Slide 1: Q3 2018 Results Presentation
Q3 2018 Results Presentation 30 October 2018
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 strong set of results in Q3-18
3 Emirates NBD delivered a strong set of results in Q3-18 Q3 2018 Key Metrics 2018 Macro themes Q3-2018 YTD 2018 Guidance Regional Global • Stimulus package • Emirates NBD’s for UAE economy balance sheet AED 7.7 Bn Profit Net profit positioned to +24% y-o-y • Diversified UAE benefit from rising econ
Slide 4: Q3-18 YTD Financial Results
4 Q3-18 YTD Financial Results Highlights Key Performance Indicators Better / • Net profit of AED 7,656 Mn for Q3-18 YTD AED Mn Q3-18 YTD Q3-17 YTD (Worse) improved 24% y-o-y Net interest income 9,536 7,991 19% • Net interest income increased 19% y-o-y on 7% loan growth coupled with an improvement in
Slide 5: Q3-18 Financial Results Highlights
5 Q3-18 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 2,638 Mn for Q3-18 increased AED Mn Q3-18 Q3-17 Q2-18 (Worse) (Worse) 16% y-o-y and was flat q-o-q Net interest income 3,307 2,806 18% 3,245 2% • Net interest income increased 18% y-o-y a
Slide 6: Net Interest Income
6 Net Interest Income Highlights Net Interest Margin (%) 2.87 • NIMs continued to improve in Q3-18 as rate rises flowed 2.82 through to the loan book which more than offset a rise in 2.78 funding costs 2.81 2.68 • Q3-18 NIM improved 5 bps q-o-q and 35 bps y-o-y 2.68 2.54 2.56 • Loan yields improved
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% in Q3-18 YTD with growth across all operating segments 343 351 329 329 329 337 320 • Corporate lending grew 6% since 310 314 315 233 242 242 243 249 252 259 year-end due to growth in construction, 22
Slide 8: Funding and Liquidity
8 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio of 196.5% and AD ratio of 95.2% 100% demonstrates healthy liquidity position • Liquid assets* of AED 64.8 Bn as at Q3-18 (15.0% of total liabilities) 95.0 95.2 94.4 93.8 94.4 • In 2018 YTD, AED 7.8 Bn of
Slide 9: Capital Adequacy
9 Capital Adequacy Highlights Capitalisation 21.2 20.3 21.2 21.3 • In Q3-18, capital ratios improved modestly as retained earnings more than offset an increase in Risk Weighted 18.9 19.0 19.8 20.0 Assets 16.3 15.6 15.5 16.6 • CAR improved slightly since the beginning of the year as retained earnings
Slide 10: Non-Interest Income
10 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / • Core fee income was 5% higher y-o-y due to AED Mn Q3-18 YTD Q3-17 YTD higher foreign exchange income and declined (Worse) 4% q-o-q due to seasonality Core gross fee income 4,314 4,044 7% • Non-interest income de
Slide 11: Operating Costs and Efficiency
11 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) 32.9 • Q3-18 costs were 7% higher q-o-q due to an increase in staff and IT costs as 32.0 32.8 signaled earlier. Other costs increased 31.5 31.3 due to costs associated with international 31.1 31.9 30.8 branch expansion, advertisin
Slide 12: Credit Quality
12 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved to 5.8% in Q3-18 127.9 128.4 127.4 • Impaired loans steady in 2018 helped by AED 1,381 Mn of 123.5 124.9 124.5 122.5 write backs & recoveries 120.8 120.1 • Q3-18 YTD annualized loan cost of risk at 55 bps as net im
Slide 13: Divisional Performance: Retail Banking & Wealth Management
13 Divisional Performance • Revenues increased 5% y-o-y Balance Sheet Trends Revenue Trends • Net interest income grew 8% y-o-y led by liabilities. Fee AED Bn +4% AED Mn +5% income decreased 1% y-o-y and represents 33% of +7% Wealth Management total RBWM revenue -1% Retail Banking & 142.0 • Loans we
Slide 14: Divisional Performance (continued): Wholesale Banking
14 Divisional Performance (continued) • Wholesale Banking revenues increased 22% y-o-y Balance Sheet Trends Revenue Trends • Loans grew 7% in Q3-18 YTD due to growth in AED Bn +1% AED Mn +22% construction, trade and FI sectors. Deposits increased +7% by 1% +4% Wholesale Banking • Net Interest Income
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