Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q3 2017 Earnings Presentation
30 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, December 2017
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation December 2017
Slide 2: Important Information
2 Important Information Disclaimer The material in this presentation is general background information about the activities of Emirates NBD Bank PJSC (Emirates NBD), current at the date of this presentation, and believed by Emirates NBD to be accurate and true. It is information given in summary for
Slide 3: UAE Economic Update
Operating Environment 3 UAE Economic Update Highlights Real GDP growth forecasts • Oil production increased further in Q3-17, slightly above the target 2013 2014 2015 2016 2017F 2018F agreed with OPEC. We have assumed compliance with the targets S. Arabia 2.7 3.7 4.1 1.7 0.5 2.5 in H2-17 and Q1-18 i
Slide 4: Dubai Economic Update (1/3)
Operating Environment 4 Dubai Economic Update (1/3) Highlights Composition of Dubai GDP • The Emirates NBD Dubai Economy Tracker Index increased Dubai GDP by Sector (%) – Q1-17 slightly to 55.6 in October from 55.2 in September • Dubai’s economy expanded 3.2% y-o-y in Q1-17. Hospitality Others 22% T
Slide 5: Dubai Economic Update (2/3)
Operating Environment 5 Dubai Economic Update (2/3) Highlights Dubai Airports passenger traffic • Passenger traffic at the Dubai International Airport (DXB) rose to 70 million people million tons 2000 66.6mn in Jan-Sep 2017, up 5.8% y/y. Cargo volume was up 3.4% y/y over the same period last year 60
Slide 6: Dubai Economic Update (3/3)
Operating Environment 6 Dubai Economic Update (3/3) Highlights Residential Property Price • Apartment price declined -2.8% y/y in October compared with 350 -7.1% y/y in January. Villa prices fell -14.9% y/y in October 300 • Overall transaction volumes have fallen -16.0% y/y in Jan-Oct 250 2017, comp
Slide 7: UAE Banking Market Update
Operating Environment 7 UAE Banking Market Update Highlights Bank deposit and loan growth • Money supply (M2) slowed to 4.7% in September compared with AD ratio (RHS) Bank deposits (% y/y) Bank Loans (% y/y) 18% 110% 5.2% y/y in August 16% • Bank deposits increased by AED 97.2 bn and 6.4% y/y to AED
Slide 8: Emirates NBD at a glance
Operating Environment 8 Emirates NBD at a glance A leading bank in the region Largest branch network in the UAE • Market share in the UAE (as at 30 September 2017) Dubai 105 Ras al-Khaimah (4) Abu Dhabi 27 - Assets 17.4%; Loans 19.2%; Deposits 20.2% Sharjah 18 Umm al-Quwain (2) • Leading retail bank
Slide 9: Emirates NBD is the regional leader in digital innovation
Operating Environment 9 Emirates NBD is the regional leader in digital innovation 2012 2015 Introduced Direct Remit to Introduced New Pakistan Remit to ENBD Pay Dynamic IVR Pak in just 60 secs NFC based mobile contactless payment service Introduced Inaugurated Started Direct Remit to FutureLab multi
Slide 10: Emirates NBD is one of the largest banks in the GCC
Operating Environment 10 Emirates NBD is one of the largest banks in the GCC x% 2016 vs. 2015 Operating Income Net Profit * Loans Total Deposits USD Bn, 2016 USD Bn, 2016 USD Bn, 2016 USD Bn, 2016 Emirates NBD Profile 6.3 45% 3.4 10% 143 34% 139 28% 4.9 6% 2.5 79 7% 3% 85 8% Financial & Operating Pe
Slide 11: Profit and Balance Sheet Growth in Recent Years
Operating Environment 11 Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Profits (AED Bn) Revenues Costs Pre-Provision Operating Profits Net Profits +10% +11% +7% +30% 7.2 14.4 15.2 14.7 4.7 4.9 10.1 10.5 7.1 Emirates NBD Profile 4.4 9.9 4.2 6.2 11.9 3.6 4.1 3.5 11.4 3.8
Slide 12: Emirates NBD delivered a strong set of results in Q3-17
Operating Environment 12 Emirates NBD delivered a strong set of results in Q3-17 Q3 2017 YTD at a glance 2017 Macro themes Q3 2017 YTD vs. Regional Global 2017 guidance • Resilience of UAE • Emirates NBD’s economy balance sheet Emirates NBD Profile Profitability Net profit AED 6.17 Bn underpinned by
Slide 13: Q3-17 YTD Financial Results
Operating Environment 13 Q3-17 YTD Financial Results Highlights Key Performance Indicators Better / • Net profit of AED 6,170 Mn for Q3-17 YTD AED Mn Q3-17 YTD Q3-16 YTD (Worse) improved 15% y-o-y Net interest income 7,991 7,651 4% • Emirates NBD Profile Net interest income improved 4% y-o-y due to
Slide 14: Q3-17 Financial Results Highlights
Operating Environment 14 Q3-17 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 2,276 Mn for Q3-17 increased AED Mn Q3-17 Q3-16 Q2-17 (Worse) (Worse) 37% y-o-y and 13% q-o-q Net interest income 2,806 2,551 10% 2,699 4% • Emirates NBD Profile Ne
Slide 15: Net Interest Income
Operating Environment 15 Net Interest Income Highlights Net Interest Margin (%) 2.85 • While NIMS appear lower y-o-y due to funding costs, 2.80 average funding rates are being managed lower and, together with rate rises flowing into loan yields, this has 2.82 Emirates NBD Profile resulted in a 7 bps
Slide 16: Non-Interest Income
Operating Environment 16 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / • Core fee income improved 3% y-o-y driven by AED Mn Q3-17 YTD Q3-16 YTD growth in foreign exchange and credit card, trade (Worse) finance and processing fee income Core gross fee income 3,99
Slide 17: Operating Costs and Efficiency
Operating Environment 17 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Q3-17 YTD costs improved by 5% y-o-y helped by a containment in staff costs 33.7 34.5 following cost control measures 32.6 implemented in 2016 Emirates NBD Profile 32.0 33.1 32.0 • Costs increased in Q3-17
Slide 18: Credit Quality
Operating Environment 18 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 122.5 123.5 124.9 120.1 • NPL ratio improved to 6.1% during 2017 and held steady 111.5 q-o-q 99.6 • Impaired loans were steady at AED 20.1 Bn during 2017 66.2 76.1 Emirates NBD Profile helped by AED 1,052 Mn of wr
Slide 19: Capital Adequacy
Operating Environment 19 Capital Adequacy Highlights Capitalisation 20.5 21.2 21.2 20.2 20.7 • In Q3-17, Tier 1 ratio improved by 0.5% to 18.8% and CAR increased by 0.5% to 21.2% 18.0 18.3 18.8 18.7 17.8 • Increase in Tier 1 capital from retained earning more than 54.4 55.3 57.6 53.5 53.4 offsetting
Slide 20: Funding and Liquidity
Operating Environment 20 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio (LCR) of 139.1% and AD ratio of 118.5 94.4% demonstrates healthy liquidity position • Liquid assets* of AED 67.9 Bn as at Q3-17 (16.8% of total 105.1 liabilities) 102.0 Emirates NB
Slide 21: Loan and Deposit Trends
Operating Environment 21 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +5% • Gross loans for Q3-17 YTD grew 5% with good growth in corporate lending 329 329 +5% 314 315 320 310 • Corporate lending for Q3-17 YTD grew 285 294 303 7% due to growth in real estate, 279 221 225
Slide 22: Loan Composition
Operating Environment 22 Loan Composition Total Gross Loans (AED 332 bn) Corporate Loans (AED 103 bn) Treasury/Other Cont. Corporate Trans. & com. Retail 7% 103 2% 34 (31%) Trade (10%) 0 RE 15% Emirates NBD Profile (0%) 37% Manuf. 7% 1% 53 139 (16%) Others** 4% (42%) Islamic* Per. - Corp. 4% Soverei
Slide 23: Divisional Performance
Operating Environment 23 Divisional Performance • Revenues increased 15% y-o-y and 7% q-o-q Balance Sheet Trends Revenue Trends +1% • Q3-17 fee income accounted for 35% of total RBWM AED Bn AED Mn revenue, up from 33% in the previous quarter 0% +7% Wealth Management • Loan growth was flat as a decli
Slide 24: Divisional Performance (cont'd)
24 Divisional Performance (cont’d) Operating Environment • Wholesale Banking revenues increased 19% y-o-y and Balance Sheet Trends Revenue Trends declined 3% q-o-q AED Bn +6% AED Mn • Loans grew 7% in 2017 due to growth in real estate, +7% services and trade sectors. Deposits up 6% during 2017 -3% W
Slide 25: Emirates NBD's core strategy building blocks
25 Emirates NBD’s core strategy is focused on the following building blocks Operating Environment Key Deliver an excellent customer Emirates NBD Profile Objective experience (with digital being the focus) Financial & Operating Performance Strategic Run an Drive Levers Drive core efficient geographic
Slide 26: Highlights of strategic achievements in 2016
Operating Environment 26 Highlights of strategic achievements in 2016 2016 Strategic Priorities Key Achievements • Extend servicing of products through online, • Won Best Bank in the Middle East, Best Bank in the UAE and Best Digital 1 mobile, social channels Bank in the Middle East at the Euromoney
Slide 27: Strategic priorities for 2017
Operating Environment 27 Strategic priorities for 2017 Pillars of our strategy Key focus areas 1 Deliver an excellent • Continue to deliver superior customer experience via investing into new digital channels, products, and capabilities customer experience (with digital being the • Reinforce ENBD’s
Slide 28: Q3-17 YTD Selected Awards
Operating Environment 28 Q3-17 YTD Selected Awards Best Retail Bank in the Middle East’, ‘Best Retail Emirates NBD Profile ‘Banking Company of the ‘Best equity house in the Bank in UAE’ and ‘Auto Loan ‘Top banking brand in the Year’ Middle East’ Product of the Year in Asia UAE’ Pacific’ Financial &
Slide 29: Large Deals Concluded in Q3-17
Operating Environment 29 Large Deals Concluded in Q3-17 TÜRK EKONOMİ BANKASI TURKIYE VAKIFLAR AKBANK T.A.S. BANK FOR INVESTMENT ETIHAD AIRWAYS PJSC A.Ş. BANKASI T.A.O. AND DEVELOPMENT OF USD 160,000,000 AND EUR USD 131,000,000 AND EUR VIETNAM USD 542,600,000 AND EUR USD 300,000,000 385,000,000 634,0
Slide 30: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com