Slide 1: FY 2018 Results Presentation
FY 2018 Results Presentation 16 January 2019
Slide 2: Important Information
Important Information Disclaimer The material in this presentation is general background information about Emirates NBD's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to
Slide 3: Emirates NBD delivered a strong set of results in 2018
Emirates NBD delivered a strong set of results in 2018 Key Metrics 2019 Macro themes FY 2018 vs 2018 2019 Regional Global Guidance Guidance • Diversified UAE • Continued strong AED 10 Bn Profit Net profit economy growth in the US +20% economy • GCC growth NIM 2.82% 2.75-2.85% 2.75-2.85% supported by
Slide 4: FY 2018 Financial Results
FY 2018 Financial Results Highlights Key performance indicators Better / • Net profit of AED 10,042 Mn for FY 2018 AED Mn FY 2018 FY 2017 (Worse) improved 20% y-o-y • Net interest income increased 19% y-o-y on Net interest income 12,888 10,786 19% 8% loan growth coupled with an Non-interest income 4
Slide 5: Q4-2018 Financial Results Highlights
Q4-2018 Financial Results Highlights Highlights Key performance indicators Better / Better / AED Mn Q4-18 Q4-17 Q3-18 • Net profit of AED 2,385 Mn for Q4-18 (Worse) (Worse) increased 10% y-o-y and declined 10% q-o-q Net interest income 3,352 2,795 20% 3,307 1% • Net interest income increased 20% y-o
Slide 6: Net interest income
Net interest income Highlights Net Interest Margin (%) 2.87 • Q4-18 NIM of 2.85% improved 34 bps y-o-y as rate rises flowed 2.82 2.85 through to the loan book which more than offset a rise in funding costs 2.82 2.68 2.81 • Q4-18 NIM declined 2 bps q-o-q on higher funding costs due to a 2.78 change i
Slide 7: Loan and deposit trends
Loan and deposit trends Highlights Trend in Gross Loans by Type (AED Bn) +9% • Gross loans grew 9% in 2018 with growth 360 351 337 343 across all operating segments 329 329 329 313 315 320 242 242 243 249 252 259 266 • Consumer lending grew 11% in 2018 due to 226 227 233 growth in personal loans, cr
Slide 8: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio of 195.3% and AD ratio of 94.3% demonstrates healthy liquidity position • Liquid assets* of AED 84.6 Bn as at Q4-18 (19.4% of total liabilities) 95.0 95.2 94.4 94.4 94.3 93.4 93.8 93.1 • In 2018, AED 8.2 B
Slide 9: Capital adequacy
Capital adequacy Highlights Capitalisation • During 2018 the mix of capital improved as retained earnings 21.2 20.3 21.2 21.3 20.9 were used to retire some less efficient Tier 2 capital 19.8 18.9 19.8 20.0 19.0 16.6 • Board of Directors to recommend a 2018 dividend of 40 fils per 15.6 15.5 16.3 16.6
Slide 10: Non-interest income
Non-interest income Highlights Composition of Non Interest Income (AED Mn) Better / AED Mn FY 2018 FY 2017 (Worse) • Core fee income was 4% higher y-o-y due to Core gross fee income 5,818 5,475 6% higher foreign exchange and derivative income Fees & commission expenses (1,165) (981) (19%) • Total no
Slide 11: Operating costs and efficiency
Operating costs and efficiency Highlights Cost to Income Ratio (%) 33.5 32.9 32.8 • FY 2018 costs increased 16% y-o-y due to 32.0 higher staff and IT costs relating to our 31.3 31.1 31.5 32.3 ongoing investment in digital and 30.9 30.8 31.9 technology. 30.2 31.1 31.3 30.9 • Other Costs were also hig
Slide 12: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved to 5.9% in 2018 128.4 127.9 127.4 127.3 • 2018 cost of risk at 63 bps as net impairment charge of AED 124.9 124.5 1,748 Mn improved 22% y-o-y 123.5 122.5 • AED 1,631 Mn of write backs & recoveries in 2018 120.1 • Cove
Slide 13: Wealth Management
Divisional performance Balance Sheet Trends Revenue Trends • Revenues increased 8% y-o-y in 2018 as fee income grew by AED Bn +5% AED Mn 5% over the previous year led by Cards and FX +9% +8% Wealth Management • Customer advances rose by AED 3.4 billion (9%) during the Retail Banking & year assisted
Slide 14: Wholesale Banking
Divisional performance (cont’d) Balance Sheet Trends Revenue Trends • Wholesale Banking revenues increased 18% y-o-y AED Bn +5% AED Mn +18% • Loans grew 7% in 2018 due to growth in trade, +7% 5,851 Wholesale Banking construction and FI sectors. Deposits increased by 5% 243.3 4,979 227.1 • Net intere
Slide 15: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 609 3046 Email: IR@emiratesnbd.com 15