Slide 1: H1 2017 Results Presentation
H1 2017 Results Presentation 19 July 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: Emirates NBD delivered a strong set of results in H1-17 amidst an uncertain environment
3 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 Profitability Net profit AED 3.89 Bn economy balance sheet underpinned by positioned to benef
Slide 4: H1-17 Financial Results
4 H1-17 Financial Results 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% • Net interest income improved 2% y-o-y as loan Non-interest income 2,268 2,
Slide 5: Q2-17 Financial Results Highlights
5 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% • Net interest income improved 6% y-o-y as loan Non
Slide 6: Net Interest Income
6 Net Interest Income Highlights Net Interest Margin (%) • NIMs improved 16 bps q-o-q as rate rises flowed into loan 2.83 2.85 yields and funding pressures receded. NIMs tightened 17 2.80 bps y-o-y on higher funding costs 2.82 • Loan yields improved 8 bps q-o-q as loans reset at higher 2.76 2.75 2.6
Slide 7: Loan and Deposit Trends
7 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +6% • Gross loans grew 5% in H1-17 with 329 +5% good growth in Corporate lending 310 314 315 320 294 303 • Corporate lending grew 6% in H1-17 279 285 271 215 221 225 226 227 233 242 due to growth in real estate, trade and 209
Slide 8: Funding and Liquidity
8 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio (LCR) of 157.3% and AD ratio of 95% demonstrates healthy liquidity position 97.2 • Liquid assets* of AED 63.1 Bn as at Q2-17 (15.7% of total 95.9 96.1 liabilities) 95.0 94.2 • Debt & Sukuk term funding r
Slide 9: Capital Adequacy
9 Capital Adequacy Highlights Capitalisation 20.5 20.5 21.2 20.2 20.7 • In Q2-17, Tier 1 ratio improved by 0.5% to 18.3% and CAR increased by 0.5% to 20.7% 17.9 18.3 18.0 18.7 17.8 • Increase in Tier 1 capital from retained earning more than 53.5 54.4 53.4 55.3 51.8 offsetting modest increase in ris
Slide 10: Non-Interest Income
10 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 7% q-o-q on lower income from foreign (Worse) (Worse) exchange and derivatives partly due to fewer Core gross fee income 1,283 1,313
Slide 11: Operating Costs and Efficiency
11 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • In Q2-17, costs improved by 7% y-o-y 34.5 33.7 helped by a containment in staff costs following cost control measures 32.6 implemented in 2016 33.1 • Cost-to-Income Ratio improved further in 32.3 32.7 30.9 Q2-17 as the 2% increa
Slide 12: Credit Quality
12 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 123.5 • NPL ratio improved to 6.1% 118.5 120.8 120.1 122.5 114.5 111.5 113.5 109.0 • Impaired loans were steady at AED 20.2 Bn during 2017 103.2 helped by AED 696 Mn of write backs & recoveries in H1-17 • H1-17 cost of risk at 76 bps (
Slide 13: Divisional Performance: Retail Banking & Wealth Management
13 Divisional Performance • Revenues increased 7% y-o-y and declined 2% q-o-q Balance Sheet Trends 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 Retail Banking & mortga
Slide 14: Divisional Performance (cont'd): Wholesale Banking
14 Divisional Performance (cont’d) • 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 • Deposits held steady from e
Slide 15: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com