Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (March 2008)
43 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, March 2008
Slide 1: Creating a Banking Leader in the Middle East
Emirates NBD Creating a Banking Leader in the Middle East March 2008
Slide 2: Forward Looking Statements
Forward Looking Statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only
Slide 3: Contents
Contents Introduction Rationale for the Merger Financial Overview and key Indicators Integration Update Strategic Focus Appendix 2
Slide 4: Vision & Mission
Vision & Mission Emirates NBD’s Vision To be globally recognised as the leading and most dynamic financial services provider based in the Middle East Emirates NBD’s Mission Statement Emirates NBD provides innovative financial products and services to fulfill the financial goals of our customers thro
Slide 5: Emirates NBD – A New Regional Powerhouse
Emirates NBD – A New Regional Powerhouse • Largest Banking merger in the MENA region. • 56% owned by Government of Dubai; 44% Free Float Creation of the • Largest UAE bank by assets and market capitalization UAE’s Leading Bank • Market share of 21% of Assets and 19% of Deposits • Corporate / Retail
Slide 6: Corporate Structure
Corporate Structure Government Public of Shareholding Dubai 56% 44% Emirates NBD 100% 100% Emirates Bank National Bank of International Dubai Emirates Islamic Bank 99.8% 100% NBD Investment Bank Emirates Investment Services 100% 99.99% NBD Securities Emirates International Securities 100% 99.99% Al
Slide 7: Emirates NBD Board and Management
Emirates NBD Board and Management Emirates NBD’s Board was formed with an equal number of members from EBI & NBD H.E. Ahmed Humaid Al Tayer Abdullah Mohammed Saleh (Chairman) (Vice Chairman) H.E. Easa Saleh Al Gurg Fardan Bin Ali Alfardan Khalid Jassim Kalban H.E. Abdullah Ahmed Lootah
Slide 8: Strong Credit Ratings
Strong Credit Ratings 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 rating 3 EBI’ s Long term Issuer Default rating is AA-; NBD has not been rated b
Slide 9: Introduction
Introduction Rationale for the Merger Financial Overview and key Indicators Integration Update Strategic Focus Appendix 8
Slide 10: 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 The merger provides a strong foundation … • Enhanced distribution network and 1 To become the leading regional financial business mix strengthening instituti
Slide 11: The merger will provide significant benefits to all stakeholders
The merger will provide significant benefits to all 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- holders • G
Slide 12: Emirates NBD leads the UAE Banking Sector
Emirates NBD leads the UAE Banking Sector . . . Assets Equity Net profits $b, YE 2007 $b, YE 2007 $m, FY 2007 Emirates Emirates Emirates NBD 69.1 5.2 1,098 NBD * NBD Nat. Bk. of Abu Dhabi Nat. Bk. of 38.0 3.1 682 Abu Dhabi Comm. Bk. Abu Dhabi Abu Dhabi Nat. Bk. of 28.9 Abu Dhabi 3.1 Mashreq 579 Comm
Slide 13: with the largest domestic market share
. . . with the largest domestic market share… 2007 Loans market share* 2007 Deposits market share** $45bn $38bn 9% 9% 23% 19% 14% 10% EBI NBD Emirates EBI NBD Emirates NBD NBD 2007 Islamic assets market share UAE*** Islamic assets 88.9% Emirates NBD 11.1% ($5.3bn) * Includes government loans; Islami
Slide 14: Emirates NBD is the largest bank in GCC by assets
Emirates NBD is the largest bank in GCC by assets FY 2007 GCC ranking by assets Equity GCC ranking by profits $b, YE 2007 $b, YE 2007 $m, FY 2007 Emirates NBD 69.1 Nat. Comm. Al Rajhi Bank 7.9 1,719 Bank Nat. Comm. Nat. Comm. 55.6 Al Rajhi Bank 6.3 Bank 1,603 Bank Nat. Bank of Nat. Bank of SAMBA 42.
Slide 15: Building a geographically diversified footprint
Emirates NBD is building a geographically diversified footprint London, UK Branch (est. 1986) Tehran, Iran Representative Office (est. 2002) Jersey, Channel Islands Mumbai, India • Branch (est. 1990) Representative Office • Subsidiary Trust Co. (est. 2000) (est. 2001) Singapore UAE Representative
Slide 16: Market has responded positively to the merger
Market has responded positively to the merger Listing of Emirates NBD Merger terms Merger announced 16 announcement 7,000 14 6,000 12 5,000 10 4,000 8 3,000 6 2,000 7th Mar’ 07 12th July’ 07 15th Oct’ 07 EBI NBD ENBD DFM 15
Slide 17: Financial Overview and key Indicators
Introduction Rationale for the Merger Financial Overview and key Indicators Integration Update Strategic Focus Appendix 16
Slide 18: Emirates NBD has delivered strong growth in recent years
Emirates NBD has delivered strong growth in recent years Assets, $b Loans, $b 69 45 +27% +37% 45 30 30 19 18 21 12 13 15 17 8 10 5 6 2000 01 02 03 04 05 06 07 2000 01 02 03 04 05 06 07 Deposits, $b Equity, $b * 38 +13% 5.2 +23% 4.1 26 3.5 19 3.0 3.0 3.0 2.2 2.5 12 13 14 9 11 2000 01 02 03 04 05 06 0
Slide 19: and a strong profit growth
… and a strong profit growth Revenues, $m +25% 2,039 1,373 1,070 Net Profits, $m 674 823 438 462 537 2000 01 02 03 04 05 06 07 +23% 1,098 751 816 534 Costs, $m 404 250 260 319 +26% 941 2000 01 02 03 04 05 06 07 557 368 218 270 290 188 201 2000 01 02 03 04 05 06 07 Source: Newswires, Financial Statem
Slide 20: Diversified Business mix with growth in all segments
Diversified Business mix with growth in all segments… FY 2007, % Assets Revenues 100% = $69b 100% = $2,038m Wholesale* Islamic Wholesale* Islamic 8% 80% 8% 64% Retail 12% Retail 28% * Wholesale include Corporate Banking, Investment Banking, Investment management and Treasury; Also includes Associate
Slide 21: Balanced Loan Portfolio with High Degree of Security
Balanced Loan Portfolio with High Degree of Security Loan Portfolio Breakdown by Type – 2007 Loan Portfolio Breakdown by Sector – 2007 Bills Manufacturing Loans Others Construction Dis counte d 5% Agains t 6% 6% 1% Othe rs Trade Trus t 0% 5% Transport and Re ce ipts Personal 3% Com m unications 26%
Slide 22: Growth Supported by Strong Capital Base
Growth Supported by Strong Capital Base Emirates NBD : Capital Highlights – December 2007 • Total Capital * = USD 6,192m • Capital Adequacy Ratio = 13.2% • Tier 1 Capital = USD 4,955m • Tier 1 Ratio = 10.5% • Tier 2 Capital = USD 1,237m • Tier 2 / Tier 1 Ratio = 25% Capital Adequacy Ratio (%) Cost I
Slide 23: Wholesale Bank continues to deliver strong performance
Wholesale Bank continues to deliver strong performance CAGR Loans Highlights $b +50% 34.8 • Wholesale Banking comprises of services provided to Multinational, Large Local and Local Corporate as well as 23.2 Government linked institutions, Financial Institutions and Investment Institutions. • Product
Slide 24: Retail Bank has the largest distribution network and dominant market share
Retail Bank has the largest distribution network and dominant market share CAGR Loans $b Highlights +45% 5.0 • The combined entity has the largest distribution network in 3.5 UAE and highest market share in Loans and Deposits. • Investment in customer service has been a key focus for both banks, whi
Slide 25: Emirates Islamic Bank has achieved the fastest growth in UAE
Emirates Islamic Bank has achieved the fastest growth in UAE CAGR Assets Highlights $b +109% • Emirates Islamic Bank has become the fastest growing 5.3 Islamic bank in the UAE, since its inception in 2004. • The business has been more than doubling assets and 2.5 income every year and is rapidly inc
Slide 26: Key Performance Indicators: 2007 vs. 2006 (EBI)
Key Performance Indicators : 2007 vs. 2006 Total Income USD 1.15 bn 46% Total Costs USD 0.46 bn 46% Net Profit USD 0.65 bn 27% Basic & Diluted EPS USD 0.22 26% Return on Equity 24.3% 1.6% 25
Slide 27: Key Performance Indicators: 2007 vs. 2006 (NBD)
Key Performance Indicators : 2007 vs. 2006 Total Income USD 0.77 bn 53% Total Costs USD 0.28 bn 55% Net Profit USD 0.44 bn 44% Basic & Diluted EPS USD 0.28 45% Return on Equity 23.7% 4.5% 26
Slide 28: Net Interest Margins & Cost Income Ratio trends
Net Interest Margins & Cost Income Ratio trends Net Interest Margin 3.00 3.00 2.75 2.75 2.50 2.50 2.20 2.25 2.25 2.10 2.01 2.01 2.02 1.98 1.98 1.94 1.97 1.97 2.00 1.89 2.00 1.91 1.87 1.87 1.83 1.81 1.75 1.75 1.50 1.50 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'0
Slide 29: Balanced Income Streams
Balanced Income Streams Source of Operating Income 31% 39% 45% 44% 44% 45% 69% 61% 55% 56% 56% 55% 2002 2003 2004 2005 2006 2007 N et Interes t Inc om e F ees , C om m is s ion and O thers * Net Profit and ROE evolution US$m US$m 24.3% 23.7% 25.5% 22.6% 20.2% 19.2% 18.0% 17.0% 14.7% 13.0% 13.0% 651
Slide 30: Integration Update
Introduction Rationale for the Merger Financial Overview and key Indicators Integration update Strategic Focus Appendix 29
Slide 31: Integration Update
Integration Update Defined future strategy, target business and operating model. Formalized organization structure for the combined entity and appointed new management team. Developed integration implementation plan till mid 2009. Started co-location of teams from both banks. Started to le
Slide 32: Integration milestones going forward
Integration milestones going forward Electronic Retail channels integrated Rebranding across Same functionalities all branches across ATM network, Single Treasury completed – One mobile banking and system in place bank across all Internet Combined trading channels New brand coverage to both communic
Slide 33: Strategic Focus
Introduction Rationale for the Merger Financial Overview and key Indicators Integration Update Strategic Focus Appendix 32
Slide 34: 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 35: Emirates NBD Strategic Priorities
Emirates NBD Strategic Priorities 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 and NBD’s Suhail • Exp
Slide 36: Emirates NBD Strategic Priorities (Cont'd)
Emirates NBD Strategic Priorities (Cont’d) 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 Emirates Islamic
Slide 37: Appendix
Introduction Rationale for the Merger Financial Overview and key Indicators Integration Update Strategic Focus Appendix 36
Slide 38: Awards
Awards Named "Best Bank in the UAE for the Year 2007" by the Banker Magazine. Awarded JP Morgan Chase Quality Recognition Award. Community Recognition Award from Dubai Police. Name Best Bank in UAE for the fifth consecutive year by Global Finance Magazine. “Best Retail Bank in UAE 2006” aw
Slide 39: Awards (Cont'd)
Awards (Cont’d) Best trade finance provider in UAE for 2007 by Global Finance Magazine. Awarded 4th Middle East e-banking leadership award by Middle East Excellence Awards Institute. Emirates Post issued set of commemorative stamps to celebrate 30 years of Emirates Bank. “Best Retail Banking
Slide 40: Large Deals Concluded
Large Deals Concluded February 2007 May 2007 May 2007 June 2007 Pearl Azure Hotels Al Mazaya Holding Dubai Financial LLC Management LLC, Abu Company K.S.C.C & Union Properties PJSC Dhabi First Dubai Real Estate Pearl Azure Properties Development K.S.C.C. LLC, Dubai AED 2,500,000,000 AED 1,320,000,00
Slide 41: Large Deals Concluded (Cont'd)
Large Deals Concluded (Cont’d) August 2007 August 2007 November 2007 December 2007 Dubai Drydocks World Emirates Trading Nakheel PJSC Gulf General Investment LLC Agency LLC Company USD 1,725,000,000 USD 300,000,000 Syndicated Loan Syndicated Term Loan US$1,500,000,000 US$ 75,000,000 Facility Facilit
Slide 42: Large Deals Concluded
Large Deals Concluded Fal Oil Company Limited International Capital Oasis International Ahmad Hamad Algosaibi and Investment Group Trading LLC Leasing Company PJSC & Brothers Company Pvt. Ltd. US $408,000,000 US $416,100,000 US $500,000,000 US $700,000,000 Syndicated Loan Syndicated Loan Syndicated
Slide 43: Large Deals Concluded (Cont'd)
Large Deals Concluded (Cont’d) NAKHEEL PJSC VELCAN ENERGY DUBAI AEROSPACE RAK Investment ENTERPRISE Authority US $1,850,000,000 EUR 60,000,000 US $243,000,000 US $325,000,000 Syndicated Loan Equity Private Mezzanine Financing Sukuk Al Wakala Placement Joint Lead Arranger Placement Agent Arranger Joi