Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q1 2021 Earnings Presentation
16 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Apr 20, 2021
Slide 1: Results Presentation Q1 2021
Results Presentation Q1 2021 20 April 2021
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 delivers higher profits and maintains strong balance sheet in Q1 2021
Emirates NBD delivers higher profits and maintains strong balance sheet in Q1 2021 Key Metrics 2021 Macro themes 2021 Regional Global Q1 2021 Guidance Profit Net Profit NIM AED 2.3bn +12% y-o-y 2.46% Insert subtitle Emirates NBD maintains good profitability• UAE 2.35-2.45% and non-oila strong GDP ba
Slide 4: Q1 2021 Financial results highlights
Q1 2021 Financial results highlights Highlights Key performance indicators • Total income up 25% q-o-q due to increased transactional activity during Q1-21 and Better / Better / higher NIMs. Total income down 10% y-o-y as higher non-funded income was offset by AED million Q1-21 Q1-20 Q4-20 (Worse) (
Slide 5: Net interest income
Net interest income Highlights Net Interest Margin (%) • Q1-21 NIM increased by 4 bps to 2.46% as improved deposit mix more than offset the expected decline in DenizBank NIMs Qtrly NIM YTD NIM • Loan yields were stable q-o-q reflecting modest change in short term interest rates in 3.11 recent quarte
Slide 6: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) • Q4-20 LCR of 165.1% and ADR of 95.0% demonstrate the Group’s continuing healthy LCR (%) ADR (%) liquidity position 250 LCR % ADR % • Liquid assets* of AED 88 billion cover 14% of total liabilities and 19% of depo
Slide 7: Loans and deposits trends
Loans and deposits trends Highlights Trend in Gross Loans by Type (AED billion) • Gross loans declined 1% in Q1-21 due to repayments of corporate loans including loans DenizBank Retail 0% receiving support and the FX translation impact on DenizBank’s loan book Corporate Islamic* -1% • Retail lending
Slide 8: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved by 0.1% to 6.1% in Q1-21 due to corporate recoveries and DenizBank FX translation 126.6 NPL ratio Coverage ratio 125.8 • Coverage ratio further strengthened to 125.1% during Q1-21 123.9 120.5 125.1 • Q1-21 cost of ris
Slide 9: Impairment allowances and Stage 1, 2 and 3 Coverage
Impairment allowances and Stage 1, 2 and 3 Coverage Highlights Impairment allowances and Coverage % • Stage 1 coverage ratio remains healthy at 1.1% with AED 4.5 bn of impairment allowances Stage 1 Stage 2 Stage 3 • Stage 2 impairment allowances boosted to AED 6.9 bn, strengthening the coverage rati
Slide 10: Non-funded income
Non-funded income Highlights Composition of Non-Funded Income (AED million) • Core gross income up 77% q-o-q with increased contribution from all sources Better / AED million Q1-21 Q1-20 (Worse) • Core gross income improved q-o-q on higher transaction volumes coupled with increase in foreign exchang
Slide 11: Operating expenses
Operating expenses Highlights Cost to Income Ratio (%) • Q1-21 expenses down 9% q-o-q from the impact of earlier cost management initiatives and lower marketing expenses CI Ratio (YTD) CI Ratio (QTD) • Q1-21 expenses y-o-y improved 9% on lower staff and operating expenses, and lower Target 41.5 cost
Slide 12: Capital adequacy
Capital adequacy Highlights Capitalisation 18.5 17.9 18.5 19.1 18.5 19.0 • CET-1 ratio improved 0.6% during Q1-21 driven by AED 2.3bn of retained earnings and a 18.0 17.4 17.9 17.4 16.8 17.3 AED 2.2bn reduction in RWAs 14.8 15.3 15.6 15.0 15.6 15.3 • The decline in RWAs is due to lower Market Risk a
Slide 13: Divisional performance (excluding DenizBank)
Divisional performance (excluding DenizBank) Retail Banking & Wealth Management • RBWM income up 4% q-o-q as higher volumes drove 14% increase in non funded income Balance Sheet Trends AED billion Income Trends AED billion • Net interest income stable compared to the previous quarter and lower y-o-y
Slide 14: Divisional performance (excluding DenizBank)
Divisional performance (excluding DenizBank) Corporate and Institutional Banking • CIB income up 8% q-o-q as non funded income improved 26% on higher business Balance Sheet Trends AED billion Income Trends AED billion volumes and net interest income improved 2% -3% -11% • Income down 11% y-o-y due t
Slide 15: DenizBank business overview
DenizBank business overview Business Overview Financial Highlights Better / Better / • DenizBank contributed total income of AED 2,039m and net profit of AED 642m to the AED million Q1-21 Q1-20 Q4-20 (Worse) (Worse) Group for Q1-21 • Q1-21 net cost of risk of 285 bps compared to 430 bps in Q1-20 and
Slide 16: 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