26 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, November 2021
Slide 1: Investor Presentation Q3 2021
Investor Presentation Q3 2021 November 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: Agenda
1. Emirates NBD Profile 2. Financial & Operating Performance 3. Economic Environment 4. Divisional Performance
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 2021 Emirates NBD at a Glance USD 191 Bn USD 130 Bn USD 127 Bn Total Assets Gross Customer Loans Total Customer Deposits 13 906 17+ million Countries Branches Customers 3rd 2nd ~20% Largest lender in GCC Largest in UAE
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Emirates NBD’s International Presence Market share in the UAE* Moscow ➢ Assets 17.8%; Loans 22.2%; Deposits 20% London 9 1 1 Germany 17 ➢ Largest financial institution in Dubai, 3rd Austria largest lender in the GCC Turkey Beijing 689 1 ➢ Leading retail banking franchise wit
Slide 6: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Key Digital Developments • Liv. continues to expand; Liv. Prime (the first lifestyle-banking • 86% of all face-to-face card payment transactions now ‘contactless’ through subscription plan in the region) and Liv. Sure (General Mobile wallet Insurance products
Slide 7: ESG Performance - Key Sustainability Developments
ESG Performance - Key Sustainability Developments Key developments Community Outreach Certified with ISO 26000 CSR Label by Dubai Chamber Philanthropy • We contributed USD 24.5 million to the local community Environmental Sustainability in 2020 Volunteering – Exchanger Program • Working towards a si
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 at 30 September 2021 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai O
Slide 9: Emirates NBD is one of the largest banks in the GCC
Emirates NBD is one of the largest banks in the GCC… Total Assets Total Loans Total Deposits Total Income USD Bn, 30-Sep-2021 USD Bn, 30-Sep-2021 USD Bn, 30-Sep-2021 USD Mn, Q3 YTD 2021 295 215 213 5,623 268 137 165 5,598 241 129 157 5,032 191 115 128 4,714 155 115 127 4,356 118 69 70 2,447 9
Slide 10: …and one of the largest banks in the UAE
…and one of the largest banks in the UAE Total Income Net Profit Total Loans Coverage Ratio & NPLs (%) CET-1 Ratio (%) USD Mn, Q3 YTD 2021 USD Mn, Q3 YTD 2021 USD Bn, 30-Sep 2021 30-Sep 2021 30-Sep 2021 NPL% 2,511 129 127% 6.2% 16.1% 4,714 4,356 1,986 115 97% 3.9% 15.0% 1,035 69 88% 5.6% 13.8% 2,447
Slide 11: Consistently profitable due to diversified and resilient business model
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% 13.2% 6.3 6.1 4.7 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 2.0 1.4 0.9 0.6 0.7 0.7 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q3 2021 Y
Slide 12: Emirates NBD delivers strong performance in Q3 2021
Emirates NBD delivers strong performance in Q3 2021 on improving economic conditions Key Highlights Key Metrics Q3-21 YTD Strong performance recovery trend with Q3 2021 profit USD 0.7bn, and Net Profit CET 1 USD 2.0bn YTD, up 29% USD 2.0bn 16.1% +29% y-o-y UAE economic activity picking up and improv
Slide 13: Financial results highlights Q3 2021 YTD
Financial results highlights Q3 2021 YTD Highlights Income Expenses Risk Capital Liquidity Macro Divisional Better / Key Highlights Income Statement (USD bn) Q3-21 YTD Q3-20 YTD (Worse) Net interest income 3.4 3.7 (6)% • Strong Q3-21 results a continuation of recovery with net profit up 29% y-o-y No
Slide 14: Financial results highlights Q3 2021
Financial results highlights Q3 2021 Highlights Income Expenses Risk Capital Liquidity Macro Divisional Better / Better / Income Statement (USD bn) Q3-21 Q3-20 Q2-21 (Worse) (Worse) Key Highlights Net interest income 1.2 1.1 7% 1.1 10% Non-funded income 0.4 0.4 (13)% 0.4 0% • Net profit up 61% y-o-y
Slide 15: Net interest income
Net interest income Highlights Income Expenses Risk Capital Liquidity Macro Divisional Net Interest Margin (%) Key Highlights • Q3-21 NIM substantially improved 2.89 Quarterly NIM - Loan yields up on improved loan mix 2.82 YTD NIM - Lower funding cost on CASA growth and efficient deployment of liqui
Slide 16: Loans and deposits trends
Loans and deposits trends Highlights Income Expenses Risk Capital Liquidity Macro Divisional Gross Loans by Type (USD Bn) Key Highlights -1% • Gross loans flat in Q3 on significant demand for retail financing +0% 130 130 129 129 130 - Another record quarter for personal loans and credit cards - Corp
Slide 17: Non-funded income
Non-funded income Highlights Income Expenses Risk Capital Liquidity Macro Divisional Better / Better / Key Highlights Non-funded income (USD mn) Q3-21 Q3-20 Q2-21 (Worse) (Worse) 426 383 11% 437 (2)% • Q3-21 fee and commission income up 11% y-o-y Fee and Commission income - Higher transaction volume
Slide 18: Operating expenses
Operating expenses Highlights Income Expenses Risk Capital Liquidity Macro Divisional Cost to Income Ratio (%) Key Highlights 41.5 • Q3-21 expenses up 8% y-o-y and 3% q-o-q 35.3 34.0 - Higher staff cost on incentives related to strong retail growth 32.0 30.3 - Operating expenses up as business recov
Slide 19: Credit quality
Credit quality Highlights Income Expenses Risk Capital Liquidity Macro Divisional Impaired loans and allowances Key Highlights 6.2 6.1 6.3 10.1 • NPL ratio improved by 0.1% to 6.2% in Q3-21 due to recoveries and write-offs 6.0 9.5 9.8 9.9 6.2 9.3 8.1 8.1 8.0 • Coverage ratio strengthened 9.4% to 126
Slide 20: Capital adequacy
Capital adequacy Highlights Income Expenses Risk Capital Liquidity Macro Divisional Capital (USD billion) Key Highlights 23.6 1.4 19.8 2.5 • CET-1 ratio improved 1.1% during 2021 18.3 (0.1) 0.2 (0.6) 2.0 - USD 2.0bn of retained earnings - 1% increase in RWAs • Tier 1 ratio and CAR also strengthened
Slide 21: Funding and liquidity
Funding and liquidity Highlights Income Expenses Risk Capital Liquidity Macro Divisional Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 110 170 165.0 165.1 • LCR of 157.2% and ADR of 94.0% demonstrate healthy liquidity 161.7 158.8 160 157.2 105 150 • Liquid assets* of USD 19.6 b
Slide 22: UAE economy rebounding with 4.6% growth expected in 2022
UAE economy rebounding with 4.6% growth expected in 2022 Highlights Income Expenses Risk Capital Liquidity Macro Divisional UAE GDP growth Key Highlights 6 % y/y growth • Positive UAE economic outlook with Expo 2020 and easing of travel 4 4.6 restrictions expected to support recovery in tourism and
Slide 23: Dubai: Property and tourism sectors continue to recover
Dubai: Property and tourism sectors continue to recover Highlights Income Expenses Risk Capital Liquidity Macro Divisional Dubai GDP Profile Q1-2021 Key Highlights Other % of total Info. & Comms 14.9% • Data for Q1-21 shows Dubai’s economy grew strongly: 4.3% Wholesale & • Wholesale & retail trade g
Slide 24: Divisional performance
Divisional performance Highlights Income Expenses Risk Capital Liquidity Macro Divisional Key Highlights Increase / Operating Segment Metrics Q3-21 YTD (Decrease)* Retail Banking and Wealth Management Income (mn) 1,632 2% • Record acquisition leading to significant growth in retail financing Retail
Slide 25: DenizBank business overview
DenizBank business overview Highlights Income Expenses Risk Capital Liquidity Macro Divisional Better / Better / Income Statement (USD Mn) Q3-21 Q3-20 Q2-21 Key Highlights (Worse) (Worse) Net interest income 386 378 2% 341 13% • DenizBank contributed total income of USD 1,335m and net profit of USD
Slide 26: 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