Slide 1: Q3 2016 Results Presentation
Q3 2016 Results Presentation 17 October 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: Emirates NBD delivered a solid set of results in Q3-16 amid a challenging environment
3 Emirates NBD delivered a solid set of results in Q3-16 amid a challenging environment Q3 2016 YTD at a glance 2016 Macro themes Q3 2016 vs. Regional Global YTD revised 2016 guidance • Resilience of UAE • Recovering US Profitability Net profit AED 5.4 Bn economy due to economy +8% y-o-y non-oil sec
Slide 4: Q3-16 YTD Financial Results
4 Q3-16 YTD Financial Results Highlights Key Performance Indicators Better / • Net profit of AED 5,382 million for Q3-16 YTD AED Mn Q3-16 YTD Q3-15 YTD (Worse) improved 8% y-o-y Net interest income 7,651 7,572 1% • Net interest income improved 1% y-o-y as loan Non-interest income 3,634 3,582 1% grow
Slide 5: Q3-16 Financial Results Highlights
5 Q3-16 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 1,664 million for Q3-16 declined AED Mn Q3-16 Q3-15 Q2-16 (Worse) (Worse) 1% y-o-y and 13% q-o-q Net interest income 2,551 2,591 (2%) 2,544 0% • Net interest income declined 2% y-o-y due
Slide 6: Net Interest Income
6 Net Interest Income Highlights Net Interest Margin (%) 2.95 • NIMs declined to 2.54% in 2016 YTD and to 2.44% in Q3-16 2.91 2.90 • Loan spreads declined as loan margins across a range of 2.85 2.83 2.85 2.80 products did not keep pace with rising EIBOR rates 2.75 2.77 2.83 2.82 • Deposit spreads im
Slide 7: Loan and Deposit Trends
7 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +7% • Gross loans grew 7% since end 2015 314 +1% with good growth in Consumer and 303 310 285 294 Islamic lending 272 279 265 267 271 221 225 226 209 215 • Islamic financing grew 11% since end 2015 due to growth in trade, ser
Slide 8: Funding and Liquidity
8 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 92.8% within 90-100% management target range 99.2 • Liquid assets* of AED 53.9 Bn as at Q3-16 YTD (13.7% of 97.2 total liabilities) 96.1 95.6 95.6 95.9 95.3 95.2 • Debt & Sukuk term funding represent 12% of total lia
Slide 9: Capital Adequacy
9 Capital Adequacy Highlights Capitalisation 20.9 20.7 20.3 20.5 20.5 • In Q3-16, Tier 1 ratio increased by 0.1% to 18.0% and CAR remained at 20.5%. 18.0 18.0 17.6 17.9 18.0 • Increase in Tier 1 capital from retained earnings more than 53.5 49.1 50.9 50.2 51.8 offset modest increase in risk weighted
Slide 10: Non-Interest Income
10 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / • Non-interest income grew 1% y-o-y due to higher AED Mn Q3-16 YTD Q3-15 YTD core fee income (Worse) Core gross fee income 3,811 3,630 5% • Core fee income improved 2% y-o-y driven by growth in credit card, foreig
Slide 11: Operating Costs and Efficiency
11 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • In Q3-16, costs improved by 1% q-o-q, 33.3 33.7 helped by a further reduction in staff costs, 32.6 following cost control measures 32.0 implemented earlier in 2016. 32.7 31.3 31.0 • Costs increased by 8% y-o-y on the back 32.3 3
Slide 12: Credit Quality
12 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 118.5 120.8 114.5 • NPL ratio improved to 6.4% 109.0 111.5 113.5 99.6 103.2 • Impaired loans improved to AED 20.1 Bn helped by AED 92.0 2,129 Mn of write backs & recoveries in Q3-16 YTD • Q3-16 YTD cost of risk at 93 bps (annualized) c
Slide 13: Divisional Performance: Retail Banking & Wealth Management
13 Divisional Performance • RBWM revenues declined 1% q-o-q Balance Sheet Trends Revenue Trends • In Q3-16 YTD, fee income accounted for 37% of total AED Bn AED Mn RBWM revenue, compared to 30% in 2013 +18% -1% Wealth Management • Retail loans grew by 12% and deposits by 18% from +12% Retail Banking
Slide 14: Divisional Performance (cont'd): Wholesale Banking
14 Divisional Performance (cont’d) • Wholesale Banking revenues declined 9% q-o-q Balance Sheet Trends Revenue Trends • Loans grew 5% from end 2015 AED Bn -5% AED Mn • Deposits declined 5% from end 2015, reflecting +5% -9% Wholesale Banking continued efforts to reduce the average cost of funding whi
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