Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — FY2021 Earnings Presentation
26 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, March 2022
Slide 1: Investor Presentation FY 2021
Investor Presentation FY 2021 March 2022
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: Agenda
1. Emirates NBD Profile 2. Financial & Operating Performance 3. Economic Environment 4. Divisional Performance
Slide 4: Emirates NBD is a leading bank in the MENAT Region
Emirates NBD is a leading bank in the MENAT Region Key Highlights as of December 2021 Emirates NBD at a Glance USD 187 Bn USD 125 Bn USD 124 Bn Total Assets Gross Customer Loans Total Customer Deposits 13 900 17+ million Countries Branches Customers 4th 2nd ~20% Largest in GCC Largest in UAE Market
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Emirates NBD’s International Presence Market share in the UAE* Moscow ➢ Assets 18%; Loans 23%; Deposits 20% London 8 1 1 Germany 17 ➢ Largest financial institution in Dubai, 4th Austria largest in the GCC Turkey Beijing 686 1 ➢ Leading retail banking franchise with a branch
Slide 6: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Key Digital Developments • 90% of all face-to-face card payment transactions now ‘contactless’ through • Liv. is now over 580,000 customer strong in UAE & KSA, making it Mobile wallet the largest digital lifestyle bank in the region. • EXPO 2020 Dubai branch
Slide 7: ESG Performance – Key Highlights
ESG Performance – Key Highlights For more about ESG report, please visit: Key developments Received our first CSR Label from the Dubai Chamber recognising ISO 26000 guidelines on social responsibility. First ever female Director elected to Board in February 2022 Raised first Sustainability-linked lo
Slide 8: 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 at 31 December 2021 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai Ot
Slide 9: Emirates NBD is one of the largest banks in the GCC
Emirates NBD is one of the largest banks in the GCC… Total Assets Total Loans Total Deposits Total Income USD Bn, 31-Dec-2021 USD Bn, 31-Dec-2021 USD Bn, 31-Dec-2021 USD Mn, FY 2021 298 215 214 7,745 272 135 167 7,582 243 125 156 6,852 187 123 136 6,482 124 5,900 166 115 3,336 120 69 72 9
Slide 10: …and one of the largest banks in the UAE
…and one of the largest banks in the UAE Total Income Net Profit Total Loans Coverage Ratio & NPLs (%) CET-1 Ratio (%) USD Mn, FY 2021 USD Mn, FY 2021 USD Bn, 31-Dec-2021 31-Dec-2021 31-Dec-2021 NPL% 6,482 3,413 125 128 6.3 15.1 5,900 2,532 115 98 4.0 14.7 3,336 1,428 69 93 5.4 12.9 3,210 1,199 53 7
Slide 11: Consistently profitable due to diversified and resilient business model
Consistently profitable due to diversified and resilient business model 9.1% 9.3% 8.8% 10.5% 15.7% 19.7% 18.0% 18.8% 20.3% 16.5% 9.5% 12.8% 6.5 6.3 6.1 4.7 4.1 4.2 3.9 4.0 3.9 3.2 2.6 2.7 2.8 2.7 2.5 2.3 1.9 2.0 1.9 1.4 0.9 0.6 0.7 0.7 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Tota
Slide 12: Emirates NBD delivers strong performance in 2021
Emirates NBD delivers strong performance in 2021 on improving economic conditions Key Highlights Key Metrics & Guidance Net Profit CET 1 Strong performance recovery trend with FY 2021 profit USD 2.5bn, up 34% USD 2.5bn 15.1% +34% y-o-y UAE economic activity picking up helped by Expo 2020 NIM LCR 2.5
Slide 13: Financial results highlights FY 2021
Financial results highlights FY 2021 Highlights Income Expenses Risk Capital Liquidity Macro Divisional Key Highlights Better / Income Statement (USD bn) FY 2021 FY 2020 (Worse) • Strong 2021 results a continuation of recovery with net profit up 34% y-o-y Net interest income 4.6 4.8 (3)% - 38% of in
Slide 14: Financial results highlights Q4 2021
Financial results highlights Q4 2021 Highlights Income Expenses Risk Capital Liquidity Macro Divisional Better / Better / Income Statement (USD bn) Q4-21 Q4-20 Q3-21 (Worse) (Worse) Key Highlights Net interest income 1.2 1.1 7% 1.2 (3)% Non-funded income 0.6 0.2 146% 0.4 67% • Net profit up 53% y-o-
Slide 15: Net interest income
Net interest income Highlights Income Expenses Risk Capital Liquidity Macro Divisional Net Interest Margin (%) Key Highlights • FY 2021 NIM down 12 bps due to interest rate cuts in 2020 2.89 - Improved funding cost offset by reduced loan yields Quarterly NIM 2.82 YTD NIM • Q4-21 NIM declined 6bps -
Slide 16: Loans and deposits trends
Loans and deposits trends Highlights Income Expenses Risk Capital Liquidity Macro Divisional Gross Loans by Type (USD Bn) Key Highlights -4% • Gross loans declined 4% (USD 5.5bn) in 2021 due to currency depreciation, offsetting -3% significant demand for retail financing 130 129 129 129 125 - Retail
Slide 17: Non-funded income
Non-funded income Highlights Income Expenses Risk Capital Liquidity Macro Divisional Key Highlights Better / • FY-21 fee and commission income up 15% y-o-y Non-funded income (USD mn) FY-21 FY-20 (Worse) - Higher transaction volumes due to increased activity Fee and Commission income 1,762 1,531 15%
Slide 18: Operating expenses
Operating expenses Highlights Income Expenses Risk Capital Liquidity Macro Divisional Key Highlights Cost to Income Ratio (%) • YTD Cost to income ratio improved to 33.5% from 33.8% last year supported by positive income momentum 41.5 35.3 34.0 34.8 - Positive jaws as 3% Income growth outpaced 2% in
Slide 19: Credit quality
Credit quality Highlights Income Expenses Risk Capital Liquidity Macro Divisional Impaired loans and allowances Key Highlights • NPL ratio increased by 0.1% to 6.3% in FY-21 6.2 6.1 6.3 6.2 6.3 12 10.1 • Coverage ratio strengthened 10.2% to 127.5% during 2021 9.5 9.8 9.9 10.1 10 8.1 8.1 o S1 and S2
Slide 20: Capital adequacy
Capital adequacy Highlights Income Expenses Risk Capital Liquidity Macro Divisional Capital (USD billion) Key Highlights 22.2 1.3 • CET-1 ratio improved 0.1% during 2021 as (0.9) (0.2) 0.1 2.5 18.3 2.5 (1.5) 18.4 - USD 2.5bn of retained earnings offset - USD 0.9bn of proposed dividend - USD 1.5bn im
Slide 21: Funding and liquidity
Funding and liquidity Highlights Income Expenses Risk Capital Liquidity Macro Divisional Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights ADR % LCR % • LCR of 177.6% and ADR of 92.5% demonstrate healthy liquidity 180 100 165.0 165.1 177.6 158.8 160 157.2 • Liquid assets* of USD 19
Slide 22: UAE economy rebounding with 5.7% growth expected in 2022
UAE economy rebounding with 5.7% growth expected in 2022 Highlights Income Expenses Risk Capital Liquidity Macro Divisional 8 Key Highlights UAE GDP growth % y/y 6.1 • The UAE economy enjoyed a strong finish to 2021, with Expo 2020 and 5.7 4 increased tourism boosting domestic demand 3.4 2.4 2.5 • E
Slide 23: Dubai: Positioning for future growth
Dubai: Positioning for future growth Highlights Income Expenses Risk Capital Liquidity Macro Divisional Key contributors to Dubai GDP (Jan-Sep 2021) Key Highlights Hospitality % of total • ENBD Research expects Dubai’s economy to grow by 4.0% in 2022 4.3% Other 15.1% ICT Trade • Visitor numbers expe
Slide 24: Divisional performance
Divisional performance Highlights Income Expenses Risk Capital Liquidity Macro Divisional Increase / Key Highlights Operating Segment Metrics FY-21 Retail Banking and Wealth Management (Decrease) • Record year for consumer loan origination, cards acquisitions and low-cost CASA Income (mn) 2,189 4% •
Slide 25: DenizBank business overview
DenizBank business overview Highlights Income Expenses Risk Capital Liquidity Macro Divisional Better / Income Statement (USD Mn) FY-21 FY-20 Key Highlights (Worse) Net interest income 1,435 1,542 (7)% • Net profit grew 20% to USD 447m in 2021 despite volatility Non-funded income 482 433 11% • Net i
Slide 26: Thank you
Thank you Investor Relations Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046