24 February 2011
Disclosure type : Annual Report

Audit state : Audited

Report for period ended : Friday, December 31, 2010 12:00 AM 

Results Highlights

Total income for 2010 of AED 9.7 billion, down 10% compared with 2009

  • Net interest income for the year of AED 6.8 billion, down 8% versus 2009

  • Non-interest income for 2010 of AED 2.9 billion, down 13% compared with 2009

Cost rationalisation initiatives proved successful:

  • Operating expenses of AED 3.1 billion in 2010, a 14% improvement from 2009 across both staff and non-staff costs

  • Improved cost to income ratio of 31.4% for the year (2009: 32.9%)

Credit quality pro-actively managed and underlying trends remain within expectation:

  • Required specific provisions for Dubai World exposure made in full during 2010

  • Prudent addition to portfolio impairment allowances of AED 335 million in 2010, taking total portfolio impairments to AED 2.2 billion

Excellent progress on balance sheet optimisation initiatives:

  • Customer deposits at AED 200.0 billion, up 10% from AED 181.2 billion at the previous year-end

  • Customer loans at AED 197.1 billion, down 8% from AED 214.6 billion at the end of 2009

  • Headline loan to deposit ratio of 99% as at 31 December 2010 compared with 118% at end-2009

  • Capital adequacy ratio further strengthened to 20.1% compared with 18.7% at the end of 2009

Net profit in 2010 of AED 2.3 billion, down 30% from the previous year

Earnings per Share of AED 0.37 for the year ended 31 December 2010 (2009: 0.58)

Cash dividend of AED 0.20 per share proposed

-Ends-

© Press Release 2011