Slide 1: Results Presentation Q3 2021
Results Presentation Q3 2021 20 October 2021
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 information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to
Slide 3: Emirates NBD delivers strong performance in Q3 2021 on improving economic conditions
Emirates NBD delivers strong performance in Q3 2021 on improving economic conditions Key Highlights Key Metrics Q3-21 YTD Strong performance recovery trend with Q3 2021 profit AED 2.5bn, and Net Profit CET 1 AED 7.3bn YTD, up 29% AED 7.3bn 16.1% +29% y-o-y UAE economic activity picking up and improv
Slide 4: Financial results highlights Q3 2021 YTD
Financial results highlights Q3 2021 YTD Highlights Income Liquidity Risk Expenses Capital Divisional Better / Key Highlights Income Statement (AED bn) Q3-21 YTD Q3-20 YTD (Worse) Net interest income 12.6 13.4 (6)% • Strong Q3-21 results a continuation of recovery with net profit up 29% y-o-y Non-fu
Slide 5: Financial results highlights Q3 2021
Financial results highlights Q3 2021 Highlights Income Liquidity Risk Expenses Capital Divisional Better / Better / Income Statement (AED bn) Q3-21 Q3-20 Q2-21 (Worse) (Worse) Key Highlights Net interest income 4.4 4.1 7% 4.1 10% Non-funded income 1.3 1.5 (13)% 1.3 0% • Net profit up 61% y-o-y with
Slide 6: Net interest income
Net interest income Highlights Income Liquidity Risk Expenses Capital Divisional Net Interest Margin (%) Key Highlights • Q3-21 NIM substantially improved 2.89 Quarterly NIM - Loan yields up on improved loan mix 2.82 YTD NIM - Lower funding cost on CASA growth and efficient deployment of liquidity 2
Slide 7: Funding and liquidity
Funding and liquidity Highlights Income Liquidity Risk Expenses Capital Divisional Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 110 170 165.0 165.1 • LCR of 157.2% and ADR of 94.0% demonstrate healthy liquidity 161.7 158.8 160 157.2 105 150 • Liquid assets* of AED 71.8 billion
Slide 8: Loans and deposits trends
Loans and deposits trends Highlights Income Liquidity Risk Expenses Capital Divisional Gross Loans by Type (AED Bn) Key Highlights -1% +0% • Gross loans flat in Q3 on significant demand for retail financing 476 479 472 475 475 - Another record quarter for personal loans and credit cards - Corporate
Slide 9: Credit quality
Credit quality Highlights Income Liquidity Risk Expenses Capital Divisional Impaired loans and allowances Key Highlights 6.2 6.1 6.3 37.1 • NPL ratio improved by 0.1% to 6.2% in Q3-21 due to recoveries and write-offs 6.0 35.0 36.1 36.4 6.2 34.0 29.8 29.7 29.2 • Coverage ratio strengthened 9.4% to 12
Slide 10: Non-funded income
Non-funded income Highlights Income Liquidity Risk Expenses Capital Divisional Better / Better / Key Highlights Non-funded income (AED mn) Q3-21 Q3-20 Q2-21 (Worse) (Worse) 1,565 1,405 11% 1,605 (2)% • Q3-21 fee and commission income up 11% y-o-y Fee and Commission income - Higher transaction volume
Slide 11: Operating expenses
Operating expenses Highlights Income Liquidity Risk Expenses Capital Divisional Cost to Income Ratio (%) Key Highlights 41.5 • Q3-21 expenses up 8% y-o-y and 3% q-o-q 35.3 34.0 - Higher staff cost on incentives related to strong retail growth 32.0 30.3 - Operating expenses up as business recovers 33
Slide 12: Capital adequacy
Capital adequacy Highlights Income Liquidity Risk Expenses Capital Divisional Capital (AED billion) Key Highlights 86.7 • CET-1 ratio improved 1.1% during 2021 5.0 - AED 7.3bn of retained earnings 9.1 (0.5) 0.8 (2.1) 72.6 - 1% increase in RWAs 67.1 7.3 • Tier 1 ratio and CAR also strengthened consid
Slide 13: Divisional performance
Divisional performance Highlights Income Liquidity Risk Expenses Capital Divisional Increase / Key Highlights Operating Segment Metrics Q3-21 YTD (Decrease)* Retail Banking and Wealth Management Income (mn) 5,989 2% • Record acquisition leading to significant growth in retail financing Retail Bankin
Slide 14: DenizBank business overview
DenizBank business overview Highlights Income Liquidity Risk Expenses Capital Divisional Better / Better / Income Statement (AED Mn) Q3-21 Q3-20 Q2-21 Key Highlights (Worse) (Worse) Net interest income 1,418 1,386 2% 1,250 13% • DenizBank contributed total income of AED 4,900m and net profit of AED
Slide 15: Thank you
Thank you Investor Relations Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046