Capital Adequacy and Divisional Performance
Income
Net Interest Margin Trends (%)
Q1 2010 NIM of 2.58%; -27bps from 2.85% in Q4 2009:
-
Loan spreads declined due to rising Eibor rates and mix impact of
declining retail loan balances
Continued pressure on liability spreads given shortage of medium
and longer-term liquidity in the banking market
Declining treasury spreads due to mix impact of higher interbank
placements and lower interbank spreads given
stabilisation of international markets
continued
Qtrly NIM (AIEA)
2.65
2.21
2.01
2.05
3.01
2.85
2.76
2.60
2.58
Q1 08
Q2 08
Q3 08
Q4 08
Q1 09
Q2 09
Q3 09 Q4 09
Q1 10
Note: Net interest margin is calculated based on Average Interest Earning Assets (AIEA)
Non-interest Income Trends (USD million)
■ Non-interest income impacted in 2008 by decline in global asset
valuations and mark to markets on investment and other securities
■ 2009 witnessed improved financial asset valuations and partial reversal
of the negative mark to markets
■ Core non-interest income for Q1 2010, excluding the impact of mark to
market valuations:
- derived from a diverse range of activities
- declined by 18% from Q1 2009 and by 11% from Q4 2009 due
primarily to lower new underwriting and trade finance activity
- stabilising at c.25-30% below the peak of H1 2008
Emirates NBD
32
Q1 08
Q2 08
Q3 08 Q4 08
■Non-interest income
Q1 09 Q2 09 Q3 09 Q4 09
■Core non-interest income
Q1 10
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