Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — FY2023 Earnings Presentation
42 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, February 2024
Slide 1: Investor Presentation February 2024
Investor Presentation February 2024
Slide 2: Important Information
Important Information Disclaimer that could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or implied in the forward- The material in this presentation is general background information about looking statements. Emirates NBD's activities current
Slide 3: Emirates NBD Profile
Emirates NBD Profile 6 ees 100 fi
Slide 4: Emirates NBD is a leading bank in the MENAT Region
Emirates NBD is a leading bank in the MENAT Region Region’s AED AED most profitable bank 4th 2nd 18.40 115bn Largest Bank in GCC Largest Bank in UAE US$ 5.9bn in FY’23 By Assets By Assets +42% in 2023 Share Price Market Cap As of 25 Jan 2024 As of 25 Jan 2024 AED AED AED AED AED 3.95% 43.0bn 21.5bn
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Key Highlights Emirates NBD’s International Presence 1. Largest financial institution in Dubai, 639 Turkey one of the largest and most profitable in GCC 11 Austria 2. Leading retail banking franchise with a branch network of 850 branches throughout the 3 Germany MENAT region
Slide 6: 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 of January 2024 Investment • A flagship bank for the Government of Dubai and the UAE Corporation • Strong and supportive shareholder base from the Gov
Slide 7: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Overview Key Digital Developments is Emirates NBD’s digital-only bank with over 450K customers. • Migrated UAE’s retail customer base of 1M+to mobile banking superapp It is focused on fulfilling the unique financial needs of ENBD X, which has 150+ services (i
Slide 8: Building the Bank of The Future
Building the Bank of The Future Where we stand … Where we are heading … Transformed from a local bank to a regional powerhouse operating 850 Six Strategic Pillars Additional innovative products and branches across 12 countries services on ENBD X, providing the premier one-stop banking & wealth manag
Slide 9: One of the largest and most profitable banks in the MENAT region
Emirates NBD is one of the largest and most profitable banks in the MENAT region… Total Income Net Profit Total Assets Total Deposits In USD mn In USD mn In USD bn In USD bn FY’2023 11,724 5,864 338 235 10,571 5,336 318 207 9,224 4,496 274 159 7,480 4,432 235 157 7,342 4,304 215 153 4,593 2,234 154
Slide 10: Emirates NBD is a national champion, most profitable bank in the UAE
… and the Emirates most NBD profitable is a national bank inchampion, the UAE One of the two largest banks in the UAE Total Income Net Profit Total Gross Loans Coverage Ratio & NPLs (%) CET-1 Ratio (%) In AED mn 11 In AED mn In AED bn FY’2023 As of 31 Dec 2023 NPL% As of 31 Dec 2023 43,028 21,521 50
Slide 11: Economic Environment
Economic Environment 6 ees 100 fi
Slide 12: Non-oil GDP growth of 4.0% expected in 2024
Non-oil GDP growth of 4.0% expected in 2024 UAE GDP Growth Key Highlights 7.9 • The Dubai PMI rose to a 16-month high of 57.7 in December 4.4 3.6 3.3 4.0 2023, indicating a strong end to the year for the private sector. 1.1 • Record international visitors to Dubai at 17.15 mn in 2023, up 19% y/y and
Slide 13: Dubai: Positioning for future growth
Dubai: Positioning for future growth Dubai property prices growth Real estate transactions 30 25 Dubai apartments Dubai villas 40,000 Existing properties Off plan % y/y sales prices 20 35,000 15 30,000 10 5 25,000 0 20,000 -5 15,000 -10 10,000 -15 5,000 Jul-15 Jul-16 Jan-17 Jul-17 Jul-18 Jul-19 Jul-
Slide 14: Financial & Operating Performance
Financial & Operating Performance
Slide 15: Executive Summary FY 23 Results
Executive Summary FY 23 Results Key Metrics and Guidance Record profit of AED Profit Income NIM 21.5 bn in 2023 on higher income & strong Highest ever income on strong loan & deposit mix AED 21.5 bn AED 43.0 bn 3.95% recoveries coupled with healthy trend in Guidance fee & commission in 2023 +65% +32
Slide 16: Consistently strong returns on equity
Consistently strong returns on equity Return on Average Tangible Equity (excluding 2019 NI gain) 11% 16% 20% 18% 19% 20% 17% 10% 13% 17% 24% Total Income CAGR (2013-2023): 14% Net Profit CAGR (2013-2023): 21% 43.0 32.5 23.2 23.8 22.4 21.5 17.4 14.4 15.2 14.7 15.4 14.5 11.9 13.0 10.0 9.3 7.2 8.3 7.1
Slide 17: AED 21.5 bn record profit rises 65% y-o-y
AED 21.5 bn record profit rises 65% y-o-y on strong diversified income growth and healthy recoveries income growth and healthy recoveries Income Statement FY'23 FY'22 %∆ YoY Q4-23 %∆ YoY %∆ QoQ (All figures are in AED bn) Key Highlights Net interest income 30.1 23.2 30% 7.8 2% - Non-funded income 12
Slide 18: NIMs: optimising low cost of funds
NIMs: optimising low cost of funds Net Interest Margin (%) Key Highlights Quarterly NIM • FY23 NIM up 52 bps y-o-y due to improved loan mix & favourable low-cost 4.40 YTD NIM deposit base and higher interest rates 4.05 3.96 4.08 3.95 • Q4-23 NIM down 27 bps q-o-q on higher funding costs at ENBD and
Slide 19: Strong client flows driving non-funded income growth
Strong client flows driving non-funded income growth Non-funded income FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ Key Highlights (All figures are in AED m) Fee and Commission income 8,959 7,004 28% 2,561 37% • Healthy quarterly trend in fee and commission income from increased local & international retail card
Slide 20: Business loan and deposit growth momentum continues
Business loan and deposit growth momentum continues Gross Loans by Type (AED bn) Key Highlights 5% • Gross lending up 5% in 2023 on very strong underlying growth - Retail lending up 19% with healthy demand across all products 479 494 481 456 470 - Corporate lending up 18% on strong origination throu
Slide 21: Credit quality improves significantly
Credit quality improves significantly Impaired loans and allowances Key Highlights 6.0 5.6 5.6 5.5 4.6 100% • NPL ratio improved by 1.4% to 4.6% in 2023 on strong writebacks, 99% recoveries and write-offs 39.4 39.8 39.3 39.2 40 35.8 • NPL guidance revised to 4-5% 98% 27.3 26.2 26.8 27.0 163 • 71 bps
Slide 22: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights 33% 32.4% • Cost to Income ratio at 27.2% for 2023, comfortably within guidance with continued acceleration of investment for growth supported by income 29.1% • Q4-23 Cost to Income ratio of 32.4% increased f
Slide 23: Funding & liquidity remains very healthy
Funding & liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 100 ADR % LCR % • LCR of 210% and ADR of 76% demonstrate healthy liquidity 217 95 210 220 • Liquid assets* of AED 96 billion cover 13% of total liabilities, 16% of deposits 187 190 90 182 • A
Slide 24: Total capital ratio strong at 17.6%
Total capital ratio strong at 17.6% Capital (AED bn) Key Highlights • 14.9% CET-1 ratio slightly lower y-o-y on significant increase in proposed dividend and 17% increase in RWAs • Credit RWA increase from strong Retail and Corporate loan growth • DenizBank RWAs increase due to loan growth and incre
Slide 25: Divisional performance
Divisional performance Operating Segment Metrics FY'23 FY'22 %∆ YoY Key Highlights Income (mn) 16,211 12,401 31% Retail Banking and Wealth Management (RBWM) had a remarkable 2023 with highest ever annual revenue, strongest ever loan acquisition and substantial balance sheet growth Expense (mn) 4,319
Slide 26: ESG Developments
ESG Developments 6 ees 100 fi
Slide 27: Emirates NBD Principal Banking Partner at COP28
Emirates NBD Principal Banking Partner at COP28 Delivering ESG Solutions for a greener future Principal Banking Partner Emirates NBD’s COP 28 program Carbon Trading introduced as Recognised as Best Bank for ESG in the UAE at the Euromoney CO2 Emirates NBD becomes 1st UAE Excellence Awards 2023 bank
Slide 28: Examples of ENBD's Existing Eligible Green and Social Loans
Examples of ENBD’s Existing Eligible Green and Social Loans Solar Park Construction Circular manufacturing unit Agricultural water treatment plant Circular manufacturing unit which uses 100% waste Large concentrated solar park in UAE paper/cardboard as raw material to produce Large agricultural wast
Slide 29: Emirates NBD Sustainability Strategy
Emirates NBD Sustainability Strategy Emirates NBD commits to both regional and international sustainability development goals which enhances the overall agenda for sustainable business strategy and management approach. Sustainability Approach Sustainability Governance ▪ Emirates NBD’s sustainability
Slide 30: Environmental, Social, and Governance Commitment
Environmental, Social, and Governance Commitment ESG is embedded into the culture, operations and strategy of Emirates NBD. Our ESG commitment are integrated to all our business divisions and across all our subsidiaries, with qualitative and qualitative targets as highlighted below. Environmental So
Slide 31: ESG 2023 Highlights
ESG 2023 Highlights Strong regional Green Bond Launch of Emirates NBD Best Bank for ESG in origination credentials, helping Sustainable Finance the UAE at the Euromoney raise USD 20 billion Framework in 2023. Excellence Awards 2023. through 40 Green Bond issues in 2023 1st bank in the MENAT region t
Slide 32: ESG Journey
ESG Journey Emirates NBD’s ESG commitment over the years have enhanced, covering larger and wider aspects of ESG principles. Our journey has been fruitful, and we expect further development in the upcoming years given the plan to standardize the ESG practices and contributions. ▪ Emirates NBD and De
Slide 33: Sustainable Finance Framework
Sustainable Finance Framework Bringing a diverse and robust ESG financing Framework to the market The Framework allows Emirates NBD to issue Green, Social and/or Sustainability debt instruments including Sharia’h compliant financing or investments. Debt instruments issued under the Framework are ful
Slide 34: Strong Second Party Opinion
Strong Second Party Opinion Provided by ISS ESG The Framework is aligned to ICMA principles and in line with best market practices Emirates NBD demonstrates its contribution to sustainability and to the UAE’s government’s sustainable strategies. ICMA Pillars Aligned ✔ ▪ Emirates NBD’s green/social c
Slide 35: Indicative Eligible Asset Portfolio
Indicative Eligible Asset Portfolio Eligible Green Assets Portfolio* Eligible Social Assets Portfolio* Green Buildings 82% Access to Essential Services 87% Renewable Energy 10% Affordable Housing 11% Clean Transportation 3% Pollution Prevention 3% Energy Efficiency 2% Employment Generation & Unemplo
Slide 36: Use of Proceeds: Green Project Categories
Use of Proceeds Green Project Categories UNSDG GBP Category Eligibility Criteria Alignment • New and existing residential, commercial or mixed use buildings that meet the minimum external green building certification level including (but not limited to): • LEED, Leadership in Energy and Environment
Slide 37: Use of Proceeds: Social Project Categories
Use of Proceeds Social Project Categories UNSDG SBP Category Eligibility Criteria Alignment • Financing dedicated to healthcare facilities: • Construction and/or operation of healthcare facilities such as hospitals and primary care facilities, affiliated to the relevant national healthcare system Ac
Slide 38: Appendix
Appendix So aE a) IT i 7] ; mrs i i hh ” Eee Lie peut ee oe | ) Soe "7 (Cemen 60 years together
Slide 39: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights 268% 65% 124% 1,859 1,691 1,352 1,270 1,128 1,047 978 844 687 571 547 524 505 Sep-21 Sep-22 Sep-23 Dec-20 Dec-21 Dec-22 Dec-23 Jun-21 Jun-22 Jun-23 Mar-21 Mar-22 Mar-23 • Turkish CPI grew by 268% over preceding three-years and by 65% in the
Slide 40: Financial Results Highlights FY23
Financial Results Highlights FY23 Excluding DenizBank Income Statement FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ (All figures are in AED bn) Net interest income 30.1 23.2 30% 7.8 - 24.1 15.7 54% 6.1 3% 6.0 7.6 (21)% 1.7 (10)% Non-funded income 12
Slide 41: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ (All figures are in USD bn) Net interest income 8.2 6.3 30% 2.1 - 6.6 4.3 54% 1.7 3% 1.6 2.1 (21)% 0.5 (10)% Non-funded income 3.5 2.5 39%
Slide 42: years together
60 years together