Emirates NBD Financial Performance Q1 2020
Impairment allowances and Stage 1, 2 and 3 Coverage
Highlights
Stage 1 coverage ratio improved to 1.2% from 1.1% in Q1-20 as Stage 1
impairment allowances increased to USD 1.4 bn from USD 1.3 bn
Stage 2 coverage ratio improved to 19.3% from 15% in Q1-20 as Stage 2
impairment allowances increased to USD 1.3 bn from USD 1.0 bn
.
Continued strong Stage 3 coverage ratio at 89.3%
.
Customers continue to be assessed closely for stage migrations on a
case by case basis under the COVID-19 situation
The Group has re-assessed scenario weighting to reflect the impact of
current uncertainty in measuring ECLs across portfolios and also applied
additional adjustments for retail exposures to employees of specific
industries most impacted due to COVID-19 such as airlines, hospitality,
retail and tourism
The increase in the downside weighting of the macro-economic scenario
and the management overlays have resulted in an additional ECL of
USD 239 million for the Group
The Group has used expert judgement where required to assess the
overlays and will continue to reassess the position and related impact on
a regular basis.
Impairment allowances and Coverage %
Stage 1
Stage 2
Stage 3
ECL Allowances (USD Bn)
*ECL to Loan Coverage %
8.6
1.1
8.0
1.2
1.4
15.0
19.3
1.3
1.3
1.0
90.4
89.3
5.7
5.8
2019
Q1 2020
2019
Q1 2020
Total Gross Loans (USD Bn)
2019
Q1 2020
*Stage 3 coverage adjusted for purchase originated credit impaired loans acquired at fair value
5%
5%
89%
89%
6%
6%
Stage 1
Stage 2
Stage 3
Financial & Operating Performance
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