Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — FY2022 Earnings Presentation
33 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, March 2023
Slide 1: Investor Presentation | FY-2022
Investor Presentation | FY-2022 March 2023 1
Slide 2: Important Information
Important Information Disclaimer that could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or implied in the forward- The material in this presentation is general background information about looking statements. Emirates NBD's activities current
Slide 3: Emirates NBD Profile
Emirates NBD Profile (ements)
Slide 4: Emirates NBD is a leading bank in the MENAT Region
Emirates NBD is a leading bank in the MENAT Region Key Highlights AED AED AED AED as of December 13.00 742bn 503bn 456bn 2022 Share Price Assets Total Deposits Total Loans As of 26 Jan 2023 As of 31 Dec 2022 As of 31 Dec 2022 As of 31 Dec 2022 879 17 million + 13 35K+ 29K+ 56% Branches customers Cou
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Key Highlights Emirates NBD’s International Presence 1. Largest financial institution in Dubai, 670 Turkey 4th largest in the GCC 13 Austria 2. Leading retail banking franchise with a branch network of 879 branches throughout the 7 Germany MENAT region with operations in 13
Slide 6: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Overview Key Digital Developments digital bank by Emirates NBD further strengthened its • 90% of all face-to-face card payment transactions now ‘contactless’ proposition growing its customer base to more than 660,000 through Mobile wallet customers in UAE & K
Slide 7: ESG Performance – Key developments
ESG Performance – Key developments 1. First female director elected to the Board in February 2022. 2. First UAE banking Group to commit to female leadership target, aiming for 25% women in senior management by 2027 3. Denizbank ranked top among Turkish private banks with 38% market share in agricult
Slide 8: ESG Finance and Investment
EmCap raised sustainable Raised first Sustainability- capital from 20 syndicated linked loan from a bank loan and debt capital from the Gulf region: market transactions in 2022 for clients in UAE, • KPI 1: Women in Senior Saudi Arabia, India, China, Management Singapore and Turkey • KPI 2: Reduction
Slide 9: Stable Shareholder Base and Diversified Business Model
Stable Shareholder Base and Diversified Business Model Split of Ownership – Anchored by the Government of Dubai Key Highlights Ownership structure as of 31 December 2022 • A flagship bank for the Government of Dubai and the UAE Others • Strong and supportive shareholder base from the Government of D
Slide 10: Emirates NBD is a national champion, one of the two largest banks in the UAE
Emirates NBD is a national champion, one of the two largest banks in the UAE Total Income Net Profit Total Gross Loans Coverage Ratio & NPLs (%) CET-1 Ratio (%) In AED mn In AED mn In AED bn FY 2022 As of 31 December 2022 NPL% As of 31 December 2022 32,507 13,411 480 191 2.2 15.4 23,934 13,010 456 1
Slide 11: Economic Environment
Economic Environment (ements)
Slide 12: UAE economy rebounding with 7.6% growth in 2022 and 3.9% expected in 2023
UAE economy rebounding with 7.6% growth in 2022 and 3.9% expected in 2023 UAE GDP Growth Key Highlights 8.0 % y/y 7.6 3.9 3.9 4.0 2.4 • The Dubai PMI remained robust at 54.5 in January 2023 1.2 1.1 • International visitors reached 14.4 mn, almost double from 2021 total of 7.3 mn 0.0 • Dubai GDP grew
Slide 13: Dubai: Positioning for future growth
Dubai: Positioning for future growth Key contributors of Dubai GDP Key Highlights Trade 24.1 Other 14.8 • The Dubai PMI remained robust at 54.5 in January 2023 Transport 11.7 Financial Services 10.7 • International visitors reached 14.4 mn, almost double from 2021 total of 7.3 mn Manufacturing 9.3 •
Slide 14: UAE experiences strong population growth in 2022
UAE experiences strong population growth in 2022 Dubai private school enrollments Mobile subscriptions (H1 2022) 350 20 Thousands 12.8% 326 Active Mobile Subscriptions prepaid postpaid 15 300 289 288 276 275 10 267 260 252 250 242 5 231 % y/y 212 0 200 -5 -10 150 -15 100 -20 Sep-12 Sep-14 Sep-16 Sep
Slide 15: Financial & Operating Performance
Financial & Operating Performance
Slide 16: Executive Summary FY 22 Results
Executive Summary FY 22 Results Key Metrics and Guidance Key Highlights Net Profit Income NIM Income 36% higher AED 13 bn AED 32.5 bn 3.43% Strong momentum continues with driven by improved Guidance 2022: 3.2-3.3% AED 13 bn profit loan & deposit mix +40% +36% 2023: 3.8-4.0% up 40% in 2022 coupled wi
Slide 17: Consistently profitable due to diversified and resilient business model
Consistently profitable due to diversified and resilient business model Return on Average Tangible Equity (excluding 2019 NI gain) 9% 11% 16% 20% 18% 19% 20% 17% 10% 13% 17% Total Income CAGR (12-22): 12% 32.5 Net Profit CAGR (12-22): 17% 23.2 23.8 22.4 17.4 15.2 14.7 15.4 14.4 14.5 13.0 11.8 4.4 10
Slide 18: Emirates NBD's profit rises 40% YoY to AED 13 bn on strong diversified income growth
Emirates NBD’s profit rises 40% YoY to AED 13 bn on strong diversified income growth Excluding DenizBank Key Highlights Income Statement FY 22 FY 21 %∆ YoY FY 22 %∆ YoY FY 22 %∆ YoY • Group profit up 40% on strong diversified income growth (All figures are in AED bn) – ENBD income higher from improv
Slide 19: Quarterly profits again exceed US$ 1bn equivalent
Quarterly profits again exceed US$ 1bn equivalent Income Statement (All figures are in AED bn) Q4-22 Q4-21 %∆ YoY Q3-22 %∆ QoQ Key Highlights Net interest income 7.7 4.3 78% 6.1 27% Non-funded income 2.1 2.2 (3)% 2.4 (12)% • Continued strong performance in Q4-22 with net profit again exceeding US$1
Slide 20: Higher NIM guidance as interest rates rises feed through
Higher NIM guidance as interest rates rises feed through Net Interest Margin (%) 4.40 Key Highlights Quarterly NIM YTD NIM • FY22 NIM improved 90 bps y-o-y due to interest rate rises and higher 3.57 3.43 DenizBank NIMs 3.09 2.82 2.89 • Q4-22 NIM up 83 bps q-o-q on improved loan and deposit mix and h
Slide 21: Non-funded Income
Non-funded Income Non-funded income (All figures are in AED bn) FY-22 FY-21 %∆ YoY Key Highlights Fee and Commission income 7,004 6,475 8% • Healthy trend in fee and commission income, 8% higher y-o-y from increased local and international retail card business at both ENBD and DenizBank and Fee and
Slide 22: Improving loans and deposit mix
Improving loans and deposit mix Gross Loans by Type (All figures are in AED bn) Key Highlights -1% 459 463 463 457 456 • Gross lending ex. Sovereign grew up 12% (AED 36 bn) in FY22 DenizBank - Retail lending up 12% (AED 7 bn) with strong demand across all products 65 65 66 66 69 EI 47 50 52 - Corpor
Slide 23: Credit quality improving with market leading coverage
Credit quality improving with market leading coverage Impaired loans and allowances (All figures are in AED bn) Key Highlights 6.3 6.4 6.1 5.8 6.0 • NPL ratio improved by 0.3% to 6.0% in 2022 on continued strong writebacks 37.2 37.9 37.7 37.9 39.4 and recoveries 29.2 29.5 28.3 26.6 • Coverage ratio
Slide 24: Costs firmly controlled, focus on future growth
Costs firmly controlled, focus on future growth Cost to Income Ratio (%) Key Highlights 34.8 • FY22 cost to income ratio at 28.5% within guidance reflecting stronger 33.5 30.8 income enabling accelerated investment for growth 28.7 29.1 • Staff costs increased y-o-y on incentives to drive underlying
Slide 25: Funding & Liquidity remains very healthy
Funding & Liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 180 ADR % LCR % 182 178 100 • LCR of 182% and ADR of 82% demonstrate healthy liquidity 160 96 • Liquid assets* of AED 75 billion cover 12% of total liabilities, 15% of deposits 157 155 152 •
Slide 26: Capital ratios remain solid
Capital ratios remain solid Capital 91.2 (All figures are in AED bn) 76.6 Key Highlights 67.5 • CET-1 ratio improved by 0.3% to 15.4% during 2022 as AED 8.9 bn of net earnings after proposed dividend more than offset 12% increase in RWAs • Capital ratios well above 11% / 12.5% / 14.5% CBUAE min. req
Slide 27: Divisional Performance
Divisional Performance Operating Segment Metrics FY22 %∆ YoY Key Highlights Income (mn) 10,234 27% Retail Banking and Wealth Management 2,702 21% • Strong loan growth in 2022 with Loan origination up 39%, Credit Card acquisitions up 100% and Expense (mn) Retail Banking and Card spends up 31 % y-o-y
Slide 28: Appendix
Appendix (ements)
Slide 29: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights +156% 64% • Loss on net monetary position for DenizBank was AED 3.1 bn for 2022 • AED 3.1 bn debit P&L charge with corresponding credit offset to OCI making it 1,128 1,047 56% 978 capital neutral 844 687 1.0 (1.3) 571 547 (0.2) 524 505 4.7 4
Slide 30: Income Statement
Income Statement Excluding DenizBank Income Statement FY 22 FY 21 %∆ YoY FY 22 FY 21 %∆ YoY FY 22 FY 21 %∆ YoY (All figures are in AED bn) Net interest income 23.2 16.9 37% 15.7 11.7 34% 7.6 5.3 43% Non-funded income 9.3 6.9 35% 6.3 5.1 22% 3.0 1.8 70% Total income 32.5 23.8 36% 21.9 16.8 31% 10.6 7
Slide 31: Emirates NBD's profit rises 40% YoY to USD 3.5 bn
Emirates NBD’s profit US$ convenience rises 40% YoY to USD 3.5 bn translation on strong diversified income growth Excluding DenizBank Income Statement FY 22 FY 21 %∆ YoY FY 22 %∆ YoY FY 22 %∆ YoY (All figures are in USD bn) Net interest income 6.3 4.6 37% 4.3 34% 2.1 43% Non-funded income 2.5 1.9 35
Slide 32: US$ convenience translation
US$ convenience translation Income Statement Q4-22 Q4-21 %∆ YoY Q3-22 %∆ QoQ (All figures are in USD bn) Net interest income 2.1 1.2 78% 1.7 27% Non-funded income 0.6 0.6 (3)% 0.7 (12)% Total income 2.7 1.8 50% 2.3 16% Operating expenses (0.8) (0.6) 26% (0.6) 23% Pre-impairment operating profit 1.9
Slide 33: 33
33