Emirates NBD Earnings Presentation
Credit Quality
Retail and Corporate Loans & Receivables
Corporate Credit Quality
Corporate credit quality remains satisfactory despite challenging
economic 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 has
long-standing relationships
Exposure is mainly to top tier names with diversified business
interests 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 with
underlying cash flows; and
without sacrificing interest or principal
Corporate & Sovereign Lending Portfolio
.
.
.
Real Estate & Contracting
Exposures to Real Estate and Contracting Sector are
USD 7.3b (16%) and USD 1.7b (4%) respectively
Selectively financing real estate sector; extent of finance is
generally 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
repayment
Repayment experience is satisfactory
Approximately 50% of the Real Estate portfolio has a
repayment maturity of < 3 years
By Sector(1)
100%
= USD 45.8b
Transport &
communicat
ion
Contracting
3%
4%
Manufacturi
Trade
4%
ng
5%
Others
6%
Sovereign
31%
Personal -
Corporate
6%
Real
Banks
estate
& Fls
16%
Services
9%
16%
"
Personal loans
Portfolio USD 2.0b (34%)
47% of value is to UAE
nationals; >60% of value is to
government employees
Personal loans are only granted
subject to salary assignment
Personal Loans losses well
within original expectations
No funding is given to applicants
working in the real estate,
contracting and hotel industries
2010 YTD delinquency trends
for over 90 days are decreasing;
entry rates into delinquency are
stable and trending downwards
Credit Cards
Portfolio USD 0.7b (12%)
Product with highest yield in
Retail Portfolio
90+ delinquencies better
than industry benchmarks
Measures taken to control
exposures on unutilised
limits
2010 YTD delinquency
trends improving
Retail Lending Portfolio
Car loans
Portfolio USD 0.5b (8%)
Portfolio balance has declined
from end-2009 due to
changes in credit policy
Minimum Income threshold
has been raised
Down payment of 10-20%
mandatory based on customer
profiles
2010 YTD delinquency trends
improving
Mortgages
Portfolio USD 1.1b (19%)
Only offered for premium
developers
Completed properties
account for 80% of the
portfolio
Average LTV is 75% on
original value
By Sector(1)
100% USD 5.9b
Others
Overdrafts 5%
7%
Car Loans
8%
Credit
"
> 75% of the customers
have only one loan from
Emirates NBD
Cards
12%
2010 YTD delinquency
trends improving
1) Loans and advances before provisions; Corporate & Sovereign Lending sectoral breakdown as per "Analysis by Economic Activity for Assets" in note 5 of the Q3 2010 Financial statements
Personal
Loans
34%
Time
Loans Mortgages
19%
15%
Emirates NBD
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