Emirates NBD Financial Performance and Market Update
Appendix
Strategy
Financial & Operating Performance
Emirates NBD Profile
Operating Environment
Q2-17 Financial Results Highlights
Highlights
Net profit of AED 2,021 Mn for Q2-17 increased 8%
q-o-q and 6% y-o-y
Net interest income improved 6% y-o-y as loan
growth and higher EIBORS offset NIM contraction.
Net interest income improved 9% q-o-q due to loan
growth coupled with an improvement in NIMS
Non-interest income declined 7% y-o-y due to lower
gains from sale of investment securities in Q2-16
Costs improved 7% y-o-y as cost control measures
introduced in 2016 have taken effect
Provisions of AED 621 Mn improved 1% y-o-y and
3% q-o-q as cost of risk continues to normalize on
the back of improving asset quality metrics
NPL ratio improved to 6.1% and coverage ratio
strengthened to 123.5%
Liquidity Coverage Ratio (LCR) of 157.3% and AD
ratio of 95% demonstrates healthy liquidity position
NIMS widened since the beginning of the year as
loans reset at higher EIBOR rates and Deposit and
Wholesale funding costs receded on improved
liquidity
Key Performance Indicators
AED Mn
Q2-17
Q2-16
Better /
(Worse)
Q1-17
Better /
(Worse)
Net interest income
Non-interest income
Total income
Operating expenses
2,699
2,544
6%
2,486
9%
1,137
1,221
(7%)
1,131
0%
3,836
3,766
2%
3,617
6%
(1,136)
(1,226)
7%
(1,116) (2%)
Pre-impairment
2,699
2,540
6%
2,501
8%
operating profit
Impairment allowances
(621)
(626)
1%
(639)
3%
Operating profit
Share of profits from
associates
2,078
1,914
9%
1,862
12%
(26)
34
(176%)
39
(168%)
Taxation charge
Net profit
(31)
(38)
17%
(27)
(14%)
2,021
1,910
6%
1,873
8%
Cost: income ratio (%)
Net interest margin (%)
29.6%
2.49%
32.6%
2.55% (0.06%)
3.0%
30.9%
1.3%
2.33%
0.16%
AED Bn
Total assets
Loans
Deposits
456.2
448.0
2%
452.0
1%
304.0
290.4
5%
295.3
3%
319.9
310.8
3%
319.2
0%
AD ratio (%)
95.0%
93.4%
NPL ratio (%)
6.1%
6.4%
(1.6%) 92.5%
0.3% 6.3%
(2.5%)
0.2%
30-Jun-17 31-Dec-16 % 31-Mar-17 %
Emirates NBD
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