Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Shareholder Meeting (March 2009)
18 slides from Emirates Nbd Bank (p.j.s.c)'s shareholder meeting presentation, Mar 25, 2009
Slide 1: Emirates NBD 2nd Annual General Meeting
Emirates NBD 2nd Annual General Meeting Rick Pudner Chief Executive Officer 25 March 2009
Slide 2: Contents
Contents Group performance 2008 Merger update Outlook and strategy 1
Slide 3: Emirates NBD reported a strong 2008 core business performance despite a more challenging environment
Emirates NBD reported a strong 2008 core business performance despite a more challenging environment 2008 Net Profit of AED 3,681 million compared to 2007 pro forma Net Profit of AED 3,946 million Impacted by write-downs and impairments on investment and other securities of AED 2,259 million in
Slide 4: Core business cost to income ratio decreased
Core business cost to income ratio decreased Cost to income ratio of 39.7% (2007: 38.3%) and core business cost to income ratio of 34.6% (2007: 39.4%) Cost : Income Ratio 39.7 39.0 38.9 38.2 38.3 37.6 37.4 37.9 36.7 35.8 35.4 34.6 2007 2008 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Note 1: Core cost:income ratio ex
Slide 5: Emirates NBD with solid Balance Sheet growth
Emirates NBD with solid Balance Sheet growth Total assets increased 11% to AED 282.4 billion from AED 253.8 billion as at end of 2007 Customer loans at AED 208.9 billion, up 26% from AED 166.4 billion as at end of 2007 Customer deposits at AED 162.3 billion, increased 15% AED 140.7 billion as
Slide 6: Emirates NBD 2008 performance overview
Emirates NBD 2008 performance overview Key Performance Indicators Comments Year to Variance AED million 31 Dec 2008 vs. 2007* Total income 8,448 +19% Operating expenses (3,356) +23% Impairment allowances (1,653) +125% Operating profit 3,439 -6% Amortisation on intangibles (96) +17% Associates Propos
Slide 7: Emirates NBD continues to lead the UAE Banking Sector
Emirates NBD continues to lead the UAE Banking Sector Assets Net profits AED b, 2008 AED m, 2008 Emirates Emirates 282 3,681 NBD NBD NBAD 165 NBAD 3,019 ADCB 148 First Gulf Bank 2,997 First Gulf Bank 108 DIB 1,730 Mashreq 93 Mashreq 1,642 DIB 87 Union Nat. Bank 1,440 Union Nat. Bank 65 ADCB 1,359 AD
Slide 8: Proposed strengthening of Emirates NBD's capital
Proposed strengthening of Emirates NBD’s capital Comments Capital adequacy ratio at 11.4% in 2008 (2007: 12.5%) Emirates NBD received AED 12.6 billion 3/5 year deposits of the AED 50 billion injected by the Ministry of Finance into local banks Subject to EGM approval, the deposits of AED 12.6
Slide 9: Awards & Recognition
Awards & Recognition Emirates NBD was honored by H.H. Sheikh Mohamed Bin Rashid Al Maktoum, the Ruler of Dubai and Vice President & Prime Minister of the UAE, for its role in boosting investments and attracting businesses from around the world. Rick Pudner, Chief Executive Officer of Emirates NB
Slide 10: Contents
Contents Group performance 2008 Merger update Outlook and strategy 9
Slide 11: We have achieved major milestones during the last year
We have achieved major milestones during the last year Mobile and Online Banking Treasury team- integrated; up together in enhanced Credit cards one premise, functionalities platform at Successful Emirates NBD’s and are now and 13 payment Network integration of 92 Large Corporate working as a partne
Slide 12: Integration milestones going forward
Integration milestones going forward Rebranding across all branches will be New Core Banking completed – One system will be bank across all rolled-out in EBI channels Q1/09 Q2/09 Legal merger Core-Banking will be Roll-out to NBD: completed New system Emirates Bank online for and NBD legally combined
Slide 13: Target Synergies: AED 124m in 2008 & AED 372m by 2010
Target Synergies : AED 124m in 2008 & AED 372m by 2010 AED 346m of recurring annual synergies by the third year post merger, plus AED 26m of one-off synergies totalling AED 372m The recurring synergies include: % of Smaller Base1 % of Combined Base1 Synergies (2010) Total, AED m Actual** Benchma
Slide 14: Exceeded 2008 full year targets on all revenue, costs & one-off synergies
Exceeded 2008 full year targets on all revenue, costs & one-off synergies 250 Revenue Synergies 195 AED Millions 200 150 129 104 60% 100 65 50 0 2008 2009 2010 Total Synergies 400 372 151 150 Cost Synergies 300 90% 246 109 118% 235 100 100 200 124 + 50 100 50 0 0 2008 2009 2010 2008 2009 2010 Target
Slide 15: Contents
Contents Group performance 2008 Merger update Outlook and strategy 14
Slide 16: We are currently facing a challenging environment but Emirates NBD is very well positioned
We are currently facing a challenging environment but Emirates NBD is very well positioned The current environment is presenting challenges in terms of liquidity, funding, profitability and asset quality While UAE GDP growth is expected to slow down to c.1.5% in 2009, the UAE economy and banking
Slide 17: We have defined strategic imperatives to ensure we emerge as a winner in this environment
We have defined 3 strategic imperatives to ensure we emerge as a winner in this environment Cautious lending growth • Support growth of important Group relationships Focus on funding Strengthen • Renewed focus on key market segments (Private Banking / Affluent / balance sheet SME) • Leverage distrib
Slide 18: Summary
Summary Robust performance by Emirates NBD for 2008, with reported profits of AED 3,681 million The core business continues to perform strongly in 2008 with core net profit up 49% from 2007 Proposed cash dividend of 20% and stock dividend of 10% The conversion of MOF deposits to Tier 2 capit