Emirates NBD Bank (P.J.S.C) · DFM:EMIRATESNBD

Emirates NBD Bank (P.J.S.C) — Emirates NBD — FY2009 Earnings Presentation

26 slides from Emirates NBD Bank (P.J.S.C)'s earnings presentation, Feb 11, 2010

  1. Slide 1: 2009 Financial Results

    2009 Financial Results 11 February 2010 1

  2. 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

  3. Slide 3: Financial Highlights

    Financial Highlights  Strong revenue growth in 2009 of 28% to AED 10.8 billion  2009 operating costs up 8% to AED 3.6 billion; Cost to income ratio of 33.3% vs. 39.7% in 2008  Impairment allowances of AED 3.3 billion vs. AED 1.7 billion in 2008 reflecting expected increase in NPLs to 2.36% of loa

  4. Slide 4: Contents

    Contents Merger Update Financial and Operating Performance Strategy and Outlook 4

  5. Slide 5: Merger Update: Integration completed successfully

    Merger Update Integration completed successfully Mobile and Legal Emirates NBD’s Treasury Online Banking integration Large Corporate operations integrated; New Core completed; EBI First AGM for Unit (LCU) is integrated in enhanced Banking system and NBD Emirates NBD inaugurated single premises funct

  6. Slide 6: Emirates NBD Organisation Structure and Brands

    Merger Update Emirates NBD Organisation Structure and Brands Associate companies Emirates NBD Asset Management Emirates Islamic Bank (99.8%) Union Properties Group (47.6%) Emirates NBD Securities (Brokerage) Emirates NBD Capital Emirates Money (Consumer Finance) Network International National Genera

  7. Slide 7: Merger Update: Synergies

    Merger Update Synergies exceed 2009 full year target by 33% and already exceed 2010 cost and one-off synergies a year ahead of plan Target Synergies Key Drivers of Synergies  AED 346m of recurring annual synergies by the third year post merger,  Revenue synergies for 2008 and 2009: plus AED 26m of

  8. Slide 8: Contents

    Contents Merger Update Financial and Operating Performance Strategy and Outlook 8

  9. Slide 9: 2009 and Q4 2009 Financial Results

    2009 and Q4 2009 Financial Results 2009 Financial Results Highlights Key Performance Indicators  Operating profit before impairment allowances of AED 7,233m; +42% from AED million 2009 2008 Change Q4 Q4 Change (%) 2009 2008 (%) AED 5,091m in 2008 Net interest income 7,412 5,834 +27% 1,924 1,693 +14

  10. Slide 10: Net Interests Margin

    Net Interests Margin Highlights Net Interest Margin Trends (%)(1)  2009 NIM of 2.81%; +63bps from 2.18% in 2008 driven by: 3.01 Qtrly NIM (ATA) – re-pricing of asset spreads, esp. for corporate lending 2.85 Qtrly NIM (AIEA) 2.76 – increased Treasury spreads benefiting from AED 4bn Tier 1 2.65 2.60

  11. Slide 11: Non-interest Income

    Non-interest Income Highlights Non-interest Income Trends (AED million)  Non-interest income impacted in 2008 by decline in global asset valuations and mark to markets on investment and other securities  2009 witnessed improved financial asset valuations and partial 1,112 reversal of the negative

  12. Slide 12: Operating Costs and Efficiency

    Operating Costs and Efficiency Highlights Cost to Income Ratio Trends(1)  The headline cost to income ratio declined by 6.4% from 39.7% in Cost:income ratio 2008 to 33.3% in 2009 Core cost:income ratio  The core cost to income ratio rose by 0.5% from 34.6% in 2008 to 35.1% in 2009  The Group cont

  13. Slide 13: Asset Quality

    Asset Quality Loans & Receivables and Islamic Financing Highlights Loan Portfolio by Type – 2009(1)  Credit quality remains satisfactory across the Bank’s corporate and 100% = AED 221.2b retail portfolios  Provided for the Bank’s exposure to Al Gosaibi and Saad Groups in line with Central Bank req

  14. Slide 14: Asset Quality: Retail and Corporate Loans

    Asset Quality Retail and Corporate Loans & Receivables Corporate & Sovereign Lending Portfolio By Sector(1) Corporate Credit Quality Real Estate & Contracting 100% = AED 175.6b • Portfolio credit quality remains satisfactory, despite challenging • Exposures to Real Estate and Contracting Sector are

  15. Slide 15: Capital Adequacy

    Capital Adequacy Highlights Capital Ratios - Basel I (AED billion) 19.0% 20.8%  Capital adequacy ratio at 20.8% at end-2009 (2008: 11.4%) 16.2% 19.9% 13.1%  Tier 1 ratio increased from 9.4% at end-2008 to 13.3% at end-2009 as: 11.4% – profit generation for the period exceeded 2008 dividend payment

  16. Slide 16: Funding and Liquidity

    Funding and Liquidity Highlights Loan to Deposit Ratios (%)  Liquidity in the UAE banking system improved in 2009 primarily due to Headline LTD Ratio % initiatives taken by the UAE Ministry of Finance and UAE Central Bank 129% Adjusted LTD Ratio % 126% 127% 122%  Funding remains stable and deposit

  17. Slide 17: Divisional Performance

    Divisional Performance AED billion AED million +23%  Wholesale banking recorded a successful year 171.8 4,475 158.1 Wholesale Banking  Key focus during the period was on balance sheet optimisation, 3,648 continued proactive management of credit quality, building non-risk based and fee generating b

  18. Slide 18: Divisional Performance (cont'd)

    Divisional Performance (cont’d) AED million  Continuing improvement in global market conditions resulted in a Global Markets & strong performance in 2009. 1,511 Treasury  Revenues 2009 were AED 1,511m compared with AED 303m in 2008, the better performance resulting from a recovery in equity market

  19. Slide 19: Contents

    Contents Merger Update Financial and Operating Performance Strategy and Outlook 19

  20. Slide 20: Strategic Imperatives for 2010

    Strategic Imperatives for 2010 Objectives Evidence of success in 2009  Prudent lending growth  CAR strengthened to 20.8% from 11.4% at  Focus on funding end-2008 – Leverage distribution network  Tier 1 increased to 13.3% from 9.4% at end- 2008 Optimise – Maintain & develop wholesale sources of m

  21. Slide 21: Outlook

    Outlook Highlights Real GDP Growth Forecasts  In 2009 the external environment combined with liquidity tightening and 2008 2009 2010 2011 weakening demand brought UAE GDP growth towards an estimated UAE 7.4% 0.0% 2.5% 4.5% 0%-0.5% UK 0.7% (4.5%) 0.5% 2.0%  With oil prices firmer, global credit mor

  22. Slide 22: Summary

    Summary  Robust financial performance driven by strong income and improved efficiency  Significantly improved capitalisation and liquidity metrics due to success of balance sheet optimisation initiatives and continued proactive support from federal and local Government  Credit quality remains tig

  23. Slide 23: Appendix

    APPENDIX Emirates NBD

  24. Slide 24: Additional Asset Quality Disclosures

    Additional Asset Quality Disclosures Impact of Mark to Market on Investment & Other Securities AED million Q1 08 Q2 08 Q3 08 Q4 08 2008 Q1 09 Q2 09 Q3 09 Q4 09 2009 Income: Investment Securities MTM - - (273) (520) (793) (15) 197 104 46 332 CDS (111) 21 (107) (258) (455) (70) 248 157 (105) 230 Total

  25. Slide 25: Additional Asset Quality Disclosures (cont'd)

    Additional Asset Quality Disclosures (cont’d) Credit Metrics AED million Q1 08 Q2 08 Q3 08 Q4 08 2008 Q1 09 Q2 09 Q3 09 Q4 09 2009 P&L Impairment Allowances: Credit – Specific 32 99 58 242 431 94 584 473 533 1,684 Credit – PIP 38 10 33 130 211 224 507 226 330 1,287 Investment Securities 193 140 207

  26. Slide 26: Investor Relations

    Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com Ben Franz-Marwick Head, Investor Relations Tel: +971 4 201 2604 Email: bernhardf@emiratesnbd.com Chaden Boustany Investor Relations Analyst Tel: +971 4 201 2628 Email: ChadenB@

Emirates NBD — FY2009 Earnings Presentation on 6ix