National Bank Of Fujairah · ADX:NBF
National Bank Of Fujairah — FY2019 Earnings Presentation
27 slides from National Bank Of Fujairah's earnings presentation, February 2020
Slide 1: Investor Presentation for the Year Ended 31 December 2019
PRESENTATION TITLE GOES HERE TITLE CAN EXTEND UP TO HERE Your project title goes here DD/MM/YYY The date comes here INVESTOR PRESENTATION For the Year Ended 31 December 2019
Slide 2: Disclaimer
DISCLAIMER The information contained herein has been prepared by National Bank of Fujairah PJSC (NBF). NBF relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. This presentation has been prepared for informational purposes only and
Slide 3: Overview of NBF
01 OVERVIEW OF NBF 2/16/2020
Slide 4: Overview of National Bank of Fujairah
OVERVIEW OF NATIONAL BANK OF FUJAIRAH National Bank of Fujairah PJSC Overview Financial Highlights National Bank of Fujairah PJSC ("NBF“ or the “Bank") was AED mn FY2016 FY2017 FY2018 FY2019 established in Fujairah, UAE in 1982 by a decree issued by Total Assets 35,668 36,656 39,783 42,805 the Rul
Slide 5: External Recognition
EXTERNAL RECOGNITION “Best Corporate Bank UAE” and “Best Commercial Bank UAE” – The Banker Middle East UAE Industry Awards (2019, 2018, 2017, 2016 and 2015). “Best Customer Service - Corporate and Investment Banking”, “Best SME Trade Finance Offering” and “Best Treasury Management” – Banker Midd
Slide 6: Market Share Progression
MARKET SHARE PROGRESSION Bank Assets Capital and Reserves 1.5% 1.5% 1.1% 1.1% 2013 2019 2013 2019 Net Credit Bank Deposits 1.8% 1.8% 1.2% 1.2% 2013 2019 2013 2019 Ssource: Central Bank Statistical Bulletin October 2019 Available at : https://www.centralbank.ae/en/statistics/monthly-statistics 6
Slide 7: Key Financials at a Glance
KEY FINANCIALS AT A GLANCE Assets Loans & Advances Customer Deposits AED Billion AED Billion AED Billion 42.8 31.9 39.8 26.2 27.1 30.5 35.7 36.7 24.1 27.9 22.8 25.9 30.0 19.7 21.6 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Shareholders’ Equity Operating Income Net Pro
Slide 8: Key Performance Indicators at a Glance
KEY PERFORMANCE INDICATORS AT A GLANCE ROAA ROAE Cost to Income 36.8% 2.0% 34.4% 33.7% 33.2% 33.0% 14.6% 1.6% 12.3% 1.4% 1.3% 1.3% 10.4% 10.0% 9.6% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Non-Interest Income to Total Provision Coverage Ratio NPL Ratio Income 33.9%
Slide 9: Operating Performance
OPERATING PERFORMANCE Key Highlights Total Interest Income Composition Operating profit saw a growth of 8.8% to AED 1,145mn in AED Million Investments and Islamic instruments 2019 as compared to 2018, which was achieved through Due from banks including the UAE Central Bank CDs strong core business
Slide 10: Assets Composition
ASSETS COMPOSITION Key Highlights Assets and Advances Total assets increased by 7.6% from year end 2018, inline AED Million Total Assets Advances with NBF's growth strategy. 42,805 39,783 The majority of the Bank’s assets are loans and advances 35,668 36,656 and Islamic financing receivables (63
Slide 11: Investment and Islamic Instruments
INVESTMENT AND ISLAMIC INSTRUMENTS Investments and Islamic Instruments by Ratings Breakdown of Investments and Islamic Instruments by Stage 31 December 2019 17.1% 7.3% 31 December 2019 11.5% 1.3% 100.0% Stage 1 19.0% Stage 2 24.6% 12.5% Stage 3 6.7% AAA AA AA- A+ A A- BBB+ BELOW BBB+ Investments and
Slide 12: Asset Quality
ASSET QUALITY Key Highlights Non-Performing Loans & NPL Ratio Given the current downturn being experienced by the broader economy and its AED Million impact on asset quality, NBF’s NPL ratio has been maintained under 6% levels. 5.53% 5.44% 5.60% NBF has further strengthened its credit underwriting s
Slide 13: Liquidity Position
LIQUIDITY POSITION Key Highlights Liquid Assets NBF maintains prudent and high quality of liquidity AED Million Cash and balances with the UAE Central Bank Due from banks and financial institutions* commensurate to its liquidity risk profile evident by its 84.8% LDR. 1,603 1,044 770 669 Eligible
Slide 14: Funding Profile
FUNDING PROFILE Funding Mix Customer Deposits 31 December2019 AED Million 3.2% Demand and margin Savings Fixed term and notice Total 14.8% Due to banks 31,950 30,472 27,865 6.7% Customer deposits and Islamic customer 25,938 deposits 21,613 0.7% Term borrowings 22,274 21,696 18,949 18,068 15,161 Othe
Slide 15: Strong Capitalisation
STRONG CAPITALISATION Key Highlights Equity Breakdown Capital Base AED Million NBF is well capitalized with a Capital Adequacy Ratio and AED Million Share Capital Reserves Retained Earnings Total CET1 Additional Tier 1 Total Tier 2 Total Tier 1 Ratio of 17.8% and 16.6% respectively, as at 31 Decem
Slide 16: Dividend and AT1 Capital Coupon
DIVIDEND AND AT1 CAPITAL COUPON Overview Dividend Payout Ratio Proposed dividend is 13.5% for 2019 representing 10.0% cash dividend and 3.5% bonus shares. 20.0% Annual coupon amount on outstanding AT1 capital of AED 1,285.6 million at 5.875% equals to AED 75.5 million. As at 31 December 15.0% 15
Slide 17: NBF Performance and Outlook
NBF PERFORMANCE AND OUTLOOK Key Metrics2 FY 2019 Target Return on Average Equity 9.6% 10% Profit NIM 2.7% 2.5% – 3.0% Cost to income 33.0% <35% Asset growth 7.6% Industry Average Assets Loan growth 3.4% Industry Average CET 1 12.9% 12%-14% Capital Tier 1 16.6% 15%-17% CAR 17.8% 16%-18% AD ratio 84.8
Slide 18: Business Overview
02 BUSINESS OVERVIEW 2/16/2020
Slide 19: Overview of Business Segments
OVERVIEW OF BUSINESS SEGMENTS NBF offers a full range of products through five main business divisions Corporate NBF's largest segment in terms of assets, liabilities and profit. Contribution to Assets and Services include deposit facilities, credit/trade finance and ancillary services to large
Slide 20: Corporate and Institutional Banking (CIB)
CORPORATE AND INSTITUTIONAL BANKING ("CIB") Overview Gross Loans – Sector Breakdown The Bank’s CIB operations are split into three The principal CIB products and services offered by 31 December 2019 main sub-divisions: the Bank include: 8.0% 2.2% Trade 1. Corporate Banking 1. Transaction Banking
Slide 21: Business Banking
BUSINESS BANKING Overview Gross Loans – Sector Breakdown Offers a variety of products and services to SME clients and also offers transactional and deposit services to 31 December 2019 0.2% SME businesses. 9.2% Trade Manages clients with a turnover between AED 10 million to AED 250 million. 39.9
Slide 22: Retail Banking
RETAIL BANKING Overview Gross Loans – Product Mix 31 December 2019 NBF’s retail banking segment offers a wide The principal retail client products and services range of products and services to individuals offered by the Bank include: 0.9% 0.1% and high net worth clients. Account Services NB
Slide 23: Treasury, ALM and Other
TREASURY, ALM AND OTHER Overview Operating Income Mix Treasury and ALM Trading & Market Risk Solutions 31 December 2019 Centralizes and manages the Group's liquidity via an Provision of efficient & competitive FX Pricing advanced ALM system. Solutions for NBF Clients through diverse 10.6% AL
Slide 24: Islamic Banking
ISLAMIC BANKING Overview Gross Loans – Sector Breakdown The principal Sharia’a-compliant retail products and services offered by the NBF Islamic include: 31 December 2019 Account Services Corporate Advisory, Syndications, Treasury 25.7% Standard Current, Saving & Corporate Market Risk Solution
Slide 25: Thank You
Thank you THANK YOU © 2019 National Bank of Fujairah. All rights reserved. The content herein has been prepared by National Bank of Fujairah PJSC (NBF). This is for your reading and reference only, it is prohibited without pre-approval of NBF to copy, share, or reproduce the content herein in any fo
Slide 26: Appendix
03 APPENDIX 2/16/2020
Slide 27: IFRS 9 – Exposure and ECL Mix
IFRS 9 – EXPOSURE AND ECL MIX Overview ECL Mix The principal factors contributing to the movement are : (i) Movement in total outstanding balances [funded + unfunded + limits impact] (ii) Change in risk ratings (iii) Term structure of contracts 67.7% 61.9% 77.3% (iv) DPD changes and (v) Moody’s ch
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