Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (February 2016)
32 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, February 2016
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation February 2016
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: UAE Economic Update
3 Operating Environment UAE Economic Update Highlights Real GDP growth forecasts • 2015 real GDP growth estimated at 4.0%. Oil production 2013 2014 2015 2016F 2017F rose 4.1% according to Bloomberg estimates, offsetting S. Arabia 2.7 3.5 3.4 1.9 2.6 slower growth in the non-oil sectors of the econom
Slide 4: Dubai Economic Update (1/3)
4 Operating Environment Dubai Economic Update (1/3) Highlights Dubai: Real GDP Growth, H1 2015 • Dubai’s economy expanded 4.6% y/y in H1 2015, up from 5.0 4.0% in H1 2014. Wholesale & retail trade remains the % y/y 4.7 4.6 largest sector in the economy, and expanded 5.3% in H1 4.5 2015. Transport, s
Slide 5: Dubai Economic Update (2/3)
5 Operating Environment Dubai Economic Update (2/3) Highlights Dubai Airports passenger traffic • Passenger traffic at the Dubai International Airport rose 20 to 78 million in 2015, up by 10.7% y/y, retaining its position as the world’s biggest international hub. 16 Emirates NBD Profile • Passenger
Slide 6: Dubai Economic Update (3/3)
6 Operating Environment Dubai Economic Update (3/3) Highlights Business licenses issued* • Residential property prices have continued to ease in December 2015 with apartment prices down -13.5% y/y and 125 12 Thousands Business licenses % y/y villa prices down -13% y/y. 115 10 114.8 Emirates NBD Prof
Slide 7: UAE Banking Market Update
7 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) 16% • M2 growth slowed to 5.5% in December 2015 14% 12% 10% Emirates NBD Profile • Bank deposits increased by AED 50.3bn i
Slide 8: Emirates NBD at a glance
8 Emirates NBD at a glance Operating Environment #1 bank in the UAE Largest branch network in the UAE • Market share in the UAE (as at 31 Dec 2015) Dubai 103 Ras al-Khaimah (5) Abu Dhabi 25 - Assets c.16.4%; Loans c.19.9% Umm al-Quwain (2) Sharjah 17 - Deposits c.19.5% Other Emirates 12 Fujairah (3)
Slide 9: Emirates NBD is the largest bank in the UAE by key metrics in 2015
9 Emirates NBD is the largest bank in the UAE by Operating Income, Net Profit, Operating Environment Loans and Deposits in 2015 x% 2015 vs. 2014 Operating Income Net Profit Loans Total Deposits AED Mn, 2015 AED Mn, 2015 AED Bn, 2015 AED Bn, 2015 Emirates NBD Profile 15,228 5% 7,123 39% 271 10% 287 1
Slide 10: Emirates NBD is among top banks in the GCC by key metrics in 2015
10 Emirates NBD is among top 3 banks in the GCC by Operating Income, Net Profit, Operating Environment Loans and Deposits in 2015 x% 2015 vs. 2014 Operating Income Net Profit Loans Total Deposits USD Bn, 2015 USD Bn, 2015 USD Bn, 2015 USD Bn, 2015 Emirates NBD Profile 4.6 8% 3.1 8% 109 15% 109 10% 4
Slide 11: Profit and Balance Sheet Growth in Recent Years
11 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 +11% +14% +7% Emirates NBD Profile +30% +39% 14.4 15.2 4.4 4.7 10.1 10.5 7.1 +5% 4.2 +8% +5% 11.9 3.6 3.8 7.7 5.1 9.9 10.2
Slide 12: Emirates NBD delivered a solid set of results in 2015 amid a challenging environment
12 Emirates NBD delivered a solid set of results in 2015 amid a challenging environment Operating Environment FY 2015 at a glance 2015 Macro themes FY 2015 vs. Regional Global 2015 guidance • Resilience of UAE • Recovering US Emirates NBD Profile Profitability Net profit AED 7.1 Bn + economy due to
Slide 13: FY 2015 Financial Results
13 Operating Environment FY 2015 Financial Results Highlights Key Performance Indicators Better / • Net profit of AED 7,124 Mn for FY-15 improved 39% y-o-y AED Mn FY-15 FY-14 (Worse) • Net interest income rose 8% y-o-y due to asset growth and Net interest income 10,241 9,496 8% Emirates NBD Profile
Slide 14: Q4-15 Financial Results Highlights
14 Operating Environment Q4-15 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 2,134 Mn for Q4-15 improved AED Mn Q4-15 Q4-14 Q3-15 (Worse) (Worse) 74% y-o-y and 28% q-o-q Net interest income 2,669 2,473 8% 2,591 3% • Net interest income impro
Slide 15: Net Interest Income
15 Operating Environment Net Interest Income Highlights Net Interest Margin (%) 2.95 • FY-15 NIMs remained flat at 2.85% 2.91 2.90 – Loan spreads experienced downward pressure y-o-y 2.85 across a broad range of products 2.83 2.83 2.83 2.80 2.76 2.75 2.78 Emirates NBD Profile – Deposit spreads improv
Slide 16: Non-Interest Income
16 Operating Environment Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / • Non-interest income rose 1% y-o-y as core fee AED Mn FY-15 FY-14 (Worse) income growth was offset by lower gains from the sale of properties and investment securities Core gross fee income
Slide 17: Operating Costs and Efficiency
17 Operating Environment Operating Costs and Efficiency Highlights Cost to Income Ratio (%) 33.1 33.3 • Costs increased by 21% q-o-q, as per previous guidance, and costs increased 31.2 31.3 8% in 2015 as staff costs increased in line Emirates NBD Profile with rising business volumes 30.1 31.0 • Cost
Slide 18: Credit Quality
18 Operating Environment Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 114.5 111.5 103.2 109.0 • NPL ratio improved by 0.8% in 2015 to 7.1% 99.6 92.0 • Impaired loans improved to AED 20.8 Bn helped by over 85.4 76.1 80.1 70.3 Emirates NBD Profile AED 2 Bn of writebacks & recoveries 6
Slide 19: Capital Adequacy
19 Operating Environment Capital Adequacy Highlights Capitalisation • In 2015, Tier 1 ratio remained steady at 18% and CAR 21.1 20.5 21.0 20.9 20.7 declined by 0.4% to 20.7% 18.0 17.5 18.0 18.0 18.0 • Increase in Tier 1 Capital from retained earnings offset by Emirates NBD Profile 47.5 49.1 50.9 46.
Slide 20: Funding and Liquidity
20 Operating Environment Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 94.2% within 90-100% management target range • Liquid assets* of AED 55.0 Bn as at end 2015 (15.5% of total liabilities) 102.0 Emirates NBD Profile 99.5 99.2 • Debt & Sukuk term funding represe
Slide 21: Loan and Deposit Trends
21 Operating Environment Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +10% • Gross loans grew 10% since end 2014 294 +3% with strong growth in Retail and Islamic 279 285 265 272 267 271 banking 259 262 Emirates NBD Profile 235 • Islamic financing grew 27% since end 216 19
Slide 22: Loan Composition
22 Operating Environment Loan Composition Total Gross Loans (AED 294 bn) Corporate Loans (AED 95 bn) Treasury/Other Cont. Corporate Trans. & com. Retail 7% 95 5% 30 (32%) RE Emirates NBD Profile (10%) 0 33% Trade (0%) 15% 48 8% Manuf. 2% 121 (16%) 4% (41%) Islamic* Others** 4% 23% Per. - Corp. Finan
Slide 23: Divisional Performance
23 Operating Environment Divisional Performance • Retail loans grew 12% in 2015 due to growth in Auto Balance Sheet Trends Revenue Trends Loans and Credit Cards whilst revenue grew 1% y-o-y AED Bn 0% AED Mn due to a change in internal transfer pricing. +12% +1% • Fee income grew 12% in 2015, driven
Slide 24: Divisional Performance (cont'd)
24 Operating Environment Divisional Performance (cont’d) • Wholesale Banking revenues improved 2% in 2015 Balance Sheet Trends Revenue Trends due to asset growth and higher fee income AED Bn +16% AED Mn • Loans grew 7% from end 2014 +7% +2% Wholesale Banking • Deposits grew by 16% from end 2014 due
Slide 25: Summary
25 Operating Environment Summary FY 2015 financial results highlights 2016 macro themes FY 2015 Comments Global Regional Emirates NBD Profile Profitability Net profit AED 7.1 Bn • Improved 39% y-o-y • Emirates NBD’s • Regional growth balance sheet is opportunities positioned to Net interest 2.85% be
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: Highlights of strategic achievements in 2015
27 Highlights of strategic achievements in 2015 Operating Environment 2015 Strategic Priorities Key Achievements 1 • Drive front line cultural/ behavior change • First UAE bank to be named ‘Bank of the Year – UAE 2015’ and ‘Bank • Prioritize customer centric objectives and of the Year – Middle East
Slide 28: Strategic priorities for 2016
28 Strategic priorities for 2016 Operating Environment Pillars of our strategy Key focus areas 1 • Extend servicing of products through online, mobile, social channels Deliver an excellent • Reinforce ENBD’s position as a digital innovator in the region via best-in-class online and mobile banking cu
Slide 29: 2015 Selected Awards
29 2015 Selected Awards Operating Environment ‘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 Emirate
Slide 30: Large Deals Concluded in 2015 (1/2)
30 Large Deals Concluded in 2015 (1/2) Operating Environment BANQUE MISR SAE BURGAN BANK CFC STANBIC BANK IDFC BANK LIMITED RELIANCE INFRATEL SEKERBANK LIMITED LIMITED USD 54,000,000 USD 250,000,000 USD 350,000,000 USD 200,000,000 USD 350,000,000 USD 155,000,000 EUR 71,000,000 SYNDICATED TERM LOAN F
Slide 31: Large Deals Concluded in 2015 (2/2)
31 Large Deals Concluded in 2015 (2/2) Operating Environment FAR EAST HORIZON LIMITED EMIRATES NATIONAL OIL PT BFI FINANCE INDONESIA SUNRISE PROPERTIES LTD PUMA INTERNATIONAL USD 250,000,000 COMPANY LTD. (ENOC) LLC TBK. FINANCING S.A USD 235,000,000 USD 1,500,000,000 USD 50,000,000 AED 515,000,000 U
Slide 32: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com