Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q1 2023 Earnings Presentation
31 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, June 2023
Slide 1: Investor Presentation June 2023
Investor Presentation June 2023
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 (ements)
Slide 4: Emirates NBD is a leading bank in the MENAT Region
Emirates NBD is a leading bank in the MENAT Region AED Key Highlights AED AED 14.15 as of March 14.00 88bn Share Price As of 1 June 2023 4th 2nd 2023 Largest Bank in GCC Largest Bank in UAE Share Price Market Cap As of 8 June 2023 As of 8 June 2023 AED AED AED AED AED 4.05% 10.5bn 6bn Net Interest M
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, 670 Turkey one of the largest and most profitable in GCC 11 Austria 2. Leading retail banking franchise with a branch network of 874 branches throughout the 3 Germany MENAT region
Slide 6: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Overview Key Digital Developments digital bank by Emirates NBD with over 500,000 customers. • 90% of all face-to-face card payment transactions now ‘contactless’ through Mobile wallet Product suite expanded with innovative products including: • Continued to d
Slide 7: ESG Performance – Key developments
ESG Performance – Key developments 1. First female director elected to the Board in February 2022. 2. First UAE banking Group to commit to female leadership target, aiming for 25% women in senior management by 2027 3. Denizbank ranked top among Turkish private banks with 38% market share in agricult
Slide 8: ESG Finance and Investment
EmCap raised sustainable Raised first Sustainability- capital from 20 syndicated linked loan from a bank loan and debt capital from the Gulf region: market transactions in 2022 for clients in UAE, • KPI 1: Women in Senior Saudi Arabia, India, China, Management Singapore and Turkey • KPI 2: Reduction
Slide 9: 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 31 March 2023 • A flagship bank for the Government of Dubai and the UAE Others • Strong and supportive shareholder base from the Government of Duba
Slide 10: Emirates NBD is 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 Asset Total Deposit In USD mn In USD mn In USD bn In USD bn Q1 2023 2,849 1,641 324 227 2,554 1,545 323 213 2,325 1,105 260 163 1,832 1,076 213 148 1,806 1,072 207 147 1,065 512 137 85 10
Slide 11: Emirates NBD is a national champion, one of the two largest banks in the UAE
… and Emirates NBD is a national champion, 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 In AED mn In AED bn Q1 2023 As of 31 March 2023 NPL% As of 31 March 2023 10,463 6,022 494 231 1.9 15.8 6,730 3,934 470 152
Slide 12: Consistent profitability due to diversified and resilient business model
… with consistent profitability due to diversified and resilient business model Return on Average Tangible Equity (excluding 2019 NI gain) 11% 16% 20% 18% 19% 20% 17% 10% 13% 17% 30% 32.5 Total Income CAGR (13-22): 11% Net Profit CAGR (13-22): 15% 23.2 23.8 22.4 17.4 15.2 14.7 15.4 14.4 14.5 13.0 11
Slide 13: Economic Environment
Economic Environment (ements)
Slide 14: UAE economy rebounding with 8.0% growth in 2022 and 3.4% expected in 2023
UAE economy rebounding with 8.0% growth in 2022 and 3.4% expected in 2023 UAE GDP Growth 8.0 Key Highlights 8.0 % y/y 3.9 3.4 • UAE PMI rose to 56.6 in April 2023 with domestic economy driving growth 4.0 2.4 1.2 1.1 • UAE corporate tax will help to further diversify budget revenues 0.0 • Dubai’s sal
Slide 15: Dubai: Positioning for future growth
Dubai: Positioning for future growth Dubai property prices growth Real estate transactions 50 Existing properties Off plan Villas Apartments % y/y 40 35 30 30 20 25 Thousands 20 10 15 0 10 (10) 5 (20) 0 Dubai tourists Dubai occupancy rates and RevPAR (Jan-Apr) In million tourists 100 200 16.7 80 160
Slide 16: Financial & Operating Performance
Financial & Operating Performance
Slide 17: Executive Summary Q1 23 Results
Executive Summary Q1 23 Results Key Metrics and Guidance Key Highlights Profit Income NIM Record AED 10.5 bn AED 6 bn AED 10.5 bn 4.05% Record quarterly profit of AED 6 bn quarterly income on Guidance on higher income & improved loan & deposit +119% +64% 3.8-4.0% strong recoveries mix coupled with h
Slide 18: Emirates NBD's profit rises 119% YoY to AED 6 bn
Emirates NBD’s profit rises 119% YoY to AED 6 bn on strong diversified income growth and healthy recoveries Income Statement Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ (All figures are in AED bn) Net interest income 7.2 4.3 69% 7.7 (7)% Key Highlights Non-funded income 3.3 2.1 54% 2.1 55% Total income 10.5 6.4
Slide 19: NIMs trending towards guidance range
NIMs trending towards guidance range on collective impact of rate rises, deposit mix and Turkish regulations Net Interest Margin (%) 4.40 Key Highlights Quarterly NIM YTD NIM 4.05 • Q1-23 NIM up 145 bps y-o-y due to improved loan & deposit mix and higher interest 4.05 rates 3.57 • Q1-23 NIM down 35
Slide 20: Non-funded Income
Non-funded Income Non-funded income Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Key Highlights (All figures are in AED mn) • Healthy trend in fee and commission income, 32% higher y-o-y from increased local Fee and Commission income 2,016 1,527 32% 1,870 8% and international retail card business at both ENBD an
Slide 21: Improving loans and deposit mix
Improving loans and deposit mix Gross Loans by Type* (AED bn) 1% Key Highlights 470 • Gross lending up 3% in Q1-23 463 463 457 456 - Retail lending up 6% with strong demand across all products 65 66 66 69 73 - Corporate lending up 1% 88 - DenizBank’s gross loans up 6% after FX 91 94 95 101 DenizBank
Slide 22: Credit quality improving with market leading coverage
Credit quality improving with market leading coverage Impaired loans and allowances Key Highlights 55 6.4 6.1 5.8 6.0 5.6 100% • NPL ratio improved by 0.4% to 5.6% in Q1-23 on continued strong writebacks and recoveries 99% 37.9 37.9 39.4 39.8 37.7 • Coverage ratio strengthened 7% to 152% in Q1-23 35
Slide 23: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights 30.8% • Q1-23 cost to income ratio at 25.3% within guidance reflecting stronger 30.8% 29.1% income enabling continued acceleration of investment for growth 28.7% 28.2% • Staff costs increased y-o-y on incenti
Slide 24: Funding & Liquidity remains very healthy
Funding & Liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights ADR % LCR % 187 99 182 • LCR of 187% and ADR of 80% demonstrate healthy liquidity 180 95 157 155 • Liquid assets* of AED 74 billion cover 11% of total liabilities, 14% of deposits 152 91 • AE
Slide 25: Capital ratios remain solid
Capital ratios remain solid Capital (AED bn) Key Highlights • CET-1 ratio improved by 0.4% to 15.8% during Q1-23 as AED 5.6 bn of net earnings more than offset 3% increase in RWAs • Capital ratios well above 11% / 12.5% / 14.5% CBUAE min. requirement • CET-1 at 15.3% excluding ECL regulatory add-bac
Slide 26: Divisional Performance
Divisional Performance Operating Segment Metrics Q1-23 %∆ YoY Key Highlights 3,855 Retail Banking and Wealth Management had an excellent first quarter with its highest ever Income (mn) 39% revenue, strongest ever disbursement of loans and credit cards, and a stable, diverse deposit 949 base Expense
Slide 27: Appendix
Appendix (ements)
Slide 28: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights 182% 51% 87% 1,128 1,270 1,047 978 844 687 571 547 524 505 477 466 451 Dec-20 Dec-21 Dec-22 Jun-20 Jun-21 Jun-22 Sep-20 Sep-21 Sep-22 Mar-20 Mar-21 Mar-22 Mar-23 • Turkish CPI grew by 182% over preceding three-years and by 51% in the precedi
Slide 29: Income Statement
Income Statement Excluding DenizBank Income Statement Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ (All figures are in AED bn) Net interest income 7.2 4.3 69% 7.7 (7)% 5.8 3.0 93% 5.1 15% 1.4 1.2 11% 2.6 (48)% Non-funded income 3.3 2.1 54% 2.1 55% 2
Slide 30: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ (All figures are in USD bn) Net interest income 2.0 1.2 69% 2.1 (7)% 1.6 0.8 93% 1.4 15% 0.4 0.3 11% 0.7 (48)% Non-funded income 0.9 0.6 54
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