Emirates NBD Bank (P.J.S.C) · DFM:EMIRATESNBD

Emirates NBD Bank (P.J.S.C) — Emirates NBD — Q2 2010 Earnings Presentation

15 slides from Emirates NBD Bank (P.J.S.C)'s earnings presentation, Jul 26, 2010

  1. Slide 1: Emirates NBD Q2 2010 Results Presentation

    Emirates NBD Q2 2010 Results Presentation July 26, 2010 1

  2. Slide 2: Important Information

    Important Information Disclaimer The material in this presentation is general background information about Emirates NBD's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to

  3. Slide 3: Financial Highlights

    Financial Highlights  Total income for H1 2010 of AED 4.9 billion; -11% from H1 2009  Net interest income down 5% to AED 3.5 billion in H1 2010 given NIM impact of improved funding profile  Core non-interest income held steady in Q2 2010 from Q1 2010 and down 7% in H1 2010 from H1 2009  H1 2010

  4. Slide 4: H1 2010 Financial Results

    Q1 2010 Financial Results H1 2010 Financial Results Highlights Key Performance Indicators  Total income of AED 4,870m; -11% from AED5,499m in H1 2009 AED million H1 H1 Change Q2 Q2 Change 2010 2009 (%) 2010 2009 (%)  Income includes a write-down of investment properties of AED 161m Net interest in

  5. Slide 5: Income

    Income Net Interest Margin Trends (%)  Q2 2010 NIM of 2.54%; -5bps from 2.59% in Q1 2010: 3.01 – Declining treasury spreads due to mix impact of higher interbank Qtrly NIM 2.85 2.76 placements and lower interbank borrowings and higher interbank 2.65 2.60 2.59 2.54 borrowing spreads – Partly offset

  6. Slide 6: Operating Costs and Efficiency

    Operating Costs and Efficiency Highlights Cost to Income Ratio Trends(1)  The headline cost to income ratio declined by 0.9% from 33.3% in Cost:income ratio 2009 to 32.4% in H1 2010 Core cost:income ratio  The core cost to income ratio declined by 2.3% from 35.3% in 2009 to 33.0% in H1 2010 37.6 

  7. Slide 7: Asset Quality

    Asset Quality Loans & Receivables and Islamic Financing Highlights Loan Portfolio by Type – Q2 2010(1)  Credit quality remains satisfactory across the Bank’s corporate and 100% = AED 211.6b retail portfolios  Increase in delinquencies and NPLs is within expectations; NPL formation is decelerating,

  8. Slide 8: Capital Adequacy

    Capital Adequacy Highlights Capital Ratios - Basel II (AED billion)  Capital adequacy ratio at 19.6% in Q2 2010 vs. 18.7% in Q4 2009 19.6% 19.6% 18.7%  Tier 1 ratio increased from 11.9% in Q4 2009 to 12.5% in Q2 2010 as 11.9% 12.4% 12.5% 10.5% profit generation for the period exceeded the FY 2009

  9. Slide 9: Funding and Liquidity

    Funding and Liquidity Highlights Loan to Deposit Ratios (%)  Funding remains stable and deposit mobilisation initiatives proved Headline LTD Ratio % successful; headline LTD ratio 103% at end-Q2 2010 vs. 118% at end- Adjusted LTD Ratio % 2009 129% 126% 127%  Continue to access stable interbank lin

  10. Slide 10: Divisional Performance

    Divisional Performance AED billion AED million  Corporate Banking recorded a positive half year 172.4 165.1  Key focus during the period was on balance sheet optimisation, Corporate Banking 2,215 2,208 continued proactive management of credit quality, building non-risk based and fee generating bus

  11. Slide 11: Divisional Performance (cont'd)

    Divisional Performance (cont’d) AED million  Revenues in H1 2010 were AED 334m compared with AED Global Markets & 808m in H1 2009, the decline being primarily due to contraction -59% Treasury in the spreads generated from interbank funding in H1 2010 808 compared with H1 2009 334  The Trading busi

  12. Slide 12: Strategic Imperatives for 2010

    Strategic Imperatives for 2010 Objectives Evidence of success in Q1 2010  Prudent lending growth  CAR strengthened to 19.6% from 18.7% at end-  Focus on funding 2009 – Leverage distribution network  Tier 1 increased to 12.5% from 11.9% at end- 2009 Optimise – Maintain & develop wholesale sources

  13. Slide 13: Outlook

    Outlook  While Q1 2010 witnessed early signs of stability and increased economic activity and confidence in the UAE, economic activity in Q2 2010 has remained relatively subdued given renewed Global uncertainties  Dubai remains well-positioned:  Due to its strategic location and advanced infrastr

  14. Slide 14: Summary

    Summary  Robust financial performance with steady core income compared with Q1 2010  Cost rationalisation initiatives proving successful evidenced by reductions in absolute levels of expenses and in the cost to income ratio  Significantly improved liquidity metrics and strong capital ratios due t

  15. Slide 15: Investor Relations

    Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] Ben Franz-Marwick Head, Investor Relations Tel: +971 4 201 2604 Email: [email protected] Chaden Boustany Investor Relations Analyst Tel: +971 4 201 2628 Email: ChadenB@

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