Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (September 2017)
30 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, September 2017
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation September 2017
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: UAE Economic Update
Operating Environment 3 UAE Economic Update Highlights Real GDP growth forecasts • Non-oil growth in the UAE appears to have accelerated in H1 2013 2014 2015 2016 2017F 2018F 2017, based on PMI survey data. However, OPEC’s decision to S. Arabia 2.7 3.7 4.1 1.7 0.5 2.5 extend output cuts through Q1 2
Slide 4: Dubai Economic Update (1/3)
Operating Environment 4 Dubai Economic Update (1/3) Highlights Composition of Dubai GDP • The Emirates NBD Dubai Economy Tracker Index was unchanged Dubai GPD by Sector (%) – Q1 2017 at 56.3 in August, signaling a solid expansion in the non-oil private sector last month Others Trade • Dubai’s econom
Slide 5: Dubai Economic Update (2/3)
Operating Environment 5 Dubai Economic Update (2/3) Highlights Dubai Airports passenger traffic • Passenger traffic at the Dubai International Airport (DXB) rose to 60 1600 51 million in H1 2017, up 5.9% y/y 50 1400 • Passenger traffic is expected to exceed 89 million at DXB by the 40 1200 end of 20
Slide 6: Dubai Economic Update (3/3)
Operating Environment 6 Dubai Economic Update (3/3) Highlights Dubai residential yield • Dubai residential property prices continued to decline in Jan-Aug Apts Yields (LHS) Villas Yields (RHS) 2017. Apartment price decline slowed sharply in 2017, up 0.8% y/y in August, compared with -7.1% y/y in Jan
Slide 7: UAE Banking Market Update
Operating Environment 7 UAE Banking Market Update Highlights Bank deposit and loan growth • Money supply (M2) slowed to 6.1% y/y in July compared with 18% Bank Loans (% y/y) Bank deposits (% y/y) AD ratio (RHS) 110% 7.3% y/y in June 2017 16% 14% 105% • Bank deposits increased by AED 3.1bn and 7.15%
Slide 8: Emirates NBD at a glance
Operating Environment 8 Emirates NBD at a glance A leading bank in the region Largest branch network in the UAE • Market share in the UAE (as at 30 June 2017) Dubai 101 Ras al-Khaimah (5) Abu Dhabi 27 - Assets 17.2%; Loans 19.1%; Deposits 20.1% Sharjah 18 Umm al-Quwain (2) • Leading retail banking f
Slide 9: Emirates NBD is the regional leader in digital innovation
Operating Environment 9 Emirates NBD is the regional leader in digital innovation 2012 2015 Introduced Direct Remit to Introduced New Pakistan Remit to ENBD Pay Dynamic IVR Pak in just 60 secs NFC based mobile contactless payment service Introduced Inaugurated Started Direct Remit to FutureLab multi
Slide 10: Emirates NBD is one of the largest banks in the GCC
Operating Environment 10 Emirates NBD is one of the largest banks in the GCC x% 2016 vs. 2015 Operating Income Net Profit * Loans Total Deposits USD Bn, 2016 USD Bn, 2016 USD Bn, 2016 USD Bn, 2016 Emirates NBD Profile 6.3 45% 3.4 10% 143 34% 139 28% 4.9 6% 2.5 7% 3% 79 85 8% Financial & Operating Pe
Slide 11: Profit and Balance Sheet Growth in Recent Years
Operating Environment 11 Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Profits (AED Bn) Revenues Costs Pre-Provision Operating Profits Net Profits +10% +11% +7% +30% 14.4 15.2 14.7 4.7 4.9 10.1 10.5 7.1 7.2 Emirates NBD Profile 4.4 9.9 4.2 11.9 3.8 10.2 2.4 7.7 5.1 7.4
Slide 12: Emirates NBD delivered a strong set of results in H1-17
Operating Environment 12 Emirates NBD delivered a strong set of results in H1-17 amidst an uncertain environment H1 2017 at a glance 2017 Macro themes H1 2017 vs. Regional Global 2017 guidance • Resilience of UAE • Emirates NBD’s economy balance sheet Emirates NBD Profile Profitability Net profit AE
Slide 13: H1-17 Financial Results Highlights
Operating Environment 13 H1-17 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 3,894 Mn for H1-17 improved 5% AED Mn H1-17 H1-16 H2-16 (Worse) (Worse) y-o-y Net interest income 5,185 5,099 2% 5,012 3% • Emirates NBD Profile Net interest income
Slide 14: Q2-17 Financial Results Highlights
Operating Environment 14 Q2-17 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 2,021 Mn for Q2-17 increased 8% AED Mn Q2-17 Q2-16 Q1-17 (Worse) (Worse) q-o-q and 6% y-o-y Net interest income 2,699 2,544 6% 2,486 9% • Emirates NBD Profile Net i
Slide 15: Net Interest Income
Operating Environment 15 Net Interest Income Highlights Net Interest Margin (%) 2.91 2.90 • NIMs improved 16 bps q-o-q as rate rises flowed into loan 2.83 2.80 2.85 yields and funding pressures receded. NIMs tightened 17 2.90 bps y-o-y on higher funding costs 2.85 2.82 Emirates NBD Profile • Loan yi
Slide 16: Non-Interest Income
Operating Environment 16 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / Better / • Core gross fee income declined 2% y-o-y and AED Mn Q2-17 Q2-16 Q1-17 (Worse) (Worse) 7% q-o-q on lower income from foreign exchange and derivatives partly due to fewer Core gross f
Slide 17: Operating Costs and Efficiency
Operating Environment 17 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • In Q2-17, costs improved by 7% y-o-y helped by a containment in staff costs 33.7 34.5 following cost control measures 32.6 implemented in 2016 32.0 Emirates NBD Profile 33.1 • Cost-to-Income Ratio improved
Slide 18: Credit Quality
Operating Environment 18 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved to 6.1% 118.5 120.8 120.1 122.5 123.5 111.5 113.5 • Impaired loans were steady at AED 20.2 Bn during 2017 99.6 helped by AED 696 Mn of write backs & recoveries in H1-17 76.1 66.2 Emirates NBD
Slide 19: Capital Adequacy
Operating Environment 19 Capital Adequacy Highlights Capitalisation • In Q2-17, Tier 1 ratio improved by 0.5% to 18.3% and CAR 20.5 20.5 21.2 20.2 20.7 increased by 0.5% to 20.7% 18.3 17.9 18.0 • Increase in Tier 1 capital from retained earning more than 18.7 17.8 offsetting modest increase in risk
Slide 20: Funding and Liquidity
Operating Environment 20 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio (LCR) of 157.3% and AD ratio of 118.5 95% demonstrates healthy liquidity position • Liquid assets* of AED 63.1 Bn as at Q2-17 (15.7% of total liabilities) 105.1 Emirates NBD Profil
Slide 21: Loan and Deposit Trends
Operating Environment 21 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans grew 5% in H1-17 with +6% good growth in Corporate lending +5% • Corporate lending grew 6% in H1-17 320 329 310 314 315 due to growth in real estate, trade and 294 303 FI sectors Emirates
Slide 22: Loan Portfolio Breakdown
Operating Environment 22 Profit and Balance Sheet Growth in Recent Years Total Gross Loans (AED 329 bn) Corporate Loans (AED 106 bn) Treasury/Other Cont. Corporate Trans. & com. Retail 7% 106 3% 35 (32%) Trade RE (11%) 0 14% 35% Emirates NBD Profile (0%) Manuf. 7% 52 1% (16%) Others** 136 8% Islamic
Slide 23: Divisional Performance: Retail Banking & Wealth Management
Operating Environment 23 Divisional Performance • Balance Sheet Trends Revenues increased 7% y-o-y and declined 2% q-o-q Revenue Trends • In Q2-17, fee income accounted for 33% of total AED Bn +7% AED Mn RBWM revenue +2% -2% Wealth Management • Loans grew 2% across a range of products particularly 1
Slide 24: Divisional Performance (cont'd): Wholesale Banking
24 Divisional Performance (cont’d) Operating Environment • Wholesale Banking revenues increased 12% q-o-q Balance Sheet Trends Revenue Trends and 11% y-o-y AED Bn 0% AED Mn • Loans grew 7% from end 2016 due to growth in real +7% +12% estate, trade and FI sectors Wholesale Banking 225.9 1,276 • Depos
Slide 25: Emirates NBD's core strategy building blocks
25 Emirates NBD’s core strategy is focused on the following building blocks Operating Environment Key Deliver an excellent customer Emirates NBD Profile Objective experience (with digital being the focus) Financial & Operating Performance Strategic Run an Drive Levers Drive core efficient geographic
Slide 26: Highlights of strategic achievements in 2016
Operating Environment 26 Highlights of strategic achievements in 2016 2016 Strategic Priorities Key Achievements • Extend servicing of products through online, • Won Best Bank in the Middle East, Best Bank in the UAE and Best Digital 1 mobile, social channels Bank in the Middle East at the Euromoney
Slide 27: Strategic priorities for 2017
Operating Environment 27 Strategic priorities for 2017 Pillars of our strategy Key focus areas 1 Deliver an excellent • Continue to deliver superior customer experience via investing into new digital channels, products, and capabilities customer experience (with digital being the • Reinforce ENBD’s
Slide 28: 2016 & H1 2017 Selected Awards
Operating Environment 28 2016 & H1 2017 Selected Awards Best Retail Bank in the Middle East’, ‘Best Retail Emirates NBD Profile ‘Smart Financial Services ‘Best equity house in the Bank in UAE’ and ‘Auto Loan ‘Top banking brand in the Excellence Award’ Middle East’ Product of the Year in Asia UAE’ Pa
Slide 29: Large Deals Concluded in H1 2017
Operating Environment 29 Large Deals Concluded in H1 2017 THE ISLAMIC REPUBLIC OF CITY LAND REAL ESTATE BANK FOR INVESTMENT AFREXIMBANK PUMA INTERNATIONAL PAKISTAN DEVELOPMENT AND DEVELOPMENT OF FINANCING S.A. VIETNAM USD 650,000,000 USD 142,741,748 USD 632,900,000 AND EUR USD 400 million 499,600,00
Slide 30: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com
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