Credit Quality Overview
Net Interest Income
Highlights
NIMS improved 17 bps in Q3-14 and improved 25 bps from
2.58% in Q3-13 YTD to 2.83% in Q3-14 YTD
• Loan spreads improved in Q3 and y-o-y due to growth in higher
yielding retail and Islamic assets
• Deposit spreads improved in Q3 due to CASA growth and
repayment of Ministry of Finance Tier 2 deposit
•
•
Net Interest Margin (%)
Emirates NBD
2.95
2.83
2.83
2.78
2.76
2.75
2.77
2.47
2.48
2.62
Treasury spreads improved y-o-y due to strong investment
performance coupled with cheaper cost of wholesale funding
2.58
2.42
2.39
2.35
2.43
2.44
We expect NIMs to finish 2014 at the high end of the guidance
range of 2.7-2.8%
Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
Net Interest Margin Drivers (%)
Q3-14 vs. Q2-14
2.95
0.021
0.01
0.07
2.78
0.07
Qtrly NIM
YTD NIM
Q3-14 YTD vs. Q3-13 YTD
2.83
0.06
0.00
(0.01)
0.21
2.58
Q2 14
Loan Deposit Treasury Other
Spreads Spreads Spreads
Q3 14
Q3 13
YTD
Loan Deposit Treasury
Spreads Spreads Spreads
Other
Q3 14
YTD
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