Slide 1: Q3 2017 Results Presentation
Q3 2017 Results Presentation 30 October 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 Q3-17
3 Emirates NBD delivered a strong set of results in Q3-17 Q3 2017 YTD at a glance 2017 Macro themes Q3 2017 YTD vs. Regional Global 2017 guidance • Resilience of UAE • Emirates NBD’s Profitability Net profit AED 6.17 Bn economy balance sheet underpinned by positioned to benefit +15% y-o-y non-oil ac
Slide 4: Q3-17 YTD Financial Results
4 Q3-17 YTD Financial Results Highlights Key Performance Indicators Better / • Net profit of AED 6,170 Mn for Q3-17 YTD AED Mn Q3-17 YTD Q3-16 YTD (Worse) improved 15% y-o-y Net interest income 7,991 7,651 4% • Net interest income improved 4% y-o-y due to loan Non-interest income 3,428 3,634 (6%) gr
Slide 5: Q3-17 Financial Results Highlights
5 Q3-17 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 2,276 Mn for Q3-17 increased AED Mn Q3-17 Q3-16 Q2-17 (Worse) (Worse) 37% y-o-y and 13% q-o-q Net interest income 2,806 2,551 10% 2,699 4% • Net interest income improved 10% y-o-y due to
Slide 6: Net Interest Income
6 Net Interest Income Highlights Net Interest Margin (%) • While NIMS appear lower y-o-y due to funding costs, 2.85 average funding rates are being managed lower and, 2.80 together with rate rises flowing into loan yields, this has 2.82 resulted in a 7 bps improvement q-o-q 2.75 2.62 • Loan yields i
Slide 7: Loan and Deposit Trends
7 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +5% • Gross loans for Q3-17 YTD grew 5% 329 329 +5% with good growth in corporate lending 310 314 315 320 303 294 • Corporate lending for Q3-17 YTD grew 279 285 225 226 227 233 242 242 215 221 7% due to growth in real estate,
Slide 8: Funding and Liquidity
8 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio (LCR) of 139.1% and AD ratio of 94.4% demonstrates healthy liquidity position 97.2 • Liquid assets* of AED 67.9 Bn as at Q3-17 (16.8% of total 95.9 96.1 liabilities) 95.0 94.2 94.4 • Debt & Sukuk term fu
Slide 9: Capital Adequacy
9 Capital Adequacy Highlights Capitalisation 20.5 21.2 21.2 • In Q3-17, Tier 1 ratio improved by 0.5% to 18.8% and CAR 20.2 20.7 increased by 0.5% to 21.2% 18.0 18.3 18.8 18.7 17.8 • Increase in Tier 1 capital from retained earning more than 57.6 53.5 54.4 53.4 55.3 offsetting modest increase in ris
Slide 10: Non-Interest Income
10 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / • Core fee income improved 3% y-o-y driven by AED Mn Q3-17 YTD Q3-16 YTD growth in foreign exchange and credit card, trade (Worse) finance and processing fee income Core gross fee income 3,994 3,811 5% • Non-inter
Slide 11: Operating Costs and Efficiency
11 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Q3-17 YTD costs improved by 5% y-o-y 34.5 33.7 helped by a containment in staff costs following cost control measures implemented in 2016 33.1 32.7 32.0 • Costs increased in Q3-17 by 4% y-o-y as 30.9 Other Costs rose due to a co
Slide 12: Credit Quality
12 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 122.5 123.5 124.9 • NPL ratio improved to 6.1% during 2017 and held steady 114.5 111.5 113.5 118.5 120.8 120.1 q-o-q 109.0 • Impaired loans were steady at AED 20.1 Bn during 2017 helped by AED 1,052 Mn of write backs & recoveries 7.4 •
Slide 13: Wealth Management
13 Divisional Performance • Revenues increased 15% y-o-y and 7% q-o-q Balance Sheet Trends Revenue Trends AED Bn +1% AED Mn • Q3-17 fee income accounted for 35% of total RBWM revenue, up from 33% in the previous quarter 0% +7% Wealth Management • Loan growth was flat as a decline in micro-SME Retail
Slide 14: Wholesale Banking
14 Divisional Performance (cont’d) • Wholesale Banking revenues increased 19% y-o-y and Balance Sheet Trends Revenue Trends declined 3% q-o-q AED Bn +6% AED Mn • Loans grew 7% in 2017 due to growth in real estate, +7% -3% services and trade sectors. Deposits up 6% during 2017 Wholesale Banking • Net
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