Emirates NBD Operating Costs and Efficiency Highlights
Credit Quality
Retail and Corporate Loans & Receivables
•
Corporate Credit Quality
Impaired loan ratio 12.4% at Q3 2011 vs. 9.5%
compared to the same period last year.
95% of the portfolio is to UAE customers where
the Bank has long-standing relationships
Exposure is mainly to top tier names with
diversified business interests and multiple
sources of repayment
Environment necessitates renegotiation of
certain customer accounts; amounting to
AED 13b in Q3 2011 vs. AED 7b at Q4 2010:
these reflect renegotiated repayment terms in
line with underlying cash flows; and
without sacrificing interest or principal
•
Personal loans
Portfolio AED 6.5b (30%)
"
55% of value is to UAE
nationals; 60% of value is to
government employees
Personal loans are only
granted subject to salary
assignment
Personal Loans losses well
within original expectations
No funding is given to
applicants working in the real
estate, contracting and hotel
industries
"
•
•
Credit Cards
Corporate & Sovereign Lending Portfolio
Real Estate & Contracting
Exposures to Real Estate and Contracting Sector are AED 24.7b
(15%) and AED 5.5b (3%) respectively
Selectively financing real estate sector; extent of finance is generally
limited to:
70% of construction cost excluding land; and
land and cost overruns to be financed by the owner
Real Estate financing is restricted to Emirates of Dubai & Abu Dhabi
Exposures to these sectors are mainly to diversified businesses
having multiple repayment sources of repayment
Repayment experience is satisfactory
Approximately 54% of the Real Estate portfolio has a repayment
maturity of <3 years
Portfolio AED 2.9b (14%)
Product with highest
yield in Retail Portfolio
90+ delinquencies better
than industry
benchmarks
Measures taken to
control exposures on
unutilised limits
2010 & 9M 2011
delinquency trends
improving
Retail Lending Portfolio
Car loans
Portfolio AED 2.7b (13%)
Portfolio balance has
declined from end-2009
due to changes in credit
policy
Minimum Income
threshold has been raised
Down payment of 10-20%
mandatory based on
customer profiles
2010 & 9M 2011
delinquency trends
improving
Mortgages
Portfolio AED 3.7b
(17%)
100%
Transport &
communicat
ion
3%
By Sector(1)
AED 169.3 b
Contracting
3%
Manufacturi
Trade
4%
ng
4%
Others
4%
Personal -
Sovereign
34%
Corporate
6%
Real
Services
9%
Banks & Fls estate
18%
15%
Only offered for premium
developers
Completed properties
account for 86% of the
portfolio
Average LTV is 75% on
original value
By Sector(1)
100% AED 21.6b
Others
4%
Overdrafts
11%
Car Loans
13%
Personal
Loans
30%
> 75% of the customers
have only one loan from
Mortgages
Credit
17%
Emirates NBD
Cards
Time
14%
Loans
11%
2010 & 9M 2011
delinquency trends improving
2010 & 9M 2011
delinquency trends
improving
1) Loans and advances before provisions; Corporate & Sovereign Lending sectoral breakdown as per "Analysis by Economic Activity for Assets" in note 5, page 10 of the 3Q 2011 Financial statements
Emirates NBD
24
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