Slide 1: Emirates NBD Q3 2012 Results Presentation
Emirates NBD Q3 2012 Results Presentation October 22, 2012 1 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 2012 Financial Results Highlights
Q3 2012 Financial Results Highlights Highlights Key Performance Indicators Net profit of AED 640 million, broadly stable AED million Q3 2012 Q3 2011 Change Q2 2012 Change vs. Q2 2012 and +267% vs. Q3 2011 (%) (%) Net interest income improved 6% q-o-q and Net interest income 1,730 1,950 -11% 1,63
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) NIM improved by 7 bps from 2.28% in Q2 3.01% 2012 to 2.35% in Q3 2012 resulting in 6% q-o-q 2.96% 2.81% 2.79%2.85% 2.85% increase in net interest income to AED 1,730 million 2.59% 2.58% 2.56% 2.63% 2.76%2.81% 2.52% 2.53% Q3 2012 NIM improvem
Slide 5: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit Ratios (%) Headline LTD ratio of 99% at Q3 2012 Headline LTD Ratio % The LTD ratio is being managed to the target 126% 127% range of c.95%-100% 118% 118% Liquid assets (excl. Investments) of AED 48.2 111% billion as at 30 September 2012 (16% of
Slide 6: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED billion) Signs of modest pickup in new +9% underwriting: 228 218 223 +2% – Annual growth of 9% in gross loans 216 8 209 8 – Excluding Dubai Bank, annual growth of 6% 8 9 176 172 in gross loans 166 168 168 Balance sheet optimisa
Slide 7: Non Interest Income
Non Interest Income Highlights Composition of Non Interest Income (AED million) Non-interest income declined by 8% q-o-q Change Change AED million Q3 2012 Q3 2011 Q2 2012 (%) (%) and improved by 21% y-o-y Core gross fee income 645 647 -0% 747 -14% Impact of non-core items: Fees & commission expe
Slide 8: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) Costs improved by AED 20 million or 2% Cost to income ratio (YTD) q-o-q to AED 874 million in Q3 2012 resulting from: – AED 20 million reduction in staff costs 35.7% – AED 7 million reduction in Dubai Bank costs 35.3% 35.1% 35.4% 3
Slide 9: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • Q3 2012 impairment charge of AED 1,009 83% 71% 72% 70% 71% million driven principally by specific provisions 41% 43% 45% 46% 48% of AED 960 million relating mainly to corporate portfolios (both conventional and Islamic) 13.8% 14.1% 14.3
Slide 10: Capital Adequacy
Capital Adequacy Highlights Capital Ratios - Basel II (AED billion) CAR and T1 improved 0.4% q-o-q to 19.9% 19.8% 20.5% 19.1% 19.5% 19.9% and 13.2% respectively resulting from an 12.6% 13.0% 12.5% 12.8% 13.2% increase in Tier 1 capital by AED 0.6 billion in Q3 2012 due to net profit generation for
Slide 11: Divisional Performance: Wholesale and Consumer Banking
Divisional Performance Balance Sheet Trends Revenue Trends AED billion AED million Key focus during Q3 2012 was on continued strategy re- alignment to ensure enhanced future customer service Wholesale Banking +6% quality and share of wallet, increased cross-sell of Treasury -17% 162.0 167.1 171.2
Slide 12: Divisional Performance: Global Markets & Treasury, Emirates Islamic Bank
Divisional Performance Revenue Trends Global Markets & Treasury AED million Revenue declined 46% q-o-q and 32% y-o-y to AED 105 -32% million in Q3 2012 driven by lower net interest income in Q3 2012 and higher investment income in the previous quarter 196 Tightening of Spreads in regional credit
Slide 13: Outlook
Outlook During 2012 YTD the UAE economy continued to display resiliency and modest growth with oil output rising 4.3% and modest private sector expansion Continued strength and growth witnessed in Dubai’s traditional trade, logistics, tourism and retail sales sectors and signs of improvement in
Slide 14: Summary
Summary Net profit growth broadly stable q-o-q at AED 640 million Total income improved 1% q-o-q driven by increased net interest margin Operating expenses improved 2% q-o-q and will be managed to a longer term cost income ratio target of 33%-34% NPL formation and provisioning trends in line with ex
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 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: