Slide 1: Q3 2013 Results Presentation
Q3 2013 Results Presentation October 24, 2013 1
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: Q3 2013 Financial Results Highlights
Q3 2013 Financial Results Highlights Highlights Key Performance Indicators • Net interest income rose 18% q-o-q and Better/ Better/ 30% y-o-y helped by increased volumes AED million Q3 13 Q2 13 (Worse) Q3 12 (Worse) in higher yielding retail products, declining EIBOR, cheaper bank Net interest incom
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) • NIM improved by 35bps to 2.83% in Q3 2013 from 2.96 Qtrly NIM 2.48% in Q2 2013 due to a 17bps increase in loan 2.85 2.83 YTD NIM spreads and an 18bps increase in Treasury spreads 2.69 • Loan spreads improved as retail volumes increased 2.63 2.
Slide 5: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit (LTD) Ratio (%) • Headline LTD ratio of 102.5% at Q3 2013 • The LTD ratio is being managed within a target range of 95%-105% 102.0 102.5 • Liquid assets* of AED 33.7 billion as at 30 September 100.6 2013 (11.6% of total liabilities) 99.2 98.9 • Debt m
Slide 6: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED billion) • Signs of modest pickup in new +2% underwriting across all business 249 254 segments with 8% growth in gross 235 238 +8% 228 189 191 loans from the start of 2013 and 2% 179 181 growth over the quarter 176 27 • Consumer le
Slide 7: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED million) • Non-interest income declined 12% AED million Q3 13 Q2 13 Better/ Q3 12 Better/ q-o-q and improved 13% y-o-y (Worse) (Worse) • Quarterly decline mainly due to Core gross fee income 817 876 (7%) 682 20% seasonal factors
Slide 8: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Cost to Income Ratio improved by 37.5 0.3% q-o-q to 33.0% 35.8 • Costs increased by 7% q-o-q and by 35.2 19% y-o-y 34.6 33.9 33.6 • Excluding the costs of the Egypt 34.7 operation costs in Q3 increased by 33.3 33.0 2% q-o-q • The c
Slide 9: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • The impaired loans ratio increased by 0.2% q-o-q to 14.1% 72.3 69.8 73.0 74.1 76.5 • Net impaired loans increased by AED 1.2 billion mainly due to a 51.4 52.7 54.8 AED 1.1.billion increase in impaired loans in the Islamic 47.8 49.4 corp
Slide 10: Capital Adequacy
Capital Adequacy Highlights Capitalisation • CAR and T1 improved by 0.5% and 0.4% q-o-q to 44.5 19.0% and 14.9% respectively resulting from: 19.9 20.6 19.7 18.5 19.0 13.8 13.5 14.5 14.9 – increase in Tier 1 capital through profit generation 13.2 – Ongoing issuance of Tier 2 private placements 45.0 4
Slide 11: Acquisition of BNP Paribas Egypt
Acquisition of BNP Paribas Egypt Highlights Financial Impact Upon Acquisition (AED million) • On 9 June 2013, Emirates NBD acquired a 95.2% stake in BNP AED million Paribas Egypt • Acquisition of the remaining 4.8% shares were completed in September Book value of assets 1,128 2013 • The total consid
Slide 12: Divisional Performance
Divisional Performance • Continued focus on re-alignment to ensure Balance Sheet Trends Revenue Trends enhanced future customer service quality AED billion AED million and share of wallet, increased cross-sell of +6% +10% Wholesale Banking Treasury and Investment Banking products 184.8 186.8 1,167 1
Slide 13: Divisional Performance (cont'd)
Divisional Performance (cont’d) • Total income at AED 116 M in Q3 2013 showed Revenue Trends Net Revenue Trends Global Markets & Treasury a marginal improvement compared to AED 104 AED million AED million M in Q2 2013 & AED 105 M in Q3 2012. • Net interest income improved due to increased hedging in
Slide 14: Outlook
Outlook • We have revised up the 2013 GDP forecast for the UAE to 4.4%, on the back of higher than expected oil output year-to-date, as well as strong expansion in the non-oil private sector. • We expect GDP to grow by a further 4.1% in 2014 • We retain our 2013 growth forecast of 3.9% for Dubai. Co
Slide 15: Summary
Summary • Pre-impairment operating profit improved 8% q-o-q and 16% year-to date Profitability compared to Q3 2012 YTD • Net profit of AED 2,584m YTD improved 34% compared to Q3 2012 YTD • Continued conservative provisioning with net impairment allowances up 11% Provisions year-to date to AED 3,400