Emirates NBD Digital Banking Innovation Update
Credit quality improving with market leading coverage
Highlights Income
Liquidity
Risk
Expenses Capital
Divisional
16
Impaired loans and allowances
6.2
6.3
6.4
6.1
5.8
37.1
37.2
37.9
37.7
37.9
29.2
29.2
29.5
28.3
26.6
133.3
126.7
128.5
127.5
Q3 21
Q4 21
Q1 22
Q2 22
Impaired Loans (AED Bn) *
Impairment Allowances (AED Bn)
Coverage ratio (%)
NPL Ratio (%)
Coverage by Stage*
142.6
Q3 22
Stagewise ECL (AED bn)
37.2
37.9
Stage 1
1.0%
22.2%
1.1 %
25.5%
3.8
4.4
Stage 1
Stage 2
6.9
7.6
Stage 2
Stage 3
97.2 %
90.6%
Stage 3
26.4
25.9
Key Highlights
NPL ratio improved by 0.3% to 5.8% in Q3-22 on continued strong
writebacks and recoveries
Coverage ratio strengthened 9.3% to 142.6% in Q3-22
S3 coverage increased to 97.2% as writeback and recoveries
reduced impaired loan balances
S2 coverage increased due to a movement in MEV assumptions
Strong coverage maintained as higher interest rates may create
challenges in future quarters
•
90 bps cost of risk for 9M'22 better than guidance at this point
Total Gross Loans
FY-21
Q3-22
FY-21
Q3-22
* Includes purchase originated credit impaired loans of AED 0.8 bn (Dec-21: AED 1bn) acquired at fair value / **Stage 3 coverage adjusted for POCI acquired at FV
Q3-22
AED 457bn
Stage 1
87.6%
86.8%
Stage 2
6.8%
6.6%
FY-21
AED 459bn 6.3%
Stage 3
5.8%
19View entire presentation