Only use the data for 2019 to solve it:

Questions:

- Using the information from income statement and balance sheet, calculate net

interest margin?

- Using the information from income statement and balance sheet, what will be the

earning base?

Consolidated statement of financial position As at 31 December Assets Note 2019 AED'000 2018 AED'000 Cash and balances with central banks Investments at fair value through profit or loss Due from banks and financial institutions Reverse repurchase agreements Derivative financial instruments Loans and advances Non-trading investments Investment properties Property and equipment Intangibles Other assets 8 9 10 11 40 12 13 14 15 16 17 169,702,008 20,099,181 17,026,502 24,678,375 15,917,321 407,903,028 114,644,422 7,956,854 4,618,986 19,498,087 19,923,251 182,908,727 14,620,910 19,176,092 19,033,451 13,084,192 352,966,420 90,433,574 7,388,493 3,991,215 19,699,711 20,583,602 Total assets 821,968,015 743,886,387 Liabilities Due to banks and financial institutions Repurchase agreements Commercial paper Derivative financial instruments Customer accounts and other deposits Term borrowings Subordinated notes Other liabilities 18 19 20 40 21 22 23 24 36,007,875 38,821,848 21,236,955 19,228,541 519,161,857 55,751,819 381,305 23,340,779 40,266,535 34,769,685 18,144,105 15,219,464 465,237,066 42,268,173 401,979 25,606,380 Total liabilities 713,930,979 641,913,387 25 Equity Share capital Share premium Treasury shares Statutory and special reserves Other reserves Tier 1 capital notes Share option scheme Retained earnings 25 26 27 10,920,000 53,434,461 (18,864) 10,920,000 2,474,032 10,754,750 249,816 18,872,367 10,897,545 53,188,043 (25,530) 9,483,238 (37,477) 10,754,750 266,841 17,083,868 Total equity attributable to shareholders of the Bank Non-controlling interest 107,606,562 430,474 101,611,278 361,722 Total Equity 108,037,036 101,973,000 Total liabilities and equity 821,968,015 743,886,387 Consolidated statement of profit or loss For the year ended 31 December Note 2019 AED'000 2018 AED'000 Interest income Interest expense 28 29 24,368,947 (11,594,145) 21,840,614 (8,810,445) Net interest income 12,774,802 13,030,169 Fee and commission income Fee and commission expense 4,730,688 (1,561,259) 4,879,988 (1,487,616) Net fee and commission income 30 3,169,429 3,392,372 Net foreign exchange gain Net gain on investments and derivatives Other operating income 31 32 33 2,600,978 1,506,277 197,571 2,042,480 826,225 154,496 Operating income 20,249,057 19,445,742 34 (5,498,991) (5,328,555) General, administration and other operating expense Profit before net impairment charge and taxation 14,750,066 14,117,187 Net impairment charge 35 (1,842,980) (1,725,794) Profit before taxation 12,907,086 12,391,393 Overseas income tax expense 36 (314,463) (325,004) Overseas income tax expense 36 (314,463) (325,004) Profit for the year 12,592,623 12,066,389 Profit attributable to: Shareholders of the Bank Non-controlling interests 12,520,203 72,420 12,010,820 55,569 12,592,623 12,066,389 Basic earnings per share (AED) 42 1.10 1.06 Diluted earnings per share (AED) 42 1.10 1.06 Earning assets are Investments at fair value, reverse repurchase agreements, Derivative financial instruments, loans and advances, and non-trading investments Non-interest income fee and commission income Non-interest expense = fee and commission expense Total Revenue (TR)= Total interest income + non-interest income + SG Where SG= net foreign exchange gains + net gain on investments and derivatives + other operating income Total Expenses = Interest Expense + fee and commission expense Non-interest expense fee and commission expense PLL= Please assume it ZERO. Consolidated statement of financial position As at 31 December Assets Note 2019 AED'000 2018 AED'000 Cash and balances with central banks Investments at fair value through profit or loss Due from banks and financial institutions Reverse repurchase agreements Derivative financial instruments Loans and advances Non-trading investments Investment properties Property and equipment Intangibles Other assets 8 9 10 11 40 12 13 14 15 16 17 169,702,008 20,099,181 17,026,502 24,678,375 15,917,321 407,903,028 114,644,422 7,956,854 4,618,986 19,498,087 19,923,251 182,908,727 14,620,910 19,176,092 19,033,451 13,084,192 352,966,420 90,433,574 7,388,493 3,991,215 19,699,711 20,583,602 Total assets 821,968,015 743,886,387 Liabilities Due to banks and financial institutions Repurchase agreements Commercial paper Derivative financial instruments Customer accounts and other deposits Term borrowings Subordinated notes Other liabilities 18 19 20 40 21 22 23 24 36,007,875 38,821,848 21,236,955 19,228,541 519,161,857 55,751,819 381,305 23,340,779 40,266,535 34,769,685 18,144,105 15,219,464 465,237,066 42,268,173 401,979 25,606,380 Total liabilities 713,930,979 641,913,387 25 Equity Share capital Share premium Treasury shares Statutory and special reserves Other reserves Tier 1 capital notes Share option scheme Retained earnings 25 26 27 10,920,000 53,434,461 (18,864) 10,920,000 2,474,032 10,754,750 249,816 18,872,367 10,897,545 53,188,043 (25,530) 9,483,238 (37,477) 10,754,750 266,841 17,083,868 Total equity attributable to shareholders of the Bank Non-controlling interest 107,606,562 430,474 101,611,278 361,722 Total Equity 108,037,036 101,973,000 Total liabilities and equity 821,968,015 743,886,387 Consolidated statement of profit or loss For the year ended 31 December Note 2019 AED'000 2018 AED'000 Interest income Interest expense 28 29 24,368,947 (11,594,145) 21,840,614 (8,810,445) Net interest income 12,774,802 13,030,169 Fee and commission income Fee and commission expense 4,730,688 (1,561,259) 4,879,988 (1,487,616) Net fee and commission income 30 3,169,429 3,392,372 Net foreign exchange gain Net gain on investments and derivatives Other operating income 31 32 33 2,600,978 1,506,277 197,571 2,042,480 826,225 154,496 Operating income 20,249,057 19,445,742 34 (5,498,991) (5,328,555) General, administration and other operating expense Profit before net impairment charge and taxation 14,750,066 14,117,187 Net impairment charge 35 (1,842,980) (1,725,794) Profit before taxation 12,907,086 12,391,393 Overseas income tax expense 36 (314,463) (325,004) Overseas income tax expense 36 (314,463) (325,004) Profit for the year 12,592,623 12,066,389 Profit attributable to: Shareholders of the Bank Non-controlling interests 12,520,203 72,420 12,010,820 55,569 12,592,623 12,066,389 Basic earnings per share (AED) 42 1.10 1.06 Diluted earnings per share (AED) 42 1.10 1.06 Earning assets are Investments at fair value, reverse repurchase agreements, Derivative financial instruments, loans and advances, and non-trading investments Non-interest income fee and commission income Non-interest expense = fee and commission expense Total Revenue (TR)= Total interest income + non-interest income + SG Where SG= net foreign exchange gains + net gain on investments and derivatives + other operating income Total Expenses = Interest Expense + fee and commission expense Non-interest expense fee and commission expense PLL= Please assume it ZERO