Financial & Operating Performance
Appendix
Strategy
Financial & Operating Performance
Emirates NBD Profile
Operating Environment
FY 2017 Financial Results
Emirates NBD
14
Highlights
•
Net profit of AED 8,346 Mn for FY 2017 improved
15% y-o-y
Net interest income improved 7% y-o-y due to 5%
loan growth and helped by recent interest rate rises
Non-interest income improved 1% y-o-y as higher
foreign exchange and derivatives income offset
lower gains from the sale of properties
Costs improved 1% y-o-y as lower staff costs more
than offset an increase in costs both on Marketing
and IT relating to our planned investment in digital
and technology refresh
Provisions of AED 2,229 Mn improved 15% y-o-y
as cost of risk continues to normalize on the back
of improving asset quality metrics
NPL ratio stable at 6.2% and coverage ratio
strengthened to 124.5%
Liquidity Coverage Ratio (LCR) of 146.0% and AD
ratio of 93.1% demonstrates healthy liquidity
position
NIMS were stable y-o-y as the benefit from rate
rises coupled with lower deposit and wholesale
funding costs in 2017 offset higher deposit costs
experienced in 2016
Key Performance Indicators
AED Mn
Net interest income
Non-interest income
Total income
FY 2017
FY 2016
Better/
(Worse)
10,786
10,111
7%
4,669
4,637
1%
15,455
14,748
5%
Operating expenses
(4,844)
(4,888)
1%
Pre-impairment operating profit
10,611
9,860
8%
Impairment allowances
Operating profit
(2,229)
(2,608)
15%
8,382
7,252
16%
Share of profits from associates
Taxation charge
72
135
(47%)
(109)
(148)
27%
Net profit
8,346
7,239
15%
Cost: income ratio (%)
Net interest margin (%)
31.3%
33.1%
1.8%
2.47%
2.51%
(0.04%)
AED Bn
31-Dec-17
31-Dec-16
%
470.4
448.0
5%
304.1
290.4
5%
Deposits
AD ratio (%)
326.5
310.8
5%
93.1%
93.4%
0.3%
NPL ratio (%)
6.2%
6.4%
0.2%
Total assets
LoansView entire presentation