Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — FY2020 Earnings Presentation
17 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Jan 27, 2021
Slide 1: Emirates NBD FY 2020 Results Presentation
Emirates NBD FY 2020 Results Presentation 27 January 2021 Presentation Title 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: Emirates NBD maintains good profitability and a strong balance sheet despite challenging conditions in 2020
Emirates NBD maintains good profitability and a strong balance sheet despite challenging conditions in 2020 Key Metrics 2021 Macro themes 2020 2021 FY 2020 Regional Global Guidance Guidance • Continued strong AED 7.4bn Government and Operating Profit • Roll-out of -29% y-o-y Regulatory support to va
Slide 4: FY 2020 Financial results highlights
FY 2020 Financial results highlights Highlights Key performance indicators • Total income improved 4% y-o-y on higher net interest income from the Better / AED million FY 2020 FY 2019 full-year inclusion of DenizBank, partially offset by a decline in non-funded (Worse) income due to lower transactio
Slide 5: Q4-20 Financial results highlights
Q4-20 Financial results highlights Highlights Key performance indicators Better / Better / • Total income down 28% y-o-y due to lower net interest income and AED million Q4-20 Q4-19 Q3-20 (Worse) (Worse) lower volumes as a result of Covid-19 and declined 13% q-o-q Net interest income 4,044 5,065 (20
Slide 6: Net interest income
Net interest income Highlights Net Interest Margin (%) • FY 2020 NIM of 2.65% declined 24 bps as reduction in loan yields more than offset lower funding costs following base rate cuts in H1-20 and Qtrly NIM YTD NIM DenizBank positive contribution 3.11 • Loan yields declined 140 bps y-o-y which offse
Slide 7: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) • Q4-20 LCR of 165.0% and AD ratio of 95.6% demonstrate the Group’s LCR (%) LCR % ADR % continuing healthy liquidity position 250 ADR (%) • Liquid assets* of AED 100.8bn at Q4-20 (16% of total liabilities and 22% 1
Slide 8: Loan and deposit trends
Loan and deposit trends Highlights Trend in Gross Loans by Type (AED billion) • Gross loans grew 3% in 2020 mainly from Corporate and Islamic financing • Corporate lending grew 3% during 2020 mainly in manufacturing, transport and communication, real estate and financial institutions sectors DenizBa
Slide 9: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio increased 20 bps to 6.2% in Q4-20 127.3 125.8 126.6 • Coverage ratio at 117.3% remains strong 123.9 • 2020 cost of risk increased to 163 bps (383 bps for DenizBank and 114 bps 120.5 Emirates NBD) from 117 bps in 2019 reflectin
Slide 10: Impairment allowances and Stage 1, 2 and 3 Coverage
Impairment allowances and Stage 1, 2 and 3 Coverage Highlights Impairment allowances and Coverage % • Stage 1 coverage ratio maintained at healthy 1.1% in 2020 with AED 4.6bn Stage 1 Stage 2 Stage 3 of Stage 1 impairment allowances • Stage 2 coverage ratio improved to 21.1% in 2020 from 15% at end 2
Slide 11: Non-funded income
Non-funded income Highlights Composition of Non-Funded Income (AED million) • YTD core gross income declined 2% y-o-y on account of lower Better / AED million FY 2020 FY 2019 transactional activity from the Covid-19 impact offsetting the (Worse) increase from full year inclusion of DenizBank Core gr
Slide 12: Operating costs
Operating costs Highlights Cost to Income Ratio (%) • Q4-20 costs y-o-y improved 18% on lower staff and operating expenses, and lower costs from DenizBank CI Ratio (YTD) CI Ratio (QTD) Target • Q4-20 costs q-o-q up 13% due to completion of cost management initiatives, and digital and marketing inves
Slide 13: Capital adequacy
Capital adequacy Highlights Capitalisation 20.9 • In Q4-20, Capital ratios declined by 0.6% due to allowance for 2020 18.5 17.9 18.5 19.1 18.5 Proposed Dividend 19.8 18.0 17.4 16.8 17.3 17.4 16.6 15.3 14.8 15.3 15.6 15.0 • AED 1.3 billion increase in retained earnings in Q4-20 offset the 2% increase
Slide 14: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Retail Banking & Wealth Management • RBWM income declined 5% y-o-y due to lower fee income as Balance Sheet Trends AED billion Income Trends AED million volumes were impacted by Covid-19, whilst net interest income maintained 2019 levels +8% -5% • Liabili
Slide 15: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Corporate and Institutional Banking • CIB income was down 5% y-o-y due to a 4% decline in net interest income Balance Sheet Trends AED billion Income Trends AED million on lower interest rates that was partially offset by lending growth +13% -5% • Non-fun
Slide 16: DenizBank Business Overview
DenizBank Business Overview Business Overview Financial Highlights Better / Aug-Dec • DenizBank contributed total income of AED 1,346m and net profit of AED million** Q4-20 Q4-19 FY-20 (Worse) 2019 AED 130m to the Group for Q4-20 Net interest income 1,323 1,665 (21)% 5,667 2,534 • DenizBank contribu
Slide 17: Investor Relations
I N V E S T O R R E L AT I O N S Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046 17