Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q3 2011 Earnings Presentation
18 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Oct 24, 2011
Slide 1: Emirates NBD Q3 2011 Results Presentation
Emirates NBD Q3 2011 Results Presentation October 24, 2011 1
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: Q3 2011 Financial Results Highlights
Q3 2011 Financial Results Highlights Q3 2011 Financial Results Highlights Key Performance Indicators Net profit of AED 175 million, -59% vs. Q3 AED million Q3 2011 Q3 2010 Change Q2 2011 Change 2010 and -77% vs. Q2 2011 (%) (%) Net interest income grew 13% q-o-q and Net interest income 1,950 1,7
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) NIM of 2.96% at Q3 2011 improved by 43 bps 3.01 Qtrly NIM 2.96 from 2.53% in Q2 2011: 2.85 o higher loan spreads due to declining 2.76 average Eibor rates during Q3 2011 2.65 2.60 2.59 2.57 2.51 2.53 o continued positive impact in Q3 2011 of 2
Slide 5: Non Interest Income
Non Interest Income Highlights Composition of Non Interest Income (AED million) Non-interest income declined by 24% y-o-y AED million Q3 2011 Q3 2010 Change Q2 2011 Change and 22% q-o-q due to: (%) (%) o lower investment securities income in Q3 Core gross fee income 646 633 +2% 626 +3% 2011 Fees &
Slide 6: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) Costs increased by 3% q-o-q and 17% y-o-y Cost to income ratio (YTD) to AED 850 million in Q3 2011 resulting from 38.5 continued investment in future growth across 37.6 37.4 advertising and marketing costs, and 35.8 35.7 expansion
Slide 7: Credit Quality
Credit Quality Key Messages Impaired Loans & Coverage Ratios (%) • Q3 2011 impairment charge of AED 1,571 101% 102% 99% million driven by: 94% 90% – Specific provision of AED 950 million 82% 80% made in relation to the AED 4.7 billion Target underlying coverage ratio of 80-85% exposure to a Dubai GR
Slide 8: Capital Adequacy
Capital Adequacy Highlights Capital Ratios - Basel II (AED billion) Capital adequacy remained stable q-o-q at 20.1% 20.1% 21.2% 21.1% 18.7% CAR 21.1% and T1 13.4% 11.9% 12.8% 12.7% 13.4% 13.4% Tier 1 capital increased by AED 1.1 billion in 10.5% Q3 2011 YTD due to net profit generation partly 43
Slide 9: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit Ratios (%) Headline LTD ratio of 107% at Q3 2011 due to Headline LTD Ratio % balance sheet management initiatives and 129% 126% 127% increased deposit competition in the sector 122% 117% 119% 118% 118% The LTD ratio is expected to be managed to 11
Slide 10: Divisional Performance: Wealth Management
Divisional Performance Balance Sheet Trends Revenue Trends Key focus during Q3 2011 was on balance sheet AED billion AED million optimisation, continued proactive management of credit quality, building non-risk based and fee generating Wholesale Banking +4% businesses and selective growth in new u
Slide 11: Divisional Performance: Emirates Islamic Bank, Global Markets & Treasury
Divisional Performance Revenue Trends Global Markets & Treasury Revenue was stable y-o-y and down 14% q-o-q to AED AED million 155 million in Q3 2011 -1% Globally financial markets remained volatile in Q3 2011, 180 adversely impacting the Treasury Trading business 156 155 -14% Treasury Sales r
Slide 12: Strategic Imperatives for 2011
Strategic Imperatives for 2011 Objectives Optimise Increase lending activities in identified pockets of growth, e.g. SME lending, cards, … Balance Sheet Further diversifying funding sources with a focus on reducing cost of funding and Capital Review all Group companies (subsidiaries and associ
Slide 13: Outlook
Outlook While conditions in the local economy improved in H1 2011, global economic developments in Q3 2011 are starting to have an impact on local and regional activity o Estimated UAE GDP growth for 2011 remains 4.6% largely on the back of higher oil production, but risks are skewed to the downsi
Slide 14: Summary
Summary Robust operating performance with stable pre-impairment operating profit at AED 1.8 billion for Q3 2011 Top-line trends for Q3 2011 encouraging with 13% y-o-y and q-o-q growth in net interest income and growth in core fee income of 1% y-o-y and 3% q-o-q Continuation of balance sheet de-riski
Slide 15: Appendix
APPENDIX Emirates NBD
Slide 16: Additional Asset Quality Disclosures
Additional Asset Quality Disclosures Investment /CDS Income and Impairments AED million Q1 08 Q2 08 Q3 08 Q4 08 2008 Q1 09 Q2 09 Q3 09 Q4 09 2009 Q1 10 Q2 10 Q3 10 Q4 10 2010 Q1 11 Q2 11 Q3 11 Income: Investment Securities 31 49 (265) (504) (689) 6 241 120 54 421 172 (7) 143 48 356 (12) 72 64 CDS (1
Slide 17: Additional Asset Quality Disclosures (cont'd)
Additional Asset Quality Disclosures (cont’d) Credit Metrics AED million Q1 08 Q2 08 Q3 08 Q4 08 2008 Q1 09 Q2 09 Q3 09 Q4 09 2009 Q1 10 Q2 10 Q3 10 Q4 10 2010 Q1 11 Q2 11 Q3 11 P&L Impairment Allowances: Credit – Specific 32 99 58 242 431 94 584 473 533 1,684 442 481 1,203 469 2,595 706 (57) 1,668
Slide 18: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com Ben Franz-Marwick Head, Investor Relations Tel: +971 4 201 2604 Email: bernhardf@emiratesnbd.com Shagorika Cairae Senior Analyst, Investor Relations Tel: +971 4 201 2620 Email: