Emirates NBD Earnings Presentation
Operating Costs and Efficiency
Highlights
■ The headline cost to income ratio improved by 2.6% from 33.5% in
2009 to 30.9% in Q3 2010 YTD
■ The core cost to income ratio improved by 3.4% from 35.5% in
2009 to 32.1% in Q3 2010 YTD
■
Quarter-on-quarter trends in operating costs:
- Q3 2010 vs. Q2 2010: 3% deterioration as Q2 2010 benefited from
accrual reversals; underlying trend improved by 3%
- Q2 2010 vs. Q1 2010: 18% improvement; underlying trend 13%
improvement excluding accrual reversal in Q2 2010
Year-on-year trends in operating costs:
- Q1 2010 vs. Q1 2009: 5% improvement
-
- Q2 2010 vs. Q2 2009: 20% improvement; underlying trend 16%
improvement
- Q3 2010 vs. Q3 2009: 17% improvement
Cost to Income Ratio Trends (1)
Cost:income ratio
Core cost:income ratio
38.3
35.3
37.6 37.1
36.3
39.0 38.9
35.7
38.2
38.3
35.7 35.4 35.5
37.6 37.4
34.1
35.8 38.5
33.0
34.9
32.1
33.9
33.5
32.8
32.4
32.4
30.9
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
Operating Cost Trends (USD million)
Quarter-on-Quarter Trend
Year-on-Year Trend
249
243
240
249
236
243
236
240
194
199
194
199
2009
1) Cost to income ratios are presented on a year-to-date basis; Core cost to income ratio excludes impact of Investment Properties and Investment/CDS income
Emirates NBD
2010
Q1
Q2
Q3
2009 2010
■Q1 Q2 Q3
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