Credit Quality and Financial Performance
Credit Quality
Retail and Corporate Loans & Receivables
Corporate Credit Quality
Impaired loan ratio 9.4% at Q1 2011 vs. 9.2% at Q4 2010 and
1.0% 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 2.0 billion at Q4 2010 vs. USD 2.1
billion 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 6.8 billion (13%) and USD 1.4 billion (3%) 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 54% of the Real Estate portfolio has a
repayment maturity of < 3 years
Transport &
communicat.
By Sector(1)
100%
= USD 44.7b
ion
Contracting
3%
3%
Manufacturi
Trade
4%
ng
4%
Others
5%
Personal -
Corporate
6%
Sovereign
33%
Banks
Real
Services
11%
& Fls
16%
estate
15%
"
Personal loans
Portfolio USD 1.8 billion (31%)
53% 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 delinquency trends for over
90 days are decreasing; entry
rates into delinquency are stable
and trending downwards
"
Credit Cards
Portfolio USD 703 million
(12%)
Product with highest yield in
Retail Portfolio
90+ delinquencies better
than industry benchmarks
Measures taken to control
exposures on unutilised
limits
2010 delinquency trends
improving
Retail Lending Portfolio
Car loans
Portfolio USD 484 million (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 delinquency trends
improving
Mortgages
Portfolio USD 1.1 billion
(19%)
Only offered for premium
developers
Completed properties
account for 86% of the
portfolio
Average LTV is 75% on
original value
By Sector(1)
100% USD 5.8b
Others
Overdrafts 5%
9%
Car Loans
8%
Personal
Loans
31%
Credit
"
> 75% of the customers
have only one loan from
Emirates NBD
2010 delinquency trends
improving
Cards
12%
Time Mortgages
Loans
19%
16%
1) Loans and advances before provisions; Corporate & Sovereign Lending sectoral breakdown as per "Analysis by Economic Activity for Assets" in note 5, page 11 of the Q1 2011 Financial statements
Emirates NBD
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