Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — FY2020 Earnings Presentation
27 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, March 2021
Slide 1: Emirates NBD FY 2020 Results Presentation
Emirates NBD FY 2020 Results Presentation March 2021 Presentation Title 1
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: Agenda
1. Emirates NBD Profile 2. Financial & Operating Performance 3. Economic Environment 7 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 December 2020 Emirates NBD at a Glance USD 190 Bn USD 130 Bn USD 126 Bn Total Assets Gross Customer Loans Total Customer Deposits 13 915 17+ million Countries Branches Customers 3rd 2nd ~20% Largest in GCC* Largest in the UAE* M
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Emirates NBD’s International Presence Market share in the UAE* ➢ Assets 17.5%; Loans 21.8%; Moscow Deposits 19.9% London 15 1 1 Germany 19 Austria ➢ Largest financial institution in Dubai, 3rd largest in the GCC Turkey Beijing 695 1 ➢ Leading retail banking franchise Bahrain
Slide 6: Emirates NBD is one of the largest banks in the GCC
Emirates NBD is one of the largest banks in the GCC % FY20 vs. FY19 Total Assets Net Loans Total Deposits Net Profit USD Bn, 31-Dec 2020 USD Bn, 31-Dec 2020 USD Bn, 31-Dec 2020 USD Bn, FY 2020 YoY 203 8% 3.3 -16% 9% 7% 282 199 147 4% 3.1 0% 12% 1% 250 121 2% -5% 126 -2% 2.9 -16% 190 105 2.8 4% 18% 9
Slide 7: Strong track record of profitability
Strong track record of profitability Consistently profitable due to diversified and resilient business model 9.1% 9.3% 8.8% 10.5% 15.7% 19.7% 18.0% 18.8% 20.3% 16.5% 9.5% 6.3 6.1 4.7 4.1 4.2 3.9 4.0 4.0 3.2 2.6 2.7 2.8 2.7 2.3 1.9 2.0 1.9 1.4 0.9 0.6 0.7 0.7 2010 2011 2012 2013 2014 2015 2016 2017 2
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 Highlights Ownership structure as at 31 Dec 2020 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai via Investm
Slide 9: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Key Digital Developments • The lifestyle digital bank for millennials - launched its innovative • Committed to continue with safe operations during C-19 situation – digital credit card offering a truly customized experience, and leveraging contactless sales a
Slide 10: Good profitability and strong balance sheet despite challenging 2020
Emirates NBD maintains good profitability and a strong balance sheet despite challenging conditions in 2020 Key Metrics 2021 Macro themes 2020 2021 FY 2020 Regional Global Guidance Guidance • Continued strong USD 2.0bn Government and Operating Profit • Roll-out of -29% y-o-y Regulatory support to va
Slide 11: FY 2020 Financial results highlights
FY 2020 Financial results highlights Highlights Key performance indicators • Total income improved 4% y-o-y on higher net interest income from the Better / USD million FY 2020 FY 2019 full-year inclusion of DenizBank, partially offset by a decline in non-funded (Worse) income due to lower transactio
Slide 12: Q4-20 Financial results highlights
Q4-20 Financial results highlights Highlights Key performance indicators Better / Better / • Total income down 28% y-o-y due to lower net interest income and USD million Q4-20 Q4-19 Q3-20 (Worse) (Worse) lower volumes as a result of Covid-19 and declined 13% q-o-q Net interest income 1,102 1,380 (20
Slide 13: Net interest income
Net interest income Highlights Net Interest Margin (%) • FY 2020 NIM of 2.65% declined 24 bps as reduction in loan yields more than offset lower funding costs following base rate cuts in H1-20 and Qtrly NIM YTD NIM DenizBank positive contribution 3.11 • Loan yields declined 140 bps y-o-y which offse
Slide 14: Loan and deposit trends
Loan and deposit trends Highlights Trend in Gross Loans by Type (USD billion) • Gross loans grew 3% in 2020 mainly from Corporate and Islamic financing • Corporate lending grew 3% during 2020 mainly in manufacturing, transport and communication, real estate and financial institutions sectors DenizBa
Slide 15: Non-funded income
Non-funded income Highlights Composition of Non-Funded Income (USD million) • YTD core gross income declined 2% y-o-y on account of lower Better / USD million FY 2020 FY 2019 transactional activity from the Covid-19 impact offsetting the (Worse) increase from full year inclusion of DenizBank Core gr
Slide 16: Operating costs
Operating costs Highlights Cost to Income Ratio (%) • Q4-20 costs y-o-y improved 18% on lower staff and operating expenses, and lower costs from DenizBank CI Ratio (YTD) CI Ratio (QTD) Target • Q4-20 costs q-o-q up 13% due to completion of cost management initiatives, and digital and marketing inves
Slide 17: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio increased 20 bps to 6.2% in Q4-20 127.3 125.8 126.6 • Coverage ratio at 117.3% remains strong 123.9 • 2020 cost of risk increased to 163 bps (383 bps for DenizBank and 114 bps 120.5 Emirates NBD) from 117 bps in 2019 reflectin
Slide 18: 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 maintained at healthy 1.1% in 2020 with USD 1.3bn Stage 1 Stage 2 Stage 3 of Stage 1 impairment allowances • Stage 2 coverage ratio improved to 21.1% in 2020 from 15% at end 2
Slide 19: Capital adequacy
Capital adequacy Highlights Capitalisation 20.9 • In Q4-20, Capital ratios declined by 0.6% due to allowance for 2020 18.5 17.9 18.5 19.1 18.5 Proposed Dividend 19.8 18.0 17.4 16.8 17.3 17.4 16.6 15.3 14.8 15.3 15.6 15.0 • USD 0.4 billion increase in retained earnings in Q4-20 offset the 2% increase
Slide 20: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) LCR (%) LCR % ADR % • Q4-20 LCR of 165.0% and AD ratio of 95.6% demonstrate the Group’s continuing healthy liquidity position 250 ADR (%) 198.8 • Liquid assets* of USD 27.5bn at Q4-20 (16% of total liabilities and
Slide 21: Liquidity within the UAE banking system remains healthy
Liquidity within the UAE banking system remains healthy Highlights Bank loan and deposit growth 10 110 • The gross advances to deposits ratio for the UAE remained healthy % y/y AD Ratio (RHS) Bank Deposits (LHS) % at 94.4% in December 2020 Bank Loans (LHS) 8 • Growth in the UAE bank deposits was up
Slide 22: UAE economy expected to grow to 1.4% in 2021
UAE economy expected to grow to 1.4% in 2021 Highlights UAE oil production and prices • Emirates NBD’s research team expects real GDP growth for 2021 to 3.4 90 recover to 1.4% in the UAE, with the non-oil sector expected to grow by UAE oil output (LHS) Brent oil (RHS) 80 3.5%. Economic growth is als
Slide 23: Dubai: reasons for optimism in the second half of the year
Dubai: reasons for optimism in the second half of the year Highlights Dubai Residential transactions • Dubai Land Department figures show that property transaction volumes are 50 Thousands back to pre-pandemic levels, with Q4-20 transactions up 8% compared to 2018 2019 2020 Q1-20 just before the loc
Slide 24: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Retail Banking & Wealth Management • RBWM income declined 5% y-o-y due to lower fee income as Balance Sheet Trends USD billion Income Trends USD million volumes were impacted by Covid-19, whilst net interest income maintained 2019 levels +8% -5% • Liabili
Slide 25: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Corporate and Institutional Banking • CIB income was down 5% y-o-y due to a 4% decline in net interest income Balance Sheet Trends USD billion Income Trends USD million on lower interest rates that was partially offset by lending growth +13% -5% • Non-fun
Slide 26: DenizBank Business Overview
DenizBank Business Overview Business Overview Financial Highlights Better / Aug-Dec • DenizBank contributed total income of USD 367m and net profit of USD USD million** Q4-20 Q4-19 FY-20 (Worse) 2019 35m to the Group for Q4-20 Net interest income 360 454 (21)% 1,544 690 • DenizBank contributed total
Slide 27: Investor Relations
I N V E S T O R R E L AT I O N S Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046 27