Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Merger or Acquisition (2007)
23 slides from Emirates Nbd Bank (p.j.s.c)'s merger presentation, 2007
Slide 1: Emirates NBD: Creating a Banking Leader in the Middle East
CONFIDENTIAL Emirates NBD Creating a Banking Leader in the Middle East
Slide 2: Index
Index • Rationale for the merger • Financial overview and key indicators • Strategy 1
Slide 3: Merger context and aspirations
Merger context and aspirations What merger has led to so far … Creation of UAE champion • Largest UAE bank by assets and market capitalisation What merger should allow going forward … • Enhanced distribution network and business mix 1 To become the leading regional financial strengthening competitiv
Slide 4: The merger will provide significant benefits to all the bank's stakeholders
The merger will provide significant benefits to all the bank’s stakeholders • Enhanced regional and international expansion opportunities • Increasing financial strength and capital position to support future growth • Value creation through established management expertise and best practices Share-
Slide 5: Structuring of merger
Structuring of merger Emirates NBD offered to buy shares in EBI and NBD by way of a share for share Equal representation on Board and exchange through an unregulated management Committee of 2 banks contractual offer working side- by-side • 6 members from EBI and 6 members of EBI NBD NBD appointed to
Slide 6: Emirates NBD will become the dominant player in the UAE
Emirates NBD will become the dominant player in the UAE . . . Last 12 months to 1H 2007 Assets Equity Net profits $b, 1H 2007 $b, 1H 2007 $m, Last 12 months to 1H 2007 Emirates Emirates Emirates 53.4 4.0 906 NBD NBD NBD NBAD 30.5 ADCB 2.8 DIB 601 ADCB 26.2 NBAD 2.5 ADCB 592 DIB 20.6 Mashreq 2.5 NBAD
Slide 7: ...with largest domestic market share
. . . with largest domestic market share… 2006 Corporate loans market share* 2006 Personal loans market share** $22bn $8bn 8% 8% 20% 24% 12% 16% EBI NBD Emirates EBI NBD Emirates NBD NBD 2006 Islamic assets market share UAE*** Islamic assets 94.8% Emirates NBD 5.2% ($2bn) * Includes government loans
Slide 8: ...in a fast growing but highly competitive market
. . . in a fast growing but highly competitive market UAE has seen high growth in the recent . . . but the market remains relatively past . . . fragmented 2000–06 bank assets CAGR, % Market share of top 3 banks (by assets, %)* 25 UAE 31 21 KSA 46 15 Kuwait 59 12 Bahrain 62 11 11 Oman 67 Qatar 69 Fra
Slide 9: Emirates NBD will also become the largest bank in the GCC by assets
Emirates NBD will also become the largest bank in the GCC by assets Last 12 months to 1H 2007 GCC ranking by assets Equity GCC ranking by profits $b, 1H 2007 $b, 1H 2007 $m, Last 12 months to 1H 2007 Emirates NBD 53.4 NCB 7.2 Al Rajhi 1,852 NCB 49.1 Al Rajhi 6.0 NCB 1,835 SAMBA 34.4 KFH 5.1 SAMBA 1,
Slide 10: ...with significantly enhanced representation in the region's key markets
. . . with significantly enhanced representation in the region’s key markets Country ENBD UAE 99 branches KSA Branch Qatar Branch Turkey Iran Rep. Office India Rep. Office Singapore Rep. Office Syria Tehran UK Branch Lebanon Iraq Jersey Subsidiary branch Israel Iran Jordan Kuwait Bahrain Cairo Egypt
Slide 11: Current position of Emirates NBD by geography
Current position of Emirates NBD by geography 2006 Geographies UAE GCC MENA* MENA+Asia** Global Rankings • Assets #1 #1 #3 # 23 # 209 • Profits #1 #5 #9 # 21 # 160 * Including Turkey ** Including Turkey and excluding China and Japan Source: The Banker (Top 1000 rankings), team analysis 10
Slide 12: Index
Index • Rationale for the merger • Financial overview & key indicators • Strategy 11
Slide 13: Emirates NBD has experienced very strong growth in the last 6 years
Emirates NBD has experienced very strong growth in the last 6 years Assets, $b Loans, $b 53 34 +22% 45 30 +32% 30 19 18 21 12 15 17 10 13 8 5 6 2000 01 02 03 04 05 06 1H07 2000 01 02 03 04 05 06 1H07 Deposits, $b Equity, $b 31 +9% 4.1 4.1 +19% 26 3.5 3.0 3.0 3.0 19 2.5 14 2.2 12 13 9 11 2000 01 02 0
Slide 14: Profits have increased accordingly
Profits have increased accordingly Revenues, $m +21% 1,362 1,070 823 849 674 Net Profits, $m 438 462 537 800 2000 01 02 03 04 05 06 1H07 +21% 751 534 498 404 Costs, $m 319 250.4 260 562 +20% 2000 01 02 03 04 05 06 1H07 368 351 270 290 188 201 218 2000 01 02 03 04 05 06 1H07 Source: Bloomberg; aggreg
Slide 15: Diversified Business mix with growth in each segment
Diversified Business mix with growth in each segment… 2006, % Assets Net Profits 100% = $45b 100% = $800m Islamic Islamic 4% 4% 80% Wholesale 81% Wholesale Retail 16% Retail 15% * Wholesale include corporate banking, investment banking and investment management and treasury Source: 2006 annual resul
Slide 16: Wholesale Banking and Corporate Banking as a driver of growth
Wholesale Banking and in particular Corporate Banking has been a driver of growth in the past CAGR Loans Highlights $b +50% 22.8 • Wholesale Banking comprises of services provided to Multinational, Large Local and Local Corporate as well as 15.2 Government linked institutions, Financial Institutions
Slide 17: Retail Banking – largest distribution network and market share
Retail Banking – The merged entity has the largest distribution network and market share CAGR Loans $b Highlights +74% 3.2 • The combined entity has the largest distribution network in 1.9 UAE and highest market share in terms of Personal Loans and Deposits • Investment on service has been a key foc
Slide 18: Islamic Banking business has achieved the fastest growth in UAE
Islamic Banking business has achieved the fastest growth in UAE CAGR Assets Highlights $b +119% • Emirates Islamic Bank has become the fastest growing Islamic bank in the UAE, since its inception in 2004 2.9 • The business has been more than doubling assets and income every year and is rapidly incre
Slide 19: Strong Credit Ratings
Strong Credit Ratings - Emirates NBD will be engaging rating agencies for a single rating in 2008 Current Ratings EBI NBD Moody’s1 • A1/P-1 • A1/P-1 S&P2 • A/Positive/A-1 • A/Positive/A-1 Fitch3 • AA- •- Capital • AA- • AA- Intelligence4 1 Moody’s Long-term rating/Short-term rating 2 S&P Credit rati
Slide 20: Index
Index • Rationale for the merger • Financial overview and key indicators • Strategy 19
Slide 21: Emirates NBD strategy
Emirates NBD strategy 1 Pursue profitable growth in Retail Banking 2 Establish a distinctive Wealth Management offering 3 Consolidate and enhance market position in Corporate Banking 4 Develop a leading regional Investment Banking franchise 5 Expand Islamic Banking 6 Pursue expansion in the GCC and
Slide 22: Emirates NBD Strategic Priorities
Emirates NBD Strategic Priorities Emirates NBD Strategy 1 • Create and exploit the largest distribution network in the UAE • Increase share-of-wallet Retail • Develop a strong brand • Leverage best practice • Offer superior service • Operational efficiency 2 • Leverage platforms of EBI’s Al Shaheen
Slide 23: Emirates NBD strategic priorities
Emirates NBD strategic priorities Emirates NBD Strategy 4 • Create a world class platform in terms of people and product capability Investment • Enhance cross-selling to the corporate and institutional clients base Banking • Leverage Dubai’s development as a regional financial centre 5 • Expand Emir