Slide 1: Q1 2018 Results Presentation
Q1 2018 Results Presentation 18 April 2018
Slide 2: Important Information
2 Important Information Disclaimer The material in this presentation is general background information about the activities of Emirates NBD Bank PJSC (Emirates NBD), current at the date of this presentation, and believed by Emirates NBD to be accurate and true. It is information given in summary for
Slide 3: Emirates NBD delivered a strong set of results in Q1-18
3 Emirates NBD delivered a strong set of results in Q1-18 Q1 2018 Key Metrics 2018 Macro themes Q1 2018 2018 Guidance Regional Global • Resilience of UAE • Emirates NBD’s economy balance sheet AED 2.4 Bn underpinned by positioned to Profit Net profit +27% y-o-y non-oil activity benefit from rising g
Slide 4: Q1-18 Financial Results Highlights
4 Q1-18 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Record quarterly net profit of AED 2,386 Mn for Q1- AED Mn Q1-18 Q1-17 Q4-17 (Worse) (Worse) 18 increased 10% q-o-q and 27% y-o-y Net interest income 2,984 2,486 20% 2,795 7% • Net interest income improved
Slide 5: Net Interest Income
5 Net Interest Income Highlights Net Interest Margin (%) 2.68 • NIMs continued to improve in Q1-18 as rate rises flowed through to the loan book and funding costs remained stable 2.62 2.68 due to healthy liquidity conditions 2.58 2.54 2.56 2.62 • Q1-18 NIM of 2.68% improved 17 bps q-o-q and 35 bps y
Slide 6: Loan and Deposit Trends
6 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +2% • Gross loans grew 2% in Q1-18 with growth mainly from consumer and 329 329 337 329 314 315 320 Islamic lending 303 310 294 226 227 233 242 242 243 249 221 225 • Corporate lending grew 2% since year- 215 end due to growth
Slide 7: Funding and Liquidity
7 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio (LCR) of 152.9% and AD ratio of 93.8% demonstrates healthy liquidity position • Liquid assets* of AED 68.6 Bn as at Q1-18 (16.4% of total 95.9 96.1 liabilities) 95.0 94.4 93.8 • Debt & Sukuk term funding
Slide 8: Capital Adequacy
8 Capital Adequacy Highlights Capitalisation BASEL II BASEL III • In Q1-18, CET 1 and Tier 1 ratios were broadly flat q-o-q as 20.7 21.2 21.2 20.2 20.3 the increase in Tier 1 capital from retained earnings offset the impact of IFRS 9 18.3 18.9 19.0 17.8 18.8 • CAR decreased 0.9% to 20.3% as AED 2.9
Slide 9: Non-Interest Income
9 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / Better / • Core gross fee income was flat q-o-q and AED Mn Q1-18 Q1-17 Q4-17 improved 4% y-o-y on account of higher fee (Worse) (Worse) income Core gross fee income 1,428 1,373 4% 1,432 (0%) • Non-interest income d
Slide 10: Operating Costs and Efficiency
10 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Q1-18 costs improved 3% q-o-q as lower marketing, IT and professional fees more 32.0 32.8 than offset a modest increase in staff 31.3 costs 30.9 30.8 31.1 • Costs increased 14% y-o-y in Q1-18 but 30.2 31.1 expected to be within
Slide 11: Credit Quality
11 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 127.9 • NPL ratio improved to 6.0% in Q1-18 124.9 124.5 122.5 123.5 • Impaired loans were unchanged at AED 20.3 Bn during Q1- 120.8 120.1 118.5 18 helped by AED 655 Mn of write backs & recoveries 113.5 • Q1-18 annualized cost of risk a
Slide 12: Divisional Performance: Retail Banking & Wealth Management
12 Divisional Performance • Revenues increased 7% y-o-y Balance Sheet Trends Revenue Trends • Net interest income grew 10% led by liabilities. Fee AED Bn +3% AED Mn +7% income grew 3% supported by FX and cards and +1% 0% Wealth Management represents 36% of total RBWM revenue Retail Banking & 137.1 1
Slide 13: Divisional Performance (cont'd): Wholesale Banking
13 Divisional Performance (cont’d) • Wholesale Banking revenues increased 20% y-o-y Balance Sheet Trends Revenue Trends • Loans grew 3% in Q1-18 due to growth in services and AED Bn -4% AED Mn +20% trade sectors. Deposits down 4% as expensive time +3% 4% deposits sourced over year-end rolled off in
Slide 14: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com