Emirates NBD

8/7/2019 Emirates NBD

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Key Insights into

Emirates NBDBY:

Sankalp Khanna (SMBA09062)

Tarun Baijnath (SMBA09075)



9

Largest financial institution (by asset size) in the GCC

Flagship bank for Dubai and the UAEGovernments

56% owned by Dubai government

Consistently profitable; the No.1 bank in the UAE by income and net profits

Fully fledged, diversified financial services offering

Ever increasing presence in the UAE, the GCC and globally

Well positioned to grow and deliver outstanding value to its shareholders, customers, andemployees



Contracting3%

Manufacturi

34%

Sovereign31%

Realestate

16%

Banks& FIs16%

Personal -Corporate

6%

Services9%

Others6%

Credit QualityRetail and Corporate Loans & Receivables

Corporate & Sovereign Lending Portfolio

By Sector (1)

100% = USD 45.8b

Transport &communication4%

Trade4%

ng5%

Retail Lending Portfolio

By Sector (1)

100% = USD 5.9bOthers

Overdrafts 5%7%

Car Loans8%

PersonalLoans

CreditCards12%

TimeLoans Mortgages15% 19%

Personal loansPortfolio USD 2.0b (34%)

47% of value is to UAEnationals; >60% of value is togovernment employeesPersonal loans are only grantedsubject to salary assignment

Personal Loans losses wellwithin original expectations

No funding is given to applicantsworking in the real estate,contracting and hotel industries2010 YTD delinquency trendsfor over 90 days are decreasing;

Credit CardsPortfolio USD 0.7b (12%)

Product with highest yield inRetail Portfolio

90+ delinquencies better than industry benchmarks

Measures taken to controlexposures on unutilisedlimits2010 YTD delinquencytrends improving

Car loansPortfolio USD 0.5b (8%)

Portfolio balance has declinedfrom end-2009 due tochanges in credit policy

Minimum Income thresholdhas been raised

Down payment of 10-20%mandatory based on customer

profiles2010 YTD delinquency trendsimproving

MortgagesPortfolio USD 1.1b (19%)

Only offered for premiumdevelopersCompleted propertiesaccount for 80% of the

portfolio

Average LTV is 75% onoriginal value> 75% of the customershave only one loan fromEmirates NBD2010 YTD delinquencytrends improving

Corporate Credit QualityCorporate credit quality remains satisfactory despite challengingeconomic environment

NPL ratio 1.96% at Q3 2010 vs.0.97% at Q4 2009

97% of the portfolio is to UAE customers where the Bank haslong-standing relationshipsExposure is mainly to top tier names with diversified businessinterests and multiple sources of repayment

Environment necessitates renegotiation of certain customer accounts; amounting to USD 2.0b vs. USD 2.1b at Q4 2009:

±

±

these reflect renegotiated repayment terms in line withunderlying cash flows; andwithout sacrificing interest or principal

Real Estate & ContractingExposures to Real Estate and Contracting Sector areUSD 7.3b (16%) and USD 1.7b (4%) respectivelySelectively financing real estate sector; extent of finance isgenerally 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 repaymentRepayment experience is satisfactory

Approximately 50% of the Real Estate portfolio has arepayment maturity of < 3 years



Key Focus in 2010

O ptimizing Balance Sheet by proactivelymanaging liquidity. :

Improvement in customer Deposit Base

Reduction in the Asset Book.

Enhancing operating efficiency, drivingprofitability and enhancing risk management.

Reduction in the overall cost position by 14%.



BUSINESSSEGMENTS

CORPORATEBANKING

CONSUMERBANKING

TREASURYACTIVITIES

ISLAMICBANKING

CARDSPROCESSING

INVESTMENTBANKING

ASSETMANAGEMENT

EQUITYBROKINGSERVICES

PROPERTYMANAGEMENT



Financial Stat e m ent A n al y sisO perating Activities 1.09%

Impairment of Losses - 2.60%

Revaluating Investment Properties - 1.08%

Earning assets in the year 2010 - 7.78%



0

20000000

40000000

60000000

80000000

10000000

12000000

14000000

16000000

18000000

CO RPO RATEBANKING

CO NSUMERBANKING

TREASURY ISLAMICBANKING

CARDSPRO CESSING

O THERS

ASSETS 2009

LIABILITIES AND EQUITY 2009

ASSETS 2010

LIABILITIES AND EQUITY 2010

ASSETS - LIABILIT - EQUITY BREA K UP



CO RPO RATEBANKING

48%

CO NSUMERBANKING

35%

TREASURY3%

ISLAMIC BANKING9%

CARDSPRO CESSING

0%

O THERS5%

NET INTEREST INCOME 2009

CO RPO RATEBANKING

48%CO NSUMER

BANKING35%

TREASURY1%

ISLAMIC BANKING11%

CARDSPRO CESSING

0%

O THERS5%

NET INTEREST INCOME 2010

corporate

banking45%

consumerbanking

34%

treasury7%

islamic banking8%

cardsprocessing

4%others

2%

OPERATING INCOME 2010

CO RPO RATE

BANKING45%

CO NSUMERBANKING

31%

TREASURY

6%

ISLAMICBANKING

8%

CARDSPRO CESSING

3%

O THERS7%

OPERATING INCOME 2009



KE Y RATIO·S

KE TI S 2010 2009

0.82% 1.19%

ROE 9.40% 10.55%

RATE PAID ON FUNDS 1.72% 1.85%

NIM 3.22% 3.15%

LOANS TO ASSETS 68.86% 76.22%



C API T AL M A N AG EMENT

CAPITAL 2010 ('000's) 2009 ('000's)

CREDIT RISK 24,128,905 20,758,635

MARKET RISK 281,968 317,082

OPERATIONAL RISK 1,651,515 1,314,066

TOTAL CAPITAL

REQUIREMENT26,062,388 22,389,783

KEY RATIO 2010 2009

CAR 23.57% 20.79%

TIER I CAPITAL 14.99% 13.25%

TIER II CAPITAL 8.59% 7.54%

Emirates NBD

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