Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — H1 2024 Earnings Presentation
17 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Jul 18, 2024
Slide 1: Results Presentation H1 2024
Results Presentation| H1 2024 18 July 2024
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 that could cause actual results, and the Group’s plans and objectives, information given in summary form and does not pu
Slide 3: Executive Summary H1 2024 Results Key Metrics and Guidance
Executive Summary H1 2024 Results Key Metrics and Guidance Record AED 13.8 bn Healthy net-interest Profit Income NIM profit in H1-24 on income growth on higher net interest strong loan & deposit income & strong mix propelled by AED 13.8 bn AED 21.4 bn 3.59% recoveries increased regional +5% q-o-q +1
Slide 4: AED 13.8 bn record H1 profit rises 12% y-o-y on diversified net interest income growth
AED 13.8 bn record H1 profit rises 12% y-o-y on diversified net interest income growth and healthy recoveries Income Statement (All figures are in AED bn) H1-24 H1-23 %∆ YoY Q2-24 %∆ YoY %∆ QoQ Key Highlights Net interest income 15.4 14.4 6% 7.9 10% 7% • Group profit up 12% y-o-y to a record AED 13.
Slide 5: NIMs improving as DenizBank margin benefiting from loan repricing
NIMs improving as DenizBank margin benefiting from loan repricing and stabilisation in funding costs Net Interest Margin (%) Key Highlights Quarterly NIM • Q2-24 NIM up 13bps q-o-q to 3.65% as DenizBank NIMs increased on improved YTD NIM 3.96 4.08 4.05 loan pricing and stable funding costs 3.65 • H1
Slide 6: Strong client flows driving fee & commission income growth
Strong client flows driving fee & commission income growth Key Highlights Non-funded income Q2-24 Q2-23 %∆ YoY Q1-24 %∆ QoQ (All figures are in AED m) • Healthy trend in Net Fee and Commission Income, up 56% y-o-y and 5% q-o-q Fee and Commission income 3,273 1,993 64% 2,986 10% from increased invest
Slide 7: Business loan and deposit growth momentum continues
Business loan and deposit growth momentum continues Gross Loans by Type Key Highlights (AED bn) 6% • Loans up 6% by AED 27bn in H1-24 on very strong underlying growth – Lending surpasses AED 500 bn milestone 494 492 508 – Record retail lending up 14% in H1-24 with healthy demand across all products
Slide 8: Credit quality continues to significantly improve
Credit quality continues to significantly improve Impaired loans and allowances Key Highlights NPLs 5.6% 5.5% 4.6% 4.4% 4.2% 100% • NPL ratio improved by 0.4% to 4.2% in H1-24 on strong writebacks, recoveries, write-offs and repayments Coverage 60.0 147% 145% 163% 153% 145% 99% • Stage 2 loans reduc
Slide 9: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights 33.0% • Cost to Income ratio at 28.6% for H1-24, comfortably within guidance, with continued investment for growth supported by income 32.4% 28.8% 28.6% • Cost to Income ratio expected to be in the 30% range
Slide 10: Funding & liquidity remains very healthy
Funding & liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 90 ADR % LCR % • LCR of 199% and ADR of 76% demonstrate healthy liquidity 240 217 • Liquid assets* of AED 110 bn cover 14% of total liabilities, 18% of deposits 210 85 199 • AED 20 bn of term
Slide 11: Total Capital ratio strong at 18.0%
Total Capital ratio strong at 18.0% Capital Key Highlights (AED bn) • 15.4% CET-1 ratio strengthened in H1-24 as retained earnings more than offset 9% growth in RWAs • Credit RWA increase from strong Retail and Corporate loan growth • CET-1 at 15.3% excluding ECL regulatory add back • Capital ratios
Slide 12: Divisional Performance
Divisional Performance Operating Segment Metrics H1-24 H1-23 %∆ YoY Key Highlights 8,910 7,948 Retail Banking and Wealth Management (RBWM) had an excellent first half of the year with the highest Income (mn) 12% ever revenue, strongest ever loan acquisition and a substantial growth in balance sheet
Slide 13: Appendix
Appendix es MMI ae (; gnibgll cs Silo Ul iy Emirates NBD
Slide 14: Financial Results Highlights H1-24
Financial Results Highlights H1-24 Excluding DenizBank Income Statement H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ (All figures are in AED bn) Net interest income 15.4 14.4 6% 7.9 7% 12.7 12.0 6% 6.4 2% 2.7 2.4 10% 1.6 38% Non-funded income 6.0 6.
Slide 15: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ (All figures are in USD bn) Net interest income 4.2 3.9 6% 2.2 7% 3.5 3.3 6% 1.7 2% 0.7 0.7 10% 0.4 38% Non-funded income 1.6 1.9 (12)% 0.8
Slide 16: Hyperinflation
Hyperinflation 324% 72% Key Highlights 2,319 2,139 1,859 1,691 1,352 1,270 1,128 1,047 978 844 687 571 547 Sep-21 Sep-22 Jun-23 Sep-23 Mar-22 Jun-21 Jun-22 Jun-24 Mar-23 Mar-24 Dec-21 Dec-22 Dec-23 • Turkish CPI grew by 324% over preceding cumulative three-years and by 72% in the preceding 12 months
Slide 17: nibgll cys silo cLis
nibgll cys silo cLis Emirates NBD