Slide 1: Results Presentation H1 2021
Results Presentation H1 2021 28 July 2021
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 delivers higher profits in H1 2021 on improving economic conditions
Emirates NBD delivers higher profits in H1 2021 on improving economic conditions Key Metrics 2021 Macro themes 2021 Regional Global H1 2021 Guidance Profit Net Profit NIM AED 4.8bn +17% y-o-y 2.45% Insert subtitle Emirates NBD maintains good profitability• UAE 2.40-2.50% and aGDP non-oil strong expe
Slide 4: H1 2021 Financial results highlights
H1 2021 Financial results highlights Highlights Key performance indicators • Total income up 9% over the preceding half year due to increased transactional activity Better / Better / during H1-21 and stable NIMs. Total income down 9% y-o-y as higher non-funded income AED million H1-21 H1-20 H2-20 (W
Slide 5: Q2 2021 Financial results highlights
Q2 2021 Financial results highlights Highlights Key performance indicators • Total income down 6% y-o-y on lower NIMs and lower non-funded income. Total income Better / Better / down 13% q-o-q on lower non-funded income from DenizBank. AED million Q2-21 Q2-20 Q1-21 (Worse) (Worse) - Net interest inc
Slide 6: Net interest income
Net interest income Highlights Net Interest Margin (%) • Q2-21 NIM declined 2 bps q-o-q to 2.44% as: - Loan yields declined 4 bps reflecting a 1 and 5 bps fall in 1 & 3-month EIBOR Qtrly NIM YTD NIM 3.11 - Funding costs improved 9 bps on higher CASA balances 3.02 - Treasury yields declined 6 bps as
Slide 7: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) LCR (%) ADR (%) • LCR of 158.8% and ADR of 95.7% demonstrate the Group’s continuing healthy liquidity 200 110 188.8 • Liquid assets* of AED 82.6 billion cover 14% of total liabilities and 18% of deposits LCR % ADR
Slide 8: Loans and deposits trends
Loans and deposits trends Highlights Trend in Gross Loans by Type (AED billion) • Gross loans grew 1% in Q2-21 with Corporate, Retail and Islamic all registering growth -1% DenizBank Retail • Gross loans declined 1% in H1-21 due to currency translation of DenizBank’s loans Corporate Islamic* +1% • R
Slide 9: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) 130 7.5 • NPL ratio increased marginally by 0.1% to 6.3% in H1-21 due to stage migrations 125.8 126.6 NPL ratio Coverage ratio 125.1 122.5 • Coverage ratio strengthened to 122.5% during H1-21 125 7.0 120.5 119.6 117.3 • H1-21 cost of risk
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 reduced to 0.9%, or AED 3.8 bn of impairment allowances, due to a Stage 1 Stage 2 Stage 3 combination of improved MEVs and stage migrations • Stage 2 impairment allowances boo
Slide 11: Non-funded income
Non-funded income Highlights Composition of Non-Funded Income (AED million) • Q2-21 core gross income up 6% y-o-y on higher transaction volumes and increased AED million Q2-21 Q2-20 Better / Q1-21 Better / income from trade finance, brokerage and asset management (Worse) (Worse) • Core gross income
Slide 12: Operating expenses
Operating expenses Highlights Cost to Income Ratio (%) • Q2-21 expenses improved 3% y-o-y due to lower staff and operating expenses following CI Ratio (YTD) CI Ratio (QTD) earlier cost management exercises Target 41.5 • Q2-21 expenses up 2% q-o-q due to incentives related to strong retail growth and
Slide 13: Capital adequacy
Capital adequacy Highlights Capitalisation 19.1 18.5 19.0 18.7 • CET-1 ratio improved 0.6% during H1-21 driven by AED 4.8bn of retained earnings which 17.9 18.5 18.0 17.4 17.9 17.6 more than offset the 2% increase in RWAs 16.8 17.3 • AED 1.7 billion increase in CRWAs relates to new CBUAE methodologi
Slide 14: Divisional performance (excluding DenizBank): Retail Banking & Wealth Management
Divisional performance (excluding DenizBank) Retail Banking & Wealth Management • RBWM income up 3% q-o-q and 9% y-o-y as record acquisition volumes led to improved Balance Sheet Trends AED billion Income Trends AED million non-funded income +3% +9% • Net interest income up 2% q-o-q on improved cost
Slide 15: Divisional performance (excluding DenizBank): Corporate and Institutional Banking
Divisional performance (excluding DenizBank) Corporate and Institutional Banking • CIB income down 2% q-o-q as higher non-funded income from investment banking and Balance Sheet Trends AED billion Income Trends AED million trade finance was more than offset by drop in net interest income on lower le
Slide 16: DenizBank business overview
DenizBank business overview Business Overview Financial Highlights Better / Better / • DenizBank contributed total income of AED 3,313m and net profit of AED 1,036m to the AED million Q2-21 Q2-20 (Worse) Q1-21 (Worse) Group for H1-21 Net interest income 1,250 1,387 (10)% 1,285 (3)% • DenizBank contr
Slide 17: Thank you
Thank you Investor Relations Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046