Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (November 2015)
31 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, November 2015
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation November/December 2015 1
Slide 2: Important Information
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 form
Slide 3: UAE Economic Update
Operating Environment UAE Economic Update Highlights Real GDP Growth Forecasts • 2015 real GDP growth forecast revised lower to 4.0% from 4.3%, Country 2012 2013 2014 2015F 2016F and down from 4.6% in 2014. Oil production is up 2.8% UAE 6.9% 4.3% 4.6% 4.0% 4.5% year-to-date. Emirates NBD Profile Chi
Slide 4: Dubai Economic Update (1/3)
Operating Environment Dubai Economic Update (1/3) Highlights Dubai: Real GDP growth • Dubai’s economy expanded 3.9% y/y in Q1 2015, slower 6% 4.6% 5% 4.1% than 5.1% growth in Q1 2014. The services sector has 3.5% 3.5% 3.8% 4% 3.0% Emirates NBD Profile enjoyed the strongest growth in Q1 2015, up 5.6%
Slide 5: Dubai Economic Update (2/3)
Operating Environment Dubai Economic Update (2/3) Highlights Dubai Airports passenger traffic • Passenger traffic at the Dubai International Airport (DXB) rose to 8 35% 7 30% 52.3 million in Jan-Aug 2015, up by 12.4% y/y. 25% 6 Emirates NBD Profile • Passenger traffic is expected to exceed 79 millio
Slide 6: Dubai Economic Update (3/3)
Operating Environment Dubai Economic Update (3/3) Highlights Business Licenses issued* • Residential real estate prices continued to decline across all 85 12 Thousands % y/y sectors on an annual basis, according to Cluttons, with Business licences mid-range villas down -6.7% y/y in September. Apartm
Slide 7: UAE Banking Market Update
Operating Environment UAE Banking Market Update Highlights Bank deposit and loan growth* Tighter liquidity conditions are evident: 18% Bank deposits (% y/y) Bank Loans (% y/y) • M2 growth slowed to 3.5% in Sept. (8.0% in Dec.) 16% 14% Emirates NBD Profile • Bank deposits declined m/m Jun. to Aug. an
Slide 8: Emirates NBD is a leading banking group in the region and the largest bank in the UAE
Operating Environment Emirates NBD is a leading banking group in the region and the largest bank in the UAE Size • One of the largest financial institutions (by asset size) in the GCC Emirates NBD Profile Flagship • Flagship bank for Dubai Government Ownership • 56% owned by Dubai Government Financi
Slide 9: Emirates NBD at a glance
Operating Environment Emirates NBD at a glance A Leading Bank in the UAE Largest Branch Network in the UAE • Market share in UAE (at 30 Sep 2015): Dubai 101 Ras al-Khaimah (5) – Assets c.16.1%; Loans c.19.3% Abu Dhabi 25 Umm al-Quwain (2) Sharjah 17 Emirates NBD Profile – Deposits c.18.7% Other Emir
Slide 10: Emirates NBD is the largest bank in the UAE by Operating Income, Net Profit, Loans and Deposits
Operating Environment Emirates NBD is the largest bank in the UAE by Operating Income, Net Profit, Loans and Deposits x% 9M 2015 vs. 9M 2014 in 9M 2015 x% Q3 2015 vs. Q4 2014 Operating Income Net Profit Loans Total Deposits AED Mn, 9M 2015 AED Mn, 9M 2015 AED Bn, Q3 2015 AED Bn, Q3 2015 Emirates NBD
Slide 11: Emirates NBD is among top banks in the GCC
Operating Environment Emirates NBD is among top 3 banks in the GCC by Operating Income, Loans and Deposits in 2014 x% 2014 vs. 2013 Operating Income Net Profit Loans Deposits USD Bn, 2014 USD Bn, 2014 USD Bn, 2014 USD Bn, 2014 Emirates NBD Profile 93 9% 99 7% 4.3 9% 2.9 11% 67 3% 89 11% 4.2 7% 2.3 1
Slide 12: Profit and Balance Sheet Growth in Recent Years
Operating Environment Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Profits (AED Bn) Revenues Costs Pre-Provision Operating Profits Net Profits Emirates NBD Profile +4% +8% +6% +7% 14.5 4.4 10.1 5.1 5.0 +27% 4.2 11.9 +2% 3.6 3.6 3.8 +5% +2% 10.8 3.6 11.2 1.2 3.4 7.6 2.4
Slide 13: Q3-15 YTD Financial Results Highlights
Operating Environment Q3-15 YTD Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 4,990 Mn for Q3-15 YTD improved 27% Better / y-o-y AED Mn Q3-15 YTD Q3-14 YTD (Worse) Emirates NBD Profile • Net interest income rose 8% y-o-y due to growth in Retail Net interest i
Slide 14: Q3-15 Financial Results Highlights
Operating Environment Q3-15 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 1,673 Mn for Q3-15 improved 7% y-o-y and 2% q-o-q Better / Better / AED Mn Q3-15 Q3-14 Q2-15 (Worse) (Worse) • Net interest income improved 5% y-o-y Emirates NBD Profile and 4% q-o-q as
Slide 15: Net Interest Income
Operating Environment Net Interest Income Highlights Net Interest Margin (%) • Q3-15 NIMs declined marginally to 2.75% 2.95 2.91 2.90 – Both Loan and deposit rates held steady against a 5bp 2.83 2.83 2.83 Emirates NBD Profile increase in average EIBOR rates 2.80 2.76 2.75 2.78 – Treasury spreads imp
Slide 16: Funding and Liquidity
Operating Environment Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 97.2% within 90-100% management target range • Liquid assets* of AED 50.5 Bn as at Q3-15 (14.8% of total 105.1 Emirates NBD Profile liabilities) 102.0 • Debt & Sukuk term funding represent 11% of
Slide 17: Loan and Deposit Trends
Operating Environment Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans grew 7% since end 2014 with +7% strong growth in Retail and Islamic +2% 279 285 Emirates NBD Profile banking 259 262 265 272 267 271 • Islamic financing grew 20% since end 216 235 209 2014 20
Slide 18: Non-Interest Income
Operating Environment Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income declined 7% y-o-y Better / due to lower gains from the sale of AED Mn Q3-15 YTD Q3-14 YTD (Worse) properties and investment securities Emirates NBD Profile Core gross fee income 3,6
Slide 19: Costs and Efficiency
Operating Environment Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Costs declined 3% q-o-q 33.1 • Costs increased 5% y-o-y in Q3-15 due to 31.3 Emirates NBD Profile higher staff costs linked with rising 31.2 business volumes 29.5 • Cost to Income Ratio rose marginally by 30.4
Slide 20: Credit Quality
Operating Environment Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 115.3 • NPL ratio improved by 0.8% year to date to 7.1% 100.3 103.9 109.8 92.0 • Impaired loans improved to AED 20.3 Bn helped by over 80.1 85.4 Emirates NBD Profile 76.1 AED 1 Bn of writebacks & recoveries 66.2 64.7
Slide 21: Capital Adequacy
Operating Environment Capital Adequacy Highlights Capitalisation • Tier 1 ratio remained steady at 18% and CAR declined 20.4 21.1 20.5 21.0 20.9 marginally by 0.1% to 20.9% 18.0 17.5 18.0 18.0 • Increase in Capital due to retained earnings largely offset 17.2 Emirates NBD Profile 45.7 46.4 46.0 47.5
Slide 22: Loan Composition
Operating Environment Loan Composition Total Gross Loans (AED 285 bn) Corporate Loans (AED 93 bn) Treasury/Other Corporate Cont. Retail Trans. & com. 8% 93 Emirates NBD Profile 29 (33%) 5% RE (10%) 1 (0%) 33% Trade 15% 46 8% 117 (16%) Islamic* Manuf. 2% (41%) Others** 5% Financial & Operating Perfor
Slide 23: Divisional Performance: Retail Banking & Wealth Management
Operating Environment Divisional Performance • Retail loans grew 10% in 2015 whilst revenue grew Balance Sheet Trends Revenue Trends 2% y-o-y due to a change in internal transfer AED Bn -2% AED Mn pricing +2% Wealth Management • Loans grew 10% from end 2014 thanks to growth +10% Retail Banking & +2%
Slide 24: Divisional Performance (cont'd): Wholesale Banking
Operating Environment Divisional Performance (cont’d) • Wholesale Banking revenues declined 3% y-o-y Balance Sheet Trends Revenue Trends and 3% q-o-q AED Bn +3% AED Mn • Loans grew 4% from end 2014 Wholesale Banking -3% +4% • Deposits grew by 3% from end 2014 -3% 193.9 • Focus during 2015 is on enha
Slide 25: Summary
Operating Environment Summary Profitability • Net profit of AED 5.0 Bn for Q3-15 YTD improved 27% y-o-y due to growth in net interest income and lower provisions Credit Quality • NPL ratio improved to 7.1% helped by over AED 1 billion of writebacks and recoveries Emirates NBD Profile • Cost of risk
Slide 26: Emirates NBD's core strategy building blocks
Emirates NBD’s core strategy is focused on the following building blocks Operating Environment Key Deliver an excellent customer Objective experience Emirates NBD Profile Financial & Operating Performance Strategic Run an Drive Levers Drive core efficient geographic business organization expansion S
Slide 27: Strategic priorities for 2015
Strategic priorities for 2015 Priorities Focus Areas Operating Environment 1 • Continue to deliver superior customer experience through better service and product offerings Deliver an • Drive front line cultural/ behavior change excellent customer • Reinforce ENBD’s position as a digital innovator i
Slide 28: 2015 Selected Awards
Operating Environment 2015 Selected Awards ‘Award for Excellence 2015 Middle East’ ‘Best Retail Bank in the Emirates NBD Profile ‘Best Mobile Banking App’ ‘Best Private Bank in the UAE Middle East and the UAE’ ‘Best Prepaid Program – ‘Best Consumer Digital Bank for Philanthropy and Social Emirates I
Slide 29: Large Deals Concluded in 2015 (1/2)
Operating Environment Large Deals Concluded in 2015 (1/2) RELIANCE INFRATEL SEKERBANK EMIRATES INTERNATIONAL ALBARAKA TURK KATILIM ARMADA DI PTE LTD LIMITED TELECOMMUNICATIONS BANKASI USD 202,000,000 USD 54,000,000 USD 350,000,000 USD 2,100,000,000 USD 278,000,000 EUR 71,000,000 EUR 154,500,000 SYNI
Slide 30: Large Deals Concluded in 2015 (2/2)
Operating Environment Large Deals Concluded in 2015 (2/2) PT BFI FINANCE INDONESIA PUMA INTERNATIONAL FIRSTRAND BANK LIMITED GUNVOR SINGAPORE PTE. INDUSIND BANK LIMITED TBK. FINANCING S.A LTD. USD 235,000,000 USD 50,000,000 USD 240,000,000 USD 1,250,000,000 USD 911,700,000 SECURED TERM LOAN Emirates
Slide 31: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com 31