Key Insights into

Emirates NBD
BY:
Sankalp Khanna (SMBA09062)
Tarun Baijnath (SMBA09075)
Largest financial institution (by asset size) in the GCC

56% owned by Dubai government

Fully fledged, diversified financial services offering

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

Ever increasing presence in the UAE, the GCC and globally

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

Flagship bank for Dubai and the UAE

Governments

9
 UAE Ranking by Assets (USD billion) UAE Ranking by Equity (USD billion) UAE Ranking by Profits (USD million)
(1)
Emirates NBD 76.7 Emirates NBD 7.0 Emirates NBD 910

NBAD 53.6 First Gulf Bank 6.2 First Gulf Bank 901

ADCB NBAD 5.6 NBAD 822

43.6
First Gulf Bank 34.2 ADCB 5.2 DIB 327
Mashreq 25.8 Mashreq UNB 315
3.1
DIB 23.0 DIB Mashreq 272
2.4
UNB 20.6 UNB CBD
2.3 219
ADIB 17.4 ADIB ADIB
1.9 21
CBD CBD ADCB
10.0 1.5 -140

GCC Ranking by Assets (USD billion) GCC Ranking by Equity (USD billion) GCC Ranking by Profits(2) (USD million)
Emirates NBD 76.7 NCB 7.8 Al Rajhi Bank 1,804
NCB 68.6 Al Rajhi Bank 7.7 Samba 1,216
NBAD 53.6 Riyad Bank 7.5 QNB 1,154
(1)
Samba 49.5 Emirates NBD 7.0 NCB 1,077
QNB 49.2 KFH 7.0 NBK 924
Riyad Bank 47.0 NBK 6.4 Emirates NBD 910
Al Rajhi Bank 45.5 FGB 6.2 First Gulf Bank 901
NBK 45.0 Samba 6.0 NBAD 822
ADCB 43.6 NBAD 5.6 Riyad Bank 808
KFH 39.3 QNB 5.5 Banque Saudi Fransi 659
Credit Quality
Retail and Corporate Loans & Receivables

Corporate & Sovereign Lending Portfolio

By Sector(1)
Corporate Credit Quality Real Estate & Contracting
100% = USD 45.8b
• Corporate credit quality remains satisfactory despite challenging • Exposures to Real Estate and Contracting Sector are
economic environment USD 7.3b (16%) and USD 1.7b (4%) respectively Transport &
communicat Contracting
• NPL ratio 1.96% at Q3 2010 vs.0.97% at Q4 2009 • Selectively financing real estate sector; extent of finance is ion
generally limited to: 4% 3%
• 97% of the portfolio is to UAE customers where the Bank has Trade
long-standing relationships – 70% of construction cost excluding land; and 4%
• Exposure is mainly to top tier names with diversified business – land and cost overruns to be financed by the owner Manufacturi
ng
interests and multiple sources of repayment Real Estate financing is restricted to Emirates of Dubai &
• 5%
• Environment necessitates renegotiation of certain customer Abu Dhabi Others Sovereign
accounts; amounting to USD 2.0b vs. USD 2.1b at Q4 2009: • Exposures to these sectors are mainly to diversified 6% 31%
– these reflect renegotiated repayment terms in line with businesses having multiple repayment sources of
underlying cash flows; and repayment Personal -
Corporate Real
– without sacrificing interest or principal • Repayment experience is satisfactory 6% Banks estate
• Approximately 50% of the Real Estate portfolio has a & FIs 16%
repayment maturity of < 3 years Services 16%
9%

Retail Lending Portfolio

Personal loans Credit Cards Car loans Mortgages
By Sector(1)
 Portfolio USD 2.0b (34%)  Portfolio USD 0.7b (12%)  Portfolio USD 0.5b (8%)  Portfolio USD 1.1b (19%) 100% = USD 5.9b
 47% of value is to UAE  Product with highest yield in  Portfolio balance has declined  Only offered for premium
Retail Portfolio from end-2009 due to developers Others
nationals; >60% of value is to Overdrafts 5%
government employees changes in credit policy  Completed properties
 90+ delinquencies better 7%
 Personal loans are only granted than industry benchmarks  Minimum Income threshold account for 80% of the
subject to salary assignment has been raised portfolio Car Loans
 Measures taken to control Average LTV is 75% on 8%
 Personal Loans losses well  Personal
exposures on unutilised  Down payment of 10-20% original value Loans
within original expectations limits mandatory based on customer Credit
No funding is given to applicants profiles  > 75% of the customers Cards 34%
  2010 YTD delinquency have only one loan from
working in the real estate, trends improving 2010 YTD delinquency trends 12%
 Emirates NBD Time
contracting and hotel industries improving
2010 YTD delinquency Loans Mortgages
 2010 YTD delinquency trends  15% 19%
for over 90 days are decreasing; trends improving
 Key Focus in 2010
• Optimizing Balance Sheet by proactively
managing liquidity. :
 Improvement in customer Deposit Base
 Reduction in the Asset Book.

• Enhancing operating efficiency, driving

profitability and enhancing risk management.

• Reduction in the overall cost position by 14%.

 BUSINESS
SEGMENTS
PROPERTY
MANAGEMENT

EQUITY BROKING CORPORATE

SERVICES€ BANKING

CONSUMER
ASSET MANAGEMENT
BANKING

INVESTMENT TREASURY
BANKING ACTIVITIES

CARDS PROCESSING
ISLAMIC BANKING
 Financial Statement Analysis
• Operating Activities – 1.09%
 Impairment of Losses - 2.60%
 Revaluating Investment Properties - 1.08%

• Earning assets in the year 2010 - 7.78%

•
 ASSETS - LIABILIT - EQUITY BREAK UP
180000000

160000000

140000000

120000000

100000000 ASSETS 2009

LIABILITIES AND EQUITY 2009
80000000 ASSETS 2010
LIABILITIES AND EQUITY 2010
60000000

40000000

20000000

0
CORPORATE CONSUMER TREASURY ISLAMIC CARDS OTHERS
BANKING BANKING BANKING PROCESSING
 cards processing others
4% 2%
CARDS PROCESSING OTHERS islamic banking
0% 5% 8%
ISLAMIC BANKING treasury
10% corporate banking
7% 45%
TREASURY
1% CORPORATE BANKING
48%

CONSUMER BANKING consumer banking

35% 34%

NET INTEREST INCOME 2010 OPERATING INCOME 2010

CARDS PROCESSING OTHERS OTHERS

0% 5% 7%
ISLAMIC BANKING
CARDS PROCESSING
9% 3%
TREASURY ISLAMIC BANKING
3%
8% CORPORATE BANKING
45%
CORPORATE BANKINGTREASURY
48% 5%
CONSUMER BANKING
31%

CONSUMER BANKING
35%

NET INTEREST INCOME 2009 OPERATING INCOME 2009

 KEY RATIO’S

KEY RATIOS 2010 2009

ROA 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%

 CAPITAL MANAGEMENT
RISK WEIGHTED
CAPITAL 2010 ('000's) 2009 ('000's) 2010 (000's) 2009 (000's)
EXPOSURE
   
CORPORATE BANKING 141,801,149 154551077
TIER I CAPITAL 27,692,080 26,653,945
   
CONSUMER BANKING 20,485,003 21,557,787
   
TIER II CAPITAL 15,868,351 15,178,143 TREASURY 13,550,903 17,274,597
   
OTHERS 8,951,864 7,796,846
TOTAL ELIGIBLE    
CAITAL 43560431.00 41,832,088
TOTAL 184,788,919 201180307

Contd….
 CAPITAL MANAGEMENT
CAPITAL 2010 ('000's) 2009 ('000's)
 KEY RATIO 2010 2009

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

CAR 23.57% 20.79%

MARKET RISK 281,968 317,082    

TIER I CAPITAL 14.99% 13.25%

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

TOTAL CAPITAL
26,062,388 22,389,783
REQUIREMENT TIER II CAPITAL 8.59% 7.54%
 Growth Factors in 2011
Businesses
the UAE, using
r Expansion into
Middle East. The
oss sectors such
state & Retail

ginning to rise
th is starting to
o environment
version eases

ntinue to rise to
nal and fiscal
astructural
enditures.

he Middle East
igns of thawing
time offering
that are highly
on comes under
t grade.