risk Governance
The Board Risk Committee, Board Audit Committee and
Board Credit and Investment Committee are the main
Board level committees that oversee the Group's risk
management. In line with best practice, the Group
continues to employ an enterprise-wide approach to
risk management.
June 2021
Al Jalila Foundation
Five Hundred Thousand Dirhams
AED 500.000.00
The Enterprise and Regulatory Risk unit provides an
overarching view of emerging risks and facilitates the
coordination between key risk functions in order to
minimise risks and achieve business objectives
cohesively and effectively.
Credit Risk - Corporate and Institutional Banking,
Business Banking, Private Banking and Treasury
Emirates NBD Group Credit reviews and updates the
Group's credit policies, delegated lending authorities,
guidelines, and processes on an ongoing basis to ensure
alignment with the Group's business strategy and the
Group Risk Appetite Statement.
Aligned to the Group's Risk Appetite Statement, a timely
review of underwriting standards is undertaken as well
as strengthening of client selection criteria, sector
strategies, sanction terms and conditions including
security requirements to maintain the quality of asset
booking. Periodic stress tests and reviews of the
portfolio are undertaken to identify and proactively
manage credit risks through a robust and well-
established early alert, past dues and exception
monitoring processes.
The Group follows the Central Bank of the UAE's criteria
for asset classification and IFRS 9 reporting requirements,
ensuring delinquency classification and compliance to
provisioning requirements.
The Financial Restructuring and Remedial team steers
its efforts on recovery from delinquent customers to
ensure efficient collections and to reduce the flow of
new non-performing Loans (NPLs) to minimise the
impact of NPLs on the Group's performance.
Credit Risk - Retail Banking and Wealth Management
Group Retail Credit proactively monitors portfolios and
implements strategies considering the external
environment, focusing on growth for selected segments.
Portfolio management measures on existing customers
of the Group continued, including regular credit line
reviews. The Group's risk strategy aims to support
portfolio growth within acceptable risk appetite
thresholds.
The Group continued its prudent lending policies with
adjustments made based on portfolio performance and
external environment. Multiple programmes were
launched to assist impacted customers during the
COVID-19 pandemic.
Going forward, the Group will continue to consolidate
its Retail Banking and Wealth Management portfolios
and continue to invest in technology to enhance
operational efficiencies in its credit underwriting
streams.
Credit Risk - Rating Models
The Group continued to enhance the use of internal
rating models during the year. Data-driven risk
assessment and decision models were used extensively
across Retail Banking and Wealth Management for all
stages of retail customer credit lifecycle, namely
acquisition, portfolio management, collections, and
recoveries.
The Group continued to enhance its IFRS 9 models
during the year, with regular runs executed throughout
2021. The models cover all Emirates NBD Group entities
and geographies for the computation of Expected Credit
Loss (ECL) in line with IFRS 9 requirements and specific
local regulations. In determining ECL during 2021, the
Group considered the potential aftereffects (based on
the best available information) of the uncertainties
caused by the COVID-19 pandemic and economic
support and relief measures of governments and central
banks across all its operating geographies. The Group
also considered the notices issued by the Central Bank
of UAE with regards to the Targeted Economic Support
Scheme (TESS) and guidance issued by the International
Accounting Standards Board (IASB) and other regulatory
and accounting bodies.
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Emirates NBD contributes AED 500,000 to Al Jalila Foundation
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