Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — 9M 2024 Earnings Presentation
46 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, November 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024
Slide 2: Important Information
Important Information Disclaimer that could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or implied in the forward- The material in this presentation is general background information about looking statements. Emirates NBD's activities current
Slide 3: Emirates NBD Profile
Emirates NBD Profile ( (niall yay culo Lig Emirates NBD
Slide 4: Emirates NBD is a Leading Bank in the MENAT Region
Emirates NBD is a Leading Bank in the MENAT Region Region’s most AED AED profitable bank 4th 2nd 19.75 125bn Largest Bank in GCC Largest Bank in UAE US$ 5.2bn By Assets By Assets Share Price Market Cap 9M’2024 As of 17 Oct 2024 As of 17 Oct 2024 AED AED AED AED AED 32.9bn 19.0bn 3.64% Net Interest M
Slide 5: Emirates NBD at a Glance
Emirates NBD at a Glance Key Highlights Emirates NBD’s International Presence 1. Largest financial institution in Dubai, 644 Türkiye one of the largest and most profitable in GCC 11 Austria 2. Leading retail banking franchise with a branch network of 859 branches throughout the 3 Germany MENAT regio
Slide 6: Strong Credit Ratings Reflecting Financial Stability
Strong Credit Ratings Reflecting Financial Stability Strong Credit Ratings A+/A1 Short-term Long-term Outlook A/A2 Moody’s P-1 A2 Positive Fitch F1 A+ Stable A-/A3 CI A1 A+ Stable BBB+/Baa1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Outlook- Negative Stable Positive Moodys Fitc
Slide 7: Stable Shareholder Base and Diversified Business Model
Stable Shareholder Base and Diversified Business Model Split of Ownership – Anchored by the Government of Dubai Key Highlights Ownership structure as of October 2024 • A flagship bank for the Government of Dubai and the UAE Investment Corporation • Strong and supportive shareholder base from the Gov
Slide 8: Building the Bank of the Future
Building the Bank of the Future Where we stand … Where we are heading … Transformed from a local bank to a regional powerhouse operating 859 Six Strategic Pillars Additional innovative products and branches across 12 countries services on ENBD X, providing the premier one-stop banking & wealth manag
Slide 9: Digital Transformation Journey
Digital Transformation Journey Key Digital Developments Overview is Emirates NBD’s digital-only bank with over 450K customers, • Increased digital adoption to 91% and no. of instant services on ENBD X to focused on fulfilling the unique financial needs of Generation Now. It close to 200. Total regis
Slide 10: Emirates NBD is the Most Profitable Bank in the Region
Emirates NBD is the Most Profitable Bank in the Region Total Income Net Profit Total Assets Coverage Ratio & NPLs (%) CET-1 Ratio (%) In USD mn 11 In USD mn In USD bn 9M-2024 As of 30 Sep 2024 NPL% As of 30 Sep 2024 8,952 5,178 351 191 1.5 16.7 8,255 4,219 335 165 0.79 16.2 7,213 4,153 300 156 3.5 1
Slide 11: Consistently Strong Return on Equity
Consistently Strong Return on Equity Return on Average Tangible Equity (excluding 2019 NI gain) 11% 16% 20% 18% 19% 20% 17% 10% 13% 17% 24% Total Income CAGR (2013-2023): 14% Net Profit CAGR (2013-2023): 21% 43.0 32.5 23.2 23.8 22.4 21.5 17.4 14.4 15.2 14.7 15.4 14.5 11.9 13.0 10.0 9.3 7.2 8.3 7.1 7
Slide 12: Economic Environment
Economic Environment ( (niall yay culo Lig Emirates NBD
Slide 13: Non-oil GDP growth of 5% expected in 2024
Non-oil GDP growth of 5% expected in 2024 UAE GDP Growth Budget Surplus • Population growth projected at 5.8mn by 2040 7.9 • Government projected surplus of 4% of GDP in 2025 on AED 97.7bn revenue 4.4 5.0 3.6 3.7 • Budget 86.3bn for 2025: 1.1 • 46% allocated to new infrastructure Roads, Bridges, Air
Slide 14: Dubai: Growth momentum continues
Dubai: Growth momentum continues Dubai Property Prices Growth Real estate Transactions Ready Off-Plan 30 50,000 Dubai apartments Dubai villas 25 45,000 20 40,000 % Y/Y sales prices 15 35,000 No. of units 30,000 10 25,000 5 20,000 0 15,000 -5 10,000 -10 5,000 -15 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 15: Financial & Operating Performance
Financial & Operating Performance
Slide 16: Executive Summary | 9M'24 Results Key Metrics and Guidance
Executive Summary | 9M’24 Results Key Metrics and Guidance Record AED 19.0 bn Healthy net-interest profit in 9M’24 on income growth on higher net interest strong loan & deposit income & strong mix propelled by AED 13.8 bn recoveries increased regional presence KSA momentum Record AED 27 bn retail co
Slide 17: AED 19 bn record profit in 9M'24 rises 9% y-o-y
AED 19 bn record profit in 9M’24 rises 9% y-o-y on diversified net interest income growth and healthy recoveries Income Statement 9M’24 9M’23 %∆ YoY Q3-24 %∆ YoY %∆ QoQ Key Highlights (All figures are in AED bn) Net interest income 23.8 22.3 7% 8.5 8% 7% • Profit up 9% y-o-y to a record AED 19bn on
Slide 18: NIMs improving as DenizBank margin benefiting from loan repricing
NIMs improving as DenizBank margin benefiting from loan repricing and stabilisation in funding costs Net Interest Margin (%) Key Highlights • Q3-24 NIM up 10bps q-o-q to 3.75% as DenizBank NIMs increased on improved loan pricing and stable funding costs • 9M’24 NIM down 36bps y-o-y to 3.64% on flow
Slide 19: Strong client flows driving fee & commission income growth
Strong client flows driving fee & commission income growth Non-funded income 9M'24 9M'23 %∆ YoY Q3-24 Q3-23 %∆ YoY %∆ QoQ Key Highlights (All figures are in AED m) • Healthy trend in Net Fee and Commission Income, up 46% y-o-y from record Fee and Commission income 9,784 6,403 53% 3,525 2,394 47% 8%
Slide 20: Loan and deposit growth momentum continues
Loan and deposit growth momentum continues Gross Loans by Type Key Highlights (AED bn) • Loans up 9% by AED 44bn in 9M’24 on very strong underlying growth – Record retail lending up 23% in 9M’24 with healthy demand across all products – Corporate lending up 10% in 9M’24, with AED 70bn of new origina
Slide 21: Credit quality continues to significantly improve
Credit quality continues to significantly improve Impaired loans and allowances Key Highlights • NPL ratio improved by 0.7% to 3.9% in 9M’24 on strong writebacks, recoveries, write-offs and repayments • Stage 2 loans reduced by 0.7% to 4.6% on repayments and staging transfers • 38bps Cost of Risk cr
Slide 22: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights • Cost to Income ratio at 29.4% for 9M’24, comfortably within guidance, with continued investment for growth supported by income • Cost to Income ratio rose to 30.9% in Q3-24 on higher staff costs, accelerate
Slide 23: Funding & liquidity remains very healthy
Funding & liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights • LCR of 194% and ADR of 77% demonstrate healthy liquidity • Liquid assets* of AED 101 bn cover 12% of total liabilities, 16% of deposits • AED 23 bn of term debt and sukuk issued in 9M’24, i
Slide 24: Total Capital ratio strong at 18.0%
Total Capital ratio strong at 18.0% Capital Key Highlights (AED bn) • 15.5% CET-1 ratio strengthened in 9M’24 as retained earnings more than offset 15% growth in RWAs • Credit RWA increase from strong Retail and Corporate loan growth • CET-1 at 15.4% excluding ECL regulatory add back • Capital ratio
Slide 25: Divisional Performance
Divisional Performance Key Highlights Operating Segment Metrics 9M'24 9M'23 %∆ YoY Retail Banking and Wealth Management continued its excellent performance with its highest ever Income (mn) 13,428 12,057 11% nine-month revenue, strongest ever acquisition of loans, and substantial growth in balance s
Slide 26: ESG Development
ESG Development ( (niall yay culo Lig Emirates NBD
Slide 27: Emirates NBD: a Leading Bank in ESG
Emirates NBD: a Leading Bank in ESG Delivering ESG Solutions for a greener future – 2023-2024 highlights Emirates NBD’s Objectives Financial Institutions Bond Deal of the First UAE Bank to partner with BeZero Supporting clients to access Year for our USD 750 million Carbon to enhance due diligence o
Slide 28: Emirates NBD Sustainability Strategy
Emirates NBD Sustainability Strategy Emirates NBD commits to both regional and international sustainability development goals which enhances the overall agenda for sustainable business strategy and management approach. Sustainability Approach Sustainability Governance • Emirates NBD’s sustainability
Slide 29: Environmental, Social and Governance Commitment
Environmental, Social and Governance Commitment ESG is embedded into the culture, operations and strategy of Emirates NBD. Our ESG commitment are integrated to all our business divisions and across all our subsidiaries, with qualitative and qualitative targets as highlighted below. Environmental Soc
Slide 30: ESG Forward Journey
ESG Journey • ESG Forward Journey Emirates NBD’s ESG commitment over the years have enhanced, covering larger and wider aspects of ESG principles. Our journey has been fruitful, and we expect further development in the upcoming years given the plan to standardize the ESG practices and contributions.
Slide 31: ESG Forward Journey
ESG Forward Journey • ESG Forward Journey • Refresh Sustainable Finance Framework • Refresh Transition Finance Framework • Announce a Net Zero Pathway for all • Achieve a 30% reduction in Scope 1 & 2 GHG Enhance Sustainable Finance Governance: Emissions from 2020 baseline • Publish our 1st ISSB Repo
Slide 32: Sustainable Finance Framework
Sustainable Finance Framework Bringing a diverse and robust ESG financing Framework to the market The Framework allows Emirates NBD to issue Green, Social and/or Sustainability debt instruments including Sharia’h compliant financing or investments. Debt instruments issued under the Framework are ful
Slide 33: Strong Second Party Opinion
Strong Second Party Opinion Provided by ISS ESG The Framework is aligned to ICMA principles and in line with best market practices Emirates NBD demonstrates its contribution to sustainability and to the UAE’s government’s sustainable strategies. ICMA Pillars Aligned • Emirates NBD’s green/social cat
Slide 34: Use of Proceeds
Use of Proceeds Green Project Categories UNSDG GBP Category Eligibility Criteria Alignment • New and existing residential, commercial or mixed use buildings that meet the minimum external green building certification level including (but not limited to): • LEED, Leadership in Energy and Environment
Slide 35: Use of Proceeds
Use of Proceeds Social Project Categories UNSDG SBP Category Eligibility Criteria Alignment • Financing dedicated to healthcare facilities: • Construction and/or operation of healthcare facilities such as hospitals and primary care facilities, affiliated to the relevant national healthcare system Ac
Slide 36: Sustainability-Linked Loan (SLL) Financing Bond Framework
Sustainability-Linked Loan (SLL) Financing Bond Framework Bringing an innovative financing Framework to the market to support companies’ sustainability goals Key Highlights and Rationale Framework Overview 1st SLL Financing Bond Framework globally fully aligned with The Framework finance and refinan
Slide 37: Sustainability-Linked Loan (SLL) Financing Bond Framework
Sustainability-Linked Loan (SLL) Financing Bond Framework Bringing an innovative financing Framework to the market to support companies’ sustainability goals Criteria for inclusion in SLL funding asset portfolio Impact Criteria for Inclusion: Description of KPIs Included Objectives ➢ Alignment with
Slide 38: Sustainability-Linked Loan (SLL) Financing Bond Framework
Sustainability-Linked Loan (SLL) Financing Bond Framework Bringing an innovative financing Framework to the market to support companies’ sustainability goals Emirates NBD will follow the below process when selecting and evaluating financing that would qualify under the SLL funding assets Emirates NB
Slide 39: Sustainability-Linked Loan (SLL) Financing Bond Framework
Sustainability-Linked Loan (SLL) Financing Bond Framework Bringing an innovative financing Framework to the market to support companies’ sustainability goals Summary Project Evaluation Management of Proceeds Reporting • Emirates NBD’s Sustainable Finance • Proceeds will be managed by Emirates NBD in
Slide 40: Strong Second Party Opinion (SPO)
Strong Second Party Opinion (SPO) Provided by ISS-Corporate ➢ ISS-Corporate acted as an external reviewer of Emirates NBD’s SLL Funding Framework and the SLL Funding Assets. The External Review report is publicly available on Emirates NBD's website. ➢ A new external review of the Framework and the S
Slide 41: SLLs Pipeline
SLLs Pipeline Each new SLL will be reviewed by ISS-Corporate and an updated SPO will be published on Emirates NBD’s website A Strong Pipeline of more than USD 890 million to be closed before end of Q1-25 ➢ 10 SLLs, equivalent to over USD890 million, have been identified as potential SLLs eligible un
Slide 42: Appendix
Appendix ( (niall yay culo Lig Emirates NBD
Slide 43: Financial Results Highlights 9M'24
Financial Results Highlights 9M’24 Excluding DenizBank Rounding differences may appear throughout the presentation | 43
Slide 44: Financial Results Highlights 9M'24
Financial Results Highlights 9M’24 US$ convenience translation Excluding DenizBank Rounding differences may appear throughout the presentation | 44
Slide 45: Hyperinflation
Hyperinflation Key Highlights • Turkish CPI grew by 49% in the preceding 12 months and by 343% over preceding three-years • 35 bps positive impact on capital from hyperinflation adjustment is excluded • DenizBank’s results and financial position included within ENBD’s consolidated from capital adequ
Slide 46: For additional information
For additional information: IR@emiratesnbd.com www.emiratesnbd.com/en/investor-relations