Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q3 2022 Earnings Presentation
28 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, November 2022
Slide 1: Investor Presentation Q3 2022
Investor Presentation Q3 2022 November 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: Table of Content
Table of Content 1. Emirates NBD Profile 2. Economic Environment 3. Financial & Operating Performance 4. Divisional Performance 3
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 September 2022 AED 13.25 AED 721bn AED 481bn AED 419bn Share Price Assets Total Deposits Total Loans As of 28 Oct 2022 As of 30 Sep 2022 As of 30 Sep 2022 As of 30 Sep 2022 900 17+ Million 35,000+ 13 Countries Branches Customers
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Key Highlights Emirates NBD’s International Presence • Largest financial institution in Dubai, 4th largest in the GCC 7 Germany 1 Moscow 1 London • Leading retail banking franchise with a branch network of 13 Austria 900 branches throughout the MENAT region with operations i
Slide 6: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Overview Key Digital Developments • 90% of all face-to-face card payment transactions now ‘contactless’ through Mobile wallet Liv., the digital bank by Emirates NBD further strengthened its proposition growing its customer base to more than 660,000 • Continue
Slide 7: ESG Performance
ESG Performance Key Developments • First female director elected to the Board in February 2022. Raised first Sustainability-linked loan EmCap raised USD 9 bn of from a bank from the Gulf region: • First UAE banking Group to commit to female leadership target, ➢ KPI 1: Women in Senior Management sust
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 of 30 September 2022 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai v
Slide 9: Emirates NBD is one of the largest banks in the UAE
Emirates NBD is one of the largest banks in the UAE Total Income Net Profit Total Loans Coverage Ratio & NPLs (%) CET-1 Ratio (%) In AED mn In AED mn In AED bn Q3 2022 As of 30 September 2022 NPL % As of 30 September 2022 22,693 10,949 465 3.6 150 15.5 18,022 9,098 419 143 5.8 14.0 9,941 4,650 251 1
Slide 10: Consistently profitable due to diversified and resilient business model
Consistently profitable due to diversified and resilient business model 8.8% 19.7% 18.0% 18.8% 20.3% 16.5% 9.5% 12.8% 16.4% 10.5% 15.7% 23.8 23.2 22.7 22.4 17.4 15.2 15.4 14.4 14.7 14.5 11.8 10.2 10.0 9.3 9.1 8.3 7.1 7.2 7.0 5.1 3.3 2.6 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9M 2022 Total
Slide 11: UAE economy rebounding with 5.7% growth expected in 2022
UAE economy rebounding with 5.7% growth expected in 2022 UAE GDP Growth Key Highlights 8.0 7.0 % y/y 3.9 3.9 • The Dubai PMI rose to 56.4 in July, the highest reading since mid-2019 4.0 2.4 1.2 1.1 • Dubai tourism sector is expected to benefit from the Qatar World Cup 0.0 • ENBD Research expects UAE
Slide 12: Dubai: Positioning for future growth
Dubai: Positioning for future growth Key contributors to Dubai GDP Key Highlights Other 14.6 ICT 4.4 • The Dubai PMI rose to 56.4 in July, the highest reading since mid-2019 Hospitality 6.3 Goverment 4.8 • Dubai tourism sector is expected to benefit from the Qatar World Cup Construction 6.9 Transpor
Slide 13: Executive Summary 9M'22 Results
Executive Summary 9M’22 Results Key Highlights Key Metrics and Guidance Strong momentum continues with 9M’22 profit up 25% to Net Profit CET 1 AED 9.1bn, almost at 2021 full-year profit level AED 9.1bn 15.5% +25% y-o-y Quarterly profit exceeds $1 billion equivalent NIM LCR Income 31% higher driven b
Slide 14: Emirates NBD's profit rises 25% YoY to AED 9.1 bn
Emirates NBD’s profit rises 25% YoY to AED 9.1 bn on strong diversified income growth Highlights Income Liquidity Risk Expenses Capital Divisional Key Highlights Excluding DenizBank Income Statement Better / Better / Better / 9M’22 9M’21 9M’22 9M’21 9M’22 9M’21 • Group profit up 25% on strong divers
Slide 15: Quarterly profits exceed US$ 1bn equivalent
Quarterly profits exceed US$ 1bn equivalent Highlights Income Liquidity Risk Expenses Capital Divisional Income Statement Q3-22 Q3-21 Better / Q2-22 Better / Key Highlights All figures are in AED bn (Worse) (Worse) Net interest income 6.1 4.4 37% 5.1 18% • Strong Q3-22 with net profit exceeding US$1
Slide 16: NIMs trending towards top end of guidance
NIMs trending towards top end of guidance Highlights Income Liquidity Risk Expenses Capital Divisional Net Interest Margin (%) 3.57 Key Highlights Quarterly NIM YTD NIM • 9M’22 NIM improved 59 bps y-o-y due to rate rises and improving 3.09 DenizBank NIMs 2.89 2.82 3.10 • Q3-22 NIM up 48 bps q-o-q on
Slide 17: Non-funded Income
Non-funded Income Highlights Income Liquidity Risk Expenses Capital Divisional Non-funded income All figures are in AED mn Q3-22 Q3-21 Better / (Worse) Q2-22 Better / (Worse) Key Highlights • Q3-22 fee and commission income 15% higher y-o-y from increased Fee and Commission income 1,806 1,565 15% 1,
Slide 18: Improving loans and deposit mix
Improving loans and deposit mix Highlights Income Liquidity Risk Expenses Capital Divisional Gross Loans by Type All figures are in AED bn Key Highlights -1% • Gross lending ex. Sovereign grew up 12% (AED 36 bn) in 9M’22 475 459 463 463 457 DenizBank 79 - Retail lending up 13% (AED 7 bn) with strong
Slide 19: Credit quality improving with market leading coverage
Credit quality improving with market leading coverage Highlights Income Liquidity Risk Expenses Capital Divisional Impaired loans and allowances Key Highlights 6.2 6.3 6.4 6.1 5.8 • NPL ratio improved by 0.3% to 5.8% in Q3-22 on continued strong 37.1 37.2 37.9 37.7 37.9 writebacks and recoveries 29.
Slide 20: Operating Expenses
Operating Expenses Highlights Income Liquidity Risk Expenses Capital Divisional Cost to Income Ratio (%) Key Highlights 34.8 34.0 • 9M’22 cost to income ratio at 28.2% within guidance reflecting stronger income enabling accelerated investment for growth 33.1 33.5 30.8 • Staff costs increased y-o-y o
Slide 21: Funding & Liquidity
Funding & Liquidity Highlights Income Liquidity Risk Expenses Capital Divisional Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 180 170 177.6 ADR % LCR % • LCR of 152.2% and ADR of 87.2% demonstrate healthy liquidity 157.2 100 160 • Liquid assets* of AED 65 billion cover 10% of
Slide 22: Capital Adequacy
Capital Adequacy Highlights Income Liquidity Risk Expenses Capital Divisional Capital All figures are in AED bn Key Highlights 90.6 5.4 • CET-1 ratio improved by 0.4% to 15.5% during 2022 as 9.1 - AED 8.6 bn of net earnings more than offset 76.1 (0.4) 0.4 - 10% increase in RWAs on the back of growth
Slide 23: Divisional Performance
Divisional Performance Highlights Income Liquidity Risk Expenses Capital Divisional Operating Segment Metrics 9M’22 Increase/ (Decrease) Key Highlights 7,312 22% Retail Banking and Wealth Management Income (mn) • Lending increased by AED 6.5 bn, whilst CASA grew by a record AED 20 bn in first nine m
Slide 24: APPENDIX
6) Emirates NBD | | APPENDIX | “CREATE | OPPORTUNITIES TO PROSPER”?
Slide 25: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights +138% 52% • Loss on net monetary position for DenizBank was AED 2.4 bn for 9M’22 1,047 1,030 978 978 • AED 2.4 bn debit P&L charge with corresponding credit offset to OCI making 844 844 it capital neutral 56% 687 571 547 571 0.3 524 505 547
Slide 26: 9M'22 results – convenience translation to US$
9M’22 results –convenience translation to US$ Highlights Income Liquidity Risk Expenses Capital Divisional Key Highlights Excluding DenizBank Income Statement Better / Better / Better / 9M’22 9M’21 9M’22 9M’21 9M’22 9M’21 • Group profit up 25% on strong diversified income All figures are in USD bn (
Slide 27: Q3-22 results – convenience translation to US$
Q3-22 results –convenience translation to US$ Highlights Income Liquidity Risk Expenses Capital Divisional Income Statement Q3-22 Q3-21 Better / Q2-22 Better / Key Highlights All figures are in USD bn (Worse) (Worse) Net interest income 1.7 1.2 37% 1.4 18% • Strong Q3-22 with net profit exceeding US
Slide 28: 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