Emirates NBD Earnings Presentation
Capital Adequacy
Highlights
Capital Ratios - Basel II (USD billion)
Capital adequacy ratio at 20.1% in Q3 2010 vs. 18.7% in Q4 2009
■ Tier 1 ratio increased from 11.9% in Q4 2009 to 12.8% in Q3 2010 as
profit generation for the period exceeded the FY 2009 dividend
payment
■ Tier 2 capital increased to USD 4.3b vs. USD 4.1b in Q4 2009 mainly
due to positive Cumulative Changes in FV and additional recognition of
PIP and MOF deposits as Tier 2, partially offset by redemption of Tier 2
securities
■ Risk Weighted Assets (RWAs) declined by 4% from end-2009 levels
18.7%
19.6%
19.4%
20.1%
10.5%
11.9%
12.4%
12.4%
12.8%
8.4%
11.4
11.9
11.5
11.7
6.9
4.1
4.3
4.2
4.3
1.3
7.3
7.5
7.3
7.4
5.5
2008
2009
Q1 10
Q2 10
Q3 10
T2
T1
-T1 %
CAR %
Note: Core Tier 1 ratio was 10.9% as at end-Q2 10 compared with 10.1% at end-2009
Risk Weighted Assets - Basel II (USD billion)
Capital Movement Schedule - Basel II
Q4 2009 to Q3 2010 (USD million)
Tier 1
Tier 2
Total
65.7
61.0
60.7
2.9
59.4
58.3
Capital as at 31.12.09
7,258
4,133
11,391
3.6
3.7
1.4
3.7
3.7
0.9
Net profits generated
527
527
0.7
0.5
0.7
FY 2009 Dividend paid
(303)
(303)
61.4
Recognition of MOF deposits as T2 capital
1
105
105
56.5
56.3
55.2
53.9
Interest on T1 securities.
(53)
53
(53)
Cumulative changes in FV
45
45
Redemption of T2 securities
2008
2009
Q1 10
Credit Risk
■Market Risk
Q2 10
Operational Risk
Q3 10
Other
(122)
(122)
19
100
119
Capital as at 30.09.2010
7,448
4,261
11,709
Emirates NBD
20
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