Slide 1: Results Presentation | FY 2023
Results Presentation | FY 2023 25 January 2024
Slide 2: Important information
Important information Disclaimer The material in this presentation is general background information about that could cause actual results, and the Group’s plans and objectives, Emirates NBD's activities current at the date of the presentation. It is to differ materially from those expressed or impl
Slide 3: Executive Summary FY 23 Results Key Metrics and Guidance
Executive Summary FY 23 Results Key Metrics and Guidance Record profit of AED Profit Income NIM 21.5 bn in 2023 on higher income & strong Highest ever income on strong loan & deposit mix AED 21.5 bn AED 43.0 bn 3.95% recoveries coupled with healthy trend in Guidance fee & commission in 2023 +65% +32
Slide 4: Consistently strong returns on equity
Consistently strong returns on equity Return on Average Tangible Equity (excluding 2019 NI gain) 11% 16% 20% 18% 19% 20% 17% 10% 13% 17% 24% Total Income CAGR (2013-2023): 14% Net Profit CAGR (2013-2023): 21% 43.0 32.5 23.2 23.8 22.4 21.5 17.4 14.4 15.2 14.7 15.4 14.5 11.9 13.0 10.0 9.3 7.2 8.3 7.1
Slide 5: Building the Bank of The Future
Building the Bank of The Future Where we stand … Where we are heading … Transformed from a local bank to a regional powerhouse operating 850 Six Strategic Pillars Additional innovative products and branches across 13 countries services on ENBD X, providing the premier one-stop banking & wealth manag
Slide 6: AED 21.5 bn record profit rises 65% y-o-y on strong diversified income growth
AED 21.5 bn record profit rises 65% y-o-y on strong diversified income growth and healthy recoveries income growth and healthy recoveries Income Statement FY'23 FY'22 %∆ YoY Q4-23 %∆ YoY %∆ QoQ (All figures are in AED bn) Key Highlights Net interest income 30.1 23.2 30% 7.8 2% - Non-funded income 12
Slide 7: NIMs: optimising low cost of funds
NIMs: optimising low cost of funds Net Interest Margin (%) Key Highlights Quarterly NIM • FY23 NIM up 52 bps y-o-y due to improved loan mix & favourable low-cost 4.40 YTD NIM deposit base and higher interest rates 4.05 3.96 4.08 3.95 • Q4-23 NIM down 27 bps q-o-q on higher funding costs at ENBD and
Slide 8: Strong client flows driving non-funded income growth
Strong client flows driving non-funded income growth Non-funded income FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ Key Highlights (All figures are in AED m) Fee and Commission income 8,959 7,004 28% 2,561 37% • Healthy quarterly trend in fee and commission income from increased local & international retail card
Slide 9: Business loan and deposit growth momentum continues
Business loan and deposit growth momentum continues Gross Loans by Type (AED bn) Key Highlights 5% • Gross lending up 5% in 2023 on very strong underlying growth - Retail lending up 19% with healthy demand across all products 479 494 481 456 470 - Corporate lending up 18% on strong origination throu
Slide 10: Credit quality improves significantly
Credit quality improves significantly Impaired loans and allowances Key Highlights 6.0 5.6 5.6 5.5 4.6 100% • NPL ratio improved by 1.4% to 4.6% in 2023 on strong writebacks, 99% recoveries and write-offs 39.4 39.8 39.3 39.2 40 35.8 • NPL guidance revised to 4-5% 98% 27.3 26.2 26.8 27.0 163 • 71 bps
Slide 11: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights 33% 32.4% • Cost to Income ratio at 27.2% for 2023, comfortably within guidance with continued acceleration of investment for growth supported by income 29.1% • Q4-23 Cost to Income ratio of 32.4% increased f
Slide 12: Funding & liquidity remains very healthy
Funding & liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 100 ADR % LCR % • LCR of 210% and ADR of 76% demonstrate healthy liquidity 217 95 210 220 • Liquid assets* of AED 96 billion cover 13% of total liabilities, 16% of deposits 187 190 90 182 • A
Slide 13: Total capital ratio strong at 17.6%
Total capital ratio strong at 17.6% Capital (AED bn) Key Highlights • 14.9% CET-1 ratio slightly lower y-o-y on significant increase in proposed dividend and 17% increase in RWAs • Credit RWA increase from strong Retail and Corporate loan growth • DenizBank RWAs increase due to loan growth and incre
Slide 14: Divisional performance
Divisional performance Operating Segment Metrics FY'23 FY'22 %∆ YoY Key Highlights Income (mn) 16,211 12,401 31% Retail Banking and Wealth Management (RBWM) had a remarkable 2023 with highest ever annual 4,319 3,498 revenue, strongest ever loan acquisition and substantial balance sheet growth Expens
Slide 15: Appendix
Appendix So aE a) IT i 7] ; mrs i i hh ” Eee Lie peut ee oe | ) Soe "7 (Cemen 60 years together
Slide 16: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights 268% 65% 124% 1,859 1,691 1,352 1,270 1,128 1,047 978 844 687 571 547 524 505 Sep-21 Sep-22 Sep-23 Dec-20 Dec-21 Dec-22 Dec-23 Jun-21 Jun-22 Jun-23 Mar-21 Mar-22 Mar-23 • Turkish CPI grew by 268% over preceding three-years and by 65% in the
Slide 17: Financial Results Highlights FY23
Financial Results Highlights FY23 Excluding DenizBank Income Statement FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ (All figures are in AED bn) Net interest income 30.1 23.2 30% 7.8 - 24.1 15.7 54% 6.1 3% 6.0 7.6 (21)% 1.7 (10)% Non-funded income 12
Slide 18: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ FY'23 FY'22 %∆ YoY Q4-23 %∆ QoQ (All figures are in USD bn) Net interest income 8.2 6.3 30% 2.1 - 6.6 4.3 54% 1.7 3% 1.6 2.1 (21)% 0.5 (10)% Non-funded income 3.5 2.5 39%
Slide 19: years together
60 years together