Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — H1 2022 Earnings Presentation
26 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, October 2022
Slide 1: Investor Presentation H1 2022
Investor Presentation H1 2022 October 2022
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: Agenda
1. Emirates NBD Profile 2. Economic Environment 3. Financial & Operating Performance 4. Divisional Performance
Slide 4: Emirates NBD is a leading bank in the MENAT Region
Emirates NBD is a leading bank in the MENAT Region Key Highlights as of June 2022 Emirates NBD at a Glance USD 194 Bn USD 126 Bn USD 127 Bn Total Assets Gross Customer Loans Total Customer Deposits 13 900 17+ million Countries Branches Customers 4th 2nd ~20% Largest in GCC Largest in UAE Market Shar
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Emirates NBD’s International Presence Market share in the UAE* Moscow ➢ Assets 17.8%; Loans 21.8%; Deposits 19.7% London 7 1 1 Germany 13 ➢ Largest financial institution in Dubai, 4th Austria largest in the GCC Turkey Beijing 696 1 ➢ Leading retail banking franchise with a b
Slide 6: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Key Digital Developments • 90% of all face-to-face card payment transactions now ‘contactless’ through • Liv., the digital bank by Emirates NBD further strengthened Mobile wallet its proposition growing its customer base to more than • Continued to develop it
Slide 7: ESG Performance – Key Highlights
ESG Performance – Key Highlights For more about ESG report, please visit: Key developments First female director elected to the Board in February 2022. First UAE banking Group to commit to female leadership target, aiming for 25% women in senior management by 2027 Raised first Sustainability-linked
Slide 8: Stable Shareholder Base and Diversified Business Model
Stable Shareholder Base and Diversified Business Model Split of ownership – Anchored by the Government of Dubai Key Highlights Ownership structure as at 30 June 2022 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai Others
Slide 9: Emirates NBD is one of the largest banks in the GCC
Emirates NBD is one of the largest banks in the GCC… Total Assets Total Loans Total Deposits Total Income USD Bn, 30-Jun-2022 USD Bn, 30-Jun-2022 USD Bn, 30-Jun-2022 USD Mn, H1 2022 307 217 217 4,484 284 146 177 4,378 256 141 158 3,871 194 129 147 3,756 189 126 127 2,571 130 69 80 1,752 9
Slide 10: …and one of the largest banks in the UAE
…and one of the largest banks in the UAE Total Income Net Profit Total Loans Coverage Ratio & NPLs (%) CET-1 Ratio (%) USD Mn, H1 2022 USD Mn, H1 2022 USD Bn, H1 2022 30-June-2022 30-Jun-2022 NPL% 3,871 2,188 129 133 6.1 14.5 3,414 1,449 126 132 4.6 13.2 1,752 833 69 100 3.6 12.8 1,707 736 55 90 5.6
Slide 11: Consistently profitable due to diversified and resilient business model
Consistently profitable due to diversified and resilient business model 8.8% 10.5% 15.7% 19.7% 18.0% 18.8% 20.3% 16.5% 9.5% 12.8% 14.6% 6.5 6.3 6.1 4.7 4.1 4.2 3.9 4.0 3.9 3.9 3.2 2.8 2.7 2.5 2.3 1.9 2.0 1.9 1.4 1.4 0.9 0.7 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Total Income (USD
Slide 12: UAE economy rebounding with 5.7% growth expected in 2022
UAE economy rebounding with 5.7% growth expected in 2022 UAE GDP Growth Key Highlights 8.0 % y/y • The Dubai PMI rose to 56.4 in July, the highest reading since mid-2019 7.0 4.0 • Dubai tourism sector is expected to benefit from the Qatar World Cup 3.9 3.9 2.4 1.2 1.1 • ENBD Research expects UAE GDP
Slide 13: Dubai: Positioning for future growth
Dubai: Positioning for future growth Key contributors to Dubai GDP (Q1 2022) Key Highlights % of total • ENBD Research expects Dubai’s economy to grow by 4.5% in 2022 Other ICT 14.6% Trade 4.4% 22.6% • Strong visitor numbers have given grounds for optimism, and Dubai Airports Hospitality 6.3% 27.6 e
Slide 14: Emirates NBD delivers strong results and maintains solid balance sheet in H1-22
Emirates NBD delivers strong results and maintains solid balance sheet in H1-22 Key Highlights Key Metrics & Guidance Net Profit CET 1 Strong momentum continues with H1-22 profit up 11% to USD 1.4bn USD 1.4bn 15.0% +11% y-o-y Improved loan & deposit mix with higher interest rates enabling Group to N
Slide 15: Strong diversified income and profit growth in H1-22
Strong diversified income and profit growth in H1-22 Highlights Income Liquidity Risk Expenses Capital Divisional Key Highlights • Group net profit up by 11% and strong diversified income Income Statement Better / Better / Better / absorbs new hyperinflation adjustment H1-22 H1-21 H1-22 H1-21 H1-22
Slide 16: Q2-22 results highlights
Q2-22 results highlights Highlights Income Risk Expenses Capital Liquidity Divisional Better / Better / Key Highlights Income Statement (USD bn) Q2-22 Q2-21 Q1-22* (Worse) (Worse) Net interest income 1.4 1.1 27% 1.1 21% • Strong Q2-22 results with net profit up 42% y-o-y on higher income and lower N
Slide 17: Net interest income – NIM guidance revised up 50 bps
Net interest income – NIM guidance revised up 50 bps Highlights Income Risk Expenses Capital Liquidity Divisional 3.3 Key Highlights Quarterly NIM 3.09 3.2 YTD NIM Net Interest Margin (%) • Q2-22 NIM up 65 bps y-o-y on ENBD’s improved loan and deposit mix 3.1 and wider margins at DenizBank 3.0 - Loa
Slide 18: Loans and deposits trends
Loans and deposits trends Highlights Income Risk Expenses Capital Liquidity Divisional Gross Loans by Type (USD Bn) Key Highlights +1% • Gross loans grew 1% (USD 1bn) in H1-22 129 130 125 126 126 - Retail lending up 8% (USD 1 bn) with strong demand across all products DenizBank 21 22 18 18 18 - EI F
Slide 19: Non-funded income
Non-funded income Highlights Income Risk Expenses Capital Liquidity Divisional Key Highlights Better / Better / • Q2-22 fee and commission income 11% higher y-o-y from increased Non-funded income (USD mn) Q2-22 Q2-21 Q1-22 local and international retail card business at both ENBD and (Worse) (Worse)
Slide 20: Operating expenses
Operating expenses Highlights Income Risk Expenses Capital Liquidity Divisional Key Highlights Cost to Income Ratio (%) 35.3 34.8 • Q2 22 cost to income ratio at 28.7% below guidance reflecting stronger income 34.0 • Staff costs increased y-o-y on incentives to drive underlying earnings and hiring f
Slide 21: Credit quality
Credit quality Highlights Income Risk Expenses Capital Liquidity Divisional Impaired loans and allowances Key Highlights 6.3 6.2 6.3 6.4 6.1 • NPL ratio improved by 0.3% to 6.1% in Q2-22 on strong writebacks and recoveries 9.9 10.1 10.1 10.3 10.3 • Coverage ratio strengthened 4.8% to 133.3% in Q2-22
Slide 22: Capital adequacy
Capital adequacy Highlights Income Risk Expenses Capital Liquidity Divisional Capital (USD billion) Key Highlights 27.1 • CET-1 ratio stable at 15.0% during 2022 as 1.4 23.2 2.5 - USD 1.3bn of net earnings largely offset 22.1 1.3 (0.1) (0.1) - USD 0.1bn reduction in ECL addback - 7% increase in RWAs
Slide 23: Funding and liquidity
Funding and liquidity Highlights Income Risk Expenses Capital Liquidity Divisional Key Highlights Advances to Deposit and Liquidity Coverage Ratio (%) • LCR of 154.8% and ADR of 90.8% demonstrate healthy liquidity ADR % LCR % • Liquid assets* of USD 17 billion cover 10% of total liabilities, 13% of
Slide 24: Divisional performance
Divisional performance Highlights Income Risk Expenses Capital Liquidity Divisional Key Highlights Increase / Retail Banking and Wealth Management Operating Segment Metrics H1-22 (Decrease) • Record half-year for income, loans & cards acquisitions and balance sheet growth Income (mn) 1,268 • Lending
Slide 25: Appendix 1: Hyperinflation
Appendix 1: Hyperinflation Türkiye Consumer Price Index Key Highlights +133% 42% • Loss on net monetary position for DenizBank was USD 0.5 bn for first six 978 months of 2022 844 • USD 0.5 bn debit P&L charge with corresponding credit offset to OCI making 64% it capital neutral 687 547 571 505 524 0
Slide 26: Thank you
Thank you Investor Relations Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 201 2614